daybreakcome to australia. i am paul allen. shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to make this -- to asia'major market open. -- asia's major market open. ♪ here are the top stories in the next hour. president trump hails a migrant deal with what -- with mexico and there is confusion over what may have been agreed. the g20 ministers water down their statement on the trade war, talking about pressing needs to resolve it is good

intentions and australia plots a course through the trade waters to strike a balance between its latest -- largest partner and investor. we are seeing u.s. futures rally 7/10 of 1%, this after coming as the u.s. and mexico agreed on a trade deal and president trump postponed the tariffs. it came late friday and wasn't reflected in the u.s. markets' clothes. the friday session was good for stock market in the u.s. with indices gaining at least 1% and we had weaker jobs data on friday which starts speculation we might see the federal reserve cutting rates previous of the s&p 500 rally 1% and the nasdaq with the best four-day gains since january. with trade tensions between the u.s. and mexico subsiding for the time being or the tariffs being delayed we saw s&p futures

gaining .7 percent. let's see how markets are shaping up in asia. truce couldtrade translate to a risk positive opening here. futures pointing higher and we see the exit -- the asx largely unchanged but there is upside potentially after a three-day rise for the benchmark very we could see liquidity at the start of the session with australia off-line for the queen's birthday but we are marking the reopen of markets in china and hong kong. investors on the mainland have a lot to contend with this week. at any time we will get trade figures in the perceived retail sales. comes as china's finance minister warns of the risks from protectionism on global growth and also on the agenda u.s.-japan trade talks continue with a focus on agriculture and manufactured goods. that is ahead of the talks

between the two on thursday. we will get japanese trade to -- trade gdp. let's look at the early moves in the markets in the asian session. these were seen as trying to avoid -- the uncertainty remains a great deal. the mexican peso continues to rise as much as 2% against the greenback while the yen is on the back foot. the aussie dollar holding on the 70 handle. paul: let's get to first word news now. treasury secretary stephen mnuchin said talks with the people bank of china governor were constructive but no major progress is expected on trade until presidents trump and xi meet in osaka. negotiations have been on hold as washington ramps up tariffs and threatens further actions. stephen mnuchin said the u.s. would be happy to resume trade

talks if china wishes. for hong kong, you are seeing one of the largest estrogens since the return to china two decades ago. hundreds of thousands marched through the center of the city in protest. organizers claim one million people so far. despite the turnout the hong kong government indicated it would push ahead with the bill. china has called in global tech companies for talks over the u.s. blacklisting of huawei. according to a report from reuters. they said microsoft and others were told complying with washington's ban would lead to publications in the future business relations with china for all sector participants. reports microsoft was asked not to make hasty or ill-conceived decisions about huawei. and finally the front runner to be the next u.k. prime minister

is pledging a tougher line on brexit including a no deal divorce and holding back money the country owes from past agreements. boris johnson is seen as favorite to succeed theresa may but his hard-line stance has worried the markets. the bank of england said the economy could shrink by 8%. house prices falling by a third. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. keenan. this is bloomberg. president trump has hinted at additional measures agreed by mexico after the two sides signed a deal on migration that averts threatened tariffs put he tweeted about causes that haven't been made public including a pledge mexico will buy more u.s. agricultural products. mexican officials denied this

and say the subject wasn't brought up. let's examine all of this with our washington editor. what is this side deal the president is tweeting about? no: we don't know and we got sign from officials on or off the record. friday,lked about talking about the deal is signed, mexico will buy more farm goods but mexico is already a huge buyer of u.s. corn, wheat, meet. it is the second largest buyer of u.s. agricultural products altogether and it doesn't seem like there is any protocol in place to increase those purchases. the mexican ambassador to the u.s. was on u.s. television and talked about how if the usmca's replacement for nafta, signed and ratified by u.s. lawmakers and the other countries

involved, then mexican farm imports good surge. -- could surge. it seems that is different from the border enforcement and protocol deal that was struck by the u.s. and mexico on friday. shery: does this mean we could see tariffs threats come back we don't get purchases of agricultural goods by mexico? is still there and it will be. i don't know if it is not necessarily tied to any kind of purchase protocol. it is more like going back to the original reason for the threat which is border security, that president trump and his administration will be looking at migrant numbers, the numbers of central american people and others coming over the border to the u.s. if it doesn't drop and there is not enough movement, the tariffs threat will be renewed. it is not off the table.

