the u.s. and iran, and the u.s. and its european allies. trump threatened other countries seeking to trade with iran, tweeting -- "anyone doing business with iran will not be doing business with the united states." iranian president hassan rouhani has condemned the sanctions as psychological warfare, saying last weeeek he would not begin negotiations until the sanctions are withdrawn. the first step would be for u.s. president donald trump to show he generally was to engage in negotiations to solve the problem. what is the meaning of negotiations when you impose sanctions at the same time? it is like someone pulling a knife to stab a rifle -- rival or enemy and arm while at the same time claim we should be talking and negotiating. the answer in such a case would be to say to remove the knife from the arm and put the knife away. amy: just last month, president trump said he would meet with iranian president hassan rouhani whenever rouhani wants, without preconditions. this is trump speaking at

moves, if the u.s. moves into a more high key profile, there will be a vacuum that needs to be filled area working on environmental law legislation, drafting. in cambodia, or in vietnam. that is the scenario that taiwan is expected to. that is so metoo capacity building, low-key zone. that taiwan could again, engage in. last comments on good for the u.s. zynga for southeast asia, is on people to people exchange. chinese --hed china's move, there's been a huge volume of frequent people to people exchanges. whether it is educational, business to business, they are happening all the time. wideis creating a deep and web of networks between china and southeast asia. i don't think so they bad thing. time, we're not quite sure how there are people to people exchanges paying off. as, taiwan and even the u.s. is considering reaching out to southeast asian countries. the countries are saying we need more of these people to people exchanges. that is how you foster this environment or it i think it is important to

broad u.s.ollar, which has been getting a lot of its variance -- variability, the what is going on with yuan. we see a breaking out on the dollar index right now. they will struggle to find buyers in this environment. if you're looking for a contrarian trade, it is probably one of the better ones out there. we are still of the camp that the u.s. dollar will appreciate on a gradual basis at this time. yvonne: we appreciate your time. joining us from melbourne. coming up next, the bellwether for the industry gets rocked by a crippling virus area -- crippling virus. a hit to its production line could affect shipments with largest customer, apple. this is bloomberg. ♪ ramy: welcome back. this is "daybreak: asia." chipmakeriwanese racing to recover from a crippling computer virus. the company is one of apple's largest suppliers and says the virus affected 80% of its tools on friday. it may affect their top and bottom line. is a technology editor joining us from tokyo plaza with a little more on this.

the u.s. is waging war on the economy and undermining the lira. ramy: the currency suffered its worst week since 2001, but now they are limiting swap transactions. haidi: criminal charges released at the inquiry to australia's finance ministry. ramy: the saudi's sovereign wealth fund may raise its investment and there is a lawsuit. haidi: hello from sydney where it is passed and :00 a.m. -- it is passed 8:00 a.m. ramy: it is past 6:00 in new york on a sunday. i am ramy inocencio. looking at where things are heading, take your pick between the u.s. and china, u.s. and russia or u.s. and turkey. there is a lot of rushing about with sanctions and tariffs. we are seeing the knock on in the currencies. let's show you what is happening first with the dollars. you can see it's sliding. the euro is heading the other way, down a quarter of a percent , and we can see the biggest movement happening with the turkish lira, now retracing some losses, 5.6%. we had above the seven handle, 7.2. after the headl

to u.s. nationals in vietnam have been sentenced to fourteen years in prison over an attempted case they were among twelve people sentenced all of the members of the professional national governments of it now which was declared a terrorist organization by the country's authorities back in january the war in vietnam and is more than four decades ago but apparently for some the struggle goes on. the vietnam war one of the world's bloodiest conflicts and the american defeat ideologically opposed plugs into decades of fighting came at a cost of fifty six thousand u.s. troops who were in a bit to overthrow the communist regime of north vietnam but the casualties among civilians were much greater at least two million people died in the wool. after hopes of tightening democratic grip across the vietnamese state slipped away and up to one hundred forty one billion dollars was spent on military operations the us folded who had been exhausting rule at home and abroad. in one thousand nine hundred seve

u.s.ees evidence of change. hurtng says tariffs everyone. a very good morning again and hello to all of the global viewers. looking at what has happened the past 24 hours, there is a trade for pain, and there is a trade for earnings. we saw that pushed back and forth in terms of equities. we started low but ended up mixed. we seek we don't know it is when -- where it is heading. a lot of central-bank action out of the bank of england. in terms of what is happening, the central bank is trying to figure out the drivers that are trying to come out from wall street as well. this was surprising. maybe we will get another rate move out of mark carney. you spoke about the pain trade. if you look in -- listen to wilbur ross, he said putting beijing in that position of pain hopefully from his point of view, the trump administration's , they will get them closer to economic reforms. that is a long-term game. they the question is if could relate debt there. let's get you caught up with what has happe

