president trump threatens iran. saudis say they don't want a war. a tech cold war. companies stop selling software to huawei as president trump says he's "very happy" with the trade war. and elections from india to australia have one thing in common. prime minister narendra modhi could retain power. david: welcome to "bloomberg after the lastay episode of "game of thrones," which we are not telling you about. alix: no spoilers. it's going to be ok because i've not seen it. david doesn't care, but i didn't see it. no spoilers. can i make it 24 hours without knowing anything? i think it's possible. david: the question is what does hbo do next.

but spoiler alert, brooks koepka won the pga championship yesterday. he made it sort of suspenseful. alix: but he didn't have dragons. [laughter] that everybody did really well on that. wasn't it superhard? david: it's a really hard golf course, and there was really bad wind. at one point there were 30 mile an hour winds. alix: in the markets, it is a little softer for the equity market. it is a mixed currency story. we'll discuss that for the next couple of hours. australia having a monster rally. crude up 6/10 of 1%. still a slight risk off tone. today, weing up later are going to hear from fed chair jay powell, as well as vice

chair richard clarida. on tuesday, home depot reports earnings. the federal reserve releases its minutes from the meeting earlier this month. thursday, european parliament told -- european parliamentary elections begin. that is all coming up this week. right now we turn to bloomberg first take. we are joined by marty schenker and lisa abramowicz. trade, now they say national security. we will put up a list of companies now they cannot do business with huawei. marty: it was a fascinating development this week when google, and particular, said it would not offer certain aspects of its products to huawei, which means the bones ch meansof -- whi

those phones will not have access. trump, talking to fox, saying i'm happy with how this is going. lisa: he seems to be doubling down on this, but so are democrats. i think this is really important. bipartisan coalition of senators have been having briefings with tech companies, potentialem of espionage by chinese companies like huawei. this indicates that even if in 2020 president trump loses, it's not like there will be much of a softening of stances. a bipartisan coalition seems to be digging in its heels on these issues. david: in the chinese don't seem to be particularly worried at this point. they take a much longer term view, but i think it is

more serious than they let on. it could impact their ability to reach their ambition of becoming a dominant economy in the years ahead. alix: let's turn to our next story, and that is oil. you're seeing oil up by about 7/10 of 1%. what is interesting to me, data dependency is what we learn from the joint technical committee. lisa: right now they are trying to tread this needle. they don't know what is going to happen with the trade war, whether that will slow demand. they don't know whether iran is going to go totally off-line. they don't know about libya. they are willing to risk prices going up rather than going down. i don't know if it is because of their budget deficits. alix is shaking her head. they clearly have a bias towards pushing prices higher, and they

continue to cut production even though there are all these risks potentially disrupt supply. alix: they did say that they are not seeing the kind of hole in the markets that they thought. they are not seeing a lot of extra orders to make up iran's lost production. david: but president trump is certainly not backing off of iran. it is pretty clear what his position is. >> 2016, i liked it when you said no more stupid wars. now to hear these stories -- pres. trump: i just don't want them to have nuclear weapons, and they can't be threatening us. with everything that's going on, and i'm not one that believes -- i'm not somebody that wants to go into war because war herds economies, hurts people most importantly, by far most important. --id: the saudi radiance say the iranians say we don't want

to go to war, but we are ready to defend ourselves. arty: this is misinterpretation of activities on both sides. to aaudi arabians reacted saide report that the u.s. was going to attack. let's turn from war to democracy. a couple of big elections over the weekend, australia and india. scott morrison really pulled out a surprise on the australian side. he's right of center. 's government is coming back in with the majority -- his government is coming back in with majority. he's very pleased he won the election. marty: i'm sure he is. david: he really campaigned on ring the economy back, and tax cuts -- on bringing the economy back, and tax cuts in

particular. marty: he called it a miracle, and by all measures it sort of was. what is interesting to me is the promise to crack down on banks and raise taxes on wealthy individuals, and the australians basically said no, we like things the way they are, so morrison has a majority and can implement some real economic change. alix: the question is, does it help that there is a trade war and china is also struggling? a week ago it was about cutting rates, and now this. lisa: what i find interesting with both the australian and indian elections is the fact that we are looking at the more populist, radical, left-leaning governments not winning. this is different. i thing it is really important to highlight this because we were talking about the wave of populism. this is the opposite. this is people saying we are not willing to risk some sort of financial collapse or paying for some of these plans that seem infeasible.

we want to stick with what we've got and try to stay the middle ground, which is divergent from what we saw a couple of years ago. david: but whether it is populist or not, it is about my pocketbook. what is going to help me? marty: and i caution everyone to put that in the context of the 2020 elections. conventional the wisdom is that he can be beaten. everyone should take a deep breath. it's a long time until the next elections, and right now donald trump is the one to beat. votedall these areas that and we didn't know how they were going to vote, that sounded totally like 2016 to me. david: we do have a stronger economy in the united states, and that is good if it keeps up. alix: i keep telling everyone that, and they get mad at me. [laughter] alix: you can find all of the charts we use and more. go to gtv on your terminal. coming up on this program, more on the ripple effects of

president trump's huawei ban. this is bloomberg. ♪

♪ reporter: this is "bloomberg daybreak." top american companies are complying with a trump administration crackdown on chinese telecom equipment maker huawei. bloomberg has learned chipmakers qualcomm and broadcom will not sell to huawei until further notice. google has cut off the sale of hardware and some software. t-mobile and sprint are ready to offer more concessions to get the u.s. government to ok their $26.5 billion merger.

