tom mackenzie joins us from beijing with the latest. what do we know at this stage about the sarah: -- about the tariffs? >> we know that by the end of the day on friday we will get this list of tariffs focused on high imports -- imports. there will be duties on about $50 billion worth of goods. prettys telegraphed clearly by president trump early in the week when he gave an interview and said he was going to be taking tough action on ,hina when it comes to trade but of course that does not help the global economic picture. he appears to be defined -- defying the warnings of the imf about what this may due to the global economy. immediately we are looking for that chinese reaction. anna: we are looking for the chinese reaction and how they are -- how are they expected to respond? us theyrces have told are going to respond once the tariffs have been announced. tariffs are expected to be soon.ted -- enacted china is going to hit back pretty quickly in kind. frome expecting tariffs china on things like soybeans and aircraft as well. china

let's join tom mackenzie. tom, which of the industry groups that china wants to the industrych are groups that china have to target? tom: there are two components to this. they take in or will kick in on july 6. after that, we are looking at an additional $16 billion worth of tariffs that, at some point after that. the first will target things like soybeans, corn, port, and beef, but also the auto sector as well. u.s. auto exports particularly hit. it sees china as a significant market and bmw, which has a major factory and export the number of autos. that focuses on commodities. coal, oil, and gas. china imported about $400 million worth of u.s. coal back in 2017, and in terms of oil, china is the third-largest buyer of u.s. exports of oil. that's potentially significant if those additional $16 billion worth of tariffs come into play and shows china has taken a targeted approach in terms of hitting his agricultural states in the u.s. and also various sectors that trump has said he wants to revive. that is a s

tom mackenzie has been recovering the visit to beijing. what was he hoping to achieve here? >> this was the first visit to china in his role of secretary of state. pompeo met with the foreign minister and the key focus for ensuring that china would continue to implement these sanctions because china is by far the number one trade north korea. that he had the agreement from china and they would continue along with south korea and japan, as you say. those sanctions would hold until we see a complete disarmament of north korea. he was also pushed on this being reversible around denuclearization or denuclearization. there was still a part of the deal that they came to. take a look at what they had to say. >> we made it clear that the sanctions and the economic withf will only happen complete denuclearization of north korea. >> and another report coming out just in the last half an hour or that allf he is military drills between south korea and the u.s. will be suspended for the for seeable future. it trump had a mentioned there would be an end to the war games which he that desc

tom mackenzie out of beijing. mark konyn is still with us. tom mentioned that term leverage. if this all goes away, so does china's leverage as far as the ace card they hold over north korea as far as dealing with the americans. >> we are a very low point last summer, where the attention really ratcheted up and the rhetoric was coming out was not in anyone's interest. it is clearly in china's interest as well to see the border normalized, to see the relationship between the north and south become cooler, not so tense, to see the u.s. less bellicose in the way it is referring to the north, and really to try and sme improvement overall in the region. and not just for china. japan is a big stakeholder in the outcome of these stocks as well. but you raise a good point. china has always been a big supporter for the north, it has been sitting behind north supporting the regime. and in some sense provides the reassurance to the north that should these talks continue, we see some sort of china guaranteed in supporting the north to make sure the north feels comfortable going down that

she was a top woman on the list and sat down with bloomberg's tom mackenzie and shanghai as part of our venture china series to explain where he sees the most growth coming in the chinese tech sector. jenny: our focus is around the evolution of buying habits we call it our e-commerce upgrade strategy. we have investors and companies like alibaba. we are seeing new innovation happening in offline construction. so, the online companies are leveraging data that has been collected from consumers to serve them better, not just online through e-commerce, but off-line in terms of what they are shopping and buying off-line. this is happening in formats like convenience stores, so that is a big piece for us. integratedommerce, into off-line. the second area of growth for us is always around social. it,if you think about before, we like to say if you find a facebook every 10 years, you are great, but you can only find a facebook every 10 years, right? but in china you can always find , a facebook like this this -- a facebook-like business model. there is always new social disruption, whether in t

