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tv   Bloomberg Daybreak Australia  Bloomberg  July 15, 2018 6:00pm-7:00pm EDT

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>> president trump goes to helsinki having bashed his allies again and says the european union is a photo. -- is a foe. . ramy: he will meet president putin. critics wonder who is next in the firing line. paul: china again warns about a trade war saying it is a lose-lose situation. beijing says it is not scared of a fight. ramy: jay powell prepares to deliver yearly testimony to
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congress. he will reiterate his faith in the u.s. economy. hello from sydney, where it is past 8:00 a.m. this is daybreak australia. we are two hours from the open of the first major market. ramy: it is past 6:00 in new york. over this next hour we will be looking at how the action last week will play into the asia-pacific trading day. as well as eco-data and looking at what will be a busy week, not just economically but geopolitically. we are looking at donald trump and vladimir putin meeting. we are looking ahead to the china-e.u. summit in beijing and of course eco-data later in the next few hours. we will get the latest read on china's gdp. this is how u.s. markets closed friday for a quick reminder. .he dow up .4%
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that is the highest in a month. looking at a weekly basis, the biggest weekly rise. the s&p pushing past the 2800 mark, the first time since march. nasdaq is% up -- the .3% up -- .03% up. seeing some negativity here, the british pound slightly higher. the biggest fall in a month. pound traders waiting for reaction out of theresa may's white paper and the latest read on inflation, whether or not we get the august rate hike and looking at gold futures. pretty flat. u.s. 10 year now down 2.83%. paul: concerns over trade not in thebeing reflected markets. they will dig into that later with the first guest, but first
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of all we have a market open. new zealand just getting underway. .25%.dex was off the kiwi dollar showing strength. aussie futures looking weaker. that is a good lead for the u.s. close friday, not filtering from the markets. the aussie dollar hanging on above $.54 u.s. the picture is brightening for non-commodities. attention to oil. we did see some gains. it always takes us back above $70. crude showing improvement. wheat one of the stronger performers, but the commodity index having its worst week since february. we have soybeans, platinum and nickel weighing on the index. while president trump is heading to a big summit today, he is meeting president putin mundane
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having the end of his second week. branding the e.u. a photo of the united states. now in helsinki having berated a string of longtime allies. mr. trump: i think the european union is a foe. you would not think of them, but they are. russia is a photo in certain respects -- is a foe in certain respects. china certainly, but that doesn't mean anything. it means they are competitors. paul: ok. let's cross to washington and get more on that from bloomberg editor ros krasny. what do those comments tell us about the president's view of the world? ros: it is consistent with what we have seen from trump really the past few months, when it comes to talking about europe. ever since he was elected he had a tendency as part of his
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doctrine or the trump part of the deal to really twin things like trade and national security. trade and nato. ,se of the european union members of nato are not paying enough for their own security and ripping off the u.s. on trade. we had an interesting interview a couple of weeks ago with germany's defense minister who said that was immature, but regardless, it really seems that is the way president trump operates. of watching inot upsetting theut international order, applecart. there is no end to it insight. president trump has the capacity to shock. when he was asked about foes, listed the european union at the top of the list, surprised a lot of people. paul: he has shared his thoughts
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with us about the in you -- the e.u. has there been any response? ros: we did hear from donald tusk, the council president. this cry of fake news -- anyone who says [indiscernible] peddling in fake news. we might hear later tonight from jean-claude juncker, he is in china later for the summit you mentioned. he may have something to say about this. definitely i think as more people hear about this comment will they will push back because i don't think for the most part that lawmakers in the u.s. and certainly business leaders really see europe as a foe. they see them as the strongest
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ally. ramy: a lot of people have their eyebrows rise when they heard that comment. , this couldsuccess be very subjective depending on if you are mr. trump or mr. putin, but what would be deemed a success after they meet? ros: the goal post is shifting. it is interesting comments from president trump today on twitter, he basically said, if i got the moon, you would ask her the stars. he said if i got russia to give us moscow, you ask for st. petersburg. he said nothing will keep the media happy. we did hear from john bolton, .he national security adviser he downplayed the expectations for anything really specific to come out of this meeting which he said is unstructured. another interesting comment from
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jon huntsman, the ambassador to russia who said, i have heard of the talk but it is just a meeting. then president trump called it a summit. we do know, and this has been confirmed in the last hour president trump and president putin will have 90 minutes of one on one time together with only their translators present. it is something democratic lawmakers and others in the united states are fearful of their what could happen in the meeting, without that aids and national security types. and we have the expanded meeting with aids. we will hear more when president trump and president putin give a press conference. i think it will be a very interesting day. ramy: we are looking forward to see what happens with that. ros krasny, thank you.