japan realizes -- but the u.s. if the u.s. decided to leave the region, what japan can do is very limited. also why japan is not , so frustrated, sometimes described as an isolated partner of the united states over north korea? the reality is actually that what japan can do to the north korea is lenient. and what japan cannot see in the negotiation between the u.s. and north korea is to extremes. -- two extremes. one extreme is war. or conflict, military conflict. japan is afraid of the other extreme. too much competition by the u.s. the starting of a nuclear --. and the starting of a nuclear arsenal. even such a scenario realized, alternative for japan to take. what japan is trying to do is maintain ties with the united states and try to favor international liberal order. that is probably several things. very interesting. [indiscernable] which i belong to has been working on the promotion of -- exchange between japan and --. [indiscernable] and promoting asian nation stability and prosperity. and in that context, a very inter

the u.s. then advise worser and to a certain degree there is some truth to that about seventy five percent of all experts from canada go south the border meaning to the united states of the trade balance between the two countries is almost even but as canada there is a far smaller economy they do depend more on the us and then the other way around if that will actually lead to an agreement as we've seen it was mexico on monday remains to be seen. talking trade unions the u.s. trade balance numbers are out and i don't think they like he's made the president specially happy all they. know donald trump won't be happy when he sees the figures or on the other side he might find another argument for his tougher trade negotiations the trade balance actually increased the deficit increased by a good six percent and reached the highest level since february but to a certain degree there is a good reason why america why the u.s. is importing much more than their export it because the u.s. economy is real

finally, u.s.redit rolling along, united technologies getting $11 million for the rockwell acquisition. yields dropping 30 basis points between pricing and the auction. still with me, kevin giddis, george goncalves, and luke hickmore. kevin, i spent this week and caught up with pimco and we talked about how they turned cautious and defensive and one of their funds. my question, i hear this a lot about turning cautious and defensive, but i try to reconcile that with what has done really well in fixed income. there is nothing cautious or defensive about it. how do you make sense of it? kevin: whatever they say about cautious and defensive is not necessarily what is happening in the current market, especially on the long end of the curve, where investors are willing to take a lot more credit risk. it has been a yield play for the last two years. you offer me 25% for two years in turkey, i will probably take them. jonathan: maybe that is the reason you want to get cautious and defensive. convertibles a

>> the u.s.s enjoying exceptionally strong growth. >> is part of the divergence, one of the themes for markets in the global economy. >> the u.s. is delivering twice the earnings growth of the rest of the world. >> for now, the linkage is entrenched. >> if companies keep delivering, it is hard to make the argument against equity. >> the u.s. is continuing to break out in fundamental and technical basis. >> these companies are executing and if the prices were going up for no other reason than the story sounds sexy, that would be a different matter. >> when you look at the u.s. economy and what the trump administration has done in terms of providing fiscal stimulus, it is going to continue. >> the u.s. is a -- has a policy led growth spirit for the rest of the world, has been a combination of hawkish. >> i think the pace is more than sufficient. jonathan: joining me around the are my guests. let's begin with you. can this continue? >> i am not sure. if you look at the treasury market in general, th

the u.s. should. facebook could have closer ties to washington than previously thought because it's now emerged that the platform is relying on experts funded by branches of the u.s. government and also nato when it comes to tracking foreign influence with more his . how's that for a mark zuckerberg nightmare he or his steam in front of a horde of suits go and sort these russian bots out sort out the fakes sort them out or did i just paint a good picture of the reality web giants of been facing lately in the past election you. we've seen how foreign actors are abusing social media platforms those images that can be attributed or associated with the russian company lack of resources a lack of commitment and a lack of genuine effort the likes of zogby could have proudly said we're just a platform where independent and sorting out what you call fakes is none of our business but when wall street alarm bells are ringing you know how it can happen with the stocks it could be better to zip it and focus on an

