shery: i'm shery ahn in washington, d.c. where it is 6:30 p.m.et the first word news with jessica summers. jessica: thanks. china has confirmed top trade negotiator vice premier will join the latest round of talks in washington this week. the news is seen as a sign that beijing is fighting to keep negotiations on track after president trump said he is raising tariffs on friday. at the same time, sources tell bloomberg that china is are paring retaliatory -- preparing retaliatory measures if new tariffs are imposed. law enforcement from the u.s., malaysia and singapore meet this week to coordinate their approach to goldman sachs over its work for the investa ment firm under scrutiny for helping the fund raise $6 billion in bond sales that generated more than half $1 billion in fees. last week, david solomon told us the firm had begun talks with the doj over its role in the scandal. thailand's election commission has confirmed the party linked to the exiled former prime minister took the most seats in march's general election. constituencies in the

shery: i'm shery ahn. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. wall street tumbles as china hits back on tariffs. president trump warns beijing not to go too far. stocks fall the most since january. investors seek safety with gold up the most since february. the yen has strengthened in early trading. oil dropping for a third day and the racing earlier gains sparked by new tensions in the middle east. shery: later in bloomberg technology global link, uber suffers another day of selling. the stock down about 20% through its first four days of the market. islook at how the ceo selling the broad game. stocks losing more today as they did in the whole of last week. the dow lost more than 600 points. we saw stocks that are trade sensitive such as caterpillar and apple losing about 5%. more than 450 stocks lost ground on the s&p 500 which fell 2.4%. tech and industrials leading the decline. nasdaq testing the biggest decline of the year. 10 year treasury

this is bloomberg. ♪ shery: this is bloomberg markets. i am shery ahn in new york. i am amanda lange in toronto. was rejected by regulators cited national security concerns about their control by beijing, adding to trade frictions between the world's biggest economies. mark, i want to start with how surprising or unsurprising this is. how rare is it for the fcc to deny this kind of bid? we don't have a lot of foreign players in our telecom market. this,to me after seeing this may have been the least surprising thing i read this week. amidnese carrier the trade discussions and everything going on between the u.s. and china, trying to break into the u.s. market and become a telecom provider. there was no way this was going to happen in this climate. i do not find the surprising one bit. shery: the grounds given are inflammatory. beijing will not like the label of national security risk. how much is that due to undermining the relationship? mark: this is coming today trade talks are underway between the u.s. and china. today and tomorrow are pivotal days in the current

shery: i'm shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major markets open. ♪ paul: here are the top stories we are covering in the next hour. tension rises as washington concerns. new trade tariffs. u.s. officials say china has reneged in some of its commitments. to beijing team says one law strike a deal. the fed is increasingly worried about corporate debt. lending standards are slipping. startedet's get you with a quick check of the markets close on the monday session in the u.s. we are seeing u.s. futures starting to trade. pressure down 7/10 of 1%. not surprising given that we have seen after the market closed, ambassador lighthizer came out and confirmed tariffs will rise on chinese goods on friday. secretary mnuchin also saying we have seen a big change in direction on the trade talks. a lot of pressure on futures at the moment. during the trading session, during the regular session, the s&p 500 managed to recover some of the earlier losses. the s&p 500 have fallen as much as 1.6%. it closed down .5%.

this is bloomberg. ♪ shery: i am shery ahn new york.n sydney and you are watching daybreak australia. a quick check of the latest business flash headlines. johnson and johnson has lost another case and must pay at least $25 million to a woman who claims she contracted cancer after using the company's baby powder and shower products. it only reflects the award of compensatory damages. the jury will consider punitive damages that could be higher. shery: hong kong sold its first ever green bond nominated in u.s. dollars to become the second asian government after indonesia to raise such debt. the $1 billion five-year green bond will yield 32.5 basis points over treasuries. the proceeds will be used to finance environmental projects that support the sustainable development of hong kong. paul: it seems not everyone is for veggie burgers. beyond meat is being called up by one small time but well-known analyst who predicted the tumble of facebook back in 2012. $28 target has set a on beyond meat, 60% below the current price. shery: i don't car

shery: i am shery ahn in new york. >> i'm sophie kamaruddin in hong kong. asia." paul: a tear trade-off, the

shery: i am shery and in new york -- shery ahn in new york. engle is in beijing, looking into this.f course, given the current atmosphere in china and the u.s., not that surprising, but what exactly was the reasoning behind this? stephen: yeah. goingade dispute is further into the telecoms space. of course, there is the big lift with huawei -- rift with huawei that is not resolved with the cfo awaiting extradition to the united states. this is the case of the fcc and the united states, which has now -- in the united states, which has now barred china mobile in the u.s. market. that was in 2011, so eight years ago. and the fcc finally ruling on that and it is also open to reviewing the earlier authorization that they did grant the two other telecommunications companies from china, china telecom and china unicom. in the crosshairs is china mobile. the board voting unanimously, 5-0, to deny china mobile's request to enter the u.s. market after being urged to do so by the trump administration. the fcc determined china mobile is controlled by the government. this is what the fcc chairman

