in the chinese market all chinese football is willing to pay what that's worth. and. this building in beijing is chan and square is where china's dreams of football glory are being hatched. the government wants to bring the world cup to china and ideally become world champions. football is an important part of president xi jinping strategy for becoming a sports superpower. even though it's wrong for spa if that is a football has for we'll publish shouldn't be underestimated so i'd love to be a global superpower you also need to be a cultural influence and you know for. instance with international cinema which generates enthusiasm and excitement and if so china's working on creating something like hollywood. football works in the same way it generates enthusiasm and creates a feeling of unity in a country if you do shaft in my. throughout much of its history china has wielded power and influence. president xi jinping is looking to position china back at the very top sport as one way to generate enthusiasm and strength. football is perfectly suited to that goal. in ques

there's a kind of choice for any chinese leader makes about which ght of chinese history to adopt. even in the ming dynasty you had periods when china was exploring, the greatest explorer was out sailing with his 300 ships, and then soon thereafter the ming dynasty close back down. down. they burned all the ships in the same dynasty. >> peter the great versus others that you he. >> right. >> to what extent, is it even possible t know, how do i put this? that this is now the reality for the foreseeable future? or to what extent does he the t to put in real roots, or to what extent is there real pushback? >> a lot of questions rolled up in that. i think we can say fairly -- >> that's a -- >> i think we can say fairly he is amassed institutional power. as i mentioned control all those committees and commissions. he has hand selected the standing committee on the politburo and all the center commit himself. he is at various parts of the bureaucracy pledge loyalty to xi jinping himself as opposed to the party. he's done a a very good job of amassing this institutional authority. the que

not just chinese companies trying to buy u.s. companies, but american companies trying to sell high-tech products to china try and step in and stop exports of high-technology products in the area china's trying to create for their 2025 program. it looks to be a big week for china u.s. relations. but otherariffs, things the u.s. is trying to do. manus: we just talked about the trip at the top of the show. look at the yuan. down for eight days in a row, longest losing streak since 2016. the rrr is supposed to be supportive, but it looks as if it is almost weapon icing the currency. -- weapon icing the currency. reporter: when the fed raised rates, the chinese did not raise rates. we are looking at a rising interest rate differential. the central bank is stepping in and adding this $108 billion of money that cannot be unleashed into the economy. they are making an effort to support growth, the deleveraging program. that will have an effect on the currency. i guess the hope is that it would have an effect on the stock market, which w

pillsbury called chinese aggression. that's not my term. it is a term that was introduced in the 2017 national security strategy and then on the column here is the over 50 past policies and practices that china engages in in order to promote its economy worldwide. if you can say that one picture is worth a thousand words, this matrix is worth about a half a trillion dollars a year that contributes to the trade surplus of china using these various policies and practices, most of which are outside the bounds of international trading order. before i do that, let me just step back for a minute and talk a little bit about the administration's trade policy and trade philosophy. the president, president donald j. trump has made it clear that he's a free trader. he has made it aabundantly clear that for his administration trade should be free, fair, reciprocal, and balanced. and in a world where we had free, fair, reciprocal and balanced trade, we would have zero tariffs. we would have zero nontariff barriers. we would have zero subsidies to indust

the chinese government? if the chinese company is investing in some technology, some business, something going on, as a practical matter, should we see that as the chinese government doing it? >> i would say the degradation -- but whether you have a wholly-owned state-owned company that is an element of the chinese government or a private company that the chinese government still has leverage over back in china, there may be a spectrum of risk. but at no point in that spectrum , is the risk at zero. ms. bingen: china international law says that all organizations and citizens shall support, cooperate with and collaborate , in national intelligence work. mr. thornberry: that's what i thought. mr. bacon? mr. bacon: i know cfius has an important role and we need to protect our technology and make sure it is not being sold or exported. i heard from a couple of companies that thought they were unfairly limited. and i want to know from the d.o.d. perspective shouldn't we have an appeal authority to say, cfius gets

