china and president xi jinping will directly impact the denuclearization summit in singapore with kim jong-un but what do you make of this? is the u.s. president at a disadvantage given criticism he is receiving from european allies as well as president xi jinping on trade? scott: i don't think he is at a disadvantage in dealing with kim jong-un. the real question comes in whether or not, the u.s.-china relationship involves links between trade and performance by china on north korea? here it is a challenge. president xi jinping has been watching this unfold, he may feel left out and at the same time trade tensions are rising between the u.s. and china. the question of whether or not xi will hold fast on implementation of sanctions, becomes more at risk as a result of the convergence of issues. kevin: the brothers saying yesterday would like to see president xi jinping and act stringent border security and policies along the north korea-china border. why is that so important? scott: we need pressure to get north korea to perform. this is a classic coercive diplomatic approach, where w

, criticizing what president xi jinping called selfish shortsighted policies. speaking at the shanghai corporation, his message was in disarray to the g7 summit in quebec. make inthe world must the rules of the world trade organization, support will to lateral trade and build an open economy. inflation expanded more than expected in china's factories driven by higher prices for crude oil and metal. wholesale inflation jumped over 4% in may, but it was 3.3% overall this year, almost half of last year. china's consumer price index climbed this month, touching the median forecast. -- matching the median forecast. italy has no intention of leaving the eurozone. the -- the new government said they .ill not dump the currency the coalition says it wants to boost structural reforms and investment rather than increase spending that critics said would break new rules. bitcoin fell the most in three months at the south korean crypto exchange said it had been hacked. this brings losses to more than 50%, four times bigger than ethereum and ripple. they are reviewing their systems, and cryptocurrenc

is down after john oliver criticize xi jinping. is censorship of the internet and references to winnie the pooh. blackstone is nearing $5 billion for its first round. able marked the third biggest initial close for first round across any investment strategy, that is behind the bank $100 billion vision fund. they got a big pledge 13 months ago from saudi arabia. apple is going to pump up the volume on its device strategy. studio quality over your head -- could be coming next year. they are planning water proofing, biometrics. expect a higher price tag. yvonne: water resistant -- i am ready to use those on my swim. we are counting down the market open. we are set for some declines here today. the u.s. stock market really selling off overnight. they could potentially be restricting investment from china. we heard from peter navarro as well trying to calm some nerves out there. we are seeing declines across the board. down 0.75% right now. looking at china markets right now, the chief of investing partners at capital international. we are a breath away from reaching a bear market. h

is xi jinping. ramy: that is a good point. they have been trying to get u.s. troops off the korean peninsula ever since the korean war ended. when it comes to stopping the wargames and donald trump saying that he. military personnel off, the ramifications are huge when wek at the strategic alliances and partnerships as well as competition. >> absolutely. it was very interesting to hear the u.s. talk about the cost of having the true president -- troop prescence in japan. the democracy usually talks about the cost being -- not allowing these dictators or those who are threatening democracy to have their way. the cost that donald talked about was the economic cost. i understand it, it is expensive. he talked about the cost of farmers out from guam just to go to the wargames in south korea. what cost there is to america position and the security umbrella that it provides its allies statistically, japan and south korea. ramy: the political as well as the geopolitical cost there. that was stephen engle in singapore, thank you very much. let's get the first word news with jessica summers

new level. cctv confirmed the leader met with xi jinping on tuesday, his third visit to china in three months. pledged to keep supporting north korea. it is a sign of chinese leverage with the u.s.. the trump administration has withdrawn from the un's human rights council, a body that has of anti-israeled bias. the council is drawing criticism of trump's policies of separating undocumented immigrant at the mexican border. business leaders, republican, and democrat lawmakers have voiced opposition to removing children from their parents. pres. trump: what i am asking congress to do is give us a third option, which we have been requesting since last year. the legal authority to detain and probably remove families together as a unit. we have to be able to do this. this is the only solution to the border crisis. angela merkel and emmanuel macron have agreed on a plan to strengthen the euro area. its two biggest economies agreed to the for the european stability mechanism. they are seeking to fortify europe against financial crises and strengthen its influence. they still need to get other

together. and in this since i would like to extend my gratefulness to china and president xi jinping , who felt the need to act so no one else gave up on this agreement. the speed of the ratification process speaks volumes. internationally, president trump lost out on this that because he could not do anything in a sense that no one followed him in what he was trying to do. we need to really uphold that. and we are not yet reaching up the level that we need to reach up to, because we are not sufficiently quickly reducing co2 emissions. that is our responsibility and the responsibility of the united states. second point, jerusalem. i openly stated that was an erroneous decision. i do not think we need to destabilize the situation which is relyi upon clearly set forth principles and certain balances. i naturally support the decision related to them being two states, because france has always adhered to that. one should not forget about the people living there and we need to continue negotiations. they have to be two states which would have its own capital cities, the borders, which would be

