betty: i'm betty liu in new york.&a activity shows no signs of slowing, up 42% in 2017 over the same period last year. our next guest believes a large reserverves -- cash will continue to drive japanese acquisition activity despite $18 billion in sour deals already this year. he is a mergers and acquisitions partner at a law firm. he joins us now from tokyo. thank you so much for joining us. we keep hearing about this, these companies in japan with huge cash piles, shareholders getting set up. they want to see the money getting put to work. what is going to convince the company to look at mergers and acquisitions or overseas versus going in and buying back around stock -- buying back their own stock? >> there is definitely a higher degree of accountability being demanded from japanese companies regarding the use of their excess cash. they are not putting it to use in capital spending. in low growth environment japan is definitely going to continue to drive overseas m&a acquisitions. the growth story is one that is mak

i am betty liu.e been of course digesting everything we heard today from the fed meeting and janet yellen's interactions with the press today. her statement, essentially, sort of adjusting the balance she came front and center for investors. what effect will that have on long-term rates? shery: it was a little bit more aggressive than i thought, especially the unwinding of the balance sheet and the fact that yellen just struck a little bit more hawkish time when it came to the rate hikes and everything else happening with the hiking path for the fed. we are seeing a bit of jitters in the market. a bit of a flight to quality in asia. we are seeing treasuries gaining ground and yields falling in the asian session as they start to trade. that is had to sophie kamaruddin for detail of how the markets are opening through sophie: some jitters perhaps -- are opening. sophie: some jitters perhaps. could some saying that spark volatility in the coming months. we do have treasury yields continuing to fall afte

betty: i am betty liu in new york.g banks stumbled in part two of the fed's annual stress test. capital one has to shore up risk oversight to fix material weaknesses. us,t minerd is back with cio of guggenheim partners. josh rosner joining us, as well. i do not get the sense you like these tests. josh: i do not like these tests. they were important during the crisis, they gave a sense of confidence that the fed has this. but at that point, there was a lot of missing information the fed did not have, they were take-home exams. now the fed is saying we will focus on one specific portfolio each year, primarily. betty: the fact that some banks, fewer and fewer are not passing the test, but the fact there still are some banks not passing, doesn't that tell you these are tough? the problem with that is, one, it starts to feel like lake woebegone, where all of our children are above average. we had only one bank in trouble here today. in the fed is really putting premature behind public companies, saying they are fine, testin

i'm betty liu.urse, we're just digesting the aftermath of this the president to pull out of the paris climate pact. is it going to have on the u.s. economy? so far, no impact at least today the markets in the u.s. in fact, we closed at near the records. >> yeah. it goes beyond paris, though. i think a lot of people are also the u.s. dropping out of this climate deal now undermine the credibility of the the australian? is this going to be a hindrance work on trade issues or other types of national security moving forwardes with some of these countries that do support this paris deal? that's going to be the key question, as we do wait for this process of the u.s. to exit paris. meantime, we are looking ahead to some big u.s. data. markets that's what the is focusing on at the moment. let's get the latest. >> well, yvonne, as betty pointed out, trump pulling out accord,aris climate wall street's focus was on the private job report. upbeats a little more than expected. that's helping trickle into the go

i am betty liu in new york. yvonne: i am yvonne man in hong kong. ore still to come with asia's first major market open just minutes away. betty: sophie kamaruddin watching the opens in sydney and tokyo. south korea is closed today. what is on your radar today? kicking off with what is happening in tokyo, i am keeping an eye on nissan motors today. we saw the carmaker have a 6% bump in their maingear local -- main vehicle sales. australia saying they will not take off without subsidies. over in sydney, keep an eye on anz and other lenders. we will have an exclusive interview in one hour's time. he has warned of slowing revenue growth. banking stocks have fallen 3.5% year-to-date trade iron ore miners also on the radar as they since octoberwest 7. take a look at the futures board, signaling a drop in tokyo and in sydney. it set us up for a mixed start in asia. take a look at hong kong and china futures, pointing to a slight rise. this after a subdued session on wall street that's all the s&p 500 pullback from a record high. amid the cautious sentiment