yvonne: tom mackenzie joining us from beijing. we's get more now on what should be watching as trading is underway in asia. mark is joining us from singapore. we have hong kong/china markets closed for the dragon festival. we are seeing the reaction in the rest of asia being moderate. what is your take on this? mark: we only have smaller markets open. although, japan is trading today. singapore is a place to watch. ite pen mkets that will be affected by trade. if we get a fallout from china /u.s. trade, singapore we will be looking at. they had a bad week last week. it will start on a soft note today. we will get indication from secondary markets. as you were saying, without hong kong and china we will not get a full picture until later in the week. i enough anxiety from people. you can see performance in the currency market. is a bit stronger against some of the asian currency in early trading. yes, we will get some indications and we also have many futures trading as well. the big picture will not come through until probably lat

tom mackenzie, china correspondent. us, the head of market analysis at law next europe -- at monex europe. they talk about how they open with a grand gesture and the rhetoric is dialed back a bit. you give us an evocative image in your note. you talk about how trump speaks loudly but drops the stick when offered candy. with that sense, nothing to worry about when you see china and trade falling out? markets are higher this morning. guest: i would say there is nothing to worry about. what we have seen is the administration seems more thanw. it is important to note these have a lot of leverage. i think there is probably a lot of opportunity, given that the talks are ongoing. there has not been unilateral withdrawal from nafta, and there could be headline wrapping incentives from china and the other parties that would probably be enough to take trump into the midterms. ranko, good morning to you. interesting in your notes, you --te that trump was handed in terms of this, you still don't see him pulling out. he pulled out o

that is go to tom mackenzie who is in beijing. good to see you this morning, tom. a very small from the pboc. what exactly does this tell us about the level of concern about the amongst china's policymakers? tom: it is significant that he came out and made these comments at all. as you said, it is a message of, don't panic. that the market moves yesterday and today were sentiment driven, that investors should be rational. saying that the pboc has the tools at it disposal to protect the markets and the economy from the continuing trade headwinds. that the pbocay putting liquidity into the economy, the most liquidity in the month of june that we have seen since december of 2016. it highlights that steps they are taking. there are also views from many economies that you will see cuts , that may come in the short to medium term as well. there were also hints at changes to the de-leveraging campaign. that raises questions about how china tackles its debt. but as he said, this is a message from the central bank governor to try and soon the nerves particularly amongst chi

tom mackenzie joining us from beijing. willord denuclearization likely be the most loaded word of the day when the historic u.s.-north korea summit begins. donald trump and kim jong-un have very different ideas to what it means. that raises fears that it will not be a meeting of minds. pres. trump: it would be easy for me to make a simple deal and claim victory. i don't want that. >> complete, verifiable, and irreversible. that is the president's ultimate aim to take to the negotiation table. kim will be what is being termed rejection ofach, a the so-called libyan model, and a demand that the u.s. removes its own nuclear weapons from the region. while trump has indicated flexibility, he will still want to see pyongyang agree to some sort of guideline. ramy: as we know, washington says nothing less than complete denuclearization will do. aside from geopolitics, there is the issue of economics. how much would that cost? our editor has been looking at this. kathleen, how do we tally this bill? kathleen: let's start by looking

capital managing partner jenny lee, speaking to tom mackenzie. coming up, you can now get discounts of whole foods,. this is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. >> this is "bloomberg technology." i am emily chang in san francisco. amazon prime members when i get 10% off at whole foods nationwide. amazon's expansion of whole foods grocery delivery and five new cities and apartment delivery highlights management , focus is -- focusing on online shopping pain points. phone is our the luke capital analyst, anthony, here with me in san francisco, along with our bloomberg executive editor. anthony, why raise the target? ony: amazon continues to eliminate the pain points for online shopping. the mor

jimmy lee speaking to tom mackenzie. coming up, amazon prime ministers -- prime members can now use discounts at whole foods. this is bloomberg. ♪ this is bloomberg technology, i am emily chang in san francisco. amazon prime members when i get 10% off at whole foods nationwide with a new note, of wholeexpansion foods grocery delivery and five new cities and apartment delivery highlights management pping on online sho point spri joining us on the e, anthony and a senior bloomberg tech editor. anthony, why raise the target? amazon continues to eliminate the pain points for online shopping. has over 40% market share in terms of u.s. online purchases. -- the amazonon locker inside your apartment building. 47 -- 24/7 and it is better for the buildings because buildings are being overrun by packages. rollout forhe whole foods of savings for prime members nationwide and the fact that they are now delivering in 19 cities and will be doing more, we think it is going to spur additional grocery orders. these are ways that amazon

