haidi: mixed messages on oil. president trump putting pressure on saudi arabia. the white house backs away from his claim. model threehits production targets at last. it has now become a real car company. haidi: china's export growth slides as trade war limbs, five days away from the new u.s. tariffs. ramy: mexico shakes up the system with the left heading for its first presidential victory in decades. we are live in mexico city.

haidi: good monday morning where it is fast 8:00 in sydney. this is daybreak australia, two hours from the open of the first asian market. ramy: past 6:00 on sunday in new york. over the next hour we will look at how the action on wall street ended and what happened over this weekend and how it will play into the asia-pacific trading day. we did get a lot of ego data fromchina and -- eco data china and south korea, implying it is not doing as well as investors would want especially with pmi out of china less than expected. south korean exports less than forecast. looking at the tankan survery in businessfew hours, and sentiment will fall there. this is pulling together with the escalating trade war. got to wonder,

the first half of the year was characterized by volatility. these tariffs not just from china but also from canada, retaliatory tariffs, now five days away from the u.s. tariffs on chinese goods kicking in as well. ramy: and today $16.6 billion from canada to the united states, retaliation there. a lot to get to. let's get a look at how stocks ended. you can see before this negativity started to filter through, the dow was higher, quarter of a percent. the s&p marginally higher. the nasdaq also marginal. currencies now, we see reaction here. you can see the bloomberg dollar spot down half a percent as of last friday. the euro down .1%. we are looking ahead to the mexican peso, 19.87 against the

dollar, down .2%. this has been falling since june 15 as we get closer to the elections. we are expecting those to come through in terms of the final results later on this evening in mexico. we will have those only we get them. looking at the brazilian riyal, 3.87, weakening, but the brazilian central bank saying they will go ahead with more fx swaps to stabilize the currency. haidi: horrid time of it when it comes to emerging markets, fx, bonds and equities across the spectrum. setting up for the start of the second half of the year in asia. we have trading in new zealand underway, of .1 for -- up .1%. the u.s. dollar falling against just about everything in the g10 yen as we heade

into trading. sydney futures looking positive. remember the kiwi and aussie did markets -- the aussie markets were working amid a sea of volatility. key level. the rba decision this week, no move expected but looking for guidance, whether that next move rather than a hike. in commodities, very much key, talking about oil, president trump creating a storm in the oil markets, saying he had reached an agreement with the saudi king to add oil to the markets. the white house backtracking from that and saying any opec market that does that will be walking out of its role in the cartel. new york crude trading shy here. brent also coming to the highest level since may. watching the bloomberg commodities index but in particular metals and agriculture. this will be a key space in the next few days heading towards the u.s. tariffs on chinese

goods. we have seen ready massive declines across the likes of industrial, zinc and a bear market. -- in a bear market. we will watch the yuan in today's trading. add more asting to it inches closer to the psychological level 6.7 periods chinese authorities could step in to stem the bleeding in the currency. no trading in hong kong. markets are closed for this special administrative establishment day. ramy: as you mentioned, we are talking about oil because the white house is appearing to back off a tweet sent by president trump claiming he has persuaded saudi arabia to boost oil production to its maximum capacity which could threaten the fragile opec truce and opened the kingdom's rivalry with iran. let's get more on this from inomberg editor ros krasny

washington. is the white house feeling the heat about higher oil prices? they have been up for days in a row. have we learned more about conversations with the saudis? ros: we haven't learned much more about his conversations beyond what we heard last night, the sort of walk back we had as you mentioned from the white house, and the saudi's themselves saying we did not promise anything. it definitely seems like coming into election season and what they always call the summer driving season in the u.s., gas prices at the, our way up this year over the past couple of years. that is a sensitive political subject in the united states. it is a car driven culture. it wass some sense mentioned in interview with president trump today and in other forums that, what if these high prices at the pump offset

the tax cuts that a lot of americans got this year? what if democrats could use it as a political weapon into the election season? seems like that might be behind what is driving the president to address this with the saudis at the moment. between what he said in his tweet yesterday morning and the actual conversation, maybe lost in translation. haidi: automakers are looking increasingly [indiscernible] in opposition to the tariffs. have we had any response from the white house? ros: president trump in the interview broadcast today pushed back against the idea of putting tariffs on imported cars and car parts would be a tax on americans. -- attacks on americans. we also had his white house trade advisor peter navarro talking yesterday.

