yvonne: i am yvonne man in hong kong. watching "daybreak asia ." >> the fed, as expected, left policy unchanged. but confirmed of the unwinding of the balance sheet will start relatively soon. the normalization would be a milestone in recovery program now in its ninth year. they say it signals the bank could announce the timing of unwinding at its next meeting, scheduled for september 19 and 20. the senate rejected a simple repeal of obamacare as the debate on health care proposals raises questions about the republicans' ability to pass any bill. it was similar to the one that passed congress in 2016 that was vetoed by president obama. the debate will culminate in an all-night vote that could feature dozens or hundreds of amendments. growth in south korea afloat in the second quarter as construction investment eased. itseconomy had been showing fastest expansion since 2015. gdp grew by 6/10 of 1%. however, analysts say the slowdown is due to a base affect from solid first-quarter performance, and that it should not be tak

i am yvonne man -- i am betty liu. yvonne: and i am yvonne man.t looks like we got a little bit more drama coming out of the u.s.-china dialogue. it seems like the gloves came off in terms of the trump administration side. have to wonder what happened behind closed doors. would havehought we an action plan in the first 100 days. it was quite tense, both sides canceling their pressers. will we go through with these tariffs? what is the relationship now between xi and trump? it seemed they were getting along swimmingly well at mar-a-lago. to have another golf outing to warm up relations again. [laughter] yvonne: we thought this would be a very choreographed event, not too exciting, but we got more fireworks than expected. the pessimism in the markets, wall street, record after record we break. asian markets, equity markets solidly in the green. not the case in new zealand, let's take a look at the nzx 50, trading 7/10 of 1% down on the index, happening after five days of gains. the kiwi, .7352. back on an uptrend after inflation turned a soft. aussi

yvonne: i am yvonne man in hong kong. let us get to the first word news with nina melendez. : good morning, yvonne. china has said to be stepping up telling providers to block access to virtual private networks by for every first. we are told beijing, china telecom, tube our users from vpns and unfiltered websites. they halted-- service of the start of the month. jenna's number two steel mill says first-half profit could triple with prices staying high in the world largest producer. et income ton reach $170 million, citing an improved product mix. time it turns out half the world fuel and has long been the target of dumping complaints. the issue truce me last week during the g-20 talks in hamburg. north american news outlets want collective-bargaining rights in talks with facebook and google digital and like an dollars had to miss media. they want to court may effort to extract revenue from the pair without violating antitrust laws. facebook and google took more than 70% of the $73 billion spent on digital advertising last year. and the most expensive weapons system in histor

yvonne: i am yvonne man in hong kong.hat nailbiting vote just past. we can start talking about what is next for health care. -- the reason we are seeing records again. ramy: especially for the s&p 500 as well as the nasdaq, hitting records. the dow hit intraday records. into the want to go bloomberg terminal and show you what is happening in terms of earnings. this is the spx function. 143 of 500 securities have reported. it will be interesting to see if we can continue that trend. we will talk about that in a little bit. yvonne: the equity market story is one to watch. the bond market, we saw big moves as well. take a look at that. it was ahead of the fed. with german bund yields, up six 0.57.points to we also saw yields on the u.s. treasury's up aces -- eight basis points. this will be key for the boj to watch as they are set to announce the long and today. and not exactly joining the party on this equity rally. we did see trade numbers blowing up at surplus, which was quite positive. take a look at the kiwi, we see it

yvonne: i'm yvonne man in hong kong.ty liu in new york. geopolitical tensions out of north korea, that has been dominating the markets. earlier in the u.s., we were injected with the fed minutes, showing the central bank is on the hawkish tilt that other central banks are around the world and it pumped the markets here a little bit. we closed for the s&p almost near the high of the session and it led to a rally in tech shares. give me a bid for some of the markets in asia. hawkish,ey were more and a division among the members when a came to the timing of the balance sheets. it was not a matter of if, but when, and they seem divided. yvonne: something janet yellen needs to guide them through as we get closer to the timing of the rate hikes. maybe happening in december as well. key questions for investors of course. now we will go to sophie kamaruddin. sophie: a couple of things, geopolitics, the rebound in tech shares, that could play out. and the latest fed minutes. treasuries did rally, especially the 10 year yields, 3.