it is on the sidelines for now but president trump has seen how effective it was in getting republican officials to rush to washington. he certainly could play that card again. is there a broader message on his approach to trade deals and that threats can work? his that has been one of overtime tois mo's suggest tariffs or other action could be taken. it is hard to generalize maybe to his upcoming talks with china . i think it is a different situation altogether. there is more support among lawmakers for example in the u.s. for taking tough measures against china than there were against mexico. that might be something trump is

keeping in mind. the thing tok focus on would be his meeting later this month with china's president xi to see how it goes. this also possible after about-face or brinksmanship or however you want to characterize it, chinese are even more in the dark about exactly what tactics president trump and his it ministration may take. that chapter has yet to be written. shery: our bloomberg washington editor. as she was telling us, let's go to the g20. trade wars and growth risks dominating the agenda. the appetizer ahead of the leaders main course at the end of the month. hays isor kathleen there for the talks. the decision not to put tariffs on mexico, eliminating one big stopsissue but nothing

the big one with china. that is certainly true. finance ministers, central bankers as well from the group of 20 nations talking about this. many issues including things like taxing the global economy and debt transparency but this was the number one issue going in and out. hope a bit of a ray of when president trump decided he did not need to put the tariffs on mexico. minister --finance i spoke to her on friday. she said there is a long way to go but for the near term this is definitely a plus. let's listen. >> very plus. we hope this also happens with the u.s.-china. development a good in which at the end, the u.s.

themselves is going to be affected by this policy. kathleen: even with all this she also told me she sees a protracted trade war. she doesn't see the end coming anytime soon. the finance minister from japan saying, to lateral approach is needed. the bilateral approach is not working. that could be true but president trump isn't going in that direction. the chinese agree. and then olaf schulz from germany, i spoke to him on sunday. he said he hopes the tensions will vanish. he sincerely means that but acknowledges it is hurting global growth. stephen mnuchin at the gavel was playing down hopes to everyone there anything could happen at this meeting. candidtweet out he had

and constructive talks with his counterparty in china. about the fearm in the markets that if the chinese currency slides closer to seven, even below the treasury, if the trump team will see it as manipulation. he didn't say yes but if a currency has been trading at a several -- a certain level, then it goes even weaker, we have to look at a lot of factors. he seemed to imply this is something that is on their radar screen. now it is the g20 leaders meeting in osaka. finance ministers and central bankers have done what they can. was there an agreement the world might need more stimulus? kathleen: it sure is even though everyone is looking for a second

half pickup. but mario draghi saying if they need to, they will cut rates again. they will buy more bonds. the head of the central bank of india -- of italy spoke to us last night or this is what he had to say. things somehow do not go how it is predicted, we will certainly act. there is no question. weak jobsand the report on friday in the u.s. -- there are signals the door is even wider open. it is july, people are looking for 50 basis point rate cut. one man said if this would allow indonesia to cut rates, they said yes and it helps emerging markets but there is a downside aspect. the reason they are cutting is a slowdown in the u.s. and it doesn't bode well for emerging markets either. hays, thank you

for joining us. still to come, our exclusive interview with the bank of china governor. he said he is confident about the yuan despite temporary pressure from the trade war. our guest gives us his take on the markets and how much depends on the trade yield. this is bloomberg. ♪ is bloomberg. ♪

paul: i am paul allen in sydney. shery: i am shery ahn. the week ahead on wall street promises to be action-packed. it will be the u.s. markets' first chance to react to the apparent mexico tariffs truths become a fresh of earnings and oil still in the spotlight. su keenan has more. u.s. futures are rallying up .6%. su: there is a bit of optimism into the monday session.

the dollar is taking a hit and there is positive comments about u.s.-china trade. let's go to the snapshot. the dollar ended its worst week of losses since february 2018. the question going into week one is will it be a positive monday for change? that is interesting to see for the town. futures are up, oil at 54, that will be closely watched because it has taken such a hit as well. let's go directly to one of the spotlight for monday, merger monday coming early. that is a big deal in the tech sector. looking at the friday close, both of these stocks are up 20% year to date which is a strong performance. the companies announced in a statement of they will have a new accommodation which they will call a merger of equals. it will take place in the first half of 2020.

