i'm yvonne man. >> and it's just after 8 p.m. here in new york. i'm betty liu. rse, we're just digesting the aftermath of this the president to pull out of the paris climate pact. is it going to have on the u.s. economy? so far, no impact at least today the markets in the u.s. in fact, we closed at near the records. >> yeah. it goes beyond paris, though. i think a lot of people are also the u.s. dropping out of this climate deal now undermine the credibility of the the australian? is this going to be a hindrance work on trade issues or other types of national security moving forwardes with some of these countries that do support this paris deal? that's going to be the key question, as we do wait for this process of the u.s. to exit paris. meantime, we are looking ahead to some big u.s. data. markets that's what the is focusing on at the moment. let's get the latest. >> well, yvonne, as betty pointed out, trump pulling out accord,aris climate wall street's focus was on the private job report. upbeats a little more than expected. that's helping trickle into the goo

yvonne: i am yvonne man in hong kong.e watching "daybreak asia >> as we have been reporting, fired fbi director james comey will tell congress the president asked him in february to end check to michael flynn for clearons, to see his way of letting this go. comey will say he never agreed to the inquiry. he will also say the president demanded loyalty when they met on january 27. fired anothers series of projectiles said to be short range cruse missiles. launches fromple defense sources in tokyo. japan says it will protest surgical medic channels. say southom seoul korea is suspending further deployment of the controversial onad missile deployment environmental grounds. it means those yet to be deployed must wait. china is strongly opposed to that system, saying it risks upsetting the regional security balance. in europe, london police have carried out a controlled explosion outside the new u.s. embassy. but says it is not terrorism related. some cars had been left unattended several days, days before the election. electio

yvonne: i am yvonne man in hong kong. denied anaire fraud and diverting loans as he appeared in court in london to fight extradition. he was arrested on charges of conspiring to defraud banks, through a $1.4 billion loan to is now defunct airlines. he was told to surrender his airport. he moved to england, saying he wanted to be closer to his children. the jury in the u.s. trial of former nomura bond trail say they may have trouble reaching a verdict on at least one charge. they began to liberating last week after a month-long trial of federal court in in connecticut. the three are accused of lying to customers about the prices of mortgage-backed securities. bloomberg has been told the carlyle group expects between $5 billion and $6 billion for its fifth asian buyout bond. the group aims to close a new fund in the second half. competition for buyout deals have increased in asia, with a sovereign wealth funds, pension funds, and a large corporations joining the fray. uber ceo travis kalanick says he is taking a leave of ab

yvonne: i am yvonne man in new york.ybreak asia." >> first up, capital one was the lone standout as 33 other u.s. angst aced the second part of the fed's annual stress test. they have been ordered to shore materialversight and weakness and resubmit plans at the end of december. banks are expected to pay out close to 100% of their expected earnings over the next four quarters, much higher than the 65% last year. the global cyberattacks seem to be abating but leaving with -- victims in its wake. they could suffer material financial damage after the petya bug. shares up more than 1.1%. another place shut down shares in india and on the u.s. east coast, saying they are carrying out a full assessment of the damage. bankruptcy of takata has dealt a major blow to its parenting families. the value of that takata stake has plummeted from nearly $3 billion to less than $70 million, and could go to zero. the family used to collect around $9 million. -- the year in dividends. as tesla finalizes its gigantic battery factory in nevada

i am yvonne man in hong kong.etty: it looks ominous. i am betty liu in new york. the fed is almost universally weekraising rates this with at least one more hike coming before the end of the year. we will discuss all of this and the prospects with steve. good to see you today. ok, so, it almost seems like everyone is saying that this is it and we are going to get the rate hike. the more shop would be if we did not get one this week, would-- the more shock be if we did not get one this week, right? >> correct. betty: let us talk about the odds here. the agar, something like 93% and above that we are going to get the height this week. if you look at the blue line on the screen, it is still sort of according tod -- fed fund futures -- that there will be a september rate hike. it dropped dramatically. why do you think that is? why are we so unsure of another rate hike? steven: in some ways, this is not new. in recent years, as the fed has wanted to raise rates, the market has been skeptical. the reason there has been

i'm yvonne man in hong kong. kathleen: and i'm kathleen hays in washington dc. to our top story, exit polls suggesting an inconclusive election results, the conservatives falling short of a majority in parliament. and we are going to sydney. great to see you. no seats have changed so far, but what are your initial takes on the exit poll at the moment? >> it is obviously a pretty disastrous results for theresa may. we will see if the exit poll reflects the final vote tally, but it should. it is bad news all around. even if the exit poll is off by a few seats and theresa may scrapes by with a majority, i would argue her leadership would be imperiled within the tory party and she would lack credibility going forward in the negotiations with brussels. yvonne: one second. we want to bring john fraher back. we were just talking about this, the superlatives we were describing for theresa may leading up to the election, iron lady, difficult woman, those things substantially taking right now. anyway she can come out of the election stronger? john: no. these exit polls wou