the u.s. data is very strong and u.s.quity market is very strong. >> as we have seen, the power lies with the president. >> investor reaction of renewed trade talks between the u.s. and has and larry kud lmp ow been defending the tariffs. for more on all of this let's bring in senior u.s. economist. good to have you here. we looked at the markets and saw a bump here. the most in three weeks when it came to the s&p while it talks about talks. people are looking for some hope and optimism. >> i think we need some good news on the trade front. it seems to be very one way in the u.s. continuing to push other nations. where does that end up leading whether it is a war, skirmish or battle, there is a lot of negativity in terms of growth for the u.s. and around the world. >> there is positivity just for the day. where does this go looking forward? august 23 deadline for the $16 billion there as well as september for the $200 billion. >> the $200 billion is the big game changer. because we are not just talking about that, but one

the u.s. sanctions against iran which should just come into force have seen a spike in oil prices with analysts predicting the upward trend will persist with the u.s. preparing to impose yet more sanctions the iran's second largest trading partner has shown it's ready to protect european companies doing business with tehran. we are determined to protect european economic operators in legitimate business with iran this is why european union's updated blocking statute enters into force under seven of august to protect e.u. companies doing legitimate business with iran from team pact of u.s. extraterritorial sanctions we believe that it is and it has to be up to. the europeans in this case to decide with home to trade while the first round of sanctions prohibits iran from using american currency and push restrictions too on creating precious metals and also includes limiting rainy and currency flows as well as constraints on the car trade smear a car looks at the kind of impact u.s. sanctions hav

if you take u.s.ominal gdp growth at 5% now, roughly speaking, there is a correlation between nominal gdp growth and the 10 year bond yield. relative to that 5% nominal gdp growth, bond yields are too low. before the financial crisis, the fed was talking about the conundrum. it was raising the short end, but the long and was staying too low. that seems to be happening again. i do not think we will get to 5%, although i do think it would be good if we start to head to their. anna: thank you. when you are traveling to work, remember you can tune in to bloomberg radio. you will find it on your mobile device. not that anybody ever turns off the tv. standoff.t is a saudi the kingdom suspends ties with canada over criticism of an arrest of a women's rights activist. the very latest with our executive editor. we saw some moves against germany earlier. arabia, theof saudi standoff with canada begins. politics first on bloomberg, right here from dubai and london. ♪ manus: 6:30 a.m. in london. 2:30 in tokyo. mr

new u.s. sanctions on iran are in force there the first round of measures against iran after president donald trump rene exam the two thousand and fifteen nuclear deal iran's president is accusing washington waging psychological warfare of sanctions are likely to weaken iran's currency which has been in freefall since trump's decision but also blocked iran from getting access to american dollars the u.s. has stopped imports from iran including food and carpets the sanctions also limit iran's ability to buy raw materials like steel and coal as well as precious metals in november more sanctions will kick in they'll include measures for civically targeting the oil sector and foreign banks that do business with iran kimberly healthcare reports from washington d.c. . the united states says iran is a threat and it wants to punish the country's government by isolating it from the global financial system starting tuesday you. u.s. sanctions will be reimposed to target a range of sectors blocking iran

stock market u.s., it's all deal. a a trade deal, u.s. and mexico, donald trump announced today, see the dow jones industrial average, by the close, up more than a percent, points. s&p 500 get up 22 points. nasdaq, nearly 72 points. optimism that the trade war dominos are starting to fall. lead to progress on other fronts, heidi? heidi: yeah. suppose, if you look at all he strategies, warning, don't extrapolate this deal with any sort of optimism when it comes to china and the u.s. trump saying now is not the time to talk to children on those trade issues but take a setup in asia with those record highs in the u.s., bit of positive activity through to the asian section. the moment. at percent about a half decline overnight as the safe of mood seemed to recede with a little more risk taking. look positive to build on the previous days' gains and the some , 73.49 giving back of those gains that came through yesterday.ally let's get you the first news with jessica. >> thanks, heidi. $5 farmers will get almost billion of direct government aid

the u.s.nd china countdown to tit-for-tat tariffs. we will see billions of dollars of goods on both sides. washington is warned against further escalation. ramy: i am ramy inocencio in new york, it is just past 7:00 p.m. on sunday. markets set forth a mixed and muted start. traders looking ahead to the meeting at jackson hole. elon musk says this is the way im and rejects calls for him to change and the way his company operates. ♪ ramy: good morning, happy monday. looking ahead to this week, the biggest events is what will be happening with the trade tensions and negotiations happening between the u.s. and china, we have low-level ministers from both sides, as well. they are potentially paving the possibly inmmit november. yvonne: everyone expecting that maybe not so much a breakthrough, if we can get some illumination of further tariffs. the u.s. has threatened more for later in the year. we mentioned also jackson hole, the central bankers meeting on the break. it will be interesting to see j

