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tv   Bloomberg Daybreak Australia  Bloomberg  May 27, 2018 6:00pm-7:00pm EDT

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haidi: off-again, on-again, trump says the kim summit should go ahead next month, and the u.s. team is talking to north korea. betty: these comments call for a second meeting -- after a second meeting with kim jong-un and moon jae-in. asdi: strength in china industrial posits snap the six-month slowing streak. betty: china's biggest ipo since 2015, alibaba, tencent, baidu by into soft comes plans.
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hello from hong kong where it is past 6:00 a.m. in the city. this is daybreak australia. we are two hours away from the open of asia's first major market. haidi: it is past 8:00 a.m. in sydney. we will look at how all the action on wall street will play into the asia-pacific trading day. it is geopolitics, this roller coaster of emotion that continues. it was off, we had the abrupt decision from donald trump week, calling into question the behavior of the north koreans and calling off the singapore summit but over the weekend, dramatic development. we had the surprise meeting between north and south korea, the latest -- leaders there, and donald trump we can be on track for this june 12 day in singapore. let's look at the markets because not much of a chance to get a reaction when it comes to u.s. markets, being off for memorial day. u.k. also closed for the spring bank holiday.
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this is how it was friday, like volume kind of session, the dow s&p theoff .25%, the same. we had energy stocks getting help with the boost in oil prices, oil front and center. we are still meets -- weeks away from the meeting about adding output for the markets, seemingly getting the oil bulls nervous. yvonne: that will be a key focus for you guys in australia. opec reportedly saying oil glut has been cleared. this makes a possible move of easing those curves given what sony's -- saudis and what russia have said. here is asia so far. given geopolitical tensions are less a little bit, new zealand all of on the anz, but these commodity currencies, they tumbled last week due to the plunge in oil prices. 69.22 for the kiwi. the aussie holding at 75.58, but
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we had downside given that price of wti as well as brent. the kiwi trade as well. look at the big move in commodities releasing gold falling off, .3%. we have the 1300 level, but it is about the dramatic move in the oil market. suggesting increasing crude supply from the saudis. seeing $68 for wti. spread is thes widest we have seen in some time, and the commodity index lower by .2 3 -- let's get you up with first word news. haslinda amin. haslinda: good morning. italy remains without a government after a would be prime minister failed with a choice.
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he withdrew, saying he has done his best to form at administration. rejected ant economist who has called for in -- italy to leave the e.u. and criticized germany's dominance. china's island province is taking steps to combat speculation in real estate, and the campaign may go nationwide. they want to see the ban of flipping proxy and have been mining down payments as much as 7%. restrictions were down in april to boost the island economy. international airlines have been given more time to adjust references to taiwan, which china insists is part of the mainland. two of the planes have made changes to their website, while those who have received an extension include netted, continental, and ana. china is asking all carriers to
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reference -- modify references to taiwan. qatar is banning products from the countries that impose a diplomatic blockade, days before the first [indiscernible] ministry is restricting the sale of goods from australia, the uae, bahrain and saudi arabia. qatar has managed to absorb the shock of the embargo and the economy grew faster than expected. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. ♪ story, back to our top the trump-kim summit might be back on. president trump appears to have confirmed it will happen, saying a u.s. advance team is in north korea to make those arrangements. let's get to our chief north asia correspondent. what does this all mean? will we see more clarity?
