♪ >> lowering some of trade tensions in china, saying it will not fire some of the first shots. beijing says they will wait to see what washington does. >> president trump renewed his attack on opec. he says the cartel is driving prices higher and prices must come down immediately. >> coal is king in australia. at $58e with total value billion australian over the next year. >> in tech, ibm signs a deal to

turn australia's government into a top three digital institution over the next five years. haidi: from sydney, just past 8:00 a.m., this is "bloomberg daybreak: australia." i'm haidi lun. >> just past 6:00 p.m. here in new york. i am remy inocencio. theill be looking at how action here in the u.s. and around the states will beep playing into the asia-pacific trading day. here, the markets are closed because of the july 4 holiday. it is america's 242nd birthday. people are eating hotdogs. but things are moving in terms of currencies and commodities. we will get to those very quickly. as you can see, close here. there is some movement in futures trading. let's flip up the board and show you what's happening. the dow futures right now,

looking up by about a 10th of a percent. s futures up by a third. nasdaq futures, interestingly headed south. the bloomberg dollars but is just about flat. mind you, this is in very load volume trading because most everyone is on holiday. well-deserved holiday, you could say, after the andtility in recent days weeks. with no trading in the u.s. because of the independence day holiday, a strong lead into the asian session. early session in new zealand just getting underway. a little bit of a mixed picture. quarter of 1% lower for keeley stocks. -- kiwi stocks. the aussie dollar after that jumped above 74 u.s. cents, numbers better than expected.

national australia bank saying this will reduce volatility in yuan trading is helpful, but it will come down on whether the tariffs are implemented friday. speaking of the yuan, a second day of support for offshore yuan in particular with reassuring comments from the pboc, saying they will not be weaponize in currency, despite one report suggesting that the pboc would still be comfortable with a softer currency. when it comes to onshore 6.6325. looking at looking at the european session, pretty wishy-washy, light volumes. one report from the ecb suggesting that policymakers are concerned about complacency.investors are not expecting a hike until december 2019. those expectations have sifted somewhat and we thought that rise when it comes to the euro as well. industrial metals suffering

pretty badly in this session, copper in particular, close to an 11 month low trading in london. that will play through when it comes to materials and the mining sector here in australian trading. let's get first word news. reporter: thank you. u.k. police say to my people have been poisoned in southern engine with the nerve agent nova novichok, the same used to poison the former russian spies. they remain critically ill in the hospital. the united states says it is being sidelined as world powers prepared to defend the iran nuclear deal. different powers will meet in the u.k. to "ensure the continued support." iran says it will resume its

nuclear program if the deal is dropped. the policy tightening wave may shilling watch up in bangkok. officials discuss the appropriate timing for a rate hike. and aeft rates at one half percent, but said it was inflation moves within one -- the 1% target range, the case could be made. msci says xiaomi will not be available for inclusion in benchmark because of its controversial structure. the index provider says xiaomi's class a stock offers 10 votes for share, while class c only gets one vote. companies with voting rights are temporarily blocked from the msci indexes. show me is expected to trade in hong kong on monday. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700

journalists and analysts in more than 120 countries. this is bloomberg. ramy: thank you very much. china has said it will not theement tariffs ahead of u.s. on friday, despite a deadline coming hours earlier because of the time zone difference. the finance ministry says it will not fire the first shot. joining us is sarah mcgregor, who leads our economic policy coverage in washington. this is really interesting turn of events. beijing not wanting to do anything here. what do you make of it? reporter: in some ways, it would have been surprising if china had put tariffs into place before the u.s.. -- instigateds this whole issue, they found china was violating intellectual property rights, and this is where the tariffs came about. it was never china's desire to put tariffs in the first place against the u.s. goods.

