extrallion today and $16 billion in two weeks. china says it doesn't want to retaliating inbe kind. mindset ofar washington. president trump has confirmed u.s. will be imposing those tariffs on chinese imports. you see there bottom of the screen. ticking past midnight on the eastern seaboard of the united states. be imposing $34 billion worth of product and into chinese land. the president said extra $16 billion worry of tariffs will come. us, us,ve been killing $507 billion in trade deficits last year. hell can lose. you want to do something about it, you get attacked. that's not nice. that's not trade. the war was lost on trade many

years ago. no, the war was lost. now we're going to win it. cars.e all the david: the idea that chinese goods threat. shows washington cold war mind set. let's get a sense what the time.s are there tokyo is shut. but this is the broader read. equity benchmark middle of the screen. yet to open up and give you a sense -- australia continues to perform. have lost some momentum when you look at the benchmarks. japan into the break entering the last 60 minutes in hong kong. as wellsing little bit there. here when yould look at cross markets here this friday. sydney.en is with us in

>> thanks. continuet policymakers hikes.tain gradual rate risksw escalating trade is potential threat to growth. remaining near the 2% term.e medium saudi arabia cut pricing for oil production.raise oil extended losses after a low most crude in asia in europe and cut them all the u.s. president trump renewed his attack on apec. oilng they are keeping prices high. trump administration have lost another leading figure. scott pruitt quit the environmental protection agency after revelation about overspending. 170 democrats and four

republicans had called for his he faces allegations of abuse of power. pruitt is the subject at least a dozen formal investigations over frequent travel to his home decisions atnding the epa. electronics lowering after posting 2nd quarter short on weakfell demands on smartphone. $32.2 billion. half bett billion below analyst estimates. growth in chip prices have been slowing. global news 24 hours a day and tictoc on twitter and powered by 2700 journalist and i'm paul allen. this is bloomberg. david: thank you. fromunder an hour away those u.s. tariffs kicking in on china. jodie schneider is with us here.

editor. talk about what's next. >> this first round is going to hour.ffect in about an the u.s. made it clear after midnight their time, which is kong, thatn hong $34 billion in the first round of tariffs will take effect. will retaliateit and made it clear it will come back dollar for dollar. that's first round. congress is telling us, those are modest impact on the economies of these two huge economies. however, president trump has go ahead two weeks with another $16 billion in tariff. will go back again. companies are concerned about , tariffs and this spreading. trump famously someone who sometimes steps back from

in as and he may well second round go ahead and do that. he's getting lot of pressure in companies like g.e. and national retail chamber ofand u.s. commerce. not to allow this to spread further. about theorried effect on companies and consumers if this escalates further. retaliation. of david: i guess lot of that will respond. how china -- you see bottom of your screen. looking at some lines here. revisiting perhaps the option raising prices on the chinese. theree ford and lincoln still looking at it. but not quite yet there in terms it on to their customers on the chinese -- biggerakes me to the question. tom, what sort of response do we from the chinese?

whatmediate response is they have told us about $34 billion worth of imports u.s.the well.ns also, pork as we've got these tankers terminal.on the soybean imports in china have slowed. china is taking moves to open up sector here. tariffs enact these 25% on imported cars from the u.s. the lincoln is one of those cars steady large number, exported from the u.s. market. numbers. the china said if trump would enact those $16 billion of additional tariffs, he said in two weeks they will match that. it come down to looking beyond just today to how the two sides square up after initial first tariffs.

david: jodie, 34 billion dollars today, possibly $16 billion. two weeks?p saying >> yes. weeks we'll bewo talking about more of this tariffs. lot ofhe's getting pressure not to do that including from members of his own party. about political fallout in midterm election year. the soybeans tom was saying, way down prices come in anticipation what will go on with the trade tension. if thisa lot of worry spread that this could have political fallout and the lawmakers could be in .isk of losing some seats we start seeing consumers being affected. we haven't seen that yet. that will come obviously on the auto side. hopefullysome point, we don't get to that point, the chinese will run out of options

the trade front in terms of coming up with options to respond. we get themt do looking inward and making it more difficult and challenging companies to do business where you are? >> there's been some signs that's happening around the edge. it may not be directed from a central top leadership at this stage. reportsve been some we've had some companies in the of commerce that deals are going away from u.s. companies and moving towards counterparts and competitors. up if trump goes ahead with that threat, of tariffs. worth u.s.is a deep concern for companies operating here in chinaof the steps that may take.