if a chinese company with close ties to the chinese government healthess to american records, banking records, that information could be used, for example, for espionage purposes. works in thewho state department and owes a lot of money to the banks or is deep in debt, has four kids that are about to go to college, maybe that person is a better target for an espionage operation. concern is this growing that information is power. , whensomething that cfius theas established in 1970's, never dreamed of. we don't want the chinese to control the company like that. but now, it is a much broader , if in theings that wrong hands, could be an issue. host: we are talking -- cory: there have been cases of individuals arrested in the u.s. who are charged with -- you are targeted by chinese spies because they knew these people were in dire financial situations and they have been charged with passing on sensitive american secrets to these chinese individuals for the beijing government. so there are tangible cases related. it is not theoretical at this point. host: is the focus on china when it com

and china after washington moves forward with tariffs on chinese goods but beijing answers back. italy and france call for changes to e.u. migration rules following their dispute over a ship full of refugees. the head of the pakistani taliban is killed in a drone strike in afghanistan. and we'll have the latest on the well come up and russia as portugal's one out of banks that. welcomes the program a trade route between the world's two biggest economies china and the u.s. has escalated president donald trump says he will impose twenty five percent tariffs on fifty billion dollars worth of chinese imports saying the u.s. was being taken advantage of what beijing promised to retaliate quickly with its own tower of twenty five percent on u.s. goods also worth fifty billion to start in july ellen fisher has more from the white house. u.s. president donald trump has been hammering china on trade for months and a key or take morning on the white house north lawn where he held a surprise news conference he confirmed he was going to act we need protection everybody take him as the europe

stocks than chinese stocks. what are we seeing this extraordinary sense of bearishness toward china, when there is also the argument that it is very domestically, fundamentally -- it is a very fundamentally driven market? when youabsolutely, look at the correlations between chinese equities in the u.s., it is incredibly low. as you pointed out, why are we seeing shanghai down to the mid- teens, one us a nation is that it is a sentiment towards emerging market, and the ongoing argument that we are in the midst of an nem crisis. in fact, globally -- we are in a midst of an emerging market crisis. globally, we saw about 12 point 9 billion u.s. dollars leave the market over the past month. 8 billion which is a record amount, last week alone. over $5 billion of those was in em. flight, is a risk of and last week with the announcement by trump of a 200 billion dollar target, you saw flows going into australia. so despite the ongoing demand from china's investors for equity, there is still the negative sentiment genera

let's have a look at chinese banks. odee market, the auction peri coming to an end come a bit of bank andfor china ag icbc. they have been on a record 14 day losing streak, all down partially to the yuan. despite that, analysts clinging to their bullish forecasts on these lenders. let's bring in a banking analyst. what is going on? >> since the market peak of january 26, the sector has come down 22%. that has been underperforming msci china hang seng index. during the last market downturn, been banks had outperforming the indices. i want to highlight it has been stronger than last time. banksd: you expect these to power through all this yuan weakness and stock market downturn and emerge stronger at the end of it. eventually share price will reflect fundamentals. banks we cover make grow earnings more than 8% on average. int is compared to only 2% 2015, 3% in 2015 -- 2016. those banks could be growing profits by 10% average, so you are seeing a stronger profit outlook boosted by margin widening. bad loans is the picture

it's also what the chinese government tells us. if you read, for example, two documents, medium to long-range planning document in 2006, it pretty much lays out these industrial policies that are used to promote the chinese economy. and then, of course, there's the now banned in china, apparently. they banned their own policy. china, made in china 2025, this is extraordinary. this is a policy which came out with great fanfare. it's referenced repeatedly in different government documents as you can find and now there are reports out in the press that chinese themselves are suppressing that as a way of not letting you know that the intent of that report is to put forward a set of plans that would capture 70% of the production of the emerging industries of the future within seven years. extraordinary. as president trump has said, if we lose the industries of the future, we won't have a future. so some of you at least have the chart as a handout, and it will be up on the web available to you, but let me just now walk through what the c