. the north korean leader met with president xi jinping tuesday on his third visit to china in three months. pledge to jinping support north korea. his presence in beijing is a sign of continued chinese leverage in the nuclear and trade disputes. a potentialected compromise deal for opec, saying it wants support even a small increase in oil production. it is a sign that the gathering could end in disarray for the first time since 2011. the iranian oil minister says he does not believe agreement can be reached and also says the u.s. calls for lower crude prices are unfair. createddent trump has difficulty for the oil market by thesing sanctions against two important members of opec, opec and, and now asks expects opec to change something for the better price in the market. it is not fair. angelaan chancellor merkel and french president emmanuel macron have agreed on a plan to strengthen the euro area. the two biggest economies agreed to set up a joint regional logit and beef up european stability mechanisms, seeking to fortify europe against financial crises and strengthen its global

expand even more since kim jong-un met with xi jinping first in beijing and then dolly ian. ramy: you have four scenarios outlined, and it looks like you are very, very skeptical on anything really happening aside from failure. 5%, as you say, heading towards the finish line together. talk to me about these scenarios and what is most important in less than two hours to go. evan: what is important to focus on right now is understanding what the scope of the ultimate commitments are in the end. what it is the administration going to get on denuclearization? what security assurances are provided to north korea? what does the process look like? is that a fast or slow process? at eurasia group, our assessment is north korea wants to become a de facto nuclear weapons state. the more time it has to basically socialize the international community to being comfortable with kim and north korea possessing nuclear weapons , it plays to his advantage. my concern is he's going to create a process that during the long these issues over time that makes the international community after being exhauste

going to beijing today, likely to do brief xi jinping on the summit with donald trump. we are tracking this flight that is heading straight for beijing from pyongyang. un.s not air force it is all speculation. it is not sure that he is on this point, but it would make sense that he would be heading for a third visit with xi jinping before the summit to get their ducks in a row, and now to deep race. yvonne: what does china want to get out of these talks? there were reports earlier that after the singapore summit, perhaps president trump does it really need china to get north korea into any kind of negotiating table anymore. they have a direct link with them. is that the big concern with them? n: i think beijing got a lot out of the summit, even though they were not part of it. they were definitely the hands behind the scene on the north korean side. with a one it a de-escalation of tensions, and they got that. they also got the news that donald trump has suspended the upcoming wargames with south korea. that was due to be held in august. if those two big wargames that are held in the s

chinese businesses now that have technological leadership. doia: xi jinping cannot that, though, politically. >> we will see. that is a diplomatic challenge, but strategically, a lot of what people are asking from china at think the chinese are willing participants. germany, anyone who has criticized germany has been effectively undermined, so the germans have this sense that when europeans criticize their policy, they are free writing, but when america tackles what europe is doing as a whole, what germany is doing, that's a very legitimate question. nonetheless, it would be politically damaging to concede to donald trump for many of these leaders. felon, a, a convicted would-be president, and the first statewide official to take a chance on then candidate donald trump -- they are all on the ballot today as voters head to the polls in seven states. we will have your primary preview next. this is bloomberg. ♪ julie: "what'd you miss?" president trump's touch will be put to the test today. in new york where infighting from both parties is on dramatic display and one candidate is

strengths and by dear time." now with president xi jinping as the leader, it is about showing china's arrival on the global stage and its power. -- "hide your strengths and bide your time here: andnew head europeans the eu, saying that they will jointly oppose protectionism. there has beene, this essay going around by a noted chinese economist that has also been taken up and noticed by key leaders in the chinese government, that suggests that maybe the leadership in beijing is not quite ready for a protracted fight, that the econis too reliant sti on exports. it will be interesting to see. that essay by the way, has been taken down off the internet by internet censors, but it was widely read. manus: let us see whom next first our chief north asia correspondent, stephen engle, with the various latest on the trade war. global stocks, as we said, have been showing nervousness, as the trade war starts to look like a reality. the international ceo of gloom -- goldman sachs asset management, told bloomberg that there was fear that something has escalated to a near consequence. >> i

pressure for xi jinping. i spoke with sources who are much more protectionist, nationalistic economic worldview in terms of advising this president. they argue the president might have the leverage on june president isat undergoing a restructuring of his own government and would like to see allies in various sectors. that restructuring could be a bit more complex than some of his political enemies as they negotiate these types of deals. cirilli and greg viscusi in paris. the u.s. has reached an agreement with the chinese telecom maker that was shut down after being banned from using american suppliers. bpe will pay a $1 billion fine. u.s. complains team will monitor the company. cte was originally penalized for breaking a sanctions agreement. to increaseling imports from the u.s. if the trump administration meets them halfway in trade talks. the two sides have had deep and detailed talks on foreign energy products. is ansing imports established strategy. theresa may has moved ahead on the cabinet rebellion over brexit. may made changes in the backstop agreement. in plan should end dec

chinese goods. kim jong-un is in beijing for , carrying xi jinping out the results of last week's summit with president trump. the head of iceland's central banks his life will be easier now that the u.s. and the eurozone are normalizing policy. >> normalization in monetary policy in the eurozone and the u.s. is very welcome news for us. things have been very difficult for us, to have significantly higher interest rates and the rest of the world. economy that small has an aspiration to be very financially integrated with the rest of the world. reporter: it is too early to say of interest rates can come down in iceland. 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'm sebastian salek. this is bloomberg. tom: thank you so much. with us as our guest as we wait antonio andng, peter. peter, let me go to you on these markets. i want to set up germany here. how separate is germany from the rest of europe right now? >> it used to be quite distinct, but actually the date of the past quarter has s

