>> at 7:00 a.m. in hong kong. i am yvonne man. welcome to "daybreak asia." the top stories this tuesday, asia-pacific stocks said to recoup from his office after wall street reversed earlier declines. tech strength topping the trade fears. commodities saw their biggest -- silver fell 2%. gold also down. ramy: from bloomberg's global headquarters, i am ramy inocencio in new york. president trump turns up the heat again, saying the wto treats america unfairly and must change.

the superstar quits nike after 24 years in a deal reportedly worth $300 million. all right. good morning, yvonne, and to our asia-pacific viewers. it has been a really interesting trading day in the united states has restarted started firmly in the red off of all the trade tensions, trade fears. the stocks were down. msci asia-pacific also down. we thought it would be a negative day, but it was a session high. fangs really lifted the boards. to the rescue once again. when it comes to asia, we saw

pretty's deep losses -- pretty steep losses. ramy: let's go ahead and flip up the boards to show you exactly where we ended the u.s. trading day. about .3%. up by it had actually opened down by about .7%. let's go to currencies because we are seeing what is happening in terms of the rising dollar with those trade tensions. the bloomberg dollar is marginally down, but it has been inaccurately rising. 1.16.ro is at mexican, 19.9. it reached the 20 mark. 20.2 intraday. uncertainty to investors. we are not sure with you will go in terms of his programs. in addition, as we head back to asia, i want to put this up on

your radar. u.s. equities were the place to be as we hurtled towards the u.s.-china trade spat this friday. the u.s. breaks out in the white line here. china index, has gone the other way. it seems investors are thinking that the bigger loser, i suppose, will be china, yvonne. yvonne: we continue to see more bleeding yesterday in shanghai. we will check those boards later. see if we can bounceback from those lows. let's take a look at how we are faring. new zealand seemed to be pretty positive, up .3%. also green across the board when it comes to equities futures. nikkei also pretty flat right now, but the kospi futures up .3%. 2% declined across the board in japan and korea.

should be interesting for the hong kong market. dollar-yen not doing much. at a two-year low, $.67. the offshore renminbi, we are seeing theser to pboc step in. the steepest since january 2017 for cnh. ing flashing its forecast twice in a week, seeing them in the at at seven byminbi year-end. we did see the shanghai composite off by 2.5%. this is the eps overnight plunging 4% when it came to the china shares. the trade tensions hitting the hardest one comes to commodities. take a look at the metals. platinum plunging 4%. bloomberg index at record lows.

ramy: meantime, let's get more on the u.s. close with thereupon sack -- sarah. coming laterday on. that means less volume and higher volatility. sarah: that is exactly what it means. today, we had canada day. canadian markets were closed. if you head on into the gtb library, take a look at a chart of the composite volume on the s&p 500. if you look at this chart, you can see that volume was 19% lower than the five-year average . it was not just on the s&p 500. take a look at the dow and the nasdaq. lower than their 30 day average, so you see the effect really playing out. outne: the sector play looks like 2017 all over again with tech at the top of the rankings and energy toward the bottom. sarah: cap was the

best-performing sector, energy the worst. which names added to the most points on the s&p 500. microsoft at the top of that list and apple, facebook, amazon, as well as google. if you switch it up, you look at energy. that was the opposite case. on aiggest detractors point spaces, exxon mobil and chevron. oil prices were coming down. brent oil coming down after president trump lifted output over the weekend. yvonne: certainly seeing some mixed messages. joining us from new york. the trump administration is taking aim at beijing once again, moving against allowing china mobile to enter the u.s. telecoms market on grounds of national security. officials at the commerce department say the fcc should deny the company's 2011

application. let's bring in just object, joining us from washington this morning. all attempts to push back against the administration's trade policies seem to be fizzling out right now. latestt, well this recommendation shows there is no shortage of distrust with china regarding their companies entering the u.s. market or having anything to do with the u.s. market. there has not been much chance of congress moving against trump , trying to restrict trade, but most of that has to do with allies. there is great sentiment in congress and probably the public at large, cracking down on china. this is another example of the administration going that way by saying that china mobile is wholly-owned by the chinese government and as such is andect to coercion

influence for potential economic espionage. wasne: and the president speaking about the wto. there is a lot of speculation that that is his next target, saying things have to change. take a listen here real quick. has treated the united states very badly, and i hope they change their ways. they have been treating us badly for many, many years. that's why we were at a big disadvantage with the wto. we are not planning anything now, but if they do not treat us properly, we will be doing something. we see a lot tpp, of turmoil for nafta. how real are the threats to equip the wto now? joe: this is a long-standing grievance of the president, and as such, it cannot be dismissed as hyperbole. the administration tried to rush away a report by axial smack there was a legislation being prepared that would essentially withdraw the u.s. from wto.

it was dismissed as being sort of a low-level discussion, nothing that has risen to the level of principles, but the thishistory suggests that is percolating through the white house. this may be one area where congress pushes back. it's one thing to try and block the president from imposing ,ariffs on steel and aluminum but it's another thing if he needs to go to congress for some of thative-action to the trade balance in the world, and from a long-standing organization that the u.s. has been part of, he has not exactly laid out what his terms would be for treating the u.s. more fairly, so that goal remains to be seen. but it is a serious threat of some disruption in wto. on another front, there is north korea, with reports of them ramping up production of missiles and nuclear fool to -- fuel. what is the response? joe: the white house says they

would not comment on any intelligence reports. a lot of these are coming from independent groups that monitor north korea and have been watching it for some time. the white house does point to the fact that their envoy to the talks was talking with north korean officials yesterday, and secretary of state mike pompeo is heading there at the end of the week. now, despite the fact that kim jong-un has not publicly ever made a commitment to dial back on weapons development or even unilateral disarmament, the john boltonon -- says they continue to believe and expect that they could get to the dismantlement of north korea's nuclear program by the end of the year if the north koreans cooperate. that is, however, quite a bit question as to how far the north koreans actually are willing to go. ramy: a lot of questions for sure. joe inp --

washington. first word news with jessica summers. angela: the -- merkel t diffuse the feud. leader and minister horace says he will remain in the post after what he called a clear agreement. line onaken a hard migration, risking a split with merkel's bigger cdu. to pay has ordered -- the federal deposit corporation more than $625 million for negligence. the case relate to pwc audits of globe deal -- colonial bank groups. pwc blamed colonial employees but the judge said the firm did not design its audits to detect fraud. saudi arabia raised oil output

by the most in five years. that was on the enough to keep overall opec production study. the kingdom raised output by 30,000 barrels per day. that is the biggest monthly jump since july 2013. however, disruption in libya plus ongoing supply losses in venezuela and angola meant output rose only slightly. 12 boyseams have found and her soccer coach on live in the flooded cave in northern thailand a week after they went missing. the governor says they are being brought out but warned the danger is not over. the team entered the cave on june 23, but were trapped by rising water after heavy rains. rescue workers helped with the search. global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2100 journalists and analysts in more than 120 countries.

