. ♪ ♪ haidi: i am haidi lun in sydney. yvonne: i am yvonne man in hong kong. you are watching daybreak australia. president trump continues to escalate the growing trade tensions, saying the united states is insisting all countries that have placed artificial barriers and tariffs on goods going into their country remove those or be met with more than reciprocity by the usa. trade must be fair. the trade battle is beginning to raise a risk of a slowdown in a vibrant american economy. more with ros krasny joining us from d.c. is this the week the trade war gets off after months of and splitting threats? ros: i think this is kind of the week where the rubber hits the road. president trump just set the table again with his tweet. on friday a big deadline where the u.s. is expected to put investment restrictions on china and to move ahead on so-called section 301 actions against china on what the u.s. considers to be intellectual property. those are really big moves, then beyond that, a week or so, july 6, will be the day when tariffs come into effect on $34 billio

i'm haidi lun. we're 12 away from the opening of asian markets. >> just past six :00 year. -- six a got here. we will look at how the asia-pacific training day is going on. only in new york but also in washington. the fed when of 25 basis points. that was expected given we are looking at new ranges for the gdp as well as the. for future rate hikes -- the dot for future rate hikes. let's go to what the chairman said to some of the economy. >> the economy is doing very well. most people want to find jobs are finding them. unemployment and inflation are low. forrest rates have been low some years while the economy has been recovering from the financial crisis. ramy: what does this all mean looking ahead? we will get to that in a ce of minutes. first, a quick reminder of how u.s. stocks ended. as the news dropped from the fed, we also saw stocks drop from the news. with interest rates going higher, that always has an effect on equities and risk. the dow is down about .5%. the s&p 500 is down loth that a

haidi: i am haidi lun. you are watching daybreak australia. the banking industry faces an unprecedented criminal prosecution as deutsche bank and citigroup face cartel charges over a $1.9 billion -- we are joined now. the latest negative headline after what has been evidence that would suggest really a culture of poor behavior. >> the way we look at it is, it is about how widespread, how ingrained these issues are. from a credit perspective, probably two aspects. one is risk management framework of the banks. we recently placed in -- the bank on negative outlook because of the identification from this finding, but there is a longer-term issue around reputation and how that impacts the broader franchises of these instit. haidi: is this systemic? you mentioned money laundering and antiterrorism. do you think it is systemic? tim: when we look at it, we are not looking at individual cases. we are looking at more broad issues. in the cba case, it was not the money laundering issue itself. it was therudential inquiry report into the framework. those

., i'm haidi lun. this is "daybreak australia." we are two hours away from the open of asia's first major market. >> and it is just past 6:00 p.m. here in new york. good morning. we are looking at how the action on wall street will play into the asia-pacific trading day. once again, there has been a lot of attention on this trade rhetoric and we are waiting on the next actions from both the u.s. and china, as it has gone back and forth. haidi: it feels like that very much. the market has been sanguine about the trade threat, putting it on the back burner for the last few months, but finally ready to pay attention this week. a risk off session playoff right across the u.s. and across global equities, as well. it is acute when you look at particular groups. >> let's get a reminder on how u.s. stocks ended, because you continue to see the divergence. the dow jones industrial average heavier weighted toward it industrials, towards banks as well, but industrials really being hit within the s&p 500, while the nasdaq is still showing resi

this is bloomberg. ♪ haidi: miami haidi lun in sydney. ramy: you are watching "daybreak: australia." stocks around the world may be performing pretty well right now. in asia, there is a new emerging asset class, private credit. that is what brings our next guest to hong kong. he is president and ceo of churchill asset management. talk to me about the appetite for investors in asia for the reason you are there now. debte appetite for private in asia has been quite good. we have seen a significant amount of capital raised billion, roughly $180 in private credit, and asia continues to increase in the appetite from asian investors continues to grow. certainly an important driver for the asset class. ramy: if you break this down whats the region, countries, territories, are attractive for investors are would be investors to look at? >> sure. the we have seen is strongest interest coming from japan and south korea. japanese investors are looking for more conservative income. private credit provides that. we have seen interest there and in korea

