quick what a difference a day makes. tex save market yesterday, but now brings benchmarks down on a shorter trading day. >> the dollar bulls back after the pboc repeats its pledge not to use the yuan as a weapon in any trade war. can resume u.s. operations until august as seven-yearaive a ban. >> but it's bad news for macron, a patent dispute with the taiwanese rival triggers a sales man in china.

>> hello from sydney where it's just that 8:00 a.m.. we are two hours away from the open. >> and just past 6:00 p.m. here in new york. over this hour will be looking at how the action in wall street will play into asia-pacific trading day. you set it at the top, what was good yesterday was bad today in terms of tech. they were definitely the biggest loser, taking a look at where the markets are headed, the financials were the second biggest loser here, but it was because the chinese court temporarily banned macron from doing operations in china. also we are talking about how the u.s. actually blocked china mobile from doing business in the united states. so more escalation in terms of the sentiment weighing on both u.s. and china as well as the world in terms of where we are headed, especially friday, with those $34 billion in tariffs, as

of now, still on the way. france, the same thing opened on the trade war as we lurch toward the deadline. it doesn't really feel at this point like her going to get more negotiation's or any kind of fullback in the aggressive sentiment before friday. i suppose the question is how much the markets have already priced this in and will there be more talks that could get some ramy:f rest that you let's get a quick check of where we ended the u.s. trading day. it was a shortened trading day as we head into the july 4 independence day holiday. thecan see the nasdaq biggest loser along the things we were talking about. dows&p 500 as well as the down by about .5% there. it was definitely a safety play. let's show you what that is looking like here, the bloomberg , but alsoots down .6%

take a look at gold futures. right now they are unchanged, but in the u.s. session they were up by about .9% there. so we will see if that continues today in the asia-pacific. the u.s. 10 year and two year yield, you can see investors yieldg and pulling the down to 2.83 and 2.52% respectively. haidi: it's looking mixed here in asia. the questions whether that pullback and risk sentiment was on account of going into the public holiday in conjunction with the trade viewed playing out. , we're in new zealand seeing a little bit of downside, about .24% lower. property price inflation came in weaker than expected, the lowest in about eight months. some questions over the strength of the home price market there in new zealand. the kiwi dollar trading pretty much flat at the moment.

the bloomberg dollar index g10ing against all of its peers overnight. sydney futures looking fairly negative, .4% lower going into that open, and the aussie dollar fell to the weakest in more than he year earlier this week and that's in the wake of the rba keeping rates unchanged, unmoved since august 2016. taking a look at the other major story in the markets, a tale of the chinese yuan. we had a bit of a jump or recovery rally after that unexpected statement from the pboc governors saying china is using or will not use the currency as a weapon in a trade war. that seemed to pare some of the aggression in the selling in the markets and also created some support across the rest of the emerging-market complex. let's get the first word news

with jessica summers. a shocktwo months after election defeat, the former prime minister is under arrest and could be charged on wednesday. he's been question on the disappearance of up to $7 billion from the state investment fund. up under that was set his administration. hundreds of millions of dollars landed in a bank account linked to him, but he denies any wrongdoing. the u.k. business mentors are says fairviewer to reach agreement would be disastrous. richard harrington says no deal would be a disaster, and u.k. businesses have the right to voice their concerns. airbus and b&w have worries they might pull investment from britain if brexit meets barriers to trade with the e.u.. ands for more legroom crowded plane cabins are being supported by regulators in the u.s. they say there is no need to

impose new standards on airlines. the faa says there's no evidence that lack of space is a safety issue that could hinder evacuations. largereats and passengers prompted the right to sue, claiming airlines have created a safety hazard by chasing profit. inland will face sweden in the world cup court of final after eliminating columbia on penalties. beforech finished 1-1 the goalkeeper became the shoot up hero. the swedes advanced the last eight by beating switzerland, making this their best world cup since they were runners-up in 1958. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. the trump administration is letting zte is in some

business, according to document obtained by bloomberg news. joe is with us in washington. this is the first step in into the goodack graces of the trump administration. what are we expecting next? joe: this temporary agreement goes through august 1. to be inhey expect zte compliance with its demand. they sat the ceo last week and installed a new chairman. the next step is putting $400 million in escrow fund. that was part of the demand by the trump administration in back into the zte u.s. market. there's still some movement afoot in congress to block this, but that is rapidly losing steam. haidi: as you said, this is just a temporary respite.