strong economy. for xi jinping, he does not want to back down into. that suggest to me that next week we are heading to tariffs. david: who has the upper hand in president trump and president xi? the chinese economy is not growing as fast as it was for some you see the yuan go down at a faster and faster rate than it has since 2015. as president xi have a vulnerability? scott: i think he does. i think the u.s. is probably in a position where it will want to settle first. even though the numbers look rosy, economic and political, for the administration right now, once we do go over the edge, the financial markets will try to finally price this in. the chinese have a better ability to control what happens and the stock market, and they have not been significant stimulus yet. they have the ability to manage this for several months probably more easily than the u.s. david: here's the washington versus new york question -- which is going to affect the president first? republicans on capitol hill's are saying you are hitting my agricultural exports. scott: i think it will be the stock

u.s. holds on to this? xi jinping asked president trump to reconsider this whole thing. david: what is the crux of this thing? the sanctions on north korea and iran, a larger trade deal or is it more strategic to national security? .ark warner really condemned it unless the trump administration plans to open a field office inside the company, beijing is about to get one heck of a deal. this is five g. >> this is 5g. all those things you mentioned play into this, not the least of which is this trade issue that is confronting donald trump. he wants to cut a deal with china. they are negotiating. if he were to maintain the zte decision the way it was, there was a chance china was going to totally back away from the trade discussions. out,nator warner points within the national security apparatus, there are great concerns. shery: senator chuck schumer saying it's up to congress to reverse the zte deal. is it possible? >> it is certainly possible. if they were able to pass a law, but they won't be able to. there's not enough support in congress to overturn what the president has decided. th

surprised if president xi jinping has counseled the north koreans about this -- they could easily request denuclearization on our part as well. so they could insist for b2, b-2 that no b1s, land in close proximity to north korea. shery: right, what denuclearization means, not only for north korea, but also for china.., japan and thank you so much for joining us, from a director of national intelligence, james klapper and author of a new book "facts and fears -- bulls of a life international intelligence." shares rose more than 3% in early trading, and those gains are appearing slightly, but the stock is trading the highest since early this year. m a, you are back. we missed you here. >> very kind of you to say, i missed you guys as well? david: a letter of it. [laughter] shery: yes, please tell us what is going on with the mark stock? >> this is on the back of results of a drug which has a atter survival rate on certain cancer they have been testing it on. what we're hearing from our colleagues at bloomberg intelligence, one of them is saying that this is another boost to their do

last year, up until the two meetings recently with xi jinping and kim jong-un. many chinese security experts worry that if the relationship had gotten worse, north korea could target some of those missiles to china. they want us korea to give up their nuclear weapons, but they worry about the geopolitical alignment in the region and worry that any improve relationship between the united states and north korea might come at a cost for china, might represent a loss of strategic influence for china. so they are watching very closely the geopolitical dynamics of the diplomacy that is taking place. 101, knowingation the prie at which level your counterpart walks away. to what extent can donald trump keep pushing the north koreans? what is the line in the sand you think he should not cross t auses the north to walk away from the table? >> i don't think there is any risk of that yet. everything the trump administration has done plays into kim jong-un's playbook. iti said, if you think about , once north korea declared in their new year's statement that they had completed their nuclear progr

thursday, xi jinping met with a group of business executives and said "in the west, u.s. have this tradition of turning the you guys have this tradition of turning the other cheek, but we punch back." facese firms can expect to the states. i think this will get worse. emily: isaac, you were just on the show talking about google's big investment in jd.com, the big chinese e-commerce company. are we not going to see deals like that? isaac: i'm not going to say that is the end of the narrow, but that -- of an era, but probably the last bright spot for the rest of 2018. emily: how is u.s. tech reacting? brad: they are trying to do everything they can to make an impact on us policy so the new york times recently reported that tim cook last month was in the oval asking for a more nuanced approach. you have got all the u.s. trade associations going in there and lobbying for changes to this policy. i think they are doing what they can. emily: is the u.s. administration going to listen? is trump opened this? brad: we'll see. we have seen a lot of economic in nationalhed security terms, and

end of the day, the whole process is providing more impetus for xi jinping to achieve his made in china 2025 goal, which is at the center of the concerns of u.s. lawmakers. they don't want china to be technologically independent, don't want china to be able to steal ip from the united states. the saga of zte is telling china they need to be able to figure out how to create this domestically in their country so they are not holding the u.s. parts. emily: selina wang in new york, thank you for that update. i want to bring in senator mike rounds of south dakota. second -- senate armed service committee. welcome to bloomberg technology. do you think president trump has started a trade war? or would you call it a trade dispute? as peter navarro puts it. rounds: right now it is a dispute, but nonetheless impacting markets. south dakota is looking at significant impacts to soybean prices, down $1.45 a bushel, amounting to a lot of money in south dakota. up right now about 25% of the entire soybean market in the united states, 60% of everything exported. makes a real impact on some agricu

