jodi schneider, our senior international editor. our guest host to the chief investment officer at st. james place wealth management. $200 billion worth of new tariffs. well signaled. are we preparing ourselves for the long haul of, i suppose, disagreements on trade? >> we absolutely are. there has been a lot of talk. now we are into the action point. the midterms are going to be important, but the longer-term implications are going to be important. if you are in the chinese position, you are interested in what happens in the midterms. if the democrats come out on top, they might get long-term talks. that may be why they pulled out of the stocks over the weekend. nejra: does it look like significant talks might not take place until after the midterms? >> i think that is quite possible. there was a lot of posturing at this stage. trump needs to appear to be strong and therefore does not want to see it what the chinese are pointing out. he wants to get back in. there may be a standup on the midterms. manus: for markets, we have this i

we are joined by jodi schneider in hong kong. responses, and laughter was one of them in the auditorium. why? startedesident trump his speech in a very america first kind of way, almost like he was speaking to a campaign rally, and the laughter came after he said that he had accomplished more than perhaps any other president ever, so the were amused by that. they did not think that was the right tone to address them. he went on with his list of grievances, basically starting with iran and being very tough on iran, and then moving on to china on trade. some tough talk there. tough talk on venezuela. , youally said that opec know, had harsh words for opec members. indicated that allies around the world were freeloaders that were living off of the u.s.'s aid and that he aims to change that. there was very little in the speech that was in critical except for, interestingly, so different from a year ago, the leader of north korea. he praised what he calls chairman kim, and said he looks forward to continuing to work with him. a year a

joining us now is our senior international editor jodi schneider. good to have you with us. ve any details on these proposals for talks? jodi: not really. ,here has been an invitation people have talked to us and told us the secretary steven mnuchin made the invitation to chinese officials and they accept the chinese officials say they will come, they will likely be in washington. this would be a fifth round of talks, there has been four rounds so far since spring training -- trying to lower the temperature on this emerging trade war. we have not seen much progress of late. last spring, there were serious talks that ended up in an president trump walked away from. we had some talks last month in washington but those were lower level talks, there was not any progress. there is a lot of optimism that may be such talks could lead to before another round of tariffs could take effect. president trump said days ago att he would be looking putting further tariffs on all the chinese imports to the u.s. and that he could do that pretty quickly if he sowed decided. this is in keeping w

jodi schneider, our senior international editor.t salvo from trump, doing in comic -- in china? bewe expected there could $200 billion in tariffs announced on friday. we thought it might be in phases. instead the were more threatening words saying tariffs could come on all chinese imports, whatever is left. they could come with very short notice, but no specifics, no details, no list of products. no indications of timing. hadhe heels of that, we this report come out that showed ,hat record trade surplus chinese record trade surplus with the u.s.. at the same time, the export growth is slowing. it has started to show affect on china. the economic threats are starting to show. we are not seeing a lot of across the u.s. yet. there could be political applications with the midterm elections coming. that has been a lot of pushback by companies, by retail leaders, in u.s. congress, on more tariffs, saying the pain has not yet come to the u.s., but it could. there could be political pain as well. thank you so much to our senior internationa

jodi schneider is there for us. latest trade numbers really do make for perhaps a very interesting reading especially in regard to the eu and china. it is not going to plan, is it? >> the numbers were pretty bad. they basically showed that the u.s. had the largest or the intest-growing trade deficit three years. records withthly both the eu and china. this is not what president trump and his administration wanted. to have been looking at reducing the trade deficit, that is part of the goal of the tariff. anna: we wait to see whether the trump administration opposes further tariffs on chinese imports. how is each side positioned there as we reach the end of the public comment. around the tariffs? see this as soon as another day or so. trump has said that 200 billion figure could be as much as that. we may not see that all take effect at once. the u.s. may be coming out with a list of items and they may be giving it some time to try to talk to china. but china has said it will retaliate. expectg the u.s. does we a pre

jodi schneider joins us now. jody, we need some help decoding the white house message, here? isn't it? we heard from president trump that he wants to start china plans for a second set of talks leader.th korea's the white house saying that president trump had received a very warm, positive letter from north korea's leader kim, saying that he wanted to have talks. so apparently, that planning has started even though the national security adviser, john bolton, just hours earlier, delivered a message.erent saying that he thought that talks were stalled and it was up to north korea to start making progress on denuclearization before they could go forward. we really have not seen any signs that north korea has started the process in a meaningful way. hear from the we national security adviser john bolton, in terms of the tone from his statement? jodi: they were pretty sober. it is up tog that north korea now to get the process going. that after the summit in singapore between president trump and north korea's leader, that the u.s. had said they needed to move ford but they were no

jodi schneider, thank you very much. tom mackenzie in beijing, our china correspondent. coming up, president trump's terrace in china may tax more americans and hit more than the chinese. more how the trade war could backfire against the u.s. next, more pain, no gain. the group falls into a bear market. we asked whether it's a time to buy right now or stay away. this is bloomberg. ♪ david: this is bloomberg markets. i'm david and gless in hong kong. it has been a big victim of the trade tensions with the u.s. and currency,ook at the it give or take about 7% against the u.s. dollar. provoking accusations of manipulation from president trump. beijing has responded and promised not to use the currency as a trade war weapon but veteran em investor market says there's a possibility and sees a further weakening if the dispute escalates. listen in. >> you are going to see the valuation. if you are in beijing and you one 25% tariff being put your goods going into america, the best defense would be to value by that amount. two are see as much as the dollar. it's not be on possibi

