Skip to main content

tv   Bloomberg Daybreak Australia  Bloomberg  May 23, 2018 6:00pm-7:00pm EDT

6:00 pm
>> take a hike, a rate rise is coming soon and inflation overshoot won't be such a bad thing. betty: policymakers are in no hurry to accelerate the pace of hikes, the dollar rising again. haidi: trade tensions back as president trump weighs dumping tariffs on imported cars. betty: mark zuckerberg slammed over date of views.
6:01 pm
-- data abuse. haidi: i am haidi lun. this is "bloomberg daybreak: australia". betty: i am betty liu. we will be looking at how all the action on wall street will play into the trading day. something else for markets to look at today, the dovish tone of the fed minutes. slides, stocks coming back, treasury yields rising. -- the curve steepening, i should say. rising.up .2%, the s&p the nasdaq gaining some ground. let's take a quick look at how other markets moved as well on the active these minutes. you saw the 10 year yields coming down, some buying going on.
6:02 pm
the dollar has slid a bit, but up slightly. also, a slight bid under it. taking a look at the greenback overall, the green backsliding on this news. it seems like we are seeing a dovish tilt in the minutes. haidi: that statement about being able to tolerate a modest overshoot of the 2% inflation target. is almost a certainty the next rate hike will come in june. take a look at the set up in asia. the msci asia-pacific falling to the lowest in a fortnight. new zealand flat at the moment. idea that trump tweaking we might have to back away from the deal recently reached with china
6:03 pm
towards a different deal that will be easier to look at compliance with adding another injection of uncertainty into this trade scenario as well. futures in australia closing an hour ago. ups is how we are setting going into the open in sydney. the aussie dollar there. against dollar gaining everything in the g10 space except the yen. yen givenongside the geopolitical concerns. also concerns over meeting with north korea. new york crude above $71 a barrel, brent just shy of $80 a barrel. the bloomberg commodities , buting a little gain fumbled depending on how these trade talks proceed. let's get more on what the fed said in its may meeting and what it actually means with kathleen hays.
6:04 pm
phrasing,entences and so what is the message and if you get statement? >> you just mentioned in your conversation that there is a sentence prominently in these usually it is about 15 pages are so very carefully worded sentences and paragraphs from the federal reserve to signal what they're going to do, what they are thinking. here is the one that stands out. judge thatipants incoming information broadly confirmed the economic outlook, which may i add parenthetically more jobs growth, inflation, getting close to target, investment, etc., it would likely be soon appropriate for the committee to take another step in removing policy, the y accommodation. the fomc underscoring the things that said in these minutes, that it is not yet declaring victory
6:05 pm
on inflation, even though it had month.least for a non it was also noted, and some say that refers to jerome powell agreeing with this, that a of inflationiod would be consistent with the committee symmetric inflation objective and could be helpful in anchoring longer-run inflation expectations at a level can stand with that objective." dovishhings that sounded to people, concerned about the yield curve, the fed saying maybe we are getting closer to , may be having to change ford guidance to reflect that. one analyst saying dolls ruled the roost at the may meeting. he thinks there are many signs the doves are in control. the dothike rates, plots move ahead, but a cautious, slow-moving fed with an eye on inflation and labor
6:06 pm
markets as well. betty: thank you so much. for more on the fed in the markets, were joined by the ceo and founder of money 360. what did you make of these minutes by the fed, and in your view, it looks like june is pretty much priced in, but the question is then what? >> it is interesting to see what is happening. my focus has been on the real estate market. we certainly expect interest rates to continue to rise. rising interest rates lead to higher cap rates and lower real estate values come in so we see these things occurring in the markets leading to investors wanting to pull some money off the table, the owners of properties transitioning those investments to the depth side of the equation. we are seeing a lot of transition and the beginning of
6:07 pm
a flight to quality as investors transition from stock equity investments in real estate investments into the debt markets. we think rising rates will lead to that. betty: how about the volatility and rates? how has that affected foreign investments? >> we have seen an increase in foreign investment in our funds. we offer commercial real estate debt funds. it seems to be an attractive investment to a lot of investors, particularly foreign investors and asian investors. we have seen a lot of asian investment in the past two years , particularly south korea, but hong kong, china, singapore. transitioning again away from the equity investment into the debt funds viewed as a safer and more secure investment at this point in the market.
