i think we will see increasing fallout with respect to u.s. consumers, u.s. businesses, u.s. theses, and as stakeholders talk to congress and pressure is put on the administration, i would hope that both sides could take a deep breath, get back to the negotiating table. these issues do lend themselves to a negotiated solution, but let's all be clear. they're all going to be very difficult and long negotiations. they don't lend themselves to easy solutions. ramy: one thing, we don't really know what the end solution might be to this in terms of articulation from either side. wendy: correct, but i think it's incumbent upon the u.s. side to indicate its priorities and it's and games. is it looking for a significant reduction in the trade war? or is it more important to seek structural, long-term, lasting changes to the chinese market? or is it all about just lifting market access restrictions with respect to trade and investment? if it's all three, which is the most important? and how do you sequence all of this? but to put all of this on the table and say china knows what it ne

isis the u.s.. president, who wl go to moscow early next week, prprepared to turnrn his back on nato all embracing russia? could his tough talk and ununpredictable actions undermie the transatlantic partnership and the postwawar order overall? how united is nato? that is the topic this week on quadriga. it is a pleasure to welcome the senior associate for international security at germany's institute for international and security affairs. she says nato as only as strong as its members make it an open complex undermine its collective commitment. great to have christian, a security expert here who says u.s. president trump could sell out the alliance to vladimir putin. this call great fear among allies shows nato is eroding. and a foreign-policy expert for the african institute in berlin and the former state department official. he says nato focused for too long on threats from the east and south and failed to take seriously the threat from within. , youe start out by asking wrote before the summit t

a lot of u.s. manufacturers and u.s. industries that are part of donald trump's constituencies that he is time to protect with these tariffs are getting caught up in this. they're losing their supply chain and not able to source key inputs. they will have the prices go up and the same is going to happen from china, to the extent that chinese users are sourcing from united states will have to look for other sources for their inputs. that is not going to help the u.s. exporters. appreciate your time with us. former deputy assistant secretary with the u.s. department of commerce. both time zones no doubt waiting for the clock to hit midnight. still ahead this hour, asia-pacific earnings are down in contrast with projec tions for the company. we will be unpacking that data. david: up next, we look at oil following the surprise increase. we look at the prospects next. this is bloomberg. ♪ haidi: let's head over to the oil patch where prices are at a low following an american stockpile at the same time saudi arabia lowering

and the u.s. and canada and back but from a company perspective those are relatively minor when it comes to the export of primary metals, the increase in midwest premium more than offset the tariff increase. >> on this issue of your linkages to rusal, there's been a suggestion that the u.s. treasury department is considering some sanctions relief for rusal would that be a relief for you >> would be a relief for the total market there's no question that the uncertainty about the rusal situation has impact on the whole confidence of the industry we saw a certain increase in aluminum parts when the sanctions were being -- or the planned sanctions were introduced to get rid of that uncertainty would be for the benefit for the producers as well as consumers of aluminum. >> that's all we have time for thank you very much for joining us today that's eivind kallevil >>> still to come, eu officials head to washington for last ditch talks aimed at avoiding further trade disputes with the u.s. more for you a

u.s. products including lobster after the fact that immediately this that the u.s. imposed duties on billions of dollars in chinese imports also coming out. authorities say time is running out for twelve boys trapped inside a thai cave more rain is coming and rescuers occleve to act fast. but the world cup quarter finals kick off today will take you to oregon where i wear an entire country is curing up their match against friends expectations are high as it is passion for the game. and. i'm sara harman welcome to the show it's good to have you with us china has taken its first shots against u.s. goods and what it calls quote the largest trade war in economic history beijing has responded immediately to new u.s. tariffs by imposing its own and says they're already in effect the u.s. levies affects some eight hundred chinese products we're talking cars planes hard drives to the tune of about thirty four billion u.s. dollars meanwhile china is for talent or tariffs target u.s. agricultural pr

u.s. what does this realignment this readjusting look like well one of the big questions is for example in how far paragraph five off the nato atlantic. treaty is still in effect and in this respect we have a little bit of a reality check because when we had the attacks of september eleventh nato was listen it was a big blow to you know the real meaning off you know what they stand for and still knowing that this article might not have. not have the same meaning to trump as it had before to all the other u.s. presidents is something the europeans have to think about and all of the not not to members also have to keep in mind so they have to be more more. more reflective with respect what is the long term strategy of nato but also how much money are they are willing to put into their own defense not a lot of fundamental questions underpinning the summit of course for europe and for the u.s. nicole which is going to remind our viewers now what our top story is u.s. president donald trump has