chinese americans, 13,000 of themerve in world war ii and there were only 120,000 chinese americans living in the united states. so 13,000 represented 25% of the le adult population. and they were serving in the war. so my father-in-law was part of this. and also alan yee was part of the flying tiger. so what i would like to do -- i'm just honored that they're here and could make it. so i will call them up and if you would like to say a word or two and i'm sure that my colleagues here will be very patient with you. alan, you come up first, dale, and ronald third. okay, alan? al so if we have a little patience with him. he's tired. alan, thank you very much for being here. [applause] >> supervisor yee: dale king, would you like to say a few words? they have a combined age of 280, these three people. >> board of supervisors, i'm delighted to be here today. i'm excited to be here. i urge the supervisors pass the resolution it urge the congress to recognize the chinese who fought in world war ii. we have recognized japanese. we have recognized filipino. it's time we recognize the chinese. than

so some local chinese residents, white sympathizers, who supported the chinese community, launched a letter writing campaign to officials and with the help of the chinese government commissioner to the fair, they eventually got that attraction closed. but it didn't mean there wasn't anti-chinese sentiment anymore but they got that shut down. in 1939, china was already at war with japan, japan invaded china so china is deeply i am ed in this war with japan so the government of china did not send a delegation to the fair. they did not erect their own building but the local chinese community actually raised a great deal of money to erect their own chinese village, which was placed on -- also on the midway of the 1939 fair, which was then called the gateway, and they erected a huge chinese village with chinese acrobats, theater, artisans, producing traditional craft, in that way, the chinese community was very much a part of that 1939 fair. >> you grew up in san francisco? >> i grew up in santa rosa, just north of san francisco. >> i want to go back to something earlier you said, fire of

billion of chinese goods. chinese equity at their lowest level since 2016. lost liquidity, recalibrating a world run by fed hawks and doves from the ecb and boj. and new pain, no gain, em equities sink, yields rise. is this time really different? david: welcome to "bloomberg daybreak." i'm david west and with alix steel. it is the world cup. this is himin, speaking at the opening of the world cup. saudi arabia versus russia. look at the hand gestures. russia won 5-0. you can see him saying, what are you doing to us? alix: vladimir putin saying, we are just better. they totally crushed them. david: this is not customer tennis. this is, we will be you no matter what. alix: did it feed into oil conversations. pump more oil, because we are better at soccer. risk off tone on this friday. s&p futures down by about 11 points. euro-dollar is up. still heading to be the worst week for the euro since november of 2016. a monster fall yesterday, but nonetheless it feels trade wars could be winning out today. spread, and this does not seem far-fetched. 1%.e down by 3/10

the chinese exclusion act when the chinese and americans became allies in world war ii. san francisco's a city of inclusion. our parks should celebrate inclusion now and carry that message for generations to come. thank you. >> supervisor yee: thank you. >> good morning, supervisors. my name is lindsey kwak. i'd like to give litit more background on julius kahn. he did not stop at the chinese. after the exclusion act was made permanent, he pursued the exclusion of nap s, asian ans and evenaid horrible things abouton the floor. exclusion acts of 1923 and 24 did bar asians, but imposed literacy tests, imposed qas people from other nations including eastern europe where julius kahn was from, and julius kahn did not vote in favor of either of those subsequent acts, and so that shows that he had this particular annimus against and asoeeall did pursue -- he had a racist agenda. we have reached out -- we spoke with the jewish community relations committee, and they rehed out to local jewish historians, who have confirmed our research, including a researcher named fred rosenbaum

the chinese don't see it that way. normally when you have these misperceptions the outcome is not good. emily: remind us why the chinese president believes and how this will impact his made in china initiative. amy: i think this will just reinforce his belief that china does have to in digitized technology manufacturing. i completely agree that the uncertainty here is overwhelming in part because president xi and his government don't understand what the united states wants to achieve here. so they have tried to use some diplomacy to buy their way out of this trade war. promising to increase purchases of american goods and services. president trump today says that is not enough. we want to deal with the underlying issues harming the u.s. economy. that is china's unfair trade practices. the chinese believe these are national security issues. national security issues will not be part of trade negotiations with the united states. once again, this makes me believe that we are in for a tough time. both sides cannot make conc

