♪ haidi: the g20 warns the trade the globalreaten economy but stephen mnuchin said no chance of a currency war. betty: raising the heat on china, threatening tariffs on all imported goods and say beijing is manipulating the yuan. top aide say abe's the u.s. should rejoin the tpp and japan is not interested in a bilateral trade deal. betty: the new brexit boss said the government must prepare for

any eventuality including a no deal support. sydney.ello from it is pass 8:30 -- 8:00 a.m. betty: it is just past 6:00 in new york. i am kathleen hays. there is a very interesting backdrop for the asian open as the g20 met, just as donald trump was tweeting out china and they you are manipulative -- the e.u. are met -- are manipulating currencies. they say trade tensions are a threat to the global economy. tell us something we didn't know because that is the theme for the markets and investors around the world. haidi: these comments from president trump about the alleged currently -- currency manipulation follows on the back of his remarks on how he thinks the dollar is too strong, the fed tightening, not a fan of that. really wreaking havoc.

andleen: it certainly is, let's take a look at the u.s. close. indexes i think were pretty much unchanged. you can see the red across the board. s&p 500 ended the week a half-point higher, the nasdaq fell from a record high. netflix, a disappointment on subscriber growth area there are big questions over the other faang stocks, google, amazon and facebook when they report. let's move on to asia now because the boj, news from writers they are looking at the yield curve policy, maybe let the 10 year move higher. you can see the yen has weakened a little. the 10 year is a little higher. news team in tokyo

writing that is ready to rip higher at the open after that story from reuters. haidi: nothing like a bit of speculation as to a tweet for boj policy. continuing to watch the yen and trade year yield as continues. we have a little bit of downside, indicated downside when it comes to sydney. at 68.07,kiwi dollar the aussie dollar above $.74 u.s. we see decline for the bloomberg index at the end of next week on account of uncertainty thrown out by the president's latest tweets about currency manipulation and china and the e.u. and how he feels about the strength of the greenback. look at the key affects. i would say the key markets story this week. we are looking at the yuan, backup the top of the list for

worries of emerging-market investors. this is what we see with a gap of offshore yuan. you see the bears when it comes to this, getting ever louder with expectations. the pboc not doing much to stem fears. we had the 6.7 for the first time in about a year and the most weakening on friday in two years. down 8% since march highs when it comes to the yuan. looking to see whether volatility spreads across the rest of the em, the fx complex. us get to first word news. u.k.'s new brexit chief said the country must prepare for a no deal brexit. they told bbc that while they ae this scenario happening, responsible government should plan for every outcome. he talked to the sunday telegraph, the uk's will refuse to pay the divorce bill if it

fails to agree on a deal. the new president of mexico is toling on president trump trash nafta talks and aimed at a final deal including all three countries. he says the three sides should work together on a range of issues including trade, migration and security. he added that a new nafta could harm investments in the medium and long-term. a heat wave in japan has killed sent 10,000 to. blistering temperatures continue throughout this week. the tokyo forecast is 36 degrees monday and 37 tuesday and wednesday. it comes weeks after flooding claimed 200 lives and raises for thes about lance 2020 olympics in july and august. after a is cleaning up typhoon made landfall, disrupting transport and

shipping. many people in the city and neighboring provinces were moved to shoulders and 41,000 ships were towed to port. the airports are resuming after hundreds were canceled. only light rain forecasted for the city 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. i am haslinda amin. this is bloomberg. haidi: thank you. g20 finance ministers are mourning trade tensions written global growth. with worldwide economic growth looking robust, the risk nonetheless is growing. the u.s. treasury secretary trying to ease concerns about trump's attack on the fed, saying there is no chance of a currency war. reporter patrick gillespie joins us.

did president trump dominate these discussions? reporter: absolutely. this dominated the discussion in buenos aires. ministers and central bank chiefs wanted to show a united front after the g7 limit -- summit in canada with trump withdrawing the u.s. signature from the communicate, so leaders front,to show a united more consensus, but the cracks from the u.s. tariffs on steel and aluminum, the european tariffs, chinese, those factors were at play. stephen mnuchin wanted to control and set a trade war will not have any spillover effect on the currency market, and everyone avoided talk of currency manipulation in buenos aires. the trade war effects were present as conversation here. kathleen: president trump accused europe and china of currency manipulation. how does that influence the g20? patrick: it was one of the most