the new company will be a combination of the two names, raytheon technologies. the two of them, a defense powerhouse have $74 billion in sales, so it is one of the biggest in defense ever. we have lululemon which has rebounded strongly from the scandal a couple years back with the see-through yoga pants. they have the $100 yoga pants everyone wants to wear. let's go quickly to the oil story which has been forcing a lot of hedge funds to run away from the bullish bets, dropped to a 12 week low. if we can look at the bloomberg screen, big change, combination of pressures including the trade issues as well. joining us now is nikko asset management chief global

strategist john vale. thank you for being with us. always great having you. let's start with trade. how much room is there for u.s. stocks to rally even further given the u.s.-mexico trade deal, or it seems we have that. we don't know about agriculture purchases. >> there are a few sticky points but the market will react nicely to this. certainly other things to consider, earnings warnings, the tech sector and china as you mentioned earlier will be far from over. that is even more worrisome for the markets. and the worry has been the economic slowdown, a weak jobs report, but stock markets rallying saying the put -- fed put it back. that.ms a little bit of we will see if the fed does cut your they are trying to push them into it. but you are getting commentary

from fed officials we will not be handcuffed by the market. they might not cut as quickly as people expect or might in smaller increments even if possible. so how do you see the prospect of a recession going ahead? you can find this on the bloomberg chart library. it shows a couple of yield curve in versions. do you think the bond rally is done, no recession imminent? john: it wouldn't surprise me if bond yields went up structurally. there are definitely some signs of potential recession ahead. we have got not only the job numbers but also capital goods orders have been weaker. on the jobs numbers there were one month numbers and on an average basis they were running 100 $50 on a three-month average so that is acceptable for the

economy to be doing jobs like that for now. paul: i want to get your thoughts on japan because you had a conviction call when we spoke last time. how do you see japan now? john: japan is looking very cheap. it outperformed europe for quite some time, five years. then in the middle of summer, because of the tech cycle and other factors, it did start to underperform much of the world in constant current see terms. there has been a structural increase in profit margins in japan and payout ratios. you have buybacks up 100% year on year and dividends 20% or the high teens in japan even though earnings are sort of flat for the short term. this has been tremendous

progress in japan. we think the market deserves a lot of attention. shery: what is the risk of the japanese yen derailing all of that as a safe haven demand? john: it is possible. right now it is pretty sticky around 110. even when things got nerve-racking, it didn't move far away from that. the yen has lost a little bit of safe haven that is in the minds of global investors. shery: let's talk about the u.s. dollar which is impacted by what the fed does. this chart showing morgan stanley data, what happened in the last five easing cycles from the fed starting 1995. in two of occasions, the dollar weakened. in three occasions the dollar index rallied. in the six months that followed, where do you put the dollar? john: so much depends on what central banks -- other central

banks are doing at the time. cutting.ny seem to be australia, india. others are on hold. if the fed keeps the interest two point 5% and other banks are not going to raise their rates at all, that would put upward pressure on the dollar. fed forecast for a weaker cutting rates certainly is helping the dollar from getting too strong. on the other side of that, how do you look -- like the look of gold? it has been catching three-year highs, doing well in the past week or two. do you see anything you like? john: it is partly because the fed is hinting they might cut rates. when interest rates are low, it helps the gold price. gold has some relationship to how well things are going

internationally in the world. if all central banks are easing and economies are slow and won't force central banks to ease even further, it helps the gold price. vail,all right, john thank you. we get -- you can get a roundabout stories you need to get her day going in today's edition of daybreak. bloomberg's scrappers can go to the dayb on the mobile. you can customize settings so you only get news on industries and assets you care about. this is bloomberg. ♪ his is bloomberg. ♪

paul: a quick check of business flash headlines, french finance minister says paris may consider cutting its 15% stake in renault to strengthen the alliance with nissan. speaking at the g20 talks in fukuoka, he said renaud should

focus on closer links with its longtime partner before seeking other alliances. his comments followed the collapse of merger discussions with fiat chrysler. in talkstourism unit to buy the thomas cook tourism business. they were working with jpmorgan on the potential offer but discussions are at an early stage. fosun is already the biggest shareholder and it is part of a wider conglomerate that includes businesses of insurance and pharmaceuticals. paul: united technologies is buying raytheon to further expand into the aerospace agency. the new entity will be called raytheon technologies with $74 billion of sales area they have become more focused on aerospace after spinning off the carrier climate control and motors elevator units.

australia walking a tightrope between if largest trading partner and if largest investor. the treasurer tells us more. this is bloomberg. ♪ the latest innovation from xfinity