the company is not entirely out of the woods, is it? no, it is not. they still had to come into compliance with the demands of the administration, but, again, there's this effort by lawmakers, a few lawmakers to reimpose the van it was forinally put on zte violating sanctions. that, however, is looking increasingly like it's going to fall by the wayside. may be restricted from doing business with the u.s. defense department and the u.s. government, but they still would areaccess to u.s. suppliers some of the equipment and components they need to continue doing business. ramy: members of congress are looking at the sprint-t-mobile merger, putting it under greater scrutiny. the issue here is links to china now? joe: that's right. the issue is for critics of the aal, they are circulating

memo around to lawmakers in congress who asked for a closer look at softbank, which owns t-mobile, and their relationships with chinese telecommunication firms. it has been deemed a security threat in the u.s.. these lawmakers are trying to hold it up and cause the greatest scrutiny as it goes through the review process here in the u.s., and whether or not they could possibly block the deal from going forward as it sends a recommendation to president trump. joe with the latest dealings with china peerless it more on the u.s. close with sarah. after stocks initially traded higher, saw them peter out. it was pretty much a mirror

opposite of what happened yesterday when we were speaking and had to do with tech, both yesterday as well as today. sarah: semiconductors were the worst performing industry group, down 1.9%. leading that packed lower was macron, right around 12: 10:00 p.m. new york time, we had a headline saying that a chinese court was temporarily banning macron chip sales. that would bar macron from the largest semiconductor industry in the world, oh macron it is a about 5.5%. thes take a look at philadelphia stock exchange semiconductor index. the yellow line right at the bottom is the 200 day moving average. we did punch through that today, but going forward, we will want to see that provide support if we do bounce off of that. forward, it wasn't just

confined to semiconductors. we also saw weakness in facebook, new privacy and data sharing concerns there. so we really decide across the board with apple, microsoft, and google. suffered.ancials also , real these sectors estate utilities doing pretty well. where did we see the impact of that 10 year yield falling? sarah: as investors are looking for a safe haven, we did see bonds rally and the tenure treasury yield come down to 2.83%. down, we yields coming saw that play out across sectors as expected, the bond proxies, real estate, telecom, utilities, all higher. you see telecom up 1.16%, real

estate of almost .5%. on the other side of it, we did see some weakness within the financials. this was the 50 day in 17 500ions that the s&p financial sector ended lower. so we been seeing weakness there since mid-june. we cannot seem to get a bid within financials lately. haidi: they get so much for that, sarah from new york. you can get a roundup of the stories you need to know in today's edition of daybreak. available on mobile in a bloomberg anywhere app. ahead, west texas hit $75 for the first time since 2014. andill talk about how saudi russian output can be boosted.

pboc walking a tightrope. more insights, next. this is bloomberg. ♪

>> this isn't a simple task for the chinese administration. they are looking at domestic policies for their exporters as part of the tit-for-tat reaction. it's not just a threat to tariffs but also week exchange rate. the question is, that doesn't come without its cost in terms of the debt side of the ledger for the chinese corporate sector. don't think it is a tool that very inclined to use privet we would agree it's largely a response to a broad-based reaction to the dollar and we

think it's being driven by the fact that u.s. growth is surging in the first half, while we've had disappointment elsewhere. number two, a little bit of risk aversion in response to trade uncertainty as well. as the central bank is concerned, 6.7 is a line in the sand. it's not the definitive line in the sand, these things never are, but when we look at a chart of the dollar-renminbi rate, it's pretty clear that you can home in on the movement we've had over the last month, directly related to the escalation between the u.s. and china. ramy: just some of the great voices and reaction from the world on the pboc pledge not to use the yen as it -- and the trade spat with the united states. formerring in our guest, imf china division head, joining us from ithaca, your.