6:08 pm
we have had this upward trend we have had this upward trend for 10 years in real estate values, so the perception by many is we have to be near a top of the cycle, maybe even peaked already. with that turned coming, there has been this flight to invest in the debt side of the equation. it can still deliver an attractive return in the high single digits, but a way to participate in the commercial real estate market, which is attractive in the u.s., but at a safer and more secure place. the appetite from south korean investors has been strong. haidi: it's interesting you're seeing an interest from foreign investors when it comes to commercial and residential real estate. as wes point in the cycle have this unwinding from unprecedented monetary policy, you usually see money moving out of less liquid assets. the interesting thing about real estate is that it is not very liquid, but as investors sell properties, many smart
6:09 pm
investors are diversifying. real estate is not a liquid investment, unlike public equities come so investors cannot immediately transition their investment into real estate debt. we are seeing that as they have liquidity, they are beginning to diversify some of their investment in tech profits off the table and investors funds into safer, more secure investments. will seeally you investment go between the equity market and bond market, but today there are more attractive alternative sandy straight fixed income market. there are alternative funds, debt funds, credit funds, offering an opportunity to move into a safer investment, but still deliver an attractive yield in the high single digits. it has been interesting to see the increase, and we expect it to continue. you can make money in real estate on every side of the cycle as long as you are doing the right thing at the right time.
6:10 pm
at the top of the cycle and as it turns, it is much more attractive financially to be investing in debt that is safer and more secure during the part of the cycle. haidi: timing and positions as always. we appreciate your time. let's get you your first word news. north korea is preparing to destroy its main nuclear testing site even as president trump raised doubts about a summit here it select media travel to in the northeast. nuclear inspectors have not been invited. sign ofterpreted as a good faith, but insists pressure is still on. >> we have made zero concessions to date him and we have no intention of doing so. canada has blocked a proposed
6:11 pm
takeover of construction firm ec on group. justin trudeau's government announced his decision after launching a security view earlier this year. shares have declined to the lowest level since the deal was announced in october over concerns the deal would be blocked. a leading member of the u.k. government has admitted the brexit divorce bill will have to be paid, even if there is no trade deal with the european union. prime minister may has insisted the $15 billion settlement and dr part of the same package, although brussels has said they are separate. eurosceptic conservatives say may should not pay anything until a trade deal is reached. the president of italy has asked a law professor to form a government, even though he has no political experience and his coalitions agenda has alarmed the markets. thes backed by anti-establishment five-star
6:12 pm
movement and the anti-immigrant who have agreed on the so-called contract for a government of change. italy has been in political gridlock since march 4. global news 24 hours a day on air and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. haidi: just ahead, we will be covering free trade negotiations with the european union and the love-hate relationship with all strays biggest trading partner. , deal orter this hour no deal, president trump's conflicting statements about trade talks with china. this is bloomberg. ♪ this is bloomberg. ♪
6:13 pm
6:14 pm
6:15 pm
betty: be sure you turn into that interview. i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching "bloomberg daybreak: australia." president trump now mulling , sayingon imported cars the recently agreed deal with china may be too hard to get done. australia's relationship with china has soured since malcolm turnbull raise concerns about beijing meddling with media, university, and lawmakers. let's get more on this. great to have you with us.