he really pushed back against general motors and others. he said the tax on car parts was nothing more but the price of a floormat, and they were talking tight --accid tail tailpipe. --have had bmw, jen day and now magna, based in canada and active around the world, also talked about a very big and injurious impact from the tariffs. is it getting through to the administration? we have to wait and see. as economic reports pile up and ,ompanies, and express support you wonder if the white house will back down. ramy: it seems president trump is not backing down because he spoke on fox news saying harley davidson should not move production overseas.

this amp: we proposed few days ago. they made this deal long before they heard the word tariffs. they made this at the beginning of the year. i don't think they should do it. it is an american bike, american motorcycle. they should build in this country. ramy: digging in. ros: definitely. as my colleagues have reported over the past few days, president trump doesn't have it right on harley. harley davidson has made motorcycles overseas for 20 years. they have got facilities in brazil and elsewhere. all the bikes that are made for the u.s. market are made here in the u.s. but he was strong in saying, harley voters voted for me, they support me on this, whereas really it is not so much a u.s. issue. he is not giving any ground on this, and having tweeted about harley davidson on three consecutive days last week, we

know his position. we will have to see what transpires next. thank you so much for ros krasny, our editor in washington. very eventful weekend. let's get you caught up to date with first word news. paul: the world's biggest is a step closer after asian ministers said a deal could be signed this year. the 16 nation regional partnership includes china and india, but not the united states . japan says it is vital asia flies the flag of free trade in the face of growing protectionism. they are one third of the economy and almost half the politburo nation. -- the population. standards,ving high unlike the tpp, we include countries in different stages of

development and have to be flexible taking this into account your final agreement we want to achieve will be a package that keeps this in consideration. paul: china's official factory gauge fell more than expected just as the world two biggest economies face a trade war. the manufacturing pmi index was 15.1 in june versus 15.9 in june. the nonmanufacturing pmi rose to 55. china and the u.s. are threatening tariffs on billions of dollars in trading friday. the future is bright as ontesters demanded democracy the anniversary of the return to chinese rule. they failed to disrupt the annual flag raising ceremony. the chief executive attended the event. >> i have even greater confidence in hong kong.

as long as we remain focused and stand united, i assure the best is yet to come for hong kong. , russianalty shooter pulled off a major upset, with spain. the match finished, extra time, then the goalkeeper triggered wild celebrations in moscow by spotg to spot kicks -- two kicks. now they face croatian after the shootout defeat of denmark. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. ♪ haidi: there is just about an hour left before carmakers choose their next president. looks like the left could win for the first time in decades. let's get to our chief in mexico. carlos joins us now. how is the mood so far in terms

of the election? is everything running smoothly? carlos: it is running with usual disruptions we get in every election cycle. that means having around 1% of the pull stations without being able to open and operate as they plan, by the other 99% of the stations nationally are getting voters, and they are like, most of them are 47 minutes away from closing. once they close, they will start counting. once they get totals, they will send those to the central headquarters of the electoral institute in mexico. that haser all happened, how soon can we expect results? expect the presidential results in about two hours and a half. exit polls are going to come in from the media. they have to wait until the west coast, the pacific coast, all

the stations close. once they close, like i said will be two hours, then they will be able to say what those polls show. with that, i think most of the public will have an idea. the polls are being confirmed with the results. the official count, or the preliminary from officials will come around 11:00 p.m. local time, midnight in new york. they will make an announcement, saying how much they are calculating each of the candidates will get in this race. that will pretty much be the final word until the final count that probably will take several hours. what about the market reaction, regardless of what results we get? am looking at -- i

looking at pessimism for the peso. saw especially in this quarter is the peso getting weaker and weaker as we are getting closer to election. in the past week, actually was the top performer among the major currencies. traders, investors telling us that they think the risk for this election is mostly pricing. expectation from the market was the left candidate was poised to win. so as you see right now in the asian trading of the peso, there is not a lot of change. so in the closing of friday. there is probably some weight until these numbers i was discussing earlier start coming in for the exit polls and then the luminary result from the institute? abigail: perhaps why we have seen the peso strengthened from

its highs. our bureau chief, carlos rejig is, thank you. -- rodriguez, thank you. crude prices to the longest quarterly rally in the past eight years. david lennox gives us his outlook on oil and other commodities. ,aidi: a big week ahead in asia major economies releasing data on inflation and business sentiment. we go to our senior economist next. this is bloomberg. ♪ this is bloomberg. ♪

ramy: welcome back. i am ramy inocencio in new york. haidi: i am haidi lun in sydney. china's official factory gauge fell more than expected as the two biggest economies head towards a potential trade war. joining us is a senior economist. great to have you and happy monday.