i am haidi lun. ramy: i am ramy inocencio in new york. you are watching "bloomberg daybreauralia look at the firsts with jessica summers now. rackeda investors have the board, defeating a proposal to require in independent chairman. it approved the reelection of three directors. the board advised keeping elon musk as ceo as chairman. and others have proposed the idea of an independent chairman amid claims targend the board had failed to oversee elon musk. nxp higher after reports zte signed an agreement. the reuters report also quotes the commerce department, saying an agreement has been signed. the chinese company has replaced top executives, and president trump said it can resume business if it paid the $1.3 billion fine. government has asked saudi arabia and opec producers to increase oil production by one million barrels a day as retail gasoline prices surge to their highest in more than three years. president trumpas publicly complained about the opec policy that boosted prices. it is highly unr washington ask for a specific output h

let's join haidi lun with first word news. china has reaffirmed its claim to be a free-trade leader, criticizing what the president says selfish policies. speaking in shanghai, his message was in contrast to the disarray at the g7 summit in quebec. he said the world must maintain the rule and support multinational trade. inflation accelerated in chinese factories last month, driven by higher prices for crude oil. indexs consumer price climbed 2% last month. that matched forecasts. italy has confirmed it has no intention of leaving the eurozone. the new government said there has been no conversation about dumping the common current the and that ministers will do everything possible to maintain normal relations. the coalition said they want to boost growth through investments, rather than increasing spending. bitcoin sold the most in three months after corey graham admitted it had been hacked -- coinrail admitted they had been hacked. they say they are reviewing their systems and cryptocurrencies are now being stored in a cold w

haidi: i'm haidi lun in sydney. also coming up, president trump saying he could deal with north korea. the lack of details troubling observers. this is "bloomberg markets: asia." ♪ haidi: not impressed with the communique signed between the two leaders. also not impressed, the return to the markets after a suspension of almost two months for the telecoms company vde -- zte. policymakers in the u.s. trying to get that ban reinstated. falling over 39%, the biggest decline in just about 14 years. it was a day on wall street where we did see the nasdaq had a new record, but then again, the gains are pretty small. pretty much flat day. this is what it looks like at the moment. the nikkei about the only major market in positive terrain. false for hong kong and shanghai in particular. let's get to the first word n in sydney with pn. paul: thank you. president trump has repeated his belief that he can do a deal with north korea, saying he said -- he set kim jong-un on board. this is the most concrete development from the

i'm haidi lun. we will take a look at how the action and wall street will play into the final trading day for the asia-pacific region. a weekend separates us from potential history be made. all looking ahead to this trump-kim summit. ahead of that, we have the bilateral meeting between the japanese prime minister and president trump. in president spoke about, the joint conference at the rose garden, spoke about wanting to sign an agreement with north meeting,that tuesday potentially to put a formal end to the korean war. you think that will happen but it will probably be the easy time. the hardware comes after that. as we go into the weekend, the g7, g six plus one talks, a lot of talk when it comes to trade and tariffs. he spoke about the trade relationship america wants to have with japan and its allies. president trump: the united states seeks a bilateral deal japan that is based on the principle of fairness and reciprocity. we are working hard to reduce our trade imbalance which is very substant

haidi: and i am haidi lun here in sydney. you are watching "bloomberg daybreak: australia." let's get more in the markets now. the rally in tech shares giving u.s. stocks a boost, among concerns easing of a possible trade war. to get analysis is touchdown advising global market strategist. i was saying earlier, nothing much has actually changed between yesterday and today, yet investors are feeling a little more comfortable. is their complacency, as we heard from bill krugman earlier this week, that we are still seeing markets not pricing in the potential serious downturn that could come from a trade war? >> i think there is some i -- i don'tbut want to say i completely understand, but i think i understand what the markets are doing. we just learned today that trump does respond to public opinion. i think as we move down this escalation of trade and tariffs, there could be pressure later on, maybe two months from now, that would end up pulling us back out. at -- i think the market is looking at where do these things fallout. haidi: it sounds like you are of the hopeful camp,

haidi: in sydney, i'm haidi lun. coming up, oil sliding ahead of what could be a fiery opec meeting with iran leading something of a rebellion. this is "bloomberg markets: asia ." rishaad: just to seeing hong kong closed. shenzhen and taipei as well because of the dragon boat holiday. concerns about the trade war getting worse, but a bit of world war. moment. have it at the that's the picturof what's happening. that one. close for there we have it. haidi. haidi: we are talking about last week being the most important week of the year for investors. we might get more market reaction. we spoke about the concerns over trade playing out across the commodities market. copper, soybeans, cole. we have seen that reaction across the commodities complex. could be a contentious messi opec meeting, divided going into friday. you are seeing declines when it comes to wti and brent. first word news. paul allen was the headlines in sydney. a bigger anposted expected trade deficit for mate with imports soaring 14% on year, double the

