u.s. faces a trade deficit. >> the u.s. trade deficit has risen more than $100 billion. gdpland, china scales back projections. >> that is the weakest target china has set itself for growth. rosalind: investors await a deal that will free both economies from the pressures of a trade war. >> it is not making us richer. rosalind: huawei tries to mend fences in europe. >> huawei will say we are not a company that does any of the allegations put forward by the u.s. rosalind: carlos ghosn and a battle in court. the ecb gets back into the lending game. >> stimulus will continue to be provided. >> will this get inflation towards target? rosalind: larry fink in an exclusive conversation. >> i would call this a goldilocks moment, not so bad, not so good. rosalind: plus, bill gross reflects on bond trading as he bids farewell to the business. and his successor explains how he is reshaping the fund. >> the philosophy and process will be the same. the risk profile will be slightly different. rosalind: it is all straight ahead on "bloomberg best." rosalind: hello and welcome. i am ro

u.s. with car parts from europe. as a whole, european tradetment supports 7 million jobs in the u.s. we have a strong relationship and do not want to jeopardize this. as i understand, nobody is asking for these car tariffs in the u.s., so if that were to happen, and i hope that will be the case, we will have to impose rebalancing measures, and our relationship on other areas would be difficult. >> we heard about mario draghi protectionism as a contributing factor in investment slowdown, and a lot of european companies sell a lot to china. to what degree would you say that the trade threats and actions, vis-À-vis china, has contributed to the slowdown in the european economy? >> most international organizations, and many think tanks have warned that the escalating trade war and protectionism is bad for the global economy. tariffs are not making us richer in any way. of course, we are so interlinked with each other, the big economies. it has an effect on all of us. it deteriorates the situation. it would affect jobs in the u.s. >> from trade to

u.s. trade deficit surges to a ten year high another sign of the country's strong economy and not the best news for its deficit hating president so what happened i'll give you the details. also the world's biggest tourism show gets underway in berlin but the choice of this year's showcase country proves controversial due to claims of state sponsored homophobia. i'm stephen beers in berlin thanks for joining us. the u.s. trade deficit surged to a ten year high in twenty eighteen despite the trumpet ministration placing tariffs on a large range of imported goods the commerce department said almost nineteen percent jump in the deficit in december contributed to this six hundred twenty one billion dollars shortfall slowing global growth and a stronger dollar are weighing on demand for u.s. goods last year the u.s. posted record trade deficits with china mexico and the e.u. . and let's go now to our financial correspondent in new york who is a the we still haro jose this will obviously be taken as ba

reporter: the u.s. trade representative said yesterday that he may not need congress to sign off on any type of understanding between the u.s. and china in regards to a trade deal. do you think that congress should have the opportunity to weigh in? mr. mccarthy: if it's not a treaty, then the constitution says we don't. i support the president in his effort, trying to have a more level playing field with china. let's wait to see what it is. if you simply check via constitution and other authority, that is true. reporter: on the cohen hearing, democrats are now saying they want to hear from donald trump jr., allen wiseleberg, some of the allegations that cohen made. what do you make of that? mr. mccarthy: that they're doing exactly what they said before the election, that their whole goal was to try to impeach the president. it's not about the challenge we face as america. it's not about the challenge that we face to make the next century ours. this is purely political. to even have a hearing, while the presid

u.s. war in global trade. and for more on this let's talk now with our financial correspondent in new york jose luis de haro jose officials in india and turkey have said that u.s. small businesses and consumers stand to be hit by this decision what do they mean. general steven a day media financial impact is a relatively small since a u.s. companies saved around three hundred thirty five million dollars in goods from india and turkey last year according to some estimates and those goods included motor vehicle board to building a stone and threw needed cables among all those that said those savings will be gone so somehow they could be put great as an added new tax either on u.s. companies or the usa consumers had but what war reese now is that these decision could affect future for to lower trade barriers and actually fire happens at a time the usa companies have from out of makers manufacturers to retailers keep trying to get more significant to a huge potential market such as india but can not either hide the

