paul: the behemoths of u.s. banking sharing more cash to shareholders after all 18 past their annual stress tests. this is bloomberg. ♪ paul: we are counting down to asia's first major market open this morning. the g20 is underway and osaka. futures out of japan are looking weaker by one third of 1% after a positive day on u.s. equity markets. shery: this is "bloomberg daybreak: asia." i'm shery on in new york. paul: i'm paul allen in sydney. investors are weighing the latest comments from central banks. the fed likely to cut just rates in july. that san francisco fed president says it is too early to know whether they should cut rates, or by how much. >> the data shows significant weakening, that would call for different action as opposed to the data saying we are slowing. it is too early from my perspective to know whether we should use the tool at all and what magnitude we should apply. paul: shift to dovish policy and easier money is creating challenges for allocating capital. jay pelosky has experience in th

the u.s. leader insisted his approach has tightened the pressure on beijing. >> tariffs are a beautiful thing when you're the piggy bank and you have all the money they want all our money. china is working out because they're getting absolutely decimated by companies leaving china, going to other countries including our own because they don't want to pay the tariffs, and china will, in my opinion, based on a lot of facts and a lot of knowledge, china's going to make a deal because they're going to have to make a deal. >> so despite the pretty strong words coming out of the u.s. yesterday, we had a strong session from wall street actually it's sixth positive winning streak in a row. it's posting its best month. yes, a lot of narrative about tariffs, mexican tariffs and ultimately stocks are in a good place. there's a lot of green on the board. the heat map is mostly pointing to positive territory. you can see the broader positive index is up 0.6% and we're only an hour into trading strong footin

the u.s. china trade war likely to take president over everything -- precedent over everything, including the bilaterals between president xi and trump. the iran issue taking center stage as key players meet, including president putin and president erdogan of turkey. the markets are looking for some sort of troops that -- sort of truce that we got out of the last g20 meeting at buenos aires. there was a 90 day truce between president xi and trump. we are not there yet on this impasse between the u.s. and china. what we got over the last 34 hours is u.s. treasury secretary stephen mnuchin saying we are deal, howeveret a we have heard donald trump walking that back a little bit, saying maybe my plan b, connecting -- enacting an additional round of $300 billion worth of tariffs on good, my plan b, somewhat walking back what stephen mnuchin siad in being 90% there -- said in being 90% there. getting the last 10 yards to the end zone is always the most difficult. shery: when it comes to iran and oth

the u.s. s outlined a potential peace plan for the middle east. president trump's son-in-law jared kushner released a $15 billionblueprint -- $50 blueprint. the plan comes ahead of a seminar in bahrain. the palestinians are boycotting the event and codecs say question or's plan -- jared kushner's plan could flop and says nothing to resolve political troubles. north korea released a photo of what it says is kim jong-un reading a letter from president trump. state media describes the tone of the message as excellent and that kim would take the content seriously. mike pompeo confirmed the letter was sent and said the administration is ready to restart talks. there has been little contact between the two since they met in hanoi in february. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. president trump says the u.s. will impose major new sanctions on iran on monday after he

the u.s. accusing iran of attacks. american officials release video they say shows iran was involved in attacks on oil tankers in the gulf of oman. that adds tensions to the middle east -- for oil. nd sounding the alarm's that trade wars are affecting their bottom line. billboard on how to play -- bill bordeaux on how to address key tensions at the upcoming summits. an interesting session out there, because we have some positive or benign u.s. economic data that seems to be upsetting stocks today. we do have tech leading the decline, energy weak on the day, and the chipmakers standout today. broadcom down 6% in the session as it cuts its four-year sales outlook. part of the reason for this mix of emotion on the markets is this. retail sales in may were stronger-than-expected, .5% was the gain, and that shows the economy is not slowing as many had feared in the second quarter, but it changed some of the betting the fed will do on its rate cuts. an interesting contradiction on a relatively good piece of economic data. von

exports to the u.s. . to its northern neighbor the mexican more than 2 percent of the united states and mexico struck a deal on migration a trade war mexico. and also. trafficking in the country more efficient. the production lines continue to roll in mexico and cars continue to make their way into the u.s. without import tariffs in tow workers are relieved many had feared that shifts would be cut putting their jobs in danger but for now at least that's off the table . u.s. president donald trump sent out a tweet shortly before the ultimatum expired saying mexico had agreed to take strong measures to prevent illegal migration into the u.s. and to better protect the borders of its own country with the newly instated mexican national guard the republican celebrated this as a victory for the president on the sunday politics shows and now they have their sights set on china i think the biggest lesson here probably the biggest message here is now not to mexico but to china that the president is clearly willing t