we don't have exactly a breakdown of when these will go into effect. we don't know if that has been communicated into china yet. i think there was a difference with china being 12 hours ahead. there might have been some confusion. german auto industry leaders are making the case to the trump administration that a trade feud with the u.s. will cause irreparable damage to global business. who are we hearing from? reporter: today, we have heard actually that german automakers met with the u.s. ambassador to germany. i think basically what they are trying to do is find a way to avert auto tariffs. the u.s. is investigating whether auto imports pose a national security risk. that was the same grounds they used to impose steel and aluminum tariffs that hit europe. have a much tariffs deeper impact on the economy and some of these companies. i think there is scrambling

going on to see if europe or the automakers themselves, they can pass some influence with the u.s. administration and try and avert tariffs with a different kind of deal. u.s.: we know that automakers have pleaded their case as well repeatedly. is the president listening? reporter: we don't have an indication yet of where this going.gation is we heard from trump last week that it might take three or four more weeks before he perhaps receives the recommendations from the commerce department, which will determine whether they do auto imports and if they impose a national security list, list theisk, and will actions. the ball would be in president trump scored on what to do. although this investigation under law, this could drag out into early february. a lot depends on the midterms coming up in november, how trump might want to play this politically. some breathings room here for the countries to

make their case. we are going to have to see, will give an update at a press conference at the questions are thrown at him. we have to see what he says the next time he is asked. haidi: thank you. sarah mcgregor, who heads u.s. economic policy coverage in washington. thank you. let's take a look at the escalating trade tensions with the snp global ratings. joins us.wald it is pretty difficult for economists to really model the real economic impact going forward, given the kind of narrative can change from day to day. what is your best case scenario are rolled outs friday? it does not look like we will have any kind of last-minute negotiations to avoid that. >> good morning. i think the best case scenario for us is actually week move away from the trade wars and to a situation where the u.s. and

china have essentially a renewed version of the strategic economic dialogue. we could put bilateral investment on the table. i really don't think the trade is a key issue. the u.s. trade imbalance with china reflects a lot of u.s. savings. if you look at china's surplus, it is less than 2% of gdp. it is unclear from all the stories we are reading what the ultimate objectives are of the u.s. do we want to reduce the bilateral trade deficit with china? do we want to reduce the overall trade deficit, or have a broader discussion? that's not clear right now. for us, the good scenario would be to have a broader based discussion about the trade and investment relationship. haidi: is it more cautious scenario that you continue to start seeing the impact play out when it comes to investment sentiment when it comes to things like the latest china pme gettingggesting you are

companies and factories making decisions based on all of this uncertainty? do you see that flowing through to the asian supply chain and actually damaging some of the trade exposed countries and is part of the world? -- in this part of the world? >> more generally on your first point, right. if we are not clear about the intentions of trade policy, then firms will pull back savings, and confidence drops and we slow down. the sectors that would be most hit in that scenario would obviously be the trading sectors. since we have a lot of relatively open trade dependent economies in this part of the world, they would probably take the biggest hit as a percentage of their gdp. the big guys are more domestically driven, so i think the impact would be relatively less. ramy: interesting. i see it as a balance between -- trade war pessimism and macro economic data pessimism.

. you guys said that it still it still looked healthy for the region recently. for asia, that is right. china's growth looks like it year.e around x .5% this the u.s. will have a short-term boost. we think growth will be close to 3%. to the extent we got the two biggest economies driving demand for the region's outputs, that is a good scenario. we see this ratcheting up other trade tensions, which feeds through to uncertainty. that could put a damper on what otherwise is a pretty good scenario. you are right. the baseline still looks pretty good, but in our view, the risks have risen and shifted to the downside, led by the trade tensions. ramy: i want to push this also into emerging markets. you are on, bloomberg television, talking to us about how investors and discriminating,

and they don't do a blanket pulled down the region like they did in 1997. right now, since it has been about a month, do you still adhere to that? which countries do you think would be the strongest? if you look at the region, it depends i guess which variable you focus on. in 2014, it was a current account deficit in the india and indonesia story as well as turkey, south africa, and brazil. we have seen some currency weakness in the region around 5% against the u.s. dollar plus or have not seen wholesale funding. i don't think we are in a 2013 world at least yet. we have seen some of the central particular,esia in raise rates for the balance of pavements -- payments. still reasonably orderly in the again, wenario, but

