from thetocks rebound worst selloff since early april with oil prices rallying and the dollar advances. topresident trump appearing backtrack on his approach in china. go up inlobal various response to the u.s. tariffs. >> and the president has what he calls a tremendous victory after the revised -- supreme court upholds his muslim travel ban.

>> just past 6:00 p.m. here in your, i'm kathleen hays. we'll look at how the action on wall street will play into the asia-pacific trading day. markets around the world continue to be trade concerned over how donald trump might go about protecting u.s. technology from china in particular. today at the white house, he defended what he's going to do and explained specifically how he plans to do it. >> we have the greatest technology in the world. people copy it and they steal it, but we have the great scientist and the great brains, and we have to protect that, and were going to protect it. and that's what we were doing. we had a lot of things we can do it through. that's something we've been using occasionally for years, and people were fearing that he might turn toward the

international emergency economic powers act, a little use act and something that could have been more severe. a little relief there, but still a lot of uncertainty. a great deal of uncertainty, but it does signal how closely we are developing -- watching these developments and maybe we will get a less aggressive approach as to how investors are reviewed. were looking at a reverberation is the trade war continues to play out across all corners of the low. case in point, canada, trying to do with the impact of chinese , givenn other suppliers the tariffs if they come into effect. kathleen: that's what economists fear, something that goes from tit-for-tat to a full-blown war. we can run through the numbers, the dow gained about .10, the point, or back

about the 50 day moving average thetech so hard hit in nasdaq, bouncing back about .4%. haidi: setting appeared asia for little bit more optimism. it's not hard, given the malays we've had over the past few days. asian stocks and emerging near one yearg lows. trading in new zealand is just getting underway. rv and have the decision, seeing a little bit of negativity going into a pretty big week for risk in new zealand. futures looking a little bit like the lacquered across the region as well, .3% lower. watch for energy, we could see a rebound of the energy trade and the spike in crude prices overnight. the aussie dollar falling below 74 -- $.74 u.s..

chinese markets will continue to be the bellwether for sentiment across the region. the shanghai composite down 20% just five months, $1.8 trillion wiped out that market. we've been technically oversold for just about a week that it doesn't look like it's leading up. jp morgan saying there could be more pain to come because the fundamentals are just so vulnerable right now. on, also seeing losses of .3%. watching the chinese currency as for weakness we haven't seen it about four months. quite a bit of concern when it comes to looking at that gauge of stability and whether china will be using this as a weapon in the trade war. that's get more on the trade war , president trump seems to beat out and back a little bit when it comes to the

way that chinese investments will be reviewltimately restricted. is this the steven mnuchin preferred version? how does that work? >> this is finally deals through a process which is a body made up of representatives from cabinet departments like defense, state, they examine the deals for potential harm to the u.s.. in the meantime, congress is moving toward giving and expanded authority for these reviews so that the u.s. can put a little bit more bite into the regulation on foreign investments in u.s. companies. that seems to be what the administration is targeting. preventing chinese and other companies from investing into u.s. companies that have critical technology. these still caps on to have a ripple effect with canada

in particular. joe: right, this is an example of the global nature of trade. modern trade and how these sorts of things can ripple across the economies around the world. canada is worried that the steel toiffs of the u.s. are going cause a flood of aluminum into canada hurting their own supply and driving down prices there. the u.s. is among those countries that do export to canada, but other countries as well can move in, hoping to take advantage of the lower prices that this deal would cost in impairing possibly canada's own still industry. >> so more negative voices we are hearing. joe: there's a lot of lauding of

tax cuts that were passed by the republican-controlled congress and signed by trump, and that has been a cause of great celebration among them. it now there are companies, for instance oil companies are big users of steel. they have a lot of international operations, as do a lot of other companies in the u.s., so they seem to be souring on this part of the troubled economic agenda and are starting to raise their voices in opposition. a lot of small companies lined up in opposition to the tariffs, but we're seeing that expand into more and more industry such as the oil industry and others that have generally favor the trump economic policy. we will see where it goes from here. let's get more detail on the u.s. stock rebound. a cautious one, picking up a little steam as the day went on. su keenan joins us. if it had not been for oil, you would have to wonder if stocks could have managed even this

small increase. see the energy stocks really lead us higher and the tech momentum coming back from late yesterday. let's go into the snapshot to get through this. range, wethin an hour had the dollar and venting for the first time in a week. above the 60 day moving average, it has fallen below that important level. yesterday the russell 2000 moving higher, the nasdaq also, the badly tech stocks bouncing back, and that raised all the areas nasdaq indexes. you can find our library of charts and this is an index of the u.s. trade policy uncertainty. it's simple to read, this is back in 1995. we are back surging in a big way . tradeomes to us measuring uncertainty and it shows this is a proxy for uncertainty and it

