paul: welcome to "daybreak australia." we're counting down to asia's major market opens. paul: here are the top stories we are covering in the next hour. wall street climbs on speculation mexico tariffs will be avoided. oil is in a bear market is u.s. stockpiles rise the most in 80 years. movesat/renault merger closer or the sides appeared to have cleared most hurdles.

the escalating trade may force negotiations with china off course. shery: we have breaking news at the moment. we are hearing from moody's and fitch, both the downgrading the outlook for mexico. moody's saying its outlook has been downgraded from negative to stable. also, they have reaffirmed their rating for mexico. the outlook has been downgraded to stable. fitch ratings has downgraded the mexican idr and revised the outlook from stable to negative. you can see the mexican peso right now weakening significantly after the latest news. we are, of course, expecting a press conference from mexican

officials on how those trade negotiations with the u.s. have .one as we continue to see the u.s. threatened 5% tariffs on mexico from june 10 if mexico does not do more on illegal immigration. let's get you started on a quick check as markets close in the u.s.. we saw another day of gains for the s&p 500, up .8%. there was more optimism on the mexican standoff with the u.s. easing somewhat. we saw nasdaq gained .6%. most sectors were in the green. the only loser was the energy sector, and a surprising given that we saw wti sink into a bear market is u.s. supplies jumped the most in almost 30 years. let's now take a look at how we are setting up for asia. paul: looks like we are headed for kind of a mixed day in this part of the world. , butve nikkei futures down

new zealand is up and running following the u.s. markets higher. closed in theets region today. south korea closed for memorial day this thursday and indonesia and malaysia and markets also trading. it is the end of from it on. 's latest beiged book survey says the u.s. economy generally expanded in recent weeks and the general outlook remains solidly positive. the report comes as activity grew at a modest pace from april to may and improved from the slight to moderate pace seen in the previous period, but it does indicate some problems, including weak retail sales, factory orders, and home purchases. the imf has trimmed its growth thecast for china and says

trade war with the u.s. is tilting the balance of risks to the downside. the imf chief told us in an exclusive interview that if trade tensions escalate, growth could be seriously affected, but at the moment, the impact has been manageable. >> trade tensions with the u.s., though significant, have so far been contained. exports or imports have fallen to the u.s., but overall growth has remained fairly steady. tariffs remain at the current level, we project growth for this year to be 6.2% and two moderate gradually to 6.0% in 2020. jessica: the european union has taken the first step toward disciplining italy for remaining in debt. theeu commission says populist government in rome has not made sufficient progress in

reducing its obligations in line with fiscal rules and that disciplinary process is warranted. mib index fell in the news. >> having observed all relevant we have determined procedure is warranted for italy. jessica: fiat-chrysler is close to a merger deal with renault. we're told a deal has been reached with the company's most import shareholder, the french government. although potential hurdles have been cleared, sources say there no absolute guarantee the merger will pass. france owns 50% of renault and has demanded assurances on jobs if the deal does go through.

i'm jessica summers. this is bloomberg. shery: thank you. we're getting reports from nbc news that trade negotiators for the u.s. and mexico have failed to reach a deal during the wednesday meeting. we hear that trade officials have failed to reach a deal on tariffs and immigration, according to government officials talking to nbc news. again, no deal when it comes to the u.s.-mexico negotiations. of course, this after white house trade adviser peter navarro defended the trump administration's tariff action against mexico. take a listen. >> i'm very bullish right now because what president trump has done is to change the game. right now, we are taking a strong measure which will change the mexican calculus in a way aich will actually get

solution on our southern border. that's where we need to go to and that is good for the market. that weuite surprising are getting the latest report that there was no agreement, despite the fact that just this week -- yesterday, in fact -- we heard from mexico's foreign minister being pretty optimistic about the chances of getting a deal before the tariffs are limited. an 80% chance, i believe, and a think we will hear from him in half an hour or so. >> that's right. they came into this meeting with washington with a lot of high hopes and a lot of congressional republicans were putting a lot of hopes on this meeting, creating some sort of breakthrough that would halt or at least he lay the tariffs from going into place. the meeting was between the foreign minister and vice president mike pence and secretary of state pompeo. the one issue is that the out of the country.

he is currently in ireland and will not be returning until friday and all sides, including the mexicans, the administration officials, and members of congress understand that trump is unpredictable and that he will be the final say on many negotiations. what pointow at these talks might have broken some but there was consternation, at least in theress, that the terms administration was setting out were somewhat vague in terms of what mexico would have to do in order to stave off these tariffs from going into place. they are set to hit on monday, and there still is time for this to be rolled back, but it's not really a very good sign at this point. paul: safe to say that republicans, particularly in the senate, are not exactly united on this issue?