the u.s. are moving up in the eurozone and asia le eyes are e.i.'s are rising. would be a reason stock markets have trouble closing the year, not a surly down but a headwind like 2018. joe: talk to us about positioning. we got the move quarter end. prior to may it was a constant meme or something people were saying underinvested or got caught offsides because of the selloff and playing catch-up. how are people viewing this because it seems mixed, people long, hedging. what is the stance? cameron: it feels on the equities side, trade, people haven't got it. the tariffs shocks of last month stared -- scared people because it was reminiscent of a fourth quarter of last year which obviously fed on itself throughout the quarter. the way it has traded this month has been pretty -- it has been impressive and been pretty relentless. some of the survey suggests people are airing on the side of caution. you have to take that at face value given the price action. fixed income, the opposite. people have fi

what the u.s. is getting in return according to the president apparently is china's pledge to buy a tremendous amount, those are the president's words, of food and agricultural product. so we're seeing the outlines of what got the talks back on track. a lot of concessions from the u.s. i would say a busy news conference, but those were certainly two very important points from my perspective listening to the president. >> there were a lot of headlines coming out of this news conference. you started with his comments on russia. mr. trump's words essentially saying, quote, i said it, i said the words with regards to russian election meddling. i want to remind our viewers exactly what happened during that exchange. we have a sound bite where the president spoke on it. let's play that now. >> i did say it. we had a discussion. we had a great -- actually, we had a great discussion. president putin and myself. i thought it was a tremendous discussion. i did say it. and i did discuss it a little bit after t

the u.s. on friday. it is a day where people receive house prices for the month of may. that will factor into australia's decision-making. be -- kospi. cost despite its exposure to the trade war. observing the queen's birthday. this get a check on first word news with su keenan. su: china's defense minister says the military will take action to defend beijing's claims over taiwan and the south china sea. the minister defended china's right to build limited defense facilities in the contested south china sea. he issued a warning against external forces, promoting the idea of independence for taiwan. must be and will be unified. any excuse notbe to do so? the chinese military has no choice but to fight at all costs for national unity. germany come to the leader of angela merkel's coalition is stepping down. backing, after losing following a big defeat in the elections. prompt ature could party exit, forcing angela merkel to form an alliance or face a snap election. u.s. secretary of state mark --

the u.s. and canada are burying the hatchet at least when it comes to free trade after months of a rocky relationship between u.s. president donald trump and canadian prime minister justin trudeau the 2 countries presented a united front on thursday in pushing a still an ratified north american free trade deal. time heals apparently just a year ago u.s. president donald trump described his canadian counterpart is very dishonest and weak now he's full of praise the 2 have agreed that canada will export rare earths to the u.s. essential for computers and military technologies that will make the us less dependent on china president xi jinping recently hinted he would use his country's dominant position in the rare earth sector as leverage in the trade dispute with the u.s. something just in trudeau is well aware of. we discussed some of the challenges that china is presenting not just to canada but 2 different sectors of the global economy and we certainly agree that we will continue to work toget

the graves of u.s. ldiers behind him on the somber 75th an verse rich t anniversary of the d-day invasion, calling pelosi a disgrace to herself and her family. >> i think she is a disx-rays. i don't think that she is a talented person. she is a nasty, vindictive portable person. i call her nervous nancy. she is a disaster. >> reporter: trump responding to pelosi's private comments in the capitol where she said she doesn't want to see trump impeached, she wants him in prison. >> she made a statement horrible vicio vicious -- >> while you were overseas. >> while you wereoff seas. >> reporter: but pelosi actually avoided criticizing the president publicly. behind the scenes, the debate over whether to impeach the president has taken a new turn. cnn has learned jerry nadler is pressing pelosi to open up an impeachment inquiry arguing that it would bolster the democrats' battles with the trump administration in course. in the same meeting where pelosi said she wanted trump in prison, nadler said an impeachmen

