u.s. and china at the end of the last presidency. in the u.s. and it failed the effort and probably rightly because my understanding is the chinese negative list was unbounded belong. nonetheless as studies have shown repeatedly and with respect to china the best way to integrate economies in any way if there cross-border to a direct investments. this has economic benefits in terms of transferred expertise. this has direct job benefits for creating new jobs. this has a political benefit as we saw from japan's investment in the u.s. following the trade difficulties in the 80s and early 90s. were not going to turn around and do a bit tomorrow but those responsible parties on both sides of the pacific should be realizing that is the goal we should be moving toward in the future. thank you very much. >> thank you very much. my colleague will now come up. [applause] >> good morning everyone. my presentation consists of some of the takeaways from the articles that were contributed to the joint report. i will not try to be exhaustive but i will focus on

u.s. trade policy in china is not possible because the u.s. xports to china is much smaller than china's exports to the u.s. u.s. export last year was about 130 billion-dollar with china exports at $500 billion to the u.s. so dollar for dollar only to a limit. we are thinking about an arbitrarily bad situation. president trump once mentioned china should reduce surplus by $100 billion. that's probably a number that we use as a reference in this hypothetical numerical analysis. >> the trade war would have to go well beyond. >> of course. yes. >> just for the record, i don't want to get into a back-and-forth but the numbers he gave on inflation coming out of the trade war between the u.s. and china, for the u.s., at least in my opinion would be vast exaggerations. just as the scale is different on that issue, i think the idea there would be significant inflation in the u.s. from this is not something i would rely on. >> thank you. >> other questions? >> okay. >> my name is joe i am with new rules for global finance, a nonprofit organization in th

u.s. trade policy in china is not possible. because the u.s. exports to china is much smaller than china's exports to the u.s. u.s. export last year, about $130 billion products to china, where china exports $500 billion products to the u.s. so dollar for dollar, only to a limit. so we are thinking about a arbitrarily very bad situation. so if china -- actually, president trump once mentioned china should reduce trade surplus by $100 billion. that's probably, you know, a number that we used as a reference in this hypothetical numerical analysis. >> the trade war would have to go well beyond -- >> oh, yeah. well, of course, yes. yeah. >> just for the record, i don't want to get into a back and forth with my friend jimimg, but the numbers he gave on inflation coming out of the trade war between u.s. and china for the u.s., at least in my opinion, would be vast exaggerations. so just as the -- the scale is different on that issue, i think the idea that there would be significant inflation in the u.s. from this is not something i would rely on as a

u.s.. if china eases pressure on the trade front with north korea, it would undermine the u.s. it is critical that china plays the role with north korea. remember, trump himself tweeted -- where would he go hard on hen he could on north korea? so this will be critical in the border trade relationship with u.s.. yvonne: do you think things have changed since the singapore summit, perhaps president trump separating the need to fuel geopolitics with the trade war? enda: there are several different fascinating theories on this. kim is now in the u.s. orbit the orbit.e is in the china china is still an integral part of the north korea-u.s. story, and they still need china to play a role on the sanctions front, which they need to continue to enforce them. there's is a feeling that perhaps strong is constrained -- perhaps trump will be constrained in how hard he can go a north korea. yvonne: thank you, enda curran, bloomberg's chief asian economist correspondent. still ahead, china markets shook investors yesterday with a 4% plunge in shanghai. we look at the pboc is calls for calm. ra

u.s. is also pushing for structural changes to china's economy those talks are being led by u.s. commerce secretary wilbur ross who arrived in beijing on saturday washington and china have threatened to for tat tariffs on goods worth up to one hundred fifty billion dollars each the u.s. wants china to buy more american goods to reduce the trade deficit between the world's two biggest economies were florence italy joins us live now from beijing florence so these talks are broadly about the u.s. trying to reduce its trade deficit with china so how is it proposing to do that and what a both sides actually want. that's right now in the u.s. at the moment buyers about four times more products from the chinese than it sells to china and u.s. president donald trump says he has said he wants to reduce the annual trade deficit between us and china by about two hundred billion dollars within the next two years so how are they proposing to do that well the first step is by getting the chinese to buy more u.s. products now there was some sort of great commitment that the two sides had reached

