shery: i'm shery ahn in new york. sophie: i am sophie kamaruddin in hong kong. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering in the next hour. wall street ends its best winning streak in two months as investors weigh fed policy in the trade war. the s&p 500 had risen 5% in the past week. president trump claims total control of the tariffs. he says he is personally having to deal with china and struck a secret accord with mexico. a backup plan for apple. foxconn says it has iphone capacity outside china if the trade war forces a new strategy. shery: let's get you started with a quick check of the markets close on tuesday session in the u.s. stocks fluctuated between gains and losses to end the day in the red. we saw the s&p 500 being pulled down by industrial bonds, which were some big gainers. consumer stocks lifting the index, but not enough to put it in the green. now holding the longest winning streak since april. the nasdaq also and the dow really unchanged at t

shery: i am shery ahn. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering, china blames the u.s. for the trade war and says it has not made america great again. morgan stanley sees a recession in a year as the dispute deteriorates. a big day of data for down under with the rba's latest house prices that could tip the balance on how they cut interest rates. shery: let's see how we are setting up for the asian open with u.s. futures kicking off trading. china blaming the u.s. for the collapse of trade negotiations, we see futures under pressure down .5%. china also said it is investigating fedex and considering blacklisting some firms they say damage the interest of domestic companies. take a look at how u.s. markets closed on friday. it was the worst month of the year for the s&p 500. carmakers down about 4% on tariffs news, the president also threatening tariffs against mexico. we saw the dow falling for a sixth consecutive week, the longest since 2011. yield,

shery: i am shery on in -- i am shery ahn in new york. paul: kerala top stories we are covering. the u.s. mexico talks, washington says discussions continue on immigration. president trump keeps up the pressure on china, saying he will decide on any additional duties after meeting xi jinping. global central banks are watching the issues closely and will react as necessary. john williams admits risks are rising. shery: let's get you started with a quick check of the markets here in the u.s. stocks fluctuating throughout the session, but they managed to end higher after a report that the u.s. was considering delaying tariffs on mexico. we saw the s&p 500 gain the best three-day rally since january. goldman sachs puts the probability of those tariffs on mexico at 70%. not to mention vice president thoseence has said tariffs are still planned to go ahead monday. u.s. futures down. paul: looks like a reasonably positive day to end the week. new zealand has been trading for just over a minute. futures here in sydney trading higher. different story as you had further west. nikkei future

shery: i'm shery ahn. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. big tech leads wall street lower amid antitrust speculation. the nasdaq down 10%. the fed president james bullard sees a rate cut soon. u.s. manufacturing sinks to the lowest under president trump. and the president hinting at a big trade deal as the country throws off the shackles of the european union. shery: let's get you started on a quick check of how the markets closed in the u.s. major indexes managed to finish on session lows but not a great day for the beginning of june after capping the worst month of the year. the s&p 500 fell 3/10 of 1%. we saw the biggest selloffs in facebook, amazon, apple and the tech giants over concerns of those antitrust investigations coming their way. we had some not so stellar economic data while the u.s. manufacturing pmi seeing the toughest month and 10 years. we have the dollar taking a hit. yields taking a hit on jim bullard's comments of a rate

shery: this is bloomberg. ♪ paul: this is daybreak asia. i am paul allen. shery: i'm shery ahn.ew york stocks the the most in onee weeks after jay powell about downside risks to the economy and president trump officials signaled that a trade breakthrough at the g20 is unlikely. investors are being too negative according to our next guest. we have craig hodges with us. let's get started. this illustrated what the markets have been doing. especially when it comes to the small caps. these seem to be pricing in that something is not quite right in the economy. how correct are they? craig: they were already somewhat depressed. there is obviously the action when you see the small caps being down 12% from their highs. you're seeing the s&p 500 at its highs. something is amiss. i think we are in the midst of a slowdown. earnings from our site have been pretty good. a little better than expectations. you can tell the tone of management teams out there is to hedge a little bit and underpromise and overdeliver. maybe just use the tariff situation to bring down investor expectations. that i

shery: thank you.uick reminder, you can catch all of our interviews on the bloomberg with the function tv . from new york and toronto, this is bloomberg. ♪ mark: i am mark crumpton with "first word" news. russian president vladimir putin is once again denying that his country meddled in the 2016 u.s. presidential election. he made the remarks at a meeting with international news agency chiefs in st. petersburg. present putin and other russian officials have denied interference in the u.s. vote, even the special counsel robert mueller uncovered evidence of a kremlin operation to interfere with the vote. president trump says his administration will decide on a possible additional $325 billion in tariffs on chinese imports. the administration should have a decision in the next two weeks. the federal communications commission has called on phone companies to quash robo calls. the agency voted 5-0 to approve the measure. the commission says there were almost 5 billion robo calls in the u.s. last month,