measures can be curtail the business operations. david: we'll see what happens here. angles and possibility as well following what we are lessting to come in just than hour there. talk more about the implications here on the market. have you.sure to worried? >> no. not -- economic forget perspective not worried. not particularly concerned from a growth perspective,

a substantialis impact from a market sentiment side. focused now, david, a the signs and evidence of reacceleration in global growth. pmi's andt in china pmi's and u.k. david: we have seen very small severalat whether it's car makers they starting to wonder if they will start slashing. is that something you see meaningfully? >> we're looking at eps growth for the u.s. for this quarter. we are seeing expectations and 24 percent. at least from a u.s. earnings picture lookse very strong indeed.

if this to metastasize in terms migration or an escalation from $50 million to off.million, all bets are the dispute becomes lot larger. tend to the view that clearly a relationship between presidential approval polls and dispute.romoting this i suspect also, once it starts to bite domestic level, there be a clear move to back away and negotiate. the general trump strategy seems to push as hard get. can when you think you have achieved that to back off. that's what we'll probably see now. otherwise, there's a clear path to destruction. going toee how that's benefit him in the midterms.

david: which are coming up of course. john, is sticking around. wood get more from john from credit swiss. where to put your money. data.unpack all that speaking of, we're looking at morning.his fairly sluggish smartphone sales. at the a closer look struggles world's largest chip maker. than an hour, president trump's tariffs deadlines we're investorso old global ofut rethinking the role gold. ♪

david: twenty minutes away on the chinese. 1.5% down on the shanghai composite. aree those people who

in.ng 3000 they would step ly.y have come out vocal we go from here. withwood is still with us credit suisse. we'll get the chart up which perhaps what some people call another warning here for emerging market. it's bloomberg economic credit impulse. the bottom is actually the panel.in the top which some people sigh when you look at this, it might be really bad. you're saying we should be expecting the opposite? think the latest comments from the pboc, particularly as relates to monetary policy easing on thee austerity that we've seen over quarters.ouple of

there was indications from these comments that perhaps leveraging have achieved its initial goals. some stability might be expected. i don't expect them to substantially ease. tightenthink they will material. we're get into period credit the time in china for being. i think that's reflected in well.as thesis is growth. seenr example, we've in growth.ershoot within the detail it eachs that overshot.s possibly undershot.opeans are we've seen some mean reversion. europeanle anticipate growth will accelerate and the u.s. will remain reasonably

moderating iny the 4th quarter. foroverall story is reacceleration in global growth. pmi's.eeing it in the david: where do you look if more traction on that? do i look to china for the or can you drive for pmi. oni will be more focused europe. toentum is starting accelerate. clearly this has a profound impact on monetary policy and andess rate expectations the ecb. the ecb has been trying to guide the market to anticipate a rate hike in september. that so farhey do away? >> it has a profound impact on the interest rate expectations as relates to euro and dollar. at the moment the market not

at all or pricing in at least. at credit suisse we were rateipating two interest hikes in 2019. this will play into a stronger euro story and conversely weaker dollar. david: one trade everyone is european sovereigns. >> we need to follow the flow. pmi's.ave a look at the that point, i absolutely start to think we'll have to repricing the european growth story. >> in terms of my option now, if looking for entries back into the market, where should i

start looking? >> certainly i anticipate volatility for as long as uncertainty and discussion wars continues. frankly over the typically of july ands august, we tend to see little volatility than normal. because the market essentially on holiday. i do suspect there's some eight weeksthe next as reflects of volatility. the market will be different. evaluations are back to levels saw at the end of 2015-2016. cheap.tremely to theee a resolution and uptickin china, in global acceleration, risk

appetite will change. david: hopefully. it does. how much lower can we go? thank you so much. john wood with credit suisse cio. check of theck headlines. let's get update on this company. it named 20 year veteran as the new leader. he was most recently in charge of the companies wireless network. he will be replacing him. demandedn had management shake up as part of dropping. all right, pack your bags. german, spanish and french. is askingn chase dozen employees to relocate.