the u.s. car industry stands up to trump's tariffs in washington. workers from america's biggest car makers come out in force to protest the multibillion dollar judy's saying that jobs could be on the line also coming up italy's new government is taking a tough stance on migration but we meet small business owners with migrant backgrounds who are thriving. i'm daniel winter and this is your business update there were protests in washington as the u.s. commerce department launched hearings into import duties that's import duties on cars and here's why trump's tariffs don't just affect imported cars but vehicles made in the usa too because his measures put a levy on parts as well let's look at two cars honda civic an l d q five the compact car today costs just over seventeen thousand dollars but see what happens when we slap on trump's judy's the price shoots up by almost one thousand seven hundred dollars the luxury s.u.v. comes off even worse a price increase of almost nine thousand either the

you have to put tariffs on u.s. goods are limited because the u.s. only exports goods in the amount of around one hundred thirty billion dollars to china but china does have a whole lot of other options for example they could start not buying so many u.s. treasuries and the more then american companies who produce and shiners or was not considered to be imports there could be a stricter regulations there could be texas or there could be all kinds of possibilities for china to make their life for u.s. corporations not that easy in the future and staying on this story don charles hardline stance is having an effect on the psalmist so to the industry can you tell us more on that well on july first of pfizer one of the biggest pharmaceutical companies in the country increased prices for the dozen dozens of drugs and on monday u.s. president donald trump criticised those steps sharply and now on tuesday there was a meeting between the c.e.o. of pfizer and donald trump and now on wednesday five are decided at least for now to pull back those price increase

and he says u.s. president trump could spell out the obama gets to put this concrete fear among allies shows that nato is eroding and finally we're very pleased to have with us tyson barker he's a foreign policy expert for the aspen institute here in berlin and he's a former state department official he says nato focused for too long on threats from the east of the south and failed to take seriously the threat from within. so let me start out by asking you cloudy in my your you wrote just before the summit that europe's security is at stake thereby mirroring europeans fear that the long standing u.s. security guarantees for europe are perhaps fraying but despite trump's aggressive rhetoric he did sign the joint statement by the nato members so would you say the worrying here in europe was perhaps a little bit unnecessary. i think in the end this summit went oh it's better than we sold it it's not yet over because i think we have to wait for the meeting with president putin and then be comparably do a

because the u.s. commerce department maintains that china mobile which has around nine hundred million customers worldwide poses a national security threat it's applied the same term to other chinese telecoms firms including. which is accused of doing business with north korea and iran after already having violated sanctions. while way which the united states accuses of trying to spy on american people the backdrop to all of this at tit for tat terrorist spot between the united states and china that's showing no signs of letting up a far cry from the relationship of the world's top to connally's heart when china mobile first applied to operate in the united states back in twenty eleven. of the wall street where trading early ahead of the fourth of july celebrations tomorrow friday is going to be an even bigger day. before the storm before those tariffs from both sides the for the u.s. and china hit the trade certainly remains all the rage here on wall street and it looked like the calm before the stor

that it was the summit of the u.s. sitting u.s. president. to the russian president when we just looked to the first reactions after this summit with republican senators criticizing the u.s. president sent out a flake for example said that it was very shameful for war that he saw in helsinki another senator who is not always very critical of the president senator graham said that it was a missed opportunity that it was a sign of weakness all right now let's get the russian perspective from amalie what will they remember this summer for. i think from the russian point of view earlier on before this meeting there was always this disconnect between the way the russians saw trump's behavior and almost trumps friendship towards russia and also the and then the way they saw the trump administration acting towards russia you know hitting the country with sanctions. publishing a national security policy where russia is placed as the adversary as an adversary of the u.s. and this will be seen i think as a turning point you know where trump really has

the u.s. government will let the company do business with the u.s. again but only for a month. and a russian reform economists may like but older russians may not get ready to work a little longer. it's time for business on the w. ho you don't hear us welcome german media are reporting the u.s. ambassador to germany has offered to german car makers a solution to the ongoing tariff dispute it would imply both the us and the e.u. completely eliminating import tariffs for vehicles making it happen would require significant changes to existing policies but it's an unusual option earlier today german chancellor angela merkel expressed her concern about possible tariffs for the country's crucial auto industry. get it right now we're witnessing something felt which we've always considered a constant namely the role of multilateral organizations we now have tariffs on a limb in yemen steel and we have a far more serious issue to levees be raised on cars imported to the u.s. . involved with and ladies and gentlemen this has the traits of a trade conflict i'm not ready to call it anythin