shery: i am shery ahn. get more on the unprecedented meeting between president trump and kim jong-un. joining us is former u.s. ambassador to south korea kathleen stevens. always great talking to you. so much happened, a bit of a surprise this summit even took place. let me ask, what was your biggest take away? kathleen: a couple of things. a big takeaway is another trumpian, trump-kim reality show, photo op certainly on a huge scale with pageantry, less substance. there was a couple of important takeaways. since after hanoi things fell apart, because of the top-down diplomacy which i have been a critic of, because of that the two leaders had to get together and put it back together. one takeaway is the door is now a jar. -- now ajar. one can't be too optimistic. moving forward in a more comprehensive and logical way. my other big takeaway which i don't think frankly here in washington and united states people see so much but having lived in korea for a long time, this image of an american president going t

shery: i am shery ahn.eek ahead on wall street will likely see investors focus on the fed, latest round of earnings and oil. there is a view that wti oil prices will fall to $40 and rebound to $60. su keenan, really the focus on the fed and whether they will turn more dovish. goldman sachs says the market may not get what it expects, that the fed could be away from moving bias. thenumbers of the top of hour reduce the need for a cut. notice the red on the screen. semi-conductors remain the most exposed group in tech and in , trade to the u.s. trade dispute and continue to take a hit. let's look at the earnings stories ahead, oracle, a lot of software companies with numbers. carmax, beaten up used car company, interesting to see this. look at the others, kroger, what they have to say about amazon.com. big move into groceries and in focus asl be they try to make the merger work. others lining up. the bloomberg. oil is sliding. this despite mideast tensions it is going lower for a third week down. the right ha

shery: i am shery ahn in new york. i'm paul allen in sydney. you are watching daybreak australia. japanese prime ministers shinzo abe has said his real economic objective has been achieved, even though 2% inflation target remains out of reach. istephen engle. stephen: thanks. of theet a pulse check japanese economy. neil slater is with us. thank you for joining us. we just heard in the intro, shinzo abe saying the japanese economy is doing really well. we also had comments from our colleague who had an exclusive interview with avro peak to kuroda yesterday, saying he has more firepower if needed including going further on the negative interest rates. how do you assess the japanese economy right now? the first quarter was fairly strong, but there are some weak signals, especially exports. neil: i agree. from our perspective, the japanese economy has been very stable. we have seen very good growth over the last 24 months. in the first quarter, the growth was a lot stronger than most people anticipated. however, we are se

shery: i am shery ahn in new york.hina has unveiled a stimulus plan to boost demand for electronics as it looks to curb the economic fallout from a trade war. anypolicies don't include central government spending but encourage local authorities to offer support to business. beijing is constrained in how much you can offer after announcing tax cuts earlier this year. that may be why the stimulus is less -- let's discuss all this with the database but president who joins president,-beige book who joins me. it is telling these local governments to do more if they can. first of all, can they do more? they have their own issues with debt levels being so high. what does this do? >> i know that investors like to react to a headline that says the stimulus coming, but what we have been seeing in our the essence the beginning of the year is remarkable levels of any of that are being pumped to typically disadvantaged firms. you see it everywhere. i think the point here is that china is preparing for worst-case scenario. if the ta

shery: i'm shery ahn in new york. you're watching "daybreak: australia."s get a check of the business flash headlines. the deal cap some multiyear overhaul of the canadian playmaker which will now be focused on business jets and passenger trains. it will boost mitsubishi's efforts to roll out its own regional aircraft line, now call the space jet. paul: workers continue to block access to some of chile's biggest copper mines, extending their strike to 12 days over a labor dispute involving the minds run by the world's largest producer. industry 10,000 tons of production. labor union say there currently no plans for talks. shery: an ipo could raise a billion dollars u.s.. we are told the company is involved in a plan share so that could take place in hong kong were new york. it has more than 3500 stores around the world. fedex beat analyst estimates on earnings per share for the fourscore -- for the fourth quarter but it's the guidance that is bringing the stock down and after hours. blaming global trade weakness. details, ther the trade disappointed with u

shery: i'm shery ahn in new york. you're watching "daybreak: australia."uss the implications is the director of the program on energy security at the council on foreign relations. great to have you with us. we have the downing of the u.s. drone and the apparent attacks on those oil tankers recently. how smart has the u.s. response been so far? job,e u.s. has done a good they targeted the actual infrastructure the revolutionary guard was using to pick those targets. they were very specific targets that had significant meaning in the oil world. i think that was a good selection and i think the sanctions against the ruling elite in iran are more symbolic. they probably don't hide their money in european banks the way some other countries leaders do. in the end, i think the administration has showed some restraint and the iranian goal which was to use the attacks to drum up support from china or japan or companies that are dependent on oil flows from the middle east, their actions have helped the trump administration ahead of the g20 meeting come in with some