yvonne: i'm yvonne man in hong kong.ve policies after his party's crushing defeat in the tokyo election over the weekend. let's get to the asia government reporter joining us from tokyo. isabel, what is likely to be on the chopping lock for shinzo abe? isabel: the most controversial policy that he has in the plans ahead is to change the constitution. that is something that divides the electorate. a lot of people are against any kind of change. a lot of people do not want the change he is proposing. there are people that do support what he says. the question is, given the state of his public support, the lack of discipline in his party, whether he is prepared to push ahead with this idea which would take a lot of energy and might portray him as somebody less interested now in the economy than he perhaps should be. what does this mean for his other policies? how do local election results way into a national issue like changing the constitution? isabel: it was a terrible bloodbath of a election, a symptom of how far his pop

yvonne: and i am yvonne man.ds rallied at -- as the ecb subduedt focused on inflation pressures in the euro zone and the need for ongoing policy support. let's dig deeper with a brian of strategy ind st. louis. great to have you. interesting to see this divergence of where the euro went, and bonds. what stuck out to you the most about the ecb statement and the press conference that followed? brian: when you look at all the central banks, the common theme even though they are at different points here, they are all delaying or pushing out, or slow talking their next move. whether it is the boj, ecb or the messages here across the globe, -- message is across the globe, stop and wait before taking the next step. overnight, we had that horrible, horrible option of 10 year tips. is there more to inflation not being there, than what the results adjusted? at two.ay below two or the last time we saw that level was at the height of the global financial crisis. brian: the bond market is telling us the bond market is concern

yvonne: i am yvonne man here in hong kong.word news with a nina melendez. >> australia's biggest banks will have to hold more capital under fresh guidelines from the regulator. one will have to hold tier capital ratios by at least 10.5% of january 2030. the changes aimed at ensuring institutions are unquestionably strong. the new republican proposal to repeal obamacare now and replace it later has sunk less than 24 hours after being floated. three gop senators said they will oppose it, even with a two-year delay to come up with a replacement. president trump said he would prefer to let obamacare collapse, saying democrats will be forced to agree on a replacement. had aent trump: we have lot of victories, but we have not had one on health care. evendisappointed because as a civilian for seven years, i have been hearing about health care, and repeal and replace. >> ecuador has dealt opec a blow , saying it needs the money. in a statement after discussions with the saudis, they said both countries remain committed to collectively

yvonne: i am yvonne man in hong kong. you are watching daybreak asia. word news with nina melendez. mama president trump + jerod -- president trump's son-in-law jared kushner has denied involvement in the campaign. at a presswo hours briefing to kushner confirmed he did not act with impropriety. >> i did not collude with russia, nor do i know of anyone else in the campaign who did so. i had no improper contacts. i have not relied on russian funds for my businesses. and i have been fully transparent in providing all requested information. nina: google's parent alphabet tumbled after hours as second-quarter revenue met forecast but missed most optimistic estimates. shares were not helped by the company thing the price of google ads declined. the chief financial officer says the biggest country bitter to growth was mobile search, an area the company expects to improve. aimedrkish president has at resolving the region's diplomatic disputes. he flew in from kuwait after having visited saudi arabia and says he supports initiatives to end the crisis. turkey ma

yvonne: i am yvonne man in hong kong.onday, home sales numbers. tuesday, we have the latest personal consumption expenditure, which is the fed's preferred gauge for inflation. on friday, we will have the july jobs report as well. let us bring in mitch. i want to throw in auto sales, which comes in on tuesday. what are we most focused on and what do you think the fed is looking at now? it seems the report does not have as much importance of late. mitch: the fed may not be focused on it, but the jobs number is certainly. even though i got the jobs number wrong on this very show a it is interesting in and of itself, the jobs report is not political, but highly politicized. , ifink the jobs number strong, will find its way into the headlines. it will find its way into the headlines. i will go into my forecast that i got wrong before and say the jobs -- it will have a two in front of it. it will not be 2000, but 200,000 plus. said it would, i have a two in front of it, but it was 138,000. betty: you were to rosie. -- too rosy.