is on the rise. let's go into the some of the stocks that reflect the bounce back, if you will, from the big selloff. we start with harley davidson, that continues to be a trade war wounded, if you will come in that they announced they would have to go offshore because the tariffs will increase their production costs. they continue to receive criticism from trump, a little bit of a downturn there. general electric bouncing back in a big way, having a lot to do with the fact that it's relatively new ceo is narrowing the company's focus, they are oil andut of health and these new plans unveiled by the ceo definitely embraced by wall street. stocksvalid manic of the caught in the middle of the trade war crosshairs, they all came back as well. bank stocks clearly had a rebound. a lot of analysts saying it's not just that tech was being

thrown out of money but a lot of the momentum plays were being sold. let's go to one more panel, these are the energy stocks. as kathleen mentioned, you have oil above 70, you had a big move higher in the energy stocks and they help propel the rebound we saw, cautious as it was on wall street. beside that rally in oil helping drive energy higher. it's been a horrible couple of days. wti breaking above that $70 mark. i suppose the question is, where do we go from here? that's going to the bloomberg again, this one is titled iran versus saudi oil production. you have two things going on here. the u.s. is pressuring the allies to block their exports, which could limit the amount of oil.

that is often a concern that the saudi's are planning a huge surge, a record 10.8 million barrel a day production in july and that is concerning the market. this iske a look at how playing out in the oil price charts. you see the iran news outweighing the saudi record output news. we went above 70, and that is a big rise for the week. today,r picture here it's taken us until now to get there. so it remains a very tricky trade. back to you. haidi: so much caution still in the markets. let's get you the first word news with jessica summers. jessica: u.s. defense secretary the firstbeijing, visit there by pentagon chief in

four years. he's expected to press china's leaders for continued cooperation on north korea's nuclear program, despite simmering tensions over everything from trade to taiwan. he says he wants to do a lot of listening without poisoning the well. he plans to visit south korea and japan. president trump says the supreme court's decision in favor of his ban on people traveling from several mostly muslim countries is a great victory for the constitution. the court rejected a challenge that the ban discriminated agains muslims or exceeded the president's authority. the majority opinion agreed that the president has substantial power to regulate immigration. >> we just have to know who is coming here. the ruling shows that all of the attacks from the media, the democrats, politicians are wrong , and they turned out to be very wrong. for, asareooking republicans, i contend you is strong borders, no crime. sued 17 u.s. states have

over the policy of separate and daphne children from their parents, intensifying an ongoing legal fight. filed by several states, alleging the bde po viodment rights to equal protection under the law and due process. the meltdown at bitcoin is weighing on more than the biggest cryptocurrency. the website says more than 80% of about 1500 digital coins it tracks fell in price for the past seven days. the weekend of june 25, they were down 19% on average. professor tolds us cryptocurrencies are a social movement and an epidemic of enthusiasm. >> the east coast is less into it than the west coast. silicon valley is really into it. this shows me that this is not a ration response to new information. it's a social movement, it's an

epidemic of enthusiasm. >> global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. ahead, the yuan heading for its longest losing streak in four years. kathleen: up next, positioning to navigate volatile markets from china stock to crude oil. this is bloomberg. ♪

>> it represents an extremely small portion of the total gdp of the united states. i don't see it in any way on a global basis, the tariffs precipitating a recession.

>> we use it in the pipelines we run across a surface to move our products around. certainly over the long haul, it will start to have an impact, not so much today. >> what about from a chinese standpoint? they are more skittish. so the big commodity producers not so happy about terror, talking about the looming trade war. with us now is the editor and publisher joining us from virginia beach, virginia. it's impossible lately to look at any market practically and not talk about the trade war. i'd like to get right to the chinese stock market, because the trade war isn't the only thing happening, but clearly as we look at this chart from our

bloomberg library, you can see the shanghai composite down over 20% from the january peak. the blue line across the top, it has really piled on problems there. what do you see? amusing, the fact that were down 20%, only now are people becoming bearish and suggesting it's a bear market. i've always gone by the rule that if something has falle7% or more, it's probably become a bear market on the downside. your we are down 20%, and what i think is important is that i keep a little index of 10 various stock markets around the world. , is not trade weighted dollar weighted, it's just the average of the 10 largest exchanges. they all made their peak within a week or two of the last week in january, even the dow has done exactly the same thing. i think this is more than just a starting bear market in china. is clearly a market that has been bearish for months am of