business flash headlines. hbos it website is down after john oliver criticized president xi jinping. called out the chinese leader for amassing political power and censoring online dissent including references to the he the pooh -- winnie pooh. kathleen: xerox e-cig new ceo has blast -- xerox's new ceo has blasted these efforts. he says fuji films' own accounting problems made the deal impossible. who's denies this and accuses xerox of breaching the merger agreement by ending the deal without a legitimate reason. haidi: apple is about to pop up the gilliam on its new design strategy. among the upgrades in the works for the new airpods is said to be noise cancellation, water resistance, and biometric sensors. higher thance tag the existing one. facebook instagram may be worth more than $100 billion. that is a 100-fold return since the social network but it. platform reach 100 billion active users this month and bloomberg intelligence expects that this will double in five years. the younger audience is more attractive to advertisers. for asiaat is it daybreak earlier this morning. avon will t

has been calling his allies around the world, including xi jinping and shinzo abe. mike pompeo will be touring north asia to meet with allies to continue to lay out the case. meanwhile, back in the u.s. the fallout continuing, not just from democrats, urging the president to take a more cautious approach to verify whether north korea is actually going to need new clear eyes -- going to denuclearize. of senator marco rubio, mccain,nedy, raising their concerns about how to ,erify the north korean german as the president -- north korean chairman, as the president is referring to him, for how he plans to denuclearize. the president will need congressional approval if he plans to ease sanctions. no sign of that yet. the president by all accounts extending an open invitation to kim the first of many steps to come in a dialogue with north kea. at that marathon press conference, more than 75 minutes president trump took questions, he was more praiseworthy of kim jong-un then justin trudeau. emily: that is not difficult to do. kevin, talk to us about the reaction inside north korea. as far a

china and met with the xi jinping. his attitude changed. now he is saying xi jinping is helping him setting up this summit. ,ow that is going to change they have trade negotiations can we will have to see. the foreignike minister of russia had with kim jong-un. for a longey players time. just a decade to go. these are the same people. >> it could be a good thing. scarlet: one other thing that was interesting, the status of the korean war. there was a conversation on ending that status. there are no promises being made. he did not answer that directly. in on the china fit war between north korea and south korea? methey would always tell there was no reunification if china is not involved. .hina wants a buffer theway they look at denuclearization, of north korea, you have to be of the so this isnsula, interesting. a key takeaway is not just at the june 12 summit is set, this is the beginning. >> he is understanding. key issue we need to work on and their way of the rhetoric. lookst denuclearization like to each of these different countries. >> let's talk about trade as well. , robert

york. yvonne: i am yvonne man in hong kong. the first punches have been thrown now xi jinping is poised to match donald trump blow for blow. joining us to discuss the implications, evan lewis, and the smart chief market strategist. -- invest smart chief market strategist. for all the talk of last week being the most important of the year, we did not see a lot of change in the markets. we saw resilience on wall street. you think asia can hold up? are we going to see more of a gap? evan: i think it can. you a listening to what is interesting about what happened last week in terms of where central-bank policy sits, the boj, the ecb and the fed. emerging markets are still strong. that is the growth profile. looking at what happened last week and what caught my attention is europe is still iffy with regards to pmi. the u.s. is moving nicely but emerging markets are growing at a fairly rapid rate and the forward-looking indicators are still there. you can still the asia doing well. they have well and truly kept pace. anything else outside growth has sort of gone by the wayside. you can

follow through on terror threats.- tarrif he praised the personal relationship with xi jinping. the administration plans to issue a list of tariff targets on friday. comcast has made a long-awaited offer to acquire much of 20% three fox. -- 21st century fox. the largest u.s. cable tv it values fox's entertainment assets at $65 billion. bid35 a share, the represents a 19% increase of premium over the disney offer. volkswagen will pay a $1.2 billion incurred by a german prosecutors for teaching regulations. it closes -- for cheating regulations. the world's bigg ys settlement of the criminal case will have other proceeding impacts in europe. british lawmers have rejected proposals by pro-eu politicians that were intended to lock the u.k. into the customs u. and a single market after brexit. as a victory for changes by the upper house. still a leader of london's financial district has to know there is a mood of frustration in the city. >> you can expect a lot more turmoil over the next few months. the fact that this week put out turmoil is a good thing. >> global news, 24 hours a day o

trump has a great relationship with chinese president xi jinping. angela merkellor took him a present trump's decision to withdraw from the move "very regrettable." speaking at an international meeting in berlin, the chancellor said "we know climate change is not a matter of faith, it is a fact." she said germany remains committed to the agreement but acknowledged the country still needs to do more to curb emissions. the united nations special coordinator for the middle east said that illegal israeli settlements in the palestinian territories are spreading and further eroding practical prospects for peace. said thelackner security council today that israel is failing to abide by security council resolution 2334, which the u.n. passed in 2016 which says all israeli settlements in the west bank are illegal. >> please note that all developments are taking place in the broader context of the palestinian territories and uncertainty about the piece prospect and the two-state solutions as well as instability and continued turmoil in the region. israeli-palestinian conflict has escalated in r