6:16 pm
,'m looking at this editorial which is an extreme mouthpiece for beijing. one of the things that says is to punish australia, to teach us a lesson, they should cut imports from australia and import more from the u.s. to replace and improve that relationship instead. is there a concern these punitive moves could translate into policy given the relationship? >> look, none of us get particularly worked up by media, whether in australia or china. elements that hyperventilate about the relationship and put for their two cents worth. what matters are the high level discussions that take place, obviously in china last week, positive and constructive discussions with the mayor of shanghai. he is the second most senior
6:17 pm
person in that region. the discussions were positive and we focused on opportunities to broaden and deepen our trade and investment relationship. haidi: you don't have any concerns that this tit-for-tat? do you think anything diplomatically needs to be done to improve this relationship and have more ministerial visits from australia to china? .> i think dialogue is critical we want to make sure we can then you to engage in constructive discussions on a regular basis. i don't think megaphone diplomacy is helpful. let's also look at that nature of the relationship. our trade investment relationship with china, our current relationship is broad and deep. to paper over the
6:18 pm
fact that there are differences of opinion in certain areas. like any mature relationship, there will be differences of opinion, but we approach those differences in a respectful way, mindful of each other's sovereignty come and continue to build off the people links we and investmente relationship to continue to drive stability, peace, and prosperity in the region. haidi: i think china's problem is that it see some of australia's policy stances as not respectful of its sovereignty. this statement from the chinese foreign minister saying australia should disregard its traditional way of thinking and take a proactive approach to china's development. we have heard about this alternative model of development that is being proposed, particularly across asia. what to do think he is talking about there? not these certain
6:19 pm
about the exact specifics. certainly china has said the recent past and that they believe australia's policies are too beholden to the united states. an australian government perspective, we have an independent policy in the best interest of australia. that is what we do. we look at what will be in australia's national interest, the best for people of australia , and engage in a pragmatic weight with allies as well as major partners like china and countries like japan and korea. four have not always seen eye to eye on the various range of items. australia is able to deal in a constructive way with all of them because we are pragmatic, straightforward, plain speaking people, and we are committed to multilateralism and the
6:20 pm
importance of bodies like the wto, and very focused on a stable, peaceful, and prosperous region. betty: out of those countries you mentioned, china does stand out because you are so dependent on chinese trade and that country. it does tie your hands a bit, does it not come in terms of being able to use leverage against them? that is't think actually the paradigm that we look at the relationship through. it is not assessing what we can do through the use of leverage. i don't think that is a particularly constructive way. betty: isn't that the position though? no, what it reinforces is the importance of constructive dialogue. we have built a really strong trade relationship,
6:21 pm
investment relationship, with china. we have a free trade agreement with china that is underpinning a lot of what we do together. we were one of the first countries to join the asian infrastructure investment bank. we are willing to work with china on the belt and road initiative, but we also have incredibly strong ties with the united states. we are doing much together in that respect as well. likewise with japan and korea, so this is not a case of it being binary, black or white. this is a case of engaging in a constructive way, all of us combined, to ensure we have a stable, peaceful, and prosperous region. betty: on the u.s.-china trade front, i'm sure you with all of us are watching the tit-for-tatth, the you are seeing between the u.s. and china. do you think this is a new paradigm, and new normal perhaps
6:22 pm
, that we would just have to be at peace with, which is we will be in it for the long haul with continued dialogue on u.s.-china trade, which escalates on some days and the escalates on other days? -- de-escalates on other days? >> the world is not static. the world is very dynamic, with changes of leadership, different features, economic changes. there is a state of flux at what is happening at any point in time, but i do firmly believe that the best way every can turn country can make a contribution to peace, stability, and prosperity come is to ensure we maintain open lines of dialogue. that is what australia does, engage through a multitude of international forms, g20, apec,
6:23 pm
and others. if that means there is a list till the come to factor that in. that is not new. that has always been the case. you just calibrate around what the circumstances are at the time. haidi: is there a certain level of conflict in your cabinet which makes it hard to promote trade, tourism, and certainly that portfolio is the most vulnerable suffering the wrath from china if they are displeased, and it seems they are displeased with australia at the moment. does that make it harder for you to be able to push your cause? >> not at all. we are all pulling in the same direction as a government to ensure we serve australia's national interest in the people of australia well. make sure i serve