chamber of commerce in china discussing the looming trade war between the u.s. and china and here of suppressed facts in all of this stay with us. thank. you. properties use collateral and they lend against property and what happens prices are artificially pumped up and jacked up and some people can't afford housing due to the way to fix the housing problem in the u.k. is to take away those fractional reserve banking as property so that prices would come down to the level that is traditionally affordable by the average person in for a. tough . haul moral of kids' lives. cut. loose and limited funding to. those who don't consume don't jell ugandans enjoy the whole joyful deal and the saying i'm done we'll soon enough that equal one to two inches also moved away from the stance me going on in condolence because i don't need a little name to know. to those moodiness listeners this is also the answer to all . and we're back with your good care former president al qaeda chain. we're of commerce in china discussing whether we're on the verge of a global trade war so tr

chamber of commerce in china discussing the looming trade war between the u.s. and china and here prospects in all of this stay with us. are survival it looks like the start. repatriation will get the rest seventy. delegates every track record. to the kids in complete saying oh boy tonight. we can. get. home. on the which i did. eventually got to move this because i'm listening to columbia to ensure. the last. few months. i. and we're back with your good care former president of the chamber of commerce in china discussing whether we're on the verge of a global trade war so trump is saying that europe and came about he has been playing to us for years what their own tower is that he's only correcting things that were unfair carry agree with him. of course not i mean there has been a common understanding about open markets the european union is exceptionally open canada has been a very good partner to the united states and the nafta agreement there's a lot of rhetoric go it coming out of there frankly peridot with virtually no economic understanding it's very sad t

u.s. stocks. china and europe from its retaliation to president trump's threats. >> tech shares were hardest hit but the nasdaq down more than 2%. the u.s. familiar also weaker. >> officials are downplaying trends to limit chinese tech on national security grounds. >> but some american icons are feeling the pain. harley david son and jack daniels among the losers as trailed turmoil bites. >> hello from sydnie, just past 58 a.m., i'm haidi lun. >> and just past 6:00 p.m. here in new york, i'm thrath lean hays. a lot of the action in washington where trump's national trailed director peter navarro tried to backpedal on stories over the weekend that the trade secretary is getting ready to approaches another way to curb technology investments by singleling occupants china. this as chinese and european officials have been meeting in beijing. haidi: that's right. very much another session dominated by trailed. the french ambassador saying he hopes the u.s. soon sees tariffs are bad for its own economy but tru

u.s. and china ramp-up.e past way for hours and indeed from when the news broke first late friday, we have seen moves lower in commodities both soft and hard, and equities have been under pressure as well. .hat is what we will be seeing hong kong equity futures and mainland chinese equity futures both pointing lower this morning as we are seeing with the strengthening of the yen. it's putting pressure back on risk assets at this point. i suppose the light at the end of the tunnel, if you will, if we play this through was an observation made by a chief economist at deutsche bank overnight. what you may have here in their view as a result of this is a potential for looser monetary policy in china as a result of these tougher, more stringent tariffs from the u.s. they are certainly of the view that if this actually happened and ends up being set in stone, we may have two more additional in china andrr loosening of loan requirements and the housing markets and some of the tier two and tier three cities in china.

u.s./china relations. head to cnbc.com the e-mail address, you can get ahold of me personally at steve underscore sedgwick. >>> change in spain or is it interesting. we're going to hear exclusively from the prime minister carlos torres vila. a new prime minister is sworn in we'll have that after the break. these birds once affected by oil are heading back home. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home >>> just take a look at air france klm shares which have been absolutely abysmal over the past three months. down 24% including the fact that they've had a 7% move to the outside. 7% higher. addressing some of those big declines over the last three months this is after accor shares are moving down 4.45 accor is considering buying a possible stake in the carrier. they have previously discussed a potential collaboration with the airline but added there was no guarantee early talks would lead to an agreement. the government is intere

