i am courtney collins. this is bloomberg. all right, thanks. as the world waits to see what comes out of trade talks between the u.s. and china, the word from washington is they have been positive. our editor kathleen hays is here with the latest. what is the white house saying? >> well, as you said, so far the word is positive. day one of the talks on thursday, they will be getting noty for day two, perhaps surprising the chief economist to vice president mike pence was speaking at thursday. he was asked how things were going and here's what he said -- what i heard from the first day, and they have been there for a day of negotiations, it has been positive. the difficulty will be we will hear pretty positive things from china and the question will be, do they actually do them? that is the tough part. indeed. if you are at the negotiating table, how do you make sure that whatever is agreed to includes steps and guarantees to make it actually happened? ,e know that steve mnuchin after dinner in beijing, along with the commerce secretary, the tru

let's go to courtney collins. courtney: president james bullard his poll sill mackers have no business planning strategy week in advance because they don't know how it could change. speaking exclusively to bloomberg he said the predicted three or four rate hikes could put downward pressure on inflation. bullard wants the fed to change its course. >> the whole idea that you're naming the number of rate hikes way out in the future when you don't know what the data is going to be is something we should get out of the business of doing. >> a delegation from north korea has met chinese president as speculation that the trump-kim ummit could be canceled. trump and kim may meet in singapore on june 12th. and the administration says it's going ahead with preparations as normal. >> malaysian police have raided the home of their former prime minister as the new government reopens the investigation into billions of dollars missing from the one mdb fund. the scale of the fraud is bigger than initially thought. they are speakin

in the meantime, the first word news with courtney collins. tney: first up, america's closest allies will impose tit-for-tat penalties after the u.s. confirmed tariffs against them. wilbur ross announced duties on steel and aluminum on the european union, canada, and mexico on grounds of national security. the eu says it will retaliate immediately. mexico promised to scrap tariffs on a range of u.s. goods. canada says washington's decision is baffling. us.hey will deny the worst case scenario was imposing tariffs. announced today that we will take action. >> canada could be considered a national security threat to the -- of that canada could be considered a national security threat to the united states is inconceivable. courtney: a north korean delegation is expected to visit washington on friday. the trip would follow talks with a north korean leader and mike pompeo. pompeo insists things went well, and they are still planning for the historic summit on june 12. >> this is a difficult challenge. there remains a great deal of work to do. asmade

let's get to the first word news with courtney collins. malaysian prime minister has been sworn in promising to lead a business friendly administration. the 92-year-old says his focus will be on growing the economy and reducing debt and there is no case for devaluing the ringgit. he also said much of the money missing from 1mdb can be recovered and those responsible must be punished. [indiscernible] [laughter] [cheering] [indiscernible] courtney: a dam bursting kenya and killed at least 44 people with dozens more missing. water is rushing from the dam and swept away hundreds of nearby homes. kenyan authorities say the flooding is just the start of the rainy season in march and andkilled 170 people displaced more than 220,000. almost three quarters of the 47 countries have been affected. a 100 for your old australian scientist died after traveling to switzerland for an assisted suicide. david did not have a terminal illness but said his quality of life had worsened over the past year. he was happy to end it. euthanasia is illegal and austra

i am courtney collins, this is bloomberg. u.s. stock market close higher after support from energy and financials. let's go to remy inocencio at the wall with the big movers overnight. thank you and good morning. let's see where we landed with u.s. trading. the s&p 500, dow and nasdaq up. the s&p 500 at the highest in three weeks, the nasdaq the highest in seven weeks. getting close to the 2700 marks for the s&p 500. the biggest move since last friday. we are seeing some type of breakout. that is in large part with what you mentioned, oil. let's flip the screen and take a look at where oil is trading. first we will look at the i.t. -- etf function. ins is the biggest jump terms of 11 sectors of the s&p. the energy sector up 2%. this is its highest in the past three months. financials up 1.5%. nine of the 11 sectors are closed in the green. let's flip it up, take a look deeper at what is happening in oil. these are headed even higher in asia trading. nymex crude up above the $71 handle. brent crude above the $77 handle. especially

let's get the first world news with courtney collins.o lower china is tariffs on a wide range of consumer goods on july 1, including duties on clothing and footwear, washing machines and other. goods and beauty products the decision comes after a meeting from the state council, and follows president trump's announcement that he will proceed with measures against chinese imports. the u.s. commerce secretary says washington is concerned that the wto and other international institutions are too rigid and slow to adapt change. he told the oecd in paris the trump administration would embrace multilateral funding if disputes and failed to move faster. the president is due to hit europe with new tariffs, he said. organizationsal said here's a list of 10 things we must do right away. that kind of approach, as opposed to study groups proliferating more study groups is the kind of thing that gives us very great concern. courtney: china is accusing the trump administration of damaging its credibility by flip-flopping on policy, and reaffirm it will

hong kong.nne man in here's first word news with courtney collins. white house -- courtney: a white house economist has described trade talk as fairly positive. is the first public update on closed-door discussions between president trump's economic team and chinese officials that are scheduled to run through friday. -- dust and at rainstorm has swept through northern india. this severe weather brought down trees and houses. injuring around 300 people. the storm caught people by surprise because monsoon's season is still more than six weeks away. more thunderstorms our forecast for the weekend. the u.s. has charged former volkswagen ceo with conspiracy and wire fraud. over the carmakers diesel emissions scandal. vw admitted that it outfitted about 11 million vehicles worldwide with a cheat device. in theped down as ceo days after the scandal was revealed. he is the highest-ranking face charges. u.k. brexit secretary says he is 100% convinced britain will leave the european union customs union after the transition. in 2020. he said it new ideas submit