the there is a global market that's income it and we need to pay attention to that fact. there is more going on than a one-off event in china. kathleen: connect the dots for us. emerging markets going into a bear working around the world. love what my oh-fer and used to say about the emerging markets, theyre markets from which you cannot emerge in an emergency. i think that's one of the wittiest comments ever made. it is really quite true. i think it's going to get worse and worse. the dollar is getting quite a bit stronger. i expect the dollar will get demonstrably better and that will cause greater concern for emerging markets, and the rising dollar is detrimental to them in an egregious fashion. haidi: i just wanted to ask about one of the calls back in

i want to throw up this chart, looking at the slide in commodities. --ca might, short equities long commodities, short equities. inc down nine straight days, that's a bear market. thisat point do we see going through to inflation and therefore policy? dennis: i'm on the board of --ectors at n.c. state in and him and. at the university of akron, i reduced our exposure to the stock market and increase our exposure to the commodities market. it has moved against me by about point when he got percent. i am not surprised by the fact that stocks have acted as weekly as they have since the last week in january. i'm somewhat surprised that the commodity markets have acted as the hand.

there is an abundance of grain, i understand that. but at the same time, we have a shortage now of crude oil. i think you are about to start to see the commodity markets begin to do better, or let me pull us -- put a smile on my face and say i hope that's what is going to happen. i have put my universities money where my mouth is at this point. perplexing charts in our library at the moment. i want to look at gold. look at this risk off environment, safe haven trade, gold is just not getting there. i found it quite interesting that this inverse correlation with the dollar is the weakest since 2016. up toght in the lead brexit, it then slipped and then we saw a rally. is this result of what the dollar is doing? dennis: is absolutely the result of what the dollar is doing. look at gold predicated in euro terms, it has been slightly bullish.

gold predicated in dollar terms has been a demonstrably bad trade. the only way i should want to own gold is in non-us dollar terms and specifically in euro terms. gold in dollar tms, you can have it, i don't wish to own it. following on the commodity stream, how about oil? conflicting news today, donald trump saying he's going to enforce the november deadline for other countries not to buy exports of oil from iran, at the same time the saudi say the going to pump the most oil ever in the month of july. what is it mean for the price of oil when you buy and sell it? this chart shows the saudi contribution to opec production most recently up to about 31%. first of all, let's understand it's a fight for

first place as far as who is the largest producer crude oil in the world. sometimes it's the u.s., sometimes rusher, sometimes saudi arabia. many americans would not believe we're first, second, third, or daily basis. a saudi for said they might get to , we will seeuction if that happens. what was interesting this afternoon was the huge decline they caught everybody off guard that the api reported in crude oil inventories. everybody thought they would be down 2 million barrels and they were down 9.6 million barrels of was certainly shocking to me. crude oil still seems to want to go higher. the front month are demonstrably stronger than the department. you never sell of backward market. demand has been strong, not

because of life than excessive but because the man has been inordinately strong. it's still a bull market in crude oil. is heen: the yield curve, going to invert, and is it going to signal a recession? dennis: let's hope it does not invert. create their own recession. i'm afraid were going to go in to recession, but i think we do this time without an inverted yield curve. kathleen: thank you so much, dennis gartman from virginia beach, virginia. interact with the charts shown .sing gte save charts for future reference. this is bloomberg. ♪

kathleen: time for a check of the business flash headlines. she shares sirs emotion three

surged the shares most in three years. slimming down a refocusing around power, renewable energ and aviation. ge is being refashion it every level as it positions for the future. haidi: hong kong billionaire richard the is had to be laying the groundwork for a potential public offering of his company. weighing a is listing that can take place within a couple of years. 2.7 million customers are spread across eight asian markets. and parsley reversing a policy that was put in place in january. content that promotes virtual coin such as bitcoin will now be allowed. as for other risky financial products including binary options will remain blocked.