.olemic parts of the weekend leaders tried to downplay the discussion, especially that there wasn't, there has been a historical conversation about whether chinese are manipulating their currency. that same evidence has not been there for the euro and european union. leaders tried to stay away from that and had hands tied with all the controversies of the u.s. risks ofnd the growing a trade war and how it could affect global growth and president trump's comments on the federal reserve and what it means for central bank dependence. g7 meeting ended horribly. the u.s. withdrew his signature. what changed this time so all countries could sign onto the communique? the argentina minister saying it was not hard, we all got on board? patrick: stephen mnuchin and the this is thenister,

easiest statement they ever had to draft. the trade tensions globally have gotten worse since the g7 leader summit. the u.s. and china have formalized tariffs on each other, canada has applied tariffs, mexico. things have gotten worse since what was most at play was a difference of leadership. stephen mnuchin is in the globalist free trade camp of the white house. trump's tradeg policy but urged for less protectionist measures. you did not have the theater of president trump here in buenos aires today. it was a change of leadership and desire to show consensus among global finance ministers that led all countries to go forward with the communique, but trade tensions have worsened over the past few weeks. kathleen: at least you did find a positive note for us to end on. thank you. bloomberg news reporter patrick

gillespie joining us. china, they may have read their course on yuan appreciation, now president trump has zero in on that. tom mackenzie joins us in beijing for more. really only a matter of time before there was backlash from trump. am: there was was going to be ll given hea bu energyo much time and manipulating -- parading them for manipulating the currency. was no surprise i think to many of us watching this that president trump was certainly going to take notice, pay attention. that is what he did, accusing china of manipulating currency, saying it has fallen like a rock . we had this time whether the yuan was 5%, 6%, trading around

6.7% on the offshore currency. it has depreciated. the difference is, there are parallels people draw with 2015 when there was a surprise devaluation. the fundamentals are different. despite what trump says, the thes of img, hsbc say economic fundamentals are very different, so they speak to the need for a slightly weaker currency. bloomberg economics things the yuan is overvalued by 6.6%. others will note this is one being used by the chinese suspicion to offset these pressures from the trade tensions to help the export sector and the monetary policy easing at least around the edges. j.p. morgan said china may need to resort to other measures like fiscal measures. in terms of the currency, other

economists say a key level is the 6.8 level and that will be surprising according to some if we see it weakening beyond that. we have seen comments in the last few weeks trying to reassure the markets. they are comfortable with depreciation but 6.8, or maybe as far as they can stomach on the currency. they will be factoring in comments from trump. haidi: as trump ratchets up trade comments, zte is back in the spotlight. saga rumbles on. lawmakers on both democrats and republican side coming together against the white house to push for a tougher line on this as part of ongoing negotiations. trump was the one who decided to effectively reinstate the business after it was frozen out u.s.ying imports from the

for seven years. he said he was doing it as a favor to president xi, and he has pushed back strongly against immigrants and republicans, trying to reinstate that ban. it seems according to our sources they will water down the language because they want the defense bill to go forward later this week. that includes amendments to cfius to make it more commendable into the united states. seems to be a payoff they have gone through. we heard from the likes of marco rubio who has been a hawk on these issues, saying it was a concession he was not happy with. positive news for zte, but for those wanting to take a tougher line on chinese tech firms and their access to u.s. technology, possibly not good news. it is a payoff to get the defense spending bill through. haidi: thank you so much, our china correspondent from beijing.

we will stay with trade, trade tensions sparking a crisis in china. it could happen. we are asking why later on this hour. kathleen: and the yuan back at the top of investors' worries as currencies loom as the next battleground. we are joined. this is bloomberg. ♪ bloomberg. ♪

has trading gets ready to get underway, we start with australia coming down. you can see sydney futures down .3%, or is a trade tensions, worries about currency wars, a tough week in the u.s. last week. major market indexes closing unchanged, but a lot of concern about earnings. you see sydney futures with negativity on this monday in sydney.

i am kathleen hays in new york. haidi: i am haidi lun. as you say, lots of risk this week, monetary policy with the wrath of -- with a lot of central bank decisions. u.s. ig tech names in the china would like to see some yuan stability. the biggest market strategy -- the biggest risk to look out for. incomeia's head of fixed joining us. chart start off with a that will change the issue of whether currency, volatility and the contagion question is going to be a key thematic into the trading week. this is the gtv library. market sentiment expressed in this cap between offshore and

onshore, offshore was trading weaker for 32 days. you can see the pessimism building. has it surprised you we have not seen overt intervention or job earnings from the pboc? >> it seems they have been comfortable with depreciation. it has been a controlled but .airly meaningful move at this point after more than 5% decline the past several weeks, it may be the pboc will shift to some other methods to lessen financial conditions. haidi: is the possibility of a currency war [indiscernible] to you? seems that has been ratcheted up i trump's latest comments about commentsmp's latest about the yuan and the greenback. anne: they seem to walk back some of his rhetoric and sort of playing that down.