in the meantime, let's get you caught up with first word news with courtney collins. urtney: china says it will not threatsto what it calls on u.s. trade. the statement from a senior official came just before talks begin with trump administration officials. the official told bloomberg beijing will not accept as abandoningh its long-term advanced manufacturing ambition, or narrowing the trade gap by $100 billion. the world economy shows signs of stabilizing after a recent as abandoning activity strengthening for the first time this year. a faster pmi across 40 countries rose 53.5 in april, from march's six-month low of 53.3. it reinforces advice from moderation, with manufacturing economists not to bet against the world economy just yet. president trump's meskill fiscal stimulus plans are adding to the u.s. debt overload, forcing them ue bonds. the u.s. boosting the amount of debt it sells this quarter to $73 billion. it is also investigating adding another five-year sale to its regular calendar and planning to issue a new two months bill later in 2018. and the politica

i am courtney collins, this is bloomberg. betty: thank you so much, let's like -- take a closer look at the rally in u.s. stocks, the s&p closed at it -- and -- a seven-week high. a shot in the arm for bowles on wall street. su keenan has more. >> major indices up 1%. all, airfare, utilities, less expensive than the previous month, help to moderate inflation. reasons.a number of you do see the dollar weaker coming off this major rally. 2000, a record close for the small caps. telecom service shares, the index of high, as was the chip stocks, they were one of the big gainers. let's go into a stock that may decent moves. telecom moved higher, qualcomm moved higher, due in part to buyback of shares. positiveh a spate of news, a joint venture for aluminum production. cvshealth moving higher -- health moving higher, dodging a defamation lawsuit. you can find these charts. the dollar, has it been overbought -- has not been overbought this much since 2014. it shows the dollar against 29 different currencies. overbought, 72% versus a

let's get the first world news with courtney collins. urtney: iran's leaders have dismissed the u.s. withdrawal from its nuclear pact with their supreme leader calling president trump silly and superficial. he said on national television a troublesome creature left the party. >> i don't think they should do that. i would advise iran not to start a nuclear program and did i would advise it strongly. there would be severe consequences. courtney: president trump says he will be at andrews air base to greet three american detainees who are freed from north korea. trump says the three men seem to be in good health and also says pompeo had a good meeting with kim jong-un. lower after a deal to buy 77% of india's the cart for $60 billion and dow list think the price is too high . are morethey optimistic on the long-term potential and the deal was accidentally announced earlier. and new zealand central bank has helped interest rates at a record low quality the door open to could inflation. at oneor the cash rate point 75% and said it would remain

i am courtney collins. this is bloomberg. betty: let's take a closer look at the u.s. market closed, after positive economic data pushed higher, tencent recording record profit, easing concerns about its spending. su keenan with the latest on the rally today. production coming in strong. all of it helping boost the market. back into the market snapshot, that but the focus off the mixed messages from the north -- north korea, the u.s., back to the yield and bond. we're above 3%. the question is, if these higher treasury yields will force the fed to hike rates faster than initially thought. oil fluctuated around $71. at one point, up to the highest we have seen in four years, on a decline in u.s. domestic oil supply. the iea did moderate that. we look at the big moves. macy's was at the top in terms results,g blowout there turnaround, based on discounts, really paying off. international shopping sales strong. square, the ceo comes on strong on bitcoin or some kind of digital currency. the strongr riding sales data. helping a lo

i am courtney collins, this is bloomberg. now, to an exclusive interview simulcast on bloomberg television and radio. we are talking about rising trade frictions as u.s. allies had back -- hit back on the u.s. tariffs on steel and aluminum. we have james bullard and kathleen hays with us. mr. bullard, thank you for joining us. certainly a very timely discussion, with what we are seeing in italy, these tit-for-tat tariffs. tell us what discussions you might be seeing in the next fed meeting with your colleagues. how disruptive can this be for the economy? talk ishe trade increasing uncertainty in the economy. when i talk to people in my district back in the midwest or people over here in the far east, everyone is talking about how the trade talks might change world trade arrangements. however, i think the proof is in the pudding. it comes down to what is actually agreed upon as far as trade arrangements and i am not sure in the end all that much will change. what about the political crisis in italy, which has such an outside i

now let's get the first world news with courtney collins.ortney: china says it wants conference on trade and comments from the senior government official came hours before talks began the delegation of trump administration officials. the official told bloomberg beijing will not accept any preconditions such as abandoning its long-term advanced any fracturing ambitions or narrowing to trade gap by $100 billion. the world economy showed signs of stabilizing after recent moderation with manufacturing activity strengthening for the first time this year. markets factory pmi across 40 countries rose 53.5 in april. of 53.3,h is low economist from goldman sachs and j.p. morgan chase say not the back against the world economy just yet. president trump's massive fiscal stimulus plan is adding to the u.s. debt overload and forcing the government to drive up bond issuance as the fed shrinks its balance sheets. the us treasuries the state the amount of long-term debt itself billion and to $73 also investigating adding another five year sales to israel or

i am courtney collins, this is bloomberg.ting down to major market opens in the asia-pacific. let's get to sophie kamaruddin. we are seeing the nerves of italy. trade tensions are back on the boiler. stocksite that, asian set to rebound. sometimes markets have woefully short attention spans. we have to hear confirmation possibly that trump may impose those tariffs on canada, the e.u. and mexico. the nikkei potentially flying back some of yesterday's losses to rise for the first day in three. we are seeing slight risk off moves in the canadian loonie and the mexican peso. let's check out the function on the terminal. fluid,cess remains considering trump has been talked out of adding tariffs at the last minute before. the rebound in italian debt is sustaining its momentum. check out the euroyen, it rose as much as 1.2%, hovering around the 1.27 handle. italian drama off the center stage for now, but it gives them a chance to focus on the fundamentals in the data. we have pretty good industrial production numbers. sophie: we hav