doubled down this morning on criticism against chinese president xi jinping in the same way that he praised him for his help with regards to north korea. imposing $50 billion worth of thanfs on his own, on more 1300 products, focusing on the technology sector. but if you are looking at this from the agricultural landscape, if you are senator chuck grassley or joni ernst, republicans from iowa, they won't like this. this is why the republican party is increasingly divided against president trump's trade policies, simply because of the back-and-forth we are seeing from china. , this comesso note as the president is engaged in a tit-for-tat with justin trudeau and european counterparts. whether or not he will listen to counterparts around the world might come down to republicans who are concerned about the supply chain impact of farmers in the midterm election. shery: we are hearing that secretary mnuchin is said to of these the president of tariffs, and we know that the treasury department is not done yet when it comes to china. we are expecting announcements on curving chinese invest

down, this is the thing that supports xi jinping's ultimate power, isn't it? jude: i think we should always remember that china has politics, too. even if we find that we are not able to get much insight into it. there are mortals. i should mention right now that the beijing government is undertaking one of the largest political restructurings in the past four decades. it's completely revising and restructuring its entire governme. it's as you mentioned facing some economic headwinds, especially when it is looking at its exposure to trade here. so i think we would do well to remember that there is on the , theage side for china greatest leverage that china has is its ability to project a lockstep unified message vis-a-vis the united states. they do not have a free press wandering around the halls of its leadership compound interviewing advisors to the president xi jinping and finding out what the internal divisions are. that is its greatest strengtrig. kathleen: solutions. earlier on the show, we spoke to david kirkpatrick, the head of -- he has been covering technology for a long ti

wall street journal report that president xi jinping told a group last thursday of mostly u.s. and european multinational ceos, that china is going to strike back. he was quoted as saying, and i paraphrase -- and the west, we are known as turning the other cheek when you are hit in the face. in chinese culture, they punch back. so there is a lot of rhetoric on both sides. ofy: steve, speaking concerns and retaliating forcefully here, we are just getting a line from the national statistics. they say that uncertainty in the international environment will continue to increase. that is one part of the equation. the other part is beijing saying outwardly, they will respond forcefully but surely within the conversation in beijing. they must be word in beijing as well. steve: absolutely, i am sure there is tons of discussion behind the walls and shanghai on how to counter this. president xi jinping is a nationalistic leader like president trump, very different from the old adage of deng xiaoping about hiding your strengths and biding your time. placehas firmly put its on the global stage

china before tariffs begin next month. this comes as president xi jinping hit back at critics who called the country's opening up a joke. we have the latest in beijing. do we know anything has changed? know, and ever since donald trump took office, there the whiterifts within house over various policies, and the china policy no doubt has been a lightning rod of different opinions. there is no difference in this case. sources are telling bloomberg news that there are those within the white house, including the national economic council, that are urging a restart of high-level talks ahead of the enactment of threaten tariffs on july 6. the national economic council has even floated the idea of inviting vice president of china to washington as soon as possible to try to reach some common ground. keep in mind that previous talks and negotiations that went on were pretty much thrown up the window according to china when donald trump threatened these new tariffs, so right now it does not seem like there is a lot of time. into tariffs will go effect next month. there is a time to go and it does

is beginning to discount. haidi: you're looking at xi jinping having consolidated a moment inhis is history where china is asserting itself on the world stage. they have been pretty measured in their response so far come up but what you think about the building risks of xi jinping wanting to come out with a more aggressive response if the u.s. does come through with its tariffs? >> i don't think the chinese side would appear week or back down. or back down. this is tit-for-tat negotiation. so far, the war has not broken out. it is traded skirmishes. if the tariffs are imposed starting july 6, the chinese side we do the same on u.s. imports into china. lose-lose be a situation. no one will when a trade war. we hope it won't happen. we help if the trade war does happen, it won't be long lasting. however, china domestically controls its policy in terms of monetary and fiscal policy. china has a lot of tools at hand to ease policy to help stimulate the domestic economy and making ofe china's trajectory growth, and especially in areas such as technology, will stay intact.-- haidi: a plea

will make it difficult for xi jinping to have a political will or shall the political will to come back to the negotiating table for fear of looking week. -- weak. the key is to watch the channels of communication at the top between president trump and president xi jinping. we think this is critical to the movement of this trade confrontation to any sort of negotiating table. the question is, when? bethink it is going to difficult for there to be that kind of negotiation to happen. maybe even the summer. if you find that meaningful negotiations are not happening, we are getting close to september, that his campaign season here in the u.s.. that is also the political season in china. in the u.s. has our midterms in november, china has its party planning in october. neither side will be in a political position to make any kind of compromises before those two events take place. shery: it will hurt the u.s. more because we are expecting the european union to apply u.s. goods, especially on those suburban motorbike tariffs. it could be applied. how much is the eu being heard right now b