>> they are mostly against it in the senate. a lot of republicans have been raising a lot of alarms. they met with members of the administration, and we are told .hat they gave them an earful there's a lot of opposition to imposing these tariffs because some economic impact, particularly on border states. the issue, though, is that they do not have much room to maneuver. of theuld disapprove president's tariffs, but he would veto that and republicans in the house are unlikely to break with the president nearly as much. there is not a lot of for congress to act. members of congress said they wanted to hear from trump directly and personally before these tariffs are put into effect, but it's hard to see how that would happen. congress has left town now and

trump does not return to washington until later in the week, so there's not a lot of opportunity for that to happen. what about exerting some other type of pressure, like holding the u.s. in ca -- the u.s. mca hostage? >> to macleod's have sort of been holding their fire. net to pelosi said they want to get the u.s. committed to getting a vote in the house, but some republicans in the senate, chuck grassley in particular, powerful senator from iowa, has said that unless they can resolve it, there will be no inroval of the usmc congress. trump has said he's not going to back down on this. he may be willing to wait them out, but in many cases, things could shift pretty quickly and

we could get there, but right now, it looks like we are heading toward those tariffs going into place. shery: thank you for that. we're still awaiting that news conference coming from mexican officials. the mexican official of foreign affairs will be speaking at the mexican embassy in washington. he had a conversation today with vice president mike pence and also secretary of state mike pompeo, and he will be briefing us in a few minutes about the latest trade negotiations. that's right. we will bring you that as soon as it begins, but still to come, a bloomberg scoop. ofwill have the details boeing's potential deal with china. shery: this is bloomberg. ♪

paul: we are counting down to the sydney open. we have futures pointing a little higher at the moment. about .3%. also getting a little bit of news from renault. board meeting is apparently over, but there has been no decision made. i'm paul allen in sydney. shery: i'm shery ahn in new york. you are watching "daybreak australia." toare seeing fiat is set withdraw its proposal. there has been no decision on a deal according to sources. this meeting had been postponed several times because we had seen nissan, one of the partners of renault, pushback on this merger on concerns over their authority, and now we are hearing that fiat is set to

withdraw its proposal and the renault board has postponed the decision to a later date. we have seen a lot of resistance coming from nissan, despite the fact that france had backed the merger between renault and fiat and even the finance minister saying that they offer stands if inre are guarantees on jobs local had quotas and so forth, but it seems the decision has been postponed to a later date. fiat chrysler at the moment in u.s. trading falling 3% in extended trade as we hear that fiat is set to withdraw its proposal from renault and we know the board meeting is over and that there's no decision. the thought that mexican tariffs as be avoided has vanished

we hear that there might not be a deal so far. paul: let's get a little bit more on the markets now. stocks climbing on optimism tariffs on mexico might be avoided, but as mentioned, that changed. from melbourne is .n ig group market analyst interesting developer that there had been some optimism, but we now see s&p futures sliding a little. how much impact is this going to have on markets, that there was a failure to find a way forward with mexico? >> i think it will really drag on sentiment. i think the fundamentals of the matter have not changed in the last 48 hours, 72 hours or so, and what we've seen is a little bit of optimism and probably a

little bit of short covering, if you will, on what was more or less a bit of positivity over the prospect of interest rate cuts for the united states that probably engendered this little run higher. we have had a little bit of a snap back down to earth with this particular story today, and that willspect that probably wipe some of that positive sentiment away somewhat. this is probably a bit of a check in with reality.

paul: i daresay you are not particularly optimistic. i believe you are short the s&p at the moment. you not convinced the fed writing to the rescue is going to be enough? >> you obviously always want to a bit of an opportunity, but i think the real concern at the moment is the potential in balance between what markets think the fed will do and what the fed is actually willing to do. the fact that over the last , anyway,four months what has been driving markets

higher is a bit of a momentum change. shery:

>> the beige book is very helpful, but numbers are shifting at the moment. we're going to be looking at nonfarm payrolls now on friday. in these situations, you do way of the balance of risks from where they live. we spoke about where the real concerns are in the market. the other thing, too, is obviously the belief -- or actually the fact that what is driving the market at the moment, valuations and flows going into stocks, the fact that there's the expectation the fed will come to the rescue and other central banks, too. that it gotcern is a couple of risks that jobs numbers will miss.

the other thing is that we might not necessarily see the kind of drop off and on the other things that suggest the fed can actually cut interest rates as aggressively as is being suggested. maybe there is a measure of his pricing and how aggressively the fed is willing to cut, or the fact that some of those may continue to weigh in a period where we are still a little bit away from some really substantial stuff coming up and earnings season. we want to see company fundamentals because we have not had enough of that recently. it makes for a situation where risk is, like i said, to the downside on this more opportunities for markets to come up in this market than they are to potentially spike again. going to see rotation when it comes to sectors? we saw tech heading really hammered -- getting really

hammered on regulatory news? >> even if you look at what happened last night, what is manifest is definitely a sectors.in defense of income-generating stocks have become more attractive because of the fall in yield. valuations, asnd i said, are reasonably attractive on paper, but it should not be disguised as something a lot more bullish on market and what we saw a few months ago, which was rather optimistic and i suppose capable of pushing the s&p 500 to new all-time highs. paul: thanks very much for joining us in melbourne. the big bloomberg exclusive , anng your way tomorrow exclusive with the pboc governor.

that's coming your way friday asia time. this is bloomberg. ♪

boeing is set to be negotiating one of the largest ever orders with china. the deal could include about 100 and the 777x, the newest and most expensive plane repertoire. this has been pretty surprising to me. you have continuing trade tensions between the u.s. and china. two, china was pretty active when it came to the grounding of the 737 max 8, so how long has this conversation been going on? >> it has been going on for a while and even though it has our reportingme, suggests no deal is imminent.

obviously, the trade tensions are very much weighing on all of this discussion. that said, the fact they are going on at all shows how the u.s. and china are still dependent on each other when it comes to airplanes. sevenve boeing with the 77x under discussion. that is a crucial plane for them. china is a very important market and china needs of the planes it can get because air travel is growing very fast as its economy expands. works out, how meaningful will the deal be for boeing? a very big deal for boeing. the 77 sevenx has not been a huge seller. there are questions about some of the orders they have booked, so the first part is they need the business. the second part is the company is in a huge crisis right now because of the two crashes of the 737 max. china, as you said, has taken a

very proactive role in grounding the plane and reviewing what needs to be done to let it fly again. lending a big order from chinese airlines, even if for a different model, would be a pretty big boost of confidence for boeing shery:. right. thank you so much. we are hearing the u.s. and mexico have ended trade negotiations in washington without a deal. we are now getting confirmation that the trade negotiations have ended without a deal. those trying to avoid tariffs starting june 10 on all mexican goods if mexico does not do more on illegal immigration. we are now getting the latest headlines that the u.s. and mexico have ended those tariffs in washington without a deal. we are still expecting the foreign secretary of mexico to make an appearance in a few minutes from now at the mexican embassy to talk through these latest trade negotiations.

paul: thank you. we will bring you that press conference when it begins. still to come, the latest on those potential tariffs on mexico. stay with us. this is bloomberg. s is bloomberg. the latest innovation from xfinity

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mexican officials are set to hold a news conference following terror of talks -- tariff talks in mexico. we are hearing those talks ended without a deal. those talks were happening in the white house. this was with the foreign secretary of mexico, a meeting with vice president mike pence and also secretary mike pompeo. duties on all imports are set to take effect on monday a less mexico convinces the u.s. it can stem the flow of migrants headed for the border. we have heard that the u.s. and mexico have ended trade negotiations without a deal. we will follow the events in washington and bring you any

develops and as we await that foreign secretary press conference at the mexican industry. let's get to first word news. jessica: the u.s. and mexico have failed to agree to a deal .n tariffs duties on all imports is set to be imposed on monday. the sides met as tensions on america's southern border hit their highest level in more than a decade in may, jumping more 30%. a new caravan of migrants has entered mexico from guatemala headed to the u.s. border. china has stepped up scrutiny of listed companies to address growing concerns about corporate governance. the questions were mainly about irregularities in financial results.