shery: i'm shery ahn in new york. sophie: and i'm sophie kamaruddin. welcome to "bloomberg daybreak: asia." paul: our top stories this friday -- trade tensions and geopolitics dominate the g20 in osaka. leaders meet with long-standing relationships shaken up by president trump. in the latest fed stress test, all passed, deutsche the only surprise. new problems for boeing. a new fault is found on the 737 max 8. an issue said to be on other claims of the fleet. shery: today's big story, between's meeting president trump and xi jinping will happen without preconditions. yvonne man is in osaka. it seems everything is on the negotiating table, but everyone we speak to don't have high hopes of a breakthrough. yvonne: some are saying this is of what was said, a ande truce between japan china. a lot of doubts that perhaps things could be status quo. the wall street journal yesterday reporting china is demanding that the u.s. lift its export ban on huawei to reach an agreement. that could be hanging over these negotiations saturday as well. before the big meet

shery: shery: european and chinese pmi's, the u.s. recently, of course.he gtv chart showing china's monetary policy tools. we are talking with the rrr cuts in the top panel. they move down. the london rate, not so much. had anc governor interview in which he said china had tremendous room to adjust monetary policy. which way would they do that? lakshman: to the downside. which the command -- mechanism? any of these levers can be pulled and will be if the cycle does not turn. particular, overall economy, slowing. not falling out of bed, but continuing to slow. the industrial sector, tied into the global industrial cycle is still decelerating. that is putting pressure on a significant importance sector of the economy. that may warrant a new letter to be pulled. shery: let's see what happens at the g20. great having you with us. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg's a priors go to dab go on your desk db go on your terminal. -- db go on your terminal. this is bloomberg. ♪ shery:

shery: and i'm shery ahn in new york.rtner c.e.o. is warning that treasuries -- as global bond rally pushes them to a low. their lowest level since november 2017. miner told us the data gives cause for concern. paul: marriott boss has told bloomberg he relatively relaxed about the impact of the trade war on the hotel industry. he admitted he's more apprehensive than in the past but said mat -- marriott's operations in china depend more on business conditions than politics. > we do know that of the 350 or 360 open hotels we have in china. 100% are owned by chinese real estate partners. we manage that business for chinese real estate investors so our economics are not simple american economics. yes, we're an american economy and earn management fees but the bulk of the profits go to chinese investors. shery: itunes will be split into three new apps. apple is also introducing new operating systems across its devices. showed a new desk tom computer and new features. it's letting developers rework ipad apps to work on mac comp

shery: i am shery ahn in new york.izers of this week's mast protest in hong kong are calling for renewed demonstrations on sunday. student movements, labor unions, and business groups have urged the government to withdraw the extradition bill. stephen engle is in central hong kong now. set the scene for us. what is happening? obviously, as you can see behind me, the protest has shrunken down to a few select people early this morning on a friday morning ahead of the weekend. they are calling for a large rally on sunday. there is an assembly here on monday, so it is a bit of a calm right now. three protesters, if you want to call them that come are singing christian songs right now to the remaining police officers behind me. there are eight or nine police officers back there, and just four singers with protest songs. all the roads around admiralty are open. the city is open for business. yesterday, some of the luxury shopping malls over here were closed all day. that likely could be open again today, but all bets are off

shery: i am shery ahn. kamaruddinm sophie in kuala lumpur. welcome to daybreak asia. ♪ paul: top stories, new sanctions on iran after the downing of the navy drone. president trump insists he is not looking to go to war. he also says he never threatened to fire jerome powell after being unhappy with policy. the drum beats louder for rate cuts. and people working closely together to protect interests in the escalating trade war, we are live in bangkok. you a check oft the markets at the close. it was a turbulent day with not only iran-u.s. tensions but futures and options expiring together on quadruple witching day. there was a record intraday high only to close lower by .1%, industrials and real estate stocks leading the declines. we have one sector gaining ground, the energy sector. the biggest winner of the session. wti rally 10% last week on heightening middle east tensions. u.s. futures up .2%. let's see how we are setting up. sophie: with the event risks sex g20, we could see asian -- asian stocks set for a softer open. look at kiwi shar

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ shery: the spotlight shining here in osaka today for the g20 swinging into action, trade tensions and u.s. with iran likely to loom over the proceedings. we will join you again in the moment by the other big stories, the dow, wall street holding four days of declines on hopes of a trade breakthrough. s&p 500 for the best month since january. with8 candidates past dachshund only real surprise, dr's jumping after -- but ive going his own way, apple will be one of his own clients. look at how markets closed. stocks were higher with the s&p 500 reversing four sessions of losses. getting track for the best -- banks and real estate leading those gains, the dow down by boeing after the the faa revealed new risks related to the 737 max 8 not to mention energy shares weighing on the s&p 500 and wti falling. u.s. futures gaining .2% as we go to the g20 in osaka. patient futures pointing to a mixed start with g20 kicking off today. it is like a