u.s.-china trade deal drives asian stocks higher. u.s. and european futures point against. the cash trade kicks off in 30 minutes time. anna: reconciliation in sight. the u.s. is said to be in the final stages of a trade deal with china. an agreement could see most or all duties lifted. the shanghai composite cracks 3000. the chinese index closing at an eight month high. how much higher could equities rise on a trade truce? donald trump renews his attacks on fed chair jay powell. exclusiveom our interview with the standard lights aberdeen boss. >> we have to ask ourselves why he is commenting on the dollar. he clearly wants it weaker. are 30 minutes away from the start of trading. let's take a look at what is going on in terms of treasuries. this will give you a clue as to whether or not we are looking at a risk on market today. you can see that on thursday we were down 2.66%. now we are up to 2.76%. investors are willing to let go of the perceived safety of u.s. government debt and wade into equities. take a look at futures. we have positive trade across european equity ind

u.s.-e.u. trade war? >> the market in the u.s. is very important, so that is a serious topic.watching what will happen, and different scenarios. we are con -- we are counting on our counterparts in the u.s., and i think at the end we will find a solution. >> are there any way porsche 911 could be built anywhere else? >> it has a lot to do with the image of the car, our customers worldwide love the engineering in germany. we will keep producing the car in germany. commissioner visited washington this week for talks with u.s. officials. she helped to head off higher tariffs on european goods and hammer out a translated trade agreement. she spoke with bloomberg on thursday. are you worried that the u.s. will impose a 20% or a 25% tariff on imported cars, and what would be the impact of the global economy if that happens? >> we have not seen the report headed to the president, and we hope that he will not recommend tariffs on cars for the european union. it would be very harmful for our economy, and the global economy, and the u.s. economy. many cars are produced in the u.s. with

sixteenth was sixty billion dollars that's a nineteen percent increase from november notably the u.s. trade deficit with both china and the european union grew to roughly four hundred twenty billion and one hundred seventy billion dollars respectively. and speaking of those trade fights the organization for economic cooperation and development where the o.e.c.d. has lowered its growth forecast for twenty nineteen once again citing those trade conflicts as well as the ongoing brecht that bungle as factors the o.e.c.d. s interim outlook now forecast global regrowth for this year at three point three percent and twenty twenty growth at three point four percent analysts there shave point two percent and point one percent from both figures and their forecast from last november more dramatically germany's twenty nine thousand growth forecast was have to. have down to the point seven percent from november's prediction of one point six percent we now want to talk trade in light of the two new reports which show the impact of the trump administration's trade tariffs are hitting consumers more than a

u.s. and chinese trade negotiators have all wrapped up talks in beijing aimed at ending their trade dispute now that's no easy task the laundry list of differences to iraq ironed out is quite long the u.s. has accused china of unfair trade practices including cyber theft and forced technology transfers. what they discussed the night before is unknown but equity markets shot higher after negotiators exchanged smiles as they resumed talks on friday while. walking as of. yet very. thin trigger e secretary steve minucci unjoined chinese vice premier luke a and u.s. trade representative robert litan has a for a photo and perhaps a chance to rearrange their negotiating positions before starting the day's talks the chinese commerce ministry says the two teams will spin no effort in the negotiations to end the months long trade war u.s. president donald trump said the two sides were close to a deal but officials have played down expectations of an imminent agreement u.s. insistence on keeping the first tranche of twenty five percent tariffs on fifty billion dollars worth of chinese imports could be

david: u.s. tradesent lighthizer, he stopped short of predicting a successful out cam, edward lawrence is in washington with latest. reporter: a big but, u.s. trade representative lighthizer said we're in final weeks of knowing if we'll get a trade agreement with china or note, the chinese have specific demands with u.s. to get an agreement finished. >> focus is removing of 301 tariffs. if that is a concession that is something you were de-- under debate, they have specif, market access provision we also are considering. reporter: if it is finalize, it will cover intellectual property theft, force transfer of technology, state owned enterprising, opening market to u.s. financial services and other nontariff issues. manipulation, now light house hr said it would have different seconds for reinforcement. talking about intellectual property alone. how we got to this rough patch. u.s. trade delegation went to batobeijing the week of februar, the talks within well. it pointed to a face-to-face meeting betwe