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people were expecting something to happen, but is it clarity or confusion? stephen: a little bit of both. confusion leads to clarity according to donald trump, the way he acts as president. let's look at his tweet, because we have to parse his words on what it means. is the summit back on, or is something else? he confirms a u.s. team is in north korea in the demilitarized zone, making arrangements for the summit. he adds, he believes north korea has brilliant potential and will be great as a financial and economic nation. is the happen, it operative word, does that mean economic boom, or does that mean the summit will happen? people reading that it is the summit will happen. on friday he did allude to the fact that perhaps it would continue to go on in singapore
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on june 12, but don't bank on that. this follows a two-hour meeting between moon and kim. only the fourth ever meeting by the two leaders since the korean war, which kim had requested following donald trump's cancellation of the summit. kim once again according to moon complacently will denuclearize -- pledged to completely denuclearize, but moon is concerned whether they can trust the united states and if they will end hostilities. another historic meeting between these two gentlemen. does that undermine donald trump's position, the growing friendship between moon and kim? interesting. haidi: a third wheel. the summit is back on, singapore is still thes back on, singapore is still top
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choice of venue? stephen: that would make sense, but the advance team's first stop, we did hear from the white house saturday that an advance team will also had to singapore just in case, whether june 12 -- donald trump did say friday night, we will likely remain in singapore on the same date and necessary, will be extended not that date. but hear what donald trump had to say. mr. trump: a lot of people are working on it. it is moving necessary, will be. we are working on june 12 in singapore. it isas not changed, and moving along pretty well. we will see what happens. stephen: but that was friday. today is monday, so don't bank on those words that he is saying it will be in the koran june 12. it could be or not. another interesting wrinkle because moon jae-in again reiterated his desire if that summit does go ahead and is successful, we might have another summit. we might be getting summit have a, but moon want to
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three-way summit, trilateral between himself, trump, and jim to end -- kim to end the korean war. haidi: thank you so much. the chief asian correspondent, riding this wild roller coaster of negotiations. president trump's compromise to inut china's zte to stay business might be under threat in congress. marco rubio has been critical of a bill to block zte and other chinese telcos from operating in the u.s. would have super majority support. : i believe it will have a super majority. most members of congress have come to understand the threat china poses, and there is a growing commitment to do something about what china is trying to do to the united states, and this is a good place to start. haidi: let's get more details. ros krasny is joining us. anything specific pending from
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congress, or is this mostly kind of rhetoric? ros: i think it really is mostly rhetoric at this point for marco rubio and other lawmakers. i think there definitely is a sense in congress they need to push back more as the trump administration -- on the trade deals and policy, but i don't know ultimately the math on this, as you know, congress was briefed late last week by stephen mnuchin, the treasury secretary, and wilbur ross, the commerce secretary. the message was, turn down the volume of criticism. we know what we are doing. whether that is true, we don't know. i think there is a sense really that is the u.s. -- if the u.s. lets zte fail, it could restart the trade war that seems to be tamped down just a week or two ago.
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so there is that going on and sort of and away chart between zte, trade and tariffs, and the north korean summit. so the administration will let congress know that they are keen to not have pushed back on the te, but you never know -- on zte , but you never know. you talk about bipartisan support for the anytime these days. haidi: what is the next step from the administration beyond a tweet from trump? ros: it is interesting. president trump said i close it down, then let it reopened. he may be in the process of letting it reopened, but it hasn't happened yet. zte has certain benchmarks it needs to achieve, and there is really no particular time frame for congress -- for the commerce department to act, so they need to see the security guarantees
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meant. zte has to make various management and board changes, then pay a huge fine, now the department of commerce has the option or obligation maybe more the option to let trade flow again to zte. no particular timeframe, but i sense that there will be urgency. wilbur ross is heading to beijing at the end of this week. haidi: i am sorry, we have developments coming through from the russia investigation. these critics are saying president trump is boiling the frog in their attacks on the doj. we have heard from rudy giuliani back on television again talking about this. yes, former mayor giuliani was back on tv. he is on almost every day. he is on very much as trump's