it has been an eventful six months. we have seen potential decline in export orders. investors and factories, companies having frontloaded that number, now starting to back away. you see that because of trade uncertainty? >> i think chinese data has been taking a bit of a softer hit over the past few months. chineseit is a sign economy has been slowing over the past year. the people's bank of china policymakers are trying to take an active role in the market by easing the monetary conditions and liquidity for companies which we are seeing with a cut to the triple art, and that is likely over the next two months. haidi: every market and fx market in china has really been roiled. what is your expectation for when they step in? 6.7 seems to be the level for the yuan. diana: if you look at the

changes in the chinese currency, it has been a u.s. dollars story. that strength in the u.s. dollar is what has been driving the. i suppose for the near term, the u.s. dollar is unlikely to keep going up much further. really the key reasons around that, we think trade tensions, while they are still likely to remain pretty high over the next few weeks, we have a lot of deadlines coming up over the next three months. they are likely to soften. we will not go into a trade war. that will see pressure come off from the u.s. dollar . global growth is holding up well . you are not getting just strong u.s. global growth. you will see good growth in europe and japan. that should be positive. i think that strength will subside over the next few months. that will ease some of the

pressure on the chinese currencies. haidi: we have another rba decision this week. has it surprised you that the old adage -- has it surprised you have there are cheaper forms given the uncertainty in the background? diana: the outlook with china is positive over the near term. we have seen market disruptions over the past few months but exportingey are still china.f major economy to that will not change especially if we see any policy easing from china, which is likely. it is not surprising to see australia is holding up. we have a lot of internal issues in australia we need to work through, and those are the biggest risks. the key risk to the australian outlook, the housing market and

i suppose the lack of positive sentiment that exists in the housing market and the consumer, which has driven housing. when you see the negative wealth effect from households, you tend to see negative sides for consumer spending. so we remain quite cautious on the consumer in australia. that is why we don't see the rba being able to lift interest rates for another two years or so. ramy: i want to switch to japan because in the next hour and a half we will get the latest tonton survey. -- tanton survey. you can see the official large manufacturing index is expected to fall a few points in addition to the nonmanufacturing. are we starting to see finally rhetoric turn into reality when it comes to sentiment, with data from china and the sub gauge is, the exports they are following?

diana: i am still positive on the global growth story. the weakness we have seen over the first half of the year has been transitory. i say we are seeing more positive signs of growth from the global economy. i think japan and china are likely to show positive prints over the second half of the year. it is a more positive story in japan now than the last few years. the only part that is missing is what is happening to inflation. out of and inflationary environment in japan but you still need to see inflation become stronger before the bank of japan decides to change its monetary stance. ramy: staying in japan, and terms of the yen, it is 110 or so. it has been weakening. look at the happiness of exporters. care to weigh in on where that might go, especially with the

trajectory of the dollar? diana: we don't see much movement in the yen over the near-term as we were talking about before. the u.s. dollar appreciation we have seen recently has -- is going to slow because of all the factors we were talking about. i don't see much further depreciation in the yen, and if we do see that positive story coming through in japan, that will probably override i guess -- it will be an important story rather than a depreciation in the currency which is important to exporters. what we need to see in japan is the inflation story, which is likely. if you look at the indicators in japan, those are at the strongest level they have been in a decade. ramy: great stuff. seniorital investors

economist. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb . this is also available on mobile in the bloomberg anywhere app. you can customize settings so you get news on industries and assets you care about. this is bloomberg. ♪ this is bloomberg. ♪

a check of the business flash headlines, elon musk said tesla became a real car company after hitting the model three production target. he said the company produced a 5000 units of the mass-market sedan and could hit 6000 next month. tesla built a third production line under a tent at their plant. but is described as insanity. haidi: bmw has joined general

mergers -- general motors asking for no tariffs on cars. wilbur ross pointing at the $9 billion investment in the south carolina plant and the reporting ofof

haidi: it is 8:30 in sydney where the markets open in 90 minutes' time, the second half of what has been an eventful year. futures looking positive against a tepid backdrop for the rest of the asian open. pretty overcast day in sydney. ramy: i am ramy inocencio in new york where it is 6:30 p.m. us get to first word news with paul allen. paul: thanks. president trump has repeated his demand for higher order -- higher oil production. he told fox saudi arabia will have to raise up even as the white house backed away from earlier tweet saying he persuaded the kingdom to pump