just ahead, we will discuss how silicon valley is being impacted by a potential trade war around the world. joins us next. this is bloomberg. ♪

haidi: it's a: 30 a.m. here in sydney. a pretty good lead that oil is going to rally, getting wall street office were selloff since early april, but were not seeing much positivity going into the sydney open, looking lower by 3%. i'm kathleen hays in new york, where it is 6:30 em. you're watching "bloomberg: daybreak australia." let's get to first word news with jessica summers. noting the impact of ongoing political wrangling on public

finances, s&p kept a stable outlook on the rating, said it expects positive and negative factors to be balanced over the next two years. president trump has signaled he may take a less confrontational path for curbing chinese investment. he says the committee on foreign investment in the u.s. may come into play. that appears to align him with treasury secretary steven mnuchin's approach as the administration debates have to protect america's intellectual property from china. bloomberg sources say kennedy is preparing new measures to prevent the potential flood of steel imports from global producers seeking to avoid u.s. tariffs. the measures are said to be accommodation of quotas and tariffs and that certain countries, including china. we're told an announcement could come next week. e.u. is authority considering similar measures to ward off still dumping which could be imposed next month. >> this is an investigation that will probably take until the end

of the year before we get the full picture. as you say, we are seriously contemplating putting measures into place and mid-july could be some provisional measures. exactly what form that would take is still under discussion. set to climb to a near two decade high, as -- financial stability report said the ratio may increased 12.2% by march 2019, up 11.6% in the previous year and the highest this century. india's banks are struggling with $210 billion worth of stressed assets. has won its appeal to continue operating on the streets of london into next year. court granted the u.s. ride-hailing comedy a license for 15 months, with conditions. uber had safety and corporate

governors concerns. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. jessica summers. this is bloomberg. update on where markets are trading at the moment. trading just underway in new zealand and head of trade balance numbers out this hour. a downside setting up going into the sydney open as well. kiwi dollar trading at 68.54 and the aussie dollar falling below. they had a brief bod -- broad-based rally in the g10 space. taken look broadly, this is in terms of risk sentiment, largely staple. move when it comes , speak about the risk of raising rates too soon with that weakening in the

pound. just reminder we did have u.s. stocks rebounding from the were so often early april, the s&p up by just about .25%, largely driven any energy second by that rally we saw in oil. adam, chinese assets under pressure, we had a bear market yesterday. --re's not a lot of people >> it would be pretty brave to call that the bottom. in five months, so much has changed. there's a laundry list of things just building up to support that their case. with sentiment that fragile tort equities and what's happening to the currency and the pressure that continues on the currency, it's difficult to want to go back and step in. the fact that deleveraging is reducing liquidity in china is a

crucial point. for some people, it's not enough for them to want tgo back in. of course you got the trade war on top of that, still trying to understand what that means in terms of an economy that is already slowing, you're seeing industrial production numbers and retail sales numbers over the last few months on a downward trend. upper growth figures from the previous few months. it's a question of the front-page editorials in china can shore up sentiment or whether you just get a continuation of policy that tries its best to get things going in sentiment stays very fragile. clearly from a technical level, when you get to these levels, that key momentum indicator, you do get chances for rallies and short-term rallies, but the sense of sentiment having , theed for any longer-term momentum is not there in chinese equities at the moment.

kathleen: let's take a look at china a share etf's. is there any reason to suggest these flows are likely to reverse any time soon? adam: let's just have a look at those flows. this is a great chart, this is one of the key chinese etf's that trade up in new york. those kind of changes we've seen in flows, you can see they're in the white line over the last few months, that is what is crucial. when you get these kind of momentum flows in money, it takes a lot to shift that. that's a .0's trying to make about what is the kicker for that. that may come from support from the authorities for the currency . there certainly is suggestion over the last 24 hours or so that we are reaching those kind of levels where authorities do step in and it's gone far enough

for them to want to prop that up. that might be one factor that can shore up sentiment, certainly in the short-term to stem some of the outflows from the etf's in the equity space. but it's largely premised of a lot on economic developed over the next few months and how much of a blow the trade battle with the u.s. becomes on a global basis, whether or not that becomes a serious problem for people and more money wants to pull out of some of these assets. clearly, very much aux and watching it from day-to-day. kathleen: thank you so much. don't forget to check out that gtb library on the bloomberg terminal. we saw tech stocks rebounding in the united states after monday's round of many investors feeling uneasy about a potential trade war. let's dig into have it trade battle has been impacting silicon valley. ,oining us is david kirkpatrick

someone who's been following technology in the united states since almost it's infancy. is first, it'sng all about steel and aluminum, right? now we got the president talking committee onhe foreign investment in the united states to go after tech investments. he's backing away from saying just china, he's saying it's china and others. what is it mean for the tech industry in the u.s.? they: i don't think separate the two priorities enough. first of all, just pure terrace bother them immensely. we charged 2.5%. that's easy to understand. china has truly been predatory with our intellectual property over decades, especially in recent years, and i think it is a legitimate concern to worry about the ways china has been