they will promise to sell one of their prepaid brands and pledge not to raise prices while their 5g network is being built. deutsche bank's largest shareholder will not vote on the performance of management at today's annual meeting. bloomberg has learned blackrock's outsourcing its vote to a specialized company for regulatory reasons. the meeting is likely to be contentious. the world's biggest shareholder advisory firms are recommending to vote against deutsche bank management and supervisory board. that is your bloomberg business flash. david: thanks so much. the united states trade to speed with china increasingly focuses on tech as huawei suppliers stop doing business with the telecom giant. fromlcome now massachusetts matt bailey. let's focus on tech right now. much moreoming focused with respect to chip

manufacturers, and google as well. how big a problem is this potentially for stocks? guest: i think it causes a further problem, and i think it will cause the market to see a lower low then we saw a week and a half ago. not necessarily below the december lows, but it really hits us on two fronts. it shows that the trade tensions are escalating in the breakdown in talks will not turn around anytime soon, but for the tech stocks, they were already showing some signs of weakness even before president trump changed his outlook or broke down their comments on the negotiations on the trade side. we heard several companies talking about weaker guidance in terms of sales, profits, demand, et cetera. this just makes the situation worse. of course, the tech stocks, especially semiconductors, where

a key factor in the rally after the december lows. alix: what is hard to do is quantify what that actually means for the overall market. if you come inside the bloomberg, bloomberg took at all the calls. bears.ls and the where do you sit? how do you play it? matt: we are looking at something that could be 7% to 10% correction. the market was already overbought, priced for per section -- priced for perfection. it was certainly pricing in a trade agreement. the uncertainties that have come in the last two weeks tell us that the pricing for perfection isn't going to work, and we have to reprice. i was already thinking we would see a 3% to 5% correction, and now that the uncertainty is out could gothink it from 7% to 10%. i think you get down to the 2650

range, but that is not the worst thing in the world. we had a 25% rally in four months. it creates opportunities. david: what do you make of the stubbornness of the spx investors right now, the s&p? we will put a chart up here. last week was a really rocky road. just about every morning, we started with s&p futures down, and just about every day we came back well past where we started. it looks like people don't want to go to that correction. they are going to buy on the di p, as it were. matt: that. certainly seems to be the case the old saying -- that certainly seems to be the case. the old saying goes if we get a change in the facts, you will get a change of my opinion. you would think they would come a little more bearish over the near-term, but i think it is a sign of complacency. a lot of people are assuming the

federal reserve is going to bail us out just like they did in december and have over the last 10 years. the problem with that is are they really going to come back after just a 4.5% pullback, or what it have to be much worse? and that is assuming the fed is going to do that. we have the chairman and vice chairman speaking today, so it is going to be interesting to see if they address this issue at all. my feeling is they are going to avoid it, and that could cause a little more weakness. therefore, the people who are less willing to buy on every single little dip. alix: you're right, we are not going to buy the dip as quickly as before, but when did you get in? what is the opportunity? matt: i think this will be dragged out more than a few weeks. i think it will be several months, the trade problem. the uncertainty that that of the real

uncertainty is what kind of bounce back we get in the economy and earnings, especially in the fourth quarter, that everybody is depending on to give us an extra boost in the second half? right now as you go into these stocks, they have a record of increasing their dividend over time. you step back and say, what are my favorite stocks over the long-term? what levels do i like them? are they down 10% from their highs, 12%? be prepared so that when we get that pullback, if we get a 10% correction, it is going to scare a few people. but you will be able to take advantage of that opportunity instead of selling at the worst time. david: you say it is going to take a little longer than we thought. let's give you a hypothetical. a year from now, we have tariffs on all chinese imports and things have resolved. where is the market -- things haven't resolved. where is the market then? matt: then we could be looking

at something deeper. the president is going to stick with this and play hardball because it does well for my base, and if it doesn't work out and we get a slowdown in the economy, i will just blame it on the fed. i don't think that is necessarily the greatest strategy in the world, and i am not convinced that the fed is there to automatically boost the market and shoot it higher like they did over the last 10 years. now i think they are more concerned about bubbles and things like that, and stabilizing the economy, not boosting it. we could easily get a retest of those december lows we saw 20% below the all-time high. it would scare a lot of people. alix: all right, matt. we will come back. coming up, oil trading higher as opec and its allies wrap up their meeting in saudi arabia. we will go over the issues iran poses to the market. this is bloomberg. ♪

alix: opec and its allies meeting over the weekend aides how to raid via, discussing everything -- in saudi arabia, discussing everything from output to iran. >> saudi arabia, we are not going to deviate from our targets for july in anticipation of either a decrease or increase for our target. we are going to commit and take an extra month, and hope my other colleagues will do the same. alix: joining us now is annmarie hordern of bloomberg news. how prevalent was that thought among the rest of the ministers at the meeting this weekend? annmarie: it is really crucial leading up to this june meeting, really laying the groundwork to

see where people's thinking was ahead of this meeting. clear thatt is very they want to stay the course. i can't tell you how many times i've heard the minister say they need to ease inventories. inventories are rising too much. they need to get back to a healthy five year average. it is such an interesting scenario in june. alexander novak, while he didn't say either way, said that russia would comply if they strike a deal, but he did seem more keen on easing the cuts and producing. he talked about significant black swans in the market right now like venezuela, iran, even and thesupplies contaminated oil crisis. the problem is saudi is cutting the deep end. if they were to roll over the cuts, the saudi's could increase under the same scenario, but russia only just came into

compliance in the first few months of may, so they would not really be able to increase if they were to roll over and keep the same quota. alix: i'm glad you brought that up. we have a chart that shows just how much under the quota saudi arabia has been producing, meaning they can produce more and uphold the agreement, but they are kind of the only one. under what kind of scenario could they increase production, but still keep some kind of reasonable support for prices? annmarie: this would be it. lot ofeem to be a courses that would rollover. it seems like the russians would be more keen. we are hearing that russian oil companies don't want to be under a lease, but really it is only the saudis that have that leverage. they could do it overall cap for the group as a whole, and that is the way for the saudis to get a deal and the russians able to pump over their quotas.

it is potentially a bit of a debate between the two biggest producers of this group, russia representing the plus side, and the saudis representing the opec side when it comes in june. they still say they want to monitor what is happening in the market. how much oil is coming from iran, as well as exports and freefall from venezuela. they say all of this can change in the next few weeks. alix: thank you very much. president trump over the weekend weighing in on threats posed by iran in an interview with fox news. >> 2016, i liked it when you said no more stupid wars. now here are these stories about troops. pres. trump: i just don't want them to have nuclear weapons, and they can be threatening us. with all of everything that's going on, and i not one that believes -- i'm not nobody that wants to go into war because war hurts economies. war kills people, most importantly, by farmers to importantly -- by far most

importantly. alix: matt maley is still with us. do you like high or lower oil prices? been thinking the price would go a little higher, but i just worry about a situation with iran and venezuela. it is interesting that the president talked about, "i don't want them to have nuclear weapons." this is an issue with north korea because one of the things that ticker terry of state pompeo has said -- that secretary of state pompeo is the real reason we don't want north korea to have nuclear weapons is because they have it tendency to sell their military capabilities, so the concern is they would sell to iran. it all kind of interminable's with one another. -- it all kind of intermingles with one another. i think with the election coming up, saudi arabia, after the murder of the journalist last