here -- that was peter speaking with our own tom mackenzie. >> there are two main focuses for us. the first is the consumption of china going through. likether area is areas artificial intelligence. >> what is the most dangerous area for a venture capitalist? >> one of the models we don't think is promising is buying products from overseas and selling them to domestic consumers. time, almost everyone made an investment in this area but we didn't. we decided to hold our money. longer exist.t no -- we do nothing the model is viable and now front runners are struggling. was worth something like $5 billion last year. how does it feel to watch a company grow so quickly in a short amount of time? i will still look at it in a very rational way. it has been there for three years. >> do you think it can survive competition from alibaba? >> of course i think it can. otherwise, why would i invest in the? -- invest in it? >> coming up, we have gotten complaints. that is the assessment that facebook's cfo sheryl sandberg has said about the company's new ad policy. our network onlow tictoc and

tom, thank you. tom mackenzie, live out of beijing. this is the other part. of the united states is warning north korea it will be releasing sanctions only when pyongyang shows the reversible moves toward denuclearize and. ing.enucleariz i think there's been an evolution in the way the trump administration is thinking about how it will deal with north korea. -- weisunderstanding understood the trump administration thought it would be something that happens early quick the, that north korea would give up the nukes. there has been an evolution reflected in what mattis said, because he said north korea will have to demonstrate verifiable and irreversible steps toward denuclearization. they have to start demonstrating era versatile denuclearization. that is what we will have to to differentiate it from deals in the past, to have some timetable for the process, what how long the timetable might go for is one of the bigger questions. there's a gapth, in the definition of denuclearization on both sides. what do you make of even the starting point of this? >> exactly

you so much for that, tom mackenzie. let's get some thoughts from alex, joining us from the trading for in sydney, and our this isconomist, expecting the level of tears from president trump to state $50 billion worth of chinese goods. to potentially investigate, does this quickly become stagflationary in terms of getting that short-term bump, but in the longer term, the economic drag from something like this is going to be enormous. >> if we know anything about how this works, something like being implemented would be a very material drag. we think in the short run, the bigger these tariff gets, it puts more flesh -- more pressure on inflation. the u.s. now has to find ways to reduce the loss from imports and that puts pressure on capacity as well. whichever way it looks it's going to result in high inflation midterm. high rates are not what the global economy needs in a broadly based fashion, particular emerging markets in asia which will do damage over the long run. haidi: what is your best and worst case scenario of h

thank you to tom mackenzie in beijing. us.or is with we will talking with someone from ubs yesterday and they said we are not going to a full-blown trade war, trade will just shift around the globe. , is it morehe case from a portfolio management perspective of relocating risk rather than taking risk off the table? trevor: it is a bit of both. as with many parts of the donald trump policy, this is misguided. he thinks trade is a zero sum game and of china just china exports from america, america loses, the flipside is china is supporting u.s. dollars through its capital and dollars flowing back into america from chinese investors. helping keep interest rates and mortgage rates down. inflationary for americans to slap tariffs and it hurts american growth and could push interest rates up and makes things more expensive for u.s. consumers. it is a risk negative at the margins. at the same time, you have other factors like the trump tax cuts. it is not very straightforward. it adds to the general mood of being late cycle and w

ramy: tom mackenzie, thank you for that update. up next, the world cup kicks off in russia with a big win to the host but businesses are also hoping to score. more in a moment. this is bloomberg. ♪ yvonne: the fee for world cup in russia officially kicks off. the post, look at that store, demolishing saudi arabia by 5-0. as the tournament unfolds, you can play on the terminal. check it out, the results on bloomberg, using our function. certainly you can compete with everyone on the network, which is what we will be doing. businesses and, tv makers, advertisers and brewers, looking to score a win. more than one billion viewers tuned in for the final between germany and argentina in 2014. we are joined by bloomberg intelligence analyst tom here. you are trying to stay up to see a, but this -- you were trying to see it, but this will be about more than just eyeballs for tv. reporter: historically in the years where we have a regular big sporting event like the winter olympics and the fee for world cup -- fifa world cup, you see a bi