betty: i betty liu in new york. work in the india going -- oil and gas reserves after a hiatus of eight years. the two companies are providing their partnership after coming together in 2011. they have been encouraged by government reforms including the freedom to price and market gas. the reserves are situated in deep water of india pass coast. cory said to be ready to offload its stake in puget energy, the biggest facility in washington state. the lenders infrastructure sending the sale of its 42% puget's current come in a deal that could be worth $2 billion. puget's holdings to other investors may exercise their right, first refusal to buy employee holdings. betty: a woman raped in 2014 by a new delhi over driver is suing executives for feeling to apologize for what her lawyers call outrageous conduct. she alleges that the third former executive questioned the women's claims and they made up a story about a rival being involved in your account. in a statement uber says it is truly sorry she has had to relive her

betty: i am betty liu in hong kong as well, joining for the week with yvonne.to cover.f we just actually had the japan trade numbers as well. gave credence to the boj wanting to keep the pedal on stimulus. yvonne: haruhiko kuroda is treading water very carefully because he cannot speak to much about this exit strategy despite the fact that you get the pressure from the fed and ecb. they have to be able to stop the ulge. this was a mixed picture. a mixed year for exports. imports beating. we will see how that goes and gets to the latest with reaction to those numbers. sophie: slightly more favorable move with the numbers we saw on friday. slightlyks ended higher. the nikkei 225 out the gate up .2%, despite the surprise swing to the deficit. less than forecast. shares in tokyo now rising for a second straight day. looking elsewhere in the region, weakness in seoul. the asx 200, swings between gains and losses at the open. a possible driver for investors of course this morning. chinese property prices for may due later in the morning. we also have something for in

been banking on wonder woman after the warmer to work hand -- former two work hand. ♪ ♪ betty: i am betty liurk. haidi: i am haidi lun in sydney. you are watching daybreak australia. friday with the disappointing jobs report, you know all about that. what a miss we had. betty: it was quite a miss, but --did lead to a stock market did not lead to a stock market decline. we saw equities rallying. we focus on the political stuff over the weekend. there was another attack in london. there is uncertainty over the ..k. elections later this week in the u.s., this will be theater. the former director comey testimony will be closely monitored. this is interesting to digest. it will make the jobs report seem like it was a breeze. here with more. what do you think will stand out for investors? kathleen: on friday, the federal wasrve hikes, we knew this the general election that theresa may called weeks ago would be an important event for the u.k., for the global market. the terror attack put that much more uncertainty and tension around this. in fact, i want to show you a chart as we get started because

in new york, i am betty liu.e will look at the action of wall street into the asia-pacific trading day. the equity markets in sydney are closed. we will not get early action -- reaction to what happened friday tech stocks,the apple, netflix, facebook that took a huge tumble for various reasons. no one is able to pinpoint what happened, but look at the nasdaq , down 113 points, the sharpest drop since 2008, down 1.8%. we ended for the much unchanged on the s&p, the dow also higher, 0.4%. investors are still digesting the results. theresa may, that hit the pound. we have a lot of different banks meeting, including the fed in the boe. haidi: that is right. the fed widely expected to go for the hike and leading the central bank pack. they are inching towards modernization normalization. the bank of japan will be under pressure alongside janet yellen, trying to explain the brexit. rebalancing. in asia, it is a trading start that is quiet. we are closed for the cap -- the queen's birthday. expectations of strength when

i am betty liu. yvonne: and i am yvonne man.g received more than three dozen pledges to by its 737. orexpects 240 orders expressions of interest for the plane from at least 10 different airlines, worth roughly $30 billion. boeing is confidence it will -- which has racked up a considerable order lead. >> we actually think the timing is just right. , it islook at the market at the heart of the market. we have 4000 737s in backlog. betty: airbus says the boeing competes with its own. the airbus has built a wide sales lead in the three years since its construction, and it could fly further and more cheaply for passengers. airbus announced orders worth more than $12 billion. the ceo says he does not see the boeing as a threat. >> i do not think so. we have 80% marketshare right now. the 737i think is competing with the 737 -- with a different 737s. anchor: qatar airways may seek legal recourse. the carrier says it is assessing the longer flight times it faces because it is barred from saudi , your unique, egyptian uae, and-- from sau