a former general is back as thailand's prime minister after lawmakers supported his military-backed coalition. .he decision was a victory the opposition did win the most seats in march's election but were unable to build a workable government. launched a rocket for a platform out at sea for the first time. it's and five satellites and two scientists to get the experiment into orbit. it blasted off from a floating pad option. using ocean launches can offer advantages such as being able to position closer to the equator and therefore use less fuel to reach orbit. 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. paul: thanks, jessica. let's look at how asia's stock markets are looking as we head into the open. nikkei futures have been moving on this news we have been having out of mexico. futures trading out of chicago. to futures. still pointing higher at .3%. not too much reaction out of new zealand. markets, of course, in south korea, indonesia are all closed today. shery: more now on the impending mexico.iffs in we are seeing reaction in the markets with futures falling about .5%. the mexican plunging more than 1%. white house reporter josh

wingrove joins us from d.c. how surprising is this that the president is not around? there were still high expectations from the mexican side that they could come to an .greement >> part of the uncertainty that we have here is that no one really knows what the firm deadlines are, with the criteria are, and what to expect, some mexicans had hoped they could by a deal to avoid tariffs monday. they still have time to do that, so today's meeting ended without a deal would not be fatal in that regard. we have mixed views about if that is possible, how serious donald trump is. the president, of course, tweeted earlier today that there is no bluff you, that he is willing to go through with these tariffs if they do not get something done with regards to mexico around the border, but a lot of analysts seemed to be looking at those comments saying that they are optimistic they can get something done in time

so that those tariffs do not come in on monday. paul: we are standing by to hear from the mexican secretary of foreign affairs. from mexico has been quite conciliatory. is there any expectation that could change? >> i would say no. the administration since taking power late last year has always taken a sort of stay the course approach with the trump administration. they don't take the bait, if you restoringting back or with soaring rhetoric went president trump takes a swipe at them, so i think we can reasonably expect that to continue. like i said, they have time yet. we are looking for details as to might be talks remembered. they might go up by five percentage points every month until october. potentially quite a lot of

escalation here. there was also data released today that showed that the number of migrants coming across the u.s.-mexico border is rising, rose again in may, the fifth month in a row with 140 4000 people in either apprehended or turned away at the border. these are pretty high numbers, and of course, the president in his view says this is an emergency, but as i say, lots of uncertainty around the legal powers here, what the u.s. is looking for, what mexico is willing to give, and yet, kind .f a mode of serenity >> most senate republicans are not very happy with what is going on. has the white house responded to suggestions coming from senators that they could hold the usmca hostage? >> i think the usmca is a big part of this. i think it is reasonable to

the mexicanor why government would advance a trade deal if they got hit over the .ead with tariffs the pushback from the senate has been strong. at least some people think there would be enough votes in the senate to back any sort of action congress might take to ,verride a presidential veto but the house of representatives is a lot more murky. there is less confidence there would be enough votes to override a veto, that would allow president trump to sort of did in if congress decided to push back or override the powers he is trying to use here. again, those powers, he is really pushing the boundaries of what people either understood those powers to be or believe those powers are. waiting thata conference from mexico. ourks for joining us, bloomberg news white house reporter in washington. joining us now, american

enterprise institute scholar. let's get started with mexican tariffs. a lot of people were surprised that these were coming, but at the same time, the white house will advisor saying this change the calculation when it comes to illegal immigration. take a listen. >> i'm very bullish right now because what president trump has .one is to change the game right now, we are taking a strong measure, which will change the mexican calculus in a ay which will actually get solution on our southern border. go to inat we need to that is good for the southern market. reaction yahoo! >> at think peter is be a little bit optimistic. there's a big problem on the border. i think everyone recognizes

that. you don't solve a big problem by waving the tariff stick around for a few days. do not see how peter can say we have a big problem on the border, but we can solve it without actually doing very much of anything. the president not only threatened tariffs on mexico but also increasing tariffs on china. take bothns if you out of the equation? >> one way to understand it is people treat the president's tariffs on china as if they are a huge tax increase and that's not really accurate because you can substitute a way from chinese products. if you add mexico, it becomes much harder to substitute away, so the impact of the tariff increases by a lot, not just because there are products