the u.s. decoupling from the rest of the world. >> the u.s. right now is enjoying exceptionally strong growth. >> it is part of the divergence be one of the major themes for markets and the global economy. >> u.s. is delivering twice the earnings growth of the rest of the world. the d linkage persists. >> it is hard to make the argument against equity. is continuing to break out relative to the rest of the world. -- the pricesnies are blowing up for no other reason other than the fact that the story sounds sexy. that would be a totally different matter. economy,ou look at the in terms of providing all this fiscal stimulus that is going to continue. >> the u.s. is a policy led growth spurt. the rest of the world, it has been a combination of ad hoc issues. >> it has longer to go. the pace is more than sufficient. >> joining me is kevin. head of fixed income. head of u.s. race strategy. and coming to us from edinburgh. aberdeen standard investment. let's begin with you. can this continue? >> i'm not sure. i think that if you look at the treasury

u.s.kets surge of walmart.d by the only question you really need an answer to the right now much longer can america outperform? ap moller-maersk plans to spin off its drilling business on the nasdaq. matt miller live at the company's headquarters in copenhagen. air france has a new canadian pilot. will unions get on board with the foreign ceo? will passengers take flight? we are less than half an hour from the start of european cash trading this friday morning. let me show you what the futures point to this morning. yesterday u.s. markets were on a tear, driven by those amazing walmart numbers. the retail story in the united states looks very strong. the outperformance of the u.s. market. europe will do nothing today. that is the story will get at a headline level. at an individual equity level we will see a different story. we will talk about air france, ap moller-maersk, and the commodities space. outperformance yesterday from the united states was impressive. s&p up and the doubt surgin

the u.s. lawmakers are demanding answers from google over reports it is developing a sensitive version of it engine for china. 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. i am haslinda amin. this is bloomberg. haidi: president trump has defended his use of tariffs, saying playing hardball is my thing. this follows china's decision to outline an additional $60 billion with retaliatory tariffs. let's get now to beijing. trump is claiming to have the upper hand on china. we have a flurry of data coming out this week in terms of trade numbers. that should give an indication whether it is right or not. china data,eek for and as you say president trump coming out over the weekend with this rally in ohio but also a series of tweets to underscore his view tariffs and the actions he has taken give the u.s. leverage, saying he thinks it will win certainly in the longer term and it will open up china's economy

the u.s. dollar. ripple effects from the turkey -- turkish economic crisis are being felt across the globe in part because turkey relied heavily on foreign lending especially from european banks. the crisis is coming as tension is escalating between washington and ankara. last week president trump raisid new tatariffs on turkish metal exports.s. the u.s. is also pressuring turkey to release an american missionary named andrew brunson who was one of thousands of people in turkey detained after a failed coup in 2016. in yemen, thousands of mourners gathered in the city of saada monday for funerals of the 51 people, including 40 children,n, who were killed in an n air stre on a schchool bus lastst week. the airstrike was rrrried ouby e u.s.-bked saudled alition. imag posted line sugst a u.s. built mark-82 bomb was usus in theirirstrike. mourners decried the attack on school children. >> the crimes that were committed by the coalition against children were unprecedented crimes that have never happ

what it really links to the u.s. economy the u.s. is still the biggest and most important economy in the world to assume a certain extent we all have to dance to the u.s. is chewed the trade issue is much bigger than the sanctions issue we worry over here in europe a lot about trade wars of course we're in some thirty percent of our g.d.p. from exports the u.s. it's some fifteen good news is the u.s. and e.u. seem to have seen signed some kind of truce since the younker trump meeting some two weeks ago now we have to focus on the u.s. china issue latest news there is there's no real progress so we could see some more escalation of the trade war between the u.s. and china that will be tough for markets to deal with. bearing that bank in london well saudi arabia does not take kindly to being lectured on human rights by other nations canada recently plunged into a diplomatic spat with riyadh over the release of saudi activists from detention in germany stands to lose out on new critics business contracts in the kingdom following critici

