haidi: president trump redirects his rhetoric. he says he has the upper hand on beijing. they refused to back down. ramy: rising tension with washington forces the riyal to historic lows. aussie's recent recruitment the not go long. ramy: jamie dimon says prepare for higher rates including the benchmark 10 year yield at 5% or more.

haidi: hello from sydney where a.m. fast 8:00 we are two hours away from the opening of the first major markets. ramy: it is past 6:00 in new york on sunday. we will look ahead to this week's biggest biggest -- biggest business news to see how it could affect the week. , ifere talking about when beijing would retaliate in more than words. we got that. be careful what you wish for because beijing did poll out the tariffs -- pull out of the tariffs. we did not see that much in the markets, but we will be looking ahead to see how the asia-pacific reacts to the biggest news out of the trading tit-for-tat we have been seeing. backdrop ofst the all of this, central-bank week was, we got last

a big week for central banks and it was. it has not come to an end. rnc, the rba, philippines and peru, a bunch of central-bank decisions as policymakers try to hedge against the risks being imposed by the escalating trade war. ramy: we'll see how the levers get hold or push. let's get a -- colder pushed. -- before the new tariffs headlines across. the s&p 500 was up half a percent. this was actually the fifth weekly gain in a row. that is the same as the dow area for the nasdaq it is its first weekly gain in three weeks. we know volatility happening with tech stocks. quickly let's put up the board and take a look at what is happening with currencies and commodities. the dollar spots down .1%. new york crude, you see on the move. it had fallen .8% on friday.

the 10 year yield pulling away from the 3% mark. couldn't go to 5%? futures 1221. track -- here is how we are setting up. central-bank activity with this part of the world, new zealand just getting underway. look at how we are setting up ahead of thursday's decision. looking at upside there for qb stocks and the dollar, trading at 6745 your the aussie dollar decision.the no changes expected in that trifecta of reasons, trade war, the currency has been range bound as well as the recent declines in the property market, wage growth being tepid. lots of reasons for it to stay at a record low 1.5%. let's take a look at what we are watching in the open of trading

on mainland markets as well as china, watching the yuan which had a short -- sharp, short turn. financing 20% reserve requirement. they added fx. this makes shorting their trade on the yuan a lot more expensive. we saw this doing three years ago and it didn't work in the in short-termut with a reprieve when it comes to usd. we have chinese shares looking like we had another terrible -- see if that gets any boost in sentiment with retaliation on the tariffs. let's get you first word news with haslinda amin. haslinda: at least 39 people have been killed in a powerful earthquake in indonesia.

the magnitude seven tremor struck a week after another one killed a dozen people on the island. there was a brief tsunami warning and damaged buildings in bali, anthony a department store and part of an airport terminal. both airports remain open. u.k. trade secretary liam fox said the brexit negotiations are more likely to end in failure than success. speaking to the sunday times, he said now a 60% chance of a no deal outcome. he blamed the european commission for lax applicability in 15 months of talks. the prime minister's office said the government remains confident of securing a deal. a nonaggression pact in the south china sea, and for north korea to turn nuclear promises into reality. china and its neighbors issued conduct,alled code of which will be a milestone after

16 years of sporadic talks. north korea criticized the united states for what it called alarming sanctions. alphabet has been told is in talks with tencent and other chinese companies about offering google cloud services in the mainland. the talks began this year but rising trade tensions could become an obstacle. the u.s. lawmakers are demanding answers from google over reports it is developing a sensitive version of it engine for china. 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: president trump has defended his use of tariffs, saying playing hardball is my thing. this follows china's decision to outline an additional $60 billion with retaliatory tariffs. let's get now to beijing.

trump is claiming to have the upper hand on china. we have a flurry of data coming out this week in terms of trade numbers. that should give an indication whether it is right or not. china data,eek for and as you say president trump coming out over the weekend with this rally in ohio but also a series of tweets to underscore his view tariffs and the actions he has taken give the u.s. leverage, saying he thinks it will win certainly in the longer term and it will open up china's economy. he points to the impact of china markets. he says this gives the u.s. leverage as well. take a listen to what his comments were at this ohio valley. mr. trump: they have taken $500 billion a year for many years.