i am yvonne man. misslk about mrs. today -- es today in earnings. south korea coming in negative at 3% drawdown or the month of june. the estimate was for quite a sizable uptick at 1.1%. also not looking great. we are seeing it down .2%. economists were expecting a 1.6% spread. we did talk about gdp yesterday, which did slow down from the spread we have seen in the first quarter. we will continue to watch how this ways out in korea in just about an hour's time when they inct -- plays out in korea just about an hour's time when they react. tech has a lot to the downside. day loucheave had a of earnings. we are going to amazon in a moment. eluge of earnings. we are going to amazon and a moment. we will have retail sales as well as inflation giving more clues. the fed seems to be on hold with rates. what is the boj going to do? it looks as if the ecb and others are on a tightening trend. that is why you had, yvonne, that kind of volatility in the u.s. market session. we will go over that in a moment, but i know that is setting you up or some volatility

this is bloomberg. ♪ yvonne: this is "daybreak asia," i am yvonne man in hong kong.i am betty liu in new york. endingn airlines is chair agreements with qatar airways over a dispute of government subsidies. they notified carriers of the decision june 29 and see no financial impact. the pilot union had called to an end for thek -- the qatar theair after they called aircrew grandmothers, a comment for which they have now apologized. yvonne: the second of three major u.s. securities investigations. it is the biggest the finance organization has struck. the bank must deal with the three investigations before can return to the private sector. betty: show me the money. that is what a lawyer told management about attempts to outbid warren buffett. berkshire offered $9 billion cash for oncor. however, elliott is pushing for more time to put a deal in place. they will be back in court later this month. braziliane former president lula da silva has been sentenced to nine and a half years in jail for grafton money laundering. carwashs a sweeping corruption investigation. let's

i am yvonne man.n southeaking news korea, their current account balance for the month of may, coming and higher than what it was previously, at $5.9 billion. that is quite arise from the month before, $3.9 billion. going to help in terms of economic relations between south korea and the u.s.? it is continuing to be a rising account surplus, a thorn in the which has caused to say that the south koreans are manipulating their currency, suckingexports out, that out of the united states, so to speak. inse numbers, not goods terms of economic relations between south korea and the u.s. we have seen with headlines and north korea, they will have to work closer to contain what seems to be enough collating crisis in north korea. korea --t seems south i guess they have to deal with much more now, geopolitically, then politically. comments from kim jong-un, saying an icbm capable of reaching the u.s. by this year. market jitters that we saw as soon as they got the news late yesterday in the afternoon. looks like

yvonne: i am yvonne man in hong kong. fed chair janet yellen said president trump's goal of 3% growth is admirable but difficult to achieve. in the second day of testimony, she said productivity growth is hard to find. and a rise of just 0.1% would be a good payoff. she said that the danger of another financial crisis remains. >> we increased our monitoring of the financial system for a broader range of risks. we can never be confident there won't be another financial crisis. steelmaking stocks headed for the best month after president trump repeated his comments to crack down on dumping by foreign competitors. speaking to reporters on air force one, trump says he may impose tariffs or quotas or both. countries including canada and china have been bracing for a commerce report on whether steel imports threaten u.s. national security. u.k. prime minister theresa may announced her brexit strategy, sparking fury from scotland and wales. speculation that opposition could derail her plans. it will transfer e.u. laws onto the b

i am yvonne man. for markets, the stress has been in fixed income.awkish talk has brought stocks lower. check out this bloomberg. you can see the tally what we saw overnight. classes sold off, in tandem, for the first time in 10 days. this is the s&p 500 etf and the treasury bond etf. last time we saw these moves was 2013. which has some wondering, is this the start of a taper tantrum? betty: which is exactly what the fed wants to avoid. have been so careful to say the right things to the market to prevent this. i want to bring up a chart, as well. it shows you the results of that tantrum. we now have the s&p below its 50 day moving average, which is technically very important. it could result in further declines in the market that authority been quite volatile the past several weeks. tomorrow's jobs report seems even more important here in the u.s. yvonne: especially that weaker adp report. how that will be reflected in numbers tomorrow. -- a happy day and friday not a happy friday in asia, either. let's see how things are playing out in new zealand

i'm yvonne man in hong kong.gy minister said libya and nigeria might join oil opec cuts agreed to buy producers, but only when their own production stabilizes. both are trying to reduce supply. the participation will be's -- be essential. we have more from deceptive and the dean. -- yousef gamal el-din. the secretary-general of opec, mohammed barkindo, just sat down. he is confident, he is optimistic it is working out, but he has described the level of compliance as excellent. once this has taken place, both onshore and offshore so we are pretty sure the rebalancing ,rocess may be at a slower pace but it is on course, and is bound to accelerate because of the compass. >> monday morning things really kick off with the monitoring ofmittee that consists progeria and venezuela on one hand, then you have russia and oman. they first met for the expanded rule, so they will look at data and be in a position to make recommendations us how to best reply going forward. that brings up all kinds of scenarios about the past. w