i'm haidi lun, this is bloomberg. yvonne: washington is upping the pressure on pyongyang days from the historic trump-kim summit in singapore. the white house once kim jong-un to make the first move and commit to a timetable in surrendering his nuclear arsenal. let's get to stephen engle. he will be in singapore for the summit next week i'm a as am i. a lot hanging on here. are we really going to see any concrete agreement next week? >> it is interesting, as heidi gave the headlines, this chess match that is starting to develop. interesting the different tactics that donald trump is trying to take ahead of the negotiations. learning he is willing to walk away if things do not go well in the opening minutes. aey want pyongyang to give timetable first to surrender their nuclear arsenal, and apparently donald trump has been advised not to offer concessions ahead or at the summit. let's put the onus on pyongyang to make the first move. we also your donald trump is open to offering -- we also hear donald trump is open to a

. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. the business flash headlines, rupert murdoch appears to have won approval to acquire sky. it is not a done deal. comcast has submitted a 16% higher bid. authorities want fox to divest sky news if it completes the takeover. murdoch's plans to sell sky news to disney and entertainment assets, which comcast may also try to buy. bids forbhp received its shale portfolio that would value the unit at $9 billion. the offers come from bp and chevron. shell submitted a bid with blackstone in may. bhp expecting to receive $10 billion or more as bidding for the division proceeds to a second round, and $13 billion if it sells the assets piecemeal. xiaomi has added six chinese banks for its hong kong listing, expected to be the world's biggest ipo in four years. will act as global coordinators. seeking $10 billion from the ipo to be hong kong's first with a weighted voting rights structure. rishaad: standard chartered may , --ooking to add to hubs two hubs, singapore and hong kong, as it looks to s

i am haidi lun. russia got what they wanted out of the opec meeting with a deal to improve production. saudi has said they will keep oil prices under control. the deal approaches $1 million per day. iran says they don't believe they will get oil after the sanctions reimposed by the u.s. >> it is against the market, against the free market. it is not in the benefit of the iran consumers. the level price caused by actions of president trump. says they are ready to retaliate with a 20% tariff. an internal eu memo rebuffs. trump asserts that the block is treating the u.s. unfairly. in china forare high-level trade talks. 's business lobby groups have told theresa may that they are deeply concerned that time is running out for a brexit deal to protect hundreds of thousands of british jobs. they warned that in the absence of clarity, businesses will have to prepare for a worst-case scenario. they want plans before the summer recess starts. hina has pushed past japan to become the largest buyer of natural g

enda: haidi: i am haidi lun in sydney. you are watching daybreak australia or asia i should say in australia where i am. first word news with jenna. jenna: thank you very much. stocks have climbed in late trading after msci gave the countries emerging market status. they will be added to index is in about a year, 20 nations including china, india, turkey and brazil. this could boost the argentine peso when trading returns thursday. they could get an imf credit line and an indexed upgrade in the same week. hasu.k. prime minister defended off a rebellion from within her own party to win a crucial brexit vote. the fight was over whether she should have the power to take the u.k. out of the e.u. without a deal. the rebels wanted parliament to have a meaningful vote on the way forward. they say brussels fears uncertainty will continue out of the threat of soap opera. chinese smartphone maker xiaomi has sets tentative terms for an ipo in hong kong that could raise $6.1 billion. bloomberg has been told it plans to $22e shares at

i am haidi lun in sydney. one of the earliest investors is set for a windfall in the tech giant six point $1 billion public offering as part of our venture china series, he tells what drove his decision to invest in the company early on. got involved in a company in very early days. when we made the decision to go with that company, that was only an idea. the secondary market, they make the judgments for the numbers. if they see we can have another view to observe, how will the user react to the malaysian delivered to them? they do not know this company's background. they have no idea. there is great entrepreneur. they just know this is maybe more studio. they are screaming about this and they are crazy about it. they are loyal to the product. they take huge risks. means we already have market share from the competitor , even without sending any -- when the company decided to raise valuation. although they had zero revenue. looks like it is very expensive but it is really treat -- cheap. to digital millions of