. >> we are joined by our senior editor, jodi schneider.de or trade tensions, trade threats yet? . >> it certainly would be. 200 billion dollars is much more than the $50 billion they have arctic up with, and it also moment in thisw whole debate, because president trump is threatening to go ahead with this, to come up with this latest move in terms of the terrorists even as members of his own administration are extending offers to china to have further trade talks. it is back in fourth, confusing the markets. confusing,y somewhat yet they haven't moved forward with the tariffs. there was a comment period, and companies and groups that represent consumers are convinced that this latest wave of tariffs would start affecting consumer goods. hewlett-packard are saying it could have an impact not only on their products, but on innovation. >> isn't a done deal? how does it happen? it all seems rather vague. >> we don't have a lot of details. we do know that the administration has been coming up with lists of products that it would move on, but it

latest on trade, we are joined by our senior international editor, jodi schneider. us on what has happened and what the actual prospect is of that extra tariffs on $200 billion worth chinese goods. >> president trump has told his aides to start preparing the agreement with the amount of tariffs and what they would hit in chinese goods. it could come as soon as today. has been taking longer than anticipated because of that public comment. there were public hearings and a lot of opposition from consumer groups as well as big companies that said, there is no way to hundred billion dollars of escape goods is going to hurting consumers now. it may not come today. it does look like it is coming soon. they may be phased in. we do not have a lot of details. at the same time the u.s. has gone ahead and made an overture to the chinese officials, saying they are invited to continue to have trade talks. as you just noted, the wall street journal is reporting china saying if there is more tariffs, there will be talks. -- will not be talks. there does not seem to be an opening at

joining us now is jodi schneider. good to have you with us. what his next following this hearing? will a confirmation vote on judge kavanaugh becoming sin? talk us through the process -- coming soon?-- be talk us through the process. >> there are enough republican votes to get that approved and then it would go to the senate floor. the question is whether or not mitch mcconnell will bring that to about. he said he could and he at one point guaranteed it. after that extraordinary testimony yesterday, that raises a lot of questions, there is some talk that they may not have enough votes. there are -- there is a majority of 51 to 49 republicans in the senate. they could only afford one defection if they have no democratic votes. there are three republican senators who we still do not know how they would vote. we really don't know their stance yet. that is jeff flake who is retiring and susan collins of maine. and lisa murkowski of alaska. there is talk about whether this would be a good time for this vote to take place given the extraordinary nature of this and the allegations that h

nejra: bloomberg's senior international editor jodi schneider joins us from hong kong. good to see you. president trump had a lot to say in his news conference. how did china respond? doesn't have implications for the trade war? saidesident trump president xi in china is no longer his friend after president trump made the comment about china meddling in the 2018 election. three days earlier there had been an advertising supplement in the largest newspaper in iowa basically criticizing the trade war's. iowa is the place where they grow soybeans. those have been affected by tariffs. on -- another point president made, he criticized the fed, led by the chairman he nominated, basically saying they keep raising interest rates and he does not like that. he also defended brett kavanaugh, the supreme court nominee who will testify tomorrow along with an accuser, a woman who accuses him of sexual misconduct three decades ago. he is standing by that, the democrats have been engaging in a con job to discredit judge kavanaugh. it was a wide whingeing -- wide ranging press conferenc

let's get to jodi schneider. dayas been an extraordinary , with testimony on both sides.ikely senators could walk out of that room with as much data as there is certainty. do we have any inkling as to how that vote might go? you have a very quiet testimony from dr. ford. she seemed calm and assured but she was terrified, which she said in her own words. brett kavanaugh was angry and defiant, saying he hide never done this and the republicans paint this as a fear campaign on the part of the democrats. a lot of questions, but the president said he liked brett kavanaugh's defiant kind of tone. it does look like a vote will go forward in the committee. then it will go to the senate floor. he willconnell said make sure it comes to before and it will be interesting with the vote could be. republicans have a slim majority there, 51-49. can only afford to lose one vote, only one defection if there are no democratic votes. we have a few republicans who are not sure, including jeff flake and mr. makowski. -- lisa murkowski. this will be a lifelong appointment to the highest court i