more crude. the news agency and saudi arabia said the two sides discussed supply and demand but didn't make any results. the left could win in mexico for the first time in decades. he seems to be heading for a landslide victory in a popular revolt against entrenched corruption, crime and poverty. they could win a majority of other houses of congress. the campaign was marred by violence with 100 politicians murdered. merkel's coalition is under fire. offer --orse the threatened to turn away some asylum-seekers at the border. they revived doubts about the coalition's ability to survive. the china merchants group is teaming up with london-based

center kiss and another beijing group to launch a tech investment fund. the new technology fund will aim to become china's answer to softbank's $100 billion vision fund. the state owned conglomerate and other unidentified chinese groups already pledged $6 billion. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. allen.ul this is bloomberg. ♪ thanks for that. let's get an update on the markets as we get trading underway for the second half of the year. today, trading in new zealand, there for trading in kiwi , as we the dollar 67.80 had that pretty broad-based decline with u.s. dollar against every member of the g10 space other than the yen. sydney futures looking good. .4% higher. watching oil as we had wti and

brent ending on high levels for the first half. new york treated group with the highest in three years or the aussie dollar falling below $.74 u.s. getting more pmi data out of china today and the rba decision, not expected to move, but giving indication and ,uidance what the next move is more voices talking about potentially the next move being a cut instead of a hike. let's get more on what we should be watching. adam haigh is here with talk about decline. there is one indicator suggesting that these declines may be pretty short-lived. adam: it is one indicator, but it is worth looking at. this is around the differences in the spot rate and the forward market. if we dive into the terminal, it is in your gtv library, great chart. it shows divergence. that may give us comfort, for

people who think these declines we have seen in the last couple of weeks could run a little bit further. what is happening is a continuation of the domestic economy slowdown. they say the story is still positive for china. we get through these headwinds we have been seeing the last few months, but we did have that read over the weekend. we have played into the bears hands, looking at eco-numbers softer. and the currency in the stock market as well now is governed by what kind of intervention we see from policymakers, whether we get any kind of support. investment sentiments got hit, people are looking for any comfort they can take from the authorities stepping in for stabilization in the currency or movement around the national team stepping in for the stock market.

even with hong kong markets closed today, the focus, back on chinese assets. ramy: staying on china, what is the prognosis? we had the rally on friday but sentiment is bearish. adam: i think that is a fair characterization of sentiment in china. but i think an important point worth noting is amongst all the fallout we have seen in emerging-market assets, there is significant amounts that have come from what has happened in chinese stocks. have a look at the chart in the gtv library. it shows without that kind of slide we have seen in chinese assets, emerging markets have not really on a broader basis done as bad if you take out the chinese component. that may give some comfort to

valuations, the fact that valuation discounts are getting pretty pronounced in many chinese assets including equities trading on the mainland. long-term value managers and especially global multi-asset managers that want to allocate more and could mentally to chinese equities over time. we are looking at these valuations, given how much things have fallen in china. we are finding pockets of interest area the earnings as expressed on forecasts for the msci china index, earnings are .xpected to grow 15% or 16% further to that in 2019 and 2020, so there is an earnings component to a decent looking valuation, given the selloff. our global markets editor, thank you. to forget to check out our gtv library for some of the charts you saw. that is gtv on your bloomberg terminal. china's official factory gauge

fell more than expected in june as the world's two biggest economies head towards the trade war. kathleen hays is here with the details. trade uncertainty appears to finally be hurting china. kathleen: we cannot conclude that but we know we have seen a little bit of weakening in their chief manufacturing gauge. you cannot help and connect the dots from trade war to what is going on. china exports 18% of its goods and services, to the u.s. this is very important to their economy. let's jump into our charts from the library to look at this white line. that is china's official pmi, down to 51.5 in june. you can see a bit of deceleration. this is the nonmanufacturing, services and construction index. it stayed steady from 89.9 going

to 55. the most of the focus is here. let's look at another chart. you wonder where this is heading. the yellow not -- yellow line is new orders. orders, people wonder about the trade war, slowdown, it is now 59.80, and then you have order backlog or that fell. with higher backlog, it shows more demand for your goods. fully below is not what you want to see. south korea's exports were supposed to rise 2.2%. they fell. we have the first 20 days of south korean exports. why is it important? it is a bellwether of global demand. it is the canary for other exporting nations. the pboc last week overly signaled more of a targeted toing buying, a petition