are watching the risks and the downside to see how that can unfold. haidi: the recent selloff in and equityin chinese assets, does that derail the road plans? >> i don't think so. i don't want to touch the chinese stock market. i don't have any great insights there. there's a decade-long project. we look at s&p a couple months ago. we looked at regional conductivity. signatureinping's project. i don't think any up and downs in the macro economy in china is going to derail that. i would expect little or no impact on belt and road from the asset market volatility in china. ramy: we are going to take a quick break. economics for the

asia-pacific, paul broun vault -- paul gruenwald. ♪ haidi: still ahead on "bloomberg more withaustralia" paul gruenwald in a moment. why the s&p does not see asia moving in lockstep with the fed. signed a $1ibm just billion deal to turn australia into a top three digital government. we will be joined by the companies asia-pacific head. that's harriet green. this is bloomberg. ♪

haidi: we are counting down to the open of trading here in sydney. not much of a lead with the u.s. markets closed for the fourth of july. pretty tepid in the european

session. a very atmospheric seen from the iconic opera house. 11is very sunny, a crisp degrees on this wintry, strange scene. i'm haidi lun in sydney. ramy: i was going to say mystically romantic, how about that? [laughter] i am ramy inocencio in new york and you are watching "bloomberg daybreak: australia." let's continue with our conversation with paul gruenwald. bee policymakers are said to uneasy that investors are not betting on an interest rate hike 2019.december bloomberg sources say a move in september or october next year is still on the cards. paul, i want you to weigh in on pricing and 80% chance in september versus 69% just prior. what do you make of this? i think we are still a bit away from that. that is over a year. whether it happens in october or

november, september next year, it will be data dependent. we just had a session about all the risk of global economy in the short term, so i'm not sure we can put a ton of weight on the exact timing of the ecb moves. call,s going to be their but i suspect the data are going to move around a lot between now and then. traders are going to respond to that. that number will move around a lot. i think it's probably a little too early, at least from us in the credit shall, to pay to much attention for the fourth quarter of next year. ramy: when i saw that, thought the same thing. at first i thought, are they 2019?that's aor whole year or more to get through. we did see a little bit of movement in the euro, of course. i think about 2/10 of a percent or so. i want you to weigh and a little bit as far as that trajectory. we did see a little bit of movement, and with the u.s. markets, at least this is something to latch onto. currency guys,t

but to the extent the u.s. economy looks strong, at least for the next couple of quarters, we have raised the growth forecast to three this year, and the growth forecast in europe to 2.1%. the growth differential is moving in favor of the u.s., and the rate differential is moving in favor of the u.s. as well. i guess the currency folks would look at that sort of thing and probably point to ongoing dollar strength. .4on't know what our forecast is for the euro-dollar, but based on growth differentials, the u.s. dollar looks to be strong relative to europe. argument that a full-blown trade war actually supports a stronger dollar makes sense to you? um, that's a tricky one, right? because if we go to a world where investors and traders want to do you risk, then -- d

e-risk, then they would go into u.s. treasuries. that is the world global risk-free asset. and 2009 where the financial crisis started in the u.s., that was a big boost to the dollar and treasury prices. i would not necessarily rule that out, unless something changed that moves the markets away from a perception that the u.s. treasury was a risk-free asset. if we go down a risk for -- risk year path, i guess it could help the dollar and help treasuries. haidi: i want to put up this chart. so far, very targeted. a pretty massive arsenal of targeted monetary policy. they haven't done sort of broad-based top end easing for quite some time. the pboc has come out and said just because we cut the rrr in that targeted way doesn't mean we are changing monetary policies. slowdown we are