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kind of main mouthpiece on the robert mueller investigation. he talked about, you know, the sake investigation and the probe , so it does seem like week to week trump and giuliani are trying to soften up congress, trying to undermine the work the special counsel is doing, and opinion polls show they are having success of that. yvonne: going to leave it there, ros krasny, our news editor joining us with the latest out of this. we will have the president of the short group on the show to talk oil after crude prices had their biggest drop in almost a year. haidi: up next fed chair jerod powell is talking about independence and political leveling. we will talk to a manager about what this means. this is bloomberg. ♪ this is bloomberg. ♪
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>> in terms of monetary policies, it is better for political leaders to let the central bank governors do the job they have to do and preserved and secure the finance. i think some of the comments made a learned the international community particularly investors that suddenly the central bank of turkey could be under directions, instructions, influence area i think that has created the sense of uncertainty, lack of confidence, which have found its way in the markets. >> this is clearly a challenging market for central banking area opinion polls show trust in government and public institutions is at historic lows . in this environment, central banks cannot take our measure of independence. >> indeed i would say and i think everyone in this room would agree that the past
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president and future of central banking -- present and future of central banking comes down to confidence. haidi: news from global policymakers right there. said while rate hikes will move the u.s. 10-year yield, investors in asia will be paying attention to the five-year. let's get with our next guest, our funds manager here in sydney. good to have you. explain that. what would an asian investor be watching? >> there is a lot of talk at the moment. everyone is focusing on the 10 year i'm about the reality is corporate -- year, but the reality is corporate fund beyond that. what it means is a lot of countries have u.s. dollar debt raisings, so when they come back to the market from the five years, they will be looking at paying higher rates. haidi: that leads into discussion about what happened to emerging markets, which we will get to in a little bit, but
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what do you think i guess the threat of a policy missteps -- i think it all is data dependent, but what does it mean? trying to undermine -- unwind? chad: we have had raised rates before, and the overlay of quantitative easing or so the it, isas they call interesting. i personally have subscribed to the idea that unwinds will not have much an issue. i don't think quantitative easing added much going up, so now nothing on the way down. there is a group of people that -- i know some people who subscribe to the view that tightening at the same time as the balance sheet will lead to missteps. haidi: it is a late -- light data calendar. they got a major piece of information before the fed meeting in june. will that leave -- move the needle?
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how do we pick up the pace or fallback? chad: some of the data in the last month is on the softer side. they don't care. in june.going to go the most likely will go in september and december. at the very least another one of those. they have made it clear they want to get rates to a normal level which they define at 2.5%, and they want to get it done by next year. so you don't see much changing. to slow it down, you will need a very bad number on the pmi or employment data. haidi: or trade war? chad: no one really knows what trump is actually going to do anymore. he says one thing, he unwind it. he will have a conference, not have a conference. but out and out war on trade could be an issue for the fed, but that could be inflationary and not slowdown. yvonne: it seems like the narrative has changed after the
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fed minutes, and now we are seeing a rally when it comes to treasuries, essentially lit a fire under it. is this any kind of short covering in the near term, or now that we have 3% at the 10 year, is there undershooting in the oil pricing? chad: it is a very good question. i think the fed minutes was, we chatted about it the other day, i was trying to reiterate something the market had overlooked a couple weeks ago which was to present isn't a ceiling, it is a target. if you are underneath, you should be over to hit your target -- through the cycle. try to emphasize that, now the short covering, people made money with short rates in the last couple of months, so people said, i think i will take profit here. but overall, as i mentioned earlier, it will be on track. yvonne: what does this mean for the flow out of equities into
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bonds? more rebalancing, or is it still to the upside with equities? chad: it is really finally balanced at the moment. -- finely balanced at the moment. this takes into account bond yields and what they are doing, so one thing to initiate is with the tax cuts in the u.s. earnings number they have been revised up, but the 10 year rate has gone about the same speed, so equities are almost the same value as they were at fair value 45 months ago. i don't see that much more flow out of equities into bonds. then thato to 3.33, yields in the u.s. looks very, very attractive. at that point you would see more flows. haidi: i want to bring up this chart. this is a classic sort of weakness when we get into this environment.