stimulate the economy. you cannot help but think they are seeing history become more. these trade tensions could slow down the economy more. nothing big yet, but not enough to make people nervous. it has been a pretty awful time for emerging markets and central banks. the bank of indonesia surprised last week with a bigger than expected rate hike. is it working? kathleen: we have some indication it did, but they have been fighting so hard to support their battered rupiah. they did surprise us with a larger than expected rate hike. jump now with me to this chart. you can see the rupiah, which had weekend. .ou got 5.50, fell down to 5.46 point inave this basis

may. 50 basis points in june. another 50 basis points. also coming out of the weekend -- the meeting, the bank of indonesia pledging to maintain a preemptive policy. when you look at the ground of comments, they will have to raise rates -- a lot of people think they will have to raise rates. a busy week. the rba as well as the tankan survey. what are we expecting? kathleen: we will get china's cash and pmi. that will come out later this morning. the taunton serve a, the bank of japan, manufacturing services, seee, medium, small, we may waning optimism because of concerns about trade, less exports from japan to the rest of the world. over the course of the week, three cpi reports, thailand,

-- south and tight korea. i expect we will hear more from the policy statement about concerns over trade and what it means for australia. for you to keep tabs on everything. kathleen hays, thank you. president trump tries to move oil prices lower with some twitter diplomacy. david the next joins us with a look at that. this is bloomberg. ♪ loomberg. ♪

welcome back. i am ramy inocencio. haidi: i am haidi lun. you are watching daybreak australia. we are watching oil prices would trading resumes after president trump's weekend tweets, suggesting the king had agreed to pump in addition to million

barrels a day, but they have -- noied they will not specific target was set. crossing -- causing quite a bit of reaction. david, great to have you. what trump tweets and says and is pressuring opec to do a side, still upside for the market. david: there is no doubt about it we have seen oil prices reacting to a positive outlook what is happening now. would put pressure to the downside, but we have clarified what was said in the meeting. it was no agreement to pump additional. a couple weeks ago, opec said we are not going to pop -- we are going to pump about one million extra anyway, so it seems to be where they are comfortable tatts. we saw the oil price react on the positive side and saw donald

trump's tweet has been clarified. it is now positive. we have got disruptions of production in venezuela, which we have seen over the course of this year. and facing sanctions, trying to close the back door of production going out. also we have got problems in terms of libya. with those three nations and somewhat of a cloud, we have seen the oil prices reacting positive. these are long-term events we will see throughout 2018, so don't expect the oil price to go down unless there is intervention. haidi: what about the spread between wti and brent? diana: we have been surprised -- david: we have been surprised. brent is under pressure. what's the there is sustained

curbing of opec, that will affect the brent price. wti of course, over the course of 2018, we have seen u.s. reduction at about 1.6 million barrels of oil production this year. so that is certainly putting pressure on wti in terms of additional protection coming into that sphere of the market. add it up, we would expect to see the premium which didn't get as high as nine dollars to continue to rise. the only intervention again will be what opec added for production. that will narrow that premium five ork into we think six dollars. ramy: this is the seasonality function. go ahead and take a look at the june number, 10.6% is the rise for wti crude.

last time it was this green, back in 2000. that was 18 years ago. looking ahead, what is your forecast for where wti and brent might be by the end of this year? only have a look at the calendar year, we have got the beauty i between $70 and $80. you can see when our trading is in our range. we are not expecting to see any further major rallies in the oil price because we expect to see u.s. reduction continuing to rise. on the brent we are keeping it $74 and $84. we are trading within our range right now. over the course of the rest of this year, if we are going to see any rallies, we expect it to be modest, and not expect to see them breakthrough the top end of our ranges through 2018. ramy: switching to another commodity, i want to talk about

copper. this is a big bellwether in terms of growth for china. hop into the bloomberg again because i have china copper supply -- china copper. supply rising above demand. this implied by our negative bars in red. this is the china copper tight loose index. in terms of where your concerns may live for consumption of copper and the price, where do you stand on this, looking at the chart? david: having a look at copper, it has struggled to get to a free turn. we think it has been significantly impacted by the trade wars we have seen, now starting to emanate around the globe. it is one of the key ingredients inside a lot of commodities that have been impacted by the tariff changes we will see coming into play. we have seen copper struggle and

the fact we have the high u.s. [indiscernible] that is out of the headwinds. over the rest of the year, if we see production of goods transferred from one country to another, and we expect overall copper demand to remain the trickthe triple -- the will be inside the transfer where they will produce the same number of goods. if they don't, we expect copper demand coming off. at the moment, the markets are unsure which way we are going to go. total demand and production remains as is, but in different countries, then we expect to see copper price remaining quite, probably well about three dollars. it is going to be the u.s. dollar that will be a constant headwind for commodities over the rest of this year. haidi: it is an interesting dichotomy because you have u.s. dollar strength being the major theme, but is it strange we are