6:24 pm
the economic interest of the country, and that is why australia is deeply committed to having a fully diverse trade opportunity with the world. i have been pursuing opportunities in latin america. 11 and arehe tpp about to commence trade negotiations with the european union and the u.k. all of this is about having the full suite of market opportunities available to australia, because we know trade drives growth and trade to drive jobs, and we want to make sure the australian people enjoy a more prosperous future, and the best way is to make sure we engage in more trade. endi: australia is about to her formal free trade negotiations with the eu and india. is there a proactive push to diversify beyond being so
6:25 pm
reliant on china? we have the most ambitious trade agenda in australia's history. i have not taken a backward step about making sure we follow up on his many opportunities has possible. we have trade negotiations with indonesia, hong kong, india, the pacific alliance countries of colombia, mexico, peru, as well as the regional partnership. inside the next 12 months, we will commence negotiations with the european union and u.k. as well. this is a very forward leaning trade agenda and making sure that we have a diversified economic interests, tapping into global growth, traditional markets as well like the european union come all of it built around the understanding and knowledge that australia fares best when australia can engage in liberalize trade and
6:26 pm
investment. what do you hope to get of negotiations with the eu and how quickly do think they can come to a conclusion? i want them to conclude as efficiently as possible. i am not trying to do a trade deal and a record amount of time if it is not a good quality trade deal. fundamentally a good trade deal is what i am after, and the good trade deal produces win-win outcomes, good for the europeans and australia. we knowe areas where there is a trade imbalance brought about by the nature of the trading relationship. i would nominate agricultural as one example. australian nominates $3.6 billion, the import four-point
6:27 pm
$4.9 billion. europe, itore from you speaks to that imbalance in the relationship. we will look at fixing those in getting a better balance, but that is only one area. opportunitiesic in a broad range of areas. before we leave this, is the threat of a trade war a realistic one and something that concerns you? >> i certainly think we need to be vigilant and do all that we can to minimize or mitigate the risks of a trade war. i don't think it is likely at this point in time. i think the united states and china have indicated a certain amount of pragmatism. comeare having discussions and that is positive, and the u.s. is engaged in constructive
6:28 pm
discussions with the eu, brazil, as well as renegotiation around nafta. minister, we have to leave it there for now. ♪
6:29 pm
6:30 pm
haidi: it is 8:30 a.m. in sydney. markets open for trading in 90 minutes. you're looking at a live shot of melbourne, very cold. a chilly reception when it comes to asian stocks. session theterday's weakest in two weeks despite a confident session in the u.s. >> certainly much warmer in new york. it looks good in the markets as well. good for the bulls. let's get to first word news now. toyota fellsler and
6:31 pm
and late u.s. trade on news the trump administration is considering tariffs on imported vehicles. of 25 percent is reportedly under discussion using the same legal provision that has seen the u.s. impose tariffs on steel and aluminum. changes is in its early and is likely to face significant opposition. jared kushner has obtained a permanent security clearance after a second interview with special counsel robert mueller. lawyer says president trump's son-in-law is cooperating with the investigation and has turned over all requested information. was among 30 white house aides whose security clearance was downgraded in february. cambridge and the medical whistleblower -- cambrils analytic has whistleblower is saying mark zuckerberg is refusing to face the european parliamentary committee. he said it is the one form that will ask tough questions about data privacy.
6:32 pm
he said so far the ceo has been evasive. >> it has been a spectacle of non-answers. bizarrely facebook strategy seems to be go to testify, whether in the u.s. or in the european parliament, then saying i will get back to you. i will get back to you. that is a good question. i will get back to you. 1mdb saidrectors of the company is insolvent and cannot pay debts of $7 billion due in the next five years. government that has been d, far highermb than disclosed by the former administration. disinvited from this year's pacific rim wargames because of what the u.s. calls its continuing militarization of
6:33 pm
the south china sea. the defense department says beijing's actions are raising tensions and destabilizing the area. is onlyinsists it concerned with maritime safety, search, rescue, and fishing rights. global news 24 hours a day on air and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. haidi: thank you for that. let's get a quick update on markets, how trading is shaping up in new zealand. we had that resurgence session in the u.s., clawing back losses, investors more comfortable with that dovish set of fed minutes. u.s. dollar gaining against all g10 peers except for the yen. sydney futures showing some weakness at the open. let's take a look more broadly.
