we now go to our chief north asia correspondent, stephen engle's, on the ground for us. teve, what is happening right now? stephen: that is a better question than the last question i got. someone asked me, is it going to plan? what is the plan? you know something i don't know? that is what we are here for, we don't know the outcome. these deliverables have not been determined beforehand. we do know they had some awkward half miles and the hoopla around the big handshake turned out to be about three shannon jakes -- three handshakes. they retreated inside for cross table discussions. they even took a walk around the top floors of the building behind me. we are perched out in front of the capello hotel, where this high-stakes handshake and summit is taking place. i will run through a few of the comments. you think you have all this time to prepare for momentous commentary, but the wording was fairly simple. donald trump said we will have a terrific relationship, i have no doubt. donald trump has long said that he will no within the first few minutes whether kim jong-un is g

stephen engle reports from beijing. n: xiaomi's decision to postpone a simultaneous listing in shanghai with its hong kong ipo could lower ambitions. the hong kong ipo is said to be the world's biggest in nearly two years to raise about six point one billion u.s. dollars, but it is a considerably shaved down offering that originally was expected to top $10 billion. the companies cfo says there is no timeframe to revive the domestic part of the listing. sources say xiaomi scrapped offering because of differences with the regulator overvaluation, but xiaomi says it has no dispute with the csrc. may dispute xiaomi's valuation. the ipo is said to be marketed at up to 29.3 times forecasted 2019 earnings, making it twice as expensive as apple and pricier than tencent, china's biggest internet company. xiaomi says it deserves a premium and valuations because it sees itself as an emerging internet and e-commerce company rather than simply a lower margin smartphone player. the ipo likely begins trading in hong kong july 9. stephe

we want to thank haslinda amin and mark cudmore and stephen engle. let's get the bloomberg first word news. donald trump has said he has signed an important document with north korea's kim jong-un. working toward a complete earization of the korean peninsula and commit to a lasting and stable peace. donald trump is scheduled to hold a news conference after the historic one-to-one meeting. withr whole relationship north korea and the korean is mine to be a much different situation than it has in the we both want to do something. we're both going to do something. we have developed a very special bond. trump's topd economic advisor has suffered a mild heart attack. the white house says he is doing well. larry kudlow has been a longtime confidant and accompanied him to the g7 in quebec. it ended with kudlow backing up the president'irritation with some of america's traditional allies, most notably, canada. the imf's managing director christine lagarde had said threats to the global economy are rising. she said the clouds are getting darker, the chick of

manus: let us see whom next first our chief north asia correspondent, stephen engle, with the variousest on the trade war. global stocks, as we said, have been showing nervousness, as the trade war starts to look like a reality. the international ceo of gloom -- goldman sachs asset management, told bloomberg that there was fear that something has escalated to a near consequence. >> i think investors are more cautious that ok, there may be actually substantial done by the u.s. that generates reaction eu. china and the that reaction and the potential tit-for-tat that could go on, has people much more nervous. anna: sheila patel of goldman sachs, joinin was joining us th. we welcome our next guest, joining us in the studio. i was fascinated by the list of trade as aciting reason for cutting jobs, moving facilities or change in their pricing structure. this is having an impact quite quickly, harley shifting production to europe, the maker of jack daniels speaking about cutting prices, this is having an impact already? guest: it is, starting to. especially given that we have been seeing co

haidi: thank you so much, stephen engle in hong kong. plenty more ahead. bloomberg. ♪ haidi: i'm haidi lun. julie: i'm julie hyman. this is "daybreak australia." five chinese resorts on a tropical island laying the groundwork for entertainment bars or cashless casinos. they are betting that the island will be spared from gambling restrictions, as officials seek to boost the tour is a ministry. we go to tokyo now. explain to us what the entertainment bars are and whether they have already been around. >> yes, they have already been around. this would be a resort hotel that includes, for example, baccarat tables at which anybody can place a bet, buy some chips and place a bet. the only difference would be is if they win they will be getting back chips that would be good for spending at local restaurants, at the nightclubs and that sort of thing. so when we say cashless, we mean you cannot win. you can lose cash, but not win cash. you would be winning prizes. these have been set up for years on the island, but then in 2014 local officials said, wait a minute,

stephen engle joins us from beijing. what more do we know?ter: we know what we are hearing from sources, that xiaomi will issue an updated prospectus this morning ahead of the open in hong kong, said to be about 8:00. we are learning as well they have set tentative terms for this ipo. scaled back a bit because of the delay or postponement, or the cancellation, we are not sure -- listing.r as much as half of the ipo was supposed to be in a china depository receipt in shanghai, but that has been scrapped. i will get into that in just a bit. let me give you the updated terms we are hearing from people close to the situation. $17pricing could be between hong kong and $22 each. plans to offer about 2.1 8 billion shares. that would raise about $6.1 billion u.s., still the second-largest ipo in the last couple of years, but still a bit off of the $10 billion we were expecting because of the joint cbr and hong kong listing. upwards of half of that would be in it, but it has been postponed. we are hearing that institutional orders could be starting as

stephen engle is in singapore with me.e up thry alliance number lovehat the u.s. has had here .n this part of the world stephen: he definitely dropped this long. when we read through the joint statement, it was dirty water down. the first two points were about establishing long-lasting peace and reflecting the wishes of people in both countries. and the third one was just a reaffirmation of the declaration from late april with moon jae-in , for north korea to embarq or pursue complete denuclearization. nothing about verifiable or irreversible. down.as really water the fourth part come up very symbolic, about the pows and mias, but again, nothing about denuclearization. -- thed not necessarily north koreans did not necessarily give any concessions. so what did president trump do, he give a major concession during the press conference, and that they will stop the wargames outh korthat is a major deterref thosekorea, to have wargames. i am not advocating them, but to give that up as an amazing what is it, 32,000 or so u.s. so

in stephen's bring engle. joining us from santa rosa. sentosa. life you like everyone else is getting on the other side. when we do know is that kim bodyguards,urt of they are very fit soldiers in the black suits and they're already for his arrival. they presumably will run alongside the car as kim jong-un arrives at the capello hotel. -- inw donald trump anticipation of the continued charm offensive of kim jong-un, he did put on the charm at the dmz when he met with moon jae-in. we have even seen public opinion in south korea spike upwards of 30 or 40% approval of kim jong-un. that was about half of that before that for some it. kim jong-un will likely come out all smiles. that is my prediction. trump i don't see donald as the hugging type. will they embrace? there's a lot of questions that need to be answered. joining us from cambridge. that was the executive director for research. you previously negotiated with north korea during the clinton administration. also joining us now, we want to bring in kevin cirilli. good morning. i will start with

stephen engle there was the chinese side, out of shanghai.ng of anti-china sentiment, let us look at what washington. in treasury secretary, stephen mnuchin, has denied that china is the main target of these emergency laws to protect sensitive information. sources have told bloomberg that the white house wants to declare some chinese tech investment as risk.rity our international editor jodi scheider is here to tell us what exactly it is seen as a defeat mnuchin.en >> but treasury secretary has been trying to be less confrontational on trade issues, particularly with china. as steven noted, he has come out and said, these restrictions are not just about china, we are trying to deal with a trade on an international basis. but of course, various memorandums say differently. months ago said that investment restrictions are targeted against china. on one level to attempt down some of these concerns, to make it about a global issue, but at the same time, it is appearing more and more likely, that these investment restrictions, if they were going t

chief north asia correspondent stephen engle, thank you.erviews by using our interactive function, tv . you can join the conversation by sending instant messages to our team, our guests. check it out at tv . this is bloomberg. ♪ ♪ rishaad: we are back. this is "bloomberg markets." i'm rishaad salamat. haslinda: i'm haslinda amin. bond fund managers are turning skittish in malaysia as investigations are reopened into the scandal, that malaysia's debt is almost 60% higher than previous estimates, prompting some to rethink their investments. our fx and rates reporter joins us. how have bond managers positioned their portfolios to reflect these risks? definitely some who are fleeing the nation's debt, companies like investec, lowering exposure to malaysian bonds, citing fiscal uncertainty in the asian nation. then you have other big players who pimco and bny mellon are cautious on malaysian bonds. haslinda: what are their top concerns with malaysian debt right now? >> there's a myriad of them. one of them is the fiscal side of things. i

stephen engle, north asia correspondent, is in singapore with the latest. stephen? stephen: i'm standing at the venue of that summit that will take place tomorrow morning. really, donald trump just talked about strategic patients. that's a we been having today because it's been a news trickle so far, both sides hunker down and get their ducks in a row before the summit tomorrow. they did have faced to face time. we have the ambassador to the philippines who is also one of the key negotiators with a note -- the north koreans. he did meet face-to-face for about two ours before they adjourned for lunch to hammer out the final details. they did come out of the meeting glum faced. itan't read too much into but donald trump emphasized the attitude will be critical for the summit to be successful. summit, not be just one it might not be a full day. we don't know yet. we do know that the statement from mike pompeo who put out a statement this morning stating what we already know. he said the president and the entire u.s. team are looking forward to tomorrow's summit. had se

david solomon of goldman sachs with our stephen engle in beijing. a vote for prime minister may. sterling weaker. a new goldman sachs, david solomon speaking in beijing. outrage continues over separated children and parents at the mexican border. the senate has one planned, the house another. the president wants to "secure our border." we are live from our world headquarters in new york. i am tom keene in london. this is an interesting brexit vote today. or twoes are down to one parliamentarians. we can't figure out whether theresa may will win this or not. can crash out of the eu or go to parliament, so a different negotiating power theresa may would have after this vote. tom: let's get to first word news in london. >> the trump administration has carried out its threat to leave the united nations human rights council, calling the group of human rights abusers. the u.s. has singled out the council for being biased against israel. prime minister may is refusing to back down before a crucial vote on brexit in parliament today are battling pro-europea

stephen engle reports from beijing. >> the decision to postpone a simultaneous listing in shanghai withg kong i.p.o. could those to list at home. the hong kong i.p.o. is set to the biggest in two years, to aise about $6.1 billion us, it's a considerably shaved down offering that was expected to $10 billion, the company's cfo said there's no time frame domestic part of the lifting. scrapped it iaomi because of dinses with the regulator, xiaomi said it had no csrc. with the nvestors may dispute the valuation, market at up to 23.3 imes forecasted 2019 earnings, making it twice as expensive as tansit, pricier than the biggest chinese internet company. says it deserves it because it sees itself as an e-commerce et and company rather than a lower player, they began to operate last night. look at condition a xiaomi's i.p.o. as part of the series.china ounding partner tells todd mckenzie why he hopes the largest i.p.o. will pave the way deals in the region. > hong kong started a new lifting structure, and xiaomi the first one to file under the rule. that i.p.o. will be for ssful paving the way

stephen engle joins us now for more. what details to be have?t an perspective, updated terms on this. the founder and chairman, not going to be as rich after this ipo as initially expected and all of those flights, that looked to this ipo as being gangbusters. they are scaling it back. was, or the beginning of this week, they decided to temporarily scrapped the china depository receipt listing in shanghai because of various reasons. i will get to that. the valuation now for the ipo is $6.11 billion u.s. instead of the expected $10 billion, and that puts the valuation at 55 to billion -- $55 billion $70 billion. it was expected to be about $100 billion. they are going to price it at $17 and $22 hong kong each, 2.1 8 billion shares, and several investors have been identified including china mobile and qualcomm as the biggest. snapdragon chips are in the phone. each of those companies to nvest $100 million u.s. others include the poly group, china development bank and china merchants bank. the total of the cornerstone investors to invest $500 milli

yvonne: certainly. ,et's bring in stephen engle who is here with me in singapore for the summit. e meeting will take place tuesday at 9:00. is no opportunity for the leaders to back away now. stephen: not a lot happening yet, but today is the warm-up to tomorrow. the schedules have not been released other than there will betweenateral visit president trump and the premised are of singapore. other than that, it will be a lot of prep time. -- the the philippines u.s. abbasid or to the philippines will be leading a conference with northern counter -- northern korea counterparts today. the summit will be held here at the capello hotel. we're at the southernmost part of the asian continent. 9:00 tomorrowd at morning. beaches, peacocks squawking. the police presence will be in full force. it has already started. singapore is saying they are spending 20 million singapore dollars to host this. half of that is coming in the form of security. talk more about the security side of things. stephen: so far this morning, there was not a lot of visible security but there will be a lot of courts t

bloomberg's stephen engle spoke exclusively with david solomon in beijing this week, and asked what theearing from its chinese clients. >> everybody's talking about it, and the implication that this escalated to an all-out trade war there would be implications of market activity, implications on investment, implications both here in china and for u.s. clients. people are watching, people are interested in seeing how this unfolds and everyone is hopeful because this relationship is so important. >> we heard from lloyd blankfein yesterday saying that this is , more negotiating tactics, and that either both sides are not going to be conducting mutual suicides here. >> it's certainly in the interest of both parties to find a constructive solution. lloyd is referring to the fact that we should get a solution of -- over some period. >> how concerned are you that this could spill over into areas like financial services? we know about the big bank reforms allowing banks to have full ownership of their joint ventures. and you a 33% stake would like i'd assume, to get up to 51% now and eventually

and ceo the president david solomon speaking with stephen engle. ,et's get back to elias haddad commonwealthk senior fx strategist. how are central banks looking at trade right now? how do they position themselves with regard to trade and how they can mitigate some of the worst aspects and fallout from this full-blown trade war? that is actually the common theme that essentially came out of the central bank conference in portugal. all of the central bankers, whether jay powell, draghi, kuroda, their main concern at this stage is about escalating trade tension. there hasn't been any hard data showing at this stage it is already starting to negatively impact economic activity, but they are concerned if things really do deteriorate. it is important to remember these tariffs announced by the u.s. and china -- at this stage, the economic impact is fairly negligible, but it is the threat and the threat of more inward looking trade policy that is a major headwind to the global economic activity. rishaad: absolutely, and if you have a lessening of global economic activity, you have a lessening of tr

stephen engle is in beijing. what is the latest? it is going to be a very expensive game of chicken they are playing. stephen: game of chicken is what they are calling it because we have a couple of key dates coming up on the threats coming from the united states. this friday, we are expecting the department of treasury and the united states 10 ounce a list of restrictions on chinese investments. these are likely to target made it coulds 2025 sectors get a little bit more tricky by this friday. this is in addition to the july 6th deadline of the first round of tariffs president trump has mentioned. there is another 60 day review on another $16 billion of chinese goods. on top of that, donald trump's administration has asked to identify another $200 billion worth of goods that could potentially get a 10% of tariffs slapped on them. we are getting into the really heated part of the realization of tariffs that have been threatened. china has vowed to take reciprocal steps. report from a south china morning post out of hong kong saying t

yvonne: thank you, stephen engle, for that wonderful interview.y are, we have teamed up with twitter to launch tictoc at number, the first global news network offered on the media, offering a lot of news reports verified by us. if you are on twitter, sure to follow tictoc. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. kathleen: and i am kathleen hays in new york. johnf this company flannery once to breathe new life into the 126 your old company, my slimming it down and re-focusing around power, renewable energy and aviation. he told bloomberg that ge is being refashioned for the future. yvonne: hong kong billionaire richard lee is said to be laying the groundwork for potential initial public offering of his which is company, backed by swiss right. there are weighing a listing that could take place in a couple of years. the insurance company manages about $27 billion in assets, with 2.7 million customers spread across eight asian markets. reversingfacebook is a policy put in place in january adds. cryptocurrency

as stephen engle's put it, it seemed president trump was more at ease with this north korean dictatorhan his colleagues from thepresident has spoken toi jinping and prince minister out of a -- prime minister shinzo abe. they were confident. the prime minister singa posting on his facebook page, congralating the leaders on those talks and really encouraging that he gave that platform for them to have the talks in singapore. the market reaction is pretty muted. you saw a lot of the stocks that had been outperforming on hopes that inter-korean business fall back today on the cost be. david: bank to -- great to have you with us. we welcome michael o'hanlon, a fellow at the brookings institution where he specializes in u.s. defense strategy and the use of military force. welcome back. you just heard juliette saly say it does not really commit to verifiable and irreversible. tohey know what they will be verifying? have they agreed on what denuclearization means? michael: they definitely have not agreed on that. that will be the last thing to go, in a way. that will be the final disagreement

emily: that was benjamin fuchs speaking with stephen engle.ply chain payment company trade shift is raising $250 million in funding led by goldman sachs. the new round of financing brings total funding to $400 million and values the company at $1.1 billion after they launched a new service nabling block chain finance. they are now offering blockchain-based payment solutions. >> a single product. should be multiple tiers. wwe run a platform to run everything that hab happens in your supply chain. they have to collaborate with third parties. blockchain is a really good fit. they can collaborate and share data. if you have a certificate proving this has been produced in a sustainable way, whatever you want to do, you can send those things on the blockchain and all of those partners can ..ve access to it it allows people to collaborate much more efficiently. emily: the accounts receiveable market is like a $9 trillion market. how much of that could you potentially address? >> it is massive. it is around nine. roughly the same as amazon. out of tha

stephen engle spoke closely with david solomon in beijing this week, and asked what the bank is hearingese claims. ♪ >> everybody's talking about it, and the implication, implications of market activity, implications on investment, implications both here in china and for u.s. clients. people are watching, people are interested in seeing how this unfolds, and everyone is helpful because this relationship is so important. >> have you -- we heard from lloyd blankfein, saying that this is more negotiating tactics, and that either both sides are not going to be conducting legal suicide. >> it's certainly in the interest of both parties to fried a constructive solution. lloyd is referring to the fact that we should get a solution of her some period. >> how concerned are you that this could spillover into areas like financial services? we know about the big bank reforms. you have a 33% stake with -- yo u'd like, i'd assume, to get up to 51%, which is allowed now, and in three years up to 100%. do you think there's a potential? >> we are encouraged by the messages that the leadership has convey

that's stephen engle, our chief north asia correspondent.et's get a first word news now and it's over to haidi. says theutsche bank trade is not over between the u.s. and the raise -- the rest of the world raises the risk of slowing a vibrant u.s. economy. trumps threats to tariffs on $250 billion on chinese goods and a levy on a new car shipment growthut .3-.4% of gdp this year. the eu says it's ready to retaliate to the 20% tariff on cars. there rebuffs trumps a session that -- assertion. it says it will escalate in the coming months. meanwhile, eu officials are in china for high-level trade talks. saudi arabia and russia got what they wanted out of the opec meeting with a deal to increase production. minister energy decided to keep oil prices under control. however, iran says it doesn't believe oil will get waivers from the u.s. under the sanctions reimposed by president trump. >> i believe that president markets doing against fundamentals. against the free market and its not to the benefit of the consumers. price caused by the action. ma

. >> thank you stephen engle. get to the point where sanctions are used -- let's look at the possibilities. >> three economic belt liking the koreas with china and russia. that is how president moon wants transform his northern neighbor. the upgraded infrastructure could help north korea realize the value of its best minimal reserves. roughly 200 essential resources are estimated to be under the ground in the north. of $6er with an excess trillion. among them, gold, oil and the world's single biggest earth deposit. beforeof caution potential investors become giddy with expectation. , outdatedy shortages facilities and other infrastructure obstacles put these nuclear physician rates about 30%. high literacy rates, low wages and is a computer education from elementary school may see north korea become a new asian tiger one day. >> back with the chief economist, i'm just wondering whether the international sanctions export from china. was that enough to bring can to with trump? kim to the table >> yes, that is why ki

kevin cirilli and stephen engle.et's keep the conversation on the summit, joining us is wolfgang piccolo. he is copresident at teneo intelligence. what does china and russia have to do with all of this? not a complacency, but has china given its blessing? >> i think china is trying to be all for. -- alpha. the favored status for china is status quo. russia, there is a feeling they are on the back foot. here is anything happening out of this meeting, we will see a flurry of diplomatic activity involving other countries in the region, after this one, assuming progress. francine: what are the chances of this succeeding? >> it depends what you define as success. francine: how do you define the -- define it? >> very low. it is good for show but the reality is the negotiations takes months to prepare and we do not have months. we should expect something about the peace process, how we can get to a peace deal between north korea and the u.s. the korean war potentially and an indication of what is next, what is the sequencin

emily: that was benjamin fuchs speaking with stephen engle.any trade shift is raising $250 million in funding led by goldman sachs. and psp investments. the new round of financing brings total funding to $400 million and values the company at $1.1 billion, after they launched a new service enabling blockchain finance. a cloud platform for the supply chain, they describe it as sales force for the chain. that is now offering blockchain based payment solutions. we spoke with tradeshift c.e.o. christian lanng. christian: if you think about supply chain, they are very complicated. they have very different partners working on different tiers. what we do is provide our customers with a platform to run everything that happens in their supply chain. for a lot of scenarios, they need to collaborate with third parties or multi-stakeholder ecosystems. for all of those scenarios, we allow them to collaborate, share data. this has been produced in a sustainable way or whatever you want to do, you can send those things to the blockchain and all of the other

let's get more from stephen engle. couple of days ahead in canada. what is thebe overcome?hen you look at the list of things france is unhappy with the united states about, tariffs are just part of the story. your family might be very peaceful, but any family quarrel that i've had oftentimes lead to a deep rifts in trust because the parties involved care, unless you have one family member who doesn't care. so that family quarrel analogy from larry kudlow maybe not ringing to true to some of the to some ofoo true the allies that the united states is distinct itself -- distancing itself from. one of the most outspoken donald against what trump has done as far as that tariffs on steel and aluminum, against the nafta partners, canada and mexico, trudeau has called it insulting. they will call -- talk about nafta as well. they are willing to walk away from these negotia said let's ha bilateral with mexico and a bilateral with canada. it will be interesting, if not devices, thanksgiving dinner there. anna: indeed. he likes to keep things one-on-one in these trade conversations. w

stephen engle right outside the capella hotel.na is not an active participant in this summit and is heavily invested in the outcome. let's turn to tom mackenzie in beijing for a look from this angle. what would be the best result for china's leadership? you well know china has long called for pyongyang and washington to sit down and have talks. of course that is now exactly what is happening. yo saw -- you have thought on that front china would be optimistic in this shift away from the threat of nuclear war we had six months ago or so. there is a key caviar which china will be concerned that pyongyang gets too close to washington, so they want to make sure that is not an outcome that comes to pass. it would be -- weakening of the south korean and u.s. alliance, that is something that may come about in the medium to long-term. weird from the u.s. defense secretary seeing the troop situation would not be discussed at the initial talks. of course it should be pointed out that china will be keen as well to get involved in any economic

let's rejoin stinko -- stephen engle. what can we expect in the next few hours in singapore?at ietails, that want. what important document, what is in that document, and what did they agree upon? i am sure that monday and -- wereis celebrating they cordoba now he is nervous as well. arejapanese and russians asking the same thing. what have they promised each other in that document? two comments he made, we are ready to leave the past behind. the world will see a major change. we are seeing major changes in the world. two days after donald trump is calling the prime minister of , their closest neighbor and ally, we can dishonest and hauling jim gone -- kim jong-un a worthy negotiator, a talented man, and someone he has developed a special bond with. clearly, the world has changed. watched that pivot from the g7 and we spent the weekend comparing images with the shy hot -- shanghai cooperation organization. we wait to see what the next few hours have in store. we're waiting for the details and we see these two gentlemen depart, probably to meet again at another point. trump was

stephen engle has the latest. what do we know so far?er has resigned effective yesterday. to be replacing him and the market is rejoicing as the stock is resuming trade this morning after a weeklong , up asion of the stock much as 15%. it is up 7% and has fallen over the previous two sessions more than a week ago on a thursday and friday. selling of 21%, the biggest two-day drop on record for samsonite, which had nearly doubled over the previous couple of years. on the ceo's fairly aggressive expansion plan and on profitability, but blue orchid capital came out on may 24 that came out with a damning report. they questioned a number of things. related party transactions between samsonite and indian entities controlled by the ceo and family members. as well as a revolving door of auditors of the south asian unit, as well as allegedly concealing slowing growth with debt funded m&a like the purchase in 2016 for 1.8 billion u.s. dollars and also damning to the ceo's character was fraudulent qualifications, said blue orca of his doctorate in b

let's get to stephen engle. he will be in singapore for the summit next week i'm a as am i.n here. are we really going to see any concrete agreement next week? >> it is interesting, as heidi gave the headlines, this chess match that is starting to develop. interesting the different tactics that donald trump is trying to take ahead of the negotiations. learning he is willing to walk away if things do not go well in the opening minutes. aey want pyongyang to give timetable first to surrender their nuclear arsenal, and apparently donald trump has been advised not to offer concessions ahead or at the summit. let's put the onus on pyongyang to make the first move. we also your donald trump is open to offering -- we also hear donald trump is open to a second summit, perhaps as early as the fall. that would be quite significant. some have said that approaches like what other u.s. leaders have done in the past. you can't really go down that path anymore. >> do you go down as far as giving face to what a lot of people have said is the leader of a pariah state? we do not have diplomat

stephen engle. this is why the escalated dispute is coming at the worst possible time. on, we are on bear market watch with the rout in chinese equities set to continue. this is bloomberg. ♪ ♪ this is daybreak asia. i am yvonne man in hong kong. kathleen: i am kathleen hays in new york. peter navarro tried to ease concerns over asian trade policy. he said there are no plans for investment restrictions on china. beijing and brussels are wanting that this could cause a recession. joining me now is larry hathaway. let's start with the news of the day. steve mnuchin is preparing something that could apply specifically to restricting chinese tech investments. peter navarro dials it back. is there some disarray in the white house? always aere is question about who speaks for the white house. bottom one is this, this is about politics. the voice that speaks loudest right now is the voice of the voter. at least those were staunch republicans who supported this president supported now more than ever. perspective, it is difficult. it seems to be playing well where trump team's to

we will get the latest from stephen engle. you have been watching the app, the flight radar. ation geek. app, it is notis a scheduled flight. we are getting reports earlier that kim jong-un was going to beijing today, likely to do brief xi jinping on the summit with donald trump. we are tracking this flight that is heading straight for beijing from pyongyang. un.s not air force it is all speculation. it is not sure that he is on this point, but it would make sense that he would be heading for a third visit with xi jinping before the summit to get their ducks in a row, and now to deep race. yvonne: what does china want to get out of these talks? there were reports earlier that after the singapore summit, perhaps president trump does it really need china to get north korea into any kind of negotiating table anymore. they have a direct link with them. is that the big concern with them? n: i think beijing got a lot out of the summit, even though they were not part of it. they were definitely the hands behind the scene on the north korean side. with a one it a de-escalation of tens

. >> i am stephen engle in singapore. presidats his belief that he can do a deal with kim jong-un. north korea said the pair exchanged frank opinions. this is "bloomberg markets: asia." ♪ straight to the markets , that open in singapore and taipei, lackluster at the moment. we did have movement to the upside for the nikkei, .3%, but singapore and kuala lumpur as investors turning their attention to major central bank decisions. haidi: we didn't have much of a reaction to begin with. maybe disappointment that the cumin decay signed was so vague. sng up how we are into that trifecta of central bank decisions. hang seng up .2%, paring earlier gains. the close. futures looking worse for wear mixed trading session in asia. rishaad: right, let's get to first word news. chancellor merkel saying the united states has the trade surplus when services are included. iscussed topic was at last week's g7 summit, but the president threatened new tariffs on car imports, seen as hitting german makers the hardest. trade surpluses today are still calculated in an d-fashioned way, based only on goods,

stephen engle is in beijing for us and joins us now with the latest.is saying what and why? >> those comments you mentioned about criticizing china and the pledges of openness were a joke, that was coming from america's top diplomat and he was not very diplomatic in his assessment earlier this week. mike pompeo, i'm talking about, the u.s. secretary of state did call those pledges a joke and he has called the economic policies of the chinese government quite predatory. he was quite sharp in his criticism of the chinese. xi jinping, the president in china give a speech yesterday in to manyin the audience foreign business leaders including american business leaders of their chinese operations here. this is what xi jinping had to say. ofwas not quite as critical those barbs from the united states. a little more diplomatic but he said basically all nations should abandon cold war mentality and zero some gains. pretty much alluding to the united states. he says lessons have yet to be learned from the international financial crisis. we are not fully recovere

let's get to stephen engle. he will be at the summit, as will i.t how the this summit -- it seems like it has gone to kind of a fever pitch. there are so many unknown, and we aren't sure which way this is going to go. stephen: it's unlike any other leadership summit. the deliverables are not in place before hand. it could either go this way, or it could go this way. we are getting donald trump overnight saying he doesn't have to prepare for this. it's all about attitude. is probably being facetious, he has prepared, but on the one hand, you have trump saying they've been working and talking with north koreans about signing a peace deal, and in the korean war. the tough part could lead to a walk out on either side, the denuclearization timetable. how hard and fast will the two sides be pushing their various viewpoints? trump says if the talks don't go well, he has a list of 300 or so additional sanctions. >> president trump and chairman kim will discuss security assurances for the dprk, establishing a piece regime and improving relations between our

stephen engle has the latest. now it has been confirmed. how much to we know?tracking was actually -- a great plane that had gone to singapore. maybe it was carrying kim jong-un's bullet proof limousine. not sure. we do know that the state television broadcaster in china has confirmed that kim jong-un will visit beijing today. we are not sure if he's already landed. we do know from other media reports that one plane did land at the beijing airport. there was tighter security and a motorcade that did not have north korean flags. but basically the bottom line is, kim jong-un is going to china for his third, i would assume, meeting with ski jumping to de-brief him on what happened in singapore at the summit. of course, he met see jinping -- sxi jinping twice. once before the summit and another time after donald trump canceled the summit. kim jong-un flew and met xi jingping. this will be the third one. very interesting that beijing is very much a part of the summit. haidi: very much a part of it. we're also learning, no doubt, to beijing's pleasure -- the u. s. an

ramy: let's leave it there, the chief north asia correspondent, stephen engle.t on singapore and north korea as well as taiwan. don't forget our interactive tv function, tv . you can watch us live, catch up on past interviews and dive into any of the security or bloomberg functions we talk about. this is for bloomberg subscribers. check it out. this is bloomberg. ♪ is is bloomberg. ♪ >> this is "daybreak asia." again, just want to recap some of the headlines who were talking about just now saying they are cutting their global airline 2018 profit forecast by 12% to $33.8 billion. compare that to the $38.4 billion it made in december. that crossing the bloomberg terminal moments ago. we are looking ahead to the ceo who we will be having in 35 minutes time. 85 in hong kong. ceo, and what he has to say about the numbers. yvonne: covering the next hour of "daybreak asia." " we talk about how the alliance hosted attract more member airlines and still on aviation we had randy to share the playmakers outlook. this is bloomberg. ♪ retail. under pressure like never be

stephen engle is bringing that to you at 6:00 p.m. tonight, hong kong time. wednesday.dity and courtesy traders cannot say the same. resources resulted in hefty losses from everything to soy -- from soy to steal. let's get more now from the executive director for fx at ubs wealth management. to see you, as always. a raceare just kind of to the bottom when it comes to the commodities complex. where are you watching mostly? i think overall, this has been a confluence of negative events. iearly, chinese trade data, should say, china activity data, was a bit on the weaker side, so that started what was a softer patch in base metals, and when we go over to agriculture, whether issues around the world, not just in south america, but also in russia, china, australia, had pushed speculators to the very long side on the agricultural commodities, particularly grains. if we look at mons in grains. whether it has started to improve a little bit in the u.s., at least in the midwest, i guess the trump trade issues, which clearly are where china has singled out agriculture, one of the

rishaad: that was engle gurria -- angel gurria speaking ahead of the g7 summit. we have stephenegotiator. who worked on the nafta talks. are we now heading into a trade may will have no winners ultimately? say as of today we are not in a trade war, but the danger is escalating. the application of the steel and aluminum tariffs on to the european union, canada and mexico is certainly a very soon if the kent escalation -- very significant escalation. we are certain partners will retaate. at that point, will the u.s. administration retaliate against that retaliation, is the question. rishaad: will they? what is your view on that? stephen: i would have to say that the current administration is arguably the most unpredictable administration in modern american history, so anybody who mays prognostication -- makes prognostications are at their own risk. at thes speculation that end of the day this could be a negotiating tactic, and in fact secretary ross made the comment to the effect that the reason the tariffs will be going into place on canada and mexico, is because there was insuff