the u.s. and china are talking trade once again as president trump throws huawei a bone that they can zoom to -- resume sales. and the president is the first u.s. leader to set foot inside north korea, saying it is an honor to cross the line. and goodbye g20 and time for summer davos. we are live at the world economic forum at this hour. shery: let's get you started with a quick check of the markets. u.s. futures rallying about 1% at the moment, this, after the s&p 500 saw its best month since january. we have optimism over potential easing trade tensions between china and the u.s., not to mention the huge photo op president trump got at the dmz meeting with kim jong-un. take a look at asian futures. we are continuing to see a risk on moves ahead of trading. if we can switch up the boards, futures, nikkei futures up 1.5% as we get the japanese yen weakening for a fourth consecutive session. great asets not doing we get risk on sentiment. as korea starts trading on so-called peace dogs as we saw

the u.s. is describing this is not "here is our evidence. this is bit of financing that links the ron -- iran to it," more an absence of evidence that it could be anything other than iran. you can take that however you want to take that, but it is sort of like who else could it this point? it is a critical shipping lane where a ton of global traffic that is going between asia and europe has to go. as you can see in the graphic on your screen, a neighborhood that has a bit of conflict to it. iran on one side, saudi arabia and the emirates on another side, and so, there's been some tension there. this is an area that the u.s. has said very clearly that it was going to use its resources to ensure that shipping lanes stayed open. shery: there was some hope that the u.s. and iran might talk. prime minister abe trying to build the diplomatic bridge. how did that pan out? derek: not good. not good at all. in fact, both iran and the up verytates have set high levels that there no time for talks right n

the u.s. and mexico failed to reach agreements. tariff are still set for monday. fiat scrapped its planned merger with renault after a delay to decision. however there is still hope for billing as it chases a big deal in china. the escalating trade war may force negotiations off course. shery: let's check our markets closed in the wednesday session in the u.s.. another day of gains with the s&p 500 above 2800. there was a lot of optimism over a potential deal with mexico and those u.s. tariff set to take effect june 10. we did not see a deal, however we heard from the foreign secretary of mexico he remains optimistic about negotiations tomorrow. we have seen most sectors on the s&p 500 gained ground. the only loser was energy, wti plunged. u.s. supplies jumping the most in 30 years. s&p futures down 3/10 of 1%. let's see how we are setting up for asia. paul: nikkei futures are fluctuating, but stabilizing. trading out of chicago still lower. policy futures pointing higher. it will be -- aussie

., the u.s. markets, u.s. companies. china, they have implemented fiscal easing, monetary easing, some countries have stood to benefit from this. we're talking about southeast asian economies. for you as an investor, do you see that as an opportunity to start thinking about alternative sources of supply chain and diverting your attention to other countries that could benefit from this? >> i'm just back from southeast asia you get a different feeling there. there's hope that we can have some of the supply chain put back towards vietnam or malaysia from china realistically the danger is if you shift the supply chain, who is to say tariffs won't be applied to these countries the bigger issue is not that there's some winners here, but the whole concept is a bad thing for global growth, for global trade, business investment if you don't know where your supply chain will be or likely to be, you will postpone that business investment. that will slow growth, it will slow investment and productivity that's

the u.s. secretary of state's mike has been in switzerland and germany to push washington's policy against iran there a shop decisions start shop divisions not least over the 2015 nuclear agreement backed by the e.u. which the u.s. pulled out of last year and as dominant came reports from berlin mike pompei also sounded a warning over doing business with chinese tech giant while way. it was a meeting of strategic allies in berlin a chance for a show of unity at least in public and an opportunity to concentrate on apparently shared policy objectives notably iran but on many people's minds was the dispute between the u.s. and germany over the nuclear deal agreed with the iranians in 2015 but rejected by president donald trump in 28. also when will the world is in great restlessness especially the issue of iran and how we prevent the country coming into ownership of nuclear weapons also how we prevent other aggressive actions from iraq to win this and yet germany has joined forces with britain and

and the u.s. since president trump took office. she says london and washington are at odds over several issues including china, iran, and climate change. the president faced a backlash from u.k. lawmakers when he proposed assets for u.s. firms to the u.k. national health service should be in future trade talks. but he later backtracked on that suggestion. says he hopesent to reach a deal with the u.s. nextwould avert tariffs week. the trumpet ministration and a duties on all imports from mexico unless the government tackles illegal migration to america. the president hopes the two sides will make a deal. president trump says the initial 5% tariffs will go ahead. one man has been arrested after a mass shooting in the northern australian city of darwin. police say he was on parole. motiveve not revealed a but have ruled out terrorism. four people were killed and one wounded in an hour-long standoff. it is the third mass shooting since the tough gun laws following the killing of 35 people in 1996. struggle tos may coax people back on t