expecting in china, plus volatility potentially, plus the potential impact of these trade tensions or a trade war, that we are going to see a return to the old playbook for beijing in terms of stimulus and therefore that derail the reform agenda? lot on its has a plate right now. even before the trade stuff started, there was a view that the economy needed to de-lever. our view is at that point it is a slower growth. we have seen pretty good progress, to be honest, slowing down credit growth, slowing down the growth of second balance sheets or off balance sheets credits. we have interbank lending. the quantum of that is declining. fixed stocks and investments, growth declining as well. it is a bit of a mystery why the chinese gdp growth rate has not fallen a bit more. if you lay on top of that all the trade tensions, that should

cause some worries for beijing. rrr, westion on the really see that not so much as a monetary stimulus, but it is actually making room on the bank balance sheets for bringing in some of this off-balance-sheet stuff that is causing some worries over the past five or seven years. as china moves toward a more traditional model getting rid of sheets,nd balance wealth management products, and bringing that stuff onto the main balance sheets, the banks need room to absorb that. that is our interpretation of the rrr cut. you are right the chinese authorities do have ammunition, if we get into a more serious slowdown, but i don't think we are in that scenario yet. have growthing to go lower. we have 6.5% lower for china this year. movementot seen much in the headline gdp numbers, so that is something we'll will be

watching in the coming quarters to see if a reduction would line up with slower credit growth and slower investment growth in the short-term indicators. haidi: we appreciate you joining us so early this morning, s and p global chief economist of the asia-pacific, paul grunfeld out of tokyo. recentr, you can browse charts featured on bloomberg tv to catch up on key analysis and save those charts to your future reference. this is bloomberg. ♪

ramy: i am ramy inocencio in new york. haidi: and i'm haidi lun in sydney. you are watching "bloomberg daybreak: australia." let's get you a quick check of the latest business flash headlines. --tralia's real taylor retailer woolworths is running a sale of its petrol stations business to a glass month, they scrapped a proposed one point $3 billion takeover because regulations said they were

opposed to reducing competition. there's a new alliance with the retailer including a 15 year steel supply deal. will work shares hit a three-year high on wednesday. to have givenaid itself two years to decide on a possible merger or an alternative way of enhancing a relationship. sources say they want an agreement before carlos ghosn's steps down in 2022.the options include setting up a holding company between them as well the two companies as a single stock. is a: jp morgan says now golden time to buy property stocks in china because the market is overreacting to recent negative headlines. the evaluations is nearing a historical trump at about 5.5 times forward earnings, when industry fundamentals were worse. the yuan was weaker in 2011 through 2014, and 2016. coming up, lizette to

topple iron ore from the top of the australian exports charts. -- coal is set to topple iron ore from the top of the australian exports charts. this is bloomberg. ♪ what's a gig of data?

well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. haidi: it is a: 30 a.m. here.

markets open in 90 minutes. we could see a little bit of upside as we get into the open. we closed a little bit lower yesterday. we are looking at up partially shrouded sydney opera house. very mysterious there. haidi: i am in new york -- ramy: i am in new york. it is 6:30 a.m.. let's get the first word news now. >> china says it will not be the first to impose tariffs on friday even though that deadline

arrives in asia 12 hours ahead of the u.s.. the finance industry was responding to media speculation. technically, china could apply soon as the clock hits midnight on friday, but that has been wrote out. leaders of the german auto industry have met with the u.s. ambassador to discuss the fallout of potential tariffs on imported cars. said a trade few would cause in repairable damage to the business around the world. the meeting was aimed at forming a direct link to the trump administration. is speaking out, talking at quebec. he's encouraged that more american companies are raising concerns about white house trade policy and he expects them to have an impact. he doesn't see major fallout yet but remains concerned about inflation and retaliatory

measures. president trump has her new his attack on opec, saying the cartel is driving prices higher in doing little to help. the u.s. depends many of the group members without very much money. oil trading had artie ended in new york. futures gained traction early. global news 24 hours a day. than 2700 more journalists and analysts in more than 120 countries. this is bloomberg. let's get you a quick update on the markets. we had a tepid lead overnight. u.s. markets closed for the fourth of july. the key theme was deciphering that ecb report.