joining us now is our senior international editor jodi schneider. let's start with you.5% hike is to give the united states time to adjust. will this be for u.s. and chinese firms to adjust to these new tariffs? company --ons for a in costs go up and down all the time -- input costs go up and down all the time. an option is to pass this to the customer. what option increasingly discussed is trying to avoid china altogether and uprooting the supply chain. it will become an option for companies lower than the value chain. shifting supply chains will not be easy. i think there is a bit of an approach for china. if we negotiate a deal, we may hold off 25%. retaliate, an additional 267 billion dollars of tariffs on chinese imports. we have heard items have been spared from the terrace? -- tariffs? 300 items were on a preliminary target list in july have been taken off. a few industrial goods. bluetoothes and devices, and also some children's products, and bicycle helmets. more consumer-oriented, for the most part. some companies said around round of tariffs like this would st

let's get to jodi schneider with me now. as well as tom mackenzie in beijing. what have we got?od chance we will start to see the tariffs take affect today in the u.s. business day. it could be as much as $200 although weariffs are hearing they will not impose everything right away. criticism fromr businesses in the u.s.. that smallre saying and medium-sized businesses will not be able to react to make changes. the tariffs, so far, that we have seen, have not had enough of an effect in the u.s. not on the overall economy but business leaders are saying that would change with another $200 billion and they are warning against that. we heard from hewlett-packard and cisco saying it could stifle technology advancements, that it would not just be in terms of the economy. we're hearing from businesses that consumers could be heard. it would be hard to protect consumers. one of our team told me they are estimating the price of a new u.s. car could go up $5,000. how are the chinese, when you are behind the scenes, what are they factoring in? what is their bet on how these pressures are

the chief asian market strategist and jodi schneider join us.issive, a very subdued tone, wasn't it? he kept the same narrative going throughout. >> right, he started off with that campaign rally feel. when that didn't work, the rest of the 34-minute speech was subdued. very critical of iran, venezuela. this principled realism, america-first tone, that country should worry about themselves. rishaad: all the other countries as well. >> right. he has been against world bodies like united nations since he was a candidate, even when he is talking to that body. the one country that did not come in for criticism is north big targeth was the last year, the famous "rocket man" speech. this year, chairman kim, as he caused him, he lauded him from making progress. didn't mention russia much either, but took on european also thereiran, and was a fair bit of discussion about foreign aid and that the u.s. will not continue to write these checks. we will see in coming months perhaps an overall of foreign aid, at least administration processing that -- proposi

jodi schneider has more on this story. house received the statements to south korean officials? president trump tweeted he welcomed this and that they could do this together, though other people traveling in the y were stated that the reluctant to jump on board this point. made withcomments kim south korean envoy's present come up but it is unclear what he means by denuclearization. there has been so much back and forth that it is just the beginning of this process. there has been generally just much more reluctance to get excited about this so far. this is the first we've heard of an actual timeline, but there are a number of caveats. haidi: coming out of singapore, you speak to have hurts -- two experts on north korea, are they changing their view on this? >> not really. analysts are saying an awful lot needs to happen. what does denuclearize mean? they are not doing tests right now, and that is viewed as a good sign, but there has been a lot of back-and-forth between kim and president trump about whether they really are

jodi schneider, our senior international editor in hong kong.a a-shares being added to the index. we speak to the managing director later this hour. shery: our next guest as chinese stocks are set for a rebound. we talk market strategy in a moment. this is bloomberg. ♪ shery: this is "daybreak asia," i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. chinese stocks are going to rebound. japan is showing strong underlining earnings. the situation described as a close spring. joining us is the head of equity research for asia at union bank. great to have you with us. followingd the news in the footsteps of the msci and adding china you want them unedited shares -- denominated shares to its global index. i want to look at the weakness we have seen in the composite, one gauge of how far we have seen really the chinese markets fall. if you look at valuations compared to the snp -- ask and &p, do you think the confidence will be the injection and sentiment investors need? think this isl, i well expected and trumped by the news yesterd

jodi schneider. china says it can escape the trade war with only minor damage. the u.s. ready to slap tariffs on all chinese imports on short notice. pleasure to have you on the program. this,having a think about we know donald trump has been threatening china, but has he actually specified what he is waiting for? what exactly is he asking them to do? >> well, the first comment i would make is let's keep in mind that this dispute is not about tariffs on bicycles, digital cameras, refrigerators, or any of the other products that the united states employs the private tariffs. this is about chinese industrial products, specifically as it relates to technology and intellectual property. the united states is not the only country that is having these issues with china. the wto has been unable to cope with china's policies because of china's objectionable practices that are not covered. the first thing to be clear on is that although we are talking about tariffs this dispute is not about tariffs at its heart. >> do you need a sledgehammer to crack and not? -- crack a nut? >> [l