we have really rebuilt china. and it is time we rebuilt our own country now. yes, china back in focus for president trump over the weekend. last week we had those reports out of washington that they were indeed considering raising the level of tariffs on the next round of $200 billion worth of chinese goods that would be hit by tariffs from 10% to 25%. we also heard potentially there were talks in the background among lower-level officials from the treasury secretaries team and the vice premier in china. for the moment the rhetoric is remaining strong on both sides and actions as well with china unveiling this list of an additional $60 billion of u.s. goods to be hit by tariffs and retaliatory fashion from beijing.

ramy: what do we know about beijing's latest response? tom: this adds on the $50 billion they have already outlined. they have hit back with $34 billion in this initial round of u.s.-china tariffs. we are expecting the u.s. will go ahead with a further $16 billion and china will match it. china has outlined $60 billion worth of goods that will be hit if the u.s. goes ahead with $200 billion the day of outline. we looking at five percent to 25% on 5000 different categories of products, so the higher-end of the tariffs will target products like meat, week and lng. -- wheat, and lng. this additional list outlined by china doesn't do much to add further pain to the u.s. agricultural sector but in terms of lng, there is an impact.

we saw some of those players in the u.s. market falling. that is one to watch. china has said it will not be bullied or blackmailed. as you have been discussing, we have been waiting to hear from clarity from china how they plan to respond if these tariffs are put in place. we got more details friday. now we are looking to see what happens with this consultation in washington towards the end of august. then the end of august, early september, you could get additional $200 billion worth of tariffs imposed and retaliatory measures and's tips from beijing -- and steps from beijing. ramy: tom mackenzie with the latest between the u.s. and china. breaking news crossing the terminal, saudi arabia has said is canadian envoy in riyadh unwelcome. this is according to the present is she -- the the press agency.

quotinginvestment, also . saudi arabia has recalled its ambassador from canada. this may be related to a detained blogger that has been covered in canadian press. we want to get confirmation on that, but we are looking at these lines crossing the terminal that we do know saudi arabia said it envoy is unwelcome and frozen all trade investment with canada. moving ahead, three months after president trump's decision to exit the iran nuclear deal, people are bracing for fresh sanctions. joining us is bloomberg editor ros krasny. what areas will be targeted by these renewed sanctions? ros: good evening, ramy. the first round of sanctions which go into effect on monday into tuesday cover iranian trade, automobiles, certain

elements of trading in the dollar as well. it bans iranian products like carpets and pistachios coming into the united states. the united states has revoked licenses for iran to buy a number of u.s. and european aircraft. that is interesting. you talk about just in time delivery. five european joint, french-italian planes flew into iran today for the sanctions. it is a major thing for the aerospace industry because this is a big deal between iranian airlines and boeing in the u.s., in the yearsope since the iranian nuclear deal was stopped. november,ad, in sort of second and maybe more

significant round of sanctions kicks in. those will be on iran's oil sector and central-bank. that would be a really big thing. allieswhat do the u.s.' and government? ros: it is not a popular move, certainly among european allies who were signatories to the 2015 nuclear accord. a lot of countries around the world as well. european countries, they certainly fear lost business opportunities, the aerospace industry as we talked about, and we have word from iran talking about [indiscernible] unable to get new supplies to fill their stores. europe sees a repeat of what we have seen in syria over the past few years. tamron -- inme and iran, some kind of war or

further political and social instability, there could be a wave of migrants, refugees into europe as we have seen. just and across the board, a lot of concerns about a jump in crude oil prices. of iranian buyers crude, china, south korea, japan and customers there trying to much --t of reparations what might happen months from now. haidi: thank you so much for that, ros krasny, joining us out of washington. more on the worsening trade spat between the u.s. and china. imposedtariffs and restrictions on chinese investments could blowback. our markets compared -- prepared for higher treasury yields? we will discuss this with susan

buckley. this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. ramy: i am ramy inocencio. you are watching daybreak australia. the s&p will be kicking things off within striking difference of its january record and coming off a fifth weekly gain. su keenan is here. start with the fairly mediocre 3.9% for number, unemployment. it was steady growth. su: economists say is -- say it keeps us in the goldilocks zone. the fed stays on track. let's go to the bloomberg. gtv is where you can find these charts. steady as she goes, payrolls climbed 157,000 in july and the jobless rate fell below 4%.