year, the president really had their back. i think we've got a little bit closer relationship with the saudis then we had not that long ago. they are going to do what keep prices more stable and in these areas rather than taking off too much, which would hurt the president in the election. maley, thank you very much. what is interesting when we talk about this is the energy stocks not keeping pace. david: that has been the pattern for some time. alix: which maybe means this is a short term thing. exit polls signature that narendra modi's ruling coalition is poised to stay in power. more on india next. ♪

alix: this is "bloomberg daybreak." a little but of a risk off tone developing in the markets. for the s&p.s down

european stocks also getting hit. there are headlines on two from "the new york times." david: they have their shareholder meeting coming up on thursday. there's going to be a real fight over the management of the company. alix: that downgrade not helping. in other asset classes, the aussie dollar up by 7/10 of 1%. surprise elections, when you have the potential for the status quo to continue. we want progrowth. let's see if we can keep doing it. also a similar story when it comes to the rupee. it feels like all idiosyncratic to me today. david: we will find out. here's some news outside of the business world. reporter: president trump warns

that iran faces ruin if it wants , tweeting thats. if iran wants more, "that would be the official end of iran." he later told fox news he doesn't want the iranians to have nuclear weapons. the president also suggested he is not looking for a military confrontation. british prime minister theresa may is promising a bold new offer to improve the brexit deal she wants parliament to approve. many members of the conservative party have moved on, focused on the bidder leadership race to succeed her. a group of about 60 conservatives will try to stop boris johnson. austria, the chancellor is going for broke. his nationalist deputy resigned over a video promising support for campaign funds.

europe's youngest leader could rule alone, but is only at 34% in the polls. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. david: quite a story in austria over the weekend. in 26 hours from when this first came out to when they had to form a new government, essentially. it can't be a coincidence we have european parliamentary elections this week. alix: and how convenient? if you do get a majority, you get to rule alone. david: all of a sudden that shows up, and it is not just pay to play. it also involves the russians. coming against the populist wave in europe. even true,e video is the timing always lends itself

to imposition. david: let's move from austria to australia. australian prime minister scott morrison is a happy man this morning after his center-right government earned a majority in parliament. pm morrison: i have always believed in miracles. [cheers and applause] morrison: and tonight, we've been delivered another one. how good is australia? david: we welcome now from london bloomberg news' intern ational executive editor. there's been a lot of turnover in the prime minister ship in australia. does this surprise resounding victory indicate that maybe we will have some stability down there for a while? reporter: certainly it was an

exceptional surprise over the weekend. everybody expected that scott morrison's government was going to lose, and we got that very surprising result on the night. what that has given him is an increased mandate. he's possibly going to get his majority back in the lower house of parliament. we are still seeing how the senate plays out, but it may be quite favorable for him to get his agenda through. they are already saying they will push ahead with some promised tax cuts, perhaps as soon as the next month or so when parliament resumes. what it would mean in the upper house is he will have a much clearer view to get his liberal policies through. on the social side, that means we will see a hard line on things like immigration and climate change. david: socially conservative, but progrowth. how are markets reacting? rosalind: the markets reacted

positively, though they tend to not react hugely to australian elections because the economy tends to run itself. everyone expected that as of today, we would have a different government in australia. not only did that not happen, but scott morrison is back, stronger than ever. perhaps he might be able to see through an entire turbine australia, which has been slightly unusual in recent years. thank you so much for reporting from london. ieson.s rosalind math alix: is that how it is going to be for everybody now? that's unfortunate. political headlines also bubbled up in headlines over the weekend, from argentina to india's never intro modi -- india's narendra modi.

>> we've been very selective in emerging markets. >> emerging markets is not homogenous. this is an evolving story, so it is careful to not overreact. >> there are a lot of emerging market economies that are domestic demand driven. a few places are brazil and south africa. >> the biggest beneficiary is going to be taiwan, and then southeast asia. >> we don't expect a big impact for them. >> we are interested in places like brazil. a lot of reform going on there. and india. those are two countries where you will not be very much affected by what is happening in china and the trade disputes. alix: joining us now is sean taylor, dws chief investment officer for asia-pacific equities. dws is part of deutsche bank. thank you for joining us. we will start off with india. do you want to buy on this

election happiness? guest: we've already been position for the election, so it has been quite a turbulent year for politics, and it was looking like maybe he wouldn't get in because he had quite a nationalist agenda. issueser the terrorist in pakistan, he became much more popular, and here we are with him looking like he's going to get more votes than we thought. let's see what actually happens in the next couple of days. it is good news for india, good news for the economy going forward. david: is it too much to say there's some parallels between narendra modi and scott morrison in australia? economicho embraces stabilization and progrowth. can he get it done this time? sean: i think he did a lot more than the population realizes, and i think the market has given him the benefit of the doubt.

the problem is when modi came in, the markets had already rallied. we probably paused for a while, but it is a good safe investment. we've always said it is the best long-term investment in asia. david: one of the issues in india is jobs. they need a lot of job creation. what can mr. modi do that is consistent with the market in creating jobs? sean: he's laid down the foundation of an investment cycle, but he needs the banks to be really strong and sorted out. the public banks are in a really bad state. they need to be reformed. you need capital that can be lent, and then you can get the economy going at a lower level. alix: can we talk about india versus brazil? you can the reformist coming income a bolsonaro -- coming in, bolsonaro. you rally for a year, and then

what's next? sean: over the last couple of years, they've been really taking money and putting it into equities, and that's made it more stable. brazil is quite binary. people were worried about the sovereign rate and how they were going to pay their debts. then bolsonaro came in and there was a huge rally, and he got more votes than people thought, which is good. rally,ow, after the having the real hard issues of how he gets those bills through parliament. what's he does that -- once he does that, i think brazil will be in a good step. david: we will continue to spend time on the u.s./china trade dispute. how certain em countries stand to benefit from that? sean: the export side of all emerging markets is going to come under pressure.