the are joined by our common -- andespondent tom mackenzie mark. did wilbur ross achieve anything this weekend? both sides said that they had talks to move things forward and they focused on specifics, but both sides came out of this without a joint statement. you talked about this was a hearted stance from china saying that these agreements, this deal around agricultural and energy imports to china that it signed up to on may 19, this agreement null be nolan floyd if -- not retractthey did the tariffs. i think it is fair to say the lack of decisiveness coming out of the trump administration and unpredictability -- ross had come here for two days of talks with vice premier. following that agreement between the two sides were china said it was eventually increase its imports from the u.s. following that agreement, you had the trump comments that this deal probably could not stand up, that it might not work. of course, you have the president coming out last week saying that the tariffs he threatened previously on $50 billion worth of imports was stil

we go to tom mackenzie who is standing by with details. tom? tom: i am pleased to say that i am joined by the european chamber of commerce here in china. this is their annual business sentiment survey, the eu chamber dovish is this on an annual chamber the eu publishes this on an annual basis. can you give me a sense of what the concerns are of business more broadly here on the ground in china as a result of the tensions? and whether these fictions seem to be accelerating? mats: basically, we share the u.s. government concerns. but using tariffs as a way to deal with these problems makes us worried. we talked about this and the conference, we don't feel confident. it is distracting global supply chains, our own global supply systems. a have been working with role-based global system to deal with these issues. this is what we are engaging with on a daily basis with the chinese government. t some other issues that the white house has been focused on, those are issues that are affecting european companies as well of course. how the madese of in ch

let's revisit some of the week's more interesting interviews on bloomberg television, starting with tom mackenzie's exclusive conversation with morgan stanley chairman and ceo james gorman at the china summit in beijing. james: we have extraordinary global synchronized growth, everywhere from japan through to the u.s. doing well, china doing very well, southeast asia, across continental europe. global synchronized growth. we have had these political eruptions, which is wht has disrupted -- whether it is brexit, what's going on now in italy and spain with the coming elections, angela merkel trying to pull together the coalition. it is this almost competition between inexorable corporate growth earnings improvement, economic strength against political instability and rise of populism. and the latest italian, you know, many crisis which lasted all of about 24 hours is another manifestation. tom: it sounds like you take a more nuanced view than george all of about 24 hours is another soros, who says he thinks what is facing is potentially another global financial crisis and the euro faces a

she was a top woman on the list and sat down with bloomberg's tom mackenzie as part of our venture china series to explain where he sees the most growth coming in the chinese tech sector. >> our focus is around the habits weof buying call it our e-commerce upgrade strategy. investors and companies like alibaba. we are seeing new innovation happening in offline construction. the online companies are leveraging data that has been collected from consumers to serve them better, not just online, but also off-line. in terms of what they are shopping and buying off-line. this is happening in formats like convenience stores, so that is a big peace. e-commerce integrated into off-line. the second area of growth for us is around social. before, wek about, if you find a facebook every 10 years, you are great, but you can only find it every 10 years. but in china, you can always find a facebook like this this model. there is always new social disruption, whether in the phone -- form of video, livestream. but the key is content, features driven, and targeting different segments of users. we have inve

they spoke to a bloomberg tom mackenzie. >> it would be someone with a great idea who was really smart, but now you are seeing with a lot more. people who cofounded, who were head of baidu research. of course, they want more money and higher valuations. it is people who have been in the internet industry for 10 plus years that are coming out. >> do you think the silicon lley has been slow to wake up to what is going on in china? >> this year, i have definitely seen a turn in interest about chinese companies. silicon valley has not seen that much in terms of the renovation -- innovation in a while. you also had mike morris's letter earlier. i think there is a lot of interest in people wanting to come and see the companies and understand the momentum. investors in the u.s. are excited about what is happening. the companies are growing much faster than a lot of u.s. companies. >> how closely do you allign your decision-making? >> i think i very much agree with that story. it will be sooner than 2025. by 2020, i think we'll see a lot more global companies that are chinese in the tech secto