behind the headlines, a lot of economists say even though it is below the growth many economists had forecast, it is a steady growth. it follows an upwardly revised 248,000 increase. the prior two months were revised upwards. one economist said there is a flashing yellow light in terms of the economy as a whole on this, but let's go to the big snapshot issues that will be in focus. oil will be in focus because the iran sanctions are coming on. the s&p rallying for a fifth straight week. numbers that the will be coming our way in terms of earnings. disney-21st century, banks and retailers. the disney and media drama will be grabbing the attention. disney coming off a big box office high. they are saying the panther, one

of their most successful franchises, could break above an all-time record. $495 a share. the concern will be the takeover drama on the call. another round of earnings with tech names, snap, the most recent ipo and very much under pressure retailer. ramy: thank you very much for that. looking at that. let's look at the bond market as well as global central banks because j.p. morgan ceo jamie dimon says the u.s. should be prepared for higher interest rates and a 10 year treasury yield at 5% or higher. let's bring in susan buckley, q strategy -- liquid 5% heard about this possible possibility. what do you think of this? susan: good morning.

yes, u.s. interest rate is heading higher. we expect the federal funds rate to head towards 3% over the next several years. that in itself could force u.s. 3%.ears up above we would not be surprised if the gets to 3% by the end of the year and a positive 4% at some point later next year. ramy: through the australian lens where you are, how that might impact you, what is your biggest concern? australia is at a different part of the cycle. clearly the u.s. is seeing solid growth having had about 4% gdp recently. australia is traveling half that pace of growth, so we have low cash trade here at 1.5%, and we

don't expect those to merge for another year, but the markets are pricing no moves until 2020. that could be brought forward. the global economy continues to recover. we have had better data of late, plenty of retail sales, stronger labor markets. getting positives, strong infrastructure spending from the state governments. haidi: if you take a look at. factors, downside factors for the aussie, we talked about rate diversions the 20 u.s. and australia, this is the heightened exposure to the trade war and the fact we are likely -- is the only direction down for the aussie dollar? the australian currency is in a downdraft at the moment. interest rates, differentials certainly not in the australian

dollar favor although the terms of trade providing some support. we would not be surprised if the australian currency continues to drift lower. values in the low 70's on a long-term fundamental basis. i guess we do have to worry about the escalation in the trade war. right now there is modest impact on global economies. tariffs on out 25% u.s.,inese exports to the you do get quite a significant impact on u.s. growth in the next two or three years. you also get higher inflation. haidi: i want to talk about the yuan because it has been interesting how closely correlated these asian currencies are but in particular, you look at the aussie in response to the weakness to the chinese yuan.

take a look at the reaction short break in. we have an announcement from the pboc that they were going to put in place 20% reserve requirement on certain fx forward contracts trade. we have seen them do this three years ago to stem the weakness in the yuan. that is really only temporary. do you expect further weakness from the fundamentals from the chinese economy and more specifically for our purposes you expect correlation between the aussie dollar and the chinese currency to continue? it was an interesting development on friday. 20% reserve requirement announced on fx forwards. clearly i don't think the to bee want to be seen using the chinese currency as a weapon in the trade, this trade war tension. levelsychological seven

is very critical in terms of market psychology. the renminbi has already april.ated 10% since certainly we have been seeing that depreciation with falling to the aussie. that could continue over time but i doubt the chinese authorities would hope to get this into a disorderly sort of route similar to 2015 or 2016 where a sharp depreciation led to significant market correction. the yuan is weakening for other domestic reasons. the chinese economy is slowing, interest rates have come down sharply. u.n.relative to the trades. publicly there is an effort to stem this rate of depreciation at this point. haidi: appreciate you joining us

this monday morning. q i see managing director coming out of brisbane. -- quc -- you can catch up on key analysis and save the charts for your future reference. this is bloomberg. ♪ . ♪

haidi: quick check of the business flash headlines, amazon removed white supremacist symbols after criticism from advocacy groups. the blocked some retailers and say it may suspend them. amazon's inadequately enforced policies have enforced raises to generate money and -- racists to generate money and spread their ideas. ramy: shipment delays and

additional costs, but chip production will be back to normal monday. they based this on third-quarter revenue to be 3% with gross margins affected one percentage point. the company has informed customers. this is bloomberg. ♪ s is bloomberg. ♪

haidi: 8:30 in sydney where the markets open in 90 minutes time. futures, this is how it is shaping up, looking a little upside of .3%. i am haidi stroud-watts in sydney. jenna: i am ramy inocencio in new york -- ramy: i am ramy inocencio. let's get to first live -- first word news. hasinda: president trump defended tariffs, saying playing hardball on trade is his thing. he told supporters the u.s. rebuild china over the years and it is time to focus on america. he knows the plunge in chinese stocks weekend beijing's power.