i guess the u.s. doesn't want to see a very, very strong currency , but overall it seems that trend is going to continue, particularly in this slightly risk off scenario we have been seeing. haidi: you have a base assumption for a stronger u.s. dollar because even though you see the risks being thrown out by the u.s., you see u.s. equities do quite well and return to base effects are the currency. anne: that is right. the risk off and interest rate differential favors the u.s. dollar. kathleen: i am kathleen hays in new york. i want to turn to chinese stocks because you are fairly upbeat on them. you are not alone even though there is concern with trade war, trade tensions could hit chinese economy. you see some relief in the future. let's take a look at another charge that shows different

strokes is the title. china's retreat from the market, looking at china and the u.s. are you bullish on chinese equities, and what will make it happen? anne: chinese equities enjoy the forward support of financial conditions and appreciation in the yuan, so overall we are quite instructive but recognizing it has resurfaced, particularly with escalation over the last couple of weeks around trump's stepping up, his aggression around the trade issues for china. kathleen: we will be speaking to another guest later in the hour who is concerned the trade war is going to backfire on trump to the extent it causes debt to implode in china, bending down there economy -- bringing down

there economy and global economy. this debt hangover has been there forever. are you worried the? -- about that? anne: it remains a risk, but this engagement in the escalation of the trade war threatens growth for the u.s. and china, then it will spillover effect around the world. that is the biggest risk, not specifically chinese debt burden because the chinese authorities have worked very hard to at least ameliorate the financial stability risks on their debt. hedge given weou have so little detail how this could worsen and if we could get a circuit breaker and negotiate back on the table? do you stay away from certain sectors, auto, consumer names might be some of the first? anne: that is right. in terms of the winners and

people are flying away from u.s. stocks, not withstanding they have stood well. towardsghting [indiscernible] -- thethe art does autos, oil, energy, continue to be pressured by concerns about the outlook for growth. and then being overweight, nondiscretionary areas like health care and the like. kathleen: i want a question about the yield curve because the u.s. yield curve, i show a chart how narrow the gap between, we have got between jews and tens. tens.s and you think it will rise? anne: overtime u.s. treasury should increase.

not significantly but cyclically i think the pressure will be for the structure, the long and, the left. the curve overall, it is very much in place for a flattening yield curve, in part because of the treasury issue and continuing to be focused much on the shorter data, part of the maturity structure. haidi: always a pleasure, thank you for joining us monday morning. management inet australia. users can interact with the charts shown during programming on gtv . round up the charts we feature, catch up on key analysis and should should be -- and save them. this is bloomberg. ♪ bloomberg. ♪

stroud-wattsaidi

in sydney. kathleen: i am kathleen hays. now for a check of the business flash headlines. jeep is going to underpin chrysler's future after changes at the top or the longtime boss has taken over as group ceo after the health of another man worsened. the jeep and ram brands accounted for 67% of fiat chrysler's total volume last year. cheap alone can reward -- jeep alone can reward the $30 million value of the group. haidi: jd.com is ready to open in europe. the company will change from selling european goods in china to offering chinese products in the e.u. the plans were signed for this year. their headquarters is in germany. they say jd and rival alibaba are booting logistics upgrades in europe. kathleen: china towers said to

holdingcapital and companies to its plan ipo. sources say they are among 10 companies to buy stock as cornerstone investors. atna towers offering shares one dollar 26 -- one dollars $.26. this would be the biggest in nearly four years. ♪ haidi: we are looking at a a lot of trading week, events facing investors, not the least of which keeping one eye on the yuan. we have the pboc meeting in two years on friday. how much more can they tolerate and how much does that affect the rest of the emerging markets? this is how we are trading at the moment as asia wakes up. new zealand looking lower, sydney indicating a downside, .3%. we are seeing weakness across energy, looking to dominate trading with oil prices

continuing to fluctuate on account of trade tensions weighing into the demand side of the story. the aussie dollar above $.74 u.s., the u.s. dollar declining towards the end of last week. this is bloomberg. ♪ is bloomberg. ♪

haidi: it is 8:30 in sydney. markets open in 90 minutes time, futures looking weaker as we head into the brand-new trading week. after whatdown .3% was essentially a flat finish for wall street. big week ahead, earnings in particular, major tech earnings from the u.s. and financial, industrial, airlines, and rate decisions out as well as in this part of the world, we get gdp and ecb meeting, saying rates will be on hold for some time yet. i am haidi stroud-watts. kathleen: i am kathleen hays in new york. let's get to first word news with haslinda amin.