trade talks between the u.s. d china are at a critical phase, but mixed signals from the white house and beijing are raising concerns that a final agreement to end the trade war is nowhere in sight. boeing's crisis. canada is the latest country to ground the aircraft. the pressure mounting on the faa to follow suit. we will have the latest. let's get you started with a check of the major averages. u.s. stocks rallying. the s&p 500 at the highest level in four months. gaining ground for third consecutive session. every sector in the green. we have positive data showing the order for business equipment rebounded in the month of january. by the most in six months. rose less than expected. the dow up 7/10 of 1%. really positive sentiment out there. even boeing managing to hold onto some small gains after being pummeled in the last two sessions. we are seeing the pound rally right now. we head to another brexit vote. traders thinking potentially the u.k. parliament will vote against a no deal brexit. and opt for an ext

this is a one month figure so that does not change anything fundamentally about the huge trade deficit that the u.s. is still running against carter talking trade there on wall street thank you very much. now to some of the other business stories making news around the world. u.s. carmaker ford says it will stop producing passenger cars in russia it plans to close a three russian plans as part of a broader scheme to restructure its money to do zing operations in europe an economic slowdown and western sanctions have put a damper on the russian market several hundred staff could lose their dogs. embattled former nissan chairman carlos ghosn may have used company funds for private spending according to a review by an external committee and it says it found sufficient facts to support that allegation cole was recently released on nine million dollars bail he has denied any wrongdoing. this man technologies is the latest victim of bitcoin is collapse the world's largest maker of cryptocurrency mining chips has pulled its blockbuster i.p.o. in hong kong it filed the initial public offering half a year a

eu trade commissioner will meet u.s. trade representative's today. e goal, progress toward a trade deal before year-end. a sweeping u.s.-europe agreement hit a roadblock a year ago when 25%united states slapped tariffs on european steel and aluminum. this prompt that a retaliation on goods. in july, the sides agreed to a truce. considering the large trade surplus europe had with the u.s. , this was no small feat. germany had the most to lose from u.s. imports levees. the european commission president up to the anti-saying ped. auto tariffs -- up t ante saying u.s. auto tariffs -- autos retook the spotlight, we got views from the autoship -- auto show. >> we hope we get an agreement. cope with a lot of issues. this is one of them. we will manage. >> that is a very serious topic and we are watching what will happen. the u.s. andng on we will find a solution. >> we really would look for a future in which the trade barriers are less everywhere in the world. we are in favor of not having distinction. >> i don't think we have to protect our european compani

u.s. and china sent to resume high-level trade talks thursday and friday. u.s. representative robert lighthizer and trey ticket terry secret -- trade secretary steven mnuchin will visit. u.s. negotiators are voicing concern china is backtracking on earlier pledges. a southwest airlines boeing 737 max 8 airliner made an emergency landing in orlando, florida tuesday. southwest saying pilots reported a performance issue with one of the planes engines. no passengers were onboard. the engine problems appear unrelated to the control software problem that contributed to a pair of recent crashes. the is investigating. houston's refining industry may be on the verge of a crude supply shortage because for a fourth date, safety concerns are still restricting traffic on the houston ship channel. a chemical fire spewed toxins into the air, and you can see this plume of black smoke. that prompted the coast guard to step in. the key waterway connecting local oil refiners and chemical companies to the gulf of mexico. global news 24 hours a day, on air and at tictoc on twitter, p