this is how we are setting up. early trading underway in new zealand. a bit of a downside there. theyy futures looking like will perk back up after yesterday's lower close. the reduced selling in yuan could provide some support for the aussie but we are watching for the impact of base -- these trade tariffs if the are implemented. adam haigh is here with us to continue to look at the turmoil and selloff we have seen in the chinese markets. we have not seen outflows towards other markets. is that because the capital controls are still in place? >> in part. we have seen the stabilization in the currency.

given the magnitude of the move we have seen in the last couple of weeks, it has been a surprise it you have not started to see some capital outflows. the key thing is to continue to watch the flow data and the balance of payments going forward. that is one key thing to monitor. if we remind ourselves of our history here, there was a great chart here, i remember going 15 ago, thatck 15 years red circle is when that went away. you had that long. of strength for the chinese currency there. that yellow circle is the 2015 devaluation. no signs this time around of that same kind of capital outflows. that is the key next thing that people want to be keeping their eye on. againgn of that happening , the fact that you would have a spillover from witnessing the

currency and capital outflows, really sets up a number of new problems for authorities there. that is the next thing to watch. the other thing is, what is happening in the auctions market and what we're seeing in terms of risk reversals for u.n. -- yuan-dollar as well. this is not showing any signs of panic in the options market given historical president. if you look back to some of those blue circles that we see in those earlier. whenose earlier periods, you have heightened level of fertility in late currency market, we are not at that level at the moment. make note ofto that given how much things have , the biggest move in the currency since that 2015 move. things looking a bit more stable now. of largere are plenty funds around the world trimming

their exposure to risk year assets. australia's largest pension fund says it will do the same. what are the key concerns here? this is interesting for a number of different reasons. not least because they're telling us something about increasing their equity exposure even before they are going to do it, which is quite rare. the biggest pension fund down here controls 104 billion u.s. dollars, the fact that they are reducing risk is an important point. many people across the equity market will want to be aware of this. they are saying that returns are going to be slightly limited as we get towards the end of the economic growth cycle globally and further into the fed tightening cycle. the amount that they refuse equities by made be influenced if fed timing gets marks colorado -- more accelerated.

if they look to move money into treasuries and cash it, certainly the vast majority of it by the early part of last year. in preparation for a continuation of rising rates. they didn't see that as favorable for bonds. clearly being heavily weighted in equities last year proved to be a good call. haveis chart shows, stocks consolidated after that major run we had in january. has flat lined and traded sideways since then. us trillion super joining a number of big global money managers around the cap -- world. they're getting incrementally more cautious as the cycle gets further on. therefore the potential for returns from equities being brought down a little bit. ramy: with everyone facing the betweenfog of trade war

u.s. and china as well as other countries around the world. very much. don't forget to check out our gtb library for some of the charts you just saw there. that is on the bloomberg terminal. let's go to us trillion exports because they may have a new king, coal has surpassed iron ore. david stringer in melbourne for more. why is australia now forecasting coal to become its top export earner this fiscal year? >> good morning. that is exactly right. it is forecasted that the combined export earnings for are steelmaking and call just going to nudge ahead of iron ore. 58.1are expecting about

australian billion dollars from coal exports. a couple of key factors that may prove temporary rather than permanent. we have seen higher prices for thermal coal. they are expected to continue. they're going to help boost export earnings in the next 12 months. side, iteelmaking coal is a slight creep up in volumes. prices flat to declining. slightly higher volumes. both of those factors boosting up warnings -- earnings. this might tell us more about the iron market than the cold market. key has long been the compartment of australia exports. that market suffering from a move to a weakening in demand in china, the key importer.