shery: good evening, i am shery on.elcome to daybreak asia. >> our top stories this tuesday, the trump administration is seeking allies to the fund iran. mike pompeo is in the middle east. any conflict would hurt supplies. the cost of insuring gulf oil shipments is sorry. singer puzzles -- >> senior officials are discussing an arrangement for a presidential get-together at the g20. we are watching very closely what could happen coming out of that summit. let's get to the market action with sophie. sophie: after u.s. talks slipped in a lackluster session, cash trade is kicking off in tokyo, seoul and sydney. kiwi shares are set to snap up to the events. banks inore central focus. this is edging slightly higher this morning. over all we look to be in a holding pattern ahead of the g20. assets thisk across morning, taking a look at gold, about -- its client above. keeping an eye on treasuries after the 10 year dropped closer to 2%. at it holding steady so far the start of the asian session. the u.s. dollar is trading near

shery: i am shery ahn.investors grappling with everything from fed policy to trade tensions. where should they hold their focus? to break it all down, joining us now is markus schomer. it is great to have you with us. let's start with what is next. the fed's meeting next weekend we have seen the inflation numbers, really not looking too strong. even the recent numbers, how challenging will it be for mr. powell to try to explain this to transitory factors? markus: i think the fed is facing right now i communication challenge to switch from their tightening bias over two and easing bias. -- over to an easing bias. the fed is not very quick at making the changes. if you look at past inflection points, it takes a little while to communicate that internally, change some of the forecasts, and start communicating it to the markets and acting on it. it takes a number of meetings to get there. the market is way ahead of itself right now. i just checked the bloomberg numbers again this morning for pricing in 80% chan

this is bloomberg. ♪ shery: this is "bloomberg daybreak: asia." i'm shery ahn in new york.aul: i am paul allen in sydney. he spoke to bloomberg in chicago. >> we are going to be very vigilant about understanding these heightened trade tensions, see if they feed through to the economy. most importantly, see if they persist. i think it is too soon to make a judgment as to whether we might or may not take action. i will let events unfold more . paul: joining us is bloomberg international economics and policy correspondent mike mckee, who is in chicago. what else did you learn from that interview? there is a lot of concern about what would happen to the u.s. economy, particularly to robert kaplan's dallas fed area should tariffs go into effect. the main concern is not so much what americans would have to -- would have to pay, but the back and forth supply chains. that would cause immense pain to american and mexican businesses. there is a lot of fear what could happen if the tariffs go into effect, but there is no certainty that will happen. shery: especially at the time presid

shery: i'm shery ahn in new york. the latest round of earnings and oil.il prices are more likely to fall to $40 then to redound to $60. su keenan enjoys as now. -- joins us now. su: going a bit negative. we had them close lower on the backs of those those sales number. let's go to the snapshot. we have heard from goldman sachs , which believes that the fed will not be moving towards changing its statement just yet. take a look at the snapshot. to be undernue pressure because of the u.s. china trade conflict. earnings continue to be projected as low, going forward. we had getting to the tail end of the earnings parade. the big software companies and a lot of other software company will be coming out with numbers. very interested to see how they will be doing. take a look at some of the other numbers in focus. amazon coming into the grocery space will be of interest. t-mobile is shedding a lot of assets to be in better position for approval. there are lots of companies jockeying for those assets. down for a third week. into the 52 to $53 range. there is a v

this is bloomberg. ♪ shery: this is "daybreak asia." i'm shery ahn in new york.aul: the outlook for china's manufacturing sector continue to deteriorate in june. manufacturing pmi data released on sunday stayed at 49.4, a little worse than what was foreseen in a bloomberg survey. let's discuss the implications of this with amy xie patrick. thank you very much for joining us. we saw the pmi weakening's. it is really not just the impact of the trade war on china, is it? is there a domestic story also going on? amy: yes, definitely. earlier in the year you saw some recovery and activity due to the stimulus they injected at the end of last year. that degree of stimulus is highly limited about their concerns over financial stability. so they continue to pump more credit into the economy, increasing the debt and financial fragility for the future. that limits the extent to which how much they can inject more stimulus into the economy. to me, the pmi print you saw over the weekend for china shows that is definitely here. just a matter of how deep the double-dip goes. pa

shery: i am shery ahn. sophie: i am sophie kamaruddin in kuala lumpur. let's -- we are counting down to asia's major market open. ,aul: here are the top stories new sanctions on iran after the downing of the navy drone. president trump insists he is not looking to go to war. he said he never threatened to fire jerome powell despite being unhappy with policy. the drumbeats loader for rate cuts. southeast asian leaders walking a fine line in the simmering trade war. we will bring you more from the meeting in bangkok and more with the prime minister of malaysia. looking at how markets closed, it was a turbulent session not only because we saw the iran-u.s. tensions escalate but because futures and options expired on the same day on quadruple witching day. so at one point it was an intraday record high but then we thought ending .1 down lower. led by real estate firms. the dow falling .1% as well after touching a high we have not seen since october. we had energy stocks gaining ground, the biggest on the s&p 50

shery: i am shery ahn in new york.r of japan's most popular messaging platform has been investing heavily in financial services in the face of the stagnating user base. it expects its simtech business to break even in one year to two years. the co-ceo spoke exclusively to bloomberg in tokyo about when they should become operational. to acquireto prepare the license and -- but i think it takes -- it does not take so much time. so we are expecting maybe the next year we can launch the service. >> 2020? how important is it to break the dominance of your main revenue stream, and that is advertising? it open in our company has to year. half the year. you're out of period of investment for the next three years to four years? potentially into 2023, you are not looking at profitability? shin: it depends on how fast we security users. if we -- in this domain, as we expect it, we can become profitable in one year or two years to reach the breakeven point. it depends on how fast we can secure the users. shin: and japan is going t