chiefs are20 finance warning trade tensions threatened global growth as the engines of leading economies fall out of sync. finance ministers wrapped up their summit in buenos aires, saying rates have increased but they say global growth remains robust in many emerging market economies, which are better prepared. they did not mention trade tensions. one of japan's most senior policymakers says the government will continue to resist american efforts to negotiate a bilateral free trade agreement. said they willer not do anything to harm national interest. he said japan will insist the u.s. returning to the transpacific partnership is in the best interest of both countries. aacex has posted telecommunication satellite into orbit. it is the 13th of the year.

it lasted from cape canaveral of 32ace its cargo minutes later. the state returned to earth, landing safely on the drone ship . spacex is targeting 30-ish and this year, up from 18 in 2017. so much for [indiscernible] took the top spot in north america at the weekend i had of the mamma mia sequel here we go again. it raked in $30 million, beating rivals' $34 million. action hero films have dominated this year, averaging number one almost every weekend. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg.

haidi: let's get you an update on the markets in terms of how asia is starting the trading week. trading in new zealand getting underway. quite a bit of downside, half a percent low in this part of the session. the kiwi dollar 68.09. the u.s. dollar ended lower. you see the game above $.74 u.s. for the aussie dollar. the citi open, downside of a quarter of 1%. let's get more on what we should be watching in asia. adam haigh joins us. big theme of contention, quite a bit to choose from. adam: there is especially after friday with donald trump and everything being speculated what's what is next for the tariffs and implications for trade war policy, if it takes through to a fully blown currency war and if it will be tough to navigate. the offshore yuan is looking steady. that should be comfort to people

. the back end of last week, we saw a lot more pressure on the currency areas it was a continued discussion on how much of this is a reflection on what you would expect from policy and how much is more of a policy that is being allowed to go further. the flipside is what is happening with the dollar. we heard from ubs, there is plenty of people still bullish on the dollar, whether it is relative save haven trade or kind of a yield differential based on how the u.s. continues to perform. as this chart shows you in your gtv library, we are looking at this data from the backend of last week showing people adding to their bullish positions on the greenback. with speculative flows loaded up like that, it is going to take a lot to unwind that. we could have some of that this week.

as you mentioned with the ecb coming thursday, the fed out with policy makers, we have the south korean gdp report looking key, given the bank of korea been saying over the last few weeks. it looks like the top set up. .quity futures -- tough set up equity futures not giving us much. the offshore yuan looking pretty steady. the real key is whether the dollar move lower on friday will continue and if it has got force looking into monday. kathleen: plenty of talk about the tech sector propping up the rest of the market. faangsks -- the thing -- are like half of it. what do you see. been one ofthis has the semantics of the bull market, the fact tech has continued to outperform for many months and years.

every kind of juncture or big obstacle, the most recent of which we had in january, february with regulation concerns around facebook and the wider sector come of the stocks continued to recover and they keep propelling the bull market on. what was noticeable about last week is you had an underperformance of the thank -- 's. faang this chart shows the biggest underperformance for that sector relative to the s&p going back to march, which clearly is significant in a space that has tended to leave the market, tended to perform relatively well compared to the market. it is rare to see these bouts of underperformance. the question is whether this is some kind of sustainable move in the market, and if it needs to get worried or whether this was a case of selling down the winners and people booking

profit as they go into the kind of more of this summer months lull. equity volumes are low and people's tolerance for taking risk not just equities but across the board does tend to be lower given a lot of people are away on holiday. it is too early to get a sense of why that occurred but if it is the latter and the fact people are dialing back and taking profit, it need not be a worry for the broader market. kathleen: it could be a telling work -- week. thank you. don't forget to check out our library with those charts you saw. gtv on the terminal. brace yourselves. one of the busiest weeks of the quarter is about to unfold. big oil, big tech, some of the biggest global financial firms are on the list. su keenan is here with a preview. after last week, it could be like put on your seatbelts.