you seen it. the investment bank will begin year. later this j.p. morgan has about 10,000 workers in london and operations paris and frankfurt locations.other quits.er if you're one of our clients catch up on all the interviews you missed here. the function for that. bottom left of your screen. check it out, tv go.

bloomberg. ♪

david: let's have a look at oil. prices fell to their lowest in weeks following prices in u.s. stockpile. saudi arabia also lowering for all crude in the u.s. day after president opec to bring down. mean?oes that >> it's a threat that iran has with conflicts around iraq. since they've made few efforts it.lose iraq, kuwait, saudi

arabia. -- these come through the it's -- there are limited options to buy assets. saudi arabia does have pipelines. hypothetically if it was to be shock to thel be market. it never has been closed. the is putting that on table with a possibility. david: there have been threats in the past. if we've seen taunts though from iran. >> that's right. it's something new. saying that through trump and his tweets, he's the oil driving up price. they asked him to stop. was an interesting -- the part there, trump directly the possibility of iranian supplies being capped

come out november. the background of significant option. we've got canada, libya and venezuela. a tight market. oil.arket needs more david: ben, thank you. sharples. i got a quick check of markets. start things off here in sydney. that market continues to provides equity market. that's a market you look at there. singapore have a look at the that equities are taking in. down to thecomes prize inflow. announcement of cooling measures market.roperty index here in hong kong, we're not exactly doing very well as well. for another weekly drop

percent.one tokyo comes on line in a few minute. do get trade tariffs kicking in. ♪.

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off, and free shipping, too. go to buyleesa.com today. you need >> it's 11:29 in hong kong and singapore. allen.l president trump confirmed u.s. tariffs on chinese imports. duties will be imposed about $34 billion worth of products the next tra $16 million weeks.me in two china has confirmed support for the iran nuclear deal. saying those states involved have an obligation to keep it in place. meeting inead of a vienna, the accord was treaty and its collapse will hurt chances of

ande in the middle east damage the cent of the world order. u.s. pulled out of the deal in may. deal is an international multilateral treaty. that's all with treaty states obligate to ensure survival. hurt the interest of iran and it damages peace in the middle east and credibility of the international world order. >> former navy seal died during rescue 12 boys and soccer coach. the oof air. teams trying to pump enough rescue the boys. him.ese have executed the leader of a doomsday cult killed 12 people.

thousands more people fell ill the attack. he was sentenced it hang for at least 27 murders carried out by founded.that he nhk said seven cult members have executed today. global news 24 hours a day and and more thanter 120 countries i'm paul allen. is bloomberg. david: thank you. here we go. 30 minutes to the deadline. liking to go from here. do have chinese stocks even some of the losses, comp fallen below 2700. chinese stocks are set for

seventh straight week. that will be the longest losing the start of 2012. thishai calmed down three% 13%. main moves. i want to highlight what happening in singapore. 2%.'s down over developers plunge on surprise the property. i want to highlight what's with metal. tohave copper continuing slide. flashing red giving trade. copper very much in the spotlight here. lower in shanghai. i want to show you this chart, weakness of copper in london. we're seeing copper prices down nearly $1000.

june 7th that bring lme copper prices lower. looking overs filled. supply disruptions remain a threat. region.ers in the i want to highlight what's happening in tokyo. the most since 2015. david: thank you so much.