chinese markets. this is causing you want chinese, but not the enforcement trying to weaken the yuan. anna: what is the next stage of this story? parts of asia, their currencies, the countries that rely on china for demand. do we see that contagion of the week yuan spreading? -- weak yuan spreading? on how the dispute between the u.s. and china evolves. whether this will scale down or escalate further. there is a good chance that they will implement further import i think this will strengthen the dollar further. further import tariffs should be inflationary in the u.s., particularly in the u.s. economy that is running at full capacity. this should strengthen the dollar further on a broad basis. on the other hand, yes, the chinese economy outlook is worsening. i would not underestimate the power that the chinese authorities have over their economy. dampenve been able to any downward spiral in the chinese economy in the past. i think they would do so in the future. recently, we suck quite a significant

on chinese investment. our guest has some strong views presidentxi, saying he sparked a global backlash that transcends the u.s. and we will see a china's going to cave, given soe trade tensions we have seen. 2012 -- china 2025 has failed in that regard. >> trade is the big question, not just what does it mean for the u.s. economy and growth in other nations around the world, but also if market volatility continues in stocks and bonds. haidi: and that inflation question as well. we will be live in shanghai at the mobile world congress, the seventh year running for this event. we'll talk about the possibility are the potential of the internet of things in china and the rollout of five g across china. that's it for "bloomberg: daybreak australia." this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network

this is around the chinese heavily censored internet. they push the bounds of a separable public debate in a this can lead to jail time. china and the european union have promised to oppose trade protectionism. they said unilateral actions and push the world into -- they say it could push the world into recession. china and the eu are firmly opposing lateral is an and protectionism. triggerions could turbulence and even a recession. president trump has accused both aging and brussels of unfair trade. hasu.s. supreme court thrown out a government lawsuit. they prohibit merchants from steering customers to lower fees. it deals a blow to retailers looking to reduce the $50 billion to see if that pay to credit card companies each year. global news, 24 hours a day on air and on tictoc on twitter. powered by more than 2700 journalists in more than 120 countries, i am jessica summers. this is bloomberg. kathleen: let's get an update with sophie. see the nikkei 225 up by .5%. profitability improves, -- elsewhere, we are seeing u.s. futures tick

if the chinese system isn't accommodative of that, because chinese soes refuse to lay off workers, they refuse to allow for bankruptcies. then in a sense, if adjustment is costly, and i think we have some evidence in the united states during the last ten years or the first decade of the 2000s that adjustment in labor markets in the united states, in communities, due to shocks, has been particularly costly, then that would mean simply china isn't bearing its fair share of the costs of this, right? and this is a reason why we need to be thinking about this as potentially allowing our systems to coexist. second, there may be instances in which in particular industries that are heavily concentrated -- you think about strategic concerns in the economic sense, boeing airbus, high fixed cost. al gop list particular types of industries. with very few firms, allowing for if we think of state-owned enterprises, firms receiving subsidies, this could lead to strategic behavior or profit-shifting behavior that might give firms -- a firm in one country unfair advantage over firms in another. we might

side, restricting chinese investment in the united states. this move on tariffs was pretty well telegraphed. trump said he was going to react very strongly on trade with china. fact we havete the now confirmed that china has agreed on this merger, which was part of the trade negotiations that china said they would agree zte was allowed to get back into business. that is where we are at. -- china will respond to these tariffs once they are initiated by the united states. haidi: have we heard anything from beijing? tom: not officially. we know from sources that beijing will retaliate in kind and quickly, once the tariffs are officially imposed by the united states. china has said all of these discussions and agreements around britain -- ripping up its imports -- ramping up its imports, deals would be put on ice if these tariffs were imposed. there is always concerned about an official measures being imposed on u.s. companies operating in china. china says it wants to avoid a trade war with the united states, but has to be shown it to be taking