i am betty liu in new york. yvonne: i am yvonne man in hong kong. denied anaire fraud and diverting loans as he appeared in court in london to fight extradition. he was arrested on charges of conspiring to defraud banks, through a $1.4 billion loan to is now defunct airlines. he was told to surrender his airport. he moved to england, saying he wanted to be closer to his children. the jury in the u.s. trial of former nomura bond trail say they may have trouble reaching a verdict on at least one charge. they began to liberating last week after a month-long trial of federal court in in connecticut. the three are accused of lying to customers about the prices of mortgage-backed securities. bloomberg has been told the carlyle group expects between $5 billion and $6 billion for its fifth asian buyout bond. the group aims to close a new fund in the second half. competition for buyout deals have increased in asia, with a sovereign wealth funds, pension funds, and a large corporations joining the fray. uber ceo travis kalanick says he is taking a leave of ab

i am betty liu. yvonne: and i am yvonne man. ub.joining the msci they also added 53 more stocks to this conclusion. a long time coming for china, a lot of questions. betty: given we were not the ones flags prominently, the stock connect china put in place. that being a key reason why they decided to include these shares. yvonne: they mentioned it was a bringingger, overall, a boost to the hong kong and shanghai markets today. markets a after oil slumping into the bear market, from the highs we saw in february. let's see how new zealand is performing this morning, continuing this negative tone. stocks down 0.2%. still a slightly higher dollar story, the kiwi at .7243 against the dollar. energy stocks in australia, those are the ones to watch. under pressure today with wti. tumbling to the lowest level in nine months overnight. the market getting fatigued on these opec-led cut. futures heading lower in sydney. nikkei futures ending 0.8% up. futures down 35%, according to chicago nikkei futures. dollar-yen, 110.35. we expecting boj

in hong'm betty liu kong where it is 6:30 a.m. first word news with ramy inocencio in new york. ramy: good to see you in hong kong. we are following secretary of state rex tillerson who has canceled a trip to mexico to resolve the qatar crisis. he has had more than a dozen phone conversations with the gulf and regional leaders in the first confirmation the u.s. is attempting to mediate. the u.s. is in a delicate situation with saudi arabia and qatar hosting its middle east headquarters. new zealand is open to a free trade agreement and does nothing major issues. the trade minister spoke after talks in washington with robert ross. -- wilbur ross. they want the u.s. to be an important part of achieving that goal. the talks in washington were encouraging. navy divers have found the bodies of several sailors from the stricken destroyer ss -- uss fitzgerald that collided with a japanese container ship over the weekend. the vessels were towed back support. this home of at the seventh fleet. unclearays it is still if the leaders of the s

i am betty liu in new york.he fed is almost universally weekraising rates this with at least one more hike coming before the end of the year. we will discuss all of this and the prospects with steve. good to see you today. ok, so, it almost seems like everyone is saying that this is it and we are going to get the rate hike. the more shop would be if we did not get one this week, would-- the more shock be if we did not get one this week, right? >> correct. betty: let us talk about the odds here. the agar, something like 93% and above that we are going to get the height this week. if you look at the blue line on the screen, it is still sort of according tod -- fed fund futures -- that there will be a september rate hike. it dropped dramatically. why do you think that is? why are we so unsure of another rate hike? steven: in some ways, this is not new. in recent years, as the fed has wanted to raise rates, the market has been skeptical. the reason there has been skepticism is because of the inflation outlook. inves

i am betty liu in new york.ne: i am yvonne man in hong kong. you are watching daybreak asia p first word news with lisa parenti. lisa: president trump says the supreme court's partial review of his travel ban is a clear victory for national security. they said it had gone too far by blocking the 90 day band. people will be banned unless a genuinehow relationship with a person or entity in the united states. the court will consider whether the executive order is constitutional. results president michel temer has been charged with -- brazil's president michel temer has been charged. in the car caught up wash. he denies wrongdoing and said on monday than of the could destroy his -- that nothing could destroy his government. italy says it will not have to save anymore banks after the last-minute rescue of two lenders over the weekend. pierre carlo reject did that this is the intervention that regulators were trying to prevent. ,e insisted it is not a bailout but within you rules and will be the last -- within e.u. r

i'm betty liu in new york. >> we had some conversations out of the invest conference. we are expecting more. he says he is less sure on the country these days. more so he is saying more opportunities stateside. >> a wide-ranging conversation from the u.s. health care system to donald trump to the kidney dialysis world. they covered a lot of ground. we are going to cover more ground from the bloomberg invest conference. we are going to have bill gross. that is going to be later in the day in hong kong. >> and the next day we will have paul singer. and david rubenstein. you don't want to miss those conversations happening tomorrow as well. ecb,e plenty of nerves, the u.k. election and the james comey testimony. you have to wonder what is going to have the biggest potential to affect the markets. it is a relatively risk off so far, stocks down. 71, 84 u.s. cents. australia, numbers coming out a lowon, we are expecting current coming up from the government. maybe even a contraction. futures pointing higher, a bit o

su: it is past 6:00, i'm betty liu. we are watching all of the potential market moving event this week. one news event, a big merger, an investment, activist investor dan low from third point targeting u.s. and japanese companies, now putting his sights on a european company, nestle. he is going to have $3 billion -- sayingdominantly they should do other things like sell their state in our riyal. l'oreal.in it is always a pleasure to have a bit of breaking news to get is underway first thing monday morning. in asia, the story to talk about is oil prices. the questions are reminding test remaining over the debt. we are also having a chat around various commodities with our first guest. he will be in in 10 minutes. julia: let's get a test betty: let's get a quick recap of how we ended friday. pretty mixed right now. onhave been keeping our eye textures, they rebounded. will they go into the week with selloffs that we have seen in the past? lots and lots of news events happening as well as economic numbers. , they in washi

betty: i am betty liu. you're watching "daybreak asia."et the first word news with courtney collins in new york. courtney: the biggest angst in the u.s. have cleared the first hurdle in the fed's latest stress test, indicating there more able to withstand future stocks. all 34 beat the minimum threshold. morgan stanley brought up the rear for the second year in a row. dealest assesses how banks with hypothetical turmoil such as an extended stocks slump or housing crash. central bank has raised costs for a second straight time. the most hawkish authority in g20 extended its hiking cycle, from gasoline to farm products. the decision is congruent with convergence of influent -- inflation 23% target. analysts say that means at the hiking cycle is over. indian prime minister narendra modi heads to new york to convince donald trump to allow skilled workers in america. he will attempt to explain how the schemas benefited host countries, boosting u.s. innovation and competitiveness. the indian i.t. trade body says 75% of u.s. tech companies use in

i am betty liu, here in new york. yvonne: i am yvonne man in hong kong. atching "daybreak asia." betty: breaking news out of japan. a lot of economic numbers we are waiting for. pricesp is cpi, consumer yet again missing economist guesses. this is year on year, economists estimated a rise of 0.5%. when you look at core cpi, excluding food and energy prices, not much better. also missing estimates, no gains at all. where is the inflation for the bank of japan? that is for the month of may. if you look at the jobless rate, up 3.1%, that is exceeding what economists estimate of its 2.8% jobs rate. the jobs to applicant ratio at 1.49. it shows pretty much no move on inflation. that continued frustration for japanese officials and for the bank of japan which says, where is that inflation that allows the boj to start stepping back on that stimulus? inflationtheir target, still. let's get more from adam haigh. pylon that the retail sales numbers we got yesterday, the stimulus is still not working there in japan. adam: absolutely. it is hurdle after hurdle, isn't

let's take you to the wharton summit where betty liu is standing by for an exclusive interview.s of challenges facing carrie lam. take it away. there are. we will go through all of that in the next few moments. i am pleased to welcome carrie lam, the incoming chief executive of hong kong. thank you for joining us. watching your speech a few eloquently laid out hong kong's place in this region and also the world. you are just about a week away from being sworn in as the next chief executive, so how do you feel? >> i feel excited. after all, this position of the chief executive is an extremely important and rather unique position. the basic law that is our constitution, the chief executive is elected by an election committee, appointed by the central group, and he or she is required to be accountable to hong kong and the central people's government, so i am very excited to take up this position, but also feeling a huge challenge. >> i am match in. what will be your first orders of business once you are in office? .> there are quite a lot i have rdf accomplished a -- have already a

i am betty liu in new york. yvonne: i am yvonne man.-largest looking to tie up utility payment apps as the fixed income share of the e payment market. they are looking for a fifth of india's estimated $6 billion payment market by the end of next year. they want to offer support validating will be quick -- mobi kwik at around $13 million. betty: the region's biggest real estate deal. logicorp has things in the you cannot kingdom already -- united kingdom. warren buffett is about to start an annual private lunch auction to raise money for a homeless charity in san francisco. it starts at 7:00 pacific, 7:30 hitshong kong. the big come near the end. million, tying the record set in 2012. sinceaised $24 million 2000. plenty of big stories this week, covering them here on daybreak asia. we have china, india, pakistan gathered for the shanghai cooperation organization summit. a look at the friction, these will become old members of the strained relations -- full members of the group amid strained relations. slowing to 1.4% on the quarter, down

betty: i'm betty liu.it back hard at president trump, saying his efforts in north rea have been indispensable and played an important role in seeking peace. yvonne: in response to president trump's tweets, which said while he appreciates the efforts of presidency in china to help -- president xi jinping in china to help, at least he knows china tried. joining us is the associate professor of chinese studies at young state university joining us live from seoul. we're still trying to get clarity on what the u.s. is asking from china. you saw that tweet from the president saying thanks but they are going to wait on their options. then you have jim mattis, rex tillerson at this meeting speaking for china's help in reining in north korea. who is the prevailing voice? >> the best reaction is one chinese expert, quoted as saying we don't assume that president's tweets speak for the administration, which is indicative of the confusion over what signal to take. at this point, i think we do have to assume that that

invests betty liu at the summit in new york earlier today. that different than historical probabilities. it is been quite some time since we have had and a -- an economic slowdown in the united states. it is one of the longest expansions in history. it is morese, typical probabilities. when you look at the u.s. economy, we do not see the typical signs of overheating that you traditionally do at the end of the cycle. you do not see that much excessive credit extension, wage growth is moderate, at best. is verya fed that gradual in terms of their pace of removing accommodation. with all that said, you do have said the play and tightening of policy. you have a situation in terms of the u.s. employment markets where it is getting stretched. there is increasing uncertainty around the path of fed policy. plenty of uncertainty around fiscal policy. at this stage of the cycle, i think it is prudent that investors, given valuations, think about preserving capital and protecting a negative scenario like an economic slowdown, which could lead to increas

i am betty liu in new york. yvonne: i am yvonne man in hong kong. giants as it is launching a new highly encrypted phone at the mobile world congress in shanghai. told bloombergce company will continue to set aside 10% of its annual revenue for research and development. they said china remains the toughest market because barriers to entry are so low. >> china, being the most competitive market, and it is very important to us. we are going to display the security here in shanghai. we will see that we will demonstrate the leading encryption technology in all four layers. , system,are layer platform layer. things will go into the business and other public service sectors. anchor: they have launched their latest smartphone. aimed at younger people as well as what honor calls people who act young. the label comes from the technology that allows better quality photography and art places. it runs android seven and goes on sale in europe at $500. prices for north america have yet to be set. yvonne: facebook says its top to billion -- 2 billion users -- it r

i am betty liu. yvonne: i'm yvonne man. you are watching daybreak asia.o to first word news with tom mackenzie in beijing. governorbank of japan is seen as increasingly likely to get a second term ahead of a policy meeting this week. he is the only possible contender after his current term runs out next april. none of the economists see a change in policy, and the vast majority don't expect any change until after his current term ends. reports from japan say shinzo abe may invite xi jinping for a state visit next year. the news says he will go to china earlier for a groundwork trip. it will be the first visit to japan since 2008. the leaders met win shinzo abe went to china last year. germany is warning that the saudi-led isolation of qatar could lead to war. they say the situation could rapidly deteriorate, though there is still a chance for resolution. turkey is pushing ahead with a military base in qatar saying it is for security of the whole goal, not 1 -- goal, and -- specific country. this seems to be done by the end of ramadan. russia wants to work

lip falconewas phil in a rare and exclusive interview with betty liu. colleague erik schatzker traveled to st. petersburg, where he set down with several of russia's leading business and political figures. here are the highlights of those conversations. >> mr. trump was promising a warmer relationship with russia. do you still think that is possible? >> it is not warmer. world will sleep better if russia and america will have a better relationship, but his ability to conduct policy now -- >> the whole world would sleep better why? and americaussia are the largest nuclear powers, and not to have dialogue between them i think makes the world a much more dangerous place. >> because there is the risk of what? >> risk of any conflict which can happen. facts.ace the we have the situation before. >> you are referring to the cold war? >> we are in a cold war. >> you believe we are in a cold war? >> absolutely. >> president trump said he will consider major action, his words , if his administration decides that steel and aluminum imports threaten national securi

vonnie: betty liu also got david abouttein's take president donald trump policies. david: the u.s. last year, the economy grew under 2% and was expected that it would grow 2.5% this year. the fed will go ahead with this plan to increase rates. the economy is good, but not a stronger people would like. there is some uncertainty about the tax legislation and if that will go through. betty: do you think it will go through? david: i think something will happen, but not this year. it will probably drag into next year before it happens. i think that slowed the market down. i think the market that the president would get this thing through, but it is taking more time than anybody thought it would take. betty: have we hit peak trump trade? has that moment passed? david: i cannot say for sure, but there are many people who say it will take longer forget some of the things he wanted to get done to get done and he recognizes that as well. betty: do you think the fed is making a mistake at all by continuing to hike? are they hacking into a slowdown? betty: the fed is increasing ly small rates

he sits down with bloomberg's betty liu and discusses how private equity stacks up against the hedgerld. phil: when looking at some of the different investments i've had over the years, the most success i've had is buying things that have taken a long time and you can incubate or help nurture and grow and fix and twist and turn. that is tough to do in the hedge fund model. you can do it in a private equity model, but it's still a little bit different. i think this structure gives us the flexibility that we need and really gives us the opportunity to hopefully never have to sell any of these companies that we control. ofly: now, to the firing anthony levondowski from uber. it is gone and it were a microscope -- under a microscope. how will this case impact the future of alphabet and uber's self driving car efforts? will it spark a talent war for other star engineers? we are joined by brad stone, an author of a book about the founding of uber and airbnb. is this a turning point? brad: the lawsuit shows they are willing to leverage or exploit their intellectual property. google was firs

betty: i'm betty liu. after 6 p.m. here in new york. we will be watching how all the action in washington plays into the trading day. investors striking a bearish town today. the markets following two days in a row. there's a lot investors will be digesting. we've been talking about this all week. you can imagine every trading floor will be glued to the television when james comey takes the stand on the hill and testifies. that has dominated headlines as well today. also, looking forward to the u.k. elections. all that uncertainty leading to the declines you see here.as np down about 3/10 of 1% .the dow, off by almost 50 points. tumble.aking a slight again, setting you up for a softer open in asia. haidi: that's right. that's not even counting what we get out of the ecb. we expected guidance from mario draghi. markets are calling this super thursday, led by the potential for political absent from the james comey testimony. asia, say, here in looking like a bit of a softer session, at least a mixed start as we get this risk off tone. new

the co-ceo of carlyle group talk to valuations with betty liu in hong kong.are lower in by 20% of comparable assets and the an nine at states. that theory has been that asia is expensive. it may seem expensive in certain areas, but it is cheaper than the united states, which is very expensive. thanks carlyle has done 90 deals in china with $70 billion. -- worth $70 billion. francine: janet yellen made it clear she will go forward in tightening on plan. are pricing and low in the september move and seeing even.mber increase as an where back with kettner.ignos elsa: i think the problem is even if they tell us they will raise three times, people will be skeptical of what happens between now and december that could derail them. it could be that we will leave it until we see it. we already had this week saying optimistic things about the economy from chair yellen last week here at the fact that it is still only a 50-50 bet shows the market will not believe that until we get closer. maximilian: if we take a step back from what the speakers are speakers, but we see