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it is not that temper tantrum all over again. this chart, i found it interesting because over the last few years, we have had since mid-2016, 20 $5 billion pulled out in terms of foreign , everythingm e.m.'s from malaysia to south korea, taiwan. it is part of a long-term story. is this a fundamental shift from everything growth to more value? chad: it has been a thing everyone wants to work. yeah. it has a value, and value stocks have struggled in the last couple of years. the tencents of the world, a bit like netflix in the u.s., growth stocks have done well. traditionally as rates go up, value stocks do better. we have written papers that say this should be the year value works. we are not feeling it. it is still not there. i would love it to be there. but at the moment, and value
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tends to be cyclical. but we are not seeing it still. on top of that, the temper tantrum was a different affair. the market was unprepared for the fed rate hikes. if the market is unprepared, you are not doing your job. a temper tantrum starting out here. then you got this weird confluence of events at the moment. the fed is hiking for the u.s., and traditionally outside the u.s. growth quicker, then asia does really well, and e.m. and cyclicals, but it is not happening. growshe margin, asia slower, so there is a series of events here. haidi: some calls, given that hasn't materialized? chad: contrarian? we like to fan. it gives me cyclical value, and
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japan does do well on growth, and we think japan is [indiscernible] haidi: [indiscernible] chad: i think so. haidi: great to have you with us. the wall street fund manager here in sydney. you can interact with the charts shown on the gtv. you can browse recent charts featured on bloomberg tv, catch up on key analysis and save them for future reference. this is bloomberg. ♪ this is bloomberg. ♪
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i am haidi lun in sydney. yvonne: i am yvonne man, you are watching daybreak australia. quick check of the business flash headlines, qualcomm reporting a meeting of regulators this week in a bid to win clearance for a $44 billion pursuit of an xp. they will talk to authorities in beijing before wilbur ross arrives for trade negotiations
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next week. qualcomm is cautiously optimistic the merger will gain approval. haidi: some of china's biggest tech names are buying into what promises to be the mainland's biggest ipo this year. tencent is investing in the foxconn industrial internet. they are spending the equivalent 1.8 million shares ahead of that upcoming listing. yvonne: xiaomi said to want a june 7 approval to list in hong kong. they could raise $1 billion u.s., and the smartphone maker hopes to help next month if the application is given green light. but this could slip given the volume of information demanded by the hong kong exchange. the listing could value xiaomi at $70 billion. we will talk more about these next. we are live in beijing for in depth discussion whether more
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companies will follow suit. those lost evaluations as well when it comes to daybreak australia. this is bloomberg. ♪ this is bloomberg. ♪
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haidi: it is 8:30 a.m. in sydney where markets open for a brand-new trading week in 90 minutes time. showing negativity. it could be directionless even the u.s. markets traded very lightly on friday going into the long weekend for memorial day. u.k. markets also closed for bank holiday. not a great deal of direction as we have geopolitics and worries in the oil patch coming back through the headlines for investors. i am haidi lun in sydney. yvonne: i am yvonne man. you are watching daybreak australia. let's get the first word news now. trump seemsesident to have confirmed a historic
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summit is back on. the u.s. team is in north korea to make arrangements. his comments came after kim met south korean leader moon jae-in for the second time in a month. they held talks on the north korean side of the dmz and agreed to push ahead with commitments made at the first meeting. mr. trump: a lot of people are working on it. it is moving along very nicely, so we are looking at june 12 in singapore. it isasn't changed, and moving along pretty well. we will see what happens. france, china, and of course the united states are ok. people across the world, and we would like them to work together to push north korea to the right direction. in order for us to do that, we unity and tackle
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this problem north korea poses. one-time presidential candidate marco rubio said a potential bill to ban zte and other chinese telecoms from the u.s. would have widespread support in congress. he said most lawmakers understand the threat posed by china and a growing commitment to do something about it. rubio was responding to president trump's proposal to aftere remain in business paying a $1 billion fine. china's growth accelerated last month, snapping a slowing streak that went back to october. profits jumped 22% from a year earlier, following a 3% gain in march. the national bureau of statistics said total profit for thel talked -- topped equivalent of $90 billion. improvement came in steel and chemical sectors. president putin said japan must
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be patient of territorial disputes dating back to world war ii. speaking after a meeting with shinzo abe, the president said the islands are the northern territories -- or the northern territories as japan called them would go on. they have been in dispute and have kept russia and japan from signing a formal peace treaty. >> should be patient looking for a solution that would treat both russia and japan. it should be expected by the people of our countries. haslinda: global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. haidi: thanks. yvonne: china's largest initial public offering said 20 15 has got the backing of some of the top 50 companies. tom mackenzie joins us. this is in a star listing,