getting u.s. dollar strength at a time when volatility itself is being caused by the u.s.? david: it is, but when you look at the currencies, you have got investors who at one time would have rushed the gold into safe haven. now they are looking at the u.s. fixing its terms of trade or certainly narrowing its terms of trade and at the same time raising interest rates. if you have better terms of trade and raising u.s. interest rates, that will do one thing, it tracked investors into the -- attract investors into the dollar. we have seen the gold price unfortunately over the last three or four weeks tank out. that will be a problem going forward the rest of this year because we will start to see the data as to whether or not the tariffs that will be in place by then, if they are starting to have an impact on u.s. terms of trade. haidi: the return to basis has

been strong. i want to mention this chart which has made me scratch my head. this is the declining correlational inverse relationship between the dollar and gold. the lowest was 2016. we saw this going into the brexit vote, then the subsequent rally in gold prices. [indiscernible] david: new we don't think so. what is happening with the trade wars is trying to repair the imbalance of trade between the u.s. and rest of the world basically. if it happens, that is going to strengthen the u.s. dollar because the trade balance will improve. with higher interest rates against other currencies, we merchandise trade countries, we have seen them lifting their rates as well. it is the the currencies that are going to have a major impact, and the u.s. dollar will

stabilize against those. that will cause problems for gold probably for some time to come. ramy: we will have to leave it there, commodity analyst at fat profits. the lens of us checking in with the presidential election in mexico. the peso against the dollar now is down .67%. that is strengthening to 19.77, further away from 19.9, the 20 mark we had been talking about. this has been rising ever since june 15 as some analysts on bloomberg have been saying a lot of the negativity has been priced in. bloomberg users can interact with charts shown using gtv . browse recent charts featured on bloomberg tv to catch up on key analysis and save charts for your future reference. this is bloomberg. ♪ this is bloomberg. ♪

haidi: russia on croatia into the quarterfinals of the world cup after dramatic penalty shootouts. terminal subscribers can keep up with the action on wcup go. you can check out how your productions are faring against your colleagues and our anchors. ramy: business flash headlines, and political and social uncertainty at home and abroad the group. the bank told regulators of the crisis in catalonia could harm business in the region and across spain. they said brexit could affect a restructuring process underway at the u.k. operation. the bank is concerned about currency volatility and u.s. trade and migration policies. haidi: reports from china say the government has begun merging chemchina and sinochem.

officials from the state asset watchdog and the communist party personnel unit have been looking at this. the sinochem chairman reported to be the head of the new company but management set up has yet to be confirmed ramy: area china -- confirmed. ramy: a sale of radisson hotels. the conglomerate has been gauging interest from rival hotels and buyers. hna has been selling assets to pay down heavy debt incurred during a multiyear buying spree. it has to sold stakes in hilton worldwide and deutsche bank. haidi: that is almost it for us is morning but yvonne and ramy are up next for daybreak asia. yvonne: it will be about the trade tensions, is trade war inevitable as we count down to the july 6 announcement from the u.s. to slap tariffs on $34 billion of chinese goods?

we will ask that. not going for a trade war or cold war but more an ice age where the relationship has shifted from not just greed to more fear. we will ask what can happen these nations to have a thaw in the trade frictions. ramy: what will be asking about the knock on effect in terms of emerging markets. the bank of singapore investment strategist coming up in the next 15 minutes. we will ask him how much further that selloff and go. the msci emerging markets index is down 16% from its current year high, haidi. pmi, also passing through the disappointing manufacturing pmi over the weekend. steeper than expected fall. we will be do a chief economist for their take on this and whether we are seeing this

impact of trade caution coming through particularly looking at declines from external other countries demand. we will have more next. this is bloomberg. ♪ this is bloomberg. ♪ what's a gig of data?

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yvonne: 7:00 in hong kong. i'm yvonne man. welcome to daybreak asia. asia-pacific markets facing a mixed start and stop entering the second half. oil is following -- falling and the euro is under pressure. investors are looking forward to friday for tariffs and the latest payroll numbers. ramy: i'm ramy inocencio in new york, past 7:00 p.m. on sunday. says it has now become a real car company. mexico shakes up the system with the first is eventual victory in decades for the left.