yvonne: i'm yvonne man in hong kong.dent is that the jpmorgan global china summit today in beijing for day two. to deceive. what has been giving the developers a list? lift?ist -- a reporter: the deleverage campaign is underway as we get closer to the congress at the end of the year. ofs is the property mogul shanghai. complex.very famous what is happening in the property market in china? extending their curves, other cities and other parts of the economy are relying on construction and property for growth. >> in the first and second tier cities, i have not seen anything harsher than this. they restrict the price, they restrict the timing. permit to apply for a from them and they will make sure that the timing is right. construction -- restriction on mortgage and the restriction on your right to purchase. despite all of permit from them and they this, it is g well. reporter: how much of a risk is there of overshooting on the tightening? deleverage and they want to take the risk out of the economy, but at the same time th

yvonne: i am yvonne man in hong kong. you're watching "daybreak asia."breaking news out of japan. a lot of economic numbers we are waiting for. pricesp is cpi, consumer yet again missing economist guesses. this is year on year, economists estimated a rise of 0.5%. when you look at core cpi, excluding food and energy prices, not much better. also missing estimates, no gains at all. where is the inflation for the bank of japan? that is for the month of may. if you look at the jobless rate, up 3.1%, that is exceeding what economists estimate of its 2.8% jobs rate. the jobs to applicant ratio at 1.49. it shows pretty much no move on inflation. that continued frustration for japanese officials and for the bank of japan which says, where is that inflation that allows the boj to start stepping back on that stimulus? inflationtheir target, still. let's get more from adam haigh. pylon that the retail sales numbers we got yesterday, the stimulus is still not working there in japan. adam: absolutely. it is hurdle after hurdle, isn't it, the bank of japan keeps jump

yvonne: i am yvonne man. eyes are glued on china for the next 24 hours. not only do we have this msci decision, but we will hear from the pboc governor as well. we do not hear from him too often, but it will be interesting to get his take now that it seems like the pboc is parting ways with the fed. they held off on raising those borrowing costs after the fed raised rates last week. betty: a lot on the agenda as you mentioned. we will be going through a lot of big corporate stories, including that story on tesla. everybody focused on the chinese market and tesla being a tech movie has been a big today. how much -- a big mover today. how much of the impact will be on the asian markets? yvonne: a pretty big boost so far in new zealand. the nzx 50.% on the kiwi at 7224. watch the body lenders today after that meeting these downgrade -- after that moody's downgraded on the housing market. you will hear more of that on the rba minute later on this morning. on the at 7597. -- the aussie is up .7597. arjun japan, we

yvonne: and i am yvonne man.lub.joining the msci they also added 53 more stocks to this conclusion. a long time coming for china, a lot of questions. betty: given we were not the ones flags prominently, the stock connect china put in place. that being a key reason why they decided to include these shares. yvonne: they mentioned it was a bringingger, overall, a boost to the hong kong and shanghai markets today. markets a after oil slumping into the bear market, from the highs we saw in february. let's see how new zealand is performing this morning, continuing this negative tone. stocks down 0.2%. still a slightly higher dollar story, the kiwi at .7243 against the dollar. energy stocks in australia, those are the ones to watch. under pressure today with wti. tumbling to the lowest level in nine months overnight. the market getting fatigued on these opec-led cut. futures heading lower in sydney. nikkei futures ending 0.8% up. futures down 35%, according to chicago nikkei futures. dollar-yen, 110.35. we expecting boj

i'm yvonne man. betty: i'm betty liu. t back hard at president trump, saying his efforts in north rea have been indispensable and played an important role in seeking peace. yvonne: in response to president trump's tweets, which said while he appreciates the efforts of presidency in china to help -- president xi jinping in china to help, at least he knows china tried. joining us is the associate professor of chinese studies at young state university joining us live from seoul. we're still trying to get clarity on what the u.s. is asking from china. you saw that tweet from the president saying thanks but they are going to wait on their options. then you have jim mattis, rex tillerson at this meeting speaking for china's help in reining in north korea. who is the prevailing voice? >> the best reaction is one chinese expert, quoted as saying we don't assume that president's tweets speak for the administration, which is indicative of the confusion over what signal to take. at this point, i think we do have to assume that that t

i am yvonne man in hong kong.etty: i am betty liu in new york, and as she mentioned, takata, and remaining -- remaining suspended today. to sell its business to key safety systems. complete this deal in the first quarter of next year. automakers may end up shouldering most of the cost of takata's lethal products, the airbags, faulty airbags. joining us now almost line for michigan is key safety systems cfo joe perkins, in this exclusive interview. thank you so much for joining us. joe: thank you as well. i appreciate you having us on today. this is an important time for the industry. anchor: absolutely one of the biggest corporate takeovers of a japanese manufacturing company that you are right in the center of. first off, we heard some of the details of the acquisition, the movement of the headquarters, the non-closure i guess you could say of japanese plants. what about some of the executives? are you going to absorb any of the takata executive? will you be absorbing kss in this acquisition? joe: some of those d