the markets are being quite sanguine about that at the moment. but overall, trade is going to go down over this or be delayed, particularly in taiwan and korea. when i hearurprised people say they will be beneficiaries of this. i think they will suffer. we have a great situation with the fed on hold. a lot of countries and emerging markets can cut rates. it is really focused on domestic growth. so the to domestic part of china , india, thailand, and brazil. alix: what does that wind up meeting for the carry trade? we have the em carry trade index that fell below the 200 day moving average. there's some reversing is the trade war comes under pressure. is it dead? sean: i don't think so. that reversal is because the dollar is stronger.

if the fed is on hold in the dollar doesn't rise too much, you will have a very good pickup yield. we prefer emerging-market hard currency to european high-yield and u.s. high-yield. david: emerging markets cover a wide range of countries. what is the one that is least well priced? that is to say, most discounted, and there is opportunity? sean: i think chinese domestic equities. they will get sold off more in this trade issue, and i think the chinese economy is stabilizing. alix: what do you do with tech? in some ways, tech on the consumer side would be good for china, but it is most exposed to a trade war. sean: i think you break it up between e-commerce. the problem is they are not going to be hurt by underlying the domestic economy in china, but with the adr people will

think it is china, so be cautious there. techstill underweight because i think the apple supply chain plus the global semiconductor chain is still under pressure anyway. i think what will happen is that people expect that to recover in the second half of the year and the dow will be whether earnings come through. domestic. is stated the other thing probably not talked about enough is that asia is buying asia. the biggest demand for bonds in asia is asian investors themselves. that is the same in equities. the biggest driver of chinese equities is the chinese, both offshore and onshore. and look at the flows in india. the domestic fund management industry is growing really quickly, and that was not the case is ago. david: that is a good point -- not the case years ago. david: that is a good point. thank you so much for being with us. we will have special coverage of the indian elections as the

results come in. coming up, "the new york times" andrts that president trump son-in-law jared kushner's correspondence with deutsche bank sparked concerns. this is bloomberg. ♪

♪ kailey: -- reporter: this is "bloomberg daybreak." coming up in the next hour, ryanair's ceo. ♪ risk a kuchta -- reporter:

coming up, shares are plummeting for the payment company no working with a tour operator, winning to extend the period for which it keeps payments for trips. the company is struggling with debt and mounting losses. sony spent almost two decades fighting microsoft in the video console market. analysts warning that tesla faces a "kilimanjaro like uphill climb" to make profit in the second half of the year. the note described the electric carmaker's predicament as a code red situation. they used to be one of the most bullis analysts -- one of the

most bullish analysts covering tesla. that is your bloomberg business flash. alix: thank you so much. we turn now to wall street beat. first up, suspicious trump transactions over deutsche bank. anti-moneynk's laundering specialist flag suspicious activity in president trump's and jared kushner's accounts. and a billionaire clears 2019 loans. robert smith tells morehouse college's 2019 graduating class they will pay off their student loans. david: i love that story. joining us now is soon ali onali basak.s s this deutsche bank story is out of "the new york times." this did not go to regulators because people for the bank said

it is not that bad. reporter: this is definitely a problem we've seen at deutsche bank before. we saw it with danske, one of the biggest money laundering issues of all time. it has become a trend, and we will look at why it wasn't cleared up earlier. the issues in "the new york times" were flagged in 2015, and they did find some specific vicious -- some suspicious activity between donald trump, the kushners, and russian individuals. david: president trump saying it is fake news, interestingly the part he is saying is fake is that all banks would like to deal with me. alix: not anything else. everyone wants to be my friend. [laughter] reporter: this has been a really tumultuous relationship over a long period of time. a lot of jp morgan executives, when they moved over to deutsche bank come about their relationship with donald trump as well. alix: moving to business that

should and shouldn't be done, this is a great morgan stanley story. a silicon valley whisperer, is what he's known as, people of the sky. uberi: even after fluctuating all of last week, defense.is something we found interesting in this story is he was pitching margin stanley -- pitching morgan stanley's advisors to the retail network who might not be so happy with their uber stock. alix: fair, but nonetheless, it is also the idea that you can mess up, but if you have the connections, you are going to be just fine. sonali: you are betting on unicorns. not everything is going to be a success. ,o now he's pitching airbnb wework. david: that is the real question.

will they get the next piece of business? we will see how that works out. the third story, morehouse college's robert smith is giving the commencement address, and says i will pay off all of the student loans for all of the people in the morehouse class of 2019. sonali: and he didn't even go there. he's the richest black man in america, pledging to giveaway half of his net worth. have you ever seen anything like this? david: now. alix: never. and it is about $40 million, they are saying, for 400 graduating seniors. it surprised everybody in the audience as well. the president of the university is still in discussions to figure out how this money is going to be doled out. we would like to see if other people follow. very a very -- he has a interesting background as well. he grew up in a middle-class neighborhood.

he says it has been hard in the financial industry. david: it is interesting how private wealth individuals are -- are stepping up. it is extreme airy -- it is extraordinary. it is definitely a trend we are seeing, but the tuition aspect of this and the student loan forgiveness is something we want to see more people take care of. alix: but if you talk to some experts in the field, they don't think college should be free. they think you should have to pay for it, to work your way and value the education more. so in a case like this, you thought you were going to have all these loans and still work hard, and then get them paid off. sonali: it is definitely controversial, but overall, a lot of kids are pretty happy right now. alix: that is pretty awesome. i remember the day i paid mine

off. sonali, thank you so much. coming up, winter is finally over. megahitle of hbo's "game of thrones" was last night. . no spoilers. that's what i'm watching next. if you have a bloomberg terminal, check out tv . you can interact with us directly. ask us a question. gtv . this is bloomberg. ♪

♪ alix: here's what i'm watching, "game of thrones." love it or hate it, i haven't seen it. but when i want to talk about is fans' dislike of season eight. there is a comparison of major shows and what their overall viewership was. seasoname of thrones,"

eight viewership has really gone down. david: you hope it is going to build as you get into the finale. "the wall street journal" basically saying it didn't build. alix: it did not. wherethe sopranos," people pretty much universally hated that ending scene, they said the finale was on par with the overall ending score. same thing for "breaking bad." keeping pretty much right in line with what the overall viewership was. david: this is fascinating. if you look at the available audience watches, for "game of it is higher than what was for "friends." it used to be that only a small french portion of the population was paying for hbo -- small fringe portion of the populace was paying for hbo. what theyaordinary

have delivered. alix: but will also be interesting is who is canceling their hbo subscription today. there was basically a huge promo for, don't go away, we have all of these shows coming out this year. david: and they are doing a prequel of "game of thrones." alix: it didn't do well for "battle star," so we will see about that. we will see if people actually keep it. david: with a new owner, at&t. no pressure. alix: coming up on this program, liz young, bny mellon, will be joining us on an interesting day for the market. this is bloomberg. ♪