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meantime tried tensions -- trade tensions for the wto are likely to top the agenda at the summit between european and chinese leaders. tom mackenzie is watching this. are we expecting any significant movement on any of these issues? tom: this year we could actually get some traction in these talks. notlast two years have been stellar. because of the trade war and the actions of the trump administration they have proved to be a catalyst to move china and europe closer. the europeans would be clear to say on all issues. is -- not onearing all issues. we will probably get a joint statement. we will see jean-claude juncker, donald tusk meeting with the premier chained, then later --
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premier chained, then president xi very we will get something out of the wto. something the europeans are keen to push ahead with. groupave set up a working looking at how the chinese can reform the wto because the europeans say they are opposed to the trump administration around tariffs, but they share concerns around subsidies for industrial policy, tech transfer, on -- the unfair regulatory environment in china. they want to see reform on the wto to address that and get china on board. there has been a number of years a discussion between europeans and chinese over a bilateral trade agreement. we may get more traction on that, but it is unlikely to see that in the short-term. we could get some advances. likely to get some market access and later at the end of this summit, tomorrow morning,
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europeans heading to japan to find that agreement. -- to sign that agreement. it is importantly for them to position themselves and communicate to the world a sense of stability as this trade war continues to go through the markets and the global economy. in terms of the markets we have potential market moving data coming out soon. what are we expecting from gdp in a few hours? tom: we have a slew of data from china around 10:00 a.m. hong kong time. expected to ease off for the first quarter. looking at a number of 6.7%. is to what extent these trade tensions have started to impact the economy and to what extent policymakers here may now be feeling
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compelled to take the foot off the pedal in terms of deleveraging and whether or not they are now dealing force to pump more credit into the system . we will also get industrial production numbers, retail and fixed asset around 10:00 a.m. hong kong time. china correspondent tom mackenzie in beijing, thank you for joining us. you can also turn to your bloomberg for more. go to tliv , get commentary and analysis from our expert editors. let's take a look at other stories making headlines in the first world -- first word news. theresa may is calling on voters and politicians to rally behind or face no brexit at all. she will not compromise the national interest in negotiations. or is johnson and brexit chief david davis resigned over may's plan to keeping close ties to the e.u. post-brexit.
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president trump is being advised not to use america's strategic reserves in his war of words with iran. iranian crude exports will curtail. they say it would be a mistake and would push oil prices higher. chinese investors will be barred from trading in dozens of foreign companies including those with weight and voting rights like xiaomi as regulators seek to strengthen the texans on the shanghai hong kong connect. -- protections on the shanghai hong kong connect. they had postponed because of sluggish market conditions. triumph gives the country a much-needed lift after years of introspection brought on by the terrorist attack's and lackluster economy. the team beat croatia, giving them a second world cup success. the bank of france is not expecting much of an economic
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liftedince the victory consumer confidence but barely affected gdp 20 years ago. 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. this is bloomberg. ramy: thank you. 2025, our weeklong series looks at beijing's priorities for the next seven years. we look ahead to the start of a new trading week. this is bloomberg. ♪ ♪
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inocencio in new york. paul: i am paul allen, you are watching daybreak australia. banks in the spotlight as goldman sachs and morgan stanley
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prepare the report. citigroup and j.p. morgan chase have announced surprisingly strong revenue, raising the bar for companies to follow. let's get details from su keenan. su: strong revenues indeed. you will see a lot of red on the screen because citigroup did come in with trading revenues that trailed their big rival j.p. morgan. there were other issues, but let's get to the headlines. jpmorgan got a big bump on large deals that close. aree dimon warned clients worried about global trade wars, even disputes in china creating uncertainty. citigroup ceo echo the concern but said it has not impacted the transactions at this point. let's get to the charts and go through the headlines. j.p. morgan chase did have the strongest results. it is the biggest bank by assets. strong trading revenue and long growth. core loans expected 7%, adding
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$200 billion in three years. citigroup, the treasury business record -- generate record revenue. they have worried investors in recent months. the firm started a challenging market environment in the second quarter as fixed income revenue fell 6%. it reported 19% increase in stock trading. let's get to wells fargo. the big focus here was on the net interest margin for the second quarter. it did beat average estimates but it was another tough quarter for wells fargo. the mortgage fees were lower. let's get quickly to the bloomberg. i will clean it up. what we have is a picture of the big bank profits. see yellow is citigroup.