well the chinese risk boycotting apple, that is a trillion dollar question more than 1 million chinese in some way work on apple's product. what is bad for apple is bad for the prc. the chinese economy depends on our market a heck more than we depend on those. i think president trump will take the pain. our economy is strong enough that he will let boeing and caterpillar, and united technologies get hurt. same for proctor and gamble, beverage companies or yum china. we hear that the chinese have more than a trillion dollar in treasures and can hurt if we dump them. that is nonsense we know many u.s. outfittins wat to do business in china. same for most of the techs like ibm, intel, cisco and microsoft. but, that is a t rex which has fangs. f.a.n.g does little there. facebook hasn't been able to crack the market neither has amazon, nor netflix which stock was up huge today. and alphabet's google. google hasn't been willing to play play. f.a.n.g is going to rally the most because f.a.n.g isn't china. china is now gm's largest market still the stock got hit today just like boeing some are

it is a plan that the chinese government came up 2025. it is a plan that the chinese government came up with in 2015. it is essentially a roadmap for china to use it in a strength, making things, to help china become great and the future. to achieve that, china needs to up read what it manufactures. the year 2025 is just the first step to it by 2025, china wa nts to the first step to it by 2025, china wants to raise the quality of everything it manufactures. it wants to integrate digital technologies into industrial processes, leading to the creation of global brands you andi to the creation of global brands you and i would purchase, but from china. by 2035 they want chinese companies to be ahead of everyone else which means read through the major industries and leading innovation in the strongest sectors did itand innovation in the strongest sectors did it and by 2049, innovation in the strongest sectors did itand by2049, 100 innovation in the strongest sectors did it and by 2049,100 years after the founding of new china, the country aim

the us threatens a further 10% tariff on $200 billion worth of chinese goods. nose dive — another low—cost carrier's set to announce a spiralling loss. we take a look at the challenges facing the aviation sector. and the markets in asia are headed in one direction thanks to the latest trade threats firing between the us and china. let's bring you more on the trade story dominating. president trump has just threatened to impose an additional 10% tariff on $200 billion of chinese goods in the latest turn of events in the us—china trade dispute. the move could be a major escalation of the row which threatens to take the us and china into a trade war. paul blake reports from new york. this announcement is the latest twist in what is becoming a tit—for—tat trade dispute between the world's two largest economies which could spiral into a trade war. last week the trump administration slapped 25% tariffs on up to $50 billion worth of chinese goods are prompting ageing to threaten retaliation. donald trump says he will impose a 10% levy on $200 billion worth o

today she is the chinese outreach coordinator for the weaker human rights project and joining us via skype is ryan a professor of history at loyola university in new orleans he is the author of the book the secret. history welcome to the stream both of you i want to start with a personal story we got a couple of them on twitter and of course we're not able to independently verify all of the facts and people are sharing them and they're resonating so should the mining size i haven't been able to talk to my family for almost two years now when there is quick contact they asked me to use chinese rather than week there i just got to know that my dad was taken to one of the camps three months ago and he had heart and leg surgeries just not long before that he continues that my dad is a law abiding citizen and the only reason i can make sense of his detention is that he travel to dubai and turkey even by saying this i'm already risking further arrests of my other family members. what do we know about the camps who gets put into the camp. cation camps before talk about aria education camps

section is that the chinese. the chinese minor tax was to reserve my opportunities to whites. it was designed to validate statutes in california. the territories which prohibited the chinese from test -- testifying against whites. section 16 intentionally, to not give citizens the right to own land. put did not just noncitizens into the production of the 1876 act, it was a different thing. it was more limited and designed to allow states to discriminate in land ownership on the basis of race against noncitizens. advantage ofook this federal position -- permission. and idaho statute allows for corporations and noncitizens to own land and pursue my name provided the chinese were persons of bungling dissent, are excluded. men, not achina resident of the state, should ever hold any real estate or mining claims. those are perfectly legal with act becausehe 1870 they were designed to protect that sort of discrimination. here, senator stewart, the proponent of this, made clear. he said the provision which has been added is one of great importance. it is of more importance to the hono