i am jessica summers. this is bloomberg. ramy: thank you very much. coming up, more on trade. markets returned to risk off mode. his outlook, next. yvonne: later on, a show. bitcoin bouncing back from a 2018 no. will it be able to avoid a.com-level first -- a dotcom-level burst? ♪

yvonne: this is "daybreak asia." i am yvonne man in hong kong. ramy: i am ramy inocencio in new york. u.s. stocks blew past trade concerns for a little bit. the chiefg in economist and head of credit portfolio management. he is also a bloomberg opinion columnist and. thanks for taking the time to be with us. i want to get your initial

reaction. we saw the u.s. markets at least close down. we saw the domino effect from asia to europe lead into the markets. we saw them rise by the end of the day on the back of technology shares. to what degree was this a surprise to you? what you are describing is a cascading effect across markets as everyone is trying to discount his next stage. friday actually starts, you see that they are actually coming into the fact as we speak. what the u.s. market was indeed saying is so many sectors were not so much impacted by the trade aspect. there's probably some value from investors. so to step in, i do not think it was too much of anything else other than we have, again, good numbers. this is a big question going or so.e next quarter

the u.s. numbers look so strong. they will now see the effects of the trade tariffs coming in. that will be an important focus for markets. discussing inre the break, we were remarking that we are expecting earnings to come in quite well in the fundamentals -- and the fundamentals to come in quite well, but the growing trade spat is something of a bermuda triangle that we cannot calculate. in terms of how you are trying to position what you are hearing, how do we navigate this? ben: that is a great question, but what you want to sort of parameters i laid out. you're looking at the emerging market index versus the dollar, oil prices, financial conditions. the correlation between all of those, we are familiar with this. stralman dollar, flatter yield curve, and you want weakness, so those factors are how you try to navigate the next stage.

obviously, we are all focused on what trump will do next. this wto threat, so to speak, is important to watch. ,f it does lead to withdrawal markets will discount it at a greater effect of shrinking trade that will impact on the global market. parameters are something to watch. it's notable to see how the dollar strength has picked up so much steam and how that could build in the third quarter. gethe u.s. data does impacted, you can expect the federal reserve will respond to that. ultimately strengthen the dollar. yvonne: right. let's show off some of these barometers. you brought charts into highlight what you are eating. this is the u.s. treasury and bun spread. -- bund spread. unds are picking up this

flight to safety play. it seems the fed is pretty hawkish. the lateste showing fed meeting. four hikes this year. growth approaching 4%. his further flattening being exaggerated, do you think? curve flattening is giving us a signal of uncertainty. the market is not sure that that are percent of growth rate is to be sustained. do witha little bit to fiscal stimulus, how it impacts growth and subsequently rolls off the hard. that's actually in the forecast, but just a few years out. discounting not that. that's part of the reason why the yield curve has flattened. obviously, as you mentioned, there is hope and optimism that the economy stays strong and can hike as it was planned. given a tightening of financial conditions, that is really a function of not just said tightening, central banks

tensioning, but there is a chance that this yield curve flattening will be the signal that ultimately the u.s. economy does faced slowdown, and then, things will change. i think the fed is very much looking at this as voices within the fed that certainly highlight a caution before going to much further than neutral. yvonne: you have mentioned about them in the. -- renminbi. we are seeing this continued weakness. offshore forwards are going the other direction, so perhaps there's less fears here than capital flight. do you think you have seen the worst of this renminbi weakness? ben: it's a function of liquidity. it can inject liquidity in the system. it has liquidity pulling off. that's part of the anticipation why the renminbi on chores are maybe -- on shores are may be

weaker. if not really the dynamic from what we saw back in 2015 from that perspective. the yuan weakness is correlated to the stock market. it had a lot of pressure because it's discounting an impact from trade on to china, so the yuan is very much driven by just domestic factors that people are looking at, you know, somewhat of a slowdown in the chinese economy as a result of trade. ems: expanding this to the shares, i want to happen to the bloomberg and take a look at now thatthe are yandex mexican elections have been priced in. one of your charts, more fairly valued, is what you say. we have been seeing emerging-market shares see their worst quarter since 2015, but that fairly implies that there is an opportunity. ben: it could be. is fairlytioned, it

valued in the context of historical context we have seen for emerging markets. this is similar as we had a few years ago, so people are looking at this. if it is all dollar driven, all together in one direction, there is actually value, because ultimately, the emerging markets -- its yield currencies were impacted by the dollar. as an investor, you would say there is opportunity to invest again. take mexico as one example of where the elections are out of the way, and then after negotiation goes on seems to be an olive branch between the president and the mexican president, and opportunity. the mexican peso looks undervalued. i could go on with a few other examples. the broader idea is ultimately, it should offer value to investors. i think the point is coming. ben, the name and's, -- chief economist and head of the

portfolio management. thank you very much. users canbloomberg interact with the chart shown using gtd go -- gtv . you can save this chart for future reference. this is bloomberg. ♪

yvonne: automakers operating in the u.s. are increasingly concerned about potential tariffs on imported vehicles. g.m., or, bmw, and others, have spent aliens of dollars on production plans and are worried that duties would hurt sales and profit. let's take a look at this with craig crude. front from the automakers slamming this tariff. some it up. what would it be? craig: two words. doom and gloom. there is a consistency, a common thread, if you will, in these comments that have been submitted to the commerce

department in washington, which is looking into auto imports on the basis of national security. you see a common thread of companies emphasizing how much production may have in the u.s., how many employees may have in this country, and then going into the negative ramifications of what could happen if donald trump and his administration decides that there are grounds for, you know, implementing tariffs and putting up barriers to both vehicles and parts. as you mentioned, this is really widespread. you would think that maybe this , youcase where gm or ford know, some companies that have significant production in the u.s., you know, would potentially, you know, pipe down as this happens, because they would be affected less, but that is not the case. you saw gm come out last week and really push back hard against this investigation and any tariffs on imports. ramy: what are some of the more