overall for us, the u.s. dollar remains the key funder and we have to remember that for all parts of the globe but certainly did she she she we have seen on the -- depreciation we have seen on the chinese currency the last month has caused a lot of issues in terms of the outlook for the dollar in the near term. what happens on dollar china is very important now. it looked like we would stabilize around the 680 level. it appeared a 690 was too much and we saw the authorities in some sense step in there. that message is clear, but we are excited to see it growing up again. when you think about the dollar's weakness against other the canadianke dollar, the british pound, relating to those deals, it seems like at this stage, the dollar-china story could be heading in a different direction strength continuing is a concern for markets. david: you are right in the middle of all of this. i am curious, do you think markets play a bigger role in the foreign exchange rate? laura: there are certainly levels that the pboc

is the u.s. economy vulnerable?talian bond investors run for cover ahead of what is potentially another month of political -- political turmoil. we start with the big issue. paying in emerging markets. >> emerging markets has been hit quite hard. >> globally quiddity is actually on the retreat. that will definitely lead traces in emerging markets. >> some of them are in good shape, some of them are not. tarred by theeing same brush. investors who are careful about looking for the nuggets are going to find some really good opportunities. >> you do see some selective value there. what has hurt the emerging markets has been the strong dollar and the fed tightening and higher u.s. interest rates that has caused capital move out of emerging markets into the u.s. but the point is that a lot of thethe dollar strength, most of, who knows when the dollar will take? a lot of that has happened. >> we will see points in time where investors start splitting their interest between the good, bad, and ugly. with regard to emerging

u.s. has set up today -- today. vonnie: it does not have to be today. >> definitely didn't they have not -- definitely. they did not fill in the you guess of the mexican agreement. they have a 30 days after that to finalize negotiations before it goes to congress. vonnie: what about canada? the dairy portion, canada not happy with backing down on dairy if the u.s. backed down on panels. >> will either side compromise on the major things of importance. canada wants to keep the dispute panels for topping, chapter 19 in place, maybe change it a little bit because they feel it is a way to get a more fair resolution of disputes, rather than go to the u.s. courts or wait a long time for the wto to rule. u.s. would like to get rid of the canadian gary support system entirely. the canadians oppose that. it puts quotas on the amount of imported milk that can come in to keep prices stable. there are areas in which canada has compromised with the eu and countries in the tpp. there is somewhat of a ro

u.s. independent oil producers alix: growing pains. u.s.ndependent oil producers spend more and get less as the shale development hits some road bumps. make glencore great again. record profits at glencore not enough for investors as they clamor for buybacks in dividends. and come up big growth plans. lyondellbasell's ceo bob patel outlines expansion plans for one of the largest petro-chem giants in the world. ♪ alix: i'm alix steel, and welcome to "bloomberg commodities edge." it's 30 minutes focused on the companies, the physical assets, and the trading behind the hottest commodities with the smartest voices in the business. all right, let's kick it off with "spot on." it's our analyst's take on our big story. joining me now is tamar essner, nasdaq's lead energy analyst, and our spotlight on oil earnings. good to see you, tamar. thanks for being here. tamar: thanks for having me back. alix: the big theme with enp independence in the u.s., production guidance goes nowhere. capex goes much, much higher. what was your big take away so far? t

legislation called blocking statute it's aimed at nullifying u.s. legal action against european firms which defied u.s. sanctions on iran and the e.u. agreed to twenty one million dollars in aid to iran to help offset the impact of sanctions. germany's foreign minister has called for independent payment channels to be created which would avoid u.s. sanctions and a newspaper article i ma said it's indispensable that we strengthen european autonomy by creating payment channels that are independent of the united states also creating a european monetary fund and dependence swift firsts us sanctions are back in force and the situation itself strategic importance that we clearly tell washington we want to work together but we will not let you act over our heads and the french president has criticised donald trump emanuel said europe's historical partner seems to turn his back on this common history you know minuscule. defer sweat which is a burden on our shared wellbeing is a crisis of multilateralism obvious multi-layered some is in fact he's going throu

u.s. is sanctioning russia. currencies are under pressure. the kiwi is declining. the outlook for growth is also weakening. >> i'm kathleen hays in new york where it is just past 7 p.m.. u.s. and japan tackle trade in new talks in washington. any deal could be threatened for support for the cpp. earnings topped estimates and the results validated disney's decision to buy the business. tit-for-tat and comes home to bite where it matters so much to investors in the markets. china was hit hard. its currency, stock market, and the u.s. by comparison has barely felt it. seemsin u.s. trading, it the uncertainty over what is next will get worse and worse. they kept stocks in a narrow range. haidi: what you do see with the volatility and selloff is oil down i almost 4% in the session. a little bit of a rebound. backing directly on the back of the details of the 25% on tariffs of $60 million worth of u.s. goods on the likes of petroleum and energy related products. kathleen: it's a little bit of a