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paul: it is 8:30 a.m. in sydney. i am paul allen. shery: i am shery ahn. you are watching daybreak australia. big news over the weekend in hong kong you can see this massive historic rally against the government, protesting that extraditions to china being eased. we are hearing as many as one sayion people but they 140,000. it is huge and reminds me of back in 2003 when i reported from the hong kong protests and they were huge but it seems these rallies this time around were even bigger. the 2014 protests.

there were some in 2003 at half a million people turned out and it led to the scrapping of a national security proposal which has been shelved ever since. people power does have a reputation for shifting the .olitical climate in hong kong whether or not it works this time around i guess we will have to wait and see but the protests were largely peaceful. there were some violent clashes later on in the evening. let's check in on the rest of the first word news and get it over to su keenan. start with the g20, the finance chiefs will post down the statement, cutting language that would have calls for a pressing need to resolve trade tensions. instead they admit tensions have escalated and refer to a consensus among ministers and policymakers to support international trade and investment.

president trump hinted at additional measures agreed by mexico a day after the two agreed to a deal on migration that over its threatened tariffs. -- averts threatened tariffs. he said it was not yet made public, including that mexico will buy more agricultural produce. mexican officials denied any signs deal on food and said it wasn't even brought up in the talks. minister hasnce taken aim at big business companies for hoarding cash. speaking at the g20 talks, he said japan -- japan inc. is sitting on $2 trillion and that the money should be used to stimulate the economy. the capital spending rose to a 10th straight quarter in march with wage growth and consumer spending remaining week. and in canada the reports say the government is preparing to announce a complete ban on

single use plastics. they say the move would come into effect in 2021 and cover straws, plates and cutlery. this comes after the european union outlawed plastic products to break -- that break into small pieces and pollute the environment for years. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. let's get a quick check of the markets with sophie. sophie: we are seeing u.s. stock futures gaining ground to set the tone for what we could see in asia. nikkei futures listing in chicago could indicate a gain of 1% for the benchmark. we see gains for the kospi potential even as south korea warns of downside risks to growth. australia is off-line for the queen's birthday. let's look at currency markets in the asian session, the yen is on the back foot after a

three-week gain while the mexican peso is gaining as much as 2% against the greenback. securities received 1910 for the peso this monday. looking at the offshore yuan it is looking firmer after trade friday. i want to highlight goldman sachs with the u.s. best showing the yuan breaking seven which hasn't seen that level in a decade. looking at china and hong kong, keeping a close eye on the shanghai composite which closed thursday at a february low. we will be testing those bubbles at the open and the chinese markets in focus after a bear market slump. we could see relief as china lands to boost spending for electronics and maybe relief after the pboc governor said he sees from it is room for rates and reserve ratios if the trade war worsens. we will see if it turns in to green later this morning. thank you.

the governor of the people's bank of china expects the yuan will remain basically stable. he was speaking at the g20 meeting of finance ministers and central bank chiefs in fukuoka. tom mackenzie joins us now. what do these comments tell us about where the yuan is going? stable and reasonable equilibrium level. this is a line the pboc has use for a year but it depends on what you called stable and reasonable. when wesome suggestion spoke exclusively to the governor on friday. of hint we got the governor the people's bank of china was in the event of a full-blown trade war and further weakness in the currency could be acceptable. the central bank is struggling with a number of different things. they are facing pressure to weaken the currency to offset

tariffs but are cognizant a sharp depreciation would be something of a red rag to a bull when it comes to the trump administration. they are also concerned with what it would mean for capital flights. a number of competing pressures. the sense we got from him in this interview before the g20 meeting was in the event of the full-blown trade war, further weakness of the yuan could be in some comfort level for the central bank. the trade war would have a temporarily depreciation pressure on renminbi. noise, the after the renminbi will be a very stable and relatively strong compared to emerging-market currencies, even compared to convertible currencies. it is a strong currency. i am confident renminbi will continue to be stable at more or

less equilibrium level. is there a red line for the yuan? >> i don't think this is an important question because you numbers it is smooth and continues number scale. i don't think along this mathematical scale any number is more important than the other number so if it continues -- this is totally market-driven and determined by market supply and demand. the central bank of china is also -- already pretty much not intervening the exchange market for a long time. i hope that is the situation. maybe it will continue not to intervene. a little bit flexibility of renminbi is good for chinese economy and global economy