haidi: and i'm haidi lun in sydney. you're watching daybreak australia. china is reiterating its opposition on curbing investment in the u.s. is white house officials tussle over trade policy ahead of the deadline. joining us now is american enterprise institute scholar derek scissors. derek, we were just saying a couple of minutes ago that things change so rapidly and so quickly with a tweet or comment from one of the white house officials that you don't necessarily want to get attached to any given outcome. what is a likely outcome here? will you assume cooler heads will prevail? derek: it depends on what you mean by cooler. i think we will get the $34 billion in u.s. tariffs. it a lot of time to head that off. inclinationt has an toward terrorists and the administration wants to show that it is tough on china after backing off a step on investment and export control. i think we will get the $34 billion, that's not a lot of money. after that, the opportunity is for cooler heads to prevail. >> do you think negotiations are underway behind closed doors? c

end iranian haidi: i'm haidi lun in sydney. itsa company that made fortune in semiconductors is eyeing acquisitions in aerospace and health care. this is "bloomberg markets: asia." ♪ haidi: what to do about the yan risk. 10th straight day of losses, a record. is is a new library. it shows the losses in the chinese currency are steepening. a slew of factors are at place. the campaign is crushing liquidity, not really following the fed. today, we did have a draining liquidity from the market. stronger-than-expected yan 16, sending a warning signal. i am not saying this is a correlation prayed since we had president trump announce more weiffs on chinese goods, have seen cnh trading 2% stronger. the longest losing streak in four years. that is it ais deliberate policy? a deliberate appreciation taking place? it could obviate those tariffs to some extent. trading day is underway in indonesia. >> it is a busy week for indonesia, retail election and policy delusion do this week from bank indonesia. jci adding about 2/10 of 1%. takin

this is bloomberg. ♪ haidi: i'm haidi lun. ramy: i'm ramy inocencio. you are watching "daybreak australia." central banks making headlines today, jay powell facing criticism. the head of the central bank in powell --ng that jay the rate decision coming up in australia in a few hours. not pulling any punches. >> you make a point. when you put in article, an op-ed in the financial times, exactly what he did, basically saying one big reason why emerging markets have been in turmoil is because of the fed. the title is "emerging markets face double dollar whammy." you said it is not a fed rate hike, it is the fact that the fed is tapering down its balance sheet, at the same time the u.s. treasury department has boosted the issuance of notes and bonds to finance the tax cuts. he says that this is a problem, it is slowing down global growth. his plea is slow down the tapering to stop the turmoil. this is what he said. "dollar funding has evaporated from sovereign debt markets, emerging market have witnessed a sharp reversal of capital flows for the past six w

haidi: i am haidi lun. deal, but to a deservesay it doesn't that second chance and the administration is firing blanks on china. this is "bloomberg markets: asia." ♪ rishaad: we will be checking equity markets in this part of we will look at emerging markets, where the action has been. brazil intensifying efforts to protect their own currencies. the emerging markets facing the biggest test since 2013, the so-called taper tantrum. the movement not going to the havens. 109 and gold about $1300 an ounce, but down a fraction. haidi: the key question whether the central bank intervention in the emerging markets space is having longer-term impact. it seems investors are not getting that effort to shore up confidence. capyen, that strength will any outperformance in japanese equities and whether china is a safe haven as well. let's look at trading across asia this friday. thearkets coming online, taiex off ahead of trade data. stocks are sliding in kuala lumpur and singapore. emphasis on malaysia, technical indi

's ceo speaking to bloomberg's haidi lun in sydney. up next, australia's largest bank agrees what would be the largest civil penalty in the nation's corporate history? the background to the settlement , coming up next. this is bloomberg. ♪ ramy: welcome back, this is "daybreak asia." yvonne: i am yvonne man in hong kong. the bank of australia has agreed to pay a record find that settles more than 53,000 breaches of money laundering and terrorism financing laws. once go to our editor frost really a and new zealand. take a look at this price tag here. double what cba was forecasting in terms of the settlement. how will this affect their bottom line? hit their going to bottom line by 700 million this morning, as we said, this is the to bet civil penalty ever paid in australian corporate history. the deal agreed between commonwealth bank and the financial crimes authority is signed up by the federal court, let's wind back and look specifically at what commonwealth bank has a knology. it has -- has egg knowledge. it has admitted 53,000 br

. >> i am haidi lun in sydney. hesitate to raise rates again, if required. our exclusive interview was coming up this hour. this is bloomberg markets: asia. >> we ar gains, on wall streetrnight. this off-again on-again trade war roller coaster. investors are thinking with conciliatory statements, not to mention geopolitical risks going into this key singapore summit between north korea and the u.s., not a great deal of concern on the markets it seems. rish across the board we are seeing gains. we will have a look at that as jakarta gets on stream. 1, with thatg6 plus -- it could be g6 plus

. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. just a week out from the july 6 deadline for trumps tariffs on chinese goods as trade tensions are seeing deepening and an economic slowdown taking place on the mainland. a white paper made the case for multilateral trade and detailing ,ts commitments to the wto saying china has lived up to its responsibility by opening its markets to the world and delivering on tariff reductions. joining us now is the managing director at rock creek global advisors and the former u.s. negotiator for the tpp and the trade representative for southeast asia. does china have a point? the accusations or the beef the trump administration has historic or current issues? >> they are current issues. theseo sides have had issues for many, many years, and discussions have gone on for a long time, but they have not been result, so we are where we are today because the issues remain. haidi: barbara, were getting a line from the boj, cutting its billion. jgb to ¥410 we were looking at ¥430 billion in those last

haidi: i am haidi lun. you are watching daybreak australia. let's get you to first word news with ramy inocencio in new york. ramy: good morning. president trump and kim jong-un are insight for -- are in singapore. they will be meeting at the secluded capello hotel on the island on tuesday. nuclear weapons are top of the agenda of course. president trump will insist the rth agree to dismantle its program while kim will demand the u.s. remove its own weapons from the region. the trump administration is stepping up its attack on canada, saying justin trudeau is heading to hell for crossing president trump. peter navarro said a nafta deal would have been agreed by now if canada had spent less time lobbying congress. trump left the g7 with a stream of tweets attacking trudeau and threatening tariffs on automobiles. >> there is a special place in hell for any foreign leader that engages in bad faith diplomacy with president donald j. trump, then tries to stab him in the back on the way out the door. that is what bad faith justin trudeau did with th

haidi: i am haidi lun. from grilling burgers to chilling beer, how electric carmakers are giving used batteries and new charge and retirement. this is "bloomberg markets: asia." ♪ haidi: rish, we are headed for an 11 today of weakness for the yuan, the quickest pace of depreciation, down 5% this month, since 2015. take a look at non-deliverable forwards. blog indicates we could get close to equilibrium for that trade. if we know one thing, the chinese currency, either way you have a tendency to get burned. rishaad: the oil market on a tear, up to levels we have not seen since 2014. part of this is down to donald trump suggesting his allies should not be buying iranian

let's get the latest on the market access with haidi lun. we are off session lows of the day but it has been a pretty turbulent week for asian aesthetic stocks. seven sessions out of the past eight have ended lower. there seems to be momentum in the selloff that had been started by raising rates and a high u.s. dollar environment. now the trade war concerns seem to be accelerating that. 2/8 of ai off by about percent. the yen has been holding pretty steady, safe haven demand. about 4%. topix fall the tech sectors responding to the tensions and tariffs being slung from washington to beijing and back again. we had pretty weak japanese inflation for may, underscoring the trap the boj is in not being able to exit that extraordinary monetary policy soon. concerns over baking stock in japan with issues over the 0% policy weighing on profitability. he spoke about the disappointment chinese investors had in not getting the rrr cut. we are down about .1% there. if you look at the premium investors are paying for u.s. stocks versus shanghai, we haven'

i'm haidi lun in sydney. it is just past 6:30 p.m. and you are it is just past 6:3. and you are watching daybreak austria. >> the trump administration will receive a -- release a refined list. it is shortly after the release. mario draghi has put the european central bank on the road to raising interest rates. >> progress toward a sustained adjustment. >> and part of the u.s. and european central banks, investors will be focusing on that. helping japan's exporters and assistinghelping japan's exportd assisting the boj inflation campaign. they might be able to stay in the block past march 2019. talks are stalled on the irish border and the future trade deal. privately questioned whether they can finish on time. british prime minister theresa withn parliament next week eu lawmakers. >> we allow parliament to instruct the government. undermines my three guests. kit would be constitutionally unprecedented. >> the u.s. security and it weighedmmission currency.ond it bitcoin had the biggest rally in almost two months. powered by more than 2700 journalists and analysts in m

. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. has dismissed concerns that u.s. companies are becoming anxious about the andpect of a trade war postponing investment and hiring decisions. he says washington has a distinctive fannish in the trade tussle. >> once they put tariffs on the whole $150 billion, they have nothing more they can do. we can go theoretically all the way up to $500 billion. that is not an easy game for them to play, and similar ratios with the other countries. that is what president trump means when he says that if it ,eally does get to be a big war we have many more bullets than these other countries. rishaad: let's bring in our next guest. welcome to the program. wilbur ross saying they have more bullets than the u.s., but china has the nuclear option. it has all of those treasuries, and this is the deal. quite work because it is not just tariffs, there are other tools in the arsenal china has. ,here is the treasury market which you alluded to come and the potential for sanctions on individual companies. u.s

--hong kong, i'm shots along haidi: i am haidi lun. the race divides opinion with calls for hikes and a pause. we hear from james bullard. this is "bloomberg markets: asia ." haidi: first trading day of the month and also payroll day. at ahead of that, closer to home, we finally have the multiplecipated across months. more than 200 chinese joining the asia index. not seeing much of a bump when it comes to markets, though. rishaad: a bloomberg opinion great,saying if it is so stocks beennese headed in a southerly direction edifice? people have been -- ahead of this? that is not something that is done in china, you would have thought they would be bit up. like a subdued friday and we are not seeing much optimism when it comes to the mainland markets. we have expectation of not much shares for the msci. the shanghai composite off one third of a percent. taking a look at elsewhere, the nikkei about one third of 1%. support from a weaker yen. the yen, slipping after the boj and announced it is cutting its bond purchases. markets, not seeing

i am haidi lun in sydney. rishaad: i am in hong kong. a down day. are -- sliding across the region. we are seeing some fluctuations in hong kong. we have an index extending its drop into bear market territory after joining its asia counterparts in that space on wednesday. if we look elsewhere, we are seeing other spots, this gain of about 2/10 of a percent. continuing to climb into an all-time high. there was a very dovish decision, holding steady on rates. toig picture when it comes e.m. rates. we are seeing the worst order for bonds and stocks in the em space since september 2015. a lot of that has to do with the fortunes of the you want. 6.61 trading at 60 -- against the dollar. new york crude trading at 2014 levels. >> thank you so much for that. let's get to the first word news with paul allen in sydney. investors are being told to hong kong ipo is well oversubscribed. the hong kong economic journal says margin loans suggest only a one-time oversubscription so far. there was a close today at 5 p.m., with pricing due to be set on thursday in san francisco. the white house is mov

he later clarified his statement in an interview with bloomberg ticky haidi lun. -- bloomberg's haidi lun. >> i was referring to one individual, not the staff in general. we have more than 33% that are female. it would be my pleasure to have . female ceo candidate that is your bloomberg business flash. david: thanks so much. elon musk takes the stage at tesla's annual shareholders meeting and this time he might have some challenges ahead of him. activist shareholders are calling for a vote against three of his board members, including his brother and james murdoch. tore is even a call for musk give up his jewel roll as -- his dual as chairman and ceo. kern mcpherson of glass lewis joins us. welcome, good to have you here. , one of thes chances you are going to prevail on not having these people reelection -- reelected and why are you against them? prevailing,ance of i don't think is very high, considering elon musk controls a very large part of that vote. voices ofrtainly seen opposition intensifying over the past year at tesla with the number of shareholder groups calling for a vote

., 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 trump has belt on european weakness. we're talking about this retall toirp tone struck over china and the e.u. brexit also saying the timeline is worrying. the french finance minister speaking to reporters there in paris. so doubling doubt on this tit for tat tendency to fight back. not taking this lying down at all. cath clean: no wonder that -- kathleen: no wonled they were major stock indexes which have proven pretty resilient to this kind of back and forth. we see a big dwroun turn in u.s.

i am haidi lun. ramy: i am ramy inocencio where it is fast 6:30. -- past 6:30. first word news with haslinda amin. economy ishe global on the verge of a trade war after china counteracts on trump's tariffs. each nation has a detaedist of products to be hit with tariffs from july 6. beijing is targeting commodity producers of the american heartland after the u.s. focus levees to curb china's industrial block. is arump: president xi great man. wonderful guy, but at some point we have to straighten it up your we lost $500 billion in trade deficit last year. we cannot do that. haslinda: chinese state media have accushe trump administration of disgraceful behavior in starting a trade war. the people's daily said the u.s. has damaged businesses and the global economic order. state television is taking a similar line. >> what upsets us is america doesn't care at all about prior consensus and changes their mind. china doesn't want to fight a trade war but has to retaliate against america's selfish, shortsighted behavior and protect our country and chinese interests and