quite predatory. he was quite sharp in his criticism of the chinese. xi jinping, the president in china give a speech yesterday in to manyin the audience foreign business leaders including american business leaders of their chinese operations here. this is what xi jinping had to say. ofwas not quite as critical those barbs from the united states. a little more diplomatic but he said basically all nations should abandon cold war mentality and zero some gains. pretty much alluding to the united states. he says lessons have yet to be learned from the international financial crisis. we are not fully recovered, we should not be fighting each other, we should work together to make a bigger cake. the ministry of commerce here with the far more critical comments with the spokesperson saying the u.s. is abusing tariffs and triggering a trade war. the spokesperson said china is fully prepared to respond to any new list of u.s. tariffs. the u.s. commerce secretary, wilbur ross, he went right back on the attack on china saying the u.s. has more arrows in its quiver in this tit-for-tat fight.

much on the issue of trade, but the president also raising directly the issue of china. , thedent xi jinping president saying he would like to keep that border more restricted against north korea, and that he would like to see president xi go far, but thanked him for what he had done. in conclusion, i would note that the president also raised the issue that all of this is happening with the backdrop of the issue of bilateral trade talks with china. but so far, the president speaking positively of china's role in this back-and-forth with north korea. julie: scarlet is here, everyone. thelet: i jumped in during news conference. i want to pick up on what you're talking about in trade. the president and shinzo abe made comments about trade ties between japan and the u.s.. it we learn anything new question mark -- anything new? .evin: we really, truly didn't japan and the u.s. have enjoyed a very positive relationship based upon the relationship that they have shared interests with regard to national security. but on the issue of trade, as you've noted, japan has been critical of the u.s.

. afterite is down in china comedian john oliver criticize president g paying -- president xi jinping. chinese authorities appear to have blocked hbo.com but hbo programming has not been affected. that is your bloomberg business flash. yesterday, our investigative team in london put of hedgebshell report funds front running the news of exit polls. matt levine of bloomberg opinion drives for the conversation for the today -- further today. informing the public about the results of an important referendum is illegal but giving these results to a hedge fund so i can profit from them might be legal. might be thate there is no way to get any of this right, that intuitions about insider trading and market cheating and journalism and democracy are hopelessly conflicting. this goes back to martha stewart and further than that. exam are just took the cfa know that insider trading is a good way to flunk the exam. what did you take away from the article yesterday? it was a distinction to me that the u.k. does not know what to do with hedge funds. i get the difference between this and insider trading is w

markets closed. we have xi jinping poised to go blow for blow with donald trump. the u.s. president says he's willing to escalate. they are now suffering the the 2008xit this sense meltdown. in hong kong, i am rishaad salamat. haidi: in sydney, i'm haidi lun. coming up, oil sliding ahead of what could be a fiery opec meeting with iran leading something of a rebellion. this is "bloomberg markets: asia ." rishaad: just to seeing hong kong closed. shenzhen and taipei as well because of the dragon boat holiday. concerns about the trade war getting worse, but a bit of world war. moment. have it at the that's the picturof what's happening. that one. close for there we have it. haidi. haidi: we are talking about last week being the most important week of the year for investors. we might get more market reaction. we spoke about the concerns over trade playing out across the commodities market. copper, soybeans, cole. we have seen that reaction across the commodities complex. could be a contentious messi opec meeting, divided going into friday. you are seeing declines when it comes to wti an

vladimir putin and president xi jinping gathering for a meeting in china, you have to wonder where president trump would rather be. clearly, up his mind is on all things to do with the korean peninsula. jody, will look get back to you shortly. . nejra: let as get to james, chief economist at imc joining us on set great to see you, james. comes tokend when it political relationships, especially diplomacy. when you look at economic implications, what do you need to see at of the g7 summit to feel ok about project area of global growth? when youunately to get a back-check of the iran deal? no. you had larry kudlow speaking earlier this week saying that he will stick to the guns on trade. it will be challenging to get anything out of this, especially if you will not be there for the last day, saturday. he will not it can be there to sign the agreement. nejra: it is interesting to think about whether the g-7 letters or does not matter. i put up this chart, it is the manufacturing pmi numbers come out that with you have rolled over recently. i find it interesting that marcus managed to p

be the next comment to move dollar-yen? mr. trump, steve mnuchin, or xi jinping? morning -- .> good morning, manus and anna the names you have listed are at the top of the agenda. what the markets are focused on his trade. weakness coming through following the losses we saw yesterday. what is interesting in asia is we have seen much of the downward pressure focus on south korea with the cosby lower than i lower by more than 1%. also, the shanghai composite deepening some of its kick lines -- some of its declines, off by 2/10 of 1%. chinese equities have been in focus with the offshore yuan still under pressure today. if we put this in context, because we keep harking back to the 2015 devaluation, over the past five months, we have seen the shanghai composite lose almost $2 trillion, but go back to 2015 and that was more like $5 trillion. to put that in context, at least in the equity space, it is not quite like 2015. take a look at what is happening in fx. the south korean won is one of the worst-performing major currencies. the new zealand dollar is the worst-performing out of the