noteworthy points being made by asian automakers as a push their case? craig: you are seeing for you to come out and talk about really emphasizing u.s. produced car like the camry. it's the top-selling passenger car in this market. that would increase in price by $1800. you see hyundai come out and say this could have negative implications for trump's efforts to work out a deal with north korea, with south korea being such a significant, you know, up to our on a geopolitical basis, and this having negative ramifications for the korean economy. you also are seeing comments volvo,guar land rover, and others. this is a widespread amount of pushback being levied at this investigation. trudelll right, craig in detroit. thank you very much. still ahead, shanghai stocks saw

their weakest close in more than two years as the yuan continued to lose ground. analysts expect the pessimism to prevail. this is bloomberg. ♪

yvonne: it is 7:30 a.m., tuesday in hong kong. hong kong returning from the holiday here today, potentially catching this rebound in wall street. a down day in chinese markets yesterday. ramy: that's right. interesting to see what happens, if they manage to miss that negativity for the first day. in new york,monday where markets closed up by .3%. that is a session high despite what we saw, a bloodbath from asia to europe. we thought we would catch that as well, but it turns out we didn't. i am ramy inocencio in new york.

yvonne: i am yvonne man in hong kong. you are watching "daybreak asia ." first word news with jessica summers. jessica: the trump administration says it is premature to discuss leaving the wto, although the president has repeated his warnings about bad treatment. wilbur ross says it is more important to impose reforms than simply walk away. ask your is reported the white house has drafted a bill that would allow the president to ignore fundamental wto rules. treated the wto united states very badly, and i hope they change their ways. they have been treating is very badly for many, many years. that's why we're were at a -- we were at a big disadvantage with the wto. if they do not treat us properly, we will be doing the trumpyvonne: administration is taking aim at beijing, moving against allowing china mobile market on grounds

of national security. the sec should deny the company's 2011 application in the latest spat over china's growing influence. washington is to impose tariffs on friday and beijing promised to respond. sex to be positive model three production days after reaching its output target of 5000 cars per week. be positivesaid to for its model three production days after researching its output target of 5000 cars per week. facebook says it faces a tough time regaining user trust after the cambridge analytical data scandal. the company told e.u. lawmakers it has been hard to convince angry users and it has been "programmatic." mark zuckerberg was criticized for dodging the questions. facebook says it is now doubling the number of staff working on user safety and security.

global news, 24 hours a day come on air and at tictoc on twitter, powered by more than 2700 120nalists and analysts countries. i am jessica summers. this is bloomberg. yvonne: thank you. we are counting down to some of the major market opens in the asia-pacific. for more on what to watch, let's bring in sophie kamaruddin. plenty of attention on oil markets. oil diplomacy coming from the president. sophie: traders being unnerved that oil has gotten more politicized. that's making the market nervous that it will not have any spare capacity. check out what's going on with oil prices on the terminal. crude and brent prices have softened after the rally we saw last week. have uti below 74. brent below 78. even a hint of -- crude prices remain elevated with analysts predicting a pullback.

they are predicting rebound in the long run. hedge funds cut that's by 60%. given -- bets by 60%. major oilt see producers like saudi reacting. ramy: that is interesting. analysts are saying $80 per barrel for this moving ahead later this year. could this rise in oil prices signal potential gains for commodities in the broader space? craig: according to some -- sophie: according to some perspective, oil should be the launchpad. no commodity has the ability to lift all boats like oil. consider this. when you jump into the terminal, you can see the bloomberg commodities index has met the second half but he much unchanged. -- pretty much unchanged. a 20% plus gain. a perfect storm likely will not last. we are talking about stronger

dollar, the trade tensions, and weak conditions. that nascent commodity bull market could get back on track and join oil's summer sizzle. of warningsa series like morgan stanley cautioning that trade tensions bring a risk of -- yvonne: that is where we are seeing the biggest hit overnight as well. checking in on the markets. let's get more on what we should be watching. let's bring in adam haigh, joining us from sydney as well. it is the sentiment in china. looking very shaky at the moment. thishere any signs of selling leading off today -- letting up today? adam: certainly at the back end of last week, we thought there was some kind of stabilization. the equity market had a little bit of a rally. we came back in on monday and things got pretty much back to the trend may have been in for the last couple of weeks. that downgrade from ing on the

yuan-dollar forecast was the second time they lowered it this week. they are saying seven you on per per dollar.yuan that speaks to the shaky sentiment that is not just affecting the currency market but also continuing to affect the equity market. hong kong was closed yesterday. we would expect that to filter through across the border. really, it is creating an increase in that divergence between chinese equities and u.s. equities, which are acting as a bit of a haven. you can see that playing out in your gtv library. it's getting more and more stark. the selling resuming on monday. with sentiment so fragile, it is difficult to see any kind of significant, sustained bounce beyond any short-term move. having said that, there are quite a number of people in the market now pointing to some increasing valuation discounts that are looking pretty

favorable in terms of chinese equities. theirciete generale -- strategist was looking at some of the discounts he is finding in chinese equities. limitedggesting very downside from here. he sees a market basically placing earnings, declining by 5% over the next 12 months, whereas can then suspect dictations earnings growth continues to hold up around the team percent. if you believe that some of the 18%. war -- if you believe this, then it may be reasonable to get back into chinese equities, giving this level of discount here. to theroadening this greater em space, some investors are clearly seeing value opportunities in this latest shakeout. jpmorgan asset management -- what are they seeing? what are they seeing the places

to buy in em? adam: when you have big bouts of selling, a lot of markets gets caught up with this. when people, you know, sell broadly, and forget the idiosyncrasies and nuances that might make them more favorable or less, and certainly, in this case, we were hearing from jpmorgan asset management, and she says there is lots of value in emerging-market assets. we are coming off the back of a particularly negative quarter that youind of returns saw in that space. have a look at this chart on your library. this shows it really well. it was such a pronounced decline. she is seeing places like european high-yield debt and across some other area of the european bond market, she sees value. she makes a very interesting point in the much talked about flattening of the yield curve and u.s. bond market. the gap between two-year and 10

year treasuries that we keep talking about and keep seeing flattening in flattening, whether this is a sign of an impending recession or some kind slowdown in u.s. growth, she says this is perfectly normal for this point in the cycle, and we should not be too worried about that at this point, and therefore, you want to favor some of these european higher yield debt markets. ramy: bloomberg's global market editor. the forget to check out our library for some charts that you just. on your owntv bloomberg terminal. alright. inflation is in focus. south korea released its latest report. the reserve bank of australia gets ready to issue its policy message later today. kathleen hays is here now to take a look. we just got her in earlier this hour, and those did not come out quite well. kathleen: a bit of a surprise. this is important to the bank of

korea because they are trying to ponder what their next move is. inflation pretty much held steady. cpi on --ld begin korean cpi down. it was supposed to rise by 1/10. health care costs and others eased. this left the korean cpi at one point unchanged. , 1.2%re cpi year-over-year. into one of those bloomberg terminal charts you were just talking about, and what you are looking at is the red line. bank of korea's 2% target, 1.5% with the year-over-year rate. two months in a row. not moving up towards the target. this iscan see that something that they are going to be watching in korea very closely. in fact, last month, they had a juneh tilt on policy, but