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to make this -- to asia'major market open. -- asia's major market open. ♪ here are the top stories in the next hour. president trump hails a migrant deal with what -- with mexico and there is confusion over what may have been agreed. the g20 ministers water down their statement on the trade war, talking about pressing needs to resolve it is good intentions and australia plots a course through the trade waters to strike a balance between its latest -- largest partner and investor. we are seeing u.s. futures rally 7/10 of 1%, this after coming as the u.s. and mexico agreed on a trade deal and president trump postponed the tariffs. it came late friday and wasn't reflected in the u.s. markets' clothes. the friday session was good for stock market in the u.s. with indices gaining at least 1% and we had weaker jobs data on friday which starts speculation we might see the federal reserve cutting rates previous of the s&p 500 rally 1% and the nasdaq with the best four-day

shery: and i am shery and in new york. lowest level this year on monday after chinese markets returned from a break and pboc governor -- the pboc governor signaled no change in the rate. let's talk about it with senior asian fx strategist at mizuho bank, ken cheung. is there an eventual breach of the seven handle? >> i think he is trying to encourage more movement. stabilizing the balance of the economy, so i think if he expects the trade war will be more prolonged, more fory will hear the economy and the monetary policy. if they insist they want to keep a one year or two your horizon, it will be quite difficult for them -- two-year horizon, it will be quite difficult for them. [indiscernible] taylor such level. >> what about the speculation that china might use the yuan's depreciation of the tool in their trade? is that a possibility you are considering? >> i think at this stage, they would try to intend to let it depreciate quite a lot. some powerful measure. i think we need to bear in mind the yuan is still an emerging

shery: welcome to "daybreak: asia." paul: our top story this monday, china blames the rest the trade war and says it definitely has not made america great again. morgan stanley sees a recession within a year if the dispute deteriorates. the latest house price data could shift the data. let's get started with a check on the markets. we are seeing u.s. futures taking a hit. we have seen china blaming the u.s. for the breakdown of trade negotiations. they threatened to blacklist foreign currency and are investigating fedex. some of those let decline. we have seen president trump threatening tariffs on mexico starting june 10. that did not help investment sentiment. the dow was down 1.4%. the longest losing streak since 2011. we saw a really broad selloff on the markets last week, marking the worst month of the year. it really came through. if everybodyee comes back. take a look at asian markets. nikkei futures pointed lower after that close on the u.s. on friday. it is a day where people receive house prices for the month

shery: i am shery ahn. sophie: and i am sophie kamaruddin in hong kong."daybreak: asia." paul: our top stories this thursday, hong kong lawmakers convening in the coming hours to discuss the extradition bill. carrie lam says she is ready to take -- make tough decisions. expectations are mounting that mayyuan may be each -- reach seven dollars. look at thee will rising global campaign for lower rates. expectations of more dovish control banks have held a rally of the market. let's get straight to the market action with sophie. sophie: we are seeing weakness in tokyo with the nikkei 225 set for a second day of losses while the yen is holding steady. among the laggards is tokyo electric. seoul,g on the mood in .1%.ospi up -- samsung shares -- the aussie is trading study ahead of jobs data and kiwi stocks are looking for a change to the downside this morning. paul: let's check in on the first word news with ed ludlow. atthe u.s. deficit looming -- more than $200 million bigger than a year earlier despite the revenue boost. the congressional budget expect the

shery ahn: and i'm shery ahn in new york.ocus has been on disruptive forces shaping the future of software maker. the ceo and founder spoke to heidi in the first interview since the nasdaq ipo in december of 2015. >> i still feel the same way about australia. and the positive role that new energy technologies can have an .our economy -- in our economy we don't realize how much energy we could be exporting. i think it will be up to corporations and individuals to do that. i think it will continue to power along. reporter: when it comes to the theme of the morgan stanley summit this year, they are talking about disruption and the next driver for australian growth. the trade reliant models. you have been pretty critical of the government not providing a policy platform to encourage innovation. is that still the status quo? >> on the innovation side of things. there are certain things the government could be doing to help. look at the last three or four years on r&d. it is critical to the start of industry. dustry.tup in industry