emily: that was doing long -- duane kuang speaking with tom mackenzie. a ceo will join us to talk about investing in tencent and more. that is next. and we take a look into walmart watch exclusive members only shopping experience. jet black ceo joins us later in the hour. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chain in san francisco. -- emily chang in san francisco. business had a boost. is one of the biggest is under the radar tech investors in the world and long relied on it anyone percent taken chinese tech giant tencent to accelerate profit, but it's investments are starting to bear fruit. folded 2% stake in tencent and the netted another 1.6 billion dollar profit from the sale of a stake in the indian e-commerce startup in may. joining us to discuss, naspers ceo. fastening story of how they transformed themselves 30 years ago. tell us about the recent share sales. why did you think you needed these billions of dollars to build naspers of the future? >> thanks a lot for having me, emily. the main reason we freed up o

tom mackenzie, bloomberg. emily: here to discuss the global supply chain for apple and the foxconn ipo, we are joined by ian king, and we also have gerrit with this. you have an apple analyst who says the report is just noise, should we be skeptical? gerrit: i think it's worth treating the report with a hefty grain of salt, we have seen reports about the supply chain before, it is an sure what supply chains they are talking about in the report. you can see how investors are reacting on the supplier chain sign, there have been deeper in tech's, but in terms of what to expect from apple in terms of sales, i don't think you can expect concrete evidence that it will be as negative as the report suggests. emily: ian, broadcom reported orders, and you were listening in on the call. what did you figure out from the call? ian: we're back on the roller coaster we have been on for i don't know how many years, trying to get how much of a was ordering -- how much apple is ordering. apple has really been getting rid of a l

speakingat was bao yi to bloomberg's tom mackenzie. microsoft is closing the gap with amazon in obtaining federal security approval. it provides an edge in the pentagon's winner take all contract. amazon is the only tech firm currently certified to store the government's most classified and sensitive data, which other companies complain favorite -- favor it. coming up, ai and space. the iss is getting a new member. what makes it different? this is bloomberg. ♪ mark: i am mark crumpton in new york. at least five people are dead, several others are reportedly gravely injured after a mass shooting at the capital gazette newspaper in annapolis, maryland. authorities say a gunman who opened fire inside the newsroom at the building housing the paper has been arrested. you are looking at a live picture from the office complex located in maryland. arrivedrnor larry hogan at the scene earlier and said he was absolutely devastated by the tragedy. >> it is a tragic situation. we don't have all the information yet and we can't give all the infor

haidi: that was jenny lee speaking to our very own tom mackenzie in shanghai. david.bring back no doubt we are in the midst of a chinese ipo bonanza right now. we're watching the likes of -- about two thirds of them have come in below the issue price, about 20% below on average as of the end of last week. are we seeing a situation where by way shinzo just too stretched? david: i think the potential of jennyinese market that lee was just talking about is so vast, it's understandable that people would want to give big valuations to these companies. a time ofwe are in uncertainty on what's going to happen with the chinese text sector, partly because of the disputes with the u.s. i'm very bullish long-term about chinese tech, despite whatever we might say about the u.s.-china tech dispute. it is interesting what the ,revious speaker talked about in general, china has failed on the social front. china has this gigantic social company on by tencent which is really not penetrated in western markets at all. it's had some good success in markets in the developing world,

joining us for more is tom mackenzie. he joins us from beijing. how is china's stance actually changing? of: we got a sense frustration from chinese policymakers over the weekend. this had been two days of the wilbur ross working with his chinese counterpart. the idea had been that they would be fleshing out this agreement that was reached in may around china imported agricultural and energy products. after that agreement, you had president trump saying that agreement was probably unworkable. last week you have president trump touting threats of tariffs. there was frustration from chinese policymakers around the ebb and flow of the direction when it comes to the strategy around trade. that was highlighted by this statement. chinese state media saying the red line for china is they will not implement these agreements if the u.s. continues to threaten tariffs. francine: give me a sense of what china could do. i don't know if it is retaliation or they give something to the u.s. so president trump goes easy on them. tom: the path they've been trying t