about aoncerns crackdown in chinese investment in the tech sector. new hardshipngs a for this market. >> yeah, and this trade talk has been a negative for stocks. snapshot, a look of a we are going to go really quickly through this. are seeing bonds higher, yields lower which is impacting banks. we will get a gold by the way at the six month low. down a mostly percent for the month, the biggest drop since september. oil will get you off to the races with a number of factors. let's go to some of the charts because what you really see will follow through some of the energy stocks higher on the strong rally in crude, and we saw a lot of tech go lower. -- a very strong stock at the top has been splunk . panel, the the next bond yields lower, for 13 days and this is a record. it has a lot to do with the 10 year yield being lower. there is concern about the impact on interest rates and the bank profits. lastly, let's take a look at media because a big not -- nod to disney. they get antitrust approval to buy the assets from fox. it puts a lot of pressure on

where the chinese economy is. it is slowing down, and for very good reason because they are getting a grip on some of the systemic problems. if they look at the strength of the consumer, consumption is the main driver of growth, not investment anymore. there is a lot to like in the china investment space. we like the earnings of the chinese banks, and we think clients can raise closer to that. we have been pulling some clients into structures around the chinese banks. obviously, no one in the investment community loves this we are seeing with all the tariffs, but firstly, this would take a huge escalation to get any kind of really significant increase in the overall tariff applied to u.s. imports. i think the u.s. imports or something like $2 trillion a year or something. we would need to see this really escalate beyond that. secondly, if you have a very pessimistic view about your trade relations breaking down, if you think about it, one of the hedges would be to on the domestic chinese companies in china, becaus

chinese government subsidies which many foreign countries say that allows chinese. an ease to use goods and flood the world market with cheap goods so these structural changes how they vote will be much more difficult for china to commit to than the specific targets that the u.s. is seeking and florence just briefly we've seen a number of events in the past two days the u.s. imposing tyrus on its allies in the g seven finance ministers responding angrily so what impact is all of this having on those u.s. china talks if if any that's right so it was quite surprising that the u.s. went ahead with tariffs on its allies and it's going to make it more difficult for the u.s. to come to find other countries who are going to come together and want to confront china what they say are china's unfair trade practices because remember many of these countries also share the same complaints against china intellectual property theft chinese subsidies allowing overproduction and therefore world markets being flooded with cheap goods especially steel and aluminum because a large part

the chinese government. last year there was a federal lawmaker who had to resign basically after he was linked to chinese links to a businessman were exposed. since those laws were introduced the parliament, those relations have deteriorated further. dip mating rlings relations between the two countries have been in a deep freeze. rishaad: how do you think beijing will look at it? how did they react and r-how are they expected to react? >> we can see by the reaction in the past six months or so. they are very anowed by the way this is being presented by the australian government. not necessarily the legislation itself but the way they are accused around the edges of meddling in australian government. there has been talk by australian exporters in beef and wine, their shipments to china have been held up in chinese ports and they have been linking these diplomatic disputes to those delays. the foreign minister last movept directly blamed -- months directly blamed australia. and a chinese ambassador to austral

and mercenary pilots as far back as 1937 helping the chinese fight back against the chinese. the eagle squadron definitely not unheard of. the narrative picks up with the commander of the flying tigers. and the commanders in the army and society is going to leave and a famous stunt pilot, says his service is better used in china. and the back woods of louisiana, and takes up this invitation to china, and the book starts with that context. the protagonists, a handful of americans, mercenaries in the middle of it. >> no us government. >> soldiers of fortune. and the area where and adventuring airmen, part of the american military, the roosevelt administration is concerned, took efforts to clamp down on passports that in foreign wars, a big international incident in 1938, one of these pilots, he and his wife were in china, going through japan and they get arrested and the japanese government, this becomes the kind of thing that can start a war. and that context, america is at peace and participating in foreign wars and certainly aspects of that resonate today. >> there is no us

giving chinese the vote. senator williams of oregon said there are people who do not or will not learn our language, they cannot or will not adopt our manners or customs or modes of life. they do not amalgamate with our people. they constitute a distinct nationality. china in the united states. they continue to be the ending -- ignorant -- and the blind disciples of paganism and religion. suppose that the control of all our educational institution was transferred to the hands of these people. will be the consequences? just as the chief justice concluded in dred scott, senator davis of kentucky contended that the declaration of independence made clear that the united states was a white nation. i would be willing to lay a perpetual embargo on asian immigration. third after should the allowed the privilege of -- i want no negro league. i want no mongolian government. i want the government of the white man which our fathers incorporated. the declaration of independence was made as irrespective of the knee grow as