$60a released a list of billion worth of u.s. goods it intends to hit with tariffs very of the president has -- with tariffs. strategydent said the to get information on hillary clinton, it is routine in politics, totally legal and done all the time. this contradicts a statement that said the meeting had been focused on adopting children from russia. he said recently he did not know about the meeting at the time. aan is racing to complete string of deal before the u.s. imposes new sanctions. they have taken delivery of five new passenger planes after washington gave the sanctions. public resentment is building that the u.s. push the riyadh -- the riyal to historic lows. they will try to halt the currency decline.

security forces in venezuela have made a wave of arrests after a military parade was attacked with explosions carrying drugs. the president was unharmed. the interior minister said they were carrying c4 explosives. six people have been arrested including one man involved in an attack last year on a military base. 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 a quick update on the markets. the asian trading session getting underway, new zealand getting underway, up .1%. the rnc decision coming out thursday, not expecting a move in monetary policy. the kiwi is up there and we had the kiwi -- the bloomberg dollar index falling after three days

of gains. sydney futures looking brighter, .3% higher ahead of the rba, expected to keep rates at that record low 1.5%, the aussie dollar shy of the debt market. we will get more of the downside opposed for the aussie dollar, treating into the second half of the year. this is how we look with dollar-yen. 111. we have the summary of opinions out, scrutinizing that for the tweaking of the yield curve from the end of july meeting. sterling 130.02. we had positive data expected later this week which could add more support for the boe decision to hike last week. the u.s. 10-year yield shy of 3% . this was closing up higher .5%. close before we had the announcement from beijing of another potential tariffs on $60

million worth of u.s. goods. let's get more on what to watch on trading in asia. adam haigh is with us. in addition to the new tariffs, we also have this 20% reserve requirement being put on forward . we have seen this before. don't bet against a pboc morning. adam: it shows you the perils of investing in chinese security. if you can't understand or don't get a read from what policymakers are doing, you can be caught out. this surprised late friday. we saw an additional -- additional -- initial knee-jerk rally. let's remind ourselves how much this currency has moved. it has been steep. these are the charts. a lot of the arguments around why they have done this is to basically smooth out these

movements. they will not outright try to policieshe impact of using and china and the weakness on the currency. they are trying to smooth out movement and get away from really steep moves have seen in the declines of the currency. a lot of the traders and investors we spoke to on friday were saying and reaction to this, it is more about that than an outright move to reverse the currency. a lot of people who were short yuan against the dollar going in to a few months ago, this change in policy settings from the pboc, a lot of them wound back those shorts. made,ht speak to the move being slightly less vigorous. ramy: we will get a little bit of insight from pboc in a couple of hours when we see the next reference. earnings, the season continues to roll on with softbank and

hsbc according. with japan regaining its position as the second-biggest stock market, taking over china, can the earnings momentum sustain further gains? adam: i think what is happening in the earnings picture in japan is one of the reasons why people are still willing to kind of sit in the bullish camp. very depressed equity markets. as the flip happened friday with china getting back in that number two spot relative to china, what it, what it does is show you the long-term appetite still for solid earnings recovery and very depressed expectations. also in a lot of what is going on in the reform of colbert -- corporate culture, corporate governance, some of the long-term changes to make a market that is more investor

friendly, believing -- leaning towards buybacks and dividends. we are starting to see more of that over the last couple of years. this earnings season is reminding investors of that longer-term bullishness. even the valuation discount, i would not be surprised to see more money going into japan equities. the flip side and caveat is how the trade war plays out and how japan gets affected among that because the geopolitical risk and the kind of strengthening you get in the yen can have an impact on the earnings community. haidi: great deal of uncertainty. adam haigh there with us in sydney. you can look at the charts he referred to on gtv on your bloomberg terminal. the aussie dollar's recent reprieve may not last long with the u.s. and china sea the worst for iron ore's. leverage funds betting against currency. what to bring in the fx and

rates reporter. let me count the ways to shortly aussie. reporter: i don't think you can count on one hand how many reasons. the first reason is the trade war, we can't escape it. the australian dollar may be the casualty of this worsening trade tension. china is australia's largest trading partner. anything negative for china is negative for the aussie. iron ore prices. the typical commodity is becoming increasingly bearish. last month we saw australia's department of industry, innovation and science slashing .ts forecast negative for the aussie. largely to your point that you mentioned, the diverging interest rates. we have a central bank in australia that is trying to stimulate a sluggish economy by keeping rates on hold.