emily: that was cedar lake capital founder bao yi speaking to bloomberg's tom mackenzie. well, microsoft is closing the gap with amazon in obtaining federal security approval. it provides an edge for the other potential bidders in the pentagon's winner take all contract. amazon is the only tech firm currently certified to store the government's most classified and sensitive data, which other companies complain favors it for the deal. coming up, ai and space. the international space station is getting a new member. people are calling it alexa and space, but what makes it different? that is next. this is bloomberg. ♪ dave: open the pod bay doors, hal. hal: i'm sorry, dave. i'm afraid i can't do that. emily: it is perhaps the most iconic line uttered by an ai robot in space. "2001 a space odyssey," hal refusing an astronaut's direct order. and as a scarier thought that might have been for moviegoers in 1968, a hopefully kinder and gentler ai robot voice is headed into space on friday. >> how are you today? >> i'm a bit tired at the moment. how about you? i can do a lot. do

let's revisit the week's most interesting interviews on bloomberg television, starting with tom mackenzie's exclusive gormanation with james at the china summit in beijing. >> we have extraordinary global synchronized growth, everywhere from japan through to the u.s. doing well, china doing well, southeast asia, across continental europe. global synchronized growth. we had these political eruptions, which is what it has disrupted, whether it is brexit, what's going on now in italy and spain with the coming elections, angela merkel trying to pull together a coalition. it is this almost competition between inexorable corporate growth earnings and economic strength against political instability and rise of populism. and the latest italian- mini-crisis, if you will, which lasted all of 24 hours, is another manifestation. >> it seems like you take a more nuanced view than george soros, that he thinks there's another global financial crisis and they are facing in existential threat. >> honestly, i think that's ridiculous. i don't think we are facing an existential threat at all. this is something

tom mackenzie. how is china's stance on the trade talks changing? it seems they are getting more aggressive now. tom: that is a fair characterization. their stance.ning we have heard from other state media and an editorial calling the trump team capricious and unpredictable. they are frustrated that they seem to get traction and an agreement and then donald trump comes alonand changes that. the visit from wilbur ross was meant to detail the agreement that came out in mid-may. importing morena agricultural products. that was meant to be the focus of this weekend's talks. shortly after that mid-may announcement, donald trump said the agreement will not be able to hold. there is frustration here in china. will notthat they implement these agreements if the threat of terrorists remains. -- tariffs remains. guy: walk us through how the playbook would work. few weeks, next potentially the propaganda's list the products, the $50 billion worth of chinese products that they would impose a tax on. june 15 is when that list could be published and then the tari

tom mackenzie there. to follow the latest on the developing u.s. trade story and the market reaction, you can do on bloomberg. let's go to the senior currency strategist from london. what surprises you about the latest in this trade tension? is it the pace with which we are seeing movement on this? >> i think so. we have president trump knowing exactly what he wants to. if you go back, i think the market consensus was that this wouldn't get to or we wouldn't see a huge escalation. looking at the news flow, not just from the u.s., but also from china, the market is starting to read evaluat -- reevaluate. if that is the case, we have to reevaluate our outlook for world growth. that is from so many different asset classes as well. chart care that shows why china can't go took to toe and match the import tariffs. it simply does not import enough from the united states. this underlines one of the points that trump has been making over the years which is the imbalance in the trading relationship. it doesn't tell us what china might choose to do. tom was

tom mackenzie is in beijing. have we had any official response yet? heard from a researcher at the ministry of commerce saying retaliatory measures are likely. other sources told us those will be put in place quickly once we get the official decision from washington. they are likely to retaliate in kind. those agreements they have been trying to hammer out with commerce secretary ross in beijing and washington on increasing imports of agricultural products will be put on hold. china said it wants to avoid a trade war, but is under pressure to stand up to what it says is u.s. aggression. there was a state run media is saying piece china should reach out to other economies to coordinate a response to this aggressive stance on trade from the trump administration. anything of we read significance in the decision by beijing to approve qualcomm's merger with nxp? up in the all wrapped discussions around zte, the second-largest telecoms equipment maker in china. it was hit the commerce department over violating sanctions. they came to an agreement around thi