some are calling it an avalanche. we have tuesday at -- alphabet. then in the chart we can see a lot of other companies, showing amazon wednesday. ,hursday we have deutsche bank facebook been state and we round off with twitter and exxon mobil. these are some of the biggest names in the market. we have big oil facing challenges. we have big finance. deutsche bank facing a large turnaround. then some of the names, tech makes up 25% of stocks in the s&p. this could really rock the market. speaking of that, let's go into the bloomberg. you can see a library of charts. this is called facebook, topping the top line growth. you can see purple is facebook. we will focus on blue, amazon,

yellow google. how they perform could really influence this week's trading. kathleen: a lot of netflix disappointment. that is one reason to continue on the faang's. su: it has created a caution, anxiety. let's focus on google. a couple things to focus on. number one is the search at. this is the largest profit center. there will be questions on the impact of the adverse e.u. ruling with google search and google chrome, how it is impacting the company and is number three public cloud platform. their cloud is gaining shares. how much is the question. amazon, the shipping giant has been the focus of the retail world, its partnerships, the new grocery wars, those are the questions that if you look at year tot, it is up 55%

date, $2.50 a share. last week's shares ended at a high above $1800. facebook is set to reveal its results midweek. census forecast for apa forecast in -- $13.38 million in revenue. lots of things by the chart. it has fared well and is bouncing back from that. be an issue but a lot of stuff on the conference call for sure. we are also looking into reporting global financials, oil as well. what are we looking at? su: it has gotten ugly in the oil market. we have directionless oil we were going to $100, then the other. let's get to shell and exxon mobil. it gives a greater sense.

investors are concerned about fallout on the trade war and analysts are saying these are cash hoards ofrt $8 billion. let's see what exxon mobil has to say. then the stock surged for the second quarter preview, signaling it would have bullish expectations, solid earnings. we have a brand-new ceo. how deep are the cuts going? and that ubs, second-quarter report could be all about the flows and u.s. taxes and tax related outflows are typical this time of year and could be worsened by the rule changes from the trump administration. stay tuned. haidi: big week ahead. looking at what we are watching on wall street. in terms of politics, also watching president donald trump using the release of surveillance application on an advisor during his campaign to

renew claims of a rigged fbi investigation. the government released a heavily redacted version of the document used to apply for a wiretap of a campaign adviser carter page. marco rubio is taking a different view on the matter. >> i have a different view than the president and the white house. they did not spy on the white house from everything i have seen. you have an individual who has bragged about his ties to russia and russians. he has certainly talked about it. haidi: let's get more from bloomberg editor ros krasny who joins us. what is the latest? confusedident trump the carter page news that came out saturday to pivot back to his claims the fbi was investigating the campaign, witchhunt, all without providing evidence there was any spying.

i think it is really a little bit part of his effort to pivot away from russia last week. going back to some of his greatest hits, his populist themes as we saw last week, and tweeting about the nfl, the players kneeling. he went into fed policy, which is unnerving to the markets and really going back to some of the subtext he feels like is very loyal base likes to hear about. so the reaction to the carter page news from yesterday, it kind of fell mostly along partisan lines. but marco rubio was an outlier there as a republican. i think we possibly will not have heard the end of that from president trump this week. he doesn't have a heavy schedule as far as we can see. he has a couple events out of

washington. going to kansas, iowa. but he will be ever present on twitter i would imagine. kathleen: ros krasny, they do so much for joining us from washington with the latest on donald trump. another very important story we are following. why china's economy is being likened to a ponzi scheme. keep it here. this is bloomberg. ♪ ♪

i am haidi stroud-watts in sydney. stephen: i am kathleen hays -- hays.en: i am kathleen a trade war could spark a debt crisis in china. joining us is a bloomberg opinion columnist and cofounder and research director at j capital research. i want to get to this very important piece you wrote for bloomberg because you say donald trump is dead serious about

reducing u.s. current account deficit with china, and it is going to backfire because it china's house of debt cards to tumble. they will have a debt crisis. why? anne: because china has depended on cheap u.s. dollars coming into china in order to refinance that debt. as you have fewer dollars, u.s. rates are rising, there is an intention to reduce the amount of dollars in circulation through trade, as you have less of that, china has to print more to refinance that. kathleen: you make another important point, the calling of another chart from the library that shows -- this is the wrong charge. put it down. multitasking because i want to make a point about the chinese currency. you say a stable currency is one of the pillars of the chinese government's power. if that heller -- if that killer