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talking about this foxconn shares sale. tom: absolutely, could be the biggest on the mainland since 2016, foxconn industrial internet is the name of the company that will be listed. what we are hearing that baidu, tencent and alibaba have snapped up stakes, about 22 million shares, 22.8 exactly, over 13 yuan apiece. tencent and alibaba are such big investors now, the main investors over the last 12 months in china startups. foxconn industrial internet is part of a unit of precision industries which is the main assembler for apple. when they list, they are hoping to raise $4.3 billion u.s., that they want them to turn into things like smart manufacturing and 5g wireless technology. a lot of interest obviously from
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the big tech companies but also some of the state players as well, the likes of china railway corporation. a unit has stepped up a stake, as well as china insurance. big players getting in ahead of this ipl. haidi: we are also getting closer to what could be the largest ipo since 2014. do we have more details about the listing? tom: yes, xiaomi very closely watched. we will see them seek approval from the hong kong authorities. the listing for june seven, that is the hope to get the approval. if they do, they hope to start pricing the share offering by the end of june. that is what we have been hearing. what they want to do, they are acting to raise about $10 billion u.s. from this listing. they are looking at a valuation of around $60 billion. their fortunes have
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gone up and down, so they are accompanied we will be watching ahead. they had a strong 2017, founded by a serial entrepreneur. they also make robotics and other smart devices. they started to open up stores beyond china as well, opening one up in paris. this is a company very closely watched, and they will be meeting millionaires from the employees and the company when they list. they are hoping to start pricing it the end of next month. a great deal of anticipation for that one. tom mackenzie in beijing. let's get you a quick update on the markets as we get underway this monday morning. new zealand, trading underway. pretty mixed picture going into the asian open with that light finish in the u.s. overnight, a little bit of downside for kiwi stocks. kiwi dollars 69.26, treading water.
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one thing to look out for is the financial stability report. sydney futures pretty negative, the aussie dollar trading at 79 55 -- 75.59. we aussie kiwi pair, how trading there. the dollar yen, 109.68, sterling 133.07. we have the euro seeing steep declines. the u.s. 10-year yield moved five basis points. you see this rally returning to the treasurer's market, and a reminder, this is how we had u.s. stocks closing, the s&p and .25% on friday. energy stocks with a decline in crude prices. looking at the trading here in asia. our live strategist is here in sydney. what do we need to worry about with italy's populist government?
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now it seems like we are in a political state of [indiscernible] reporter: if you look at the s&p,this morning and the the market seems to like the idea italy will have a government again. there was a lot of concern about what the populist government would do, and now the president has sided with 9/11 the government to go forward because of the finance minister. he is looking at setting up a technocratic government, so that would be welcome by the markets. even if in the longer term there might be some downside as to what is going on short-term, it is definitely being seen as a plus. , it seemsd garfield like we see a lot of pluses this morning with the trump-jim summit that could be a done deal. -- kim summit that could be a dumb deal -- done deal.
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garfield: it is looking kind of positive, but i would hesitate to call anything involving mr. trump and mr. kim a done deal until it is done. yvonne: that is true. garfield: i was coming in thinking it would be a quiet day, this will be all of these worries about italy, what are they going to do, and the summit . but instead, the italy situation is looking perhaps brighter, the korean situation definitely looking brighter, and china profits rebounding, which all of that is going to create the potential for a bit of a rally. a liquidity problem might put a cap on that, but we are getting close to the end of the month, and it has been a bad month for risk assets. you often get a turnaround in that situation. you will get that here. if you look at the china profits, we have a chart on the screen for you, which you can find on the gtv library, looking
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at the way the aussie dollar tends to move more or less in line with china profits. they disconnected earlier this year when the aussie got ahead of itself, but now the china profits are bouncing back up. that could help to build stronger foundations for the aussie to regain the ground it lost so strongly in recent weeks. right, i spoke too soon saying it is a done deal area anything could change. garfield reynolds, our strategists joining us. or months as well. got to take that into vector. don't forget to check our library for the charts we's showed. -- we showed. still ahead, oil prices see their biggest plunge in almost a year after saudi arabia is preparing to open the taps, but -- this is bloomberg. ♪ ♪
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yvonne: i am yvonne man in hong kong. haidi: i am haidi lun, you are watching daybreak australia. a trade mission from alaska has been in beijing checking on deals structuring president trump's visit last year. one of those is a lng project analysts inpec and the corporation. speaking to tom mackenzie about the progress made so far. >> i call this year a year of paperwork.