volumes are largely stable, small rises. prices are declining. it tells us more about iron or than any revival in cold. -- cold. long-termt is the outlook of australia? government is quite clear, it is a mixed picture in terms of coal. metallurgical coal is suffering from the same issues as iron or. -- ore. we are going to see a weakening there in demand as well as a weakening in prices. thermal coal, earnings are going to be relatively stable. there are flat volumes and slight decline in prices through the next three years. overall, pretty stable market there. it is not the dramatic

resurgence that people have been pointing to. are we seeing any impact on rio? >> not yet. it key thing for rio here -- just emphasizes how critical its relationship with china is. it is also a key shareholder. rio has been doing lots of work and training executives. it is looking for minerals with the -- inside china. it is doing lots of work to smooth that relationship with china. this illustrates tensions between the two of them can be a problem and need to be addressed. haidi: thank you so much. metals mining reporter coming to us out of melvin. thewed turmoil following sudden death of its number two executive.

storye been covering this along with the angst facing most of these conglomerates. what we know about this particular situation? about the fact that this happened in southern france. he was there for business but he had taken a trip to a village and fell 15 feet to his death. what we know is that he was the second most powerful executive in hna group. he had 15% shareholdings. he was number two to the cofounder and cochairman. instrumental in hna group's asset acquisitions over the last few years. spends $40merate billion on everything from financial firms to logistic companies to hotels across the

world. he was leaving the growth of that portfolio. to helping to unwind that following the regulatory pressure that this company came under along with the likes of foes in in the middle of 2017. certainly a key player in hna group. it makes the challenges that this company faces more significant. ramy: it is a tragic story. what impact could this have on their restructuring plans now? >> really, the view is that these plans are back on the table. the company has said that it is continuing to work to ensure that it gets back onto a sustainable footing. because the central role that he about, it raise questions how they start to unwind some of

these positions. this company has $90 billion worth of debt. it has made some progress this year. $40old for to the -- billion. it has reduced its stake and deutsche bank as well. couple of hours, one of its units in singapore has sold off some of their property assets for 730 u.s. dollars. those disposals continue but there are questions around ownership of this company, that some of the investment banks stopping doing business, suspending business deals. those questions continue. there are seven listed firms here in china that fall under the age in a umbrella that remain suspended. that theyve news is launched a bond sale in june for the first time in five months.

suggesting that they do now have access to some credit. that topeported leaders in china are supporting the company. it may not face the same fate as another that was taken over by the state. this makes it a more complex situation. it is a tragedy for the family and colleagues. ramy: our china correspondent there in beijing. the latest after the death of hna's second-in-command. up, $740 million i.t. deal with the us trillion government. the first agreement of its kind for the company. the agency head joins us next. this is bloomberg. ♪

haidi: i'm in sydney. ramy: i'm in new york. you are watching daybreak australia.

we have an interesting chart to show you from our bloomberg new colleagues, about the world's biggest lithium ion battery. take a look at this. you are seeing the revenue that is coming out of this battery, built by tesla, in less than 100 days. you can see where most of the money comes from. ancillary services. this battery made money even when it wasn't even doing anything, it was idle. and made more than 8 million aussie dollars. is interesting to see the future of sustainability in the future of keeping batteries on hand, especially in this region or in similar regions, in terms of where they have unreliable sources of energy. one interesting number that i

want to share with you, it contributed to a 73% fall in cost for these kinds of ancillary services. it also shows that it can be cheaper and competitive with more traditional sources of energy out there. it started with one of these things that seemed a bit crazy. a lot of the themes -- things that elon musk it does. he said he can fix south australia's power problems, which are well-documented. in the past, we have had blackouts, simply not enough power to go around. postnl prices going above the maximum allowed market. hopefully this is a step in the right direction. those are very impressive numbers. the us trillion government has made a deal with ibm to supply software across its entire bureaucracy for five years.