border between china and north korea. he is seemingly positive about what president xi jinping has offered. -- joe:ht we learn joe: what might we learn from the secretary pompeo? reporter: people are going to continue to try to get him to elaborate on the expectations. quite frankly, it would be remarkable to see north korea leader kim jong-un arrived at the white house. the fact that president trump is dangling that over the head of these talks is remarkable given that just two weeks ago, talks were falling apart. when it comes to john bolton, how much of a role does he really play? you mentioned the public viewing , is john bolton involved in any way following the fallout from his remarks that north korea could follow the libyan model? reporter: we have seen this before in the trump administration where you have two advisors butting heads. right now, it would appear that you have these two leaders on foreign policy advocating for different routes. secretary pompeo in lockstep with his former team from the cia, with the u.n. ambassador and with president trump. i spoke with severa

ago, xi jinping announcing that once again china and atavor of free trade the same time, you have to say canada is the u.s.'s biggest threat to global security, and opposites in be terms of credibility. i think we will see some market swings on the back of that. >> the head of financial us.earch will be staying with week on thea huge global economy. we discussed the fed, ecb, and the boj. more ahead at the historic summit between donald trump and kim jong-un. this is bloomberg. ♪ >> i really believe it makes sense for north korea to come to the table. >> this is historic. communication is something that is a positive step. >> we need to see what conditions emerge during the talks. >> piece first -- that is the number one killer. >> we're going to make a great deal for the world, for north korea, for south korea, for china. >> how long will it take? i think within the first minute i will know. i think very quickly i will know if something good is going to happen. i also think i will know if it will happen fast. presidents u.s. donald trump speaking on the eve of his summit with nort

trump has a great relationship with president xi jinping. i'm mark crumpton. this is bloomberg. ulie: "what'd you miss?" we've had more breaking earnings news. fedex just out, fourth-quarter adjusted earnings $5.91, above analyst estimates. it looks like revenue has also come out ahead of analyst estimates. i'm just looking to see if there are any more details here coming from fedex. on a cat basis, $17.3 billion. scarlet: you mentioned the adjusted eps beating the consensus estimate. it's actually higher than the highest analyst estimate as well, and those have been rising a bit over the past four weeks. if you want to see fedex as a bellwether for the global economy, the u.s. economy, certainly signaling good news. thee: i should also mention company talking about contributing factors. they say there were higher base well. increased volume as interesting. also accelerated, wage increases for certain hourly employees, partially offsetting those benefits, so that is interesting as well. an outlook here as well. full-year adjusted eps of $70 to $70.60 per share. julie: what are they a

personal . justin trudeau is a perfect example. he will go out of his way to do favors for xi jinping including .hanging the penalty on cte >> i am not sure what the president values more. various allies and north korea, we are the same with president x i, i'm not surprised by this at all. in fact i think it is consistent with the way that he has operated. thinks he will maintain these personal relationships and that will help them navigate these conflicts. >> how important is the decision? it is not all been bad. he has all sorts of pushback from congress over this and will continue to do so but he saved a critically important chinese company and said we have far a keyeverage to destroy player in your industry then you realize. in terms of messaging, it is pretty huge. important? >> it is extraordinarily important. forget, these tariffs were largely put in place because of intellectual property disputes. those disputes are at the heart of the china policy. the cte debacle makes it clear to the chinese by unilateral fiat the -- they can put one of their biggest companies out of business and cau

values. secretary of state mike pompeo says after meeting with xi jinping, charitybuzz -- the china's president, they have agreed that a peace process is beginning on the korean peninsula. he also noted washington's disappointment over beijing's move in the south china sea. >> also making progress on security. i reaffirmed our concerns with militarized outposts in the sea in danger in the free flow of trade, undermining regional stability. >> secretary pompeo also said all four nations agreed there would be no sessions relief until it -- until korea fully and completely disarms. the president back on good terms with the united arab -- has returned to his home country. arrival, the's government part of the saudi led coalition. and fighterses backed by the uae have clashed frequently. he fled in march of 2015 when the fighting intensified. in the end, it was not even close. russia crushing saudi arabia. vladimir putin addressed the crowd. russia won its first world cup game since 2002. it opened the scoring and continued from there. their next test is against egypt on june 19. global ne

appetite of xi jinping and the chinese economic leadership and the communist party to go after individual american companies? xi invited a lot of u.s. leaders. there are different reports. one is he is saying we will not target the companies on sure. others taking quite a tough line. we are looking for something they can bring to negotiations to counter the threats from the u.s. side. they said we will shut down all operations in china as a negotiating tactic, then you would have a similar reaction. they would stop selling semiconductor equipment to china. just trying to block u.s. sales in china itself is not a good strategy on the negotiations side of it. tom: i guess i just want to buy in wisconsin, kansas, or man time not -- or montana. >> if are talking about buying property in montana, i can't say no to that one, but the global supply chain and impact on companies, it feels to me market is underestimating the impact this will have on u.s. consumers ,nd on inflation and on pricing and overestimating the pain this will cause chinese companies. are seeing this massive sellof