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we are doing the commercial agreements, looking at banking agreement, construction project, that type of thing. a lot of paperwork this year. it comes together at the front part of 2019. we are in the midst of the regulatory process as well. so we pull it all together for a final investment decision, either late in 2019 or probably for the construction and service in 2024. tom: are you in the process of signing other large agreements? >> asia is the growth engine for the lng industry, but we are working within the region for capacity.25% of so we are in active discussions. tom: where are you in terms of financing for the project? bank of china, are they on track to finance 75%? keith: financing, we have engaged bank of china to be a
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team, working on the financing for the project. in terms of equity invest orders, we are starting to pack -- we are going to pakistan. then we will really go out later this year to start to talk to potential equity investors. tom: what is the sense you get in terms of the impact of these trade tensions between the u.s. and china are having on the border trade relationship, what it may mean for lng from alaska? keith: i think the trade issues are at issue. it is not that we don't heal them. it ripples occasionally, but the underlying demand is there for lng. i think both sides, the u.s. and china have sort of recognize lng is one of the things that the u.s. can sell and china needs. agricultural products are another. the message from china is, we want to buy more stuff, but we
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have got to buy the stuff we need over here. from a trade standpoint, allergy is well-positioned to be one of those foundational holding blocks within trade relationships. tom: you are not overly concerned that the alaskan lng project could become a victim of this trade dispute? keith: quite the contrary. i think this project can be one of those, maybe not easy but relatively easy foundational blocks that can be put in place. there is a lot of confidence and belief that yes, lng will be a great trade tool that will help balance the trade. tom: are you hearing anything, getting a sense at all that china is ratcheting up its purchases of oil and gas as a result of these trade negotiations and investing in energy assets in the u.s.? keith: i see the demand in china, part of that demand being
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shifted to the united states and satisfied with lng from the united states, lng and oil as well. also a part of the trade talks have mentioned bilateral investment, so i would expect to see some of that being encouraged to have the chinese companies invest upstream, u.s. invest downstream, so i see that . i see that growing relationship and that, let's call it a trade bond, growing trade bond between the countries. gasolinehat was alaska corporation president keith myers speaking to our correspondent tom mackenzie in beijing. let's talk about the commodity markets, oil plunging almost the most in a year after president trump took aim at opec, saying prices were artificially high. saudi arabia appeared to agree, nothing a shift in policy that gave the green light for the selloff.
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russia said producers don't want an overheated market. isi believe that nobody interested in seeing an overheated market. there are many factors now, and pushing oil prices up, including the unexpected production declines or geopolitical factors. haidi: big into all of this with the short group president, joining us from pennsylvania. us in ther joining program. you look at what russia and the saudi's said, announcing possibly this revival in production. how do you expect it to play out with producers in opec as they meet the next couple weeks or so? >> certainly what we are looking at is the haggling between the unni side -- the sunni side of opec and the shia side. they are signaling to the market they are willing to put or increase marchant -- market
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production. iran is on the other side, but that said the oil market to the prior interview was well overheated. that would suggest there is another force, not five dollars of geopolitical risk, priced into this market. $65 range,l in the much more powerful for the consumer and producer. that is to say the producer is able to make money or return on capital, so forth and invest on future output whereas the consumer is at a level that they can consume and continue to grow without having much of an impact on future growth. so i think we are in that sweet spot where actually we are trying to pull back into that sweet spot because [indiscernible] the past three to four weeks. yvonne: so what if alexander novak and the others get their way?