u.s. relations with japan. yesterday they held their first bilateral trade talks and tokyo has not received preferential treatment since they were announced. >> for his academic work and the list goes on. dr. sheila smith is a senior fellow for japan studies. of books.author new politics.an asia is shaping japan's strategic choices. she serves to the u.s. japan's congress on educational exchange. japanspecial visitor from is a senior research fellow in independent policy research organization. and is also an adjunct fellow in washington and a senior research fellow at the japan and initiative foundation. he previously served as a director of foreign security and the global strategic studies institute in tokyo. weis a blue-ribbon panel have to discuss these issues. we are going to have -- go first because many folks in tokyo outside of the japan watchers' crowds may not have hurt him so he is going to give us a view of tokyo on many issues and then the others will not only be commentators b

david: we got u.s. gdp growth numbers and heard from the canadian foreign minister on the progress of talks with the united states about trade. joining us is the economic editor of businessweek. to what extent will the outcome of these talks they're having now with a deadline tomorrow with canada, could they affect gdp growth? >> they certainly can. the net export is a positive contribution to gdp in the second quarter. people think that is noise in the data but in general strong exports are good for gdp. if we have good trade agreement between the three countries, that would be good. david: we have the outlines of a mexico agreement and let's assume canada along the same lines, pro-trade or not? such as therriers requirements for $16 labor to be used for building cars. this ispoint, on net positive for trade if a deal is done. the alternative is having no deal in which case you go back to higher trade barriers in general. free agreement between these three key nations is a good thing and fascinating to

the u.s. for june. right now, we are joined by our chief equity strategist and one other test. let's look at the lear and what happened overnight. the central bank announced new restrictions. ticked up right, it some. they also impose tariffs on imports from the nine states on things like -- the united states on things like alcohol and cars. they keep saying they will not raise their interest rates. will things like this sure up the economy? >> i don't know. this is the second day for the lira to go up. we will see. david: markets coming down with the lira? is this cia of the storm or the end of the storm? >> it is more likely the eye. august 500 by itself, rising without momentum, so we were due for correction. the dollar has broken out versus global currencies, not just the lira, but emerging-market currencies. it is august, poster earnings loton, so there is not a for stocks to grab onto to move higher. i think the default will be continued weakness in the short run. alix: we see indonesia

now it's up to canada as the u.s. and mexico agree to revised trade arrangements the other partner in the trade pact formerly known as nafta remains tight lipped about whether it will now. also coming up plastic bags a terrible for the environment and now kenya has taken the world's toughest stance against them but up to four years prison time for using one. this is your business update on how to have free glad you could join me the u.s. says is still hopes to find common ground on trade with canada after reaching an initial agreement with mexico on to a new look now after the u.s. president is pressing canada to accept new terms for the way car imports attacks if not the president says he'd happily leave also out but that comes at a cost mutual trade between the three nations totals more than a trillion dollars annually canadian prime minister justin trudeau said he would only sign a revamped north american free trade agreement that is good for his country. he pledged to defend canada's dairy farmers and said progres

taylor: does the u.s. game whether canada mrs. -- gain whether canada misses the deadline and we go it alone with mexico? does the u.s. come out ahead either way? >> business groups and lobby groups and members of congress said they want to give nafta a trilateral deal and if the u.s. moves ahead with mexico and canada is left in the dust, they will be questioned from businesses about where does this leave their supply chain across the entire north american region. and what happens with the relationship -- trading relationships with certain .tates, canada and particular they will be a lot of questions and not a lot of answers immediately. there will be concerned about canada joining the deal and keeping this trilateral. romaine: bloomberg had out a report that about how justin trudeau is starting to see some pressure by his party. what is the potential political fallout in canada if a deal is not agreed to soon? >> the u.s.-canada trading relationship is huge. there is an election coming up in canada next

the u.s. loses control of the capability. the u.s.es the opportunity to train, influence, and maintain a military relationship with foreign forces, who now are introducing into their inventory a chinese, korean, israeli, etc. capability. and finally, with the introduction of a chinese or russian this dumb into the military inventory of that friend or ally, we now have a far more complicated future of arms transfer decision process aat is now compounded by prior u.s. denial, and in some cases, we complicate the potential for expanded diplomatic relations. i mean here.n what let's take india as an example. i have worked very closely with india in many years for dr. carter. years ago, we denied asa radar for the fighter and the french clinched the deal. i like the french, don't get me wrong, but i like american industry better. now, several years later, and i worked at this initiative with dr. carter -- we are johnny-come-lately to the effort. for additional aircraft capability in india, and now we are all in. allieslies -- we write -- w

a u.s. military-issued camera and he's got his own camera. the u.s. military-issued, he took a bunch of pictures with it. that went to the military after which tried to bury the whole thing. he had his own camera with him and then he took that home and did a slide show for his friends. and he goes, this is the stuff i saw in vietnam and his friends freaked out when they saw this and it eventually was reported. that's the newspaper that's first broke the story in november '69. it kind of validated the worst assumptions of what americans were doing in vietnam. most american soldiers in the region in vietnam behaved well. but my lai will suggest to every soldier. every marine is a baby killer. and it it really, really hurts the american cause in vietnam. any questions to this point? when you see how the u.s. and the south vietnamese were psychologically affected. how were the north vietnamese affected because of the tet offensive, were they in shock or more supportive of it? >> that's a great question, carlos. the north is a communist dictatorship. how d

the u.s. embassies in nairobi, kenya, and tanzania, at 8:00 a.m. eastern. after that, a look at the health insurance costs. later, the american enterprise institute hosts a discussion on u.s. policy in southeast asia. that's live at 12:30 p.m. eastern. >> next, lori wallach talks about the ongoing negotiations between the u.s., canada, and mexico on updating the north american free trade agreement, or nafta, hosted by the national press foundation, this is about 45 minutes. >> the stuff that's in nafta and part of the reason the fights are so fraught and why so many groups who wouldn't think we have a stake in the trade fight, like consumer groups like mine, is because of what's actually in the agreements. number one, with nafta, the core provision is investment protections. this gets to the whole job outsourcing thing, and i'm going to explain what part of nafta ask that so you can know whether or not if they get the renotion done it actually fixes that, which is what president trump said he

doesn't enter u.s. corporations and particular don't enter like africa and we're going to talk about african the second half so they're looking at places that the u.s. is not already powerful and like mexico like canada you can't really compete with those united states there. you know so they're they're they're building and they're executing their trade deals in places that like for a long africa these are not places that u.s. corporations are very active in but this is a way for them to continue to build their technology their innovation their you know first mover advantage of course the extractive industries like mining minerals energy or a what drove the debt and financial revolutions of the past few decades but we're entering now into a purely digital economy so these. areas that you mention there like sri lanka it is nothing to extract from the. core of the earth and run away with but they do have brains they have people and they are connected to a global network and they will be part of chinese in

u.s. interest rates. as i should before, that's an impetus, almost paying the market to buy the u.s. dollar. as long as interest rates are that low i will see pressure for it to depreciate. enda: what does the move for the yuan mean for the currency in terms of a trade war? are they not willing to use the yuan as a weapon in a trade war, or is it just temporary? we had d.c. talks not go anywhere thursday. then on friday morning chinese authorities to move. i will leave that to your judgment. factor? is still a cliff: from what we have heard and to the point of a trade talk , if we look at what some numbers of the republican caucus have said lately, on bloomberg, i think, it sounds like with the trump administration wants is to get some kind of a deal with canada, with mexico, and then turned their furnace -- full attention to china and the china threat. i don't think this trade war subject is going to go away soon, even though i hope that maybe we could see some advances through the washin

new u.s. tariffs on sixteen billion dollars worth of chinese products they come into effect in beijing responds in kind is there a way out of the race also coming up. caution about one of the biggest company listings in history the saudis insist iran close i.p.o. will not go. and how a dressmaker from broadway is helping to transform the lives of migrants in italy by turning them into tailless. this is your business update i'm having a home for him but then thanks for joining me the u.s. is a twenty five percent tariff on sixteen billion dollars worth of imports from china this is a second round of tariffs in response to what the trumpet administration calls beijing's unfair trade practices well china reacted swiftly with its own high tariffs on over three hundred american products as the trade vicious circle continues its dangerous downward spiral. new negotiations couldn't prevent the latest turn of the screw so far the u.s. and china have each imposed import duties on goods worth around fif