lawmakers fear the u.s. tyrus will encourage major producers like china to send their seal to the e.u. instead could leave. which may destabilize the steel industry there is a lot of steel on global markets at the moment primarily due to chinese overproduction china makes almost as much role steel as the rest of the world combined quarters will stay in place for a maximum of two hundred days. let's bring in our financial correspondent only vance and frankfurt only trump tower of policies have a ripple effect across markets quoters the right way. it's protectionism by a different name you know they're taking a three year average and of steel imports go over that three year average then boom you have tariffs slapped on it and you know with the customer side you have a certain amount of first come first serve there when the amount imported exceeds the three year average so presumably you might have some very unfair treatment of the people who are first in line get no tariffs and the people who come after that t

u.s. -- form the its u.s. sales chief saying their vehicles are built in the u.s. and that gives them some level of protection from tariffs. what else have we heard? >> ford has that advantage. all of their f series models are while gm makes. some of their big trucks in both mexico and canada. fiat chrysler makes a big ram pickups in mexico. they are going to move that back to michigan. definitely big money makers for all of the other automakers do come from overseas. it is a lot of aluminum and a lot of steel they're already paying tariffs on. if auto parts get taxed as well that's going to affect everyone. scarlet: i need to ask you about tesla as well. than shares tumbling more seven point 5% today. the biggest decline since march. what's going on here? yesterday all the news was on how it had achieved its production target of more than 5000 model threes per month. >> 5000 week. the idea was they could gradually get there and get to 5000 and keep moving on then this could become potentially profitable company. they have never made a full-year profit in 15 years

u.s. markets be coupled from the rest of the world? >> the u.s. rate looks like a better place to be than the rest of the world. >> there is one strong island those performing well. u.s. economyhe continues to do well and it can be isolated as long as the shocks are not massive. >> we are still looking at an economy driven by the consumer. when we think about the economic health of the u.s., still strong. the consumer remain strong. >> the u.s. will ultimately not be coupled into part of a global economy. >> you are going to see some broad weakening in the u.s. high-yield bond market. people continue to say the economic are solid. trade gets out of control, which i don't think it will. i think there will be a resolution. if a mistake is made, and you are playing high-stakes right now. if a mistake is made, then this is going to get ugly for markets. miserable is pretty a miller and from dallas texas is the cofounder and cosi a.l. pilot capital management. talk about this concept of the oup

the u.s. pulled out of the deal in may. the deal is a multinational treaty. that is why states are obligated to ensure its arrival. if this treaty can't be of help, it doesn't hurt the interest of iran but would be damaging to peace in the middle east. >> president trump has lost another leading figure. scott pruitt quit the environmental protection agency after revelations about overs ending. at least 170 democrats and four republicans have called for his resignation. over frequent travel to his homes they. day onnews 24 hours a air and on twitter. our by more than 2700 journalists and in more than 120 countries. this is bloomberg. returnn: u.s. stocks from the holiday break with a strong advance led by tech shares. even as traders break for friday jobs report and the implication of trade tariffs. we are joined by bloomberg cross reporters hereupon check. we will keep hiking rates if we are nervous about trade. how do they respond to this? >> optimism really reigned over the day. but the majo

of the u.s., and the rate differential is moving in favor of the u.s. as well. i guess the currency folks would look at that sort of thing and probably point to ongoing dollar strength. .4on't know what our forecast is for the euro-dollar, but based on growth differentials, the u.s. dollar looks to be strong relative to europe. argument that a full-blown trade war actually supports a stronger dollar makes sense to you? um, that's a tricky one, right? because if we go to a world where investors and traders want to do you risk, then -- d e-risk, then they would go into u.s. treasuries. that is the world global risk-free asset. and 2009 where the financial crisis started in the u.s., that was a big boost to the dollar and treasury prices. i would not necessarily rule that out, unless something changed that moves the markets away from a perception that the u.s. treasury was a risk-free asset. if we go down a risk for -- risk year path, i guess it could help the dollar and help treasuries. haidi: i wa

and the u.s.,ina the biggest buyers of oil in the world, the biggest economies in the world, slowing down as a result to the trade war in the long run, it will obviously affect demand for oil. that is the biggest concern at the moment. but you have other factors. less producing a lot because of the conflict. iran facing u.s. sanctions. on both sides, on the bearish side and the bullish side, you have lots to look at. yvonne: what about for opec? the outlook for next year. how does that change the picture for oil? >> that has been an ongoing concern for opec. how much shale is affecting the balance of the market. on the one side, they are cutting their production, now boosting a little to offset declining demand, declining production in venezuela and iran. the thing time, you have u.s. producers pumping oil at a record rate. so it affects their decision going forward. they have to be very cautious not to cause the oversupply we had a few years ago. ramy: how will all of these variables affect opec'