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they are all coming up. analysts were concerned about performance but so far they have come in stronger than expected. and many more to go. goldman sachs, morgan stanley, looking at more. su: goldman and morgan stanley are considered the top advisers in m&a. this have been impacted by the uncertainty over the deals, but again it is expected they will report strong results. bank of america reporting on monday. this is a big focus. rank sixconcern, the in advising. we will look ahead to that . thank you very much. let's bring in region atlantic partner and director of research andy to talk about what we could expect in this new trading week as asia kicks off and looking ahead to the u.s.
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i smiled when i read this, sloppy and complicated is where the world is starting to be right now. andy: it is indeed where the world is starting to be. that is why we are seeing so much volatility. pretty substantial earnings growth around the world, not just the u.s. with the tax cuts, but everywhere, double-digit growth. emerging markets 25%, so why aren't stocks doing better? it is sloppiness. it has to do with trade wars. what is going on with tariffs and trade and who will sort of speak, eat dust as opposed to benefit. brexit, we are talking about it again it has been two years since the vote. it is indeed a sloppy year. ramy: i want to show you and our viewers this terminal chart looking at the s&p 500.
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it was hitting through the 2800 mark. looking at the purple, blue and yellow. theo the highest ever since month. where do you think this is going ahead? this is pretty bullish. i will take it, it is a record. andy: we are happy in the earning -- early in the earnings season. u.s..onfident in the it is easy to clear because are-over-year the comps pretax reform versus post-tax, going from 35% to 21% statutory rate, moving the needle on earnings per share for a lot of companies. those that do business in the u.s. i am confident earnings growth will perform well. i am less confident how the market will receive it. not so much earnings growth is
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always good news. in the u.s. there is many things going on that make for a sloppy year. ramy: also with inflation, the fed, three or four, maybe this year, we are expecting a semiannual report from jay powell very what are we expecting -- jay powell. what are we expecting? andy: it will not be as strong a watchdog as it has been historically. it has worked to ignore inflation long. they help -- they had been ingressive -- aggressive but did not because the economy was week. they are slow at hiking interest rates. we are looking at a real rate of 2%, below the trailing inflation rate. core is running 2.3%. i think investors ought to consider how inflation can improve their portfolio.
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one of the things i am looking ifwas treasury in tech -- you look at the breakeven rate between nominal bonds and around 2.1%it is but we are running ahead of that. as i look at the sum total of the economy i see more risks to the right side, meaning the more than 2.1% side. unemployment is very low. we see discouraged workers coming back. there is only so far it will take them. other things happening, commodity prices are coming back. we are seeing a strong consumer base, seeing people bidding for homes. all of these things are inflationary. i am much more willing to make the bet it is ahead of 2.5% instead of below it. paul: your optimism extends beyond the shores of the u.s..
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do you see buying opportunities? andy: the emerging markets are a tough market to call because there is so much outside of their control. the biggest thing outside of them is the trade war. most of them proceed just perceive any tit-for-tat tariff battle will come out against the emerging markets and in favor of the net importers. i believe it is true in the short-term, but what i am seeing is emerging markets of decoupled from the rest of the world. you look at the top four today, you see china, south korea, taiwan, most of these markets are dominated by consumer and technology. the focus was in that country. so you have to disentangle the macroeconomics from the underlying microeconomics. what are you buying, how are you performing, and in case of china and india, you are defining a strong line of businesses out of
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good discount despite having [indiscernible] in, we arecap are thank you for joining us from region atlantic. bloomberg users can interact with the charts shown using gtv . you can catch up on key analysis and save charts for future reference. this is bloomberg. ♪ this is bloomberg. ♪
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quick check of the business flash headlines, air asia near a deal to buy $23 billion worth of planes from airbus. they are already the second-biggest customer. that would bring 100 of the new a 321 jets. airbus is close to clinching a deal to sell the wide-body a350 to a taiwanese start up. ramy: bowling is rewriting rules
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as it finalizes a new mid range airliner. they want lanes to fly further. it could have 200 new nonstop routes but beijing is designing new routes.
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paul: it ispaul: 8:30 in sydney, the markets opening and 90 minutes time. -- in 90 minutes time. i am paul allen. ramy: i am ramy inocencio where it is 6:30 in new york. let's take a look at stories making headlines in first word news. president trump rounded off a second leg of his european tour by naming the european union a of thef the -- a foe united states. he considered them a potential enemy. trump has lectured germany about buying gas from moscow and chastised the u.k. over its
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brexit strategy. mr. trump: i think the european toon is a foe, what they do us in trade. you would not think, but they are. russia is a foe in certain respects. china is a foe certainly. that does not mean they are bad. it means they are competitors. ramy: china has reiterated his opposition to a trade war saying there can be no winners in a fight between the world's top two economies. state councilor said china does not want to fight but will not be pushed around. sign -- president trump plans to additionalffs on an $200 billion of chinese goods and beijing will respond. >> there will be no winner from winner from a trade war, only a lose-lose outcome. china doesn't want a trade war, but china is not afraid of it.
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legitimate rights and interests are treated unfairly, china has every reason to take necessary countermeasures. ramy: the billionaires index says asia has a new number one. he tops the original list overtaking the alibaba founder. he has been estimated at $44.3 billion, topping his rival by $300 million. he made 4 million this year while the other has lost. novak djokovic and did his grand slam drought beating kevin his fourth lift wimbledon trophy. he took an immediate lead and withstood the challenge. it is his 13th major trophy, the fourth highest total in mens tennis. how final -- this is also his first since he
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won the 2016 french open. a lot of smiles. 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. this is bloomberg. paul: thank you. let's get an update on the markets. we got trading in new zealand getting underway, going for 30 minutes. .2%.ndex up seeing modest gains for the kiwi dollar. sydney futures pointing down by .1% and the aussie dollar u.s. g on $.74 looking at other currencies, we have got the u.s. dollar continuing to strengthen against the japanese yen, not much change for the british pound. the ten-year holding on at 1083. the s&p 500 as we mentioned, it continues to soar to greater heights. let's get more on what we should
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be watching as trading gets underway. our fx rates reporter joins us here. australian money manager is buying 30-year treasury bonds as a way of navigating the u.s.-china trade war. what else are they doing? ruth: that is right. they are buying really long 30 year treasury's as a hedge against the trade war escalating and a hedge against slowing synchronized global growth. let's look at the chart showing how amd is positioning its portfolio currently. there fund is going long the u.s. dollar against a market of emerging-market currencies which have been particularly hard hit this year by rising treasury yields. amd is turning more cautious. golden asset management either
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turning more cautious are turning into u.s. treasuries. ramy: they are increasingly bearish on the new zealand dollar. what is turning their sentiment? ruth: people are increasingly bearish on the g10 currency. a lot of it has to do with consumer prices rising at the slowest annual pace since 2016 we have a chart you can take a look at that shows how the kiwi entered a death cross, showing how bearish investors are. they increase short positions on the kiwi for three straight weeks, and it has weakened 4.5%. it is hovering your the lowest level since may 2016. time will tell as to how numbers will pan out. ramy: similar to the yuan last week. rates reporter ruth carson in sydney.
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don't forget to check our gtv library for some of the charts you saw. that is gtv on the bloomberg terminal. central banks, and the fed chair jay powell is preparing his half yearly report to congress. this will underpin the view more rate hikes are needed in the face of strengthening growth as well as inflation. the fed has released testimony. kathleen hays is here with the key points. it echoes what he has already said, that the economy is in a good place. kathleen: it is no surprise. everything he said, more rate hikes are coming, gradual albeit. let's look at one of the key points in the whole report released friday ahead of the testimony. the gradual approach increasing the target range will be consistent with sustained expansion of economic activity, strong labor market conditions
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and the 2% objective over the medium term. why is he so upbeat? he sees stronger consumer spending, business investment, strong labor market, tax cuts an important part of this. he touches on trade risk but doesn't dwell on them. in spite of what we have seen in europe and questions about growth, he had a pretty positive view of global growth against aiding the u.s. economy. i want to look at important -- an important terminal. we go over here, 2018. here is the consensus view of four rate hikes, one in september, december, and a key part of the questions he gets asked in congress. tuesday is the senate banking committee, then wednesday the house financial services committee. that is how it is done. plenty of time for this to be covered with all kinds of questions. paul: some of those questions
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might for most certainly revolve around risks to the upbeat. what will be asked? kathleen: let's look at rising oil prices. that could hit consumers, make it is this expensive -- make it expensive for businesses. while place -- oil prices are boosting, which he wants to see. does the u.s. is reducing -- producing more oil, creating jobs, that will shield the u.s. economy from slowdowns because of higher oil prices. when it comes to the trade war, he sees risk to the economy. intensifying, that could be a question. the chinese are ready to take it on, so the words have gotten harsher. inflation, he has noted, the 2% target. let's take a look at this. it is something he will be asked about.
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the core is that 2% but after being below 2% so long, other officials are willing to see a rise above. matt harker from the philly fed said, i bet jay powell will be asked about that. and the yield curve, this is important. the yield curve is flattening at the fastest pace since 2017. here is the trouble with that and why it is blasting past jay powell's concern. so many times an inverted yield curve has led to recession. the red line, down to recession, you get the recession bar here, inverted yield curve there. 25 basis points on the twos and tends. that is why some people are saying it may invert this year. i think those are some of the questions and topics he will be asked about. it could be publicized. he could be asked about tax cuts, trade and the u.s.
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relations with other leaders. that has been in the news. even as the fed chair you have to be ready for anything when he goes to congress. paul: absolutely. kathleen hays, thank you for joining us. china 2025, how beijing plans to be a world leader in tech. this is bloomberg. ♪
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welcome back. i am ramy inocencio in new york. paul: i am paul allen in sydney. you are watching daybreak australia. china is scheduled to release data later on. front and center is going to be industrial modernization program that sparked criticism abroad. we have a weeklong series in china 2025, and we will be looking at their priorities the next seven years. reporter: the phrase made in china has changed meaning over
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the years. it was historically synonymous with fast and cheap, but beijing wants to raise the bar with an ambitious strategy to dominate the shift from west to east. the focus is on new and high-tech industries, robotics, aerospace, artificial intelligence and cars. there are sectors in which they want a leading as globally by 2025 which has provoked alarm in developing economies and is caused for complaints about trade. president trump has threatened -- says it threatens u.s. growth and courts unfair practices like false technology transfer and subsidies. chinese state media has grown significantly, but the question is whether beijing will listen to its critics and agree to pull back. made in china 2025. inside china's largest electric
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vehicle maker, they are one company at the heart of that strategy. the group chairman told us how he plans to work with the program and what we could expect in the spinoff of their ev unit. >> the listing of our ev unit is around the corner. we have got permission from the government, so it will happen pretty soon. beijing automotive group will give full support to the development of the company and is dedicated to the well-being of the stock of the first public ev manufacturer. tom: what do you see as your company's role in the made in china 2025 strategy? beijing will play a very important role in the country's new energy sector as well as a special vehicle
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manufacturing industry. we are the absolute industrial leader in cross-country vehicles no one can exceed us or compete with us. tom: there is a view being expressed in washington that this industrial policy is a threat to western firms. is there anything in that argument? to what extent will it be a challenge to the dominant western companies, in the fields of technology and the ability? mobility? anthe u.s. is making unnecessary fuss about the 2025 strategy by claiming a threatens america's interests. it is nothing but absurd. where did the u.s. come up with such logic? i want to make points about this . i think it is people with ulterior motives already using this 2025 project to create
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trouble and trade tension between china and the u.s. the average american probably has no clue what made in china 2025 is really about. tom: to what extent are the trade tensions that are emanating out of washington changing the way that you look at your business? we don't do a lot of business with the american company. our largest dealings involved purchasing auto parts. we don't sell or export anything in the u.s. market. war really happens, we might suffer from rising costs, but that is all. i think it is shortsighted for trump to pay attention to jobs and employment numbers or reduce corporate tax or improve current fiscal situations of the u.s. government. his policies might have some positive impact in the short run
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but in the long run trump's policies are no good for u.s. economic development because they will force investors to move their capital into other countries or quit the u.s. market. groupthat was the auto chairman speaking to tom mackenzie. let's get a quick check of the latest business flash headlines. air asia is near a deal to buy $23 billion worth of deals -- from planes of airbus. they already have one from the a320 and could order to hundred of the new neo-jets. airbus is close to selling the widebodied a350 to a taiwanese start up. ramy: rolls-royce may offer maintenance credit for planes grounded by faulty engines. carriers will be given reduced turbine overhaul fees and credits for future orders as well as problems with the 1000
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engine that has affected several planes like the dreamliner. by0 million cash flow target pushing up to later years. chiefshe u.k. defense will use the air show to reveal plans for a new fighter to compete with a plane being developed by france and germany post-brexit. the details would and decades of cross channel military cooperation. the u.k. could team up with aerospace companies in china. ramy: you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb . this is also available on marble -- on mobile in the anywhere app. you can customize to get industries and assets you care about. this is bloomberg. ♪ s is bloomberg. ♪
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inocencio in new
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york. paul: i am paul allen in sydney. you are watching daybreak australia. banks that finance commerce in asia are facing tough times in the traits that. revenue from trade finance already at their lowest in eight years, so let's take a closer look with our asia financial reporter. what is the situation? emily: it is that trade finance is already under pressure. march it was very low. and volume has grown in recent years. the actual value hasn't grown at the same time. we are talking about credit, importing, exporting. so this escalation of trade tensions could not, they were's time since the banks are under pressure. paul: if things get worse, how should banks prepare? there is enough awful lot
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of conversations with customers first. if you are a manufacturer, do you need a new factory, do you need to maybe not move a -- do you need to have this financing for that, or is your financial good going to drop? all of those questions as they try to work out on an individual basis and throughout the supply chain what implications are likely to be. ramy: is there any silver lining in this pessimism? emily: bankers always have optimism. there is a couple of things that you cannot be optimistic about. one is what happens in terms of realignment of world trade. there is a chance for example trade tensions might facilitate more within asia. winners and losers out of that. if we don't know how white this trade war is going to get, if it stays worse, it is manageable.