we're back here. have a look. movers right. samsung we're talking about the 2.5%. the driving in the cost, 11.5 points. four point.ng down you sake samsung out, the cost now.d be up herering in sam kim he's toque more -- talk more. causedave a sense what that headline miss from samsung? >> yes. has toying it smartphones not selling enough. they are big enough to make difference between beating the not beating the estimates. galaxy s9 released in the 1st quarter. not selling enough. not doing as well as they

expected. sales to apple have not very strong enough as strong as expected. of this also comes down to their bread and butter. head and shoulders above everyone else. margins theree marginsseem like those are sustainable? that should be their saving grace. >> these for this year p it does sustainable. reason samsung is able to earn every quarters the company the market. there are three majors memory the world. around the -- is democrat definitely the leader here. you seen lot of chinese

inpanies trying to catch up lcd smartphones. they're investing lot of money manufacturing a mass amount of memory chips. theseht be seeing challenges happening in the coming years. we have to keep and eye on how fairs. david: absolutely as well. sam, thank you so much. of kim joining us live out south korea. let's have a lock at the broader earning story. looking good. analyst have been lowering the probablies for countries this world. the we're little bit into that markets.cross some you have escalating trade regional economy. we'll bring up a chart. this is a chart in the story about here.alking you have the s&p 500, you have

the benchmark in europe, you asia. these are changes in eps. dip?re we seeing this >> i really not looking great. reasons tomany choose from out here in asia. it's the trade war is a huge part of it. pmi numbers have been coming in lower than expected as well. there's weaker currency. also mentioned faster than expected rate hikes as well. there's a whole bunch of reasons. analyst are not coming back and estimates and thinking a maybe earnings won't look as great as they did last year or early on this year. david: the other side of this, the chart up again. it's europe. little bit better in the u.s. europe i'm not so convinced. we think? >> i think in europe what is

seem like they have a few things going on. weak offing is -- weakening it helps exporters bit. a that could be one of the reasons goinge estimate have been up slightly. there's a tax cut people are looking at. those could be some of the reasons why they are doing u.s.r in europe than the david: it's friday. asia.head back here to tell me something good. it can't be all that. right.'s there's always pockets of when it comes earnings. morgan stanley came out with a note. can look at retail bang, well.re expected to go goldman sachs came out with a note saying lenders in hong kong can do well. is another one where analyst has been raising their

estimates. sip pore do -- singapore too, decentare expecting amount of earnings. david: i anticipate sleepless nights. thank you so much. a welcome at -- look i.p.o. china isotope, we're down on the debut. the green market wasn't good. low the price. the company here raising retail from $8 million to $24 million. was 35 time over subscribe. help thedin really price. here inthe opening gong

hong kong. that really take us to where we go from here. of other bige kong.in hong after a we have china power. question is, should we buy in or clear?we stay away.ors should stay explain. >> i ran the analysis of more than 1300tmt, tech media telecoms globally. they go up 40% to 50%. from thence shows that close on day one through the end year, the majority of shares fall. you digit get out on day one and make a nice profit, you

probably going to have a tough you and you will really would have to wear that cases. the majority of one of the big points is between arounds and 12 months 60% of shared fall during that period. period when lot of the lock ups for employees expires. there's very interesting as well.ce there david: what does this tell us coming up?s there's china power, which is almost completely different kind of nonsexy business compared to year.e have seen this what's the outlook? couldn't predict what's going to happen to a stock. i'm not in that business. reported what bloomberg has done quite a lot of research the market is feeling. they're pricing $17 exactly in

range with 17 to 22. really just at the very bottom range. what i report bloomberg found in as premarket, bids as low 11% below that. $15 and $17 mark. that's not a good sign. it adds concern about the ipo and appeal this is a nonprofitable company. david: it's probably also timing. hardly the best time to list your shares given the environment. just challenging conditions right now. >> that's true. great now. there's also feeling that now might be better than six months later. how would it be october

november. there's a sense amongst many start-ups if they are going to better do it quick as possible. worse.d get culpan arberg opinion bloomberg columnist. this is bloomberg. ♪

david: let's get update across markets now. posting ay we're deadline. >> not much for mumbai stocks. barely flat we see some banks take a hit.