can u.s. markets decouple from the rest of the world? >> the u.s. looks like a better place to be than the rest of the world right now. >> we are the one strong island performing well, and the rest of global growth is slipping. within the u.s. economy continues to do well. it could be isolated as long as the shocks are not massive. >> we are looking at economy that is driven by the consumer. when you think about it you can him at health of the u.s., still very strong. the consumer remains strong. >> the u.s., ultimately, will not be able to decouple. it is part of the global economy. even president trump will work that out. >> you are starting to see weakening pretty broadly and the u.s. high-yield bond market. even though people continue to say that the economics are solid. >> it depends. if this trade battle gets out of control, which i do not think it will -- i think there will be a resolution -- that if a mistake is made and you are playing a very high-stakes game right now, if a mistake is made that it will get very ugly for market. jonathan: j

u.s. will be the biggest victim. tom mackenzie joins us from beijing for more. apparently we are in a trade war. what has been said over the weekend? tom: reaction from the state media but also have a business summit that was held in beijing. we heard from the vice commerce minister who was instrumental in the talks between the u.s. and china when it comes to trade. he took to the stage and called on businesses to push back against this trade action from the u.s. and said he hoped the business community would uphold globalization and the multilateral trading order. critics point out china's claims that it supports globalization do not stand up to scrutiny but those were the comments from the vice commerce minister. we followed him out of the meeting and try to ask if talks were going on between him and his u.s. counterpart because that would be key. he remained tightlipped, so we don't know if there are any official or unofficial talks. we also heard from one of china's biggest industriali

he calls on the u.s. and european union to drop all tariffs and barriers and subsidies but he doubts the eu will agree. today, the president meets with the commission. they're trying to head off a trade war. trump called new mexico's president elect and said that a successful negotiation for now after must be done quickly. if not, trump said he must go in different route that will be more profitable for the u.s. the wildfires in greece has risen to 74. the fire force thousands of residents to flee. and the architect of fiat chrysler's dramatic turnaround has died. he was 66 years old. took over in 2004 and spearheaded the purchase of chrysler. he was replaced as ceo over the weekend. declined suddenly because of convocation from shoulder surgery. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. this is bloomberg. vonnie: thank you. extensive taking an at his legacy in the next hour. in the meantime, auto is on a trade collision course. .isapp

waree the u.s. and eu trade the encouraging. >> the question is, he's already signaled that they are going to start weaning the euro zone economy off of stimulus. and, in fact, even though there is a trade war, it's not expected to stop the european central bank from confirming what they are going to do. that they will and bond purchases in december and rate hikes will come after summer of next year. and on that point, i want to quickly call up a chart for us so we can take a look at what mario draghi is looking at. he is looking at inflation and growth. and here it is. that's where the ecb wants to see it. did come back in the first quarter. bloomberg economics feels there is enough momentum there for the economy. has said.at the ecb the biggest risk of growth isn't the terrace itself, it's what i can do to business and consumer confidence. the press conference afterwards, mario draghi is going to get so many questions on that front. you see an impact on trade, and move ahead with stimulus while th

defense budget and the u.s. is not a date to because they find they do that wonderful best because it's part of their national interest so i think we should be very clear about that having said that there is indeed and this year of having and the question often showing is as old as nato is every american president actually talked about but in showing and called europeans to do more for that defense rightly so the europeans have forgotten all the time. they didn't pay enough attention to their own defense forces to their own defense system so he is right in claiming more. and more european commitment for defense germany has actually stepped up its commitment since two thousand and fourteen the defense budget is growing so we had some thirty two billions into sold for. we are now searching eight something billions in two thousand and eighteen and it's going to grow the problem is about the long term development so far is not really in the plans so we have a very strong political rhetorical commitment by the chance

they bring u.s.-china trade war. u.s. restrictions on korean imports could also hurt the labor market. caution for bank of korea as they go into the meeting, but maybe a little reassurance because the unemployment rate is expected to fall back to 3.8%. paul: we have got a number of things to watch out of japan. ppi, core machine orders, a number of other things. what are you watching the most? kathleen: people consider them secondary indexes, but as japan tries to see if it is going to jump back from last quarter -- i am not sure. i like machine orders, but i put my money on producer prices. let's take a look at another very simple chart. what you see is japan producer prices year-over-year. they were pretty negative back in 2015-2016. have climbed out of the hole. not as important as the consumer price index, but you see an uptrend as the yen weakens against the dollar. machine orders, i am not so worried about them. if they are supposed to fall 4.2% in may but supposed to be up 9.7% year-over-year. a lot of up and down