harriet green joins us. give us the details of this deal and how exactly ibm is planning to help the us trillion government, how that relationship is going to work. this is a billion-dollar deal, over five years, starting on thursday. it really enables citizens across the commonwealth to have access across multiple agencies, many government agencies, to the technology that they need. those new technologies across ai, blockchain, a lot of this on security, all of saves the us trillion government money, over $100 million, and puts them into the top three of digital governments in the world. it is quite significant. haidi: it is a return to the

good books after a fall from grace. agreement to pay $30 million in compensation after that the prime ministers saying the failure was overwhelmingly that of ibm's. has the company managed to convince the government to give them another try? you can see by the scale and significance, working threat the government, the confidence in both ibm's investments in australia, the research and development, the innovation counsel we have set up, the dedicated developers and researchers that will work on security in the data security of millions of australians. these other types of innovations and investments that are important to the us trillion government. harriet, how do you think that the regular aussie might

construe this? especially when, recently, trying to watch some of their favorite sports matches on air, they cannot even get that. there were four distributed denial of service attacks two. what you think all these feel aussies feel about this? the use of this technology to benefit australian citizens is at the core of this digital transformation agency that the us trillion government set up. australian government set up. it is a more effective way of entering the country, movements around the country, taxation, all of the major agencies are pledging a much more paperless future. and the security of australian

citizens data. a greater level of stewardship and respect will have researchers and developers future on ensuring security, as well as making available some of the most amazing breakthroughs they heard being talked about with the american government in supercomputing to help the us trillion government with the , whether it of data is energy, some of the things you were just talking about, to enable them through quantum, through supercomputing in the future. it is a journey which starts on thursday. it is costing less, significantly less, and enabling access to the world's greatest technologies and people in australia. great stuff.

we will look ahead to see how that develops. hair green, ibm asia-pacific head. a quick check of the latest business flash headlines now. more than $14 billion worth of electronic shares are about to hit the south korean market. lawmakers seek to restrict the control that families exert over their business empires. life insurance is facing pressure to share its holding as the president pushes a bill that bans insurance firms from having a stake in an affiliate worth more than 3% of its assets. says thell browder banks used in australia was used to steal a billion dollars. denmark's biggest blunder was for failingby late to watch for money laundering but managed to avoid prosecution. ramy: the brazilian government

has signed off the next steps of a joint venture with boeing. shares soared as much as 8% as soon as the newspaper said details on the company would be finalized in the next few days. the report says boeing would have 80% of that new company. taking a look at what we are watching over the next few hours. >> talking about market volatility with a pretty big guest here today. ceorgan asset management joining us, talking about what is sick, as the countdown to july 6 where these tariffs could be implemented at the u.s., will beijing retaliate? what will it mean for business? they have been planning to take a majority stake in a current

venture in china. does it disrupt their plans in the country? before that, we are going to be speaking more on what is happening with the current trade tensions as will a central banks. we are going to go everywhere with deutsche bank chief international economist, he is coming up at the top of the hour. he says he is very optimistic about the u.s. economy. we have to factor in the fog of trade war rising between the united states as well as china. china is facing both internal issues as well as those external issues. we are going to ask him what his thoughts are on all of that and more. thei: also sticking to trade theme, we will watch the countdown to these tariffs. beijing says it will start -- wait for washington.

we're speaking to australia's investment manager. to talk us exclusively through the implications of these trade exposed, honorable .ountries how companies in this part of this world should be positioning from a potential trade war. he joins us from tokyo. he is been talking about this global trade agreements. he will save part of the negotiations. we be talking about the future as it comes to multilateral trade. would you have the u.s. withdrawing or threatening to withdraw from all of the major institutions and trade deals globally? lots to talk about with the us trillion trade minister. that is about it for us. we are looking for the next few hours. pretty quiet, tepid start when it comes to asian trading.

u.s. markets are closed as they celebrate july 4. upside as the fog starts to clear across the sydney harbour bridge. this is bloomberg. ♪ retail.

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yvonne: we are live from the asia headquarters. welcome to "daybreak: asia." markets with the fourth of july holiday. of the tradeo some tensions saying it will not fire the first care of shot -- tariff shot. ramy: it is just past 7:00 on wednesday. cartel is driving oil higher and prices must come down in nearly.