♪ alix: president trump talks

about the ends of iran. saudis said they don't want a war. opec holds back on pumping more oil. companies from google to intel stop selling software components to huawei as president trump says he is happy with the trade war. earningsg crushed on as the company blames -- and -- blameses boeing, crushed on earnings as the company blames the grounding of the 737 max. david: president trump tweeting on that report on deutsche bank this morning about suspicious activity. alix: so forget any of the headlines on money laundering or anything like that. guys, everybody wanted to do

business with me. and i built a great business. alix: so there was some ego in that tweet, but the reality is deutsche bank stock is at another record low. there's that story. , andighlighted the meeting he downgrade from analysts as well. in the equity market, and other markets, to me it is this idiosyncratic factor in the rest of the market. a risk off field. in the currency market, that feels a little more risk on when it comes to things like the aussie dollar. you're seeing a little buying on the back end of the curve, but no real movement in commodities. crewed up by 4/10 of 1%. 1%crude up by four tense of

-- up by 4/10 of 1%. the federal reserve will release minutes from fomc meetings earlier this month. thursday we begin european parliamentary elections in the united kingdom. friday, the u.s. releases durable goods orders for the month of april. meeting, discussing everything from production to iran. >> saudi arabia, we are not going to deviate from our targets for july in anticipation of either a decrease or an increase for our target. to take an extra month and hope that my other colleagues will not jump the gun. alix: joining us now is annmarie hordern of bloomberg news. do the other ministers and russia agree with the data

dependency talk we just heard about? annmarie: they were completely overcome plan for this month, 100 68% -- completely over compliant for this month, 168%. the physical market is quite tight right now. still, he says they want to stay the course. he spoke about the rising inventories around the world and how he thinks the group needs to continue to ease inventories and stock builds. but as you say, what do the other group members think? alexander novak from russia, they were a little more open about the fact that they could open up the taps and produce more. alexander novak talking about a number of significant black swans in the market, leading them to think that they still want to wait and see before they decide to keep the cuts or potentially pump more in june. alix: all right, thank you very

much. david: technology has been at the center of president trump's agenda on trade since the very beginning, and it has taken new importance with the banning of u.s. companies doing business with chinese telecom giant huawei, putting increased pressure on companies doing business with huawei. we welcome now bny mellon investment management's liz young. we have momentum now saying that they will not be able to supply to huawei. in the premarket, down over 7%. we seem qualcomm, intel. it is really cascading. how big a problem does this pose for the market more broadly? liz: it is definitely more aggressive than we have seen so far. one of the things that has been interesting about the trade reddick -- the trade rhetoric as we focus a lot on tariffs on materials and other goods, but really the target has always

been technology. the fact that we are taking a more aggressive stance in a more targeted way i think is probably indicative of the end game. david: this is a very different phase potentially of this tussle with china. it is not clear what huawei and china can do to fix this problem. liz: right. that is a perfect point. up until this point, it has been about other things, and it still is. really what we are arguing about his tariffs on the goods that are already in place. that is not going to go away, but it is two different hands. i think we will probably figure that out later this year, and that will be positive for the market. but what we've been saying this whole time it's it is still just a chapter in this book, and the book isn't written yet. this continued argument is probably going to go through the election. alix: fair, and that is putting

some binary options for the market. if you come inside to bloomberg, the bold case for trade is 3200, the bear is 2550. how do you invest with that? liz: the bear case seems a little low to me, but i agree that it is difficult for an investor to balance the near-term headwinds and volatility we will contain new to see, probably -- we will continue to see, probably through the end of june. what investors have experienced even over the last 10 years is the most hated bull market. we don't want to experience that on little bits as we go. so making sure you are still invested in equities and exposed to the economy, but being careful that in the meantime, you are not suffering all of those sharp drawdowns. david: a hated bull market, but a stubborn old market. just -- a stubborn bull market.

just look at last week. pretty much every day, s&p futures were down, and once they started trading, it came back up again, often better than the beginning of the day. it was quite extraordinary. are investors more sensible, not overreacting on the day-to-day? or are they overly optimistic? are they complacent? liz: i think there's an element of both. when we start days more negative than we end them, i think that is an indication that we are overreacting, but we are overreacting to news very quickly, and sometimes that is noise. there is a risk here of having too much information. we don't need to react to every single sentence and headline. what has been happening is that is exactly what is taking place. alix: so, what do you do? are you buying the dip? are you waiting for a bigger one? are you in a holding position? liz: first and foremost, i think

you continue to sell the rally in tech. if we have an update, you can trim at the margins -- have an up day, you can trim at the margins, because that is the place that trump will continue targeting. when you have dips without a recession, and we don't see a recession still this year, those are buying opportunities. but where i would be buying it some economically sensitive names that aren't super beta. you still want to own the industrials and consumer. alix: coming up, ryanair annual profit falling by 39% as fare wars and weaker economies way on traffic. this is bloomberg. ♪

reporter: this is "bloomberg daybreak." top american companies are complying with a trump administration crackdown on chinese telecom equipment maker huawei. bloomberg has learned that chipmakers qualcomm, xilinx, and broadcom will not sell to huawei until further notice. google has cut off the sale of hardware and some software. t-mobile and sprint are ready to offer more concessions to get the u.k. government -- the u.s. government to ok there $25 billion merger. they have promised to sell one of their prepaid brands and will pledge not to raise prices while their 5g network is being built. cook plungedthomas to record lows, and shares are

company wantsthe to extend the period for which it keeps payments for trips. company is struggling with debt and mounting losses. that is your bloomberg business flash. alix: thank you. . losses,reporting they could tumble even more. they say the grounding of boeing planes could limit their ability to cut costs. joining us is ryanair ceo michael o'leary. help us understand what part of it is overcapacity in the airlines versus boeing. the last 12 months, very little of it is boeing. there is a huge decline in airfare. from our point of view, this is

a good time for us to invest. prices are falling. we are the lowest unit cost producer in the industry. but it is temporary. pricing will restore itself. you see more and more competitors getting taken out of the market. europe is where north america was 10 years ago. we are consolidating. you see this morning thomas cook under pressure. there will be those and a few others that will disappear this winter. in the market, pricing will return. meanwhile, ryanair continues to have the lowest cost in the marketplace. we've demonstrated our confidence in the business financing a 700 million euros share buyback. david: is thomas cook a buying opportunity for their airline? the airline is, i would describe as dog. they have very old aircraft. there's no traders.