thank you for joining us here. we're looking at the pboc and what it has been saying here in terms of it not using the line as a weapon here. diving into the bloomberg to set seestage, just today we can that the yuan strengthened by about .3%. its little yellow circle was at an 11 month high. what do you make of this? nothe currency is certainly a weapon that the chinese want to use as part of the trade war. that could badly backfire. the difficulty for the pboc is they are trying to do two things at the same time. one is to send a message to the market that in fact they're moving toward a more market determination rate where the level of intervention is lower. at the same time, they're trying to prevent the market from getting ahead of it. tothe statement is meant

attain both of those objectives, saying they're going to let the currency move more freely, but if it moves out of line, we will push it right back. said look ator market expectations, look to external issues here. we heard from one of those voices earlier on bloomberg tv saying it's not a tool they are inclined to use. and we point the thing are at the u.s. growth as well as the rising dollar here are the majority of this movement back and forth? certainly one can rationalize what has been happening in terms of you one weakness over the last 2.5 months on the basis of macroeconomic fundamentals. not only is the u.s. likely to enter into rate tightening cycle with the fed unwinding its balance sheet and also with the big fiscal expansion likely to give a short-term boost to the u.s. economy and the exchange rate, but on the other side will

have signs of at least some hardening of growth momentum in china. the latest figures of retail sales and industrial production were not terribly strong. canainly the restrictions add to that turmoil. it's accommodation of samardzija weakness in china and marginal strength relatively speaking in the u.s. economy. leave where does this beijing's efforts to try to achieve the so-called and possible trinity, and where does it lead the reform agenda? is the tricky part. trade tensions with the u.s. is causing china to look a little more inward as going to weaken the hands of those in china who are interested in reforms. the government seems committed to at least a certain part of reforms, which is greater financial market liberalization, because they know they need that to get more balanced and

sustainable growth, but the trade tension is certainly going to lead to pull back on that front, especially since donald forwards not only moved aggressively with tariffs, but is striking at the heart of china's industrial policy with the made in china 2025 plan, which is meant to upgrade china and move it up the value-added chain. it seems to track to wreck at the heart of china, and this will make the reformers live somewhat more difficult. do you see this as being an ideological fight, to an extent, when you look at the target of chinese tech? eswar: there are many people in the trump administration who see short fightjust a better longer-term economic fight between the two countries. they see it largely as a zero-sum game. the problem with approaching

this with allies with similar concerns, the u.s. is trying to , and hurtsth data the u.s. as much as it hurts china and all the other allies that the u.s. could potentially have on its side. it's also going to make it harder for china to continue with it objective of not just before me its economy, but opening up its financial markets, liberalizing the capital account, and elevating the exchange rate to become more market determined. the way the conflict is playing out is not going to help the u.s. achieve its objectives, and overly it's going to hurt china's reform momentum as well. ramy: where are we in terms of the momentum here? even in the past 24 hours we have been getting mostly negative things, but we also got some kind of open door for zte, but china banning microchip sales, the u.s. blocking china

mobile. if you bring this all together, what are we left holding as we head toward fighting and those billions of dollars in tariffs? eswar: washington has been sending very mixed signals in terms of pulling back a little ,it on the restrictions of zte and the threat of very severe investment restriction seems to have been pulled back a little bit, giving china little bit more of an opportunity to continue investing in the u.s. very complicated dance going on but i find it difficult to see both sides coming to an agreement in the next couple of days. i think it's going to get pretty ugly pretty soon. ramy: it does seem like that based on everyone we been talking to. so what about after friday, what effects do you think we will see? is it too small to move the needle any which way? eswar: it's not going to have a economy,ct on either

china is a $12 trillion economy, but certain specific industries will get hurt and this could have broader and political outcomes. it's not just the trade measures but the supply chains that are now very complex and interwoven among different countries that could get upset, and that could end up hurting both the chinese moremerican businesses than just buy the rock trade numbers. just by the raw trade numbers. like: sometimes it feels that's what they're asking for, which is a longer-term game. do you think the likely response in the way of massive stimulus from beijing, and that goes back to your point earlier of what it means for the attempt to change