automatic provides stabilizer for the economy. and then payments are on the line and then also the people's expectation will be along the lines. i would say flexible exchange rate is very good arrangement. maybe it will continue to have this market oriented mechanism. tom: that was the governor outlining some of his views on the currency. also we got his views on the policy stimulus that could be put to play should the tensions escalate. he talked about it at the g20 but on friday, he said they had tremendous scope in terms of monetary policy and talked about interest rates and open market, reserve ratio cuts in the future

and fiscal support. really trying to stress for the domestic audience investors and also beyond china they have tools at their disposal by the finance ministry and in his department, the central bank to offset any pressure if these trade tensions escalate from here. shery: so are we seeing the pressure reflected on chinese economic data? we are getting trade numbers later today. yeah, we have seen the last few weeks some pretty bad numbers in terms of manufacturing pmi and industrial profits. retail numbers haven't been good. weking ahead later today, will get trade data. export numbers and import numbers. in terms of what we are forecasting, they are seen dropping 3.8% for the month of may after falling 2.7% in april, imports 3.3% after expanding 4% in april.

we are looking at a trade surplus of about $23 billion u.s. we are expecting credit, new money supply data and inflation data on wednesday. plenty of data to get our heads around this in china and investors coming back from that friday vacation. there is a lot to digest as the markets reopened in beijing. shery: tom mackenzie, thank you. australia says it will need to choose between his largest trading partner and its largest investor. the treasurer told bloomberg how australia plans to navigate the increasingly choppy waters between beijing and washington. withr us a relationship china is -- as a trading partner is currently important and we want those differences between the united states and china to be resolved amicably because we

believe free trade leads to more jobs being created and higher living standards. but a trade war hurts your economy. it is not just direct damage but indirect damage, not going to invest, not going to hire workers. about thened are you damage that could be done? josh: there is no doubt these have weighed on the economic outlook. you have seen the imf and oecd downgrade the global economic outlook. what we are confident of is both china and the u.s. will be strong economic partners for australia. the united states is our number one investor and china is our number one trading partner. kathleen: i am not going to ask you about the rate because that is their job. your job is thinking big picture .

they are getting closer to zero with every rate cut. a lot of central banks have run out of gas. are you concerned rba rate cuts are not going to be enough? josh: certainly monetary policy is important. it is not dissimilar from what we are seeing globally with central banks. that is they can actually provide a rate cut as a means to lowering unemployment without creating concerns around inflation. that is a relatively new phenomenon because traditionally employment has been around 5% but no full employment is probably got a four in front of it. we also have an economic plan i have outlined in the budget to grow the australian economy. it is the 28th consecutive year of economic growth, remarkable run, which will continue, as well as having aaa credit ratings.

paul: the australian treasury minister speaking to kathleen hays. we will dig into the jobs report with one of the most accurate or casters surveyed by bloomberg. this is bloomberg. ♪

shery: i am shery ahn in new york. paul: i am paul allen. analysts say the slowdown in u.s. hiring could get worse as the trade war threatens further blows to employers. payroll numbers show strains stretching beyond goods pricing in industries typically on the front lines of trade. ,et's bring in jason schenker top ranked by bloomberg as the most accurate forecaster across 25 economic indicators. he joins us from austin number texas.

-- austin, texas. that jobs report was a little weaker than expected, but let's take a cup half full view. how bad was it when you consider the u.s. is at full employment? jason: that is true. a is tough to say we are in tough spot. q1 gdp 3.1%, where is the crisis ? we see the job market slowing, the fed has been expecting it. that is a natural sort of thing. at this point of full employment. looking for a crisis. about inflation? that is a piece of the picture still missing for the fed. jason: this is why the fed can't really cut rates. wage inflation is up, cpa -- cpi, total cpi likely to be up 1% year on year, core up 2%.

that is close to the 2% target. that is a target powell reiterated at a dinner i was out at, just a couple weeks ago. said we are sticking with the 2% target. if it is true, they can't really cut rates either. if you ask where the crisis is, i am worried about business investment, but it is only 15% of gdp. how does this bode for interest rate sensitive industries like auto and housing? jason: interest rates in the u.s. are still 75 basis points higher than they were last year. the fact is interest rates have already gone up. the ad doesn't need to raise them anymore. pressure is already on to auto's and housing. it was a big risk. business investment, expenditures were going to be at risk because interest rates

coming into 2019 for 100 basis points higher go then -- that going into 2018. that is the big risk this year. we saw business investment recession in the u.s. at the end of 2018 and into 2016. during that timeframe gdp was still strong. 2015 it was 2.9%. really tough to see how we are in a big problem if the consumer keeps strong because consumption is between two thirds in 70% -- and 70% of the economy. shery: we are seeing downside pressure on oil. this chart showing us that slump p we saw some recovery, but it is coming after disappointing manufacturing numbers, not to mention the fact we really don't know when opec members will meet again. how much will the u.s. summer driving season help here?