david: as you describe the aviation market, things have got to shake out. you got to lose some competitors. why does ryanair have more staying power? michael: because in any price war, the lowest cost operator wins. there, by some distance, lowest cost operator in europe. the numbers are all pricing. andlook at our unit costs, the aircraft has a huge role in that. we've ordered those. they have 16% level fuel consumption. they will transform our business , but the consolidation will play out. it would have happened last winter except spot oil fell to under $50. it is back up in the mid-70's now. if it stays there in a lower price environment, you will see some of these guys taken out this winter. alix: that is specific to the

industry. then you have the boeing issue. what kind of drag is it going to be? michael: for us, it is an inconvenience. we were hosting five of the max aircraft in advance of the summer. we've taken those off sale for the entire summer period. we have 44 of these aircraft do to be delivered next winter for summer 2020. we think by that time, we will take all of those planes. we expect the faa to return the aircraft to service in the united states in late june, early july. there's a delay in these cost-efficient aircraft which has hit our costs. we expect our costs next year to be flat side down. the delayed delivery of these airplanes is a significant proportion -- is a significant portion of that unit cost spike. boeing andy 737 max

lost the confidence of the airline industry, but also the passengers? are people going to say i'm not sure i want to go on that plane? michael: i don't think so. the industry generally believes the airplane will be back flying june or july this year in north america. some yearsto the 787 ago, the airplane was grounded for a. months. period of we believe it will be back flying in june or july. we take our first aircraft in november, so for five months behind the return to service. we see no indication yet from passengers that there is any concern about the max aircraft. once they fly it, much like the 787, they will of the aircraft. alix: and now teslas are going to blow up instead. [laughter] alix: what kind of compensation

might you seek from boeing in the meantime? michael: it depends on when we get the aircraft back. our impact is limited. we had to take five aircraft off this summer. i think we will address those issues bilaterally with boeing. we have a very good relationship with boeing. we are by far their largest company -- their largest consumer in europe. timeframe, that if deliveries are pushed back to this date, we will have to have serious conversations? michael: the real date for us would be next summer. if there was something that prevented the aircraft for peak season 2020, that would hurt our capacity growth next summer. we don't see that happening. we have utmost confidence in the aircraft. it is a great aircraft. there has been this issue with

the software. i think if you get it resolved like that problem number of years ago. david: let's talk about brexit. we talked about that in the past, and you were saying they are going to sort this thing out or it could really interfere with air traffic in europe. we thought a hard brexit was off the table. now it might be coming back. how big a problem is that for you? michael: it is an inconvenience in the short term because it definitely disrupts consumer confidence in the u.k. bookings are down, consumer confidence is low. i think the technical issue seems to have gone away. there's at least been an agreement by both u.k. and europe that even if there is a hard brexit, there will be no issues over ownership for a until 2020. we would restrict the ownership

and voting rights of non-eu shareholders in a hard brexit scenario, but remain cautiously optimistic that there won't be a hard brexit. i think there will be a brexit in name only and that we will have a customs agreement. david: as you look at buying opportunities, are there particular areas you are interested in that you don't have right now? michael: the best opportunity we see at the moment is buying ryanair stock. david: well played. [laughter] david: what's the second-best buying opportunity? michael: i think genuinely the interesting opportunity is talking to boeing about new aircraft orders. we havetoys hundred -- 200 until 2023. i think once they get every thing in place, they need to get some aircraft orders. we are very keen, as we said to kevin mcallister and the guys, about new aircraft orders.

david: they could use the business. michael: i think boeing needs the orders, and ryanair has the cash if the order is right. alix: really great to talk to you. coming up, boeing admitting there was a plot in the -- there 737 maxlaw in the flight simulators. that's coming up. this is bloomberg. ♪

♪ david: time now to look at three companies worth watching this morning. t-mobile and sprint back at it again, trying to get this deal passed antitrust in the united states. it turns out if they put t-mobile and sprint together, they have a lot of prepaid business. 42% market share. i didn't realize that. alix: sony and microsoft teamed up last week.

great reporting from bloomberg shows the people who worked on the gaming technology for sony were totally blindsided. decadesically spent two competing against microsoft, and all your friends. david: it's not like the cloud -- and all your friends. david: it's not like the cloud is important for gaming. the third we are watching his boeing. brooke sutherland joins us now. now it is the simulator. brooke: the hits keep coming for boeing. you have to sympathize. there's something new every day. the latest development is the simulators boeing had to test out the conditions for flying the 737 max did not accurately reflect the significant amount of force that could be put on theplane's nose from software system implicated in both fatal crashes. if you remember, the pilots on that plane seems to be trying to

follow the protocol boeing put in place to override that system, but the plane was moving at such a high speed, there was so much force on that knows that they could not corrected. now you are finding out the simulators would not have shown them what that would be like in the first place. david: i keep coming back to the days after the crashes when people say it was the pilots' fault, but they were doing everything they could do and more. brooke: exactly, and boeing did not tell them about this in the first place. the airlines are all going to get together and talk about what they need to see, what they are hoping to see to put this plane back in the sky. i imagine that would be a common refrain, that pilots were not properly informed of what was on this plane. alix: liz, boeing, do you like it? liz: i think the big concern here is really trust. people's lives are at stake. if you are putting people on a plane and they didn't have all the information about how to operate said plane, that is

obviously an issue. i think the trust has kind of broken down here. effector overall is ok, but you don't want to see a bellwether like boeing -- the factor overall is ok, but you don't want to see a bellwether like boeing getting hit like this. david: it is not enough to say we will be better. say we'veny moved to got to see some change within boeing? brooke: they did get questions about this at their annual meeting. the ceo was asked, do you think you will still be in your job? he sort of defended what boeing was doing, but the longer this goes on, the more the question comes up. the stock has been relatively ok. i think that is a reflation of the fact that this is a duopoly business. you have boeing and airbus, and not a lot of other choices. but the more this goes on, the more these questions come up. alix: with the dreamliner, though, that was solved.