aboutank for example down 26 points. i want to highlight reliance industries. this after billionaire chairman aligned on thursday plan ton wal-mart andn and commerce battle ground. currencyin -- we have about 69 against the dollar. near record low. have in the bond space, traders watching for 120 debt sale. this is bonds declined once more. concern over the government's prices.n stock david: 15 minutes away. tariffsunting it down kicking in. it's not the best environment in of risk appetite. metal?t be gold or

you have compare those numbers out of america. role ofve a look at the .old and petroleum in.k you for coming you're bullish on gold. why? >> gold is very important part. think goldd more, i the monetary in system. that's where the risks lie. look at the 7 to 10 year it says something quite amazing. pricing dollar ten years in future, 101 cents. i don't think single person

thinks that's the case. and it'sour hedge really interesting. david: what are assumptions on u.s. dollar? question.great i think very important point here. and the dollar have no relationship at all. they have a relationship as much there's opportunity cost between one and the other. not the goldice is price. you're talking about dollar gold. correlation. totally see environment where together. gold go david: i been a -- it's been challenging environment. have several industries that

might be pushing. it's been challenging. why hasn't gold moved up? that's the argument here. answer.simple gold price hasn't rallied this time because bond markets didn't change. i would argue, if if go down properly, i very much would expect the bond market start to hikes.way that will drive interest rates lower and gold higher. david: as things stand, there rate.ny measures of real if the fed does hike rates and wasn't deposited, what does

that do? >> the first thing to say, price it is now it's priced at. i would say to you, the front year is less relevant when you thinking about gold. gold is going to be dropping in future. this is what's so interesting gold it's that gap between what you see on the screen and you really perceive is the case. that gap.tting david: where do i look? at the a curve and look gap there. the market changing that view.

bond market behave like a ball. moves around. going lower.s not go low it would have to would be awful unless they are surprised 50 bases points hike middle of thehe week. if you imagine different way. full guidance. the fed and central banks for gold, but there's a flaw that sit on the lap too. david: what's the target? market.nk we're in bull bull market conditions 10% in silver. 15 in david: thank you. there.leave it

naylor-leland. also coming up here, we're down.s away in counting war first trump tariffs kick in a few minute. updates. us for live ♪.

david: we're here. minutes away six minutes 30 seconds to be exact from the trade war. kick in.ffs do for youreally marathon dave. here it is. we finally got to this day.

been like markets have interesting. we continue to see shanghai composite rally. perhaps we're just kind of racing for what's to come here. it's been an interesting couple hours. we've been talking to guests about what's to come. we've long telegraphed billions of dollars of goods that could slapped with tariffs. we talked to analyst as well. fu.avorite was john he's 20 year veteran, he's not touching these chinese stocks now. not with the trade concerns, lot of things going on now. at opportunities elsewhere. take a listen to what he had to say. permanent not a abandonment. this is a temporary avoidance. the largest economy in asia and cannot be ignored. equityfundamentally house in investment stocks on

its fundamental basis. invest in stocks in a vacuum. >> right. opportunity like thailand and vietnam. perhaps economies little bit more stronger. to j.p.o bring it back morgan telling our colleagues, these trade tensions will be like ongoing back pain. it comes and comes back to cannd you how painful it get. we're looking at all these uncertainties. david: the companies can you around, how do you plan something that going to hit in a few minutes? might change next week and put in. >> or someone else can retalia retaliate. speaking earlier -- -- feels like in the bluster tariffs,t for tat

we've lost sight of the issues sectione at stake in ago.u.s. started a year david: just for viewers in case you're just joining us, it's $34 billion that kicks in a few minutes. $16 billion perhaps over the next two week. a month tobout review that. $200 million. at that point, we have to start talking about another sort of together.ll tom mckenzie will talk about the alternatives of china if bullets.out of now. look at markets hang sang eight shares. broader complex here in hong kong. right is the small cap index. were not in good shape as head to the lunch break. we will be getting some reaction across market. is trading.

yeah, here we go. counting down. where we go from here. lots more coming up here. as these continues tariffs kick in a few minutes. ♪

>> this is a special edition of bloomberg markets: asia. david: -- david: here we go.