i am yvonne man. betty is that the wharton global conference. a very busy friday and a happy one as well. yvonne: we are marking the one-year anniversary of brexit. we have the stress test, keeping an eye out on china as well. first it was anbang, but regulators could be targeting other companies. a lot of big guests on our show with betty. starting this hour, geoffrey garrett in 40 minutes time. on bloomberg markets, betty will be speaking to the incoming chief executive of hong kong. her as have to talk to we start next week, marking the anniversary of the handover. you do not want to miss betty's chat with tom friedman at 10:40 a.m. hongyou do not want to konn sydney. look at markets trading in the asia-pacific. it could be a slow start to this friday. we are flat on the index as well as the kiwi at 7267, taking a breather from the 6% climb we have seen in the last month for the currency. australia, we saw some stabilization. 282 for wti. futures heading higher for the asx 200. we did see a bump to end the day, .7% higher on that recovery in t

i am yvonne man. betty: i am betty liu.y is warning saudi-led isolation of qatar could lead to war. they say doha is ready to expand concerns. rick perry told bloomberg that while qatar has been an ally, all countries must take a strong stand against terrorism. : yes, sir. i think it is important for all of our allies and our friends to really take a strong stand against militant islamic terrorism. the idea being any country, and i don't know the details. qatar has historically been a friend. my home state has an engineering school at the education city as a friend. emir andr mer -- current emir are people we have a personal relationship with. i don't want to delve into and area i don't have a deep of understanding as i think it takes to address this issue at this time, but globally it is fightant that we are in a against individuals who would do harm to our citizens. tom: even if it means blockading a u.s. ally. : i will leave that to the state department folks who have information and intel. there is countries involved th

yvonne: i am yvonne man in hong kong. giants as it is launching a new highly encrypted phone at the mobile world congress in shanghai. told bloombergce company will continue to set aside 10% of its annual revenue for research and development. they said china remains the toughest market because barriers to entry are so low. >> china, being the most competitive market, and it is very important to us. we are going to display the security here in shanghai. we will see that we will demonstrate the leading encryption technology in all four layers. , system,are layer platform layer. things will go into the business and other public service sectors. anchor: they have launched their latest smartphone. aimed at younger people as well as what honor calls people who act young. the label comes from the technology that allows better quality photography and art places. it runs android seven and goes on sale in europe at $500. prices for north america have yet to be set. yvonne: facebook says its top to billion -- 2 billion users -- it r

yvonne: i am yvonne man.-largest looking to tie up utility payment apps as the fixed income share of the e payment market. they are looking for a fifth of india's estimated $6 billion payment market by the end of next year. they want to offer support validating will be quick -- mobi kwik at around $13 million. betty: the region's biggest real estate deal. logicorp has things in the you cannot kingdom already -- united kingdom. warren buffett is about to start an annual private lunch auction to raise money for a homeless charity in san francisco. it starts at 7:00 pacific, 7:30 hitshong kong. the big come near the end. million, tying the record set in 2012. sinceaised $24 million 2000. plenty of big stories this week, covering them here on daybreak asia. we have china, india, pakistan gathered for the shanghai cooperation organization summit. a look at the friction, these will become old members of the strained relations -- full members of the group amid strained relations. slowing to 1.4% on the quarter, down

yvonne: i am yvonne man. our next guest has seen the top property bubble profit.uld rise by another 50% in the big city. joining us now from beijing is the deputy director of the national institute of financial research at a chinese university. great to have you on the program. i want to show our viewers where we stand when it comes to chinese property prices. we have seen these curves take a bigger bite into the market right now. we have seen prices on average see a bit of a drag lower, at new construction, and sales heading lower as well. a gradualn quite slowdown overall. why do you think we could see a 50% upside in home prices? guest: while, i think this is not surprising. we are seeing gradual prices come down every time we have the policy come into the market. i think the company is doing more than the curving policy. they are limiting the really expensive companies to come into the market. we are seeing the prices dipping. the whole mechanism is now increasingven the control over the capital flow, and increasing monetary supply coming into the market. peop

yvonne: i am yvonne man. we are counting down to the first major market open.m the bloomberg markets reporter, from sydney.ve focusing on australia, halfway through the year and australian equities are underperforming in the grand scheme of things. always seeing any upside? upside? seeing any adam: it has been interesting this year because there is no shortage of global investors. it is queuing up to add to the failure. withis a risk in prices the huge underperformance with the global index this year. australian equities are unchanged on the year, being able to make plenty of money across the board begs the question how the second half of the year intervals this. there is a feeling of a lot of potentiallyributing further weakness or underperformance on relative terms. that hangs on the consumer. there is plenty of worries about the australian consumer, dipping into their pockets to continue to help the economy tech blog. -- tick along. house price growth continuing to nudge higher. the rest of the economy looks in tough shape. it is difficult for australian equ