why is this so different? brooke: first of all, people died in this case. au had two crashes were significant number of people died. never had thatu fatality count, so it is a different mental situation. i also think you shouldn't discount the public perception factor. 787 was when the happening, you didn't have these things like twitter and facebook. alix: that is a great point. brooke sutherland, thank you so much. liz young will be sticking with us. standard, we speak to life aberdeen advice chairman. this is bloomberg. ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. >> this is "bloomberg daybreak." happy monday. equity futures not holding so well here. .7, 1%.off by

european banks getting hit with bank.he the current government got vote.ted-in surprised that means may be you'll have coming in prorms doing policies currencies well. there's no bid in the treasury market whether here or in europe. slightly higher. what you find interesting equities toht be off, we're back trade issue. update. get signalingnt trump is he's in no rush to get back to trade talks with china.

told fox news, he's very happy with the trade war. billions're taking in of dollars, china is obviously not doing well like us. also said that china's economy will not surpass the u.s.' while he's in office. by imf that could happen 2030. in india, exit polls shows the sweep toster will victory in general election. he ran on a platform that a boost in infrastructure spending and more support for farmers. india is the world's fastest growing major economy. australia's prime minster scott morrison is back to work after electionfrom behind win. they are pledging to part shore up aax cuts to slowing economy. stability was at

the heart this is bloomberg. >> thanks so much. is fascinating the scott morrison story. guy.malltown very socially conservative and developed christian. >> how polls did not work. rural areasing the and the major cities. >> that's right. it's nottime again, sort of the urban elite, we miss it. >> 100%. didn't know.ing i this could ensure that morrison first prime minster since term.o arrive as a full now they changed some rules. also that's kind of amazing stuff.

>> stability. first thing he did was taxes. let's go over to london now. city week is under way with leaders in international gathering to talk about the world and how london fits in that world. martin from london gilbert, he's vice chairman and former ceo of standard life aberdeen martin. thank you so much for being here today. let's start with your business. had a fair amount of flows, $40 billion last year, you seem some this year. where are you from your point of view? >> definitely getting better. seeing quite big industry equities, fee pressure and public markets to markets. the business is pretty tough at the moment. >> martin, where are you? to are you move into passive compete? you said that's the pressure.

passive with very low fees. >> you're right. is going to zero. we're already seeing some fees.e funds at no i'm not convinced it's an area should try to compete with the big guys in that area. the more interesting strategic move businesses also doing moving more from public market equities to private equities. the big asset owners who we for are making that money. the prediction 15% of the world assets will move 15% already in private markets. to move to 20. quite a big shift towards private markets. shift, what do you do? what do you buy, how do you expand? business change? biggerink you got to be

in real estate. we've already got about $100 billion in private market. we already got scale there. it's getting known for it. if a big asset owner decides to shift from public markets where we've traditionally been pretty strong to private. think of us alongside traditional private market managers. statistics,at the being in private marketings the fee level is significantly than public markets. obviously significantly higher passive. >> are you big enough period? aberdeeny built through acquisition. we've seen mergers, consolidation. bigger?eed to get >> i think we're probably out of that middle ground that i've

great thought it's not a place to be. league.t in the big certainly not big in the u.s. half the world assets are in the u.s. we love to be bigger there. either through organic growth or some sort of strategic move. sort ofoment, we're really concentrating on making sure that this merger between standard life and aberdeen, gets in. there's still lot of work to be do that. >> how competitive would it to be get into the u.s. market? you look at say, asia where lots going nowanagers are versus u.s. about how hard to get in either one. >> we're already in the u.s. for 25 years.re >> if you want to scale up, for both.

improveeed to distribution and spend much more money on distribution. the u.s., i'm not convinced great idea to come in and compete in u.s. trying to get a better position emerging market and global equities. you say, traditionally strong in merging markets where emergingow with market? given what's going on with the trade situation. people getting nervous with the emerging markets and where are those opportunities request. >> we've been a long-term in india. i was listening what you were saying earlier in india. india is big opportunity and the largest s are in india. china, we've been threat longious on china for a time. getting more positive on the

china-asia market, the depth of that market is similar in size of number. in terms of company. i know there's a quality there. a largeit's such opportunity, it allows you to find quality companies to invest in. india is really where i would say we felt more comfortable for longest but it's not a cheap market. what do you feel like to avoid in emerging markets now? >> the first question we ask, can we trust the management to this company to look after us as minority. that's always the big danger in emerging markets. after you're investing alongside families or founders or privatees that between and public markets. that's a big danger i would say

the quality is always the biggest danger. it's doing your basic research of the companies and really trying to find good companies. trying to avoid the politics or tied up withget thinking too much about the politics of a country rather companies in that country. >> you started out talking about private markets versus public markets. how does that apply in india on emerging. liquidity issue. do you stay away from private china?u get to india or >> yes. definitely. the moment we do because the markets not as mature. case, lot of the companies in china and india the cap companies are more of a privateteristics of company than a public company.

pretty tough. really, there's so much caps andty and small china-asia. need forrobably no fund manager like us to move markets yet in those countries. that is going to come. next stepbe the companies like us take. quickly, china, u.s. trade war. what's your base case? today?you view it probablyk the issue is the american economy is showing resilience and strength. it put u.s. in better than theyg position thought. i'm not convinced we're going to it atswift resolution to the moment. >> martin, it was really great perspective. thank you so much. martin gilbert of standard life

aberdeen. >> liz young of investment management. you heard what martin had to say about emerging market. what's your reaction? >> just to begin through the we don't019, again, see a recession despite all of this trade rhetoric. of this year, we had chinese stimulus that was effective. of that chinese data to turn for the positive. make.nth does not a trend we're still positive as we do of the trademe through summer, that china end of thethrough year. >> is there anything that's isolated completely from trade that has a good opportunity? >> to martin's point, what you want to stay away from is state-owned enterprises. that's kind of in isolation. toemerging martins continues merge, the state-own enterprises less a. risk. is there an opportunity.