in the u.s. you have the federal reserve seemingly full steam ahead with raising interest rates. all of this is negative for australia. ramy: how are some industry players suggesting investors short the aussie? ruth: you have got wall street titans like morgan stanley suggesting traders short the aussie and failure to go along japanese yen and u.s. dollar. australia's dollar's top forecaster recently recommended shorting the aussie in favor for the yen at the 80.5 level. it was mentioned earlier in the show, leverage funds are taking .ote bearish bets against the australian dollar are at the highest level since february 2016. ramy: interesting. ruth carson, thank you. trade warow trump's may not play to america's

strength. the views of stephen kirchner from the university of sydney u.s. studies center. this is bloomberg. ♪ bloomberg. ♪

ramy: i'll come back. i'm ramy inocencio in new york. alix: i am haidi stroud-watts. president trump has been defending the tariffs that inflamed tensions between china and europe. supporters trade is his thing and the u.s. has the upper hand. joining us now, the director of trade and investment at sydney university u.s. studies center. playing hardball, the art of the deal, we know that is his thing, but is it getting us anywhere? >> i don't think it is and we have to because mystic about where it goes and if there is any agreement between the u.s. and china.

more likely scenario here is escalation of the tit-for-tat tariff war. haidi: i want to bring up a quick charge that shows the trade deficit relationship united states has with major trading partners. withow mathematically china that relationship allows china to retaliate like for like to a certain extent. what else can they do to make the situation more difficult for u.s. businesses? we have had a number of strategists say both sides will need to seal more pain. stephen: china is not limited to imposing tariffs on u.s. imports. there is a lot of havoc the chinese authorities could play with u.s. multinationals investing in china, in terms of the regulatory environments. there are nontariff barriers the chinese groups codirect. i don't think china is short of options in terms of prosecuting a trade war. haidi: and that aside with trump

going into november midterms with xi jinping, what are the rumors speculating about internal criticism, can either afford to back down? stephen: i think they are both vulnerable, trump especially. i am not sure trump is not miss cultivating the political impact the trade war with china will have. losses in the united states. that will escalate as the trade war escalates. nothe midterms, it he could be doing himself any favors through the trade war. haidi: of course we have gotten the news this weekend that beijing is threatening tariffs on $60 billion of goods. to what degree does this move the needle? showsn: i think it trump's approach to trying to get china to the negotiating table is not working.

that was the intention. i'm not entirely convinced donald trump is approaching in good faith. i think he is a protectionist. he believes protectionism is economically an official. so i think he is upping the ante . i'm not sure he is expecting resent to the negotiating table. there are people in the administration like u.s. trade representative mai tais are -- lighthizer who are stepping in for a trade war. haidi: you said -- ramy: you said it does not play to america's strengths. what do you mean? stephen: i think the u.s. has benefited honestly from being an open economy and not [indiscernible] china. so donald trump sees imports as cost to the u.s. economy but in many ways they are beneficial.

i think the u.s. has also benefited from an open international trading system, and what the of ministration is doing is putting that system under threat. haidi: even if beijing wanted to, and there would be some -- there has been a lot of talk , the structural reforms desire is clearly there, but that is not a short-term gain in play. when trump says china has to restructure and make economic changes, it is not a short-term win the president can claim. stephen: china has been restructuring for a long time and lowering tariff barriers unilaterally for a long time. the trump administration has this, a goal by shoving because it put liberalization in reverse. haidi: do you see this as being ideological? stephen: i think donald trump

has an anti-trade ideology, so if he doesn't recognize trade is mutually beneficial, and this is why he is preoccupied with trade balances some of which economically are not meaningful. in china i think what you will see is the chinese seeing this as catalyst it. you see the worst in terms of how china perceives its position in the world economy and i think this is what makes the trade war potentially disastrous because it is feeding into a mechanical view on both sides. ramy: while this is happening in terms of economic attack between the u.s. and china, there is --s increased structure australia now being involved. what do you think pushing back between the belt and road

initiative with these companies and more, what do you think the reaction would be here? are they late to the game on one belt, one road? stephen: it has been a long-standing position of the u.s. to give more economic content to its security relationships in the region. this was the focus of the obama administration's pivot to asia and the transpacific partnership was designed to achieve that objective. the u.s. pulling out of the tpp obviously undermines the asia-pacific strategy secretary of state pompeo was articulating last week. so i think what we are seeing in terms of the partnership is an attempt to fill the gaps being left on the u.s. withdrawal from tpp, and it is designed implicitly to counter china's b