the u.s.nd mexico, that breakthrough deal. with that said, the peso fell because they are lacking some clarity, and also some questions on whether it could get through congress. meantime, canada is said to be encouraged. what does that mean for china? donald trump saying it is not the right time yet to talk with beijing. a a lot of stuff going on, but at least one breakthrough. haidi: it is really interesting. you have to wonder what kind of a rally we could potentially see in u.s. stocks, if there was a sign of a breakthrough when it came to trade tensions with china, given the exuberant rally we saw in response to this, look s like nafta but isn't. [laughter] as we wait and see whether canada can we get back in as well. ramy: a reminder of how u.s. stocks ended, but meantime, a couple lines just crossing the terminal. the foreign minister says she's returning tomorrow to continue trade talks. u.s.id just head to the trade representative's office in d.c., saying it was a constructive meeting

all day, u.s. trade representative robert lighthizer and canada's foreign minister will be continuing their negotiations in washington. tomorrow, they have a deadline. now, we are joined by lisa and michael. thosestart with negotiations both of the president and prime minister of canada had encouraging words yesterday. >> i think canada very much wants to make the deal. i think it is quite be very good for canada if they do. i think it is probably not going to be very good at all if they don't. david: at the same time, president trudeau said he very much thinks that mexico and the americans want to get the deal done. but i've said all along it has to be the right deal for canada. encouraging news out of washington, are they going to make it? lisa: it seems like, yes. it seems like everybody wants to make a deal. i was talking with the correspondent who says he sees this as a tweaked nafta deal. it is not an overhaul. it is also the easier of the trade deals to get through. it is actually encouragin

many u.s.many factories in the u.s., and many factories in china that sell in china figure, their figure is larger in the u.s. as opposed to china. there are estimates that the figure is about $400 billion. that may include the goods produced by u.s. companies in china, and sold in china. in fact, the u.s. enjoyed a slight surplus with china, therefore i think president trump is greatly mistaken to believe that the u.s. will be an easy winner in a u.s.-china trade war. haidi: i want to bring up this chart. taking a look at the impact of the yuan, the correlation between equity assets and currency had declined eight weeks in a row. we added another 16 today, the lowest since 2017. we are calling seven the line in the sand from the rhetoric we are getting from policymakers. is unders the currency pressure, are we going to see pressure for equity? >> yes. the currency is certainly under pressure. has affected chinese investor sentiment, but i think the bigger point with respect to the stock market

and to my u.s.government colleagues here on the panel and also in the audience, want to thank you so much for all of your work on the conventional arms transfer policy. the association has been working on this particular item for a number of years now, and please understand that aia and its member companies as well as the 2.4 million aerospace workers across this country are appreciative of your efforts to date. i'd also like to call out ambassador kaidanow. she's been a stalwart for a number of years. her team has been absolutely outstanding, and so laura's presence here on the panel should not go unnosed. -- unnoticed. they have been at our call, very responsive to issues that we bring to them. want to really thank you for that opportunity. want to very quickly go through a couple of things. the first is the strategic linkages that andrew spoke about. the second i want to talk just a little bit about what the aia recommendations were for government action, talk a little bit about the country relat

u.s. arms transfer policy. we are excited to have the ambassador with us to give us remarks on that at a stellar panel after that. i will begin as we always do with our obligatory security announcement because we have thought about what to do in case of an emergency. we want to let you know we have plans and if something were to happen, i will be your security guide and let you know where to go, either out the way you came in or in the back, depending on what kind of emergency might arise. what we do not expect that today. i also want to thank sponsors who make these events possible, including general member support, which has a big role to do with today's event, and our sponsor who helped us make it possible to do today's event. i want to thank our friends at the state department very much for supporting us. and being able to talk about this topic. i think it is timely. obviously change is afoot. you are seeing dramatic growth in the level of the dollar value in the u.s. arms exports, and

the u.s.. we are seeing a quiet start for the asian session. .1% --seeing shares of .5% on the sessions. take a look at currencies and the offshore renminbi. still holding steady here below the 680 handle, so comforting for the pboc. the aussie unchanged with the kiwi at 67 u.s. cents. jessica summers joins us from new york. jessica: president trump warned them to be careful. he went on to say google, facebook, and twitter are treading on very troubled territory and said it will be addressed. liberalgoogle favored news outlets. he offered knows of vinci asians for his claims. huawei appealing -- appealing to the federal trade commission. it says restrictions based on national security concerns harm consumers by reducing competition. it insists it is not a danger to the u.s.. huawei and its rival have come under increased scrutiny. japan is witnessing the biggest financial exit is in more than three decades. overseas investors have dumped almost $35 billion worth of local equities this year. th