yvonne: i-95 man.ed earlier, japanese politics is something of a shakeup with tokyo failing to counter the new party. taking 60landslide, seats in the 127 strong city assembly here that keeps pressure on shinzo abe and his mp's. with other worst performance in tokyo. talking more about this thing, this was a historic defeat. how serious is this really? does that spell trouble? is a fantastic result. what we have just had here is a smack upside the head for the prime minister and saying, get some points on the board. until we would have strong rumors of the election of the end of the year, they will have an election, you will do almost nothing. nothing is controversial ahead of that. what people want is more money in their pockets, get the economy going, get corporate profits up. as for the stock market is concerned, this is great news. betty: is his job in jeopardy? i think what we have is the children's crusade. we have koike who is good at presentation, but not managed to establish a lot. she has the

yvonne: i'm it on man in hong kong. you are watching -- i'm is on yvonne man in hong kong. first word news. the biggest reason given for not supporting prime minister abe was a lack of trust in him as a person. the republican party's hopes of repealing and replacing the affordable care act has hit the rocks come with passage of any plan in doubt. bill cassidyator declared the leadership plan a nonstarter. son has eldest confirmed meeting with a russian leader with kremlin ties during the campaign. donald trump junior says jared kushner and then campaign manager paul manafort also attended the meeting at trump tower. says theyork times" did the meeting in hopes of learning damaging information about hillary clinton. iraq says it is has liberated the northern city of mosul from the islamic state three years after its fall alerted the world to the group's strength. the offensive was launched eight months ago. where the group's leader announced his intention to create a caliphate. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 co

yvonne: i am yvonne man in hong kong. you are watching daybreak asia. let's go to first word news. u.s. military has staged a show of force in korea, sending nuclear capable b-1 bombers across the country. they flew from long. -- guam. launch of the second icbm means the whole of the continental u.s. is in range. , russia, anderned is ready to back measures against pyongyang. russia told the u.s. to reduce consular staff across the country by 755 people by september 1. this is following new sentence agreed to by congress. 455,ll lower the total to the same number russia has in the u.s. president putin said he will refrain from further measures, but it administration said they will act if necessary. >> this retaliation is long overdue. if the u.s. side decides to move further towards further deterioration, we will answer. we will respond in kind. we will mirror this. we will retaliate. opec ok and independent -- and independent producers meet in on two. -- abu dhabi. they will talk about why some countries are falling behind curbing production. 78% in production delta june. -- fell

yvonne. she may not say much today. she's here with her man and she stood by herman for how many years. >> we've been married for 58. >> we've been together since we were 13. >> that's so unusual in the entertainment world. so how is it that when you're song and you're singing, how you can be ex exploited. >> i came out of the projects. >> dc? >> yes. >> oh, wow. >> i wanted to be a star, so whn people come at you and say, i'm going to make you a star, you trust them. you do anything. you sign anything. all you're thinking about is being on that recordi being a star and that's where they take advantage of you. if we would just come out with business on our minds, it wouldn't happen to us, but we don't. >> mr. green, your perspective? >> it's a big picture. >> it's getting bigger, isn't it. >> it's getting bigger all along. we did the same thing. we trusted the -- our platinum record company. we made the company actually wih the songs we put out. not on the outside, but inside strong. i'm the original lead singer of the group. they didn't want

this man is a sensitive he made his own cord phone. doesn't it yvonne's like even the cord doesn't work for me even when the phone goes on and some of these areas. i remember it was laura's birthday. yes and then perhaps come over to your house when when is a good time this is measuring the phone. this connects to the phone so you can see any of copper wire this would be a wire inside. the same phone line that was already on poles comes into the house it's an analog landline phone but it still is still too hard for someone with a lotto sense to me we have to make modifications here you get the magnetic field now on this side. it stops. why is it so because there's no wire in here this is an air tube all it is is a tube the reason i have a pen attached is because i was holding. i was holding this and that was going my fingers would start to tingle and get numb because of that magnetic field so i just happened to use a plastic pen and then here's the air to and i have no magnetic field and this is a microphone and i speak into the microphone sometimes i hol