shery: i am shery and.ental has delivered a revised proposal to battle -- to buy anadarko as it battles with chevron. it has increased the cash portion of its bid and promised to pay a breakup fee with chevron. su keenan has the details. they really want this access to the permian basin. su: it seems that way. this is what wall street calls a love triangle. by updating the latest terms or revised proposal, they really effectively sidelined chevron's bid and puts chevron in the position of having to come back if they can with a sweetened deal. all that is going on with occidental in this bidding war, they are trying to win control of anadarko and become the leading producer in what is really the fastest-growing , no mexicoin woodlands. we know texas based anadarko will resume talks with occidental over $76 a share bid two weeks after announcing the share deal with chevron. .29 shares of occidental for each share of anadarko, that is at8% cash, -- if you go look the shares and how they have been performing, a

shery: i'm shery ahn in new york where it is 6:30 p.m."bloomberg daybreak: australia." let's get first word news with ed ludlow. reporter: the fed vice chairman says the central bank is prepared to ease monetary policy if it sees mounting risks to u.s. growth. however, he stresses the economy is in a "very good place" with inflation low. they say that risk assessment and not just data could be a trigger to the cut rate. >> we are attuned to the potential risks. if we saw a downside risk to the outlook, then that would be a factor that could call for a more accommodative policy. that is something in the risk-management area that we would think about. reporter: u.s. economic growth last quarter was revised down by less than expected. consumption was stronger than originally reported and so were exports. gdp expanded at an annual rate to 3.1%, down 110 from the original report. bloomberg intelligence says growth is dependent increasingly on consumer spending with business rattled by volatile markets and trade concerns. arab and muslim leader

shery: i am shery ahn in new york. ophie: i'm sophie kamaruddin. we are counting down to the market open. paul: here are the top stories we are covering in the next hour. wall street rose a third day thanks to solid earnings and strong housing data. trade tensions remain high. still in store, the largest losing streak since the year 2000 as prime minister theresa may agreed to a timetable to resign. election,fore the aussie dollar under pressure amid the ongoing trade war. shery: let's get you started with a click check of the markets closed -- a quick check of the markets close in the u.s. we saw a rebound in risk assets. every sector on the s&p 500 was in the green. we have solid earnings from cisco and walmart, lifting sentiment. not to mention that we have strong housing data and that really lifted sentiment across market. we also had yields higher with a 10 year yield hovering around 2.4%. still, anxiety continues out there over the latest trade headlines. it was not that surprising to see some of that rally fade into the close. the nasdaq clo

shery ahn: i am shery ahn in new york. you are watching daybreak australia. trump's.s., president action against huawei was felt throughout the chip sector. >> many of them have already stopped shipping and that has had an effect already. it shows that the market is still on edge. take a look at the way we closed. notice the semi conductor index, down 4%. that shows you the big drag, which was tech. futures are up slightly as we head to the next open. qualcomm, note they put out a slashing their forecast because of the anticipated loss of revenue from huawei. they have halted shipments as well. takencompanies have all major hits. let's go into the bloomberg real quick. here you see the last couple of .ays of sales lastly, let's take a look. this is a marquee stock that fell as much as seven point 5% in the latest session. in the friday session. an analyst says this is code red for the stock. they are really hoping that reaching the $200 level is significant. the company faces a monumental uphill climb to return and reach profitability at this point. paul: a f

shery ahn: thank you.he trump administration be ready to stoke further tension with china as a debates blacklisting more chinese firms that work on video surveillance, barring him from u.s. tech and halt the global business. theing hit out, calling tactics unfair and politically motivated. let's get the latest from our editor. it seems the rhetoric is heating up from both sides. tell us what could president trump do next here. >> the question has been bubbling about chinese firms and user use, their equipments and repression in china and possible use of espionage against the u.s. some of it has been coming along for a while. the timing is interesting. it does come in the middle of this dispute between the u.s. and china, the breakdown of talks in trade. with the u.s. can do is put another set of companies under the same restrictions that it did with huawei, and forbid the u.s. companies from selling restricts and importation of articles to the u.s.. this will further cut into china sales and some large cor

shery: i am shery ahn in new york.mart rose the most since christmas in early trade after meeting sales estimates and indicating that will not pass on the costs of tariffs to consumers. u.s. sales climbed 3.4% through march marking walmart's best performance in nine years. it is expected walmart's response to paris will set the tone abroad. paul: boeing has finished an update for software linked to two fatal crashes of its flagship 737 max. says it has flown 360 hours on more than 200 flights with the new software. shares rose. shery: alibaba is facing complaints from six european consumer groups over allegedly unfair user terms for its online retail service. organizations from france, spain, italy, and the netherlands file complaints with the netherlands filing potentially unclear contract clauses in the e.u. the mysterious our terms for settling disputes between sellers and tires. paul: china's starbucks challenger has raised more than $560 million in expended ipo in new york. $17 apiece after initially marketing 30

shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this wednesday, asian stocks look set to follow wall street lower. a protracted u.s.-china trade war. a risk-off rally in 10-year treasuries sees the yield curve fall deeper into inversion. apple's earnings could plunge by .25 if china retaliates by spanning the iphone. shery: let's get you started with a quick check of how markets closed in the tuesday session after coming back from a long holiday weekend. we saw the s&p 500 fall towards the 110 level with 10 of main groups falling. we are talking about utilities and consumer staples leading the declines. we continue to have concerns over the ongoing trade tensions between china and the u.s. sectors on the s&p 500 also reflect that. the nasdaq falling .4%. we saw theing treasury rally accelerating in the session as well. s&p futures at the moment are not doing much, standing at the 2805 level. sophie: stock futures lower at the global bond rally. it is likely to keep going. the tech s

shery, paul. shery: we have breaking news out of the financial times, now reporting president trump will threaten to curb intelligence sharing with the u.k. if they allow huawei to build part of the country's five g mobile network. this is a message they are expected to deliver in person during president trump's visit to london next week. british and american officials saying that the u.s. president has decided to raise the issue during the three-day visit to the u.k. that after repeated efforts by his aides failed to convince the u.k. government to block huawei. this coming from the financial times that the president will threaten to limit intelligence sharing with britain as it continues to put more downside pressure on huawei and sort of ban it from networks globally when it comes to building their 5g system. we are now getting the latest find out of financial times and of course, president trump visiting europe next week. the president has had limited success in trying to curb huawei's efforts

shery: i'm shery ahn in new york.l boxnother office high, disney is set to report second quarter earnings after the bell. the latest installment "avengers: endgame" is already poised to become the biggest blockbuster of all time, and that is just one of the highly anticipated films they are sent to liver this 2019. will it be enough to impress investors? did you watch the movie? >> i have not seen it yet. shery: it is so good, you have to watch it. it was very good. that is a huge one for 2019. but 2020 will not be as exciting . what are we expecting? >> a little bit like this quarter, not much for disney to report on at the moment. came out inndgame" april, the quarter ended in march. that will not be a part of the results. disney plus is launching in november. investors are waiting to see what they say about his upcoming films and a streaming app coming out this year. because of all the big blockbusters this year, the line 2020 will look relatively boring in relation because there will not be as many big films. aman

shery: i am shery ahn, welcome to "daybreak asia." paul: our top stories this tuesday, the t ariff-driven selloff. investors seek safety. gold gained the most since february while the yen has strengthened in early trading. oil goes the other way, dropping for a third day and erasing earlier gains sparked by tensions in the middle east. shery: that's get you started -- with aet you started quick check on how markets closed. stock markets losing more than in the hall of last week. without losing more than 600 points. trade sensitive stocks like caterpillar and apple losing 5%. the s&p 500 fell in this session. with all the nasdaq also losing the most this year. 10 year treasury yields falling to the lowest levels since march. the three-month tenure part of curve 10 year part of the falling. u.s. futures not doing much and holding above the 2800 level. let's see how we are setting up for the asia open. paul. paul: thanks. as you might expect, it is not looking too good. nikkei futures are currently pointing lower by 1.7%. japan's setting

shery: i'm shery ahn in new york. it is time for the business flash.y have agreed to buy the semiconductor business of marble technologies. the dutch company will pay $1.8 billion in cash. says it expects the revenues to double by 2022. rk is in talks with banks about arranging a credit line of almost $2.8 billion. jpmorgan is leading the potential financing. says they want the credit line in place before the planned initial public offering. you can airlines pilot more in the carrier of the dangers with the month before the fatal crash. bloomberg reviewed documents and showed the pilot told the airline more training and better communications were needed. he was concerned after an crashedan 737 max 8 into the java sea last october. in a tweet, if you can airlines says it complies with all regulatory requirements and also said the allegations are false and incorrect. that is your business flash update. this is bloomberg. ♪ mark: former special counsel robert mueller broke his silence about the russia investigation today. he said there was not enough evid

shery: i'm shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major markets open. ♪ stories we are covering in the next hour. alibaba mulls a $20 billion second listing in hong kong. a megadeal would bring the company closer to investors in its homeland. president trump says they are ready for a trade deal but china isn't. huawei's boss denies intellectual property theft and says the company is a target. startedet's get you with a quick check of the markets trading at the moment. markets in the u.s. are closed on memorial day holiday. u.s. futures at the moment trading at 28.31 level. mixed messages coming from president trump in japan talking about progress with japan on free trade negotiations but when it comes to china, we could see u.s. tariffs on chinese goods going up very easily and substantially. we are now seeing the bloomberg dollar index gaining ground, .1% . we are seeing the euro unchanged at the moment, under a little bit of pressure after that early strength that we saw after the eu elections. when w