coming into the u.s., but because the number one thing consumers would do when facing the china tariff is substitute to mexican products. now they cannot do it. now it is more like a tax increase on american consumers. paul: does this more broadly put the usmca at risk? >> i think it has to. element, buttisan members do not want to vote on something that they feel like the rug is going to get pulled out. you do not want to take a trade vote, take that painful trade vote, get all the criticism, and president trump says border emergencies, he's raising tariffs. it's not just the negotiations. embers do not want to take a painful trade vote and then be undercut by the president in 2020. i think the odds of the trade vote, therefore, have to fall. paul: if we can talk about an

interesting development on the , boeing in talks with china for a 100-plane deal. is this to some degree encouraging that some matters of mutual interest between the u.s. and china are simply bigger than any saber rattling on trade? >> i think the u.s. and china are looking for ways to talk to each other. whatever the chinese are upset with the u.s., they play the boeing or airbus card. it's normal chinese behavior, so i don't think the deal its self matters that much, but i do think the u.s. and china are trying to find a way to talk to each other before the g20 meeting in osaka. shery: we are now hearing that russia and hasn

touted a new level of ties with vladimir putin. is this going to see mend and already fragmented geopolitical landscape? >> i'm one of the people in favor of partially decoupling the u.s. and chinese economies. i think there are too many clashes between the countries -- economics, human rights, security clashes. if that happens, you would expect china to look for other partners. obviously, russia is not the same kind of partner as the united states, but u.s.-china clashes will obviously see china look for other partners. the u.s. should be looking for other partners as well including passing usmca, so we have to be careful confronting countries like the chinese so they do not improve their relationships with russia and we failed to improve our northonships with american partners. we have seen such methods

play out back in 2017 against south korea when they have their .wn political problems >> we are too big for that. the big pot of money china has in play with the u.s. is the american from sales with china. everything else is small. the u.s. is so big that everything else is made small in comparison. the chinese are very hesitant to go after that big pot of money because it is money that benefits them. most of the things people talk about with regard to chinese actions against the u.s. just do not matter. there's not enough money involved. the steps they could take, attacking american firms based in china, that would put pressure on the united states, but it would hurt china at the same time. paul: how much optimism do you have that there could be a couple of circuit breakers coming up?

of course, at the end of the month, trump and xi jinping are likely to exchange words. could that be the start of a new dawn potentially? thingsink both of those matter. if there's a message one side wants to deliver to the other, they could do it through the finance ministers meeting and i think president trump and xi jinping can put a pause on escalations. they cannot solve the problems, that is not what leaders of state do. trade negotiations are too thinkcated, but i do escalation will get caused, and then we are left with a very difficult problem, as everyone knows, of finishing that trade .eal paul: i just want to return you know to the other front on the trade war. we have some breaking lines from

president trump. he is saying progress is being made with mexico, but not enough. president trump not in the u.s. right now, but he is making those comments. in terms of not enough progress, what is the president looking win? he can claim a >> that's a really good question. i think the biggest problem on the american side is not necessarily that we are upset about the border. i think we have reason to be upset about the border, but the administration has not stepped forward and said what enough progress is. they have given conditions that the mexicans are already trying to reach or that they will never meet such as accepting all asylum-seekers in mexico rather than passing them through the united states. mexico does not have the ability to do that. we seem to be looking for something visible that the president can say is a win but not telling anybody what it is. that makes it hard to meet the june 10 deadline. it is so close. i think we will have a

settlement on this before july 1 before we go to 10%, but we might see those 5% tariffs applied. thank you very much. just a little bit more from the president, in tweets, he is saying the talks with mexico will continue tomorrow, but then it's to be an understanding that the 5% tariffs will go ahead as scheduled if there's no agreement. that would happen on june 10. he is also saying that the monthly increases will go ahead as planned. 10% in july, 25% by october, the higher the tariffs go, the higher the number of companies that will move that to the u.s. -- move back to the u.s. d next.o to this is bloomberg. next.go to d.c. this is bloomberg. ♪

the news are watching conference by the foreign secretary of mexico at the mexican embassy. he is now speaking in spanish and giving us his take on the thatt trade negotiations

happened at the white house. you are watching a news conference by the mexican secretary of foreign affairs at the mexican embassy. the meeting happened for two hours. he is saying that they will continue conversations tomorrow, that they are going to try to get more details of the negotiation. "we will have another meeting tomorrow with the objective of getting closer on the deal, ." ser positions that the situation cannot stay away it is.