. -- scarlet: savings account or a casino. , betty liu will be speaking with the head of msci, henryndez. let's get a check of the other headlines. trump is laying the blame for the death of otto warmbier squarely on north korea. he spoke about the 22 euros student today with the president of ukraine. this 22-year-old student today -- he spoke about the 22-year-old student today during a meeting with the president of ukraine. what happened to otto is a disgrace. mark: he died monday afternoon less than a week every was returned by north korea in a coma. he suffered severe brain damage. an american f-18 jet is shot down -- has shot down an iranian made drone in syria. the drone was advancing toward polish forces. another pro-regime aerial vehicle was shot down on june 8 in the area. the men accused in the london mosque attack is described by his mother as disturbed. he's being held on suspicion of terror offenses including attendant murder. his mother says he's been on medication for mental health problems. a u.n. mideast envoy says israel has taken no steps to comply with a security

henry chairman, fernandez, will be joining betty liu to talk about this. lots of questions for mr.- fernandez. let's eat you to first word news with mark crumpton. >> belgian media are reporting a person wearing an explosive belt and a backpack has been shot and "neutralized" at a train station in brussels. this followed an incident where people reported hearing explosive sounds. the belgian prime minister charles michel's spokesperson says he is monitoring the situation closely. they will not say whether it is a terrorist incident. a spokesperson for george's of voting in the state's closely watched six congressional district is going smoothly, but some issues have been reported. thevoting locations had wrong equipment used to check voters in. workers had to use paper lists as a backup. it may turn out to be the most expensive race ever for the u.s. house of representatives. voters are deciding between democrat jon ossoff and republican karen handel. president trump is blaming the bier squarely warm on north korea. he spoke about the student in the oval office today with the presi

hitter, a to a heavy few minutes ago our colleague betty liu sat down with pimco chief dan iversen -- dan lvascyn. >> that percentage we quote is not too different then historical probabilities of the recession. this is one of the longest expansions in history. is just more, it typical probabilities. if you want to look at this, we do not see the goal signs of overheating that you traditionally do at the end of a cycle. you do not see that much accepted credit extension, wage ,rowth is moderate at best there is also the sense that it is very gradual in terms of the pace of removing accommodation. with all of that that, you do have a fed tightening policy, a situation in terms of the u.s. employment markets where it is getting switched, and this increase in uncertainty around the path of said policy is paved around the path of fiscal policy. so i think it is prudent that investors, particularly given valuations, think about preserving capital and protecting against a negative scenario like an economic slowdown, which could lead to a falling rate. >> and if we were to see a downside sur

the co-ceo of carlyle group discussed it with betty liu in hong kong. >> valuations are lower in asia what you see in the united states, so the theory has been asia is expensive. it may seem expensive in certain areas but generally, it is cheaper than the united states, so there is a bargain here. emma: rubenstein says carlisle has about 20 deals in china. jonathan: we want to get you up to speed on the action and keep you up-to-date in brussels are that summit. it is -- brussels for that summit. it is set to conclude. alongside angela merkel will be the french president emmanuel macron. we do not have a time. , that we will bring it to you on bloomberg -- we will bring it to you on bloomberg. minister u.k. prime theresa may. we will bring you the joint conference and any comments get from the u.k. prime minister, as well. in the united states, it is about the financial sector under pressure kind of. banksf the largest u.s. cleared the stress test, examining their ability to withstand economic shocks. but a test comes next week when they look at their conference of analysis review and