two thingse is through the summer drive season helps with crude prices going into the summer. the second thing is the pmi's you pointed out is important. major ones the three that we watch, the u.s., the thosee and the eurozone, were $149 for the month of may. 100 $50 would be breakeven for all three. this is the first time it has been below $150 since february 2016. we remember what happened in prodigy prices in that early part of 2016, they got crushed. there is more downside risk. the imf was slow to lower close -- lower growth rates. imf is still forecasting 3.9% gdp growth for 2019 but last year -- last month they issued a warning about how trade present even more downside risks from

the forecast which is already quite soft. that why you are bearish for industrial metals? jason: aluminum has not gotten the bump other commodities have. china consumes a majority of aluminum worldwide. that has been grinding lower and lower, really not a great outlook for metals, not a great outlook for oil. with opec there is concern if there will be a deal to keep production cuts going forward or even when the meeting will happen. for oil andarish endssummer driving season the third week of july because that is when the nymex roles to september. paul: opec plus don't even have a date for their meeting. and we have this weak oil price which is becoming a demand

story as well in the context of the trade war. jason: the demand side is the bigger piece could commodities like oil, people say commodities are bought and not sold. if you look at the chinese manufacturing pmi, it really has been critical for where oil prices are going. the recent bearish moves coincide with the bearish moves chineseseen in manufacturing. it is critical because chinese are the biggest net importer of crude oil. paul: we have trade data for china humming out later today. what are your expectations? jason: they will be soft. a lot of chinese data we have data wasntly, a lot of week. the pmi, official pmi below 50, things are not great. i would not expect a great data tonight either. what about when it comes to gold because we have seen

choppy trading with gold and palladium. we are approaching three-year highs, the best week in six months. environment,ro where do you put bullion? jason: there has been a big upside move ever since the imf report came out early may 22. that triggered a big upside move. we have seen further technical breakouts about moving averages, really been a big buy sign there. this volatility against the backdrop of what is perceived to be a dovish fed is bullish for gold. that is likely to be more supportive. we have been expecting 2019 prices over 2019 for gold per that is a more bullish outlook than for industrial metals, and at risk for a global slowdown. shery: will it help? jason: the weaker dollar is

supportive of gold prices but what is more is trade war risks. those are really high now. youy: always great having with us. prestige economics president and economist jason schenker good you can go to tv for interviews, watch them and delve in to the securities or functions we talk about. also become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪ is bloomberg. ♪

paul: i am paul allen in sydney. shery: i am shery ahn. let's get a quick check of the business flash headlines. the sports division of the chinese conglomerate has filed for an ipo in the u.s.

they listed the size of their offering at $500 million. revenue rose last year to $1.3 million per profits on $32 million. they will use some of their ipo proceeds to repay a loan related to their restructuring. ceo walker will parachute 90 meet million dollars following the $38 billion sales occidental. this is part of $300 million to be shared among six senior executives. this will be the largest takeover in the oil industry for four years. shery: microsoft said the next xboxts will be -- next will be four times more powerful thanks to a processor that allows 120 grams percent -- 120 frames per second.

it will be available for christmas next year with a new version of the popular game halo. they also said there streaming platform will launch in october. let's get a quick check of the markets. we are seeing trading in new zealand getting underway. it is after three sessions of gains here we are seeing kiwi stocks holding ground and for thea is closed queen's birthday but futures on the nikkei and the kospi are gaining ground. u.s. futures also up half a percent. are seeing the japanese yen trading new the lowest level in almost a week so futures are getting a bit, not to mention we have the u.s.-mexico-trade deal. paul: we have plenty more still ahead. we will be joined by equity coo -- and a former u.s. trade negotiator will be with us as

well to talk about the latest developers on the trade front in china and mexico. that is it from daybreak australia. all the action in daybreak: asia next. this is bloomberg. ♪ is is bloomberg. ♪

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>> good morning. i am paul allen in sydney. we are over an hour away from the market up in japan and korea. >> good morning from new york, i am shery ahn. >> i am sophie kamaruddin in hong kong. looking to "daybreak: asia." >> our top stories this monday, g20 ministers water down their statement on the trade war admitting