i think the u.s. as well. the u.s. n the supply chain which china is the center but which goes through many countries. you look at the more complicated and complex products we use, no one wants to see this devolve into trading blocs. some of the fears in washington is if the one belt, one road becomes as influential as china wants it to be and many people think it has the opportunity to be, you might see trade blocs emerge and the u.s. would be hard-pressed without being part of the tpp or having anything on offer now as an alternative to come up with something attractive to potential partners. small countries don't want to become in the middle but i don't think big ones in either area china doesn't want to see a lot of its markets go away. this is the best market for china is the united states. it doesn't want to be locked out which is why they haven't walked away from any of the negotiations even given activities and policies of the truck administration we have been talking about. you expect china to blink first event

the u.s. could impair the national health service by increasing the involvement of private american companies in the u.k. public-sector. a swedish court ruled wikileaks founder julian assange doesn't need to be extradited as part of a rape investigation, but should be questioned in the u.k. julian assange denies wrongdoing. he was arrested in london after seeking political asylum at the ecuadorian embassy. he is fighting extradition to the u.s. on charges of publishing secret documents. the u.s. and mexico have begun talks in washington following president trump's threat of tariffs. duties ond putting all imports from mexico if it doesn't try to stop illegal immigrants crossing the u.s. border. mexico says tariffs could cause severe financial and economic hardship and may hurt the government's attempt to stem the movements of migrants. global news, 24 hours a day, on air and onto talk on twitter, powered by more than 2700 journalists come on jessica summers. this is bloomberg. shery: reportedly

vonnie: the u.s. department is demanding that t-mobile and sprint lay the groundwork for a new wireless carrier, a fourth with its own network, as a condition to clearing their merger. i am speechless. merging t-mobile and sprint would take away a fourth, but leaving sprint out on its own, it is not clear it would survive. how would any fourth survive? >> i think what the justice department is looking at is trying to preserve some form of competition, and going from four to three might obliterate some of that. so they are saying maybe you can spin out the spring brand and give it -- that sprint brand and give it its own network. we are not sure how the structure would work. but what they want is to preserve another brand in the markets. vonnie: amazon is interested in buying prepaid phone service boost from t-mobile and sprint, according to reuters. it would be a wholesale deal that would give amazon access to t-mobile's wireless network for at least six years. if t-mobile and sprint are allowed to com

down the u.s. drone but you ran on the 20th of june these developments risk miscalculation and conflict we call for deescalation and dialogue with respect for international iran must understand that these attacks are unacceptable it's time for the world to join us in saying so our policy. means an economic and diplomatic effort to bring iran back to the negotiating table iran should as i said 2 weeks ago need diplomacy with diplomacy. so calls for diplomacy there but iran's us ambassador said the atmosphere was not right for dialogue to happen between tehran and washington you cannot start a dialogue with somebody who is threatening you who is intimidating you today you just witness that the united states employs another sets a set of sanctions against iran how can be a start a dialogue is somebody who's trying maybe preoccupation. is to put more sanctions on iran saw that the atmosphere of such a dialogue does is not ready so more sanctions a no dialogue between iran and the u.s. spot talks concern

we need to see the u.s. back to serious negotiations and show that they are willing to reduce the tariff war. otherwise, the recovery we have seen will not last, regardless of how dovish jerome powell sounds. they are pricing in a rate cut. is that likely to change echoes -- change? mark: that gives them the input to us to stick with that. to stick with that. on monday, we were close to pricing in three interest rate cuts over the next 12 months, which is amazing considering the last thing the fed did was raise rates. the markets are providing a message and powell is open to listening to the message. in january, he surprised some people by saying he was ready to take a pause a couple weeks after the fed raised rates. we had a huge selloff in the s&p 500 in may and he is starting to open the doors towards a possible rate cut although he hasn't explicitly said that is where he is going. some people will be encouraged that they are doing the right thing by pushing the interest rate curve lower. there are lots of

the u.s. releases durable goods numbers for the month of april. wednesday, we get market, services and composite pmi's. thursday, the ecb's latest rate decision, and president trump will be in normandy to commemorate the 75th anniversary of d-day. and finally, friday is jobs day. and theresa may will be stepping down as conservative party leader, as part of the transition going on in the u.k. leadership. we are joined by gina martin adams and martin schenker. let us start with the. china white paper that came out of the weekend. the chinese government saying -- it is foreseeable that the latest tariff hikes are far from resolving issues and will only make things worse on all sides. the chinese government reject the idea of threats of a turned rejects the idea that a trade war will ever resolve any issues. and trump responded that he has china right where they want them. this does not seem to be moving in the right direction. we can talk about the end of the month g20 meeting between president x

the u.s. ot ready to make a deal with china. that is driving investors into the 10 year treasuries, the section of the curve moving today. tochina could be gearing up use its dominance of rare earths in a trade war with the u.s., according to commentary in china, including from the state planning agency. >> we had him saying china isn't going to let the u.s. use the products it makes from its rare earths to contain china. we had commentary in the people's daily in the global times echoing that same line. no doubt about the fact that china is sending a signal that it is ready and willing to use its rare earths in the trade war. obviously that would be a nuclear option, just like what the u.s. has done with huawei. dominance could be devastating if beijing pushes forward with threats to use the metals in the trade war. the u.s. gets 80% of its rare earths supply from china, used in everything from cars, dish washers. how much does this the u.s. and china? >> the big impact will be on the u.s.. th

the japanese u.s. e issues probably off to the sidelines a bit because there will be an election coming up. right now the main emphasis is on china-u.s. and the face-to-face meeting we will get on saturday. how optimistic are you we will be able to find a path forward here at g20? yorizumi: i am cautiously optimistic about the results of these bilateral talks between mr. xi jinping and mr. trump. what is behind that optimism? yorizumi: the business community of the world is very much escalation ofis trade war's and even the u.s. business community, when there was a public hearing in washington dc, more than half of the members who have been invited to this hearing, they express their concerns about this trade war. half of northern american enterprise firms, asia, theyn east also expressed their concerns. says ihen donald trump will go with plan b because the u.s. economy is going well, i seem to be getting support i need for reelection. we will slap on these additional tariffs. they might not be 25%, th

and another 10 candidates vying to become the u.s. democratic presidential nominee are about to take to the stage for a debate in miami come to harrisburg and saunders and front runner joe biden are among various taking pops. well let's get more now on our top story the new release testimony by former u.s. secretary of state rex tillerson he described being blindsided when key arab allies imposed a land sea and air blockade on castle also a key u.s. ally to listen added he was not aware of a reported meeting between the and the leaders of saudi arabia and the u.a.e. just one month before the blockade was imposed to listen also confirms there was a lot of communication between questioner and the saudi crown prince and that question often traveled to the middle east without consulting us embassies he said he raised the issue with krishna but nothing much changed after well let's speak to john schon who is the executive director of the arab center of washington and he joins us now via skype from washington d.c. now to listen describe the

the u.s. supreme court was them better of a pickle when trying to decide whether trademarks can be issued if the name of a brand how shall we say of us or us been p.g. 13 the court heard the case of a clothing 7 company called after you see t. which fought for a trademark the supreme court decided that at a time when free speech is under attack it is especially important for the court to remain firm on the principle that the 1st amendment does not tolerate viewpoint discrimination. but it was justice roberts who won the day when he realized while making his own argument about worrying about kids and the power of the trademark answered itself take a listen. but it is going to be on people walking through the mall and you know for parents who are trying to teach their children not to use those kinds of words we're going to look at that and say well look at that and then you know we're going to trademark so you can say well it's registered trademark we want. that's right most kids don't really kno

the u.s. irly, and it formed the basis of the relationship between the powers after world war ii. officials say pulling out of the treaty is highly unlikely. global news, 24 hours a day, on air and at @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thanks so much. coming up on the show, the trump administration slaps sanctions on the supreme leader of iran, further raising the pressure on the islamic republic. iran says the move means the diplomatic powers closed forever. we are live in toronto. this is bloomberg. ♪ ♪ this is "bloomberg daybreak: europe." >> let's get a check of the markets. offdly, we are seeing risk right across the screen in terms of asian equities, gold is still on the tear, well above 14,000 on the six year high. the yen is also rising to its strongest since january. you have the geopolitical risk i had at the g20, and still contemplating the fed. >> and what is happening with the dollar? is the dolla