ri. the secretary of state was trying to sign up to an alternative vision of the economic order in the region, one built around openness and transparency and where capital markets would lead the way in financing infrastructure and development. haidi: that opens questions on whether they should go between china and the united states and all the issues of trust further from there. , university of sydney professor, stephen kirchner. you can get a roundup of the stories you need to go in daybreak. on the go to dayb terminal. this is also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get news on industries and assets you care about. this is bloomberg. ♪ ♪

ramy: welcome back. i'm ramy inocencio in new york. haidi: i am haidi stroud-watts. the annual forum gets underway in the gold mining town of cargo really in western australia. our reporter is on the ground. what is the mood like? it is not a bad time to be an aussie gold miner. paul: that is right. the mood of this conference is typically upbeat. if you have a look at gold, the miners have swelling cash piles and very strong margins as well. the aussie gold miner valuations are on a par with the valuations of the north american peers for their first time in ever. futures that show this.

ine a look at gold price aussie dollars. it has been falling in u.s., but because the aussie has been offening, gold is only $160 the high from 2011 and 2016 when you price it in aussie dollars. this shows you the valuation of the australian gold miners compared to the u.s. peers. you can see outperforming. this would have been compared to m&a. what does that mean for the deal side of the digging? credit, 250 billion -- they are investing in london gold. also looking at potential u.s. deals are the evolution's j klein said they are considering m&a, nothing firm yet. they are looking at north american assets and adding to their portfolio. ramy: we cannot escape the trade

question, is the trade tension from u.s. and china and casting a shadow on the conference? paul: you can't avoid that question. -- the prize has been falling. copper has been falling. the price of iron ore is expected to decline. dependent very trade nation, and china is australia's number one customer. you really cannot avoid that question. we might get more insights on that question later today on bloomberg television. we will be joined by the former e.u. commission president. he is the keynote speaker at this conference. might get more insights into geopolitics and particularly the future of the brexit negotiations. that is something to watch out for. diggersul allen for the

conference. back to the forum later in daybreak asia to speak to water resources managing director mark .- that is 8:30 in hong kong later in bloomberg markets we will hear from the ceo's of northern star and independence group. and the former european commission president, now with goldman sachs international. let's do a quick check of business flash headlines. kraft heinz is said to have list of bidders for portfolio and indian business is it is selling including a children's milk drink. the tata group and consumer goods group topper india are among suitors selected for the second round of bidding. they are seeking $100 billion for the assets, more than 20 times earnings. haidi: they investigate the allegations of sexual harassment

and trying to foster a safe workplace at cbs. they rejected claims of a corporate culture hostile to women after a string of complaints against ceo les moonves. it outside law firms are investigating him. he will remain ceo during the inquiry. ramy: mission accomplished for tom cruise. mission impossible leaving little box office for the second straight weekend. this one added $111 million to a worldwide total of 300 million dollars. anlo mr. billionaire had impressive second week, bringing in $6,500, but it was muted for christopher robin. when he and -- managed $30 billion in ticket sales. haidi: that is a most it, but yvonne and remy will be up next with daybreak asia. happy monday. yvonne: happy monday. it is all about china here today.

authorities talking about late on friday levying tariffs on $60 billion of u.s. goods. an hour before that they were using measures to question the route in the renminbi as well. what does it mean for global markets? we have a strategist joining us on what this could mean. could we see rebound in the chinese equity market? he maintains a constructive you and thanks -- view and thanks a lot is priced in. not likely another major selloff. ramy: i will speak with proper stone head of research -- pepper stone head of research. how they can position themselves as we talk about trade tensions ramping up. we will see what is happening in terms of central banks. we have [indiscernible] the party continues with more central banks. haidi: we will be speaking to

the shanghai and hong kong hotels host. they are the oldest registered company in hong kong and run and operate the peninsula grande. this is bloomberg. ♪ this is bloomberg. ♪ two, down and back up.

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yvonne: it is 7:00 a.m. and we are live from bloomberg headquarters. welcome to "daybreak: asia." president trump reiterates his liking for tariffs, saying he has the upper hand on china. holding onto gains as the pboc raised the price in asia-pacific stocks. from bloomberg's global headquarters, i am remy innocence you know -- ramy. the weekend's virus will get the business, but it takes production as normal on monday.