u.s.-eu trade war? important for us so it is a very's this topic, and we are watching what will happen and playing with different scenarios, and we are counting in the u.s. and i think in the end you will find a solution. >> is there any way the porsche 911 could be built anywhere else? >> i think it has a lot to do with the image of the car, and our customers worldwide love that we do engineering in germany. we will keep using the car in germany. ♪ >> eu trade commissioners visited washington this week for talks if u.s. officials. they wanted to hammer out a transatlantic trade agreement. they spoke exclusively with bloomberg on thursday. ♪ >> are you still worry the u.s. will impose a 20%, 25% tariff on imported cars, and if so, what would be the impact on the global economy if that happened? >> well, we haven't seen the report headed to the president. we still hope, of course, that he will not recommend tariffs on cars for the european union. it would be very harmful for our economy, it would be harmf

mississippi breeds creativity and the china u.s. trade conflict is no exception there are already widespread levies on many chinese products imported by the u.s. and donald trump the president is threatening to hike these to twenty five percent that would make chinese goods far less competitive in america but the tariffs only apply to goods made in china if chinese companies produce a broad's say in vietnam it products subjects adjudicates it's something the vietnamese city of haifa is benefiting from ever since the u.s. president opened the tower floodgates last year many chinese companies about to to outsource production there it's just a couple hundred kilometers from the border with china. has just landed in hanoi that destination is elsewhere represents forty companies that want to shift their production plants from china to vietnam. where i think. i'm going to the high flown industrials and today i need to clarify some details regarding transport routes and. the latest tax regulations all things that interest my customers at home ge

the top u.s. trade negotiator says washington must keep the option of raising tariffs on china to ensure beijing sticks to any trade agreements. robert lighthizer told the senate finance committee the u.s. must have the ability to counterigher duties the any potential violations of a deal. his comments pushback at speculation that an agreement would see the two sides lift tariffs immediately. indian inflation remains subdued . that offers a potential dilemma goingime minister modi into the general election. most politicians might cheer price rises, but india's low inflation is driven by falling food prices that cut farm incomes and push-up debt. the slowdown raises the possibility of another rate cut. boeing rose slightly in late trade after the faa repeated its backing for the 737 max, saying there is no reason to ground the plane. however, the stock slumped more than 6% in the regular session the jetnations banned on safety concerns. the jet side its biggest decline in a decade as the e.u. and india s

u.s. trade deficit has had to record a ten year high which almost nine hundred billion dollars this despite promises on the campaign trail by u.s. president donald trump to revive american manufacturing and reduce u.s. dependence on imported goods a white house correspondent can be helped that has more. the report by the u.s. commerce department stands in stark contrast to what president donald trump said just days ago on the use or trade deficits were down last month there was trying to find out why what would take him in a lot of tariff money and it's go right to the bottom line and it has reduced the trade deficit so in reality new data shows the trade gap between the united states and china in particular has widened last year by forty three billion to four hundred and nineteen billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped. and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar h

trading day. softer footing after we had u.s. stocks falling overnight. isappointing the oecd also lowering. it a lot of great news when comes to the global economy. we do have aussie data out in the next hour. this is bloomberg. ♪ haidi: good morning. asia's major markets have just opened for trade. shery: good evening. sophie: i'm sophie kamaruddin in hong kong. i'll come to -- welcome to "daybreak: asia." haidi: our top stories, news about growth. foring expansion forecasts asia and europe. giving the markets a boost and driving the campaign for reelection. shery: and bucking the trend by betting on the jumbo jet. sophie: we are seeing a risk off mood. the yen is gaining ground. course, friday's u.s. job data. the korean won is trading just thew that handle below dollar. stocks in sydney, shares rising for a second day. the aussie dollar is holding onto overnight losses. i want to highlight really quick , spiting freight third straight day. haidi: let's get you to the news with elena. >> reaching about $20 billion when it complete capital raising. it ha