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that is the bright spot from people. in terms of other challenges, and we are talking about what happens in the u.s. in terms of the fed and rate hikes, impacting financials, is that a risk folks are looking at besides other things? anly: definitely because increase in interest rates globally will increase the cost of capital. that applies to every bit of banking. that is obviously in the back of everybody's mind as we look to see how things escalate, whether we get more tariffs on intermediate goods or just the ones already announced and if money becomes more expensive. that will hurt everyone and the businesses that rely on it. ramy: emily cadman in sydney, thank you. let's do a quick check of the business flash headlines. the 5g race in south korea is heating up with huawei locked in
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a battle with samsung to supply the technology for the country's mobile carriers. the contracts could be worth as much as $9 billion. samsung winning the race but seeing turnaround because of the lyrical controversies and huawei is in the -- the political controversies and huawei is in. paul: the commerce department zteally lifted the ban on purchases. they deposited $400 million in escrow. the final part of an overall fine of $1.4 billion. they have also replaced their senior management and allows u.s. inspectors to work inside its operations as part of the agreement. ramy: we are watching the credits roll at the end of an era. there is one blockbuster story and all of america. the company has closed the two remaining alaska stores. that leaves one independent one
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in bend, oregon. there were more than 9000 blockbuster branches worldwide good most of the corporate owned stores closed in late 2013 as blockbuster struggled with the rise of netflix. you can watch us live and see past interviews on the interactive tv function. you can also dive into any of the securities or bloomberg functions we talk about and become part of the conversation by sending us messages during shows. this is for subscribers only. check it out at bloomberg tv . that is all most it for daybreak australia, but yvonne man is coming up and ramy inocencio is sticking around. let's look at what is coming up. we have been counting down to the gdp report coming out from china, going to be important this week. rally ins relief
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markets, and we saw structural slowdown in the chinese economy. will that be short-lived? we are talking to a man from barclays, the chief china economist and director. she says this 6.5% growth target could be at risk given trade tensions. it could be interesting to see her take on what scenarios barclays is pricing in. seems like economist are all over the map whether we will see tariffs on the current $34 billion or could lead up to $500 billion of chinese goods that could be taxed. and what cost will come from china, especially when they are continuing on this deleveraging effort, will that slow given this structural slowdown in the next couple of months? ramy: before that in 45 minutes, we will also the talking about what is happening between china
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as well as the european union because this week they have their next summit coming up. then we will speak with a bloomberg opinion columnist and a peking university business school associate professor. the premier will be meeting with president donald tusk and jean-claude juncker. one interesting thing is he says china is much more worried than thinkutsiders actually they are. it will be interesting to see his thoughts. when one door closes, the united states, will another be open between china and the e.u.? paul: it is a big week for earnings in the united states. we will have goldman sachs out on tuesday and netflix due out this week. we will be digging into u.s. earnings more. a new guest is coming along and 15 minutes. the deputy cio.
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that is it for daybreak australia. all of the action next in daybreak asia. this is bloomberg. ♪ bloomberg. ♪ phones have made our lives effortless.
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yvonne: here in hong kong, we are live from the asian headquarters. welcome to "daybreak: asia." president trump heads for helsinki as he bashes allies again. he will be meeting president clinton after also attacking the u.k..any and observers ramy: observers wonder what is next. -- observers wonder what is next. ramy: beijing says


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