trying to steal u.s. trade secrets, both through cyber espionage place and deconstructing american products in china and to reverse engineer them. they want to do what we can do. and they have been playing dirty in some instances. so that is a legitimate concern. kathleen: what is interesting is, it seems that in a country where the internet and any kind of social comment in the media so controlled, academics and others are speaking out against the stands in china, particularly made in china 2025, backing away from that. the previousn report about the etf's going down, our economy and the chinese economy are deeply intertwined. i would say probably if the trade war really goes in the direction it seems to be headed, both economies will suffer. stocks in both markets will suffer, and in fact, it will be bad for all.

but there is a serious set of problems that need to be addressed, which is that china . on the other hand, if the u.s. companies lose their market opportunity in china, it will be a disaster, because it is increasingly an important part of the markets of every single major american tech company. kathleen: i anticipated you saying that, because i'm going toshow a chart now, china take a bite out of apple. it shows that 50 day moving average, the 200 day moving average. you can see apple's last price suggesting this is beginning to hit them. muchdon't get quite as revenue from china as the work getting, but apple is a prime example. they get 20% of revenue and more than 20% of profit trump china. that is a big chunk. -- 20% profit from china. it is still critically important for them. if somehow, let's say the worst

case scenario, the trade dispute is really bad and the chinese government says no more apple products sold in china. apple stock would plummet, global markets would plummet. also, apple builds most of its products in china, so what would happen then? products are designed in california and made in china. that's what the box says the in fact, the parts flow back-and-forth throughout the entire process. tech hard to say where any product is actually manufactured anymore. is dangerous to get too caught up in that, which i think the trump administration to some extent is doing. i am to their desire to do something, and probably is healthy that were putting the chinese government on notice that were not going to allow them to simply take what is ours. this much-maligned stance that the u.s. has taken, is this to a large extent a historical beast, if you will?

the chinese economy and its domestic tech sector has changed enormously over the past five or 10 years. david: do you mean, are they still stealing our stuff? is that what you are asking? i think to some extent, they would like to. the 2025 thing is very interesting. i admire china for having targets that are that specific and making it such a national set of policies and priorities. our country should do the same, and we are seriously disadvantaged that we have to national policy on these matters. for example, in autos, china will dominate autonomy and electric vehicles, ay should, because they are successfully targeting that. .e just kind of let it go it's probably not the case in the global tech markets we are in today to have that attitude anymore. the tech sector in china tremendously. like i said before, they have

tremendous genuine homemade successes. we cannot assume that they will not continue stealing our stuff. what we need is some kind of global trade contact. china does abide by global treaties if they are signatories to them. we have not even try that route. we need to get china and the rest othe world to agree to a set of policies and practices and rules that apply to all these issues. unfortunately, that's not the direction we have been trying to take this. lots to talk about, david kurt hat trick, staying around with us -- david kirkpatrick. worlde live at the mobile congress in shanghai. there.oined by big names later will speak to the world's , is viable ai startup cofounder joins us at 12:30 p.m. sydney time. this is bloomberg.

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kathleen: we have to bring you new zealand's latest trade balance numbers for the month of may. two hundred 94 million new zealand dollars, that's the sum of the trade balance, exceeding the survey of 100 million, more than the prior month. exports rose nicely, 5.40 2 billion, imports up 5.12 billion and a number that's looking a bit better than forecast. the new zealand dollar there still trading a little bit weaker as we head into trading in new zealand and asia. haidi: the question is, does it actually move the needle given policythat monetary decisions this week. probably not, kathleen. you may have heard of the group , they have aicorns

combined a relation of $300 million, topping the list of chinese tech stocks. the social media stars have also begun their own ascent in the highflying, rapidly changing chinese tech arena. one partner told bloomberg where she sees the next growth surge. first area for growth is around the whole evolution of consumer buying habits. we call it our e-commerce upgrade strategy. in this area, we have invested companies -- and companies like alibaba. what we are seeing is new innovation happening in off-line construction. they are leveraging data

collected from consumers to now try to serve them better, not just online in e-commerce, but also off-line in terms of where they are shopping and buying off-line. this is happening in formats like convenience stores. e-commerce integrating into off-line traditional experiences with data. the second area of growth for us is around social. if you think about sitting in if you find of facebook every 10 years, you are great. china, you can always find a facebook like type of business model every three to four years. there is also new social construction. the key is that it's content and feature driven and targeted to