19, a couple weeks ago, the head of the bank of korea said we are closer to meeting our targets on inflation and growth and maybe we will move away from that. not yet. looks like they are stuck with a -- where they are, at least for now. yvonne: interesting, despite the fact that the won has wea kened. inflation, another problem for the rba. kathleen: that is the consensus. they are going to watch policy statement as always when they are not moving the rate very closely, yvonne. i want to jump into another one of our bloomberg charts, terminal library chart, and what you can see is to look at how the rba kept its key rate at 1.5% since september 2016. why? wages have come up with it, over 2.1% year-over-year. unemployment down over 6% to 5.4%. year-over-year, that is just

below the bottom of the rba's target. there is another thing that has been happening which is very important to the reserve bank of australia's outlook. funding costs have really surged in australia recently. , thean see this white line local funding cost index. u.s. dollar markets swapped into australian dollars. dollar funding costs, very important. this is the trendline, which however you look at it, is up. something to do with fed rate hikes raising dollar costs in the u.s. there is another concern here, and that his trade war. if you are an export a light australia, dependent on exports to china, you have to be concerned about what is happening there. owe isas at -- phil l concerned about trade war reverberations. let's listen. >> so far, the the financial markets have taken a benign interpretation, but that could change quickly. we see a lot of turbulence as people bring those events

forward to today. the other mechanism is that businesses, they have the option value of waiting. people saying to delay decisions . in canada, that is happening. in mexico, that is happening. it is probably happening in china. kathleen: one more reason why governor lowe is being cautious -- a day ago, we got weaker purchasing managers. thinking that is a possibility. around the world, this is one thing making central banks very, very cautious. yvonne: kathleen, thank you. kathleen hays. still ahead, bitcoin rebounding to its best day this year, lifting other crypto's as well. is it enough to bury the bubble? this is bloomberg. ♪

yvonne: this is "daybreak asia." i am yvonne man in hong kong. ramy: i am remy innocence you in new york. bitcoin kicked off july with us -- with a surprising thing. it jumped 12%. the purging start was also a boost for bitcoins biggest peers . between 10% and 15%. joining us now from rhode island is david. thanks for joining us again. it's really interesting, because we have been seeing this fall, this plunge, for bitcoin ever since december. we are seeing this pop of 12% now. what do you make of it? david: i would see it as being a

little bit of a relief rally. certainly, we did see it going until the end of the second quarter, levels had come under pressure, not just for bitcoin, but for a very wide range of these, and to the extent we turned the calendar over to the third quarter, perhaps hope springs eternal. there have been some positive regulatory developments coming out of the exchange commission. when the director of the division of corporate finance has come out and said in a speech that he did not think ethereum was necessarily a security. ethereum is particularly areical caus because many founded off of the smart contract features. chatted, youme we were telling me bitcoin would fall to 5000. it is that 6603. last time we chatted, it was above --

this is your dtv library. of tallthis jump percent. the red line is the $4292 level. i have this year because that ofld be the 78% nasdaq crash 2000. david, you think we will get there? i don't know if we will necessarily have a mirror image of what we saw in terms of the nasdaq crash. i think there's important issues to be resolved from the use standpoint with respect to bitcoin and other crypto currencies. first and foremost, we have not necessarily seen bitcoin from a payment standpoint. you have seen the ceo say that they are taking initiative to try and make it easier to actually use bitcoin in terms of transactions. away from that, you have significant regulatory concerns coming out of the likes of the securities in exchange commission. -- and exchange commission.

you have 130 investigations by the fbi into activities in the initial coin offering market. so there is a lot of concern or overhang, i would argue, that will keep a lid in terms of the substantial recovery for the cryptocurrency market and probably for bitcoin to get more than over the $10,000 level in the second half of the year. granted, this is an emerging asset class. it's highly volatile. we look at some of the fundamentals that near-term we think continue to restrain it, but as we do see greater moreion of bitcoin and importantly, as we see a wider range of in titian's and organizations interested in implementing blockchain, this is something -- of organizations interested in blockchain, this has prospects. yvonne: do you see parallel to the dot-com era? some are worth less than a

penny. that make it seem more like a bubble feeling right now on what is going on? david: certainly, there were a lot of initiatives in terms of ico's that came to markets in 2017 and probably early 2018. probably should not have come to the market. there has been a substantial loss in value for investors. the total cryptocurrency market at its peak was worth approximately $830 billion. that number has come down $594 billion. to $236600 billion billion. clearly, there has been a lot of money lost by investors. arguably, there has been a of hyperbole coming out of the market, and now, we start to look at this market in a more sober manner and more importantly, for the underlying adoption of blockchain technologies by established

companies and organizations to really give us the proof points that blockchain and related cryptocurrencies may be getting traction going forward. hopefully, we are finding a floor around these levels. interviewed robert weller talking about what have been seeing, and i want to make sure to hear what he had to say last week about bitcoin. coast is lessst into it than the west coast. silicon valley is really into it. that this isshows not a rational response to new information. it is a social movement. it is an epidemic of enthusiasm. very much, it is a speculative bubble. you mentioned -- a little bit about the institutional investors getting a little bit more interested. given some of these regulatory and security concerns, i think there are a lot of money

managers sitting on the sidelines on this. do you see that trend reversal in anyway? david: we do see institutions taking their time from an investment standpoint of coming to this market. what's been most interesting to us is seeing the extent to which established companies have been pointing out lock chain applications within their own businesses. with all due respect, to schiller, he has a nobel prize. i do not. if i wanted to look for countries such as switzerland, a wealth manager globally, the swiss government has taken a very positive move towards trying to regulate the use of cryptocurrencies. there have been very substantial operations put in place. as a matter of fact, ethereum, which is the other cryptocurrency you mentioned earlier, actually has foundation over in switzerland. when we start to look at cryptocurrencies and their adoption and creation worldwide, we need to look outside the unit and we- united states

may be looking too much within the u.s. this is a global market. there is innovation taking place worldwide. yvonne: david, we will leave it there. david garrity, ceo, joining us on the latest on that point. now, for a look at the stories trending across the bloomberg universe. bloomberg subscribers are reading about ray dalio. is the largest hedge fund firm at the end of 2017. over on tictoc, tesla taking a production break after exceeding model through production targets. a lot of speculators still think they can sustain that target. on bloomberg.com, the news everyone is reading. roger edwards blockbuster deal that will see him leave nike for uniclo. you can see that on the terminal. aboutan interesting story the switch.