the interesting piece about e.m., it remains inefficient. you want to have an active manager. active manager in e.m is in agreement with martin, there's india.nity in >> liz young will be staying with us. breaking news on the telecom area. with talked about t-mobile and sprint maybe cutting a deal. is set to endorse t-mobile-splint deal. the news we have sprint up, almost 21%. verizon andg along also at&t with it. that's in the premarket now >> it's not like m&m's. be huge.ss, that will for 5g. a lot coming up we're more than 90% through u.s. earning seasons. this is bloomberg. ♪

>> "bloomberg daybreak." coming up in the next hour, an with raphael bostick, th. >> more breaking news on that t-mobile sprint deal. chairman said he would recommend the t-mobile-sprint

approval. this is after reportedly t-mobile and sprint offered further sales assets with the business. >> this is about building out 5g network and not to raise prices. that's to maintain pricing power consumers. >> if they end up with this, be industrial policy. 5g.s about >> that's interesting. >> you got four competitors and are merging. >> this brings up broader point of anti-trust. rules.ng the it used to be how it impacts me as a consumer. that conversation is changing. like big tech interestingafter point of huawei and 5g and

china. they will let couple of companies merge. normally used in that capacity? >> no >> this is a change how that is viewed? >> i'm sure they will say it's perfectly fine. >> there we go. potentially the way it's cleared for sprint and t-mobile. >> sprint was up 21%. >> it's jumping. the now time for follow lead. today we'll drill down into season. we're about 92% way through the quarter. see where we stand. through and the way two things caught. you're seeing an increase in operating margins on on average .n the s&p 500 capex is falling now only 3% in 2019.rst quarter of lowest going back of second quarter of 2017. we cannot corollate with

returns. in seven the past 12 years, returnss with high cash have outperformed in five of the last 12 years. high capexies with and r&d. 2019, we're about even in companies with high capex spending. this quarter it's all about big tech. apple,es like microsoft, capex spendingg by double digits. facebook increased their platform ahead of the 2020 election. all in all, companies as a whole really cutting that capex spending. >> joining us now is ltd leigh estmize founding and ceo. what have they said about capex? >> i think it goes back to the

tech and revenue growth. while the economy has been resilient here, the investment going forward, companies are on the scared especially industrial side. we're worried about the back half of the year in terms of gross margins. we see what wal-mart said the happens with the deere report. this is going to be the main thing that people are thinking -- forward. happens with the deere >> we're worried, we think because of trade, we're not the orders.e how much is this is the overhang dispute?hina trade >> it's hard to tell how much. i will go half and half. half we're getting to a point in the economic cycle where normally would be feeling people getting okay and you throw in the trade stuff and that probably pushes it over the edge. >> what investors are going to for. on theies

thaty basis, companies spend on capex outperform. you prefer? >> what's driven the market since the crises have been buybacks. whats been some of shareholder you friendly action. growth.ot sustainable do you need capex to generate sustainable growth. tricky part about capex if i'm bringing out guidance, capex isn't a decision you can change on a dime. can't decide today you can cut and increase it tomorrow. these are things companies have to plan for a few quarters in advance. have no choice now that you can argue can't decide today yoh inning than the first. it could be a 15 inning game. they really have to choice other back and be careful on capex. eggt's little chick and with capex. when companies invest in capex, the demand they see the opportunity. not sure i see

market for it. >> it comes out the cater pillar report. look at the companies that are putting up really good revenue growth and have gotten high multiples. it's an enterprise tech. it's subscription businesses. you see all the other businesses trying omove into subscriptions. they love the recurring revenue stabley love that really number.r year growth caterpillar trying to get into prescription on basic services. seen this all across the board. i think you will continue to see desire itse of the goes to the same thing associated with the buybacks, companies that are in kind of the services business and subscriptions especially in that tech side are the ones that will benefit. >> it's going back to the news sprint and t. mobile. t. mobile will build out that

network and they are prepared to 7.2% capex increase in 2019. idiosyncratic to you? >> the companies that are techng capex are largely companies. i do think has a lot to do with trade. aside from facebook that was increasing capex. idiosyncratic pressure. from a company specific perspective, you can find even in the tech space. overall the sectors is under pressure. raises the questions leigh software. enterprise could that be affected by the huawei?sues hike >> everything in tech can be affected. what's happening as we discussed is really the target of trade. you end up guilty by association. >> to wrap it up, you brought up

in the beginning it's about margins. are mispriced when it comes to margins? >> healthcare seems to be cheaper. the dip that we had was largely because of some political stuff associated with maybe we get single payer. that's so far down the road it's getting rediscounted into the market. tech margins are going to be pretty good. that's actually where i wouldn't concerned unless you're apple and that does drive a the overall.age of then, again, the small cap tax, i don't think it will be this.ed by unless we have a real issue with main street businesses which are ones that are integrated all these products. economy general economy had been resilient. >> leigh drogen, thank you very much. watching. beent and t-mobile, we've

-- apparently, mr. pi the chaic will recommend approving the revised t-mobile and sprint deal. >> he said that in light of the commitments, the companies making changes to the merger approve it.ee to the question remains whether will follow suit or he would raise that issue >> this has been kicking around now.ome time what has broken log jam? business? of preowned >> yes. that's a big part of it. a contentious issue from the beginning. they will sell one of their three prepaid brands. that's one of the fastest

brands. together the companies t and have had that 42% market share. they made some commitments tound how long it will take build out it 5g network. they'll do that within three years. are saying they will freeze prices for that three-year period. given some guarantees around access in rural areas as well. important.ite >> where does this leave rest of players? -- that's where we'll be. people thought that it was necessary because sprint has been under lot of pressure itself. -- if this deal didn't go through, sprint would have to partner orferent collapse. >> you raised really good point. still have department of

justice. do we have reason they might differ from the fcc? >> the department of justice, as know from other deals, at&t, hasn't alwaysal, behaved in the way you might think they would. in this instance, you would think if the fcc set satisfied grounds, that should be enough. for that.ou so much to ruralis committed broad band. that does it for "bloomberg daybreak." this is bloomberg. ♪.

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology...

there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

>> coming up investors preparing for a prolonged trade dispute. he's happynt said with the impasse. the white house huawei ban thenning to fight across global supply chain. to keepnals intentions crude supply constrained for the rest of the year. we begin with big issue. digging in for the long haul. president trump said he's happy with the current trade impasse. >> trade is the pinnacle much bigger. >> things are getting more heated up.