different segments of users. we have investments in companies that's the number one business in china, the company that's the -- another investment in a company that only targets generation z. there's quite a bit more global growth in social. expect to see the companies taking a model overseas as well. many we haven't seen that success stories of chinese social tech migrating overseas successfully. >> it is starting to happen. we have an investment in a chinese company based in shanghai that launched in the u.s. a couple of years ago. it's among the top five or 10 social in the u.s.. it's an example of a chinese developed app becoming number

one in the u.s. market. haidi: that was jenny lee speaking to our very own tom mackenzie in shanghai. david.bring back no doubt we are in the midst of a chinese ipo bonanza right now. we're watching the likes of -- about two thirds of them have come in below the issue price, about 20% below on average as of the end of last week. are we seeing a situation where by way shinzo just too stretched? david: i think the potential of jennyinese market that lee was just talking about is so vast, it's understandable that people would want to give big valuations to these companies. a time ofwe are in uncertainty on what's going to

happen with the chinese text sector, partly because of the disputes with the u.s. i'm very bullish long-term about chinese tech, despite whatever we might say about the u.s.-china tech dispute. it is interesting what the ,revious speaker talked about in general, china has failed on the social front. china has this gigantic social company on by tencent which is really not penetrated in western markets at all. it's had some good success in markets in the developing world, but in reality, even notice huge, dominant in china, just the way facebook is dominant in the u.s., it has not successfully penetrated other developed markets. haidi: that's not unusual, though is it? you rarely see cross-border success being replicated. we seeing that would take companies in japan that of struggle with that.

isn't an issue of government regulation, censorship preventing that ecosystem from being a global one? david: there is real caution about chinese social companies operating outside of china. i think it is unfortunately the case that almost whenever a chinese tech company operates outside of china, at least some leaders of countries in business competitors and users worry about the chinese government involvement in whatever that technology is. i think that is a serious worry, whether it is justified or not. chinesegoing to slow tech penetration around the world, no question about it. kathleen: you've noted that google made an investment in alibaba's largest e-commerce rival. do foreign companies have to align with one of the giants to make headway in this part of the tech industry? david: in china, you free much

have to align with one of the giants to succeed. if you were to look at the list of chinese ipos, i think you could go down the list and mark each one as being affiliated with alibaba, tencent, possibly with baidu, but that's pretty much it. jd.com, it's in the tencent universe, and google just invested in it. it is a competitor to alibaba. we now see google potential he aligning itself with tencent, which is a big deal. is making a lot of investments in china. they are very much aligned with alibaba, their biggest historical success. alibaba versus tencent is really where the action is in the chinese tech industry. kathleen: isn't that different in the u.s.? david: yes, it is different. you don't have to align 100% clearly with facebook or google or amazon.

those companies or possibly to dominant, but you can be independent in the u.s. market in a way that is much harder in china. long-term, you will have to be allied in china. kathleen: david kirkpatrick, thank you for a fascinating conversation, putting so much so much of this in perspective. check out his latest book, the facebook effect. on our interactive tv function. you can dive into any securities and bloomberg function that we talked about. be part of the conversation by sending us instant messages during our show. check us out at tv . this is bloomberg. ♪

haidi: that's about it for "bloomberg: daybreak australia." up next is daybreak asia. what are you watching over the next two hours? beof course it's going to about trade.

we're waiting for that announcement on friday from the trump administration on chinese -- restrictions on chinese investment. our guest has some strong views presidentxi, saying he sparked a global backlash that transcends the u.s. and we will see a china's going to cave, given soe trade tensions we have seen. 2012 -- china 2025 has failed in that regard. >> trade is the big question, not just what does it mean for the u.s. economy and growth in other nations around the world, but also if market volatility continues in stocks and bonds. haidi: and that inflation question as well. we will be live in shanghai at the mobile world congress, the seventh year running for this event.

we'll talk about the possibility are the potential of the internet of things in china and the rollout of five g across china. that's it for "bloomberg: daybreak australia." this is bloomberg. ♪ retail.

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>> it is 7:00 a.m. in hong kong. i am yvonne man. ."lcome to "daybreak asia the top stories this wednesday, asian stocks heading towards a mixed open. oils gains helping overcome simmering trade concerns. biggestimbing to the drop in almost two years. pressure on allies to cut its forces from iran. kathleen: i am kathleen haze in new york. president trump -- canada joins the e.u. in preparing new steel quotas in response to u.s. tariffs.