big booster when it comes to the overseas expansion for fast retailing, which does own uniqlo. we really have see the international operating income for uniqlo really leave the growth -- lead the growth we do see in the company as they deal with this aging population and slower sales in japan. this is a 10 year contract deal. he is 36 years old. i do not know how much longer he will stay in the game. of course, it will be great for the band overall. talk aboutyou international expansion, i am taking a look at the financial analysis function for fast retailing, the parent company of uniqlo, and most of their money is made in japan, of course. you can just see this on the right-hand side of your screen. the rest of it is overseas. they do not even have any breakout for european.

presumably, -- for europe here. presumably, they will be competing with h&m, gap, etc. it's interesting and perhaps unwise move. $300 million. will it be worth it? yvonne: certainly want to watch. we have more ahead on "daybreak asia." this is bloomberg. ♪

yvonne: we are counting down to the market open in japan, south korea, and australia, less than three minutes away, hoping for some kind of bounce back after the rebound on wall street. really overshadowed the trade concerns. we see equity futures in asia firmer across the board. key will be china after that bloodbath we thought yesterday on the shanghai composite. joins us later, nick

for discussion on g10 currencies. what does that mean for the renminbi? could it push the yen higher? the market open, coming up next. this is bloomberg. ♪ retail.

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markets remain under pressure and continues to climb. oil and precious metals are down. >> from bloomberg's global headquarters, it is just past 8:00 p.m. on a monday. president trump turns up the heat again sank the wto treats america unfairly and that was strange. smiles,sm after the

reports from washington to north korea is continuing to live up its nuclear program. >> kicking off across the board here. we saw that wall street session of the key focus is going to be china they can turn things around. pretty steep declines across the board. take a look at equities as well. >> it was interesting to see the domino effect coming out of asia into new york. as we were speaking in the past hour, there was actually a bit of a turnaround because of tech aocks being a little bit of savior in the day. of course, we look ahead to does $34 billion at the end of this week.

perhaps, we will keep holding on here until july 6. we are seeing a turnaround here in asia as well. after that, more than 2% drop we saw yesterday. consumer stocks helping to boost stocks in tokyo for now. one.ng steady around they koreanhat economy is slowing. this after that sluggish export data that with a over the weekend. we could expect more appetite for crampons. -- korean bonds. 118korean won is trading at against the dollar. at thein sydney from the

rally could be counterintuitive for an economy that is so heavily exposed to trade. back in june, we saw the climb faster than any other stock market that is outside of mexico. confident that has cooled. the rba is expected to be a key interest rate at a record low later today. the aussie is a a study ahead of the decision before signing overnight. rhetoric is worsening short of the aussie dollar. on oil, we do have it sticking below $70 a barrel. output pretty's steady. this marketsg right there appeared in the meantime, china will once again became for asian markets to rebound as we were talking. the current environment is

divided on its prospects in the short-term. for more, we are joined in singapore. let's start with you, last week you described the current feeling. like a kid in a candy store on the in china just too cheap to ignore? ofif you look at a variety the valuation metrics, chinese stocks are down to multiyear lows. overall, they are looking pretty attractive. certainly, they are disappointed in the last month or so but global growth is good and chinese growth is still looking above 6%. that is still strong growth. from the world, we still seeing good earnings. it is very negative momentum. what is going to turn around? the big thing on the horizon are these traitors. -- trade tariffs. it is darkest before done as i

said and i think that is what you want to look at. -- method set of tariffs are due next week. i think overall, this is probably the most negative moment. that provides a great opportunity. ramy: that sounds like a very strong argument there. we know you are bearish but the short-term. what do you think about sentiment? do you think about compromise? >> i am generally more bearish on most things. i am more bearish than him on this. >> i think markets have not really yet begun to know down the lithic. year, we had ridiculous blows followed by corrections. everybody said that is enough them now, we can go back to other outputs.

then, we ran into a series of fresh stocks. the markets, they have come down but they have not really come down on that much. i also think that we are in a situation at the moment where the only news that markets are hearing, and the last couple of weeks, is a negative is. -- news. >> markets always overreach. the current projections actually the good but i do not think that this is the time that you want to go in because the risks and downsides are so much greater than those of the upside. yvonne: we were just talking about is really interesting chart i want to continue this and take a look at. you mentioned, is weakness that we have, as has actually given china a trade advantage. onshore rates the with the new export orders, every time we see this kind of

weakness in the currency, we do see export order start to bounce back. the catalyst for the persuasion trade. you agree/ >> ihedigbo we have seen in china is a very sharp weakness in the last couple weeks both against the dollar and the trade. it is important to put into context of the yuan was expected to be at a couple of years i. with this did is suddenly turn around and end up being one of the strongest currents in the world. everybody is. -- is very preoccupied. it will be a big boost for chinese factories and that is important because we are seeing pmi's around the world generally positive. shows a business owners are not getting to discourage yet but the threat of trade was coming in. yvonne: we're talking also about the edging lower.

to think that is another excuse for people to continue to short the end because it is a suspense enough? -- less expensive now? >> the dollar is going up and one of the factors that it is impending everything except the u.s. and the impact of trumps trade moves and also the fence feds policyening -- tightening and relentless climb of the u.s. dollar. that money also feeds into the u.s. stock markets. i think that is a big part of what is driving the one -- yuan. that sort of export dependence, that is what china wants to break. -- plan for aint

different sort of economy than what they had before. they are going to pursue it. youe is no guarantee that will reap the benefits because they are not aiming for a necessarily high chinese stock market in short remain under. you are giving for a different sort of chinese economy. vulnerable tos the sort of maneuvers that trump's care. is carrying out. ramy: this is titled u.s. equities have been the place to march or so. this is the blue line represent in the china index. you to the following here. mark, you being the optimists year, what do you say to this? do you think this is somewhat of a temporarily put? a lot of investors seem to think that china will be the bigger