6:34 pm
we saw that 10 year yield in the u.s. below 3% reflate. it is still just sitting shy of 3% as investors digest this idea that the fed is comfortable with a modest overshoot of the inflation target. when it comes to the oil patch, $72,ork crude just shy of brent just shy of $80. we are looking at the turkish lira the central bank moved to raise rates high 300 basis points. that seems to have stemmed a the bleeding when it comes to the currency, but watching emerging markets over the next few days with paul krugman come the latest voice to add to concerns that the emerging-market meltdown has just begun. he is comparing it to the asian financial crisis. we saw a spike early on and that coin, but falling by .25%. all of this volatility stemming from geopolitics uncertainty
6:35 pm
over trade. the trump's easing his demand that north korea abandon its new program immediately and says it is still working towards a june 12 summit. u.s. wants says the kim jong-un to take "credible steps" towards denuclearization. is this a significant change of language and that we will see sanctions lifted before a complete dismantling of its nuclear program? >> yes, this does appear to be as significant statement. long beenosition has they want credible, verifiable, and rapid de-nuclear station on the peninsula. that was something north korea has pushed back on, so this seems to be a walking back of that and an easing up. doubt as to some whether the administration believes it can get a credible, verifiable denuclearization. in recent days we have heard
6:36 pm
that maybe do summit might not be happening. there has been some doubt cast upon that. even president trump said we will know next week whether there will be a summit. mike pompeo is walking back a and it u.s. position, seems to lend credibility to the uncertainty over whether the summit will happen. so a big change their and language in the ongoing north korea talks. betty: i want to turn to some of the news. trump is considering slapping tariffs on auto imports. this seems to be nafta-related. what is the latest on this? >> right, the trump administration is considering tariffs on automobile imports using a similar process to what we saw with steel and aluminum imports. they are called section 232 .uthority
6:37 pm
it is a national security of authority that allows the president to impor impose tarif. if the commerce department does open up the review, we could review, report, and eventually and determination, much like we saw with steel and aluminum tariffs, but pretty big news. almost a quarter of the car sold in the u.s. are imports according to government figures, so this would be very big. it comes against the backdrop of trade negotiations with china, and also with candid and mexico over the nafta deal. this could potentially help spur a deal with canada and mexico, hanging this terror threat out there, so potentially linked to that, but potentially big news there. betty: and also trump seemed to back away from a trade deal with china today. what is behind this latest shift in town? >> yes, definitely a big walk
6:38 pm
back with him saying we will have to use a different structure, that this one would be hard to verify and work. it comes amongst a lot of criticism. he took a lot of criticism for his announced a deal, so it is not surprising we are seeing a shift in tone here. betty: thank you so much. greg sullivan in washington. china's pledge to buy more germany goods could put and a tough spot. this is bloomberg. ♪
6:39 pm
6:40 pm
haidi: i am haidi lun in sydney. betty: i am betty liu in new york. let's get more on the trade talks between china and the u.s..