haidi: and i'm haidi lun in your. you're watching "bloomberg daybreak: australia." u.s. stocks falling, although we the session lows, if that's any consolation. we heard, is there to extraordinary complacency we are investors sitting up and paying him sort of attention, because ever since february we've been talking about this rotation into defensive strategy and away from growth and into value. have we actually seen that? >> we haven't really seen it. when i came in this morning, there was no lack of complacency when i saw the screen. when you look at how strong the u.s. market is, i think krugman has a point, and we may indeed see the vix continue to tick up, but the u.s. and credit -- u.s. economy is incredibly strong. that factors into president trump's calculation on the trade war, if you're going to do it, at at do it with nominal gdp 5%, maybe even 6%. it's not a bad time to do it. so a little complacency, maybe, but you have an incredibly strong engine right now in the u.s. and that is what is driving a lot. haidi: is it your assumption -- willse tariffs be they

. ♪ haidi: i'm haidi lun in sydney. ramy: you are watching "bloomberg: daybreak australia." at&t shares are slping in late at&t shares are slipping in late trade after a judge cleared and $85 billion takeover of time warner without conditions. at&t said the deal will fuel its evolution into a media powerhouse that can go head-to-head with the likes of netflix and amazon. ruling reallyy's mean for us? >> this is a stunning victory for at&t. this kind of embarrassing for the government, a really staked its case on the fact that the ,eal it said would rate prices but the judge today absolutely dismissed that saying that governments case wasm are thin. a huge victory for at&t but an embarrassment for the government. it seems a lot of investors are excited because this could pave the way for other future deals. let's exactly. we are expecting the floodgates to open as early as tomorrow. you'll probably see comcast come out for his bid that disney as already agreed to buy. ifwill also mean that verizon or charter wanted to buy a content company, it would make it easier for them. t

that was tim clark speaking to haidi lun. wti futures rebounding to about $65 a barrel this morning. drops after a more than 5% in the previous three sessions. ofce volatility comes ahead this month's opec meeting. what they reopened the taps? joining us is our oil reporter. any sign of where he will see the next leg of prices? $60? are we in the middle are we heading lower? when you look at oil prices today, it's rebounding and remaining above $65 a barrel but over the past three sessions it has dropped more than 5% to below its hundred day moving average on monday. that was the first time since september so we can say prices are still quite low. has been rising ever since saudi and russia have been signaling they may change production due to significant supply losses from venezuela. continue to see uncertainties as well as volatilities rising in the market. nna: production remained unchanged last month. we are focusing in with what they choose to do with production cuts. what are we watching for? learned that opec kept its

haidi: i am haidi lun. clouds on the horizon, airlines meeting for their annual meeting. profit forecasts, and the good times are about to come to an end. this is bloomberg markets: asia. ♪ rishaad: market action, positivity outlook, taking a look at those taking off for the week. it is in kuala lumpur, taipei and there we have it as well, singapore as well. we have a move to the upside of twse. the time -- thai positi.s. jobs data, responsible for all of this. we have increased optimism if you wish or otherwise. we will get an interest rate from the federal reserve as early as this month. after all of that jobs data -- let's have a look at the open for what is happening in hong kong, shenzhen and shanghai. despite the latest bout of u.s.-china trade tensions, we are seeing futures pointing higher, perhaps optimism coming through from the pboc's move on friday to relieve funding stress on smaller businesses and the country's cash-strapped sectors. this has been amid the concern desksing corporis default for it default, which pushed government debt to the highest levels

he later attempted to clarify his statement in an interview with bloomberg's haidi lun. >> i was only referring to one individual. i was not referring to the staff in general. we have more than 33% that are fema it would be my pleasure to have to becomeeo candidate ceo after me. global newsiette: 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. julietty with you some big drops in commodities. agricultural products are dragging declines amid concerns the u.s.-china trade spat could cut demand for farm goods. china is a major global buyer of american agricultural product and increased obstacles to trade could create major issues for demand. joining us, bloomberg's team leaders for metals, mining and agriculture. why are countries like china picking agricultural products when they are choosing to retaliate against u.s. tariffs? >> i think the reason for that is they are trying to go after where trump's base of support and where the trump voters are. you are seeing agriculture come into the fore

haidi: i am haidi lun. this is "bloomberg markets: asia ." far off fromo perhaps entering a bear market when it comes to chinese stocks today. you get a sense that investors are waiting after the interview with the pboc governor, "show me the money," or provide some support or do something on liquidity. maybe the next arrow or olive branch. double-edgede a olive branch. are looking at this, as well, aren't they? perhaps, it is a wait and see approach, and one of the same will be a curve inversion, maybe , and maybe not this time, and a look at what has happened in the last few years. let's have a look at indonesia, seven trading days. there was the holiday. what have we got for jakarta, sophie? 1.4% coming that from the break, and there was a potential for losses given the holiday slump, with the seven-daybreak, but looking ahead, they say the central bank decision to defend the rupiah, that could affect things. mayor puzzling in a move towards a present for benchmark -- they towardsiling in a move 8% for the benchmark. japanese stocks easing

. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. apple nearing a deal for its first feature film, marking a new chapter. dave macomb is joining us. why is apple getting into that this is of making movies? one of the reasons apple became the most viable company is that it has built a platform for disturbing films, television, and music, but that is now under threat from scores of competitors, amazon to netflix. we see comcast getting in the act. everyone is scrambling to buy assets and produce their own films. it is a vertical integration. apple owns the distribution and are looking at content to fill that. that is what all the competitors are doing. they are in a very competitive space to get the right content and put it on to their system so their platform is the one that tracks subscribers. rishaad: indeed, it is something we have seen with xiaomi. do they have what it takes to make it in the film business? thing it hasfirst got is bags and bags money, and that is what talks in the film industry. type faur bloomberg and billion in

haidi: and i am haidi done in sydney. -- haidi lun in

. ♪ haidi: this is bloomberg markets: asia. i am haidi lun in sydney. a quick check of the latest business headlines. bsg has agreed to a $7 billion acquisition of maus of germany, a deal championed by warren buffett. usg excepted an offer of $44 a share, which rose from $42 after berkshire hathaway supported the bid. the deal has the virtue of ending what buffett has called a disappointing investment. rishaad: germany's online marketplace addressing its ipo at the top end of the range, aiming to raise billions of dollars, giving it a market value of something like $3.6 billion with this stock set to begin on june 19. the company was built by focusing on smartphone users. they have now more than 10 million monthly active customers. haidi: masayoshi son's vision fun has set up a $250 million investment in a california-based data storage firm. the funding also includes cisco, hewlett-packard, and sequoia capital. the total equity raised his $410 million. the company coith data storage companies such as dell and commvault systems. rishaad: let's get you ba

haidi: i am haidi lun. deal, but to a deservesay it doesn't that second chance and the administration is firi

haidi: in sydney, i'm haidi lun. coming up, oil sliding ahead of what could be a fiery opec meeting with iran leading something of a rebellion. this

. ♪ haidi: this is bloomberg markets: asia, i'm haidi lun in sydney. a quick check of the business flash headlines. china's hna group tends to make of billions of dollars by selling a stake in an airline. the state fund is part of a wider restructuring. the carrier is selling 20% of cashhares to 10 investors, to be used to buy new planes and boost staff training. u.s. insurer genworth is a step closer to being bought out by a chinese holding company. it's one approval by a security panel for a $2.7 billion buyout. the two companies agreed to use a third-party provider to help protect consumer data, a key sticking point in previous talks. they still need approval from other regulators. amazon under pressure to improve factory conditions in china, who make the echo speaker and of the kindle he reader. they released their investigation of conditions that a factory, owned by on high precision, said employees had to work over 100 hours of overtime in violation of chinese law and it lacked fire safety precon. counting down to markets in hong kong, rish takin

haidi: and i am haidi done in sydney. sydney. lun in 's beijing preparing for a currency trade fight with trump? this is "bloomberg markets: asia p or car asia." ♪ thisidi, the market mood tuesday is obviously not unbridled optimism. singapore right now entered a itrection yesterday, and looks like we are looking at 3200. year.as our bottom last below that, it is hard to see any support for that market, haidi. haidi: it is hard to see any sort of support, momentum turning so negative. the overnight session was pretty turbulent, over the confusion of where the next ratcheting up of the trade tensions, the investment curbs of 10 are going to come from. malaysian stocks are holding their head above water, and in taiwan, tech heavy come at much -- the tech heavy stocks are trading much lower there. let us get to the latest going into another day. we will see a bear market in china, sophie. sophie: we are eyeing the bear market stocks falling 20% since setting up the quÉbec in joinery. we are likely to see support. -- se setting up