loser inside is growing traits that. -- trades spat. going back -- going back a few years, you could see the u.s. has massively outperformed. one of the reasons for the is a large buyback program we have seen in the last verse "bloomberg markets: asia" "bloomberg markets: asia" last years. "bloomberg markets: asia" "bloomberg markets: asia" -- overall, we are at a turning case.when that is not the when i say that we are at a turning point, we are at attorney turning point of a multiyear trend. overall, trump is undermining the u.s.'s status as a dominant player in world geopolitics of world trade. it roots confidence in what markets. it appears that for the next years, you will see asian stocks outperform your stocks

consistently unable to your right. right --ulti-here multiyear ride. yvonne: you're saying this could be the next marketable? -- market to fall? >> it has actually been in the books for quite sometime. that a lot of the factors drove the engine has been short-term ones that we will reverse. when you have the rba on hold for almost two years and it's better to be on hold for at least another year. that tells a story that the economy here is david pretty badly. -- doing pretty badly. it is hard to say that equities are doing well at the stage. also, turning to the uso performers, i would agree with mark that in the long-term, it is very difficult to conceive

that the u.s. will go on a performing the way that it has. the drivers for the will turnaround. the u.s. stock market has gone to some extraordinary 30 trillion from a trillion. -- 8 trillion. that has not been accessible anywhere else. that has a turnaround because the rest of the world will catch up. the u.s. cannot go on with this exceptionalism. i think the trump is a major risk there and either way, you look for to the midterms, i do trump gets confirmed so that encourages more disruptive returnr more, we face a to political gridlock and some of the chaos of that can bring. about u.s.gloomy stocks in the long-term but for the next two months, i look site we will continue to see the

divergence between the u.s. and the rest of the world. ramy: let's wrap this up, with south korea's latest cpi saying it was in the negative month on month, it being the bellwether for a lot of things that are happening. with the global economy, how do you feel at this? youris another bullet in own immigration hold for your own arguments? >> absolutely, i think that there have definitely been a few concerning data points. i like garfield himself to present the asian data post because it have started picking up over the next month or so. ordinarily that there. bull and pair -- bear. follow more on our story on the arm markets life bloomberg. get a market run down on one click and there is also plenty of commentary.

our expert editors as well. a lot to talk about in china markets these days. jessica summers joining us from new york. reporter: the trump administration is taking aim at beijing again improving that the chinese mobile content to the u.s. telecom market on grounds of national security. the commerce department says the sec should deny the base 2011 application and the latest bad over china's growing influence. impose tariffso on chinese goods on wednesday. u.k. prime minister theresa may come off has held meetings with ministers to win their support. pro-and anti-brexit figures are split between two possible options. officials say may has drawn up a third plan to combine the best of early models. the uk's future relationship with a you -- the eu.

orderdge's pricewaterhousecoopers to pay more than $620 million for negligence. the case relates to audits and it's been group. it collapsed during the financial crisis and was the sixth biggest bank failure in u.s. history. the judge set the accounting firm did not design its audits to detect from -- fraud. tesla is said to be posing some models were production. that is just days before reaching its output market of 5000 cars a week. we are told they will resume operations on thursday and the brakes will allow the company to carry out basic maintenance work. some analysts question whether tesla would be able to sustain higher production rates. global news 24 hours a day, powered by more than 2,700 journalists and analysts in more i'm jessicauntries, summers. this is bloomberg.

yvonne: other days away from the first u.s. tariffs on chinese imports. we will assess the implications. emerging markets in currencies are taking a hit from trade tensions. analysis. us with his .this is bloomberg . ♪

it has not fallen as much.

we are talking about my terminal here. talking about how do you has not fallen as much as other currencies. is this a catch up to the rest of the developing nations? from the strongest chief operating officer. beijing is an that lie market force or is this the opening shot of some kind of currency war? i think it is probably a combination of two at the moment. the depreciation of the dollar of cross the board has helped ist move but also, beijing happy to see that and they are certainly not standing in the way at the moment. whether that remains in the case, i'm not sure. they are happy to see the move that we've seen in the last couple of weeks. yvonne: is it all on trade that is weighing on the market at the moment?

other actually fundamental concerns after the pmi numbers still expanding the orders were lower. you see these traits are starting to hit the real economy. >> i think once again that we are starting to see something in growth in china. the market is reacting to the. see a little bit further depreciation over that short to medium-term but we go further as public want the dictated by friday. in longer-term, how these traits tensions and out over the next few months. yvonne: we have been talking about the dollar but it seems like it has been overshadowed by what we are seeing which is, yen. we have a chart that shows against the major players and the yen has basically risen against every g six currency out there in the first half.

given the magnitude of these adjustments, do you think the yen still reign supreme and can carry over for the rest of the year? nick: i think it will. i think what we have seen is a good currency market reaction to the impending trade war. theink this further trumps yen against was the majors over the next few months. especially, if we see these trade tensions escalating. it looks like it is going to do with hard-line stocks from the u.s. administration. opt out fromto e.m. for a quick second and take effect to the u.s.. dollar we have been seeing that rise and especially, we have seen grown trade war is these tariffs heading across the world. what are your thoughts in terms of what this is headed in the top term? i think by the end of the year, with the market is positioned, the way in the

rhetoric, and the sentiment we are hearing for the u.s. administration, i do not simply a priced in that escalation off trade tensions and the possibility of a further trade war. i think we do look back at things like the yen and that will probably depreciate probably quicker against the dollar. really standg that in a way of that, is probably a turnaround in the u.s. administrations stance. into we see that, we'll see the dollar depreciate probably not so much against the end. -- yen. yvonne: japan is caught just as much in the east crosshairs on trade tensions than a lot of other asian nations. it safety haven status justified? not as much as we normally expect.

the market will continue to in that vein over the short-term. i think there is public want to be a really adjustment of values over the medium to long-term ellie mae not see too much further of a depreciation in the yen. i think we will see continued further depreciation. pop into theto bloomberg terminal because i want to talk about what is happening with the south korean yuan. we are seeing it track the exports here a rise for a rise. he saw that point for cpi coming in was than expected. we are seeing the one in a little bit of a streak. we do think this is going? south korea has been no is a sort of bellwether for the economy and trade war's? think they further

downside again unfortunately, for the south korean won. other factors are influencing at the market not just global trade tensions but obviously, the geopolitical issue with north korea and the u.s.. i think it's trade tensions escalate come you are starting across thewell as, newswire, that maybe things are not as smooth running between the u.s. and north korea has been for the book of of ago for i think the extra tension will only lead to further downside to the south korean won. ramy: those are was concluded to be true. australia's chief operating officer thank you very much. you could get round of the stories that you need to know to get your day story -- going in today's edition of bloomberg daybreak. mobile on available the bloomberg anywhere app. this is bloomberg. ♪

ramy: a quick check of the headlines. we are told an agreement makes theapital announcement do this week the sale by the partners requires approval from the committee on foreign investment in the u.s.. sachs growth will slow and will tell growth stocks. the share price has been supported by dividend yield. the downside is likely from that site revenue. nikko has lowered its price target on canon from 4000 to 3500 and. -- yen. president trump moves to block onna's entry into the u.s. security grounds. we will get the latest on the washington and beijing standoff straight ahead.