versus the chinese right now. scarlet: and to add the products that will not be hit with tariffs, consumer goods will not be hit by the tariffs. looking ats really china 2025 and seeing what they can do to tackle that. you just said it obviously plays into what you would hope to be greater negotiations, and we have known on the chinese side, we were speaking to steven mnuchin as well. in light of the fact that the president that this morning that if we get chinese retaliation they will consider further tariffs, and we also had the trade representative as well, bob lighthizer, saying there will be more restrictions on chinese investment in the united date coming in the next two weeks. where does that leave any form of teacher trade negotiations and willingness on the chinese side to come forward here with options? that is the big question, and also the question of willingness on the u.s. side. basically, if the chinese respond, there will be more tariffs. so of course the chinese have already said they will respond

>> may have wanted to lower chinese companies to list there. xiaomi doingg at it after their ipo, and other companies are considering it. they have not done that well so far. getting the big tech companies to list in china, so getting hon hai to do that allows them to curry favor with beijing and allows them to hold on to 90% of check -- of shares and bring in strategic investors. beijing wins because they get to say we have this massive chinese company. haidi: thank you so much for that. foxconn industry rising by 20% in the premarket limit in its shanghai debut. this is bloomberg. ♪ this is bloomberg. ♪ not strong enough at the moment to close business. up premarket against this backdrop of tech stocks under pressure globally speaking. the nasdaq on the way down. place.meeting is taking we saw the japanese prime minister land there. gdp in japan was wait worse than economists had been calculating, the contraction .6%. looking ahead to trade data out of china in the next couple of hours. looking at foxconn and these markets in shanghai and

if you look at the chinese economy and the fact that the chinese do have a significant deficit. ultimately you could make the argument given the chance that the chinese economy does appear to be slowing down while the u.s. economy appears in fairly good shape. we are getting a little bit of a rebound here in europe and that is on the basis while the rhetoric is being dialed up, the delivery of further terrorist will take quite a bit longer. as is the fact that the initial tariffs still being delivered by the sixth of july. there is a perception that there still is time to dial back the rhetoric and ultimately arrive at some form of accommodation. at the moment, the rhetoric is being dialed up, but the delivery could take a while to sort through. gerri: jay powell speaking at the ecb event in portugal today. what are you expecting? >> i don't expect mr. powell to deviate from what he said at the recent meeting. it will be interesting to see if he deviates in the context of the escalation in the rhetoric between u.s. and china or possible consequences to u.s. growth. i can't imagi

but the chinese economy is doing quite well at the moment. how much of a difference to think that makes to how chinese people view the situation? even though the chinese economy is doing well, but i think the fact will be quite widely spread, because camino, agriculture products, those from the united states are affecting the food and meat price in china. that would affect the ordinary chinese people's life. we worried them in this case. what kind of global impact will this haveif what kind of global impact will this have if this gives escalating, on the lies and pockets of people at home? in general, the household price will go up, for sure. —— lives. given how much punishment united states is given to china, this will really have a ripple effect across europe. we will all end up in the sinking ship in this case. what next? what you think will happen next? what is your prediction? my modest prediction would be that the chinese ministry of commerce would somehow offer a list of tariff positions to respond to what the us has dubbed this wo

it is unlikely that chinese airlines would cancel orders immediately. that said chioes have a reputation and a track record for sayin we are moving some of the orders over to air bus or any future ordersould go to air bus. that is why boeing is sensitive to t trade tensions. >> phil lebeau at the port of charleston. >>> the genehepy treatment shows promise. drug maker says three boys with muscular distrofy showed improvement. the trial is still in its early es saresta said it helped grow a key protein that is missing in people with this disease. >> we need to take the results we have and treat additionale children andeed to watch the children for a while. but this is potentially transformative. we have given this gene therapy that treplaces thock absorber and in these first three children at three months they are showing amazing exthession. shock absorber appears to be in the muscle and appears to be working. >> the shares soared to 14393. afr the bell fed ex said it shipped more packages at higher rate helped overall earnings rise. the g deliverynt gav