for that and that's supposed to help expansion as well only bounce thank you for this update the u.s. trade deficit surge to a ten year high and twenty eighty and that's a blow for u.s. president donald trump who claims that slapping tariffs on a range of imported goods would make it go away the comments department said it almost nineteen percent jump in the deficit in december contributed to a shortfall of more than six hundred billion dollars last year the u.s. posted a record trade deficit with china mexico and the e.u. . donald trump's global trade offensive has failed to rein in his country's spiraling trade deficit last year washington impose tariffs on about half the goods imported from china to force beijing into negotiating a new trade deal but china responded with retaliatory duties on u.s. goods many american businesses and consumers are now footing the higher bill for imports while slowing global growth and a stronger dollar weigh on demand for u.s. goods and the trade imbalance remains as reflected in the latest figures last year the shortfall with china serves almost twelve pe

as we all know the trouble ministration is a bark on a trade fight with china right as well as agitating u.s. allies in europe canada and even mexico with the goal of improving the balance of trade but the united states is now officially reached the largest get this the largest annual trade diff deficit ever the latest report comes from the u.s. commerce department today measures the overall u.s. trade deficit with the rest of the world for twenty eight hundred at six hundred twenty one billion dollars that figure also is up twelve percent from the total for twenty seventeen setting aside services the u.s. trade deficit in goods actually measures that eight hundred ninety one billion dollars a ten percent annual increase the yearly trend seems to be building by the month in december the monthly trade deficit number just for the sixteenth was sixty billion dollars that's a nineteen percent increase from november notably the u.s. trade deficit with both china and the european union grew to roughly four hundred twenty billion and one hundred seventy billion dollars respectively. and speaking of

trade. sources in washington say the u.s. and china are in the finals stages of a trade deal that will see tariffs lifted. president trump lashes out again. he says the dollar is too strong and the fed chief is someone who likes to raise rates. austerity and civility -- prosperity and stability. the promise of progress put the picture is always in mind. ramy: a big week ahead. let's get a reminder of how u.s. stocks ended last week before we hand it over to you. by 7/10 of 1%. the best it saw in the past two weeks ever since february 15. tobroke three days of losses cross the 2800 mark. the nasdaq was up by more than 8/10 of 1%. this was its best performance in the house week. the s&p health of this, the third or fourth best for performance from friday. we are seeing positivity breakthrough in terms of u.s.-china trade and we are looking to the npc in beijing and fed decisions. withdecisions and play central banks. that includes the rba as well as the ecb. friday, in asia, stocks closed higher but ended the week lower. high on

trade talks. bloomberg news reported that some u.s. officials are concerned china will walk back some trade pledges, particularly as it relates to intellectual property. joining us for reaction is the global investment strategist at mfs investment management. is in urgent that something gets done? if it is urgent, obviously it affects supply chains, affects the cost of goods available for sale, but ultimately, what a company does, how they do it, how they source input costs, their ability to charge what they are selling, that is ultimately profits, which drives stocks. vonnie: this story we are reporting on in the last three minutes having to do with some intellectual property allowances from china, which china may now not give, and that will affect biotech. we also had a story about boeing, china may not bother with those orders. now we're getting to which companies will be affected. does that affect how you advise? >> it impacts individual companies, as you mentioned, but the market seems to be trading off of these nonlinear events. f

u.s. strength as trade negotiations got a little more clarity.futures looking pretty positive, looking to extend those gains. a big agenda item of the day is that bank of japan policy meeting. no fireworks expected from the governor. of course, no changes but looking for updates to that inflation in growth outlook as always. >> plenty ahead on "daybreak asia." coming ahead, we will get an expert view on brexit. we will be talking about prime minister may winning the backing of parliament on her brexit delay. >> certainly a rare win for the u.k. prime minister. that is it for "daybreak australia." we're back next with "daybreak asia." ♪ you. all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. haidi: very good morning. i am haidi stroud-watts in sydney. australian market had just opened for tra

just two of its twelve weaving machines are in operation the boss blames the trade dispute with washington. because some of our u.s. splines have already moved their orders to southeast asia where the labor costs are lower than here it's had a big impact on us the impact will get worse if the trade war between china and the us. especially in the number of orders which will greatly affect us. there is mounting pressure on chinese and u.s. negotiators to settle that tariff war economic slowdown so groff in twenty eight hundred at its lowest in three decades brought on by entangle and external forces. you from your own accord on the one hand china has an aging population problem and our traditional industries are suffering downward pressure on the other hand the traditional export oriented economy is facing extradition. for you to throw your can on value their annual gathering in beijing delegates are expected to rubber stamp a series of policies aimed at addressing u.s. trade concerns a bed to try to left the mood. and for more on this let's talk now with our financial correspondent new york ians quarter yes what's

have been meeting in beijing to try to end their trade dispute friday was the second and last day of the talks want to iron out their differences over u.s. accusations that china has been using unfair trade practices for years heavily subsidizing its companies of stature in the technological know how of foreign firms . what they discussed the night before is unknown but equity markets shot higher after negotiators exchanged smiles as they resumed talks on friday. then treasury secretary steve minucci joined chinese vice premier luke a and u.s. trade representative robert light eyes a for a photo and perhaps a chance to rearrange their negotiating positions before starting the day's talks the chinese commerce ministry says the two teams will spin no effort in the negotiations to end the months long trade war u.s. president donald trump said the two sides were close to a deal but officials have played down expectations of an imminent agreement u.s. insistence on keeping the first tranche of twenty five percent tariffs on fifty billion dollars worth of chinese imports could be a sticking point for a deal you is scheduled to travel to washi

u.s. and china right now people are talking about within the next few weeks there might be a trade deal this face because of this arrest that was made in vancouver on behalf of the u.s. as it stated still may go on joe right now she's suing canada is she saying what's going on here is just not correct to c.b.s. say which is canada border security agency as well as we canadians government that it's all one part and parcel she saying that she's been mistreated and this is just not correct and this is all part of the wall way maneuvering forward you know they stepped back a little bit and now they're attacking back china comes into play whenever you talk wall way and here's the tip for tat we're talking about michael carvery and michael spog or if these are two individuals that were arrested right after mangles arrest that same time the end of december two thousand and eighteen or so beginning i should say of december they were arrested and now trying to say you know what these guys are spies that's what work using them of one guy was helping the other guy out so you can see china's rhetoric is

u.s. indian trade relations of late have been concerned. thank you very much. all eyes on beijing these days as the annual national people's congress gets underway where the government unveils huge tax cuts amid a slowing growth shanghai close nearly a percent up and hong kong stocks headed into the break tuesday barely moved as investors how their breasts for signs that might point to a breakthrough in china u.s. trade talks but the focus of the opening session was china's start treaty commie beijing cuts growth forecast to six point six percent this year a thirty year low and announced carts worth several hundred billion dollars. told to delegates the country faced a quote tough struggle. to europe now. big motor show gets underway tomorrow it's an industry he said by the problems that is gathering there in geneva switzerland to day legacy carmakers have struggled to make progress on electric unsolved driving cars chased by newcomers like tesla or google while echoes of the diesel gates scandal still reverberate through the halls trumps china policy trade pol

trade. sources in washington say the u.s. and china are in the final stages of a trade deal that will the tariffs lifted. president trump lashing out saying the dollar is too strong and the fed chief is someone who likes raising rates. seeking stability. china's big policy we kicks off with a promise of prosperity but always with a big picture in mind. ramy: let's do a quick reminder of how u.s. stocks ended the session on friday. this is where we stood. the s&p 500 up by 7/10 of 1%. it across the proverbial psychological 2800 mark. this was the first time it did that since november. its highest jump into weeks. the nasdaq, the highest jump in a week up a tenths of 1%. half of the most recent headlines we have been talking about in terms of a possible breakthrough in the u.s.-china trade deal. s&p futures getting a bump, up by .25%. not only that, we have that to look forward to, we have a busy week in terms of what is happening with the nationals peace conference and earnings on tap. a couple of decisions from central banks i