this is bloomberg. ♪

a: 30 and is singapore. markets rebounding of the year as the countdown to tariffs potentially being slammed onto chinese goods later on this week. so far, we are calm in the markets here. yvonne: daybreak are watching asia. reporter: the trump administration says it is a little premature to discuss leaving the wto although, the president has repeated his warnings. more important to impose reforms and to simply walk away. after the weekend, the white

house has drafted a bill that will allow the president to a more fundamental the pto rules. has treated the u.s. very badly and i hope they change the ways they have been treating the me for many years and that is why we were at a big disadvantage with the devotee of -- wto. if they do not true does profited we will be doing something. reporter: saudi arabia raised oil all caps for the most in five years last month. the kingdom boosted output by 230,000 barrels a day to 10.3 million barrels. that is the biggest monthly jump since july 2013. however, disruption in libya plus ongoing supply losses in venezuela and overall output from the cartel only slightly. and angela merkel refused a feud with her

political allies over immigration. the political crisis has threatened to topple government. interior minister says he will remain in the post after what he a clear great -- agreement. facebook says it faces a tough time regaining user trust that it can begin a lot of the scandal. the company told eu lawmakers that it has been hard to convince angry users and it "problematic. . zuckerberg was criticized for dodging the toughest questions. they are now doubling the number of staff, using security globally. global news 24 hours a day, powered by more than 2,700 journalists and analysts in more i'm jessicauntries, summers. this is bloomberg. far but ofding up so

course, an hour away from the chinese open, things can change frequently. sophie: shifting gears could but asian terrible stocks i've had a recovery. after dropping over 2% on monday, now up about a third of a percent. since on the biggest boost. that benchmark now has no change. ministry of you, they have gained a 10th of a percent but we are now seeing a red segment there, that is the iron ore segment. they are citing. this is australia warning iron prices sinking once again. let's check in on some stock movers over over in tokyo, we are seeing nikko climbing after race. praisedearnings having on structural reforms. this is korean chemical filmmakers are falling under a report that they did.

korean cement makers are on the rise. seeing cement up nearly 8%. yesterday stock nearly 3%. over in sydney, you beach energy rising. the stop was upgraded to neutral at j.p. morgan. ramy: looks like we are seeing a rebound or create markets after we got a pretty good here in the end of the day. another leading chinese company is under attack in the united states. the trump administration wants to prevent the company entering the american market in a echo of recent lose against cte. why would the trump administration deny china mobile's to enter the u.s. telecom market here? the trump administration is telling the federal communications commission it

should deny the application based on national security grounds. this is part of the trump administration efforts to rein in what they see as intellectual property threats by china. this is the latest meant to do so. obviously, the tariffs in the whole trade dispute with china have been partly based on this argument by the trump administration that china has economicling its espionage stealing intellectual property in the u.s.. this is the latest meant to do so. this application was filed way back in 2011 but now, the trump administration is moving on them with the federal communication commission, the fcc. congress is trying to sidestep what the president is trying to do which is probably fine. seems i got effort has stifled a little bit there and easy. several thehas had

makers of the senate have been trying to get this trump administration to go back to their earlier position on cte which is to try to stop them from doing anything in the u.s.. president trump in recent weeks has said that he made a deal with the chinese president to allow cte to do business in the u.s. after paying a decline. congress is not happy about this. some key members of the president's own party have try to move against this unsuccessfully. congress has also tried to rein in the president on tariffs trying to get trump to go to congress for the approval. that so far has not worked. congress is less likely to have tends to be ait lot like it's done in a month before the midterm elections on capitol hill. yvonne: our bloomberg senior international editor here in hong kong joining us now from sydney is jerry moran shine, the

advisor at the university of sydney. thank you for joining us. we are seeing this escalade puts tariffs and. investment restrictions on chinese companies, what do you make of this? this is feeling a trade were to? >> is certainly does feel like a trade for. the problem here is that it was not necessary. in many ways, prior administrations that keyed up aggressive takes on china's unfair trade practices but the practice here is that the trump administration is waging a trade for that in my opinion is not necessary. if he had gone through the wto and had asked allies to join the collective approach to join chinese unfair trade practices. difficult investment challenges, i think that there would be a

lot more movement from china. it looks like this trade war is really only going to the united states. yvonne: we've heard from many coordinateday, and response against china would have worked more. is a door close now that we have seen china slapping tariffs on the u.s. and potentially, we could see some more from the eu and the rest of the u.s. allies? >>. is right the united states have successfully alienated many of originally, allies that were on board to take on chinese unfair trade practices. whether it be with i.t., whether it is joint ventures, in many ways, it looks like doors of clothes but that does not mean, they are close forever. tears can be changed overnight but the challenges, the non-tariff barriers that there seem to be a more opportunity for china to inflict them on the

united states. that is what i believe the united states decide have a good look in the straight battle. especially, alone. ramy: i want to challenge you on that just a little bit. a lot of our analysts have actually said that china is the bigger country whose here. in large part, because beijing cannot match the death of the knife so to speak. just delve a little bit deeper here in why you think the u.s. is the biggest loser? the u.s. -- >> the u.s. is a target rich country and that it is transparent. you can see where that will be inflicted in the united states. the fact that china is not democratic and has a legal system that is still developing, to be responsible

to its citizens and face the hardships that a democratic leader would. the same time, you have the legal system and those nontariff barriers that i mentioned before. the increase scrutiny of u.s. importance of the u.s. operations in china. you iphone for example, that is the largest market and that is in china. gm, manufactures and sells more cars in china in the united states. china does not have to inflict terriers andact punish u.s. firms. if you have nontariff barriers where they just do increase investigations, they had their stay on radio which can say whatever the government needed to safeguard there are lot of lovers and china can pull that the united states cannot as easily. i think that is where the u.s. really suffers at this point. ramy: in terms of currency being a weapon in this growing trade

it seems like analysts say that this is something that is being used. what are your thoughts on this? expert not a currency but i would think that the chinese would use every lover possible at their disposal. the challenges, like i said, the u.s. is in a democratic system where they are not as willing and able to inflict the same sort of damage. yvonne: there's a lot of talk of the present saying, he does not like the wto. he said into full of. what are the ramifications for u.s. companies in particular if they cannot have the ability to overturn trade practices from

foreign countries? what are the ramifications agency? >> i think the ramifications are hard to imagine at this point. they are so terrible. leaves the wto and it collapses. it makes it looked at this point. all bets are off. know isof the trade war only a minor spat in a larger challenge if the u.s. leaves the retail. this wt -- wto. the wto is a continuation of the u.s. frame after world war ii. if the u.s. somehow decides to let that aaa, then it really has dangerous applications not only for u.s. firms but also for the united states is all. -- as a whoe.