shery: i'm shery ahn in new york. you are watching "daybreak australia."oare seeing fiat is set withdraw its proposal. there has been no decision on a deal according to sources. this meeting had been postponed several times because we had seen nissan, one of the partners of renault, pushback on this merger on concerns over their authority, and now we are hearing that fiat is set to withdraw its proposal and the renault board has postponed the decision to a later date. we have seen a lot of resistance coming from nissan, despite the fact that france had backed the merger between renault and fiat and even the finance minister saying that they offer stands if inre are guarantees on jobs local had quotas and so forth, but it seems the decision has been postponed to a later date. fiat chrysler at the moment in u.s. trading falling 3% in extended trade as we hear that fiat is set to withdraw its proposal from renault and we know the board meeting is over and that there's no decision. the thought that mexican tariffs as be avoided has vanished we hear that there

shery: i'm shery ahn in new york.de war will be the main focus of the g20 when the summit kicks off in japan, with the host country in its own trade talks with the u.s. administration. let's talk to a former japanese and that -- former u.s. ambassador -- what would a successful g20 look like for prime minister abe as he hosts this summit? mr. fujisaka: i think the most important thing is the security. we will have more than 30 leaders of the world in osaka for the first time. we have not had such a big meeting ever. g20 for the8, but first time. it is not the capital as well. itself, i thiting but people'sd g20, attention is more like b20, a bilateral of 20 countries. u.s.-russia, japan-china, all of these meetings. trump's is getting more attention out of those. we look forward to seeing some progress. trend xi jinping -- the prime minister and xi jinping will be meeting today. shery: it seems president trump's strategy on asia has been focused on this china strategy. how does japan fit into the picture? mr. fujisaka

shery: i'm shery ahn.onto raptors and golden state warriors are set for game three of the nba finals in oakland tomorrow, with the series tied 1-1. it is not just sports fans benefiting from the series. the nba is join a boost from the first cross-border championship, setting records for the most-watched nba game in canada's history. we are joined by the deputy commissioner of the nba, mark tatum. as i mentioned, huge viewership in canada, up 30%. before we came on the air, we were talking about your expansion in china as well and what has -- as well. what has the expansion done for your league? >> incredible. today, 25% of the players in the league were born outside of the u.s. canada is the number one country outside of the u.s. producing nba players. a record number 13 canadian nba thislaying in the season, and we are seeing our business grow internationally as a result. shery: exciting times. fromave seen engagement president obama as well, who was at game 2 of the finals. we can see him there on the s

shery: i am shery ahn in new york.he march towards global rates is alive and well as the european central bank says it's ready to take steps to boost the euro zone economy and the federal reserve is expected to send a dovish message when it's meeting wraps up wednesday. our global economics and policy editor kathleen hays is here with mario draghi's market moving comments earlier, and president trump's renewed attacks on jay powell. bloomberg breaking this story. really, the president is taking some exploratory action in getting rid of powell. kathleen: hats off to our fed , especiallyington chris, who is lead reporter on the story. and what sources told him in a white house. teamdonald trump, the working for him actually spoke to lawyers about, could they legally demote, get rid of jay powell. larry kudlow, the chief economic advisor to the president would not confirm whether or not this was said. he just called it old news. nevertheless, when reporters asked president trump about this jay in the afternoon about powel

shery: what is next? what will break the impact?e keep hearing from the protest leader that they will stay until the proposed bill is withdrawn, so what is the schedule looking like now? stephen: well, they will keep the pressure on, that's for sure. if they will be able to physically stay, that depends on how forceful police will be. definitely the pressure will stay on, and in fact, the chief executive of hong kong was on television again, a bit well, on a local broadcaster when she said again they are steadfast in their of the bill, and she said, in fact, i have never felt guilty because of this. that's when she was asked if she felt she might have betrayed the people of hong kong. she said she does not feel she has betrayed hong kong, but again, it is a very emotional situation in hong kong. keep in mind, for the people of hong kong and protesters in particular, this is different from the 2014 occupy movement. they were protesting something the hong kong people never had, and that is universal suffrage. this is very different. t

shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong.o "daybreak asia." paul: our top stories this friday, two tankers, under apparent attack in oman. washington points the finger at iran. broadcom is a loser in the trade war.

shery: live from bloomberg world headquarters in new york, i'm shery ahn. >> live in toronto, i'm jonr bloombergby and bnn bloomberg audiences. apple's developer conference begins today along with the update to the software that runs iphones, ipads, and mac. will the company announced the death of itunes? president trump is in the u k for a state visit today, making his way to buckingham palace, where he met queen elizabeth ii and other members of the royal family. we will have the latest. first, trade, the technology, now talent. the trump administration has started to take aim at china's best and brightest in the u.s. for now, a quick check it on the markets. u.s. stocks under pressure. the s&p 500 at the lowest level since february. tech giants taking a hit over concerns of antitrust investigations, not to mention investors -- investors estimating the impact of the with chinawar, saying they are considering blacklist in some foreign firms. we are seeing the nasdaq fall 1.6% at the moment. it really doesn't help when you don't have such great economic numbers out of the u.s. today.

in new york on wednesday. ♪ shery: i am shery ahn in new york.m paul allen in sydney and you are watching "daybreak australia." let's get a check of the business headlines. they are re-organizing its operations in asia to put more focus on china as a prepares to start making cars in shanghai. they are dismantling its asia-pacific maintenance to make in the mainland, as well as hong kong and taiwan. elon musk is hoping china will boost sales and confidence after they lost a third of value in their shares. they are reducing their stake in a hike on information leak. they will use the proceeds to buy back $1.4 billion of shares. would put a proposal to dominate the chairman to a keyboard vote. where shares have tumbled after it posted its third annual loss in a decade. paul: talk of a big shakeup at deutsche bank. is planning sweeping changes to top management, including potentially replacing the cfo and the investment banking head. the bank is expected to decide on the future of several executives within weeks. they are working on a turnaround plan

shery: i'm shery ahn in new york.unveiled plans for a new cryptocurrency called libra that a lot next year and will be known as a stable coin. a digital coin established by government-backed securities. joe weisenthal spoke with facebook's head a lever to discuss the new cryptocurrency. >> the reserve is an important component of the stability of this new digital currency. we welcome open conversations with regulators to figure out how to drive accountability and transparency for the labor association, notably on the reserve. joining us [no audio] global terror to pare electronic cash transactions, which bitcoin was for, but bitcoin has become more digital gold. this is for actual transactions. looks like they have the backing of facebook behind it. amanda: it will be interesting to see what regulators make of this. one of the concerns raised earlier is around data privacy, the security of users. will not be a stumbling block at all for facebook? mike: they have six months. very early days for this potential currency.

shery: i'm in new york.uring clashed with the official gauge which showed contractions. it was inconsistent with the weakness evident in other asian economies and global factories -- global factory numbers shrinking. with discuss the outlook an economist. great to have you with us. ofot of mixed signals out the chinese economy. what is your assessment? >> the growth is likely to be the main thing in the second half of the year. it will raise from excellent demand. the contribution from the exports to growth is likely to turn positive. stimulus should be sufficient to keep growth at the target range of 6.5% this year. to see signstinue of more analysts and policymakers thinking perhaps the chinese yuan, the threshold might not hold for long. dismissed the importance of that. what happens if push comes to shove and we see the economy we can substantially more? are they going to let the threshold go to boost the economy echoes -- the economy? >> the policymakers [indiscernible] because the cost is likely to be

this is bloomberg. ♪ shery: this is a bloomberg markets, i'm shery ahn in new york.on: and i'm jon erlichman, in toronto. president trump said that if mexico doesn't come to terms with the flow of mexicans, terrorists would be leveled. canada has taken a step back. the foreign affairs minister calling the new tariffs on mexico a bilateral order issue. welcome peter mckay, former canadian foreign affairs minister. at the end of the day, how do you think this situation will play out? well, it's dire for the future ratification of the free trade agreement, the so-called new nafta. if this continues to go in the direction that the president has indicated he is willing to go, invoking this international emergency economic powers act, as it is so-called, it allows him, gives him almost unilateral power to them both these sanctions. mexico and lopez over door have reacted with some moderation, involving -- realizing that involves the north american free trade agreement but if it isn't ratified in mexico and is obviously running into some difficult and complex reaction in th

shery: with a huge rally. thank you very much.op officials are scouring incoming data to see if they need to cut rates in july. we haven't manufacturing report that could ease some of the concern on trade worries leading to a sharper than expected u.s. slowdown. our global economics and policy editor kathleen hays is here with the latest. let's start with a rebound in durable goods orders. think the message it sends is trade war uncertainty. we have seen some that manufacturing numbers, but around the world, the story is service is holding up pretty well. goods report, very volatile. nevertheless, visit us goods reports rebounded after falling three months, posting their best gains, in fact, in four months and we're looking at a proxy for business investment, nonmilitary capital goods orders. it is the heart of it. when you take out aircraft orders, which are all over the map all the time, go here to the right with me. you can see that orders were up 0.4 percent. they were down 1.1% the month before. these were small gains in the

shery: i'm shery ahn in new york. u.s.supplies including micron and intel have resumed selling certain products to huawei despite a ban put in place by the trump administration. here with the story behind that legal work around and what it means for white house policies is bloomberg executive editor for asia tech. great to have you with us. let's talk about this and explain to me how this would work for these companies. interesting. micron and intel have not explained publicly exactly why they think they are able to resume these shipments to huawei. micron disclosed this in the middle of an earnings call yesterday where they said they have resumed some shipments to huawei but they didn't give a very detailed explanation. the ceo was asked repeatedly about why they felt like they were able to do this and he refused to go into the details. he did the same in an interview with one of our reporters. what appears to be happening is these tech companies are coming to the conclusion that there is a workaround to the huawei blackl

shery: we have to leave it there, thank you. from new york and toronto, this is bloomberg. ♪ the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. ♪ >> i am mark crumpton with bloomberg word news. the supreme court today ruled against the trump administration's proposal to add a citizens question to the 2020 census. the explanation for adding the question was inadequate is what the high court said. president trump called the move quote, "ridiculous." japan for then g20 summit. he is expected to discuss the president's move to terminate india's special trade status. today the president will also meet with german chancellor and japanese prime minister shinzo abe. after twodied extraction areas caved in at a glencore cobalt's mine in the

shery: live from bloomberg world headquarters in new york, i'm shery ahn. live in toronto, i'm amanda lang. welcome to bloomberg markets. ratcheting up pressure on iran. president sanctions it supreme leader snoke off the ayatollah from financial resources. all eyes on g20. hopes are high about a top level encounter between president trump and xi jinping that could produce a breakthrough in a trade disputes between the world's two biggest economies. going all in. is buyingesorts caesars entertainment for over $8.5 billion in a deal that will create the largest u.s. gaming operator david a click on a major averages. stocks fluctuating between gains and losses through the afternoon. a few forces at play right now. there is expectation we could see more dovish central banks around the world but that is being coupled with anxiety over global growth, not to mention uncertainty over what could come out of that meeting between president trump and she at the g20. you have the s&p 500 virtually unchanged at the moment. tech, material stocks leading the gains but at

shery: talk about the extradition bill. it struck me that it not only affects hong kong citizens but also foreign residents and even tourists passing through. >> that is right. i am based in taipei, and what originally happened was there was a young man from hong kong who went to taiwan with his girlfriend and allegedly killed her there and then returned to hong kong. the extradition agreement meant he could not be extradited back to hong kong to face charges. some think it is a terrible injustice and want to address it. the concern is people are worried that people could be traveling through hong kong, people with whom china has a strong disagreement with, could be investors, analysts, dissidents, and hong kong has always been a place where things can be done which cannot be done in china. china will not allow any commemoration of the 1989 tiananmen crackdown. the anniversary a few days ago and police estimates of two and up to one million people taking to the streets last week in hong kong. if you whittle away the indepen

shery: i am shery ahn. sophie: i am sophie kamaruddin.own to asia's major market open. ♪ shery: the spotlight shining here in osaka today for the g20 swinging into action, trade tensions and u.s. with iran likely to loom over the proceedings. paul:

shery: i'm shery ahn in new york.chnologies has agreed to by raytheon and an all stock deal with $74 billion in sales. united technologies ceo greg hays championed the deal earlier from the new york stock exchange. >> this is good for america, good for defense. be bringing unparalleled technology. we will also save the government money. they billion dollars in synergies. half of that goes back to the dod in cost reductions. third, we will create a ton of jobs. shery: for more, let's welcome our aerospace reporter, brendan case. how much sense does this deal make? company of sense for a trying to get bigger in aerospace. united technologies has two unrelated businesses right now, elevators and air conditioners. it will get rid of those in spinoffs later this year, keep its aerospace supply business, which is already the biggest in the world. what it will do now is combined operations that are mostly on the commercial side, with raytheon's defense-based contracting business, which will give it a broad product portfolio

shery: president trump saying the u.s. isn't ready to make a deal with china on trade, although he claims beijing is, and he has repeated his threat to further increase tariffs on chinese imports. >> they are ready to make a deal. we are not ready to make a deal. we are taking in billions of dollars in tariffs, and that number could go up very substantially very easily. shery: the president not only speaking about china but also about north korea's recent missile launch. it seems those two issues may have overshadowed the u.s.-japan relationship. >> yeah, which is a little odd given that it was a state visit. he did come and pay his respects to the japanese emperor, the new one, but really shinzo abe and donald trump talked extensively about that relationship being the cornerstone of stability. while issue of china and north korea, those two issues really dominated the press conference yesterday afternoon. north korea, he said, hey, i'm happy with the way it is going. no hurry. shery: a key slice of the treasuries yield cu

shery: no, just yet.teresting coming from the president, his tweets, talking about xi needed to come to the table or raising tariffs of 25% or more. my thought, why are you trying to corner xi jinping, you need a way out. now he is saying today that he's the one who is holding up the deal. i do wonder if the president is trying to create a crisis through the 2020 elections. i'm going to ask the analysts we asia".ing on "daybreak: i'm going to be watching "daybreak: asia" with my family tonight. caroline: don't miss this. we will speak to commerce secretary wilbur ross at 7:00 a.m. eastern joe: i will be watching economic numbers for you, cpi out at 8:00 a.m. tomorrow. romaine: bloomberg technology is up next. joe: this is bloomberg. ♪ ♪ -- >> i'm vonnie quinn in new york in for emily chang. this is "bloomberg technology." holding up the trade deal with china. meantime, apple is already --ing up with a trade deal to keep out of china. we will speak to a top lawmaker