. >> that was the ceo speaking to tom mackenzie. we have some breaking lines coming through here. this is a french electricity company speaking out and saying they are not preparing a bid. this is the renewable unit of portugal's edp which is quite interesting. there was some speculation that they were considering a bid for the renewable unit. pay theentially could way for the gorges. this could actually acquire this renewable energy unit. 733 units perred share. they are not preparing for a bid at the moment. we have teamed up with twitter to launch tictoc by twitter. can get reports verified by us. if you're on twitter, make sure to follow tictoc. this is bloomberg. ♪ ♪ this is daybreak asia. i am yvonne man in hong kong. kathleen: i am kathleen hays in new york. president trump accused harley davidson of waving the white flag. the motorcycle maker, once a trump favorite laying eu tariffs because of t president's own levies on alumina. announced plans to close a factory in missouri and but one in thailand. another iconic american brand is in the firing line as well. itk dani

leei: that was jenny speaking to tom mackenzie in shanghai. more on the trade fight between the u.s. and china and how it could play into the tech sector. what kind of trouble in terms of investment" otherwise i anticipated right now -- investment flows otherwise -- or otherwise are anticipated now? we are seeing a selloff in chinese stocks, and with mega-unicorns coming to market didi, tencent music. is the returns will not be as strong has initially anticipated, but longer-term you have to look at the broader ramifications, not just in terms of tariffs, but in terms of u.s.-chinese relations. rely on these startups u.s.-educated talent. , you wantng startup to invest in the right technologies, and if the u.s. market is close to them, that is a big handicap. playedse things into the uncertainty plaguing the investment community right now. haidi: is there a contingency plan? >> i think it is very much weight can see at the moment. and see at the moment. we are getting conflicting signals. it looks like a trade war is inevitable. now it looks l

tom mackenzie is in beijing. what is the government's message here? is one we have chinabefore, which is remains prepared to increase its imports of products from the united states, particularly agricultural and energy products , the focus of talks between wilbur ross in beijing over the weekend. what chinese officials have been telling us is those conversations were detailed, focused on those two areas, and china remains willing to increase those imports. the clock is ticking down to june 15, when washington could release this list of chinese products on which they could slap that 25% tariff, $50 billion worth of chinese goods. analysts think the odds are still in favor of both washington and beijing coming to some agreement before that happens, but point out the clock is ticking down. any agreements on increasing importance if tariffs are propose will be off the table. we are looking ahead to trade data out of china. that is in focus given the administration's obsession with the u.s. deficit. we are expecting import numbers about $33ade surplus bill

let's turn to tom mackenzie in beijing for a look from this angle. what would be the best result for china's leadership? you well know china has long called for pyongyang and washington to sit down and have talks. of course that is now exactly what is happening. yo saw -- you have thought on that front china would be optimistic in this shift away from the threat of nuclear war we had six months ago or so. there is a key caviar which china will be concerned that pyongyang gets too close to washington, so they want to make sure that is not an outcome that comes to pass. it would be -- weakening of the south korean and u.s. alliance, that is something that may come about in the medium to long-term. weird from the u.s. defense secretary seeing the troop situation would not be discussed at the initial talks. of course it should be pointed out that china will be keen as well to get involved in any economic opportunities in north korea should a peace process take part, or unfold on the back of these talks, particularly around infrastructure. in and been rep

our tom mackenzie in shanghai for this historic moment. >> historic moment, yes. we have a decision in june last year and there has been anticipation domestically and beyond as well, during the likes of many welcoming this move. but 20034a-shares that will be included in the emerging markets index. lots of groups included now. there are etf's and pension funds and will now have coverage of these a-shares. you are looking at a waiting of under 0.4%, so minimal at this stage, but really it is about symbolism as well as additional inflows we are likely to see. further steps being made to open up china's markets. have this inclusion, and we have already seen reports about a billion dollars worth of additional inflows just yesterday as a result of this inclusion. there are expectations you will see annual inflows tick up depending on who you talk to. symbolism in the short-term, and the long-term impact on china's markets? certainly, there is a hope that as there is more research focused on some of these bitares, you will get a more price discovery, more focus on the f

mackenzie. rupee, andving the word of warning for the fed. our truce of interview with the new indonesian central bank chief. this is bloomberg. ♪ ♪ asia,"his is "daybreak i'm ramy inocencio in new york. yvonne: i'm yvonne man in hong kong. indonesia's new central bank chief joined us, and called on the fed to be more mindful of politics at policy tightening. let's go to haslinda amin, who spoke with him in his first interview with international media. warning from the fed, but this is the new guy in town that is taking whatever it takes approach. >> he is the new guy in town, but he has been with the bank for more than 30 years. he has gone through several crisis. the impression is he knows what he is doing. he is saying the pace is a key issue for central bankers. just like r.b.i. governor, he is urging the fed to slow the pace of stimulus. he says that will support not just indonesia's growth, but global growth as a whole. even though every country must decide policy themselves, you have

tom mackenzie joining us. does this signal a change of stance from the president? tom: who really knows. it is donald trump we are talking about. it is only cases like nafta he ztehad the change of heart, a flip of heart. change his mind on north korea, several times on the trade discussions with china. it is a possibility. we talk about business operators in china, chinese businesses and foreign businesses there is the hope they cling to that this is a negotiation tactic and trump will walk back some of these threats. if they are determined in the white house to affect concrete change around china's industrial policy, with very few sites china is likely to budge on that and where china has been making some concessions around the market open this and increasing imports, those areas and agreements that now particularly between the u.s. and china have been shelled. china has made no signs or, with none that it will be changing or concessionsadical around these trade tariffs yet. so we are waiting and operators hope there will be a change. trump wants to see reciproca

tom mackenzie, our correspondent talking with the commerce president, mats harborn. and looking for ways to up their influence, issues surrounding north korea. beijing again.in i think he leaves today, his third time in as many months. what is he doing there? well, kim jong-un is traveling to beijing, as you said, the third time since march. it is his first place he left -- he went to after leaving his really,and he is there, to report back on the singapore summit last week between president trump, in which they reached a joint statement to workg a desire toward the complete denuclearization of the korean peninsula and also to improve relations between the two sides. china has a large stake in the outcome of that meeting as one of the participants in the and aal korean war signatory of the 1953 armistice that brought it to a halt. china has a desire to maintain and alsothe peninsula to make sure that its own interests are looked after in any resolution there. apart from trade, how does the typical relationship between washington and beijing fit? kim's presence in bei

tom mackenzie joins us from beijing with the latest. how much of a setback is this for zte? t adds another layer of uncertainty for a company hoping to start trading again. we will be watching that stock closely today. when you saw in the senate was a vote of 91-4 on a bill that included an amendment that would see penalties reimposed on the chinese telecom company that locked the company out of buying tech from the u.s., including chips. it would still have to work its way through the house of representatives and may be watered down, but comes after the agreement that the chinese government and zte came to with the commerce department on a $1.4 billion fine, changing management, and how compliance offices are overseeing operations in the country, underlying not just the republican and democrat pushback in terms of trump's decision to come to a deal on zte, which trump said was a favor to zeke ee, but also a broader set of concerns when it comes to , butnal -- favor to zte also broader set of concerns when it comes to other issues. rishaad: with the traits that in the backgr

capital'sat was ggv jenny lee speaking to tom mackenzie in shanghai. still not forget our interactive tv function, tv go. you can look over past interviews like the one we just did with jenny lee. this is for bloomberg subscribers only, make sure to check it out. at tv . this is bloomberg. ♪ ♪ is "daybreaks asia," i am kathleen hays in new york. yvonne: and this is what is coming up next on bloomberg, .hat as bring in rishaad thi rishaad: this company is able to identify your face and can do vehicle license plate recognition. we have an interview from the mobile congress in china with the cofounder, steve will be doing that. also, we will be looking at where we are with trade. our guest will be along to give us his take on this and put everything into perspective. just over half an hour to go before we get into the all-important china profit key.rs, with jobs being we are looking at 21.9% growth in the previous month, industrials intel nominal gdp growth, they will give us an idea of where economy is headed, and margaret young will be joining u