show, last week tonight with john oliver, the hbo iconic criticized president xi jinping. china has not been known as a haven for free expression. he has claimed down noticeably on any form of dissent whatsoever. theliver spoke about children's character. it has been censored online after being used to mock the chinese resident. he noticed the resemblance between the tubing. >> the fact that he is annoyed about it means people will never stop bringing it up. >> a spokesman for hbo has declined to comment. i am emma brian for bloomberg news and beijing. you can follow me at ek underscore o'brien to get the latest on breaks -- updates at the tic toc. that is some of our reporting from tic toc by bloomberg streaming live on twitter from bloomberg world headquarters in new york, this is "bloomberg markets." i'm julie hyman and for scarlet fu. julia: julia chatterley caret let's get a check on first word news with mark crumpton. ryan is criticizing trump administration trade policy after harley davidson said retaliatory tariffs said it is affecting their products. he says he doesn't thin

well. do you agree with that statement? do you think xi jinping overreached in certain regards? bob: i don't think so. i think it is been a target for some people saying china wants to dominate all of the sectors. on the other hand, if you look at china as a modernizing economy that wants to be a very competitive country in new technologies, then you could say focusing on these new technologies is a way of strengthening the chinese economy and making it more competitive in cutting-edge technology. -- how the chinese chinese government is doing it is causing concern. they don't know how much money the government is going to put in and how much benefit the chinese companies will get versus foreign companies to make the playing field less level for foreign companies. i think that is the issue a lot of american companies and companies from other countries are focused on. if you can get some understanding as to the techniques of the chinese government and convince foreign companies that these are not going to put them at a big decision manage, competitive china 2025e, then doesn't become as

step. a lot hinges on the ability to come to an agreement where both premier xi jinping and president trump can be said to have won the dialogue. it difficult to see that scenario. stick around, we talked opec as the gathering gets underway in vietnam and iran -- the anna -- vienna. members are optimistic about the outcome. >> every minister i have met with agrees it is time for us to change course. and to respond to the markets. and be the responsible producer we have been over the past 18 months. the market fundamentals have shifted. and there is a reality that the market demands more in the second halan what is required in the first half. alternativeseral for keeping the levels that they are today. countries are looking at this, and countries have different agendas. i think we overall have to look at unity of opec as an entity and make sure we come up with a solution that is good for everybody. >> we are optimistic we'll have a successful seminar. from the sessions this morning, people are very upbeat, very optimistic. my colleague has mentioned it will be 1.5. >> that is

tariffs and trade barriers. i suspect it will get resolved when the president meets with xi jinping. and before that meeting, i suspect there will be resolution. erik: what about the converse, the chinese? they have a number of instruments that in they can wield. antitrust approval. that came up recently in the qualcomm situation. the chinese could make a decision to stop buying u.s. treasury bonds. either wholesale or in part. what do you think about those options or perhaps some others? david: let's talk about the letter. i think it is unrealistic for china to not buy our treasured builds. would hurt them. they own over $1 trillion of treasury bills. if they stopped buying them, it would decrease the thing of what they own. it would have an adverse effect on their currency. it would increase the value of the currency which is not what they want to do right now. "is something they will do. they've never said they would. no doubtust, there is that antitrust can be used in a way to slow down acquisitions. i should point out, right now, it is difficult for the chinese to make investments i

keep going forward. president xi jinping made a personal plea to trump to help out on this company. they are getting a key demand met in the ongoing broader trade .egotiations the u.s. could see the approval of a qualcomm merger, which they have been seeking. there is a lot at play, both sides getting something they are seeking. the president, already seeing a backlash on this. we saw president chuck schumer tweeting this out saying, when it comes to china, despite his tough talk, this deal with z proveste the president just shoots blanks. what has been fallout been like in congress? greg: there was that from senator chuck schumer, but also gop senators didn't take too kindly to this. they compared it to steel tariffs, which were imposed in the name of security, saying cte was a bigger security risk. another gop senator in the president's own party saying while zte might make a good phone, they are a little bit too close to the chinese communist party to his taste. a group of bipartisan senators introduced legislation in the senate to try to block the deal or at least put certain r

his personal relationship with xi jinping. the administration plans to issue a list of terror of targets on friday. comcast has made a offer to acquire 21st century fox, can tapping a previous bid from disney and setting up a bidding war for rupert r's media empire. the largest cablder said it has offered $65 billion. cash, the bid in represents a 19% premium over the disney offer. volkswagen will pay a one poi $2 billion fine and could find german prosecutors for cheating es emission regulations. it closes one chapter as new developments arise. the biggest automaker said the settlement of the case will have a positive impact on other proceedings in your. it faces legal action 5 countries. british lawmakers have rejected prs intended to lock the u.k. into the customs union after brexit. the vote is a victory for theresa may and reverses changes inserted by the upper house. the financialf district told bloomberg there is a mood of frustration in the city. the fact this has been passed is frustrating. >> global news 24 hours a day and at tic toon wered by more th0 journalists and a