i am remy inocencio in new york. yvonne: i am yvonne man in hong kong.atching "daybreak asia ." let's get to first word news with jessica summers. jessica: north korea canceling -- threatening to cancel the plan summit with the u.s. the southe talks with have been canceled because of a drill. kim jong-un is a scheduled to meet president trump on june 12. washington says preparations are going ahead despite the latest twist. >> we are operating under the idea and the notion that the president's meeting is going forward with chairman kim next month. jessica: china's holdings of treasuring -- treasuries rose to almost 1.2 trillion. underscoring the lower of u.s. government debt, despite trade tensions. china remains the largest creditor to the u.s., followed by japan. it is at the lowest since october 2011. u.k. prime minister theresa may will publish a detailed plan for the e.u., forcing her warring cabinet to agree on an approach. it should give the clearest vision of what the u.k. wants post-brexit. they are deeply spit -- deeply split over europe. as ex

remy: i'm remy inocencio in new york. you are watching "daybreak: australia."s the trump administration ramps the trade tensions once more, investor -- investors are trying to work out tariffs are some of their major allies. our next guest used his bloomberg opinion column to war n that train related uncertainty -- trade related uncertainty should have two major effects, an increase in volatility and enhanced attractiveness of low risk investments. komal sri-kumar is the founder of sri-kumar global strategies. i had not even read that before. what i have written in my notes was goodbye yield. talk to me about this. guest: i think that is very well put. what is happening here is we have the volatility measured by the big indexes coming down from earlier in the year. that is slowly starting to reverse. it started to reverse initially because of uncertainty at the beginning of this week. i think that trade tension will take over even as the market stabilizes for a while. it will be trade related tensions that will increase it. keep in mind that we are not fighting

. ♪ ramy: i am remy inocencio in new york. haidi: you are watching "daybreak australia".estments in a still you with approvals falling 18%, that is 8.5 billion aussie dollars in the last fiscal year. expect more from bloomberg us earlier reported jason scott joining us. falling -- whyn have they been falling? >> these capital controls imposed by the chinese government -- these controls had a big impact on outflows of chinese capital, especially last year. billion in 2016, and in the last year, that some planned investment falling 18% in the last fiscal year two $29 billion u.s., and the real estate sector was particularly affected by this with foreign investment relators approvals to chinese investment in that having told billion dollars. that sector was affected by fees and taxes imposed by the australian government on foreign buyers. to eases started capital control, so be interesting to see if there will be a knock on effect going. to the other part of the equation, and diplomatic tensions and the risk you have between beijing recently. whether or not there is a link b

remy inocencio has the details on walmart. >> when we look at the now as well as the future, everyoneng at e-commerce. the number was 33%. it sounds good, but putting it the fiscal year is 40% for guidance. i want to hop into the bloomberg and show you what this looks like an bar chart form. side, that isand 33%. you can see it is at one of its lowest in the past year, year-and-a-half. we have seen that kleiman the year prior because of what was happening with the scoop up of jet.com. thwell as other brand names, e bonobos brand, a favorite of millennials. there was a concern that was petering out. have as investors might reason to hang on a little longer as that e-commerce growth continues to rise, as investors are looking at this. let me walk you through the top and bottom numbers. when the numbers first came out, the stock rose because investors were saying, this looks pretty good. you can see revenue and earnings per share beat by a few pennies. other information started to drop. same-store sales missed 1.2%. the estimate was for 1.3%. nature took its toll, because it was colder.

remy inocencio spoke exclusively with the ceo about reform trade, and the company's stellar growth. wait we a and see approach. we hope the trading issue can be resolved by negotiation. china and u.s. want to work together to resolve the issue. strategy is part of the medication towards that. -- of the mitigation towards that. remy: there is a lot of innovation in this sector. what excites you the most? >> there are a lot of tailwinds in china. the most significant is allowing cmo's called mah. if you have a product in china, you build your own facilities, you cannot ask someone else to make it for you. starting this year, they will officially allow companies like to manufactured drugs for chinese companies. that are so many biologics being developed in china. we certainly believe we will benefit from a huge deal with this reform. mainland, hong kong is changing their way of listing for an ipo. what is the opportunity for wuxi ? >> it is exciting. a lot of the pre-revenue companies are already my clients, my partners. i enabled them to develop their portfolio. they are looking at mo

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 with wti crude it is interesting. we were expecting a draw up of it waslion barrels, but a surprise drawdown of 2 million barrels. also what is happening in iran. don

ramy: and iranian is an seo in inocencio- i'm remy in new york. word news with paul allen. >> does remain over whether strengths can be consigned -- strengths can be maintained. manufacturing and agriculture is driving changes. this is one of the fastest diving economies but it is threatened by a slump of faster inflation. u.s. prosecutors say goldman sachs vice president gambled his career on a series of trades using inside information about the bank's clients. a south korean national was arrested in san francisco on thursday, accused of using private information about deals involving one dozen customers. he allegedly made thousands of dollars in illegal profits. facebook is under fire again. this time from shareholders. they saw criticism of the handling of user data, one shareholder comparing it to a violation of human rights. the scandal could hit facebook in their wallet. mark zuckerberg has been grilled on both sides of the atlantic, but has declined to be questioned by the lawmakers in london. the bloomberg track of the world's wealthiest p