thousands of mattresses to those in need. live healthier, live happier - by resting deeper. get 15% off, and 2 free pillows. go to leesa.com today. paul: welcome to "daybreak australia." sophie: we are counting down to asia's major market opens. ♪ hall: here are the top stories we are covering in the next hour. major indexes set new highs the phone while beijing and brussels are accused of currency manipulation. and warren on wall street. the democratic candidate wants to break up banks.

why some big names of finance are on her side. major indices now rallying to record highs. the s&p 500 gaining two for a fifth -- gaining for a fifth and secular session. it was a shorter trading day, not to mention that we are headed toward the july 4 holiday. still, we saw the treasury rally continue with the 10-year yield also falling to levels not seen since 2016. we had different yielding sectors like utilities and read gaining ground. let's see how we are setting up for asia. so be: in asia, stop futures are pointing to gains -- sophie: in asia, stock futures are pointing to gains. additional export restrictions to south korea go into effect begins formpaigning

japan's election, ahead of which shinzo abe said he does not see the need to raise the sales tax for the next decade. we had sales from australia, trade data from malaysia, and japan releases its we can report on buying of stocks and bonds. : thanks very much, sophie. let's check in on first word news now. >> china is one in the u k to keep out of hong kong politics, accusing london of interference in the city's affairs. beijing issued a strongly worded statement saying the territory is not what it used to be and that the british government has chosen to stand on the wrong side. 13 people have been arrested in connection with the violent at the capitol building on monday. early indicators for june show the chinese economy under even more downward pressure following

may's hike in u.s. tariffs. business surveys suggest rising stress among small and medium-sized enterprises with the government expected to offer more support. bloomberg intelligence says market sentiments improved towards the end of the month after the u.s. and china reached a trade truce at the g-20. president trump is insisting he has not given up his campaign to put a citizenship question on the u.s. census form despite hadrts his administration dropped the issue after the supreme court ruled against it. he tweeted that any news of the commerce department abandoning andquestion are fake insists the administration is moving forward with the plan. under one million people have been told to seek safety as torrential rain continues to batter the japanese island of .iyoshi

the government may issue an emergency warning only used for severe events that occur once in decades. the storm is expected to drop as much as 35 centimeters of rain in the coming hours. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 morealists and analysts in than 120 countries. this is bloomberg. paul: thanks. u.s. and chinese officials set to resume trade talks in the coming weeks, but larry kudlow says for now, those contacts will happen over the phone. >> our team leaders are investor lighthizer and secretary mnuchin. i don't know precisely when they're on the phone. they will be on the phone this coming week and will be scheduling ace to face meetings. lots of communication. paul: the cross to -- let's cross to washington and our communicator.

what do we know about these phone calls? >> not a whole lot. that is about as much detail as we got from larry kudlow. sort of an of the picture saying these talks will continue, whatever they do continue, sort of in the short, soon coming there, theyfrom have a lot of work to do, but they were testing this as optimistic saying this is -- they were casting this as optimistic, saying this is maybe bullish for investors. that kudlow -- they sort of switched roles. these are guys who have differing views on trade. warningtruck a bit more by saying that we still have core issues to deal with, intellectual property, nontariff barriers, transfers of technologies. he is saying we are moving in the right direction and have taken steps to cool things down with china.

china now has to take steps also, but this is a road ahead will. interesting that navarro was so optimistic during the trade talks given that he was nowhere around during that g-20 meeting. but he was very bullish on the stock market. take a listen. >> i'm here today to tell you we .ill get to 30,000 on the dow we cut interest rates and move forward with the agenda. he needs help from congress on usmca. let's get that done. he needs help from the edible reserve -- the federal reserve which cost us a little bit of growth. shery: what does that tell us, to bethat the usmca seems nowhere close to passing in congress? >> they seem to be saying they still think nancy pelosi could bring forth for a vote before congress adjourns in just a few weeks for a break. i guess the clock is ticking,

but they certainly have not ruled out help that could happening. -- that could happen. kudlow has said he is optimistic that the losey would do that and the trump administration has vote, wet comes for a think it will pass, and if it passes the house, we think it will pass the senate. they have not ruled that out. on the fed, we sort of lost track. there was a time when it would have been unusual to have the white house so repeatedly calling on the fed to lower rates. we have blown past that at this point. it has become a regular thing and we heard today calling on the fed to lower rates. he is saying these things -- lower rates, usmca passing -- could hit the gas and send the doubt to 30,000. shery: thank you. even as the president expressed optimism on trade talks, he took a swipe on china and europe. that beijing of

brussels are manipulating currencies, pumping money into the system and the u.s. should "match them." bring in our reporter. what does the president mean here when he says match europe and china? >> that's the question. we have seen trump repeatedly take aim at other nations for their currency practices, but this seems to be the first time he has suggested the u.s. take action. this could just be more pressure on the federal reserve to cut interest rates, but a few foreign-exchange analysts are raising the risk that perhaps he is suggesting the u.s. actually intervene in currency markets, which is very rare. the u.s. has not intervened to weaken the dollar since 2000. it is something we have not seen in a very long time. yes, so what would the threshold for an intervention be? what would trigger it?

>> it puts a lot of pressure on the fed's july meeting. if the fede that does not cut rates there, that will just dial up the pressure even further and perhaps that would really push trump over the line and we could really see some intervention. even if the dollar continues to strengthen, we continue to seek euro and yuan weakness -- we continue to see euro and yuan weakness, this will continue to be a conversation. shery: how much firepower does the u.s. have when it comes to the currency market? >> relatively speaking, not a lot. the federal extent traded fund only has about $22 billion in assets, which is nothing to sneeze at, but compared to china's 3.1 trillion, it's relatively speaking not that big . that said, the signal that markets would receive by the u.s. intervening in currency markets would definitely be a powerful one.

paul: thanks for joining us. still to come, we will have more analysis on president trump's currency accusations later in the show when we are joined by a bloomberg institutional research fellow. shery: our next guest says that while few asian traders priced in such a dovish fed, she sees few asian banks following the jerome powell direction in the coming quarters. this is bloomberg. ♪

paul: we are counting down to the sydney open this thursday morning. futures currently pointing higher by about .3%, this after we saw u.s. equity markets close in the green as well. i'm paul allen in sydney. shery: you are watching

"daybreak australia." we are now hearing the u.s. is saying the justice department and commerce departments are evaluating options when it comes to the census question -- a citizenship question in the u.s. census, saying the doj was asked to reevaluate all available options on the census. of course, president trump has continue toey will fight to include that citizenship question in the u.s. census after the u.s. supreme court put the plan on hold. now we are hearing the doj has been asked to reevaluate all available options. we will get you more on this as soon as we get it, but for now, let's turn back to the markets. u.s. stocks rising to yet another record, and bonds rallying at the same time. treasury yields sinking to the lowest level in more than two 1.90 5%.st below usually stocks and bonds would move in opposite directions, so the question is -- which market is right.

the largest dedicated asia investment specialist in the united states, always great to have you. we continue to see these moves in the bond and equity markets rallying at the same time. is this all because of fed puts here? >> a think there's a combination of things. first, there's no doubt that the markets are really forcing the hand of the fed. i think the fed really does have to start seriously considering insurance cuts and maybe even sooner than they might have considered given the economic data. substantial amounts of the markets are now pricing in two to three cuts and therefore, the fed will be looking at the markets to ensure that there's not too much volatility that stems from an action. the second reason i think really has to do with fundamentals.

if you look at yields in the united states, interestingly, our analysis shows that u.s. bond yields mostly correlate with global pmi's, not just u.s. pmi's. the flows of capital that go in and out of government bonds really tends to reflect not just u.s. and when you look across globally, while you see tepid growth most places, i think in europe, there's definitely ofries along the lines pmi's, along the lines of italy as well as germany, so to sum up, i do think we are seeing the fed coming forth as well as fundamental weakness in terms of what the bond markets are pricing in. shery: this chart on the bloomberg showing global pmi's. in the yellow holding

up still as compared to the euro area and to china as well. is there a risk of yields spiking this week as we head toward that june payrolls report that is supposed to be a rebound from the previous month? >> probably not, and here's why. as i mentioned, the bond markets are not just focusing on any one number. i think the fed will continue to signal that they will be very dependent on the economic data that comes through. as a result, i think there will the wayh data going all through july 31, if you will. we're talking three and a half whole weeks of data. i do not think that the markets will actually oversell on any one number. : i want to bring up another chart on the terminal as well, and i know this illustrates something you are thinking about. this is the fed pointing to lower growth ahead.

>> i do think the data shows the u.s. is relative late cycle. u.s. cycles do not just and by themselves. they do not end with old age. it is typically due to some policy error, and what we are seeing from the fed right now is a very dovish one, and given where we are today, there's very sign of inflation, so we do think the fed can afford to run the economy on a relatively hotter side and not worry about overheating the economy. we do think that the yesteryears of the 1980's and 1990's where maybe the fed was more focused on fighting inflation -- that is really no longer an issue. we are really more worried about potential deflation. as a result, we do think that it is quite likely that the fed will move in that the u.s. economy will actually get that nice oxygen injection from the fed. you are looking for

opportunities in fixed income right now, where do you go? it's getting kind of hard to find some yields. >> it is hard. banks are central still relatively behind the curve. they were worried about protecting their currency last year and as a result, they really have not priced in the relative dovishness of the g3 central banks, and as a result, we actually see relatively good value across most asian rates. that it would be both in the developed markets of countries like korea, thailand, who have been actually very reluctant to cut rates that they are worried about the favors, not being able to meet expenses through their income, and at the same time, we also think that even the higher-yielding countries like india and indonesia also have room to cut rates because there's really been no sign of inflation. prognosticatey to

and say that the inflation dragon has been slayed, but to be sure, we do think that there has been a relatively new set of regimes where, for example in india, the implementation has really improved the flow of goods so things like inflation that has been very systematic in the system has really not been rearing its head since the implementation of gsp. we're relatively positive on interest rates in asia. shery: korea just cut their growth and inflation forecast. does that mean they will have to come around sooner than later? >> i think so. one of the central banks that has been the most hawkish really has been korea, and i think it's one of the countries suffering from demographics and also from the fact that they just has not been enough stimulus on the fiscal side as well as the monetary side. yes, i do think that korea rates will probably go the way of japan rates over the next two decades. i do think there is room for

korean central banks to operate. paul: thanks for joining us. you can get a round up of the stories you need to know to get your day going in today's edition of "daybreak." bloomberg subscribers go to dayb on their terminals. you can customize so you only industries and assets that you care about. this is bloomberg. ♪

i'm shery ahn in new york. paul: i'm all allen in sydney and you are watching "daybreak australia." a harvard professor is the alarm on the chinese economy for a range of -- as a range of indicators flash red. last week, she told us why growth in china could be

substantially worse than headline numbers suggest. >> i think a concern is that theese growth may not be 6%, 6.5% that the official numbers have been pointing to. i think if you look at china's trading partners and how much they have slowed, if they are in asia, if they are commodity that feed commodity inputs into chinese investment and the chinese economy, they a lot more. this is signaling that if you were to do the backward exercise , it would be consistent with a lower growth rate in china. one area of concern is everyone talks about the china stimulus. ok, so they have fiscal stimulus at about 1.75 percent of gdp. fine.

there's also talk that they can do monetary stimulus. i don't think so. i think their scope for monetary stimulus is a lot more limited than what is generally perceived. if you look back to the major stimulus package around 2009, the crisis in 2009 that had both a fiscal and monetary component, that was a different phase from china, when china was getting thee capital inflows, when central bank was buying treasury securities and accumulating reserves. the situation china is in right now. in an environment of large capital influence like it had back then, china could have very aggressive credit policy to support businesses, to support .xporters that kind of credit expansion in an environment in which the tendency has been towards not

capital inflows but private capital outflows, international reserve losses, and concerns about depreciating renminbi, not appreciating, central banks in the end when faced with capital outflows and a depreciating currency, if you want to stem threeyou can only do things. you can tighten capital controls, which i think they did. or you can tighten monetary policy, and i think that is what is going to pull them back from being able to do the kind of stimulus that we saw earlier. >> is the economy going to slow down? how bad is it going to be? >> what i was alluding to earlier is that i think the pace

not theh right now is 6%, six point five percent, that it is somewhat lower. there are estimates out there in brookings studies that have percent, -- 1.5, two percentage points lower, but if you look at their trading partners and how much trading partners have slowed, you would expect something substantially below 6%. shery: let's get a quick check of the latest business flash headlines. t-mobile is on the cusp of u.s. justice department approval for its sprint merger according to people close to the deal. it is finalizing plans for asset sales at dish network aimed at ensuring dish can become a strong player in u.s. wireless markets. the justice department wants to

maximize industry competition before allowing the merger of thees -- before allowing merger, and shares of all three companies gained on the news. plans to overhaul m, according toar someone familiar. "the financial times" says the total cost of the overhaul could tip deutsche into lost this year. offering $100is million to the families of those killed in the two 737 max crashes. crashes led to the worldwide grounding of the max as well as is drink -- as well as a string of losses and regulatory scrutiny. the lawsuits could cost boeing $1 billion. fedt, cleveland's

president oversees a region big on manufacturing. in an a close of interview, she tells us how these factories have been affected by the trade war -- in an exclusive interview. this is bloomberg. ♪

morning30 a.m. thursday in sydney. the market opened 90 minutes away and we have futures pointing higher by about .3% following u.s. equities higher. in new york, it is six: 30 p.m. you are watching "daybreak australia." let's get to first word news. >> president trump is insisting he has not given of his campaign to put a citizenship question on the u.s. consensus form, despite reports his administration had dropped the issue. he tweeted that any news of the commerce department abandoning the question is fake and insisted that the administration is assessing all census options. the white house says it may seek new guidance from the supreme

court. the trump administration is imposing additional tariffs on steel from asia announcing what it sees as unfair business practices. the commerce department says it some steel from china is being sold at less than fair costs in the u.s. due to unacceptable subsidies. suggested imposing levies of more than 400% on imports from vietnam. president tweeted that beijing and brussels are pumping cash into the system and said the u.s. should do the same or continue being, as he put it, dummies who sit back and watch other countries play games. his comments sparked speculation the treasury could intervene to weaken the dollar. is one in europe it must do far more to protect the 2015 nuclear deal and as things

stand, uranium enrichment will move to the next level on sunday. the deal has been unraveling since the u.s. pulled out last year. uranium unitshed and will move towards weapons grade soon. take of july 7, we will the next step. if you want to express regret, do it now. if you want to issue a statement, do it now. our advice to europe in the united states is to go back to the negotiating table. spending the law, the resolutions of the united nations security council. under those conditions, all of us can abide by the nuclear deal. india'seader of opposition congress party has quit, accepting responsibility for its dismal showing in the recent general election. the vote saw prime minister narendra modi returned with an increased majority.

plus, congress record its worst performance since india's independence. india must be rebuilt and that required hard decisions. global news on-air and it tictoc on twitter powered by more than analysts inists and 100 20 countries. this is bloomberg. shery: let's get a check of how markets are setting up and asia. sophie: checking in on the 70sie dollar, by -- a buying ..s. since this morning this after commodities got a midweek lift, reflecting positive trade numbers such as a record trade surplus from a record trade surplus from australia. we will have more shortly with garfield. lithium miners are in focus after analysts warned of negative sentiment. against that backdrop, it has

been rated market perform. the stock has had a tough time since early 2018 fallen to levels last seen in september 2017. we're keeping an eye on aussie banks today. we will also be watching for reaction to a report that brookfield is set to finalize a deal and we are also watching and independence group which was downgraded at jpmorgan to neutral. also the company said its tropicana production was within operationsile other exceeded guidance. paul: thanks very much, sophie. let's get more on what we should be watching us training gets under way in asia. soar again.ning to

: it is a bit of everything except commodities rally, i like to call it because as well. rallying that is part of the picture. yields are so low, we had trump's nominations recently for a couple of headboard governors who might actually managed to get nominated this time and they are both talking talk about interest rates are lower, christine lagarde the ecb to replace mario draghi, so there is central-bank dovishness breaking out all over the place. that is seen as supportive of stocks. some of what is also driving the gains are that sectors like utilities, which offer dividends, higher yields, as it were, they are doing well because bonds do not give you much in the way of yield. you are probably buying those for safety or for capital gains, in fact, driven by central

banks, so if you want yield, you go and buy stocks. that's the world we're in now. that gives you a reasonably guaranteed dividend, so that is the yield you are going for. picture, you can see this rally continue for quite some time. the rally inbout the aussie dollar which hit the highest level and almost a month. this coming days after the rba cut rates. what is driving it? >> part of the problem is that the rba cut rates and signaled it was not really a surprise that they would do this. they signaled they will probably now sit for a wild see how that plays out. they don't have a lot of ammunition left in the tank, down at 1%, and there has been chatter at various times that about 0.5% would probably be as far as it would be worth them going, though they would have been inclined to sit anyway.

meanwhile, the fed is strongly expected to cut this month or soon after and then to cut again , so that is helping to drive the aussie. the relative rate picture is only going to sit in their favor. yesterday, we had two bits of news. first of all, a record trade surplus, so that helped drive the aussie. come the same sort of thing is helping to drive the kiwi and the loonie because new zealand and canada also demonstrating strong trade surpluses -- as you can see, the same sort of thing is helping to drive the kiwi and the loonie. it became clearer this morning the government is going to get his full set of tax cuts through the senate, which means that this year, the immediate ones will come in quite soon, so that is seen as being a bit of stimulus the economy desperately needs and perhaps addressing one governor's concerns,

which is that the government needs to do more to stimulate the economy. very the governor has been patient waiting for that help, hasn't he? thanks for joining us. you can check out gtb live -- ive and see some of the charts we have been talking about. the president of the cleveland fed oversees a large range of manufacturing. she says businesses are concerned at the simmering trade war but investment plans remain generally on track. definitely a concern. the trade policy uncertainty. it is definitely rising in terms of their concern. most of them and the majority of them say we have not changed our investment plans. we're still on track with what we plan to do. there are a few now that say i

may be rethinking that are trying to assess it, but so far they have held in. some firms have already reorganize their supply chains. some of them are taking it in stride saying they wish the uncertainty were over. tom: is a tariff just and import tax on the businesses of your cleveland district? >> i do not view him like that because some of it, there are costs to imposing tariffs, of course. if you reorganize your supply chain to get away from the terror and you happen to reorganize it in a way that is not as efficient, that is a dead weight loss. you are not collecting a tariff war be an efficient and how you organize your supply. ,ariffs are a tax, if you will even on a business who has to absorb it in their margin or

pass it on to consumers. i would like to get -- we would like to get to a point where we have free trade. of course, it has to be fair trade as well. part of the things that firms are telling us is the uncertainty around where trade policy is going, where tariff policy is going. tom: but is a dead weight loss spelled h-a-n-o-i? will they just moved out any trade upset to vietnam? you are in the absolute heart of what america has to do with with this trade war. the fedd you recommend assist us through president ? ump's trade war >> we have to take as given policies that are outside of the realm of monetary policy. that is part of the economic realm we are living in. the uncertainty created by some

of the policies and changes in policies, we have to take that as perhaps impediment to growth and think about monetary policy in that context. we are not in a position to give advice to the president about his policies. he is obviously pursuing policies that he thinks are the correct policies. as a monetary policy, we take them as part of the economic environment and then assess where we think the economy is going and how to calibrate our policy to it. is the cleveland fed president speaking exclusively to bloomberg. coming up next, president trump stares the currency pot accusing china and europe of manipulation. we will look at his complaints next. this is bloomberg. ♪

paul: president trump is accusing china and europe of playing what he calls a currency manipulation game, says the

united states should do the same or risk being what he called dummies who sit back and do nothing. let's bring in the director of domestic policy studies. thanks for joining us today. , according to president trump. he did not specify too much beyond that or if he is sinking about intervention or what might be coming down the line. given what happened with trade, do you think there's a risk of a currency war brewing? >> i don't. i think the president often times takes to twitter to exercise some frustration about what he sees that day. , thisve seen with trade is one of the things that reflects some of his feelings about the fed, maybe some continued frustration with jerome powell, some continued frustration with the fed's independence as opposed to what he perceives as activity that is happening in europe and in

china. i do not seriously take these tweets as anything more than him he would behat personally frustrated about, and i think the policymaking systems in the u.s. are sufficiently independent that i would not worry too much about it. paul: we have had a little bit of movement on the trade front today. we had white house trade advisor navarro saying this dispute with china is just that -- it is a dispute, not a war, and it will be sorted out. i guess the key question is -- how long will it take to sort out? >> how long is it going to take and the question what does sort out mean? i think we should have a high degree of confidence that there will be some kind of limited scope agreement that deals with maybe a very few number of issues, not the least of which, of course, is the current account deficit, the purchase of u.s. agricultural products, and on the chinese side, maybe something with respect to

loosening of restrictions on quality, which has been the focus of discussion over the last couple of days, but -- the loosening of restrictions on huawei. but if that agreement reaches the broader issues, if the u.s. has true enforcement mechanisms, these are open questions, in my mind, that we should not expect a deal to really address. the question of if we get to a deal is less important than what kind of deal, and to your original point, how long it will take to reach agreement. that: it was said after she-20 summit that the president might be softening on china. how much low back is the president getting from hardliners? blowback? >> in the u.s., it is significant. a number of people have said they do not believe the president should be softening his stance in any way, shape, or form on huawei. marco rubio of florida, mitt romney of utah, tom cotton of

arkansas, all u.s. senators who have said they are not interested in seeing the u.s. softened its stance on huawei, and i think that will certainly affect how the president views this, so there has been some negative reaction. focus ofing to be the these next several weeks of discussion, exactly what the administration is trying to do ,ith respect to huawei potentially for example allowing u.s. businesses to do business with that company. shery: how much more difficult will be china-u.s. relationship get, given that if they reach an agreement between the two presidents, you have other actions taking place, not only through u.s. courts but the doj? you just have several branches of the united states of america china going at it against .

>> there are a number of government agencies pursuing action against china or in dealing with chinese assets, dealing with chinese corporations or potential chinese interest in the u.s.. you also have the sense there is more attention being paid to chinese activities outside the business and government realm that go into, for example, their role in u.s. civil society. those are things that are being paid much more close attention to in the u.s. you have the u.s. side, but on china's side, you also have factors that could potentially argue for greater tension. for example in china, there's an xi ise that president trying to use this dispute with the u.s. to bolster a sense of nationalism. that, too, also works against the two sites potentially come into some sort of agreement that is lasting. i would look at the dynamic both in the u.s. as well as in china.

paul: in terms of the u.s., is there a sense nationalism could be bolstered their as well because all this trade rhetoric has pretty much made china bashing and essential as we count down to the 2020 election. >> that's a very good point. we are entering a very competitive part of the u.s. presidential election cycle, even though we are well over a year away. heatede democrats in a primary, president trump continuing to have his platform as president expressing his points of view and the one thing democrats and republicans agree on is that china is not a new act -- china is not a good actor. only u.s. presidential candidate, frankly, who has had a softer approach is joe biden, and he has been sleeping in polls of late. it will be interesting to see as we enter into this political cycle how much more friction is inated because the politics

the u.s. suggest being tough on china is a good position to have politically. president trump tweeting a moment ago about the census citizenship question, saying the news report about the department of commerce dropping its request citizenship question is incorrect. is this important? >> it speaks to the issue of a verytion which is important issue in the political sense because remember, a lot of his political to his agrees with him on immigration, wanted to take a harder line stance on immigration and the census question is related to a larger suite of issues around the value of using immigration policy as a political issue. for the president to look tough, for example, on wanting to identify who the citizens are in

the u.s. when it comes to the census. this is not the last we have heard of this issue as well as the immigration issue going forward. always great having you with us. thank you. up, u.s. presidential hopeful elizabeth warren has declared war on wall street. where sheis exactly is winning in some respects. we will investigate how when we come back. this is bloomberg. ♪

democratic presidential hopeful elizabeth warren wants to break up big banks and get tough on wall street, so why are some prominent names flocking to her side? bloomberg's finance reporter has been looking for answers. surprising.n pretty what is her appeal? >> it is surprising. when i started reporting the story, i was surprised how easy it was to find wall street people saying she's not that

bad. isn i heard at times was she smart. almost everyone i spoke to said she was smart. in a harvard law professor, and she really knows harvardf -- she is in x law professor -- she is a former harvard law professor. when i came to specific banking policies, that's when people weaker and their support for her. paul: what does wall street had to fear from elizabeth warren? >> i think wall street has from elizabeth warren. jamie dimon once said he did not think she knew what she was talking about when it came to banks. she snapped back and said she knew exactly what she was talking about which is why banks are scared of her. we have seen these public and that,lashes, but beyond warren is talking about laws and

public policies that would raise taxes, that would be more strict on the financial sector in terms of regulation, so those are definitely the kind of conventional wisdom reasons why people on wall street generally do not like her. the ones we spoke to were extremely rare, but very senior, and that is why i was surprised. have an openight mind towards her, but does that mean that equals a vote, though? able to raisen money in the past from people in the securities industry, but so far, people i have spoken to have not voted with their wallets yet. they are open-minded, they think she is smart and they are giving her a chance and if she looks like she has a shot at winning, they will back her, but for now, everyone is still laying it cool, not ready to commit yet and not willing to donate money yet -- everyone is still playing it cool. paul: thanks for joining us. quick check on the latest business flash headlines -- the french unit of samsung is being charged over accusations the ethicalbreached

commitments. the charges of misleading were filedpractices in april. samsung says the allegations are unfounded. if faced similar accusations in 2012. move 30%d dell plan to of their production away from china. the nikkei says other tech giants including microsoft, sony, and nintendo are also looking to move manufacturing out of china. last month, bloomberg reported google has shifted much of its production of u.s.-bound motherboards to taiwan. paul: a former goldman sachs banker links to malaysia's 1mdb scandal has been banned from hong kong's banking sector for life. he is accused of working with a malaysian businessman to divert

billions of dollars from the state investment funds and has already pleaded guilty to u.s. charges of conspiracy to launder money. bery: coming up, we will joined by a partner at nobuko k at thei as we look outlook for japan's retail sector. plenty more in the next hour. paul: let's get a quick check of how the markets are trading as we look to close out this hour ." "daybreak australia futures in australia pointing higher by .3%. this is after we saw another solid rally on u.s. equity markets. take a look at the aussie dollar, though. the central reserve bank of us trail you has cracked through the 7% barrier -- the central reserve bank of australia. trade balance thursday, largely thanks to

surging iron ore prices. this is bloomberg. ♪ we're the slowskys.

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>> i am paul allen in sydney. we are under an hour away from market open.n >> i am sophie kamaruddin in hong kong. welcome to "daybreak asia." >> our top stories, asian markets look set to rise after wall street reached new highs. futures pointing to gains. trade remains in the headlines. talks with