it cannot stay the way that it is, so tomorrow, we will be working for many hours, as long for how we can close our position, and tomorrow afternoon, i will be speaking to about,ut what we talked and we will try tomorrow to get closer in our positions. they are going to take questions now, national and international questions from the foreign media. your talks with secretary pompeo and the vice president, did you get the impression they were fully supportive of the president's tariff policy, or did you feel more like it was

damage control? my second question is -- do you think the president has a strong understanding of economic policy and how tariffs work? >> today, we do not discuss the .ariffs the dialogue was focused on migration and what mexico is doing or proposing to the united states. to evaluate what the position of the secretary of state or vice president is about because it was not in this conversation the main issue. >> i'm not the proper authority to judge something like that. >> [speaking spanish]

>> [speaking spanish] translator: could you give us more details on what you expect ? morrow and are you still optimistic that there will be a deal, as he said, ins you negotiations? we have to be optimistic when negotiations are hard and under pressure, so if you are not optimistic, then a deal will not go well. we want to find understanding when it comes to perspective. we will try to find some points

where we can get closer in our positions. i would not change my position, like i said, from before because if you can get to 80%, then we will get to 80%. persevere. what can i deduct from the meeting today, that the environment was good, that is the important thing. we had a chance to explain and ,ut our position on the table meetwe will actually tomorrow. the important thing is that there is a will to get closer together in a deal, so let me

and say optimistic, tomorrow, we will inform you more. who participated? it was vice president pence, .ecretary of state mike pompeo >> [speaking spanish] this is the foreign secretary of mexico speaking at the mexican embassy, giving details of the u.s.-mexico trade negotiation. >> respectful position from both parts. we have the opportunity to share our point of view, explain why that we areposition

following in this issue, and tomorrow, we're going to follow the talks. >> [speaking spanish] shery: we are listening to the foreign secretary of mexico give us his take on the negotiations that happened today at the white house having spoken to vice president pence and also secretary of state pompeo. they will have another round of negotiations tomorrow. he says he wants to stay

optimistic on the outcome, and of course, we have heard him talk about the focus being on mexico's migration proposals, that there's no expectation that today's meeting would resolve all issues, but of course, he wants to stay optimistic. let's now bring our white house reporter, josh wingrove, from d.c. what did you take away from the conversation today from this news conference? i was really surprised to hear that he still wants to stay positive, wants to stay .ptimistic he says the talks have not broken down and will continue tomorrow. comings a note of calm from the mexican foreign minister who protected earlier this week he thought there was an 80% chance of getting a deal. write is this conference began, president trump tweeted as well indicating talks would continue tomorrow. he said there was progress but

not enough and that president trump said that if there was no deal tomorrow, that those tariffs would go into effect on monday. up ands been picking what you heard from the foreign minister of mexico was an upbeat tone saying they really did not deal with tariffs today. it was difficult to discern mike pence's position on tariffs and said they focused on immigration and that he would try to be optimistic that they could come to an agreement as soon as possible, perhaps tomorrow, to -- in a bid to avert those tariffs. mckee onalso have mike the line with us from chicago. what is the likely impact of these delays going to be, particularly if the tariffs do come in, as threatened, on monday? >> if we have a delay, it's not threat toe a huge

progress. we saw fitch and moody's downgrading mexico today on the prospect of tariffs. the head of the federal reserve saying this week they stand ready to do whatever is happen.y should this the biggest problem is not just what we would be charging the american consumer or producers for the goods coming into the country but also the supply chains that would be interrupted , that would do tremendous damage to a lot of the intermediate goods that go back and forth across the border but really hurt a lot of american companies. mike mckee on the phone in chicago. thank you very much. also bloomberg white house reporter josh wingrove. u.s. futures paring back some earlier declines.

that is it from "daybreak australia." we will get all the action in "daybreak asia" next. this is bloomberg. ♪

paul: i'm paul allen in sydney. shery: good evening from bloomberg's global headquarters. welcome to "bloomberg daybreak: asia." paul: our top stories this thursday, drama in two major stories -- the u.s. and mexico failed to reach agreements. tariff are still set for monday. fiat scrapped its planned merger with renault after a delay to decision.