-- whole. yvonne: mike pompeo heads to north korea as we can they claim kim jong-un is ramping up his nuclear program. we look at the skepticism by the smiles. this is bloomberg. ♪

ramy: this is daybreak: asia. u.s. secretary of state, mike pompeo, is heading back to korea from the tech kim jong-un might be secretly ramping up his nuclear program. our north korea correspondent is a hell of this for us. how reliable are the claims? >> there are sharp differences from what we heard from donald trump that north korea is no longer a nuclear threat: that summit and the commitment to you not from can junk food. -- kim jong-un.

one report is from bbc news but also the international institute of international studies have issued a report as policy u.s. air force center all concurring that kim has been ramping of his nuclear weapon capabilities and not prepared to disarm them in the run-up to the summit. is thate main complaint the north koreans are increasing field production, they are building more missile launches, they are expanding and keep rocket engine fuel manufacturing capabilities. again, these are unsubstantiated and not officially verified but again, they go into the old narrative that we have heard from the north koreans, and promises, and then, not fulfill them. ramy: the reports here to make mr. potatoes presents -- pompeius presence important.

them ontter be pressing these reports because they are quite detailed including some satellite imagery and quite detailed into the enriched uranium fuel processes that the north koreans are supposedly still engaged in. mike pompeo, this will be his third visit. he should be asking a very direct question. offering aobably be kim and thatt to is, if you come through, that will include hopefully, verification over the process. perhaps, the caret could become a listen, will be another summit possibly as early as september in new york city the same time that the yuan general assembly

convenes. other enforcers say that the trump administration is using considering offering that but again, they will have to get some commitments from the koreans. tonne: we did see a trip china from kim jong-un, do you think china is starting to apply here in any sort of way? game theot know what chinese would get to get the north koreans to ramp up their nuclear capabilities. that is something the chinese on. they want the status quo meeting, stability and peace. they do not want an escalation of these tensions. the unitedo not want states and north korea to get to charlie. definitely, the chinese do not want to see it. yvonne: so the north koreans are acting on their own? >> a little bit of defiance from pyongyang if this was true. absolutely, beijing is involved. yvonne: thank you.

vista a quick check of latest business flash headlines. intel technologies, they are going public again. five years after a leverage by -- buy out. they will return the markets by requiring its tracking stock in a cash and swap deal valued at $22 million. lake,estment firm, silver as a pc's company. yvonne: the race to the first really dollar company now has two front runners. out of all of the lead for years and came within $50 billion of the magic number in early june but amazon is now coming up on rails. this year, their market value is 50% less than this year alone, amazon has added the equivalent of walmarts total value. bad day asos had a

revenues fell short of estimates for the second month in a row. mgm tumbled as a territory's gross gaining revenue rose just 4.5% in june and that is well below expectations of a 2%. gamblinglan to allow is a expansion plans. yvonne: the head of mitsubishi's wants an grow says he end to the workplace harassment. bloomberg that it will be a difficult job because many employees have risen to the ranks and what he has called his. culture paired he would not comment on individual cases but says he is aware of incidences. aware of quite a few harassment cases from the past. we can no longer ignore them

because harassment issues are in the media spotlight the states. t -- these days. getlieve it is time to serious and eradicate this quarter from our workplaces. don't forget our interactive tv function, that is tv . watch us live and catch up on past interviews. become part of the conversation by sending us instant messages during our shows. this is only for subscribers are ticket out of tv . this is bloomberg. ♪

yvonne: this is daybreak: asia, i am yvonne man in hong kong. ramy: we know that shiraz is a full-bodied red one. cash -- wine. combining thee is two into a new one blonde at the prospective winemaker is interestingly, doing just that hoping to boost sales to its largest export market. angus, i am trying to imagine this. you have to wonder what this

is going to take some. you say that they are taking famous shiraz from south australia and lacing it with 6% something else and packaging it under this really is most famous wind -- wine. the company estate, that owns these brands, is going to start selling this in september. it will have about 21.5% alcohol which is a movie -- is according to the news report. yvonne: why? why would they put these things together? is this kind of like a loop you float?- rootbeer >> that's a good question. it is probably an acquired taste. wildly popular in china. more than 5 billion liters of

it. harley, anybody outside of china drags it. -- drinks it. the aroma is like soy sauce for a wet dog. i have heard a lot razor blades. what happens when you combine these two what are the -- wonderfully popular beverages together is anyone's guess. clearly, for this date, they are trying to broaden their market using the brands spearhead. is the sterling's biggest wine export market and probably is the size of u.s. export markets in terms of the stride once. -- misyrlena one's. -- australian wines.

we'll see what happens. yvonne: got a given credit for the creative. her business with her instantly. -- our business reporter in sydney. ramy: you want to come up with a drink that is going to make people quit drinking, that is probably it. yvonne: separate to. people, you just make decide to mix them on their own. who drink that? somebody has to call the police. yvonne: let's take a look at what we are focused on for the chinese markets for the next 30 minutes or so. >> liquidity is certainly an issue. michael is coming on the show, it is his first time joining us. he is the managing director.

there are a lot of things about about with him, the key point is the rising rate environment's. it is a fairly nuanced qualification if you will, if you look at the changing dynamics of central banks. i cannot get over the wind -- wine. let's do a quick check of the markets. ,amy: we are in mixed territory up 2/10 of the present we are also seeing a little bit of up and down across the front line. this is bloomberg. ♪

>> is not :00 a.m. here in hong kong. i'm david ingles. you're watching "bloomberg markets: asia." david: stocks across the asia-pacific paring early gains despite renewed optimism on wall street. the dollar is up yet again. turning to hong kong's return, they were pummeled over in the