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what would a return to compliance look like? the return to 100%? what does the group gain? aephen: i think it will be compliance issue where will be the haves and the have nots. saudi arabia is in a position to pull back. it would continue to produce as much as possible in light of the new sanctions, by the united states. but we have to keep in mind venezuela, which is now in such a decrepit state, that production is at a 30 year low. venezuela is doing a lot of the cartel's heavy lifting on compliance, so that does free up barrels for other nations to jump in and fill the void created by venezuela. wti,: when it comes to what are we expecting with shale companies coming back in? that has been expensive when
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prices get to this point, you see recounts coming in again. stephen: absolutely. the growth has been off the charts. what we know here, the high degree of correlation, 95% relation, -- correlation, only look at wti prices and the rise of the past nine months, there is a tremendous correlation between those prices and the four-month lag in oil rig counts. row, oileeks in a production, where the prices are, we will continue to the, because we've been have seeing recounts increase, so a lot will come to the fore. we know with a great deal of india because with hedging, the amount of futures and options moving forward by producers in this market at record levels, and a producer will sell contract meant to bring a physical to offset that sell.
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with the data alone, we know the competition is high and will continue to climb. is liquidation the dynamic we are looking at for the near term, and does that mean the solution for opec with lower-cost producers? stephen: that is the very first sign. it is excellent to bring up with the terms of structure. we are in a back we dated market meeting prices are higher. that is the clear signal at a market that is out of bounds. demand is suddenly strong, prices so high you are actually urging people to bring their barrel out of storage and sell into the stock market. we know this is a number of factors, not just creation but crude oil demand is strong. a lot of people in the united states are complaining about gasoline prices at a four-year high, but adjusted for
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inflation, not a big deal because gasoline demand in the united states is at a record high for this time of year. we have a strong demand right now. we have supply, the venezuela and so forth, that is on the sheet, it has that backwardation . this is a bullish stock. haidi: loss to look out for going into the june 22 opec meeting. appreciate you joining us. the president talking about this move downwards we have seen in oil prices which we will continue to watch throughout the asian trading day. you can catch us on our past interviews, using the tv function. you can dive into any of the securities we talk about. you can check that out at tv . this is bloomberg. ♪ this is bloomberg. ♪
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haidi: a check of the business flash headlines, they will
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ensure no customers financial losses after saturday's nationwide system outage. leftlinch -- the glitch services out for six hours. now it is a rare event, and no personal data was compromised. yvonne: bombard year is -- bombardier is planning to get more airplane models for airplane luxury business jets. they will have optimize wings and engines. they will have a range of 6600 nautical miles, enough to fly from hong kong to london nonstop. haidi: the box office was fraught with disney's latest opening. , 188 milliono dollars in total, but its taken a more america was short of forecasts and the worst opening of the four rebooted star wars films released so far.
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that is almost it for daybreak australia, but yvonne and david have more coming up on daybreak asia, looking at the next few hours. what are you watching? david: the dollar is going for a seventh straight week, 14 in the last 17 weeks that we are actually getting the dollar bid. so we are talking about -- you have the data out, gdp, jobs data as well. coming out of europe, inflation numbers, so we will see if the stock falls and if that is more of a focus. yvonne: and the likes of the turkish lira. a lot going on there, but we will have a big guest at 8:00. luke ellis joining us as a guest host, talking about volatility. there is a lot of inflows in the hedge fund industry. big changes in china, the first to start foreign investment
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onshore, is a big companies and changes coming in the next couple of years. haidi: all right, looking forward to it. daybreak asia is next. that is it for daybreak australia. this is bloomberg. ♪ this is bloomberg. ♪
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yvonne: 7:00 a.m. here in hong kong, live from bloomberg's asian headquarters. i'm yvonne man. david: our top stories, off-again, on-again. president trump says the kim summit should go ahead next month. yvonne: his comments following a second meeting between kim and president moon jae-in. all sides say they are preparing for singapore. david: the white house plans for a dte. facebook pushback from congress. marco rubio says there is widespread opposition. yvonne: jay powell make the declaration of central bank independence. he says policymakers are under growing government pressure.


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