the reopen of chinese markets, chinese stocks already languishing and near to your lows. we have chinese stocks futures pointing lower, falling another 20% since january when donald trump slept those solar tariffs on china. the index is likely to drop this week into a net year-to-date loss. testing the 200 day moving average. that meeting that took place a week ago in singapore, one later commitment seems to be being fulfilled. let's get the first word news from paul allen. >> south korea's defense ministry said a joint military drill with the u.s. plan for august has been suspended. commitment made by president trump at last week's summit with north korea's kim jong-un. kim is reportedly on his way to beijing for the third time in as many months to brief president xi on the summit and discuss negotiating tactic. theresa may has suffered a defeat on -- setting up about a without the commons on wednesday. lawmakers in the blood to house passed an amendment to ensure parliament can direct the final stage of negotiations. meanwhile, even leaders are considering issuing a for

initiating the tariffs on chinese goods. so how do you particularly approach the trump administration in terms of the trade issue if the summit goes well or did not go well? >> is a great question. i do not predict with the trump administration. i think it is a fools errand. but i do think we need to recognize that regardless of what happens with the summit, the trump administration shows it will impose tariffs. when extended the deal on aluminum tariffs on the national security law, especially on canada, mexico, europe, two weeks ago, american allies. especially in the case of canada. these are part of north american supply chains that will really hurt. this shows the trumpet ministration is serious about imposing tariffs. and we need to understand they could very well impose this on june 15. >> just a small additional point. people, at times, have talked about whether or not the u.s. trump administration feels it needs china one way or the other and north korea. i think they will rationalize that either way. if they have a

immediately we are looking for that chinese reaction. anna: we are looking for the chinese reaction and how they are -- how are they expected to respond? us theyrces have told are going to respond once the tariffs have been announced. tariffs are expected to be soon.ted -- enacted china is going to hit back pretty quickly in kind. frome expecting tariffs china on things like soybeans and aircraft as well. china has said is going to -- it is going to scrap these agreements it has had for the past few months. those will all the next and void ixed and void if these tariffs come into effect. anna: yes, tom i know it is difficult to predict the impact this could have on china's economy. is its retaliation of to be stronger given the week at -- weaker data we have seen recently? tom: that is interesting. i think we should expect them to retaliate in kind. the bloomberg's economic team have been crunching the numbers on the impact of these sanctions. it will be minimal on the surface. if we get this tit-for-tat retaliation then it will have a b

sanctions that's the embattled chinese telecom maker that the u.s. imposed on that company and it's very good for see personally that the u.s. gave him relief now we've got even a bigger matter that puts him in jeopardy at home does china one denuclearization of the korean peninsula. in an ideal world i think that they would prefer that because north korea with just a few nukes does neutralize china's position you know the koreans and the chinese have been fighting with each other for two millennia but on the other hand they don't want to see north korea a friend of the united states and so i think that they would prefer north korea with nukes if that meant that they were at a thorn in our side also we know the chinese have been supplying crucial equipment and technology for north korea's ballistic missile program and components in quitman a material for north korea's nuclear weapons program so that's an indication that china is really fueling this in a very dangerous way and denuclearization has two different definitions the united states is as nort

from part of jack ma's loss of chinese retailing. it is now investing in bricks and mortar as well as other asian companies that are in this phase, including a big company in singapore. it looks like it is decided that silicon valley is not the place to be, and with these continued investment curbs from the trump administration, we are not likely to see that change anytime soon. rishaad: thank you so much for that. haidi: jodie snyder bloomberg senior international editor. a down day when it comes to japan heading off to the lunch break. the yen story a big downside headwind there. >> machinery makers and electronics under pressure. .etailers sliding we saw retail sales in japan fall by the most in two years. automobile stocks gaining ground. that is a snapshot of what's going on in japan. this is bloomberg. ♪ this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcas