tom mackenzie?sed his denial of russian election meddling after widespread backlash, including from members of his own party. trump now claims he misspoke one word during his news conference with president putin in helsinki. the clarification came more than 24 hours after those comments from which he has not backed away in several media interviews. >> i realized there is a need for some clarification. obvious, it would be but i would like to clarify, just in case it wasn't. in a key sentence in my remarks, i said the word would instead of wouldn't. the sentence should have been, i don't see any reason why it wouldn't be russia. kong exchange will be able to buy stocks with weighted voting rights. it is agreed with the shanghai exchange to set up a working group to form rules on the new adjustment as soon as possible. we did voting shares were excluded on monday. e.u. nations are being told to brexit.for a no-deal the daily telegraph story appears on the day the new u.k. brexit secretary visits bruss

emily: that was jenny lee speaking to tom mackenzie in our china venture series. coming up, we will hear from uber's chief legal officer on what it is like to have one of the most challenging jobs in silicon valley. "bloomberg technology" is live streaming on twitter. be sure to follow our breaking news network, tictoc, on twitter. this is bloomberg. ♪

here is tom mackenzie.t trump has attacked the fed rate policy, a break with white house tradition of avoiding comments on monetary policy to respect the independence of the central bank. told cnbc he is not happy the fed is raising rates and potentially slowing the u.s. economy. rates fives raised times since the president took office in january last year. higher after saudi arabia pledge not to flood the market to bring down prices. step upaid it would supply and opec will maintain production to suit customer's needs. brent crude has fallen this month as the escalating u.s.-china trade were triggers concern about renewed oversupply. indian stocks fell a second day ahead of a no-confidence motion in the prime minister narendra modi. his ruling party has faced challenges after a smooth first couple of years in power. it won in december with a wafer thin majority. crucial elections in other states led to the failure to form a government in may. a korean companies claim to have found a sunken russian warship

i am tom mackenzie, this is bloomberg.e today, generally speaking for equity markets in this part of the world. sophie: positive day, indeed. spi adding over 1% in singapore. we are seeing properties gaining ground, surging on a privatization deal. we also want to highlight chinese stocks. there helping a three-day drop. the yuan is extending losses. seeing shares in australia gaining .4%. oferial stocks given some the tariff outlook. also want to highlight the aussie dollar jumping, while using some of its advance. came in jobs data stronger than forecasted after contracting in may. we saw the aussie hit a session high on the back of that. 50,900 jobs added for the month of june. to add what is happening with the yen. we see it gaining ground. taking a look elsewhere, i want to highlight what is going on in korea. .1%. korean consumer stocks are under pressure and we are seeing that be the case as well for consumer shares. a last look at what is going on with the indonesian rupiah flipping ahead of bank indonesia's policy

tom mackenzie is watching this. are we expecting any significant movement on any of these issues? tom: this year we could actually get some traction in these talks. notlast two years have been stellar. because of the trade war and the actions of the trump administration they have proved to be a catalyst to move china and europe closer. the europeans would be clear to say on all issues. is -- not onearing all issues. we will probably get a joint statement. we will see jean-claude juncker, donald tusk meeting with the premier chained, then later -- premier chained, then president xi very we will get something out of the wto. something the europeans are keen to push ahead with. groupave set up a working looking at how the chinese can reform the wto because the europeans say they are opposed to the trump administration around tariffs, but they share concerns around subsidies for industrial policy, tech transfer, on -- the unfair regulatory environment in china. they want to see reform on the wto to address that and get china on board. there has been a number of years a discussion betwe

we are talking to tom mackenzie out in beijing.ice little story about what happening with erickson. >> a nice win for erickson. a 600 million contract to provide equipment for the largest mobile network in italy. ck is buying it out. this is erickson benefiting from problems in the u.s.. with trump's ban on equipment supply. there was some speculation a couple months ago wondering whether cte would be able to have complete major contract in europe. now we are seeing that it cannot. guy: thank you, everybody. first go on your bloomberg. all the details on what happening with the stocks news. fair values. points to a negative start in europe. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneu

tom mackenzie in beijing. as we have been reporting, the l, which has in seou kept the cost of borrowing on hold. much of a make of economic conditions? let's get to first word news. >> employment is sluggish and other news, they will sign and agreement related to the giant grasp are copper and gold mine. a signing ceremony at 4 p.m. jakarta time. the government once local interest to have majority ownership while freeport once -- wants to be in charge of operations. saudi arabia sovereign wealth fund has been approaching banks for the first ever loan. aiming to establish a group of lenders on which it can work with future deals. the public investment fund is discussing a multibillion-dollar loan as it aims to become the largest sovereign fund in the world. it is central to the vision 2030 plan to diversify the economy away from oil. india has overtaken france to become the world's sixth biggest economy. ahead of france. expect india to be the fourth are just by 2022. croatia will face france and the world cup

let's cross live to beijing, where tom mackenzie is standing by. we are waiting for chinese reaction. what might that be? no official reaction from china yet. we may get some comments shortly. we will be looking for those. don't expect a knee-jerk response. that has not been the playbook they have been used to or sticking to in the last few months at least. it should be a measured response, possibly some strong rhetoric from some officials and state media. but even the state media, the government told them to tone down criticism of president trump, no doubt aware this is a president with thin-skin. what the strategy appears to be is on the geopolitical front forming these alliances with the european union, at least making moves to that -- you have seen that play out the last few days -- showing that countries that continue to work with china on trade will get access, showing they are going to continue to open their markets and reform. we got an example with germany investing $10 billion in a wholly-owned business here. and also betting that corpora

let us go to tom mackenzie joining us from beijing with the details. ected, nonmanufacturing pmi. pretty disappointing so far. tom: that is right. the manufacturing pmi is what we are focused on. we expect it at 9:00. nonmanufacturing pmi coming in weaker than expected. forecast had been at 54.9 but we of 54 versus the june number 55. as we discussed earlier in the show, there were early indicators that there would be a slowdown in the second half. you had the worldwide sales index and that fell for july. you had china's major trade partners -- a survey from them suggesting weakness. coal pricess and dropping. suggest, it is in this context, that the deleveraging campaign earlier in the year took its toll on shadow banking. and the trade tensions as well. july was the month when the first round of tariffs specifically targeting china kick in. that impact playing out in some of these numbers. we hope to flash the picture out around 9:00 with the official manufacturing pmi that we are looking for. that to drop marginally to about 51 point 51.3 or 51.5.--

selina: that was byton ceo carsten breitfeld speaking to tom mackenzie., we speak about the future of high-speed transport. this is bloomberg. ♪ selina: it's a concept ripped from the pages of science fiction, a new form of transportation relying on vehicles moving at high speeds through tubes. dubbed the hyperloop, elon musk shared this concept and companies have been talking. only one company has developed the product that scale, virgin hyperloop one. joining us is the virgin hyperloop one co-founder in los angeles. you recently met with european regulators, many regulators around the world. there is obviously a lot of hype and excitement, but what is the number one concern regulators have when you talk to them? josh: i think the number one concern is that this doesn't exist yet. everyone is used to dealing with rail, boats, planes, trains, and they are trying to think of us in that concept. we are not any of those ridiculous modes of transportation. we can draw from the best of them, autonomous vehicles, platooning, but we need to be regulated from our

tom mackenzie with the latest on trade tariffs.lexis gray is senior economist at vanguard services. one of the stories that i put to our guest yesterday, donald trump talking about basically tariffs on everything from china , but mohamed el-erian made the point that we are almost facing a ragan era moment. china can't keep up with this level of tariffs and they will go into negotiations. we are near the end of this process. there will be substantive discussions because they just can't make up the good. this is the u.s. imports to china and u.s. exports to china in the white. they can't keep up. think we are still relatively early in the trade story. perhaps the u.s. economy has softened a little bit. when you think about the strategy of the trump administration, applying tariffs has been to push china to capitulate at some point. whether we are at that point now remains to be seen. anna: there's also a line from a number of u.s. trade representative who said, if we don't find an exit ramp, this will accelerate like a snowball going

our china correspondent tom mackenzie joins us from beijing. big news, but apparently they left out the price tag? tom: yes, just a minor detail there --[laughter] but it is still a considerable deal since they have been working on this for more than a year, to try to send a deal with that china government. ofk, it is just a memorandum understanding, but if it comes to fruition, it will give them a . fully owned production facility they say that they could be up and running in about two years, reaching the 500,000 target in terms of units per year in the next three years after the two-year build out. tesla. according to it is a significant deal for them, but yes, you point out something crucial, which is how much it will cost how much of the investment is. because at the end of the first quarter, the only had about $2.7 left in cash. they are burning through the cash, so that was a question raised by one of the analysts. we got a son soundbite from one of them pointing out this detail. >> the biggest question right now for investors, bulls and

tom mackenzie there.sia where prime minister najib razak has pleaded not guilty in connection with a multibillion-dollar scandal. he faces 20 years in jail and fairly hefty fines. help us to break down the razak. here for >> criminal breach of trust was one of the major ones. another one was under the anticorruption law. he pleaded not guilty to all of the charges. these stem from companies .elated to 1mdb a lot of money ended up in his -- account and he said this is a case that will be watched around the globe. we'll see how malaysia handles charges against the former later. certainly, they also came up with a proposed amount for bail. usedis about a million dollars. this is from the lawyer saying that it is a little on the high side. he is being asked to surrender his passport as a condition for that. what do we need to watch? he was banned from leaving the country. wouldnot surprising that -- they would do him as a flight risk. i assume they will be able to meet bill and released from prison. the quest

emily: ellis capital managing partner speaking to tom mackenzie in our china venture series.will hear from a chief legal officer on what it is like to have one of the most challenging jobs in silicon valley. "bloomberg technology" is livestreaming on twitter. be sure to follow our breaking news network on twitter. this is bloomberg. ♪ emily: welcome back to the best of bloomberg technology." i'm emily chang. a judge granted uber a 15 month license to operate in london after the ride hailer made some regulation changes. the ruling came tuesday after 1.5 days of arguments, in which lawyers for uber insisted that the ridesharing app had completely overhauled its culture, passenger safety policies, and reset their testy relationship with the regulator. caroline hyde caught up with the details. >> they got 15 months to keep making good on the promises they said they were going to make, behaving a little better, reporting crimes, and offering a bunch of other changes. it is this 15 month period where they have to keep doing the right thing, then reapply for another license, and hop

tom mackenzie joins us from beijing for more. apparently we are in a trade war. what has been said over the weekend? tom: reaction from the state media but also have a business summit that was held in beijing. we heard from the vice commerce minister who was instrumental in the talks between the u.s. and china when it comes to trade. he took to the stage and called on businesses to push back against this trade action from the u.s. and said he hoped the business community would uphold globalization and the multilateral trading order. critics point out china's claims that it supports globalization do not stand up to scrutiny but those were the comments from the vice commerce minister. we followed him out of the meeting and try to ask if talks were going on between him and his u.s. counterpart because that would be key. he remained tightlipped, so we don't know if there are any official or unofficial talks. we also heard from one of china's biggest industrialists, a guy called frank, who is the chair of sinochem. he said chinese businesses would not be badly impacted

our correspondent tom mackenzie is watching this in beijing. ot of action in that currency. this is the first official response to president trump's claim of manipulation. tom: this is china's attempt to push back the perception that they are intentionally cynically using their currency as a will in the trade war to support their export sector. it is something they have designed and that they would refrain from doing. the foreign ministry came out again and said it was market moves pushing the yuan lower. and economists would say that though it is a managed currency, that you do have these macro economic reasons that justify a weaker yuan. you have an easing move in china. you also have the higher rate environment in the u.s., you have the pboc's actions as well. overall, the weaker data point in the chinese economy. and the determination in china that it has long been stated to have the market play a greater role. wet is the context of what heard from the foreign minister yesterday. reiterated that he stands ready with an additional round of te

tom mackenzie joins us from beijing. good to see you again.ve the tliv running, all the summation of what the americans and chinese have said and i like the way you phrased it. you are shocked that the chinese are shocked. why? tom cole and the fact that they come out with a statement saying they are shocked is surprising, it maybe it is part of their gamesmanship. they have come out and said we are going to fight back. we will take countermeasures. what they have not said is what the measures are going to be. they cannot match this $200 billion number in terms of tariffs and maybe they can look at other measures. we have been discussing those and when you talk to businesses, we have talked to [indiscernible] anecdotal evidence that some regulatory measures are being put into place to slow some licensing. it has not been a top-down approach. what you could get after the $200 billion is implemented, you could see a coordinated response . they have a multipronged approach. they are trying to form this alliance and push back against washington, w

tom mackenzie is with us from beijing to tell us what we know so far about these latest tariffs. have is aetails we list of about 200 items. duty being proposed on a total of $200 billion worth of chinese goods ranging from electronics to textiles, clothing, leather goods. it is now focused on consumer products. inflationaryan impact. there is a deadline of august 3. they will be consulting up until that point, then after we could get the tariffs imposed. that is what we're hearing from the u.s. side. they say this is in response to challenge -- to china retaliating with his own $34 billion worth of tariffs, which of course they put in place for retaliation to the initial u.s. move around $34 billion worth of chinese goods. this is all about i.p. theft, he saw that in a statement today. they said they are willing to talk to the chinese but are focused on trying to change the behavior of china when it comes to technology theft. this is punishment for that. the thing is you cannot really respond dollar to dollar here, just because simply they do not have that many of from the u.s.

tom mackenzie in beijing for the latest there. measured response from china over the past few weeks and months. it has been a shift in tone over the past day or so. that's right. certainly from the commerce ministry yesterday, that sharpening of tone. the message itself was not different from what we heard, but the language tougher. for the sake of their domestic and international audiences, the chinese want to show they are not buckling under pressure from the u.s. they say they will react immediately after tariffs are imposed, so shortly after midday banking time. $34 will slap tariffs on billion of u.s. goods. if trump goes ahead with an additional $16 billion, china says it has an additional $16 billion in measures as well. the question is whether trump puts in additional tariffs around $200 billion, $400 billion, and then what measures china starts to take. it may start targeting u.s. companies. when you talk to the u.s. chambers of commerce, members are worried about potential impacts of doing business in china, licensing or

tom mackenzie, is this a potential opening?s on the parameters of any talks between beijing and washington because of course we have had three sets a formal talks in beijing and sidesgton between the two which came to nothing. but they did get traction initially around china's agreement to increase imports with the u.s.. what theyms to be on say is i.t. theft and forced transfer. that is an area china says, what do you want to do? uphave already ramped regulations and we do not think it is a problem. that is the chinese view on that. there are glimmers of light if you are looking for them. the vice president of president and talked emanuel about u.s.-china trade talks. it is possible if he takes a bigger role, you could start to see positive movement on that. he is something of a firefighter -- xi.sident she there is also the call from the ways and means committee saying trump and xi should meet for talks again. if it did come to pass before on $200ust 30 deadline billion worth of tariffs, you could see positivity. president tr

tom mackenzie joins us from beijing for more.al further united front against washington between europe and china? to be moreeems alignment between aging and berlin. on the issues of trade. china has been pushing this idea that it is placed to work and coordinate with the eu's push back against this trade rampage from trump as they see it. there are big differences still between germany and the eu and china when it comes to trade and economic policy. these words from angela merkel would a pleasing to china. she pointed to the deal they signed between the chinese side and her german counterparts and partners, this massive chemical company, bsaf will invest in china which will be fully owned .y basf she pointed to this as an example of china not just talking the talk but walking the walk. tl, had the chinese firm ca the largest maker of electric battle it -- batteries for vehicles. some concrete actions and some rhetoric from both sides saying that they are going to work more closely to push back against what they see as protectioni

tom mackenzie joins us in beijing. tom, what has been said over the weekend?reaction at a business summit following the decisions on friday. we heard from china's vice commerce minister speaking on saturday, who called on business leaders in particular to push back against what he described as u.s. protectionism. the byline in china is that the business community could play a role in helping to change the catalyst in washington. we also heard from one of the heads of the largest state owned it wouldates, who said be u.s. businesses that would pay a higher price. chinese business might feel some volatility in the short-term, but they would be able to adjust. take a listen to what he has to say. billion.d $50 i do not think the terrorists will have-- tarrifs major impacts on chinese companies. it is merely a stance. editorial in this morning's people's daily says u.s. firms could lose out on market share as a result of these ongoing tensions. that is a longer-term concern for u.s.'s noses is, when you talk to them about their operations here in china. yvonne: hi

tom mackenzie joins us in beijing with the details. tom, what do we know?ll to his death in the southern part of that country on a brief tour. he was there for a business visit and took a brief tour. he tragically fell to his death. and cochairofounder that grew from being a provincial airlines to this huge .onglomerate assets he was instrumental in driving the overseas acquisitions. 123 or madeabout about 123 different deals. he was really hands-on with many of these deals including purchasing a big stake in deutsche bank. he was central and a key player in unwinding some of those positions, the scrutiny from chinese regulators who were targeting asian day. concerns that their debt levels were not sustainable. it really raises questions asked to have the company goes from here. but dollar bond falling about 18% yesterday. what impact could this have on the restructuring plan? >> there is a view that this puts the restructuring plans back on the table. there are serious questions that remain for this country around transparency and ownership. the fact that

tom mackenzie with creditease. in new york on a high, surging 44% after raising $1.6 billion. pdd is backed by tencent. that catapulted its founder into the race of the world's wealthiest. let's get to david bramley, the story out of beijing. investors are really buying this growth story. david: that's right. it's seen such extra very growth in terms of the amount of traffic and urgency on its form. -- platform. this is a three-year-old company. the market cap is over half of jd.com, which started earlier. one interesting thing here is the model. how do they manage to keep prices so low and still intend to be profitable? well, you've got to be careful here because it's such a early days. their main driver is to get as many customers onto the platform as possible. that's why they are not really collecting that much revenue, other from the commissions or from the advertisers. that's still to come. that translates into much cheaper products. also, a lot of these merchants are the ones who moved away from alibaba becau

at our china correspondent tom mackenzie joins us for more. was this an accident waiting to happen? backlash from trump? tom: probably. afterave drawn his ire the depreciation of the yuan they had the weakest reference than two years. speculation has been that they have allowed this to happen to factor -- t the x the counter view in some respect coming here from the likes saying the economic fundamentals mean that you should be seeing a weaker yuan playing out. the pboc is easing monetary policy. that the fundamentals are so much weaker. it is taking place at a rapid clip in china. the key line that we should potentially be looking for a 6.8, according to a number of fx strategist. beyond that point, the pboc does not have the stomach. you have the risk of those capital outflows. further down the line, you get the likes of bloomberg economics. is still overvalued. at the moment we are looking at a 6.8 level. haidi: extraordinary that the economic level would see it dropping to 7.3 come if we go by the fair trade value. hyeon to the weaker currency -- beyond the weaker currency, what

correspondent tom mackenzie is following this. we see interesting language. e they are also stepping back of it. tom: yes, it is really about what he did not say rather than what they did say at this press conference from the ministry of commerce. what they did not reiterate was this line around quantitative and qualitative measures. qualitative is being kind of code word for non-tariff barriers, a word that officials had used before, and they are really being pushed out by the chief economist. we're seeing china moving away from a tit-for-tat response to a more selective retaliatory response. that was echoed by mary on the show from the peterson institute, saying it is not in china's larger or broader because theyo that want to be seen as open and a decent place to invest. nonetheless, we did get some colorful rhetoric from chinese officials. fung describing the rhetoric as being like gangsters. take a listen. >> that is a gangsters logic, and it is that these crying "stop, these." it is the united states who -- the thief crying "stop, thief." it is the unite

tom mackenzie is on top of this, watching for us. are we expecting any significant movement on any of these issues? hoping, or at least the expectation is that we might concrete action out of this annual summit and we have in the past few years. the comment you are referencing from trump. trying to get something material out of these conversations with their chinese partners. both sides of signaled that they want this to be an attempt to stabilize the international system. they are going to come out with a joint statement. easewant to be able to some of those concerns in the market and in the global economy. we are expecting some movement and reform. say thathe europeans they oppose the measures by trump around tariffs, they share these concerns with the u.s. when it comes to china's industrial policy, when it comes to the regulatory environment and market access. to addresso push those concerns. there is also a bilateral treaty that they have been working on for a number of years. they might get some more movement there, pushing in

let's get to tom mackenzie joining us from beijing. s been pretty good in terms of telegraphing the impact of bands from the u.s.. was this a surprise -- u.s. was this a surprise? tom: no, not a big surprise. it does underline the cost the company has had to pay for these infractions. they highlighted to us. 3.1 expected losses in billion dollars. note price that they revised down their first-quarter earnings from a profit of two under 50 million u.s. dollars to a loss of just under it a hundred million u.s. dollars. this is the second-largest largest chinese telecoms company. the company was caught up for these violations, sanctions violations around north korea and iran. course, you have this action from washington imposing this yingon the company from bu u.s. technology. that ban was lifted. it agreed that huge find that you pointed to -- saying it was one of the largest finds in u.s. in u.s. history totaling $1.4 billion. they agreed to that fine, and in thereed to oversight future. at least they are back to business having made tha

haidi: that was the joe harbour founder and chairman speaking to our very own tom mackenzie.re coming up over the next couple of hours. i will be sticking around with you. ramy: that's right. we are going to be looking at some really interesting guests coming up in just about 10 seconds. the senior economist, eric when eric, talking about the markets and what jay powell said in the semi-animal reports. this is bloomberg. ♪ ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. haidi: 9:00 a.m. in sydney where we are live from bloomberg's headquarters. i am haidi stroud-watts. gains after the open -- rate hikes will be gradual for now. a recovery in tech listed the nasdaq to a new high. they are shruggin

tom mackenzie joins us in beijing for more.eally only a matter of time before there was backlash from trump. am: there was was going to be ll given hea bu energyo much time and manipulating -- parading them for manipulating the currency. was no surprise i think to many of us watching this that president trump was certainly going to take notice, pay attention. that is what he did, accusing china of manipulating currency, saying it has fallen like a rock . we had this time whether the yuan was 5%, 6%, trading around 6.7% on the offshore currency. it has depreciated. the difference is, there are parallels people draw with 2015 when there was a surprise devaluation. the fundamentals are different. despite what trump says, the thes of img, hsbc say economic fundamentals are very different, so they speak to the need for a slightly weaker currency. bloomberg economics things the yuan is overvalued by 6.6%. others will note this is one being used by the chinese suspicion to offset these pressures from the trade tensions to help the exp

thank you, tom mackenzie, out of beijing. let's have a look in your first word news. juliet is with us in singapore. >> president trump has renewed his attack on opec, saying the cartel is driving prices higher and doing little to help. that many of the group members are spending very little money. futures gained fractionally, extending crude's 15% rally since early june. the policy tightening ways may soon wash up in bangkok. minutes from last month's pink -- bank of thailand meeting show officials discussing the appropriate timing for a rate hike. the bard weakened more than life percent against the dollar in the second quarter. u.k. police say two more people have been poisoned in southern england with the same nerve agent that british authorities say was used in march 2 attack former russian spy service group --led -- sergei screwball sergei skripal and his daughter. secretary of state mike pompeo returns to north korea on .hursday the white house said pyongyang was no longer a nuclear threat. day onnews 24 hours a air and at tictoc on twitter, powered by more tha

tom mackenzie is there. there is a saying about style and substance and style winning every time.k is a man of style and have a look at this. theme take you beyond numbers. if you were a betting man or a woman, you would say it is a little better and it is outpacing the bloomberg tracker. bullish on china. >> it is looking pretty strong and there is trading in tariffs that can get implemented and we saw the numbers coming in and they came and they fell because everybody is expecting this liquidity to cut to the quiet cutsve ratio and there are there was expect and the leverage effort that was serious. there were the growth estimates for the third and fourth quarter of this year. where's the pressure? tariffs and the there was the disruption from trade and he sees the european union as a flow. the best case is that common sense propels -- prevails. the worst is that they are not. >> they hope that the common sense will prevail when i come up with these charts. we released the survey and it move will only get worse. hitks could take another and it looks like the bonds have bottomed

tom mackenzie, bloomberg, beijing.till ahead, crude bouncing around ahead of the inventory data coming out. meanwhile, saudi arabia cutting pricing for crude. we will explore this in futures in focus. this is bloomberg. ♪ live from new york, i am vonnie quinn. i am live from london, mark barton. this is bloomberg markets on bloomberg television. let's get to futures in focus, oil futures dipping ahead of the u.s. inventory data out and couple of minutes. dan,e at the cme joined by how are we positioned ahead of the inventory data? traders talking about what is going on as we rolled toward the eia number, a key number, particularly coming up of last week's much larger than expected drop. of 5 expected up a drop million barrels and they are waiting for the number to come out in less than 10 minutes. mark: talk about saudi arabia. seemingly, it is cutting prices rays andch of its lifting production. it seems to be listening to president trump. dan: it is interesting they came out with that announcement after the tweet fro

joining us now tom mackenzie. this is the latest, this is the latest reassertion of the messages coming from china overnight. we will not fire first in the trade war in their words. tom: absolutely. 's lightning -- slightly heartening of town but the rhetoric seems to be sharpened up. the chinese said we're not going to fire the first shot but we will fight back to protect our interests accusing the u.s. of starting a trade war and as you that of theseout tariffs on $34 billion worth of chinese goods, they would eat effecting $20 billion worth of goods area the chinese also pushing back against what they said is the threat of the protectionist sentiment coming out of the trump administration, the impact that is having on the global trade picture. no sense that the chinese are stepping out of the ring ahead of this fight over tariffs. manus: hundreds of -- how does the rhetoric change the dynamic? it is very strident, it is warming -- warning about the global ratifications an. and the chinese have a domestic audienc

tom mackenzie joins us now for more details. how does this change the calculus for the policymaking community there? tom: on one hand you would expect a response from china to say they are looking for a stable exchange rate regime. they will not take into account these kinds of messaging from president trump and it is stability they are aiming for. on the other hand, we know they are particularly sensitive to being perceived to be retaliatory or taking retaliatory measures in terms of the straight. that is -- this trade war. that will be factored in. to listen toting those who point out economic fundamentals suggest you should see depreciation. this is justified, this drop we have seen over the last five or six weeks. -- fact the restaurant reference rate was its lowest friday for more than two years. those economists say you have the facts, the fed is raising rates, the fact the pboc is easing monetary policy. many are pointing to a slowdown. it does justify more of a depreciating remmb. bloomberg economics say the yuan is still

now from beijing is our china correspondent tom mackenzie.commerce ministry really trying to underline the point it wouldn't just be chinese businesses hurt by these tariffs, but u.s. businesses as well, and they did the numbers on that. reporter: they said that around 60% -- run around 60% of those tariffs are being manufactured by americans, so the chinese say this would be example of the u.s. causing itself pain, as well as its trading allies. you can look at the likes of taiwan and south korea as well. really this was a message from commerce ministry and foreign ministry later on in the day, saying we will not capitulate. china saying it won't be the first one to pull the trigger, but equally would fight back and pushing back against this protectionist sentiment out of the trump administration. really china trying to portray outlier and an outlier administration trying to bully its way on trade. anna: underline for us the timing of all of this. , july 6 now marked in everyone's calendars as a day where we could see the trump administratio

tom mackenzie reports.glomerate, again in focus with its cofounder who died from southern france earlier this week. the cochairman had a 15% stake, growing from the regional airline into one of china's biggest companies with assets worth 230 in u.s. dollars. he also spearheaded the 14. -- $14 billion spending spree including major deals worldwide and deutsche bank along with the key to unwinding many of this missions as china ramps up focus on financial risk. about $16 billion of assets this around 90 billion u.s. dollars, there are now one that can derail the plan. bonds dipped stabilize one of china's most indebted firms. bloombergime for the 's this flash, a snapshot of some of the biggest stories in the day. a ceo resigning under shareholder pressure, shuts down .fter -- days after some strongly opposed. criticized for declining revenue and a falling stock price. since heve lost 30% became ceo in 2011. goldman says the economic impact from sanctions between the u.s. and china is small, forecast and a 10

we are joined by china correspondent tom mackenzie. at is the latest in terms of what we are hearing on the straight conversation? -- on this trade conversation? tom: they did put up this statement, where they accuse the u.s. of acting like a bully on trade and saying it would impact the markets and trade flows. china also saying in a statement it will continue, despite actions from the u.s., to open up markets and protect intellectual properties and uphold the multilateral trading systems. too little too late. some u.s. goods are being held but as yetand china, we have not had retaliatory measures pushed up from china. they said they would hit back with their own 25% tariffs on $34 billion of u.s. goods. anna: that's the top line. this morning, they reiterated they would do it. they've given us no timetable. could this be days, weeks? how is china expected to respond?\ tom: it would be surprising if they didn't match what they've been saying in the month leading up to this that they would hit back tit-for-tat, blow for blow, as the way

manus: our china correspondent, tom mackenzie, joins us from beijing.signal in terms -- left between merkel and --? outt is worth in pointing -- it is worth pointing out that they have had a long-running positive relationship for a number of years. certainly there is now a synergy from the german and chinese inside when it comes to pushing back on trump's attempt to trample on the global trade order. it is not a clear-cut case. there are many issues on which germany and china have problems that they need to overcome, but to ainly they pointed company as an example of china on its money where its mouth is. there are still issues around the market access and iran german corporates, and what they see as a lack of a level playing field in china. manus: what do you make of it? we have had a global markets rally. we have had this relief in markets, but nothing much has actually physically changed in terms of trade tensions. what do you think the consensus is now? that we are stepping back or it is just a time of calm before the storm? >> a mixed view. may be

tom mackenzie is watching this. a pretty clear policy shift. tom: it seems that there's easing bias that we are talking about is starting to allies. this was shared. they put out the statement saying that they will pursue a proactive fiscal policy. i am going stimulus, it is likely that they will be walking back from some of these tougher deleveraging moves or deleveraging targets. this comes after a number of moves that we have seen from the policymakers in china. we are seeing those loser was around asset management. they give the financial sector a big -- bit of a lift. we have these reports on the fact that some of the banks have been told and encouraged to buy some of this low-grade bonds. we have had three cuts to the reserve requirements and speculation, voices now in china suggesting that you may get one more in 2018. it seems to be pushing back against some of the deleveraging taking place. we saw that they drop up in june. there was this concern of the private sector won't be getting the credit that it needs. it will start is the. that

tom mackenzie from beijing as well as our managing editor daniel from hong kong.what china and the eu have agreed to do. daniel: we got some substance out of this one day summit even if it was not groundbreaking the results. we got the first joint statement since 2015 between the eu and china. they pledged to uphold the multilateral trading system and open markets. we also got movement around a bilateral mark -- trade treaty they have been working on. wto, this isof the something the europeans have been keen to pressing the chinese on. we did get that commitment from the chinese. we will have to see what that means in consequence. we heard from donald taft in terms of what he would like to see in terms of reforms. take a listen. we need new rules in the fields of industrial subsidies, intellectual property and technology. of -- as well as a new approach to development and more effective settlement. the aim of these reforms could ensure auld be to level playing field. digital: they also talked about their determination to find synergies between the initiative and s

tom mackenzie joining us from beijing. more news coming through , pricing shares in hong kong at $17. reports that it is not off to a great start, given some of the institutional investors. not a whole lot of demand and the gray market, we see thin trading. atcing hong kong ipo shares $17. countdown not just to the tariffs but to the ipo on monday. more ahead on daybreak asia. this is bloomberg. ♪ kathleen: now for a look at trending stories. the bird subscribers are reading bolsteringgan, operations in some locations. climate change is getting a hit with the related news about a zero emissions gas plant and a tiny country that is eating the odds. stories about high income americans being the most upbeat on record. check out stories trending on the bloomberg terminal or online. now for a quick check on the latest headlines. competition watchdog is threatening to force lower prices and revamping businesses. the regular found its acquisition of uber's southeast asian business is cutting competition, citing complaints from pa

tom mackenzie has the latest. help us understand what is happening here.s announcement net we got across the terminal earlier wraps up the pressure aren on china, because they already feeling the economic impact of these trade tensions. what we are hearing is that the u.s. are looking potentially at raising the tariff level from 10% to 25% on these proposed $200 billion worth of tariffs. that would put it in line with the 25% level we got on the initial $34 billion worth of tariffs. of course nothing is final, this is not set. there is a consultation period for these additional set of tariffs. it ends on august 3. after that, then you may get these tariffs imposed and we have to wait to see whether or not the review process, we will see if this goes back down to 10%. nonetheless, it puts china in a tighter spot. they have less room to maneuver. ironically one of the measures china would have potentially look that, because they cannot match the value of tariffs on the u.s. side, potentially china was going to look at raising its own percentage of tariffs to

that was our far east energy company founder speaking to our own tom mackenzie there.ing up in the next few hours right here on rish, what are you watching? rishaad: haidi, we're looking at the biggest ind, the world, just coming to an en d at the air show, and loads of water is taking place, and chinese carriers. one of the stories we have had today is boeing, in light of the possible trade conflict and how looking at where the planes are headed, so this is something we will be looking at with him and also this new plane others --places the that replaces the other, and the airbuses, the prospects of that, but cargo is doing badly. another is evolving. we have had a terrible time with these cargo carriers losing money, and airlines have been trying to get out of this business. for them,ty good news some of these manufacturers, to be seeing these new orders for freighters, what was the founder, of the business end. so that, ramy. ramy: all right, rish. and before we headed over to you, let's look at how the markets are trading. it looks like the nikkei 225 is up, led by

francine: thank you so much, our china correspondent tom mackenzie. so what does it mean for markets and investments? joining us for the hour is peter dixon and grace peters. thank you both for joining us. peter, let me start off at you. view that it broad will go back to being ok or that will turn ugly? peter: both. [laughter] ugly.ld turn it depends on if either side misstep in. that is how trade war's start. you get into a situation where one side will do this, then you get retaliation. it depends on escalation thereafter. the trump administration has given the impression they are willing to scale dramatically, so that causes me to be concerned. markets seem to be shorting off. there might come a point where sentiment flips. we are not there yet. the risk is out there. grace, does it mean you have to take a position in certain industry groups that could be hit? you certainly have to be selective when looking across the board. you may be correct points that markets have digested this well, because the economic impacts as we know it are reasonably sm

tom mackenzie joins us from beijing with the details. ng, it gives us confidence that there has not been massive intervention given the volatility and selloff in the currency. tom: that seems to ring true and the forecasts underestimating this number. 3.1 one trillion for the month of june is the first we've seen since march, increase about $1.5 billion. you remember the fx reserves in china topped $4 trillion a few years ago and they burn through a lot of those reserves in 2016. controls remain firmly in place. we had the pboc government coming out a couple of weeks ago talking about the currency and the fact he wants to see a stable exchange rate. the yuan has been under pressure and that's led to speculation on whether or not you are going to see a selloff in these fx reserves as policy officials use this tool. it's a data point that we will look at. the dollar makes up a chunk of these fx reserves and the strength will no doubt play some role in seeing this number pick up for june. david: to your earlier point on the yuan, so far they

rishaad: thanks, jodi and tom mackenzie in beijing. what is at stake for samsung?he next emerging market investments rating for trade war turbulence. we will look at the strategies to reduce risk. this is bloomberg. ♪ bloomberg. ♪ rishaad: your back with bloomberg markets. the u.s.-china trade spat expected to -- it could be tried by jay on thes testimony outcome of monday's meeting between president trump and putin in helsinki. emerging markets become so tricky to navigate as investors keep on putting their seatbelts on. let's have a look at the chart. this is the gap between the jpmorgan gauges of expected and g7ity in e.m. currencies because it was at the highest level since 2011. what this is doing is depriving investors of a cheap way to protect themselves. let's discuss this. how do you protect yourself? >> clearly, this has been a roller coaster ride. we are in midcycle. it's fair to be conservative about markets, but escalation in trade war's, completely common. nobody expected anything beyond the pure rhetoric. markets have taken 50 billion. people worried