6:41 pm
joining us now is our next guest. mary, i want to start with those headlines in the past hour about president trump considering these u.s. auto import tariffs. likely it is nafta-related to pressure mexico be canada, but it seems to in the context of what appears to be more frustrating talks between the u.s. and china, the u.s. backing away and talking about a different structure. >> yes, the timing has always it doesurprise, but seem these two issues are theted, particularly given negative response that president trump has gotten to his movement towards more leniency for zte. to change the conversation and returned to his tough stance on trade with other countries and shift the focus away of what has become
6:42 pm
increasingly a political liability for him. betty: does that make what happen with zte more a one off? >> zte does appear to be a one-off. there does appear to be a special case, the facts of which are widely publicized now. however, i see a lot of concerns thet national security and chinese investment creeping into all kinds of discussions about our trade relationship with china, in particular considering huawei in the u.s.. even still, other types of cooperation seemed to be painted with this national security process, even though there are no direct allegations of wrongdoing by the chinese. betty: it does seem that way. reports ofk to these
6:43 pm
the auto import tariffs, what do you make of them? how likely is something like that will pass? >> it is hard to say. this administration has been focused on traditional, capital-intensive, 20th century , and nows, steel automobiles, so it is not that surprising when you look at the focus. negotiations, a major sticking point has been u.s. insistence on content protection for the united states, raising the amount of domestic content produced in north america. we have come to expect this type ebb and flow in terms of the
6:44 pm
threat of living trade protections by this administration. betty: sometimes it feels like from day to day we don't know more than we did a week or month ago. it often depends on what we get on twitter. investorsfficult for looking to make actual investment decisions based on this trading environment? >> i think it is extremely difficult. the peterson institute has done research showing the tariffs announced against china for the section 301 investigation and its findings primarily hit multinational supply chains. multinationals doing the bulk of their trade, importing and exporting, with china, and with other countries, are facing a difficult environment in terms of increasing investment in particular countries, shifting investment to third countries,
6:45 pm
speaking about investment in the united states, it is a fluid situation. seems liketech issue an ideological one. to me and a lot of people we have spoken to, there doesn't seem to be a solution given at the heart of it is the attempt to curtail china's ambitions to move up the value chain. is not the stated that is what many in china believe the u.s. is trying to do, curtail the development, you get the actual allegations have ,o do with technology transfer licensing agreements, etc. i believe we missed an important opportunity to make progress whilehose issues, which are overstated in some cases, do
6:46 pm
contain important elements of friction between the two countries. there are many ways the u.s. could have pursued their goals more productively with the chinese government, so this is an important issue for investors , one where we might have made progress, but did not make progress at all. haidi: mary, great to have you on. trade,we get more on getting some trade numbers from new zealand. april trade balance at 263 million against estimates of 198 million come so that surplus way more than expected, exports over 5 billion kiwi dollars, better than the 4.8 billion, and imports meeting expectations of 4.7 billion kiwi dollars there. will get more analysis plus look at the kiwi later on, but we stick with trade, the u.s.
6:47 pm
and china still grappling with their relationship. one country that could be squeezed in between is germany. to beijingmerkel has and something of a bind as china pledges to buy more american goods, threatening germany's trade relationship with the world's second-largest economy. tom mackenzie joins us from beijing. what is the chancellor hoping to achieve out of this visit? it's going to be something of a high wire balancing act. chancellor merkel is in beijing for two days and will be meeting with the premier and the president. as you said, the key concern amongst german businesses, but also policymakers from what we bee in hearing, is they will potentially frozen out as a result of this u.s.-china deal around trade. china committing it has said to buy more goods from the u.s.,
6:48 pm
and germany is concerned its companies will lose out essentially as a result of that. germany is china's largest trading partner in the european union. or talking about trade flows of so0 billion in 2017, chancellor merkel will be looking for assurances on that front that this rebalancing of the trade picture when not be to the detriment of german companies. washington and berlin do have shared concerns when it comes to china on cybersecurity, the made in china but program on technology, they don't have a united front when it comes to addressing these concerns because of the protectionism out of washington, particularly those tariffs on eu.l heading towards the they got a temporary reprieve until june, but it could come off. this is chancellor merkel pushing those concerns with her chinese counterparts,