is wobbling, it is a problem. made it aident xi has central tenet of his leadership he is going to have strong renminbi. what that means, it is pride for ,he chinese policy, but also all this money i have accumulated during the property boom, maybe i will buy property in london. kathleen: this will lead to a recession? anne: i think it is inevitable because china has been driving growth through excessive injection of debt for many years now since 2008. economy: so a ponzi toppled by a recession hurting the global economy. what does the rest of the world do? what does donald trump to? -- do? anne: i don't think he has

intention to do this. he is backed by skepticism and hostility towards china. what he is trying to achieve is not very clear and in fact not very well executed i think. the real problem with chinese trade is chinese theft of international ip. this adding tariffs will not attack that. this is what we are getting and i think it will be the tipping point for china. we are seeing it now area -- now. haidi: you would not be the first china bear to be concerned about the amount of debt and the risks at play in the chinese .conomy, but so far, so good the way they make policy and the way they tweak policy to react to market forces have managed to keep things afloat. what changes things this time? good for theso

international world that sells commodities and other things to china, not necessarily for the chinese people. what is different this time, i think what is different really is chinese banks, the central government push a ton of money into the economy in 2016 because it was their version of an election year. everybody had to show growth, local governments showing they are expanding. it is unplayable. that would require more injection of money and there is not that much money to go around without creating massive inflation. they are trying to pull it back. you see default across the chinese economy. they cannot get bonds out. rates are rising. it is kind of a mess. what options remain if you are looking at what choices xi jinping has, because we know his consolidation of power is

largely based on this booming economy. he wants to keep gdp around 6% maintain full employment area what options are available to him in this scenario where we see the trade war continuing? anne: what options what exists in the world unconstrained by politics, then there is what is the real world. if somebody made me and press of china, i would call stop to all of this empty real estate development and hand the real estate assets to people who need them, but that will not happen. what are his real choices? what he is trying to do is balance a line between keeping the economy going and pulling back a little bit on credit. but is not going to work. it is trying to square a circle. i don't think he has a lot of options. he can try to stimulate and that will happen. kathleen: if we agree the main espionage, what can

the u.s. do because chinese -- nothing happens. what should trump be doing? trump is walking it back. we had sanctions against the te imposed by the obama administration and then halted. trump has reversed those are what i think are clearly personal reasons. the u.s. economy and trump do not care about employment in china. trump said we do. reverse those and soften them in the new iteration of the defense bill which will push through soccer the te -- softer zte sanctions. rejoin the tpp. joining: thank you for us. our bloomberg opinion columnist and founder of j r research. you can get a roundup of the stories you need to get your day

going in today's edition of daybreak. you can go to dayb on the terminal. it is available on mobile. you can customize your settings so you only get news on the industries and assets you really care about. this is bloomberg. ♪ this is bloomberg. ♪

a quick check of business flash headlines. completed byer november this year. retainling, they will 15% of supermarket chain after the spinoff as well as 50% of the fly by loyalty program. they see $2 billion australian, dividend payout at 80% to 90%. haidi: the long-standing hong warningperty bears a correction may be imminent. citigroup last week predicted a

7% second-half slide. now they see a possible decline of twice that. seeking the forecast of flat prices this year while making -- bank of america merrill lynch sees a 20% correction by the end of the decade. kathleen: a consortium led by kkr is buying a taiwanese chemicals company for $1.4 billion u.s. they are paying 56 taiwan dollars a share, 70% remy him to friday's posing price. elsie y be listed when the --lcy will be listed pending regulatory approvals. haidi: that is just about it this morning, but kathleen, you and i are sticking around. around. as we continue to watch the yuan stabilize, i should point out early this monday morning, but the doubt was down 8% since

march. we saw that fixing from the pboc for the first term in a year. a weakening gap in two years. watching for that fixing today and key is the contagion effect on emerging markets. we are speaking about e.m., the perfect storm. global advisors president and ceo joins us. he says if you are looking at this background of the fed, interest rate differentials, no worrying about the chinese currency and a trade war. things are not -- things are looking quite different. kathleen: he made that call a couple months ago, so he was appreciative on that, but speaking of emerging markets we are speaking to dws aipac cio and head of emerging markets sean taylor. he knows e.m.'s the worst performing region. the final outcome, he thinks there could be conciliatory

moves from china. risk remains in ef asian stocks, but there is a big upside. that is a bit -- more action next on daybreak asia. this is bloomberg. ♪ ♪

haida: welcome to "daybreak: asia." a mixed start to the week. tensions threatening the global economy. steve mnuchin sees no chance of a currency board. it is just past 7:00 p.m. on this sunday. raising the heat on china raising tariffs on imported could -- goods. shinzo abe says the u.s. should saysn the tpp and