china. a spokesperson says if the u.s. lls out protectionist measures that harm china's interest, then we will respond immediately to safeguard our rights and interests. joining us from hong kong is our chief economic asia correspondent, thank you for staying up late. what kind of response can we expect from china? >> good morning. as they china has been consistent from the beginning, they said they are willing to they have alsoar, said it they will retaliate in kind. we will see how they respond. previously, they want they would go after agricultural imports from the u.s. and they would target u.s. investment in china. here.are huge companies so they could respond with tariff barriers and nontariff barriers. i think there will be a prompt response at a beijing. -- out of beijing. alix: the qualcomm bid for nxp was just approved yesterday by chinese regulars, so how does that make sense when the tariffs are coming and is there risk in that? >> that is a for observation. ztequalcomm transaction, is separate, this all became

china has recently said they want increases on u.s. tor trump said he wants to revive. 2017, china imported $400 million worth of coal from the u.s. as isr pressure point, oil. china is the third largest buyer of u.s. exported oil. the tax from the chinese seem to be pressuring the farm belt states andlso the commodity producers, hoping it will lead to some kind of change in stance from the white house. yvonne: how is this likely to play out from here? have we reached the point where both sides can't exactly back out from these tariffs now? om: there is always a chance between now and july the sixth, that someone pulls the rabbit out of the hat. as this morning was suggested, it is looking unlikely. whether or not trump then goes ahead with his 100 billion dollars worth of tariffs is something th ibeing question . it would raise the bar significantly. in terms of how china would react to that, it is unlikely to match that $100 billion. they might tackle u.s. investment in china, particularly around corporate layers that are raising thos

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization in beijing is i'm the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president make so much of this trade deficit and it's one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well it seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with canada when in fact that is not true and in terms of china i

u.s. is in a strong position, china needs with the u.s. is offering. it could play out, it more likely the actual market prices, of flash and ram will more inhe prices the short term. emily: obviously, china has their own ambitions and they could to miss -- they could turn this into an opportunity, the chinese chipmakers. romit: easier said than done. this is why -- they have this massive trade deficit last year, it is because they lack manufacturing capacity, they do not have ip for some important technologies, ian referred to d-ram and nam, they do not even -- wayfarers,s they are paying premium prices for that. so i think for all these reasons, you know, china is in a difficult spot here. emily: the chinese goals, are they unrealistic in the chip industry? ian: that remains to be seen. this will act as an incentive to accelerate them, but it is hard. everybody thinks, how hard can it be, but these are the most complicated pieces of industry equipment in the world, it has been incredibly difficult and in has been tried to do this for a long time. the

u.s. and china now u.s. trade officials had arrived in beijing hoping to achieve a few things they wanted to press the chinese for firm commitments now the chinese had said they would substantially increase their purchases of u.s. agricultural and energy products the u.s. were hoping to push them for a specific figure perhaps persuade them to enter into long term contracts the us also hoping to discuss in better protection for intellectual property rights as well as other structural changes to the chinese economy which they say allowed chinese firms to compete unfairly but in the end it appears that none of those things have been achieved and instead china appears to have fired a warning shot at the u.s. now the state media is quote is saying that the chinese are now and saying that any agreement reached between china and the u.s. during these trade talks will be void if the u.s. pushes ahead with imposing trade sanctions including terrorists now this is clearly a reference to the u.s. threatening or really

u.s. and china.onald trump coming out with yet an additional $200 billion of tariffs on chinese goods after raising it 10% p.m. you can see the dow down one point 15%, six days down, six days in a row. the s&p 500 down .4%, the lowest since the start of this month. the nasdaq also down about .3% but it was pretty much a mild across the board. we were at lower levels than these numbers you are seeing here, but we did repair some of those losses. taking a look at the flight to polity, the flight to safety, the bloomberg dollar index rose about .2%. by about twoailed basis points. it had been as low as 2.85%. thathad been higher, but retraced a little bit and the japanese yen, we did see that at 09. haidi: it feels like this is a week that investors have set up and started paying attention, perhaps the commendation of not just rhetoric but substance to the mix, doubling down tariffs. taking a look at asia, it's not looking too bad. futures looking mixed, trading underway in new zealand, mild losses ther

u.s. and china.usiness perspective would like to see countries around the world work together to grow the economy rather than contribute into a slowdown. >> you can see more of my interview later in daybreak asia. that is it 9:40 sydney time. 7:40 if you are watching in new york. >> great conversation. daybreak asia is up next. happy friday. >> happy friday. not just trade tensions but also tensions in opec in vienna. oil minister walking out of this meeting. it looks like the rest of the opec members say that they could have a preliminary agreement. we are honing in on what that number is going to be when it comes to how much they can raise output. the market currently is pricing in around an increase of 400,000 barrels. we will see if we see anything higher than that. in just a few minutes we are also going to be talking about where we are headed is in terms of equity. we will look at opportunities around the world that coming up in just a few minutes. is it for daybreak australia. daybreak asia is

china has tripled the u.s. periods. also making the unicorns at a faster pace and united states. one of china's largest angel investors has played a part of that. they have funded the other 100 billion dollar companies since 2010. hannah told us what she looks for in her investments. >> we have about ultimate points since we started seven years ago. they are across many different sectors. in the early stage it is not as much about the idea as the person. ideas can change. we're looking for people who we think can create billion dollar companies. that has always been our method. that has not changed. we have of sectors, been disrupted in the past year. they came out with many programs. basically, instead of downloading an app, you can imagine people are using a mini program. that creates a whole new ecosystem. whether it is e-commerce or gaming or sharing, there is a lot of application. consumer trends continue to be interesting. this is like a new concept grocery store. that is completely disrupting retail. it is all abo

chamber of commerce in china discussing the looming trade war between the u.s. and china and here ups prospects in all of this stay with us. i think it's trying to imagine that i say things just to be controversial and you would not withstand the level of attacks of police harassment of detention of having my passport take ten of social services being called on my children of my family being on threat of coming to jihad this plot to behead me in nov twenty seventh i don't believe you would withstand those levels of people trying to trying to silence you if you didn't believe what you senator. this is rather trendy over the past few years to talk about the new world order fair enough the recent g seven in canada in trying to engage north korea for just two weeks. pax americana is undergoing a significant transformation. and we're back with your good care former president of the chamber of commerce in china discussing whether we're on the verge of a global trade war so trump is saying that europe and canada has been playing the u.s. for years with their own tower e

well china has been stealing secrets from the u.s. and other multinational businesses they engage in piracy they require firms to to share technology with joint venture partners and then they throw out the u.s. firms and keep the technology they use state owned enterprises including those controlled by the chinese army to take over targeted industries so all of these are forms of unfair trade which are outlawed under international trade rules and president trump is just enforcing our rights under previously agreed trade agreements and china says it's already retaliated with tear of some thirty four billion dollars of u.s. goods so where does this all leave those trade talks between both sides that seem to be going so well but i think that we have a lot more ground to cover in these trade debates but i think it's important to remember that china has much more to lose in this kind of. a trade tussle than the united states they export much more to us than we export to them. and they're much more dependent on trade overall as a share of t

u.s. and china. >> a couple times. tly, i want to say i am not qualified to talk about the impact of trades between the u.s. and china. however, from a business perspective, we would like to see countries around the world work to grow the economy rather than computing to a slowdown. ramy: you can see more of my interview with singapore airlines's ceo on "daybreak: asia" in about 10 minutes's time. yvonne: intel's chip maker ousted for inappropriate relations. 's look at the chipmaker leadership crisis. this is. -- is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. yvonne: it is a: 30 a.m. in tokyo, 30 minutes away from the market open. breaking numbers coming through from japan.

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization and beijing is on the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president make so much of this trade deficit hadn't one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well is he seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with canada when in fact that is not true and in terms of china

china unveils its list of u.s. foods in the hot seat. china targets --ultimately be have a lot of volatility but the trend is still intact. alix: there was a really bullish report on oil saying that the base case is one million barrels per oil a day, but net it would only be 500,000 barrels more per day because of what we are losing from venezuela and iran. >> right. i think overlaying all of this is donald trump's comments, his thoughts on oil prices. he obviously thinks they are too high, and he viscerally thinks that opec is controlling things and he would like to inject some moderating influence on prices. jason: i want to stay without geopolitical angle, because clearly you cannot extricate oil from the broader political landscape. russia has a very strong voice here. what is the backdrop politically? >> it's an interesting dynamic, right? we're -- obviously donald trump and others are talkiut the russian collusion issue, meanwhile he's asking for an increase in supply, which the russians support. it's an interesting dynamic. i don't

u.s. companies by a lot of components from china. we are going to see an impact chineseeven though policies and unfair trade practices and forcing technology transfers and localization of data are harming u.s. technology companies. they have been forced to deal with restrictions for years. to restrictions continue grow rather than frank. so there is a problem for technology companies as china once to indigenous a lot of manufacturing in china. however, tariffs are not going to help solve the problem. does it mean for china-based companies given what is on their list and our list? we will have to see what the next moves are, but it creates a great deal of uncertainty. for foreign companies invest in china on how exports will be affected and whether they will be hit a retaliation. for chinese owned companies, and a lot of uncertainty heard will they be able to do acquisitions in the united states? will further products be hit by additional tariffs? we have had in this large trade relationship a fair bit of predict ability. a lot of it n

u.s. and china.s may not escalate as badly as we would fear just a week ago, but who knows? maybe by tomorrow they will get a new tweet and everything is all bets are off again. rishaad: and the day after this could be another one saying they are back on again. really living in volatile times. >> pretty much impossible to plan if things can be wiped lean with a tweet essentially. rishaad: the world's second biggest supplier of semiconductors used in cars is looking to get out of its comfort zone. aerospace, health. ell us more. not be a brand familiar to a lot of viewers but they are the second biggest in automotive chips. they make microcontrollers, tiny little computers that go into pretty much anything that has electricity. we spoke to the c.f.o.. he said the company is looking at five to six overseas-based companies for investments. they have plenty of exposure to automotive. the next step would be to go to aerospace and he will care. which makes sense. if you think of their retirements for chips

u.s. president donald trump has been hammering china on trade for months. protection everybody take. a look at some of the we help these countries militarily and. what point to stop the u.s. tariffs target industries tied to china's made in china twenty twenty five a blueprint to dominate high technology industries they're also intended to punish the chinese for what the u.s. calls intellectual property theft and unfair trade practices one trade expert says a u.s. trade battle with china will impact global markets it creates instability. reduces particularly investor uncertainty for long term investors private business capital expenses and these types of things trumps summit in singapore may have strengthened his determination to act for years the u.s. looked to china to help restrain north korea but convinced he has built a relationship with north korean leader kim jong trump perhaps feels he's in a stronger position to be tougher on trade with china the trade war seems to have only just begun trump has threatened to slap taxes on more goods if china goes ahead with the tariffs chine

china exports so much more to the u.s. than the u.s. d to china that they cannot go for -- go tit for tat on tariffs. chinese problems have problems on debt, bankruptcy, hurting exports to the u.s.. domestically. if the economy slows down, this is the thing that supports xi jinping's ultimate power, isn't it? jude: i think we should always remember that china has politics, too. even if we find that we are not able to get much insight into it. there are mortals. i should mention right now that the beijing government is undertaking one of the largest political restructurings in the past four decades. it's completely revising and restructuring its entire governme. it's as you mentioned facing some economic headwinds, especially when it is looking at its exposure to trade here. so i think we would do well to remember that there is on the , theage side for china greatest leverage that china has is its ability to project a lockstep unified message vis-a-vis the united states. they do not have a free press wandering around the halls of its lead

meanwhile the two opposing parties are stoking the fire china accuses u.s. president donald trump of blackmail and says it will again retaliate for the latest set of terrorist threatened by washington country china's retaliation of the first round of u.s. tariffs trump is now targeting an additional two hundred billion dollars worth of chinese imports with a ten percent levy that brings the total amount of tariffs trump a second slap on chinese imports up to four hundred fifty billion u.s. dollars. shoppers in china might not be interested in every twist and turn of the trade dispute between their country and the united states but the tit for tat spot could soon become apparent in their grocery bills these aren't jets imported from the u.s. are among hundreds of goods beijing has backed attacks in response to a fresh set of terrorist threats from washington. to move makes good on china's pledge to retaliate up to the united states imposed an initial set of tariffs on fifty billion dollars worth of chinese goods. but if you needed further proof that china is n

especially from china into the u.s.. "from china into the u.s.," the fallout will be felt more broadly than anyone quite anticipates at this point. i am a: deborah, maybe bit naive in asking this, but why isn't there an adult conversation going on about value added and services? deborah: you have a couple of challenges. i'll answer the services question first. this is an administration in washington that is uninterested in services. their focus is completely on manufactured trade and goods and they have no interest in services. if they did, we wouldn't be in this situation. they would recognize the united states has a surplus in services in general with most of the countries they are complaining about. in terms of, why are we not talking about supply chains or value addition along the way, many of the team members that are driving u.s. trade policy have, from an economic point of view, a very rudimentary understanding of how trade works, how economic works, how supply chains work, how businesses work and as a result, they

now at the people most likely to feel the pinch of the terrorists first while china is aiming at six hundred fifty nine u.s. exports but with a focus on grown produce american soybean farmers send sixty percent of their crops to china and are likely to be the first to suffer but chinese pig farmers will also be hurt by the tariff on soybean as they use it for feed there are other sources but it's likely the chinese pork consumers which number the biggest in the world will be affected trumps tariffs target mainly chinese industry so far it seems that will not have much of an effect on the price of consumer goods in the u.s. at least not right away out of there was florence levy joins us live now from the chinese capital beijing front so just talk us through beijing's reaction to these trade tariffs imposed by donald trump. well i think the chinese of fear is they are absolutely furious at what's hit them and they are hitting back they're hitting back hard we heard the chinese commerce ministry issued a statement shortly after trump made his announcement and they said they would respond with taxation measure

i think as we are talking about all these short-term u.s. chinatensions, i think it is important tor in mind longer-term positive that could come to australia. our tim across the region has been writing about how we are at $1.5 trillion of spending over the next 10 years. increased infrastructure spending, road p everywhere from bangladesh to for iron so increases ore. and australia is well-placed for that. ramy: that is a perfect segue into my question about commodity prices looking ahead. of course, the avs just came out with numbers. miners up 11% yesterday. and do you think that this is maybe a saving grace moving ahead? and to what degree can this be counted on for support? >> we would not think australia's commodity prices should fall to much further from here. iron ore prices, number one for australia, currently at 64, it could get into the high 50's, that is in line with consensus, the official forecast. but we are not too worried about that. we are watching it closely, of course. our team is blue consensus in terms of the china gdp foreca

u.s. based companies importing products from japan and china the u.s. branches of japanese manufacturers of cutting tools and auto components have been approved to use special steel imports from japan while there were 50 requests turned down, more are being processed and exemptions will be announced as they are processed. there may be more luck in seeking exemptions for individual high performing items that are hard to replace at the tokyo stock market today investors were quick to snap up a japanese firm that won an exemption which saw it's stock soar today >>> iraq's oil minister says he will try to compromise between those who want to raise production and those who want no change the price of oil has dropped after iran signaled it may be willing to find a deal on a slight raise for output levels. is going back to bed, has not done that. he's still chasing down oil ministers. what can you tell us >> it's about the base level as well this is an important point when we get that announcement probably tomorrow afternoon and they're looking at the oil pric

u.s. from the high-tech goods imported from china. was deeply concerned about the militarization of the south china sea and an issue that many military analyst has .een beijing, thezie in kennedy school of government, the former u.s. secretary of defense and also special defense adviser under president reagan. he is also the author of a recent book on china and the u.s. entitled "destined for war." thank you so much for joining us , and following the singapore summit, do you believe that president trump should be getting more creditwar." thank you so much for joining fe slightest amount of achievement that came about that. >> the overselling of that or the under appreciation of the other. much,d say that pretty the critics have drummed themselves up with such predictability. in terms of the bottom line. that we would appear in any feasible alternative. i was say that this gets good marks. deficit going both ways being filled out a little bit more after this meeting? >> if we listen to both trump , we would believe so. what they actual

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization and beijing is on the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president makes so much of this trade deficit had its one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well it seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with counted when in fact that is not true and in terms of china

u.s. and china, try to find other markets. of. e volumes crude and gas these days and it will only increase in the next few orders. those have to find a new market. the u.s. will probably be able to do that because they're crude is lighter and sweeter and there is demand for that. china loses out on that. growing marketst by volume. they have to find other markets for their own resources. the real risk is consumption slowing down. rishaad: think you so much. let's move from oil to the soft commodities and look at some of the farm commodities on china's hit list. china is the world's biggest consumer of soybeans. cb: we have already seen a slight shift. they are buying big volumes of brazilian soybeans and shunning the u.s. in the last couple of months. we expect to see premiums rise for the next few months. we are anticipating china to --tinue buying from his oh from brazil, a lot lighter than they normally would. soybean tariff had been flagged in late march. they have been able to prepare themselves a little bit. the big question

u.s. and china -- tradee a treat negotiations. the u.s. demands for changes it wants china to make the negotiations have really barely got off the starting block. i think this was always in the works. there were technical delays for one reason or another including north korea. i think trump has wanted to go down this road for a long time -- he has opportunity. now we will see how it plays out. tom: what do you think of the chances of china and the european union and canada, others, coordinating at least to some degree to push back against the u.s. on trade? edward: i think you are seeing some degree of coordination. what you are seeing is each country use an exact mirror retaliation. you mentioned the $34 billion on july 16 and another $16 billion for china. at ithmirror image of what the u.s. will do to china. the canadians, mexicans, europeans have all done the same thing, retaliating to the point of u.s. tariffs but nothing further. all of the countries are trying to target what they see as political vulnerability in the united states,

a trade route between the world's two biggest economies china and the u.s. has escalated president donald trump says he will impose twenty five percent tariffs on fifty billion dollars worth of chinese imports then u.s. was being taken advantage of beijing promised to retaliate quickly with its own tariff of twenty five percent on u.s. goods also worth fifty billion stars in july alan fischer reports from the white house. u.s. president donald trump has been hammering china on treat for months and a morning on the white house north lawn where he held the surprise news conference he confirmed he was going to act we need protection everybody take care of the european union made one hundred fifty one billion dollars you know where she would be if you look at the total you got china if you look at your job or you look at somebody and we help these countries militarily and over the years but what point does it stop you know the u.s. will impose tariffs an additional tax on goods imported from china the industries to be impacted agriculture or to undertake sector.

u.s. . from china in the amount of five hundred billion dollars and china imported u.s. goods in the amount of one hundred thirty billion dollars so if you look at those numbers the possibilities of china at first glance seem to be limited if you look at tariffs but having that said china did mention that they also could take qualitative steps are not just quantitative steps what they mean is that is that for example they could start a boy called for u.s. products that could disrupt the supply chains for example for the high tech industries and that could turn out to have unintended consequences for u.s. corporations and also for the u.s. economy talking about the consequences to dell plummeted for the sixth consecutive day already one of the sentiments on the ground what are you hearing. there so far representatives from the ministration call it a trade dispute would not trade war and there's still hope on wall street that all those wearable threats are actually part of the negotiation strategy and that at the end we will not see those terrorists being implemented to but

for jd, which is focused on china, this is a step to become more global. in a time when trade tensions between the u.s. and china are high. founder richard mune told me in an exclusive interview, the tensions have given to hold off on bigger investments in the u.s. >> i think our biggest impact our confidence. it's hard and a hot of -- we want to wait for a while. a lot to go to the u.s. market. we have to wait. >> at part of this deal, jd will be able to sell products tohr americansgh google shopping. as for the u.s. tariffs, he sa they would b bad for american brands in china, but not necessarily for tm, but partnership shows whatever the political tensions, the business community wants cooperation into the future in u.s. china ties. >> rent a center is being bought and that's where we begin tonight's market focus. the furniture and electronics rental companyas agrowed to be taken private by vintage capital for about $1 billion. rent a center had been dealing with pressures from other activist investors to sell itself. shares popped by 22% on the news to $168. >>> elsewhere, pt skrrks theer putices

also on the show top apple supplier foxconn says the u.s. china dispute is not about trade it's about technology. and an idea that could save the oceans will take a look at a project aimed at ridding the pacific of half its plastic trash within five years . it's time for business on the w i'm here to get us welcome to start where all eyes are at this week in the g. seven summit in quebec a special summit because of donald trump's combative mood he set the tone even before his departure from washington on friday list right now we are not going to live with the deals the way they are european union reaches very unfairly canada very unfairly mexico very unfairly with that being said i think we'll probably very easily make if you. striking deals like that might be easier said than done though the summit has traditionally been about seeking common ground but u.s. tariffs on steel and aluminum have set trump and the u.s. on one side of the trade debate and leaders of the other six nations on the other a situation that has let the media to dump the event

u.s.-china tensions for holding up the merger, but at the same time, qualcomm has also benefited from u.schina tensions because it's squashed this hostile takeover broadcom was trying to do for qualcomm. qualcomm has been on each side of this divide. ♪ >> football for the next couple of weeks. we are getting the first life pictures out of moscow. if you are a bloomberg user, go and do your bracket. and you can choose who will be the winning team. >> there are about 30 thousand functions on the bloomberg, and we always enjoy showing you are -- our favorites on bloomberg television. maybe they will become your favorite. here's another function you may well find useful, quic go. it will lead you to quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. >> after the end of the korean war, north korea was virtually cashless. everyone worked for the state and was provided for by the state. and in the communist bloc context of the day, it worked. in 1989, north koreans were more than twice as wealthy as their comrades in china. >

u.s. and china during these trade talks will be void if the u.s. goes ahead with trade sanctions including tariffs now this is clearly a reference to the u.s. about face that happened just a couple of days before the trade talks started the u.s. had said it was going to push ahead with twenty five twenty five percent of tyrants on as much as fifty billion dollars worth of chinese goods the final list of products affected by these tires we can expect an announcement to be made on the fifteenth of june so now in china so now this is despite the u.s. having said that any tires would be put on hold while these trade talks are ongoing now before the trade talks this round of trade talks started some analysts had said this was perhaps a tactic by the u.s. to strengthen their hand at the negotiating table to show that the gloves are off when it comes to discussing trade issues with china but that strategy has clearly failed with china now and saying in no uncertain terms that it's not going to be pushed around does this mean china and the us are closer to

u.s. and china now >> sure. obviously there's enormous interest, i've been bombarded with questions just today on the u.s. approach to u.s./china trade relations and also with respected to investment. your previous segment touched on the cfius process. enormous interest here focused on the u.s./china trade relationship >> have you detected concern from businesses that you have been speaking to that ultimately even if they decide to make an investment in the u.s. it could get knocked down by congress with this new legislation? >> certainly i have not heard much about congressional roles, but there is a concern that there's a different investment environment in washington. not only washington but in a number of countries around the world. that has gotten the attention of outward bound investors in beijing. so they understand there's greater scrutiny they have to pick their investments much more prudently with the understanding that there's a political overlaw to screening for that investment. >> one final question

u.s./china fallout. where the china are placing tariffs on u.s. imports.australian market that could benefit from that and step in and pick up the slack. yvonne: what about for the banks? it seems like they have seen the worst of it. will they pick up any bargains? with the financials, i am not sure. we have the third round of commission coming. we are focusing on the agricultural sector. it could war on the heartstrings of many australians and we could see more fallout coming in may australian financial sector are. i would not be ready to step in and by the financials yet. they are trading at around five your lows. we could see that pick up once we see the world commission come to an end. yvonne: eleanor, saxo bank market strategist. and get your day going. for bloomberg subscribers goto dayb on your bloomberg terminals. it is also available on the anywhere app. you can customize your settings looking at the news on the industries and assets that you care about. this is bloomberg. ♪ quick check of malaysia's business headlines. their food giant is se