the pressure from the u.s. in terms of tariffs and i think that right now there's not a lot of room for agree in the immediate future so i think the real effort here is going to be to try to solve a few things on the side where they can build up a little bit of trust and momentum and then come back on the working level and try to solve some of these bigger problems although i'm not optimistic and mason as we've just had from kennedy today all eyes are likely to be on the meeting between trump and pearson in about 3 hours or so how is that dynamic changed since the last 20. well the you know one of the major things of course is the report has come out and you know obviously the putin trump relationship has always had that in the background in some ways i think that has. been taken off the table and. i think will probably feel little bit freer to act with putin as you would not have earlier when the motor report had not been released so i think that's when things are their personal data and dynamic i think will ch

u.s. claims that it was behind to tanker explosions in the gulf of amman the u.s. released video to back up its claims but germany said it was inconclusive the u.k. says it's almost certain a branch of the iranian military was involved speaking on fox news the u.s. president donald trump called iran a quote nation of terra. we were being very tough on sanctions. when i came into office so they were a absolute terror they're a nation of terror and they've changed a lot since i've been president i can tell you they were unstoppable and now they're in deep deep trouble but they're not going to be closing it it's not going to be even slow zigzag going to be close to long and they know it and they've been told in very strong terms and we want to get them back to the table if they want to go back yeah i'm ready when they are saudi state media reporting airstrikes against yemeni targets by the saudi u.a.e. led coalition according to the report the strikes hit the military targets and air defense systems in the capital city sanaa earlier a military spokesman for yemen's who

they kept the u.s. it by for the next hour but then disaster struck the referee awarded another penalty when been he nieto to see a court rise lavelle contact seemed minimal but even after a v.a.r. check she stuck by her decision or peano grabbed the gift with both hands. hard luck for spain but the usa march on to set up a quarterfinal with hosts france. so too soft penalties there helping the u.s. through hardly the stuff a few future champions i would say or am i being too harsh no i think you pretty spot on that this was not a call for the formats that we expect from the us the and the champions. but as as we say from champions i still can win games when they're not of their best and that's what we saw there are concerns from this match mainly revolving around the coach joe ellis she made some bizarre person no choices she left alex morgan in the starting line up even though she was 100 percent fit she could have replaced it with kali void another woke last record but she didn't and she also left one

the u.s. and would prefer that there is some negotiationsnal and all the other countries in the region as well as europe. take a hitaw oil earlier in the session after the president question in a tweet by the u.s. was protecting shipping in the strait of hormuz. what was that about? a recurring theme for the president. ,e has question other alliances european countries and japan and why they're not pay more for their defense. the state department came out later and said they want to create what they call a sentinel program that would have other ships from other nations equipped with cameras to monitor tankers and to document actions by the iranians in the strait of hormuz. toit's not quite a return the tanker wars of the 1980's, nor is it a complete withdrawal of the u.s. or pullback by the u.s. in that region. they want to get more eyes on iran and what they are doing as well as what is going on with the tanker traffic. joe, thanks for joining us. still to come, more on the u.s. sanctions and

the u.s. and russia and china are strained that's us from the both of them not between russia and china so when you look at this situation china and russia are now reacting for china of course we know about this trade war that's going on and it just seems to be getting worse china has actually gone so far as to call the u.s. an economic terrorist so yeah that those are pretty hard words and of course for good reason we're talking about hundreds of billions of dollars in terror of between the 2 nations instigated by the u.s. with russia there's those controversial tariffs i should say sanctions as well that are ongoing from the united states so now these 2 countries are saying hey let's strengthen our relationship work huge were massive were in the top 3 arguably i'd say that they are that they should basically become what they can become economically together now these 2 organizations since i should say countries since 2013 have met nearly 30 times and when i say they have met i mean president

was investigated by the u.s. drug enforcement administration in 2013 the documents were introduced in pretrial motions in the case of the president's brother tony hernandez who was charged with importing tons of cocaine into the united states prosecutors placed in the record in july 2015 petition to the court for access to e-mail account information from the president his sister and key political allies the document says he can't use it for suspected by the d.e.a.'s quote large scale drug trafficking and money laundering activities relating to the importation of cocaine into the united states . president clinton's took to power for a 2nd term after claiming a new era when in a highly suspect 27 june election that the organization of american states said was plagued by apparent fraud. it's been a volatile week as markets reacted to the increasingly hostile landscape but some markets did better than others let's start off in moscow with the molex the most was up again this week for the month the molex come 4.3 perce

the u.s. secretary of state continues his middle east tour as the state department releases a joint statement with saudi arabia britain and the usa a blaming iran for destabilizing the region. over on come on santa maria and this is the world news from al-jazeera russia saying it will help iran there resist any new american measures but has a top diplomat until risk while he's visiting israel iran under discussion there. was it was supposed to be a humanitarian corridor but on the ground a very different story for the people of syria. you can actually. create very realistic videos of someone saying things that that person never said and we'll take you inside the world of deep fights where you never quite sure what's real and what's not. so within the last half hour the u.s. version. the u.a.e. and saudi arabia have released a joint statement as they try to pile yet more pressure on iran blaming the islamic republic for destabilizing the whole gulf region it comes as donald trump prepares new sa

the d from the u.s.n economies across the board, bill, really put a damper on the outlook for crude oil and gasoline and diesel fuel demand as we look forward. you have korea flirting with going into recession and south korea, that is. japan can't get out of its own way and all of the rtim export numbers really disappointing and a month in and month out for china, japan and south korea and german too, is the other big loser because thoos the biggest market, the germans and all of that are the key demand centers are taking the biggest hits from this. >> it comes when iran has sanctions on it so weir not seeing oil from that part of the world and in addition to tt, we have venezuela which is in a political crisis. so it's skiekind of a interesti juxtaposition. >> there is a complacency in the oil market right now. e differencemaker has been theat united ' rise to become the number one oil producer in the world. our 2 million barrels a day is most acting like a firewall over hideously frightening developmen

the defense team says the u.s. case against her is lyrically motivated and canada abused her rights when she was detained and interrogated. global central banks say they are monitoring issues affecting the world's economy and will react as necessary. john williams says the outlook for the u.s. remains solid but andowledged risks arising there are expectations that rates will come down. he stopped short of endorsing a cut but reinforced the openness and flexibility that jerome powell signaled this week. ,> in the pre-2000 era inflation was a major concern for the public. will always be vigilant about inflation after too high, it is inflation that is too low that is the more pleasant problem today. jessica: as the euro outperformed most major peers after the ecb expressed optimism in the economy and said it would act as necessary to support growth, mario draghi extended the bank's pledge to keep interest rates at record lows while exploring how to offer being smart cheap cash. highest --uched its global news, 24 hours

the u.s. ship was at fault, but these and other manuals released from the u.s. navy appear to show otherwise. cnn's barbara starr is at the pentagon, first to obtain these pictures. what do we know this morning? >> good morning. we're going to keep that video up so all of our viewers can look at it and see what is happening there. this video is very telling, according to the u.s. navy, because it shows a wake of the water behind and on the side, if you will, of the russian ship as it makes its approach to the u.s. navy ship which is clearly in front of it. you see that wake. that is an indicator of the russian ship moving at high speed. there are other images that show it with that wake showing it made a steep turn towards the u.s. navy war ship. now, it came according to the navy within 50 to 100 feet of the u.s. ship. you can look at this video and you can see the u.s. sailors can almost reach out and touch the deck of the russian ship. that's how close this is. and remember both ships are mo

with the u.s. cing a potential military conflict with iran, the senate republican leader says it is no time to abandon a key regional ally. whether we will lash out at an imperfect partner and undercut our own efforts to ,uild cooperation, check iran and achieve important goals. our weather we will keep our imperfect partners close and use our influence. reporter: for the majority senators, the response was to punish the world's largest arms importer. it was in protest over the killing of jamal khashoggi. so blind to the malign influence of saudi arabia that we just give money and weapons to anybody regardless of what they do? you can chop up a dissident? you can cut them into pieces with a bone saw and we will still give you weapons? reporter: it was also a protest over the killing of civilians by the saudi led military coalition using american weapons in the war on human -- in yemen. aret is our bombs that dropping on those civilians. we cannot morally continue to support that. not ber: the vote m

the u.s. 10 year yield. that rally that we saw a really reversing today. up by seven basis points. now at 2.41%. you can see yields are down by 18 basis points over the past six days, the first time in six days they are going higher. we are seeing those rate-incident areas to react as you would expect -- rate-sensitive areas to react as you would expect. real estate and utilities lower, each by 1%. they are the only two sectors in the red in the s&p 500 today. finally, looking at individual movers. lyft moving in different directions today. period over for the underwriters on the uber ipo. ore of them giving a buy equivalent rating. lyft, many preferring uber. vonnie: jay powell and the central bank sponsoring a conference as part of the 2019 review of its monetary strategy. powell spoke this morning. michael mckee was there. he immediately veered off script to address this escalating trade rhetoric. the fed is the unusual situation of wanting to stay on hold but unable to ignore the fact that

and the u.s. if the u.k. union, he insists that a substantial trade deal lies around the corner is it really possible that a u.s., u.k. enhanced trading relationship could offset the u.k. leaving the e.u. and what that means for the u.k.? >> no, it's absolutely impossible trade is a function of many things but above all the size of an economy and the distance between the two trading partners the u.k. exports, i think, something like 18% of its exports to the united states and 45% to the e.u., and there's a simple reason for that the first reason is proximity, the second reason is that the u.k. is integrated into the e.u. economy. nothing like that is going to happen with the u.s. >> and perhaps shifting gears to the u.s. and mexico trade dispute. as we just heard there in terms of support from congress for this move, the republicans, the senate republicans have warned that they may not back president trump here, and china in contrast was unique in that it did have -- president trump did have bipartisan suppor

what is the u.s. administrations before those surrounding the president's beef with iran why is iran a line actor in the region according to those in the u.s. administration when saudi arabia and the u.a.e. are not. well you can see that from to past 4 decades and you can see that since the islamic revolution. iran did not like to have a very good relationship with the united states and that is somehow. dipping down in the history of iran that you saw that there was a military coup or somehow and organized by the cia much earlier and. what do we see that we see that in the past 4 decades there was only animosity and iran did not show and also us in the u.s. did not show. good faces to each other actually since 1079 since 1980 you at united states imposed crippling sanctions against iran and iran also itself somehow self isolated itself from the international economy. that being said i think the only chance that united states could convince iran to come to the negotiation table is to give something to i

tom: the u.s. manages its own -- ren: the u.s. manages its own companies. the u.s. al police. they can't manage the whole world. the rest of the world decides whether they should work with us based on their business interests and decisions. if some companies don't want to work with us, it is like a whole in the airplane. we are working to fix the hole, but the airplane is still able to fly. of the chips we have been using, half are from u.s. companies and half we produce ourselves. if the u.s. imposes further restrictions on us, we will reduce our purchases from the u.s. and use our own chips. if american companies have permission from washington to sell to us, we will continue to buy from them. tom: how much damage do you expect to be felt in the consumer division, smartphones and laptops, which depend on u.s. chips and software? ren: we might miss our expected growth target, but we are still growing. being able to grow in the toughest battle environment reflects how great we are. tom: do the actions the u.s. has taken mean you will have to ramp up that r&d spending

forum in the wake of u.s. economic pressure correspondent alex hello to analyze what this means for the world economy going forward this meeting comes as china is facing the threat of an economic slowdown professor richard walters on hand to analyze the latest risk facing the world's 2nd largest economy and finally with a shaky bridge ahead market central banks are beginning to ramp up ward. of euro pacific taken why the nations are stockpiling the precious metals. today let's go and. an intersection of political and economic some intrigue leads our global report today as the presidents of russia and china meet in moscow before the the it's and these st petersburg economic forum president xi jinping talks with his russian counterpart vladimir putin kick off a 3 day state visit that also commemorates their 70th anniversary of the establishment of diplomatic relations but you leaders will sign economic cooperation agreements on issues including finance and energy in 2018 trade between train and russia grew by 25

and the u.s. senate has backed a resolution to block the sale of weapons to saudi arabia but today's vote which is only the 1st of $22.00 resolutions. well more on top story a white house correspondent can be how could it be listening at a pinch couldn't briefly understand committee about the u.s. drone that's been shot down by iran what have you been hearing. yeah there is so much going on right now with regard to this iran story not only the lines that you've just talked about with the u.s. president the oval office but also coming from the pentagon a briefing that was by audio on the telephone from general joseph stella the commander of central command from the allergy to air base in qatar and he was asked about this he was not taking any questions instead he just gave a statement arguing once again trying to counter the lines coming from iran that in fact this was a surveillance aircraft that was shot shot down in iranian airspace disputing that in this statement saying this was international a