shery: i am shery ahn in new york.resident trump is calling on the federal reserve to help win the trade war with china. he says victory would be inevitable if the u.s. matched stimulus moves in beijing. bank of america merrill lynch says the next steps are not simply a game of chicken involving the president and xi jinping. it is a match between markets and the fed chairman. merill lynch head of global interest rates and economics research david woo joins us now. great to have you with us from hong kong. what do you make of the president's tweet? is it just another way to hit at the fed, ask for help, and does it mean anything? will it active trade tensions get worse? -- will it act if trade tensions get worse? david: i do think trump is in a stronger position now than he was in september when the fed was hiking rates. there is no doubt the fed has stopped. from that point of view, that is helping to support risky assets. ironically, that is giving trump more ammunition to continue this trade war with china for the ti

shery: i am shery ahn. let's get to first word news.t with the aussie dollar which strengthened in early trading after scott unexpected victory. the liberal national coalition defeated what the prime minister called a miracle. 6868 -- the aussie dollar was 68.68 last week. since the lowest level january. >> i have always believed in miracles. [applause] and tonight we have been delivered another one. good is australia? plus, saudi arabia and other top oil producers are signaling their intention to keep supplies restricted for the rest of the year while pledging to resort -- pledging against shortages. after talks in the kingdom over the weekend it is not clear how much russia shares that view with the energy minister talking about potentially relaxing the opec output curves. the group must stay united. >> my recommendation to my to guides will be things down gently. to stay on trajectory of bringing inventories down to a normal level. it is why i am making sure no customer or refinery is left without a requirement for crude oil. 16 peop

shery?ss what is happening in japan after they came back from the golden week break. let's talk with ed rogers, ceo and cio of rogers investment advisors . he is on the phone. we are expecting the japanese markets would fall, but we have seen the japanese yen strength in during the holiday. a lot is happens, including the raising trade tensions. the japanese yen, it's strength not as much as expected. is that helping the equity markets in japan not to plunge as much as we have feared? thanks for having me. the market has opened down. it's not a major down. these are fairly small moves. the negative news on the trade talks, it has been absorbed. you are seeing some small yen weakness. these aren't major moves. market has rebounded note, that was the final and that is where japan has picked up the song, as it were. shery: it's really interesting with the japanese market, if you take a look at it long-term. we have seen it lag. linee seeing but the white of the top, has lined. what is going on

shery: thank you.oming up, why john cleaves decided against a banking career , this is bloomberg. ♪ this is bloomberg markets, i am shery ahn you new york. toronto.i am john in president trump sending a pardon all the way to canada, pardoning conrad black yesterday, for giving his convictions for mail fraud and obstruction of justice, for which he already served 3.5 years in prison. this comes a year after a book was published titled donald j. trump: president like no other. he discussed the book with us, heaping praise on the president. >> he made a spectacular comeback from bankruptcy. he went cold turkey on the television and is a huge star. he's extremely successful and tactically astute. some kind word from conrad brock, who apparently got some high profile support from the likes of henry kissinger and elton john in the oval office as part of this. it's interesting -- shery: it's interesting that the pardon did not include any legal basis, just brought death -- just contribution to historical and

shery: i'm shery ahn in new york.ency markets, subdued, showing demand for traditional havens. bye-bye they you on another trade proxies are falling. is say-- our next guest -- saying bearish on the one. bank had a fixture strategy is with us. always great having you with us. let's take a look at the chinese yuan. this gtv chart on the bloomberg showing three months risk reversals when it comes to the offshore yuan, rising to the highest since november. these demands are wagers against the yuan. are the yuan bears back on the prowl such as yourself? being.the time i would not classify as as a massive you on their. but -- yuan bear. on theis a great gauge fear around trade tensions. we were bearish on the yuan short-term before, the most recent bout of trade tensions picked up. foro think there is room this to move higher as long as the trade tensions linger. hedge think it is a great for allocations that otherwise long riskier assets like equities or corporate bonds. shery: how big of a risk is into your scenario if w

shery: i'm shery ahn in new york.ber is set to release its first really earnings results after the closing bell and give the company a chance to address that . with us iseaty mandeep singh. we are going to be looking at revenue growth. also, profitability. what will matter in these results? >> obviously, first, earnings. the focus will be on takeaway. when you look at uber's financials, going back to 2017, 2018, bookings growth equaled revenue growth. that is a sense of stability intake rates. recently they have been aggressive in subsidies. you will see some decline in take rates, and that is the key in metrics. we know they are not going to be profitable soon, but in terms of how they are gaining market share, how they are stacking up against the competition in terms of the addressable market, those are the most important questions to me. we are one place watching that is their core platform margin, contribution to margin, which have been negative. is it possible to get an upside surprise? >> very unlikely. they pre