6:49 pm
particularly around market access. they are concerned about a level playing field, and those concerns will be echoed wildly in the -- widely in the european union community. those are some of the concern she hopes to address with her chinese counterparts, and the express their to views on the move to open up the automobile and health care sectors. does the iran deal factor into this visit? >> this is interesting. beenellor merkel has trying to take a leading role in trying to keep this iran nuclear agreement in place after the u.s. pulled out. she has been working closely with president macron, the british, and the russians, recently meeting with vladimir putin. she will be wanting to sound out the chinese as to their stance, because beijing has not
6:50 pm
insignificant business dealings with iran. interests there as well, so she will be trying to get a feel from china on how they can coordinate to protect their business interests should the u.s. impose sanctions as a result of pulling out of this deal, whether through non-u.s. dollar clearing, so those are issues she is likely to address in terms of the geopolitics and the iran deal. china will be concerned about some machinations in germany, looking to increase oversight of chinese dealmaking in germany. in terms of china and europe, the amount of dealmaking there is 45% more in the last 10 years in terms of chinese investments in europe and in the u.s., so that is a key concern for china in terms of feeling out just how much sentiment there is in germany about having greater oversight of chinese dealmaking there. haidi: thank you so much. betty: let's see why the
6:51 pm
shipa-germany trade relation is so important. tom was saying,t take a look high in may. we can see in the trade flow is then that germany number five trade partner with china after the united states, japan, south korea, and hong of 2017. in dollars as merkel does meet xi jinping and other leaders in china, she will try to keep this that he if not grow this come over the next few years, but she does have this balancing act. she has to be the free trade champion we know her to be. with that said, she will have to protect german interests, and attachednd china have
6:52 pm
that protectionist term to germany. let's look at my next chart. on the face of it in terms of monthly basis, they have been fairly equal. our most recent month, we can see and white, that is germany's imports from china, $7.7 billion, but just under the $7 billion mark. ever since 2010, there has been a little surplus on germany side , and so they will be trying to get into increase, if not keep it steady. one specific thing in terms of the automobile sector, i want to bring this up and wrap this up, china passenger vehicle imports came in from germany really strong, and they are actually the ones who will see a bump from that agreement between the u.s. and china, saying they will
6:53 pm
lower tariffs to the 50% level from 25%. daimler here, about 200,000 cars. japanese automakers also getting a bump from this. at 213,000ming in vehicles there. these are the bumps we will be talking about over the next two and as angela merkel plans talks with leaders in china to come to some reciprocity on a number of trade issues. back to you. today,trade top of mind as it has been for a while. ramy inocencio in hong kong. known as they be land of camel milk and honey. we will find up next. this is bloomberg. ♪ ♪
6:54 pm
6:55 pm
betty: good morning.
6:56 pm
i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching "bloomberg daybreak: australia." got milk? that is.k, look no further than australia. farms are tapping into a burgeoning global market. our agricultural editor has the milk of a market in camel in australia. growing, but africa is still far and away the biggest market for camel milk. somalia just dominates. it is growing in popularity because of health claims about it, and it is higher in vitamin c and iron. haidi: the hipsters would be all over it. where is the demand coming from? >> africa, singapore, but the
6:57 pm
reason why there is such an opportunity and australia is australia has the biggest wild camel herd. camels are pretty wild anyway there aree time, but israel e-make camel milking machines, believe it or not. it is almost wild camels that make it. our street potentially the saudi arabia of camel milk. it seem like you had a bloomberg reporter try camel milk. what does it taste like? vouch for it, but apparently it is just like normal milk, only salty. haidi: it tastes just like chicken. thank you so much. i'm going to take her word for it.
6:58 pm
it might be a little bit wild for me. all the action on daybreak asia up next. we continue to talk about trade, maybe even camel milk. this is bloomberg. ♪
6:59 pm
7:00 pm
yvonne: it is 7:00 a.m. in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man. welcome to "daybreak asia." the latest fed minutes show a rate hike is soon. it won't be such a bad thing. policymakers are in no hurry to pace of hikes, the dollar rising again. betty: i am betty liu in new york, where it is just after 7:00 p.m. wednesday evening. trumptensions are back as waits tariffs on cars. washington eases demand on north korea,


info Stream Only

Uploaded by TV Archive on