u.s. president donald trump and the european union hail a new partnership on train. former cricket start and run congress set to become pox on the next prime minister following early results in pakistan the election but the opposition has alleged that vote rigging has taken place. had previously called the european union a phone when it comes to trade after talks with the european commission president. trump now says the two have agreed to work towards it is zero tariffs and zero subsidies. also coming up several parts of the world are experiencing extreme weather forest fires caused by high temperatures in the arctic circle severe storms in the u.s. we'll take a look at what might be behind these bad weather effects and we have a special report from greece where our correspondents following the rescue crews helping survivors of the wildfires there. like. that unrelenting three day yesterday when the fires broke out states are desperately searching for the then came the search for bodies.

the u.s. wants countries to boy quote really you know oil is part of stronger international sanctions the president has done rouhani has appeared to threaten oil exports from other middle eastern countries if the u.s. pushes ahead as. it is incorrect in unwise to imagine that somebody or producer countries will be able to export their surplus oil and iran would not be able to export its oil now really and fish also have threatened to disrupt oil shipments in the past to do so they would target the straits of hormuz that's a major shipping lane but it's also a small stretch of water between iran to the north and oman on the ribbon peninsula to the so that it's not always point that are just fifty five kilometers between the two pieces of land twenty percent of the world's oil passes through here but i don't think iran will ever need to really exercise this threat we have to remember iran is not the only country that is upset with the u.s. pressure on opec all that idea of the oil exports not co

mediator between the u.s. the between israel and iran so maybe what has just happened of course we don't know exactly all right alexander want to go to you because this is all where it's happening where you are because seventy two hours after the american department of justice it's used russia criminally acting against the democratic process in the u.s. the president called for closer cooperation with russia. well and from my perspective we have to say that to this summit the hells and keane has not served us interest was a full wing some of russian experts i normally talk to on twitter and they were quite outspoken about the triumphs performance of this summit saying that it was a disgrace no it's worse than an american president and we really have to say that it was unbelievable how putin was able standing next to the u.s. presidents to once again deny that russia has interfered in the you asked election although all u.s. intelligence agency are convinced that that was the case they are saying that they have

if the u.s. says this will interfere with the economy, that will impact sentiment. get that is when you happening, and that is negative for the dollar. guy: thank you very much indeed. you will stick around. still ahead, european automakers on the move. looking for a deal globally to reduce tariffs. the president of the u.s. has made it clear he likes bilateral transactions rather than multilateral transactions. join bloomberg television, coveraged tictoc for of the boston pops fireworks spectacular 8:00 p.m. eastern time on bloomberg. this is bloomberg. ♪ s bloomberg. ♪ the hour.nutes past this is "bloomberg daybreak: americas." automakers on the move following a report the european union is considering talks on tariffs, cutting deals between the world's take car exporters. -- big car exporters. oliver?d this work, cap would eu globally coordination tariffs when it comes to the auto sector? >> it is a complicated question. the automakers have told us very little on this. you would need a coo

that means u.s. companies will have to raise prices and if they sell less, they will have to let go of people and/or they will not raise prices and their margins will drop and they may have to go into a loss and then they will really have to go after -- let go of people. the unintended consequences are so vast, and that is what i would ask people to keep their eye on, not that there is 20% steel. or 25% on cars or it is the ripple effect across the board that it will have. those are the unintended consequences and david, we will start hearing about those a lot sooner than we see the numbers in our gdp. we are going to hear in the earnings calls, going to hear companies talk about why their earnings are down. it is because of tariffs, because of steel. we are already beginning to feel the hit and it will take maybe another quarter or so until it hits the gdp. david: carless, thank you so much. that is carlos gutierrez. up next, the man who is responsible for china. we will talk with brookings' david d

companies who bore me the u.s. measures are attacking global supply in the value chains to put it simply not us he's opening fire on the entire world including itself china suspects this is about far more than trade and that the u.s. is trying to thwart its ambitions of becoming a high tech manufacturer to challenge one day the dominance of the united states. also what's thought to be behind this is the u.s. wanting to punish china for bad trade practices for the stealing of intellectual property well in answer to those allegations leaker chang the chinese premier has now weighed into the round he has been attending a conference in eastern europe in bulgaria where he has said that all foreign companies are welcome to do business in china that their intellectual property will be respected and their rights will be defended just he says as any other chinese company would also have the same rights to her right to rob a bribe then beijing rob thank you now the u.s. state might pompei or as arrived in north korea to disc

u.s. election that cost down on the findings on the u.s. intelligence agencies even members of his own republican party have slammed that. you can't believe it yourself from the level of a snake and that's where i consider whatever food he took the word of the k.g.b. . over the men and women of the cia. the white house is now struggling to explain why trump has aligned himself so closely with the russian leader we'll have analysis of that move for you in just a couple of minutes. also coming up a hero's welcome in paris for the world cup champions hundreds of thousands of families turning out to see neighborhoods that have victory parade down the shoals of easy each member of the chain will be receiving france's highest civilian honor . hello and welcome my name is christopher spring a good to have you with us. president trump has triggered a wave of condemnation in the united states after openly favoring the russian president over his own intelligence agencies after their first ever summi

with the u.s. entry into world war ii, marshall worked to insure that this teaching philosophy was adopted by other army schools and training sites, he was determined after going through their training, u.s. soldiers would be able to overcome any challenges they encountered on the battlefield. his experiences during world war i taught him that insuring soldiers were adequately trained soenl one part of preparedness. soldiers also needed to be properly outfided and equipped for their duty. since many of the soldiers sailing with the first division for france only received their rifles prior to boarding the train, marshall recognized that the training they had received was only marginally helpful and would have to repeated now they had their rifles. had the personnel been available for the machine gun and 37-millimeter units that marshall was organizing on the voyage to france they would have been completely ineffective without the necessary equipment. the inability of the u.s. army to acquire or pro

we're going to the u.s. and europe in 2020. whatever the u.s. implications are, we will take into consideration. react tohave to anything from a production side. tom m.: do you get any sense that your investments in the rmb d center couldr& be curtailed by chinese investment in the u.s.? i didn't get any indications in this area and i'm not so much afraid of it. i believe in the global economy, global teams and global products. solutionave to find a and the nations will have to find a solution to keep that going. tom m.: it sounds like there are no significant changes to your strategy as a result? carsten: our strategy is exactly the same. tom m.: do you get any sense that the reform moves in china around the auto sector may be delayed because of these trade tensions? carsten: i don't see this for now. there are no indications are no indications or evidence toward this direction. perspective, byton i'm not worrying too much about it. market,ere, this is our we are producing here, and we have a lot of local r&d here. very recent news that china i

well among the u.s. imports likely on china's dollar for dollar hit list are cars as well as agricultural goods like soybeans for example and lobster lovers can find themselves in hot water. a lot of lobster from the u.s. weighing around two and a half kilograms costs approximately five hundred yuan or seventy five dollars at seafood markets in beijing american lobsters have long had a reputation in china for their size and the high quality of their meat but chinese customers who enjoy this delicacy are about to feel a need because the chinese government has threatened to slap an additional twenty five percent import duty on this luxury menu item chinese wholesalers who import these cross stations will have to work out how to live with the high tariffs it was a good deal. for or you don't know well there's nothing much we can do if there's a trade war or we can do is adjust their supply chain here depending on the size of price increases. if the chinese government follows through with its threats the u.s

the u.s. imposing $34 billion in tariffs and china saying they have countermeasures in place, stocks are pretty much unchanged. a lot of this trade war was already priced in. you can see the bloomberg dollar 1176.pretty much at i'm not sure if that is the exact way we should be looking at it. euro-dollar, 1.1703. u.s. jobs data later on. shares in thyssenkrupp trading up after the chief executive resigned amid growing shareholder backlash. we spoke to him on monday about the renegotiated deal he was about to create. thyssenkrupp gaining 2.4%. coming up, we have an all-star lineup. we talk trade war and risk with british businessman jim mullen. later, an exclusive interview with the german defense minister ahead of next week's nato summit. herro's viewavid on the markets. go to tv on your terminal and click on the ask a guest button. let's get to the bloomberg first word news. sebastian: prime minister theresa may's team is set to finalize the post-brexit trade plan at a meeting at checker

the u.s. president said the move could lead the u.s. to hit china with even more terrorists. -- more tariffs. vladimir putin wants to give donald something to boast about when the two meet. they are negotiating to strike some deals. at the top of the list is iran's role in syria. and british prime minister theresa may has organized the brexit showdown with a cabinet. they are due to finalize the blueprint for its relationship with the eu after leaving the block. regulationse trade to be close to those of the european union, but seven pro brexit ministers want her to terra the plans. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. david: thanks so much. we are about one hour now from the u.s. jobs report, and economists expect 195,000 jobs added in june. the unemployment rate probably stated 3.8%. still with us is jim o'sullivan of high frequency economics, ranked the most accurate nonfarm payrolls forecaster on the

driven by the strong u.s. dollar. that will lead in to the u.s. election, when a trade deal is struck. em does pretty well, including japan. in the context of the asia-pacific, we are overweight japan. one, we see value there, compression down to 12 times earnings. earnings revisions are resilient, relative to the rest of the region. this provides some upside for japan to the rest of the region. if the u.s. dollar moves up, that is a positive win for overall earnings in japan. haidi: i want to move away from japan to china. had the effect of the stronger u.s. dollar overnight. in terms of the lack of reaction you are seeing from the pboc, president surprised you? that surprised you? 7.3. is around >> there is a lot of question used as arnb being policy tool to soften the blow of a potential trade war with the united states. i don't see that at all. if we look at the trade weighted index of the yuan, it is right bang on its two-year average. this does not indicate we are seeing much in the wake of a change in policy. the move up and down in the dol

for staying with the u.s. president he's actually arrived in brussels what's likely to be a contentious nato summit the gathering comes as trump stands firm on his claim that nato partners do not pay enough to defend for defense compared to the u.s. now he's vowed that european countries won't take advantage of america. i think we'll work something out. a little but we will work it out. for. the u.k. . situation. so i have. i have the u.k. . phone frankly maybe you. would think well ahead of the some of the european council president said the u.s. ought to remember who its friends all the america up to shit your advice after all you don't have the money and you europe spend them all on your defense because every one of spec lied that if the well prepared and they creeped. money is important about genuine solidarity of a potent well our diplomatic editor james bay thousand more on what we can expect from the summit. president trump arriving in brussels in eighteen months in office he's not hidden his disdain fo

risk theand growing u.s. would exit from the global beding system would disastrous. >> where does china go from here? they cannot match dollar for tariffs. the >> china cannot match dollar for dollar. i expect to be some compromise over the coming months. around access restriction. you can offer quite a lot. on don't necessarily deliver everything over six or 12 month period. i would expect to see on the table this make those initiatives more critical or china? a risk for >> those initiatives will become more critical as a result of a war. africa, asia, middle east, already account for nearly half china's total exports. they benefit from a trading system. to remain committed to the survival of that global trading system. time, china has had growing concerns that market the u.s.to itpanies like that find difficult to sell product into the united states. they will begin it look at markets closer to home. asia, africa, are the middle east. this is alsoof oftributing to concerns chinese debt. getting worse. rader

of course the u.s. is relative standing in the region -- the u.s.'s relative standing in the region has lessened. peaceld become a zone of where one half remains a strong alliance partner with the united states while the other half enjoys friendly relations with it. north korean officials have been known even to propose a u.s. dprk mutual security treaty to be followed by a marshall plan to rehabilitate the north korean economy. the argument goes like this, you and japan were bitter enemies at one time, today you are the closest of allies, and japan, thanks to your support, is a economic powerhouse. why can't we be as well? unrealistic, such statements are said in earnest and should be listened to. leaders,face three donald trump, moon jae-in, and kim jong-un, who have -- seemingly out of nowhere, and unforeseen electoral victory in the united states and the impeachment in south korea, and the death of a leader in north korea. leaders are willing to take new risks, present a unique opportunity, the first and 65 years, to bring about a korean free of

and u.s. news and world report reported that during the a bowl epidemic in west africa the u.s. at four thousand troops to help eradicate the disease ultimately one ended up passing it caused riots and local communities and taken all together bush in the u.s. news and world report that clearly shows that the militarization of africa is a major u.s. foreign policy objective and i find that horrible this country's already been through one colonization and now we're militaristically colonizing them which i think is even more disgusting and our. to repeat such blatant mistakes of the past oh it's terrible it's like to me it's like you know let the countries in africa find their own way i think they've had enough colonialism you know they've had enough foreign military presence on their shores throughout or i don't know history . but i think let them do their thing you know tre do that kind of thing great you know if they ask you for help come in and help but other than that hands off i don't i cannot fathom as a us citizen why my tax dollars are going to put up a military base in co

u.s. was produced by the u.s. president's former campaign manager paul manna forces in court facing trial for tax evasion and bank fraud charges were bought by special counsel robert miller is investigating alleged collusion between russia and the trump campaign in the two thousand and sixteen presidential election. and zimbabwean civil society groups is seeking a court order to force the electoral commission to publish results from all polling stations results have been trickling in up to monday's historic vote since robert mugabe was ousted both current president and the opposition leader nelson chamisa say they are confident of victory we're going to bring you the latest from zimbabwe and the news hour i'll have that for you in about twenty five minutes time do join me then but coming up now it's inside story. reaching out to teheran donald trump says he's ready to meet iran's president any time and with no preconditions so what's behind this sudden off and how will trump and gauge iran

for the u.s. is accused spain of dumping selling its products too cheaply in the us and outprice in california olives trump says he's just hoping american farmers. when you know what the u.s. is saying is we will impose tariffs on all products that provide competition to american products and there are simple reasons why we are a competitor we produce more cheaply more healthily in greater quantities and with more for right even californians a little bit more about luckily for me i know. these new measures that were threat to the european agricultural policy in general the u.s. government has criticized e.u. subsidies of enabling spanish farmers to sell below a fair value french and german are cultural products could also end up in the firing line. set the ground up with the attack on the common agricultural policy as an attack on a cornerstone of the e.u. would pick it up trump is looking to play europe apart with this behavior but. the i mean that retro. brussels has already threatened counterme

and on wall street and our u.s. tech companies paying their fair share in the u.s. . well u.s. tech companies aren't notorious for not paying too many texas even before u.s. president donald trump started his tax reform earlier this year a lot of the u.s. tech companies paid far less corporate taxes then the overall demanded thirty five percent and quite often they would pay less then twenty percent or one of the main reasons for that is also when it comes to ensure lecture lee property rights a lot of the tech companies actually list those. rights somewhere in cheap takes countries and therefore they can avoid higher takes that there were there were also supposed to pay here in the united states so do american tech companies pay taxes here in the u.s. sure there do but quite often they pay far less taxes than we've seen it in a lot of other areas by the way the same especially when it comes to intellectual property rights and it's true for the pharmaceutical industry they're also notorious for paying a lot of texas so yes u.s. technology companies pay their share but less than

so for the u.s. options, i think there's a question, is an effective sanctions regime necessary for the united states pursue whatever this goal actually is. what is the mood among european officials, what is the mood, what is the reaction? i know was just reported that blocking mechanisms were approved to attempt to protect european companies from u.s. sanctions snapping back. what is the mood, how effective will european pushing back against this, how effective is the united states going to be in actually ramming these through and how will that be felt in iran. and when you hear from kelsey and rather on the impact inside of iran. >> you think the policy community here in washington has to be very careful not to underestimate just how upset the europeans, particularly the british, french and the germans are over the u.s. move to reimpose sanctions. one thing that i think became abundantly clear in the manner in which trump pulled out of the deal on may reimpose and all sanctions when there was no le

u.s. lawmakers after failing to condemn flatten or -- vladimir putin. brexit turmoil. theresa may escapes defeat on her customs bill by three votes. member of her government has reportedly resigned. shares helmet after a week of expected subscriber growth. good morning. "bloomberg daybreak: europe." we are up 9.2 of 1%, a little bit of calm and the market as there.ot to go disappointment from netflix. waiting for jerome powell. we are in a holding pattern. not so for new zealand. up .8 of a percent. it has been heavily sold ahead of the numbers but it got a boost from the rising inflation picture. gainer,leading inflation and its fastest pace since 2011. wti, we put that in there, also looking calm. $68 a barrel down by 4% in yesterday's session. very near that three-week low right now. dropping prices for various agricultural products, metal under pressure but talk of the u.s. tapping their strategic reserves. and watching inventory data later on. there is a lot in the mix. let's talk abo

the u.s. secretary of state is in north korea to discuss the country's plans to dismantle its nuclear program it's his first visit to pyongyang since the historic summit last month between president truong and the north korean leader kim jong un also discussed the remains of u.s. troops missing from the korean war on his two day visit. protesters have been rallying in the south korean capital seoul to protest against a court's refusal to issue an arrest warrant for the chairman of korean airlines among those demonstrating were allies staff want young hota stepped down cho is under investigation for embezzlement and tax evasion but he judged on thursday will the charges were open to disputes and the coolness guarantee his right to defense. at least two hundred people have been killed in an escalating conflict in central nigeria over fur thailand hundreds have been forced to flee their homes as indigenous farmers battle cattle herders a growing population climate change and a scarcity of third o