shery: your thoughts? has am: i think brazil long friendship with the u.s., and a very strong economic and cultural ties. countries of the few that has a trade deficit with the u.s. in terms of the worth of services since so many resilience come to the u.s., -- funone in disneyland in disneyland and everywhere. i think it is remarkable how much has been achieved in the last couple years and with the new administration here and in brazil. recently we had a visit of the and went to the u.s., could open so many mood -- new things. i think here, we have to mention all of the new measures that we are taking, for instance in aerospace. agreement, in terms of security, the safeguards, and the agreement to use one of the best spots in the world to launch rockets and satellites. it is not just to be a launching pad, but because of the agreements and the trust, it is an opportunity to build a lot of business and suppliers. to a system to improve airplanes and airspace. with this new relationship we open a opportunit

shery: thank you so much.'s bank of china warning the trade war could destabilize the global economy. they are going to continue targeted stimulus, stabilizing the yuan. our china economics editor joins us from beijing. abouts the pboc saying really balancing, not only the stimulus measures to support the economy, but not flooding the markets with liquidity? are seeing the pboc continuing. they're going to continue with their target stimulus measures, they going to get more stimulus to the economy, it is not going to be a rate cut, but they did say the economy is growing in the potential growth rate, they are not looking to cut benchmark rate across the board. even with concerns the express , they aretrade war continuing to say, we want to get more credit to small private companies that are struggling to get access to bank loans. we are not going to be flooding the economy with massive amounts of money. paul: the bank saying the economy has some deep seated problems. where are these problems most deep-seated?

shery: i'm shery ahn a new york.ng a mixed start to the monday session following three weeks of declines on u.s.-china trade tensions. joining us from hong kong is binay chandgothia, global investors managing director and portfolio manager. always great to have you with us. we have seen the selloff in asian markets, particularly in china. does that mean potentially valuations have come down, that it is cheaper to getting to the action? binay: yes, hi, good evening. valuations have definitely come off after the selloff from the third month of this year. clearly, valuations which are at the end of this month. having said that, we realize that valuations by themselves are not a trigger unless they reach extreme levels. we have not reached extreme levels yet. which means it will depend on the economys up and growth. in both asia and the u.s. shery: we continue to see the latest headlines on china-u.s. tensions, affecting huawei, and potentially other chinese tech companies. is this a sector you would be particularly worr

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. act now, president trump wants china to strike a deal on trade because worse could be on the way if he is reelected. uber will be in the spotlight when wall street opens. investors bracing for another tough day. australian elections swing into gear with scott morrison appealing to the country [indiscernible] shery: u.s. futures are trading after a weekend of trade antagonism tween the u.s. and china. futures are down .7%, reacting to the latest from donald trump. he tweeted china broke the deal, that we are at the right place, where we want to be in china. we have the u.s. markets closing optimism tradead negotiations didn't completely breakdown. 10 out of 11 sectors on the s&p 500 gained ground, being led higher by utilities and materials. we also have the dow gaining .4%, the nasdaq unchanged but we have data out of the economic front. we saw the dollar falling to session lows and u.s

shery: i am shery ahn in new york. paul: i am paul allen in sydney.ck check of the latest business flash headlines. below $200 at the start of the session. this was on concerns about his ability to make money. tesla's described current state as a coded situation. $230rice targets between from 275. from 375 last month. he says he has major concerns about tesla's growth prospects. >> shelley pushed deeper into online gadgets. -- services and tech gadgets. these made his name with devices. mobile payments, video streaming and other projects are upsetting smartphone market. paul: t-mobile and sprint both surged as the fcc chairman said he will recommend the green light for their 26 billion dollars merger. the tension -- attention now deal willhether the get clearance from antitrust regulators. the justice department is leaning against the takeover. coming up next, president trump's been on huawei swindling -- ban on huawei sending ripples through the chip sector. this is bloomberg. ♪ >> this is daybreak asia. i am jessica summers with the first word headl

shery: live from bloomberg world headquarters, i'm shery on.a: live in toronto, i'm amanda lang. -- i'm shery ahn. shery: the future of the eu. over 50% of european voters turned out to vote in the parliamentary elections, the highest turnout in two decades. we have the key takeaways. president trump is back from his trip from japan, landing moments ago. did his visit move the needle when it comes to trade talks? amazon poised to cut out the little guy. bulk orders are set to dry up for mostly smaller suppliers. in a few moments, we have the details. let's get started with a quick check on the major averages. we are seeing pressure for the s&p 500, dow. we had some earlier gains but u.s. stocks not able to hold on to those. this of course, after the holiday weekend. we had some concerns over trade tensions with china. we are seeing consumer staples and utilities weighing on the s&p 500. we did get consumer confidence data coming in better than expected. the nasdaq up .3%. we are seeing a treasury rally accelerate. the yield curve falling deeper

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. president trump turns up the heat on china, threatening to impose more tariffs on imports as he is not happy with the pace of talks. the philippine central bank governor has plenty of room to ease. he also welcomed the upgrade from the s&p. or in the footsteps of his criticism of private equity firms, accusing some of dishonesty. we will have more from the meeting in omaha. looking at how markets close, looking at u.s. futures plunging more than a percent, 1.3% at the open. we had president trump tweeting we could see these tariffs on $200 billion from chinese goods being hike to 25% friday. that the u.s. china trade talks continue. 500 gained the most in a month, taking the surge to 18%. we have the nasdaq composite closing at a record high. we have amazon shares jumping the most as we heard from warren buffett that berkshire hathaway has been buying its shares. data that strong job gr

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. wall street recovers as president trump strikes a more optimistic tone in the trade. the dollar strengthens and treasuries fall. the new york fed president sees on effects from the trade war but john williams says there is no need to cut rates. >> i think the policy is in the right place great i don't see a reason to have a bias upward or downward. paul: nissan hits rock-bottom as profits go to a decade low. we will look at the road ahead with the plan stuck in neutral. shery: let's look at how the tuesdayclosed in sessions. we have them coming off of the worst selloff in four months to gain ground with the dow up .8%. that rally faded into the close, still big exporters like caterpillar and boeing were able to reverse some of the losses we saw monday. tech also have gains on the s&p 500. we had energy up, oil gaining ground after we heard some drones had hit saudi arabia's main crude p

shery: the u.s. and china are sending mixed signals over trade, with president trump exposing optimism over a deal, and beijing warning it will retaliate if he follows through on his threat of tariffs. let's speak to our bloomberg editor and china correspondent. there have been conflicting signals from the white house and beijing. what have we been hearing from the u.s.? >> there is a bit of gamesmanship by both sides. he u.s. -- donald trump said believes the chinese delegation is coming to washington thursday local time, looking to make a deal, this after some tough talk about raising tariff s. they are planning to kick those additional tariffs in as of the first part of the day friday. the chinese effort to retaliate if that takes place. -- have threatened to retaliate if that takes place. there will be an opportunity for both sides to dial back a bit, but this is all leading to what is supposed to be the final round of negotiations. it could just blowup and come without any sort of agreement. pau

shery: i am shery ahn in new york. [indiscernible] it success. bloomberg at huawei's headquarters. u.s. is more likely the steals our technology. now we are leading them. whether we have a government background, kpmg can order it. the american auditors audited us. it can ask for a report from them, right? this unfounded conclusion my not be right. we are leading the u.s.. if we were lagging behind trump would need to make any efforts to attack us. we are more advanced than them. >> if at a moment of national crisis, the government came to help,d said we need your we need your cyber skills, we need access to your network. because it is for the good of the country, for the good of the government, the chinese people. how would you respond? >> we absolutely would never extol any backdoors. we would never do that. we don't serve intelligence services. why should we install backdoors? >> what are the practical steps for denying were -- a request in china? >> we have never done that. a german newspaper released an article saying they could not find any

shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. paul: here are the top stories we are covering. always found are facing the sanctions -- we speak exclusively to him. >> i will ignore trump, then with whom can he negotiate? if he calls me, i may not even answer. paul: electing a new parliament in the shadow of brexit. the brexit party hosting a strong result in northeast england. trump talks trade in tokyo after a weekend of sumo and sushi but there will be no deal on this visit. startedet's get you with the breaking headlines. we are seeing the brexit party taking the vote share 38% in east england. the conservative vote share is 10% in the east of england. the european parliament e.u. wide border turnout 55 percent, talking about elections in 28 union place with the brexit party of nigel farage taking a strong lead in that part of the u.k. in england taking 38%. let's get a look at how fx markets are reacting to the results out of europe. we have seen the euro and the moment.in gro

shery: i am shery ahn. .ophie: and i sophie kamaruddin we are counting down to the major market opens. paul: our top stories this wednesday. asia civic stocks are set for heavy declines after president pushes terror threat items down. china confirms talks in washington, but officials also say retaliatory measures are being prepared against u.s. goods, and lyft sees a brighter future as performance beats expectations, but there is worry about ballooning losses. shery: we have breaking news out of south korea, the current account balance, the surplus at surpluslion, the larger 4han previous months, also $8. million much higher than the previous month in february. of course, we had seen exports take a hit in south korea despite the fact that exports fell for five consecutive sessions or five consecutive months. we are now seeing the surplus in the trade, in the current account balance coming in higher than the previous month of march billion. let's get you a quick check of markets closing. downside pressure across the board in the u.s. with all 30 stocks on the dow falling, and we also h

this is bloomberg. ♪ shery: i'm shery ahn in new york.en in you're watching daybreak australia. it disney's dream of being a giant of the streaming world will be expensive but they are sure they can afford it. the latest earnings report topped expectations. profit fell 13% in the last quarter but that was better than analysts expected while sales also beat estimates. >> beijing signed a deal to build natural gas plants in a rock. giants will. out the work which will take two and half years to complete. iraq will use the plants to generate electricity and reduce its reliance on gas from iran. and: a failure by the u.s. china to reach a deal -- they warn that steel orders will slump if there is no agreement in washington this week. bloomberg heold sees an 80% chance of a deal. plenty more still ahead. we are live from the jpmorgan global china summit in beijing. we will have an exclusive interview in the next hour. almost it for us. we have trading underway in new zealand. it is flat right now but in positive territory despite the weak lead

shery: i'm shery ahn in new york. we just heard from st.sident james bullard who told us rate cuts may be justified if inflation remains below target. the fedore clarity on relief system from its main meeting wednesday. let's cross to our market strategist. great to have you with us. are you expecting any fed moves this year? think it is something we will look at into 2020, just singapore, we do get uncertainty, in terms of whether is to come. there is not rod expectation for growth slowdown prayed trade tensions are adding to the worries. as far as the u.s. economy is concerned, we see indicators that there is no need yet. there are a few changes, but my expectation is into the next year. shery: because of those trade tensions, we see the bloomberg dollar index around a two-year high. ofjust heard from the cio payment capital management. take a listen to what he had to say. long dollars, u.s. dollars. that means we are short southeast asian currencies. shery: what are your views on where the dollar is headed? especially given that you have

shery: i am shery ahn in new york.he tech sector retailers and energy stocks all took hits as .he s&p 500 fell su keenan was watching all of the action. goldman sachs believes this stalemate is going to go on for quite some time. they think the odds are higher for a lack of agreement, which will continue to weigh on the market, and we also saw, you know, a lot of other crosscurrents coming from earnings, which we will get you in just a minute, but retailing continues to be a big theme, and we got reports showing both sides of the story, which we will get you. we have got futures relatively flat, and as kathleen went through the fed minutes, it did not have a big impact on the markets. stocks stayed down. yields were still higher. let's go to some of the big movers of the day. target really came in with a surprisingly strong report on sales. there comparables were much higher. improving e-commerce. they surged the most in more than a decade. that really gave a more positive the trend ons the gloomy retail story. lowe's

shery: i'm shery ahn in new york.tal is getting closer to its acquisition of anadarko, this after sweetening its cash bid to 50%. here to talk about the latest development in oil m&a is the senior analyst at cowen. when we first saw this narrative, it was more like david versus goliath. at this point, doesn't make sense to go with a smaller player, given the terms of the new offer? >> i stay you can throw sense around -- out the window. it is a more -- it is a more superior offering at this point. chevron's than effective did, so now we're in a waiting pattern to see, does the anadarko board confirm it as a superior bid on the part of inidental, and what happens the days that follow, does chevron respond? amanda: interesting to see chevron and occidental trading higher today. what do we read into that about what the market is betting about the outcome here? >> difficult to say but most likely the market is deciding occidental will win the prize here with anadarko. i think you are seeing shareholders looking at occiden

shery: that is good to hear.ook at other asian currencies with the function on the bloomberg. it is also showing throughout the month, really asia and em currencies have been the biggest losers. we have seen that japanese yen remain supported. look at the j -- gains on the japanese yen. are these safe havens going to hold for the yen against the dollar as we see the uncertainties spread? i do see the appreciation of the yen against the dollar because they have been driving inflows. think we have both come apart from that we are helping to emphasize the differentials between the u.s. and japan. we also have the correlation between the currencies and the real yield differentials. we think now we ca modest gradual appreciation through 2019. shery: always great talking to you. missed part ofou that conversation, tv is your function. you can watch it live or catch past conversations. also dive into any of the securities or bloomberg functions we talk about. become a part of the conversation. if you have any quest

shery: and i am shery on. you are watching "bloomberg daybreak: australia." yield on the treasury notes hit their lowest in 19 months, and the key part of the yield curve fell deeper into the inversion zone. kathleen hays is here. we are seeing the 10-year yields continuing to fall, but the three-year is kind of where it was. are there concerns with the ongoing trade war right now? kathleen: the escalating trade war, so many concerns about the global economy, u.s., china, japan, korea, europe. they are all there. then we had the yui -- the eu elections. over,pulists did not take but there was also the budget, and nigel for our -- nigel farang. what this shows you is the blue line is the 10 year note that , the lowest26% since 2017. the yellow line is the shorts on the treasury 10-year note. now, usually shorts diminish, because it is such a strong buying market, but the last couple of months, they have diverged. now, people are starting to short the 10-year again, maybe they are thinking it is overdone, but that remains to be seen. meanwhile, the bond market

shery ahn: i'm shery ahn of bloomberg world headquarters in new york. sophie: i'm sophie kamaruddin in singapore. we're counting down to asia's major open. ♪ paul: here are the top stories we are covering in the next hour. trade talks resumed in washington with president trump saying the deal is still possible. even so, wall street closed with a fourth straight loss. of the bottom of the range. the ipo valuing the company below its last private estimate. -- to infinity and beyond almost. jeff bezos fires up the space race, making a case for a return to the moon. shery: the s&p 500 fell for a fourth consecutive session, now headed for its worst week of the year. we saw materials and tech stocks leading the declines. those are two sectors that are sensitive to trade. we had at one point stocks paring back some of the earlier declines as we heard more positive news out of the white house with president trump saying he is still expecting a deal this week, that he may be speaking on the phone with president xi jinping. of course, that was not enough upside f

shery: thank you so much for that. johnson with an update on rexit.s happening with bexi live from toronto and new york, this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. scarlet: in moments, the federal reserve will publish the minutes from its last meeting, where officials held rate steady and their plan to be patient as they monitor future moves. caroline: as we trade ahead of the fomc minutes, we see money pouring into the bond market today. yields coming down, the bank of america merrill lynch outlook cut for 2019, seeing it as low as 2.6%. no end in sight in the u.s.-china standoff for th

this is bloomberg. ♪ shery: i'm shery ahn in new york.sydney.allen you are watching daybreak australia. in an exclusive interview, hong kong exchange chief executive told us he is happy alibaba may finally be coming home. isi am happy if this report theyd correct that planning to come. if they do come, it is not a surprise to us because i have said when you travel far, you come home. everybody does that. it doesn't mean you give up your new home. i'm sure this is going to come and keep whatever they are doing in new york are other places and they will be coming back to asia. here, or they could be in shanghai or in china. happy that they are coming back and we will be very happy for whatever decisions they might make. >> the news about alibaba's potential secondary listing here. are you assessing your strategy in light of this? >> this trade war is a global event. it is going to affect all of us very deeply. nobody likes it. we are all watching on the sidelines praying that this divorce is not to take hold and maybe there are ways to scal

shery: shawn donnan for joining us.bia reported drone attacks on to pumping stations, days after oil tankers anchored off the united arab emirates were damaged by an unknown object. let's welcomeis, tina davis. saudi arabia was so's to -- was supposed to -- how significant will this be. a 1200 kilometer pipeline that runs from the persian gulf to the red sea. it has the capacity to handle 5 .illion barrels a day it usually handles much less than that because it is essentially a safety valve in case saudi arabia needs to get the oil from the east to the west coast terminal, and that is the red sea. there were attacks off of the uae sunday. s have blamed it on a group. the drawn tax were a rainy and back -- were a rainy and -- the drone attacks were ukrainian backed. amanda: one thing that comes to mind, a massive stretch of the pipeline is pretty hard to detect and defend with new technology like this. do we need to brace ourselves for this in the future? tina: there was a very famous suicide attacked that was foiled aga

shery: i'm shery ahn in new york.n stanley slashes its worst case scenario for tesla's share price to just $10. the analyst team led by adam jonas said the demand is at the heart of the problem. tesla has grown too big relative to demand, putting great strain on the fundamentals. joins us with more on this story. this is of course coming on the back of red bush calling their troubles as a code red situation. for adam jonas to really deal tesla a blow like this is something. it was just a few years ago that he had a price target of $465 based on an autonomous vehicle business and rapid growth. asla itself has traded like growth stock. now you have very influential analysts saying where's the growth going to come from and if you look at first quarter sales they are definitely disappointing. expensive cars and the question i think a lot of analysts and investors are asking is how much appetite is there in the u.s. for cars that start around $40,000 with decent equipment and go up north of $100,000. so you make up the dem

shery: live from bloomberg world headquarters in new york, i'm shery ahn.a: live in toronto, i'm amanda lang. welcome to "bloomberg markets." are our top stories that we are following from around the world. the trade war gets taken up to another level. raiseannounces plans to tariffs on some american imports starting june 1, define a call from president trump to resist escalating the dispute. the move sends global stocks into the red with u.s. stocks on pace for the worst day of 2019, and the nasdaq losing more than 3%. plus, you'll hear from the mayor of the toronto provisional budget cuts. we will hear what he plans to do to address the issues. let's get back to the markets. we are seeing the s&p 500 falling 2.7%, major u.s. indices in the afternoon session falling 2.5%. the dow losing about 700 points. we are talking about trade sensitive names like caterpillar, boeing, apple falling more than 5%. the s&p 500 led lower by tech and industrials. 500stocks on the s&p falling at the moment. the nasdaq also losing the most ground since december. we have the b

shery: we continue to see the downside on inflation.e can see the chart showing the april numbers. when can we expect the tariffs to be felt in the economy by consumers? that we will see very little impact on consumer prices and producer prices from these tariffs. of studies have shown the short-term effects that historically have shown tariffs had had very short-term price increases domestically. over the long run there are a lot of substitutes available. prices do not go up as much. in the united states no pricing power by retailers and producers. i think a lot of the firms will have to absorb the tariff cost increases and likely a lot of it will be pushed back by importers to chinese producers who are in state owned enterprises and they have a lot of profit margins to absorb. lloyd blankfein was saying something controversial. he is tweeting about the terrorists saying they might be an effective negotiating tool. china relies more on trade and loses more. as in a labor strike where management and workers both get hurt the process dem