the allocation of resources, which in the past has not been effective. there's enough room in terms of policies to support short-term growth which is faltering, for independent reasons. if a brewing trade war leads to hidden growth, they can manage that. they use the traditional , that could have longer-term consequences in terms of preventing the restructuring of the financial system and economy they are aiming towards and it creates even more financial system risks. i think beijing is going to hold back on his ammunition unless growth really starts ticket ahead, and so for that has not happened, but it could very well if the trade tensions escalate. haidi: is there a risky moment for china? don't worry so much

because china has enough maneuvering room to avoid a full-scale meltdown of the financial system. but are there in on this risks that continue to build up? certainly there are some positive signs. the rate of growth relative to gdp has leveled off. there is some attempt to deal with the problem of bad loans in the banking system, but the realities of the allocation of credit over the last couple of years has not been great. the fundamental problems, the incentives on the financial rather than the more productive and dynamic parts of the economy that can generate more output and employment, that fundamental problem has not been solved, and without fixing that, it's hard to see china growing in a balanced and sensible way. haidi: professor, always great to have you. tomorrow, don't miss our

interview with entrées trade minister. check ont a quick the latest business flash headlines. tesla fell the most in march, models made in california. this erase where the top in the notes the market value, dropping tesla behind general motors once again. tesla has suspended production of the model three and orders for the car are also slightly down. haidi: shares in the big three u.s. airlines fell after they were cut by deutsche bank analyst michael bloomberg. they cited heightened geopolitical macro risk along with the lack of midterm capital. the trade dispute may become an

issue for airlines topline growth. barnes & noble has fired its ceo for violation of company policy, saying he will leave without a severance package. the bookstore declined to say exactly why he has been dismissed, but affirms it as nothing to do with the company's financial reporting, neither with any potential fraud. he became ceo just in april of last year. the stock has fallen more than 30% in that time. macroncoming at next, finds itself in hot water with the sales been in china, just the latest aspect are seeing in these trade tensions between the u.s. as the countdown continues toward that limitation of tariffs on friday. let's take a look at how were setting up in terms of the asian open. u.s. stocks giving up those earlier gains as we get into this public holiday, light volumes we are seeing there.

very mixed going into asia. trading to the downside about .3%. a beautiful day there in wellington in new zealand. plenty more to come. this is bloomberg. ♪

haidi: it's 8:30 a.m. here in sydney, markets open in about 90 minutes time, here's how we're tracking, futures looking negative. we saw u.s. markets giving up those earlier gains. >> it's 6:30 p.m. in new york, you're watching "day break australia." let's get the first word with jessica somers. not deploy y will trade contracts in the u.s. he said the currency will be kept at a reasonable and alanced level.

z.t.e. has been handed a lifeline. it's being allowed to resume business in the u.s. at least temporarily. we're told it can operate until the beginning of august. that because washington waives a ban due to national security concerns. micron technologies says it won't comment on a chinese court ruling that temporarily bans sales until it's served with an njunction. they that micron shares plunged as much as 8%. t sighed -- sued u.m.c. last

year. india blocks crip toe currencies when they refuse -- when the court refused to overturn .b.i.'s ban. bitcoin and other crip toe currencies can't be counted as currency under the existing law, they must be made of metal and stamped by the government. this is bloomberg. haidi: let's get a quick update on your market as we head into the open of trading in asia. trading in new zealand looking tepid, up .3% in early morning trading. data coming through from new zealand the lowest in eight months. going into the sydney open, a bit of weakness. the aussie dollar unchanged

after falling for the week. getting a little support as we heard from the governor sthage wouldn't be using it as a weapon in the trade war providing quite a bit of support across emerging markets and commodities related currencies. again at 110.53. looking at safe haven demand given the reaction in ghold overnight and sterling seeing an upside 1.3191. we had that hiccup in u.s. bond yield and treasure tri--- treasuries, up by .5%. broad based selling as we head into the day of closure for the independence day holiday in the u.s. trading gets under way in asia. what's the sense as we look at the hong kong markets? >> i feel like a bit of a broken record talking about chinese

markets again but it is where the action is at the moment. we can't ignore it. to take a look at hong kong and look at some of the valuation opportunities starting to present ourselves is an exercise. nugtv library here, valuations down to a two-year low you'll see a number of pressures hitting the local market. there's the ramping up of tightening in monetary policy in the u.s. by the federal reserve. there's a slide in the yuan in china itself. and also there's been a lot of selling in the tech sector in some of the big chinese name that was done very well over the last few years and months. so you've got quite a few things coming in and kind of kicking the market down at the same time. on top of that you've got a lot of i.p.o.'s and new issuance of shares, plenty of downward pressure on top they have domestic concerns in china

itself. concerns around the currency of course. and sentiment is just very, very fragile. plenty of people are dialing back a little bit there. over the next 12 months. valuations when you get to these kinds of extremes, the 5% discount or so to the five-year average that certainly are few bottom fishers that will come back in and start to snap a few of these things back up. decent rally into the crose yesterday in chinese markets so all eyes on the open today to see how we get going. >> here in the u.s. stock market i know you've been looking at an interesting phenomena in what we're trading at the start of the day and the oached the day. what's the selling and why does it matter? adam: ramy, this is about what happens in the first 30 minutes of trading in u.s. equities an what happens in the final 30 minutes. and the so-called smart money flow index we have here on the terminal. have a look at the chart.

this is capturing trading in the 30 minutes relative to the final 30 minutes on that white line. it's showing massive amounts of afternoon selling pressure that's coming through in u.s. equities. that white line itself that smart money flow is off 25% off those peaks that we saw for the s&p 500 back in january. so it's clearly an indication that at least some people be they smart or otherwise, in the final kind of hour or so of trading are putting the brakes on encuveraging a lot more selling. it may be a precursor to a further down trend in the market over the next few months. it's tricky to use it as a predictive indicator. it has a mixed path of being able to kind of be used that way in terms of prodicting what's going to happen next. it's interesting to see in the afternoon at least you're

getting hit by waves of selling n u.s. stocks. ramy: don't forget to check out our bloomberg gtv librarien the bloomberg terminal. micron technology is slumping after reports that sales of its chips have been temporarily banned in china. rival says it cuts them off from the market. how did this dispute really come about here? matt: this news is a couple of years old, the most recent chapter unfolded today. it started out as a trade secret theft case, micron alleging employees of u.m.c. in prior lives at different corporations got away with some designs and manufacturing technologies. took those over to u.m.c.

mike ron filed suit. in january of 2018, u.m.c. retaliated with a patent infringement suit filed in china. which is known as a fast paced court to litigate pat ens. this the most recent development in a larger intellectual property battle across asia. haidi: is it unusual for a chinese court to be blocking product sales? matt: unusual but not unheard of. over the past couple of years, preliminary injunctions are granted in about 1% of cases but that being said, they're granted about three quarts of the time when they're sought. some of the statistics are a little fuzzy. it's difficult to parse out exactly what's going on in chinese courts, there's not as much transparency as there is in u.s. or other litigation but it's fairly rare, typically court wills issue early injunctions when they think the case is good or when they think there's some kind of irreparable

harm. that being said, kind of reading the tea leaves, it's certainly from a litigation standpoint, not a great signal to micron. they have some avenues where they can attempt to push back. it's not necessarily all that rare but it's certainly a bad sign if you're defending a patent infringement suit and the court grants a repreliminary injunction against your sales and products. >> for investors what's at stake for micron? matt: micron sales are about 50% from china. rougherly $10 billion. the products at issue are a subset of those. there are certain memory chips that are at issue here. some of their d-ram chips. but it's not the full china sales but we're still looking at a significant portion of their hinese business. mike ron says they have yet to -- micron says they have yet to receive the order.

once that's provided there'll be clarity as to which products are facing injunction. and consequently what that means for outlooks and sales impact. haidi: what happens next, then, matt? how does this play out? matt: as i mentioned, this is a preliminary injunction. the case is still proceeding. micron will have the ability to appeal to the court or try to defend its case in the ongoing litigation. they can try to have the ban overturned. depending on what's in the ban, what products are impacted, they may have the opportunity to implement some design around or try to shift potentially some inventories around but essentially what's next is micron will fight back against this injunction and try to seek other avenues so any sales impact or inventory impacts are minimal.

haidi: matt, appreciate your time for us now. bloomberg intelligence analyst. also breaking news wherever you are, we've teamed up with twitter to launch tictoc, offering live video coverage and updated top news reports verified by us at bloomberg. if you're on twitter, follow@tictoc. ramy: up next, oil rises, and with trade tensions running high. we'll get the energy market outlook. this is bloomberg. ♪

aidi: i'm haidi lun in sydney. ramy: airlines will restructure operations to make itself more agile. tony douglas gave bloomberg his first tv interview and discussed

trade wars, open skies and how to become an airline of choice. >> first of all, six months ago, an opportunity to come back to my second home, an absolute privilege to be involved in incredible grant in a wonderful industry with a remarkable mandate. so it's been six months that's almost flown by like it was six minutes. it's been a whirlwind of excitement. it is a transformation program. and of course all transformations assume clarity where one is trying to get. to and the wisdom of the leader hipp here always gives that clarity and for us it's about having sustainable airline that can deliver outstanding service delivery. i think we've already got the second part of that mandate, but

we can all see we've got a lot of work still to do on the commercial sustainability. this transformation program is about making sure that we've got pace, we've got urgency, and we've got excitement in elivering on that. aidi: that's tony douglas of etihad speaking to us exclusively on bloomberg. traders refeign train from pricing at the head of the july 4 holiday. the pricing hit 75 bucks for the irst time in months. we've got the founder here rm. if you look at the price action we've seen overnight was this a reaction to a pearing back a bit for the public holiday in the u.s.? >> hi, haidi. so right now, traders in the oil markets have a lot to take in

and as you mentioned of course the weekly statistics out of the u.s. are always a driving factor but this time it's a little complicated because of the july 4 holiday. overall i think the market is still quite nervous. -- of the u.s. trying to, attempting to follow a policy on iran, there's a big fear right now about potentially all of ian ran -- iranian crude exports disappearing from the market on the fourth quarter. on the other hand, opec and nonopec doing their best to put more supply into the market. within that, i think overall the net sentiment still remains bullish. haidi: if you take a look at the plan to injection an additional one million barrels, does that take the market into some sort of equilibrium? >> the one million barrels per

day came after first of all a lot of internal conflict within opec. so again let us remember iran and a few others within opec, vens way lark iraq, and syria included, are against theaven one million barrels per day hike. the saw key, the russians, a few arab neighbors of saudi arabia that are capable of increasing output are probably going to be a bit cautious. the other thing to bear in mind is that you compare the one million barrels per day if they indeed -- it's going to take time for them to put that into the market and on the other hand look at libya and canada, just these two unforeseen outages alone in the last couple of weeks have taken nearly 1.4 million barrels per day out of the market. u have the market looking at production in venezuela, nearly 900,000 to one million barrels

lower. problems in mexico, problems in angola. overall, the consensus of the market is that the one million barrels per day when it does come into the market, the additional supply, is not going to be anywhere near enough. especially to counter a drastic drop in iranian crude exports. ramy: i want you to weigh in on this chart i've got. the blue line is crude oil's net longs that are reduced. meantime of course we see crude oil futures rising, that 4 handle there. it seems like at least investors are going the wrong way when you're saying that things are bullish looking ahead for oil. what would you say to this and why are they going this way if you could give us some analysis by looking that the bloomberg chart? >> yes, i do follow pretty closely on the market about what

speculators are doing on the futures and it's been interesting over the past several weeks, they have -- they seem to have gone in quite the opposite direction from prices when prices were rising around, you know, trump announced withdrawal from the iranian deal and for several weeks they were -- prices were rising and they were actually reducing, cutting back their bullish bets and the opposite happened in recent weaks. speculators are always trying to stay two or three steps ahead of the market and you know, i wouldn't venture to guess exactly what they're seeing at this moment but i wouldn't go right now on one or two weeks of speculators have done. i think overall if you were to argue that opec-nonopec are going to put supply into the market, maybe demand growth is not going to be as robust as had

been expected, you could thesely argue a case to be a little bit bearish on oil prices right now. the consensus right now remains bullish. unless of course through some miracle iran and the u.s. deal decide to sit at the table and negotiate. that's always a possibility, right? all of it goes pretty bearish but not right now. ramy: i see you smiling just a little bit, so maybe not likely from your perspective there. >> i don't think so. ramy: let's say we push this to the end of the year, what's your forecast for crude? >> i don't make forecasts but i can tell you and i've seen a lot of upward revisions in price forecasts in recent weeks. $70 to $80 is what i have been saying. i would like to stick to that. you ask me why not about 80. i do think peck and especially

the saudis have come under a lot of pressure, not just from trump but a lot of their very prized customers in asia. india, china, south korea, everybody leaning on them to put more oil in the mark, to alleviate the supply side mess to bring prices down. $80 is a threshold for a lot of eamericaing economies. a lot of producers don't want to risk prices being so high that it pulls back the demand growth they have seen. difeel opec and nonopec will do everything they can to prevent them from going about 80. i think 70 is the floor they'll try to defend no matter what. ramy: very quickly, how come we haven't heard about an end to current opec supply curves? >> good question. if you look at it, the bay it stands today, the november, 2016, opec-nonopec deal is dead.

that's writing on the wall. the saudis are pumping as much as they can. there are reports that they may go up to 11 million barrels per day, something they've never done. never tested. and then of course way above the ceiling they agreed. the russians wanting to put back the 300,000 barrels per day they took out of the market. and you have on the other hand iran still insisting that the agreement on the 22nd of june in vienna was that they'll stick to the target, the ceiling that was agree. so you have major opec-nonpeck producers not even seeing eye to eye on what the deal is anymore. they're going to be very, very careful calling it that. they dent want to turn it into a bearish downturn all of a sudden. ramy: caution to the wind for many people. hari.

president trump is speaking in white sulfur springs in west virginia at the salute to service dinner. you're watching live pictures right now. subscribers can watch at livego. you'll also find the big diary entries coming up today as well as later this week. along with some of the events you may have missed urlier. this is bloomberg. ♪

haidi: england has won its first world cup knockout match since 2006 sending colombia packing nd setting up a quarter final. bscribers can keep up at wcupgo. and you can see how your picks are faring against your colleagues and competitors and our own anchors. ramy: let's god a check of

headlines. shares jumped in new york after an upgrade from oppenheimer. rapid adoption of the roku channel is providing an avenue into $66 billion in linear tv and over the top advertising. onen highlight rn -- oppenheimer's $50 price target matches needham's street high. investor expected payouts, the government holds a possible veto, boeing says negotiations remain productive and are moving ahead. embraer has declined to comment. ramy: tada group is talking about integrating food and other business into one company. it's part of the company to simplify that group that

includes 100 operating companies. ey may separate tata chemicals, salt, and others and beverages.nto tata haidi: that's it for us. >> we saw a verbal commitment saying, look, it's not just externality we're seeing when it comes to that. the banking group ahead of asia resource. hands off taking a approach. for any kind of sustained turn around he needs to see an easing of trade tensions. >> an hour after that we'll dive more into what's happening into the u.s.-china trade spat, that's with alex capri and senior visiting fellow.

haidi: the countdown to tariffs being rolled out and under way. "daybreak: australia" with yvonne and ramy. this is bloomberg. ♪

yvonne: it is 7:00 a.m. here in hong kong. welcome to "day break asia." asia pacific markets headed for declines after wall street gains fizzled out. investors remain worried about tariffs. the dollar pulls back after the pboc repeats the pledge not to use the yen as a weapon in a trade war with with the u.s. ramy: and from bloomberg's global headquarters, i'm ramy in new york where it's just past 7:00 p.m. lawmakers weigh the seven-year ban. malaysia's missing money.