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tv   Bloomberg Daybreak Asia  Bloomberg  June 27, 2019 7:00pm-9:00pm EDT

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mark: paul: we are under an hour away from the market open in japan and australia. shery: i'm shery ahn in new york. sophie: and i'm sophie kamaruddin. welcome to "bloomberg daybreak: asia." paul: our top stories this friday -- trade tensions and geopolitics dominate the g20 in osaka. leaders meet with long-standing relationships shaken up by president trump. in the latest fed stress test,
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all passed, deutsche the only surprise. new problems for boeing. a new fault is found on the 737 max 8. an issue said to be on other claims of the fleet. shery: today's big story, between's meeting president trump and xi jinping will happen without preconditions. yvonne man is in osaka. it seems everything is on the negotiating table, but everyone we speak to don't have high hopes of a breakthrough. yvonne: some are saying this is of what was said, a ande truce between japan china. a lot of doubts that perhaps things could be status quo.
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the wall street journal yesterday reporting china is demanding that the u.s. lift its export ban on huawei to reach an agreement. that could be hanging over these negotiations saturday as well. before the big meet between xi and trump, a lot going on in the first day of the g20. you showed pictures of angela merkel just arriving, vladimir putin expected to come down as well. there are questions about the bilaterals today, the key one is president trump and shinzo abe of japan. the prime minister will be meeting with him to discuss trade. japan fixing increasing -- facing increasing pressure from the u.s. to be like china and fix trade imbalances with the u.s.. president trump throwing out the possibility of auto tariffs. that puts abe in a tough
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position, a balance between relying on china as its most export market as well as keeping the u.s. as a strategic i like. this coming off -- strategic ally. shinzo abe off having a bilateral meeting with xi jinping last night. china daily putting it on the front page. they are calling for a new phase in the relationship, which we have seen a thawing in the last couple months, perhaps a byproduct of the u.s. china trade war with xi, extending his hand to other nations for partnership as it faces this trade war with the u.s.. shinzo abe even invited xi jinping on a trip to japan next spring to see the cherry blossoms. we have seen this unexpected cozy relationship between the
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two, which i am sure president trump is watching out for. paul: a lot of the focus has been on the upcoming bilateral between president trump and president xi jinping. before that, president trump will have a meeting with indian prime minister narendra modi. that relationship is getting a bit tense as well, isn't it? yvonne: nine bilateral meetings set for president trump, most of which could turn out to be contentious. you mentioned india. we have seen trump widen his net of targets. india was thrown in earlier this month when president trump scrapped its special trade status and removing it off the list of its duty free program, which india had been a beneficiary of. india retaliated later, raising tariffs on a number of goods. we have seen this escalation in
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tensions between the u.s. and india, where it will be interesting to see if modi and trump can do anything to deescalate the situation. we look forward to these bilats between president trump and angela merkel, president trump and president putin. a lot of questions about a natural gas pipeline running between russia and germany that president trump threatened sanctions on. shery: other pressing issues could come up. iran, we have seen rising geopolitical tension there. these: right, and some of bilats already, president trump's meeting with the perimeter of australia, they discussed -- the prime minister of australia, they discussed issues like iran. adding more sanctions
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to the supreme leader earlier this week. that will be raising a lot of tensions on whether these continued escalations could lead to geopolitical tensions. that is something investors are watching out for as well. north korea will be an issue. we mentioned the australian student that went missing in pyongyang. potentially here at this meeting with president trump and scott morris. a lot of issues on the timing of his disappearance, and whether there is any detainment occurring at this moment as we get closer to a third summit between president trump and kim jong-un. president trump heading to osaka to speak with moon jae-in about this particular issue too. paul: let's see how asian
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markets are positioning in the lead up to the g20 summit. sophie: two-week stocks adding 1/10 of 1%. futures are looking mixed for asia stocks, which will reset some of may's decline. g20 looked to as for how the second half of 2019 may pan out. ago, south korea posted a 50 monthly decline in industrial production for may. down just 2% compared to an expected drop of 1%. the korean chip sector has suffered collateral damage from the trade tensions. ahead of the g20 proceedings, a little bit below 1.08. goldman reckons the currency remains cheap, unlike other safe havens.
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models picking fair value at 95. shery: from an investors perspective of the g20, we turn to a wall street veteran with experience in investment strategy. robert pelosky is cofounder of tpw investment management. great to have you with us. big today for leaders gathering in the world in japan and osaka. given how much has already been priced in, there has been a lot of optimism. although it is not a breakthrough, it could be a thawing of relations between japan and the u.s.. >> the potential disappointment has risen as markets have priced in a kicking the can down the road. we expect an agreement to continue to talk. we think that combined with the likelihood of that easing and -- fed easing and a global growth
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problem will be constructive for the second half of the year. shery: we have not seen that so far. this chart showing stocks have underperformed since january. will the central bank dovish expectations be what changes the game for them in the second half? jay: emerging markets have some upside. we think the real opportunity is in the developed markets outside of the u.s., namely europe and japan, which offer potential for multiple extension -- multiple expansion. those factors are what will drive returns in the second half of the year. paul: jay, do you consider your view to be contrary and? we can see earnings outlooks for the u.s. versus asia.
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europe not on this chart. the outlook for earnings not that rosy. why are you so optimistic? jay: you are right, earnings expectations are limited, but that is true in the united states . most folks are expecting flat to slightly up earnings for the u.s.. earnings growth, we want to see room for multiple expansion and currency depreciation. earnings growth itself in what we call the lower for longer global growth world -- earnings growth itself will not power equities ahead especially, in the united states which is trading 17 times forward earnings versus the rest of the world at 13 times. that valuation different has been grown over the last decade. we are on the cusp of a shift from u.s. assets to the rest of the world, which represents volume. paul: when you are looking for
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value, are there any specific stocks where you see good opportunities? em: tpw, we focus on specifically. her opportunity set -- t markets outside the u.s., mark e and japan. we are quite bullish on china, offers nice earnings. a lot of bad news in the price. we think targets in latin america, particularly brazil, offer opportunity. we like emerging-market technology. one of the things that will continue to happen with china and the u.s. is technology. we are concerned about u.s. technology. emerging-market technology is very attractive to us, because what emerging markets does have is a lot of eyeballs. we are believers in splinternet,
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the internet breaking up between a u.s. and china dominated internet, and places like india and indonesia likely to wall off their own domestic e-commerce space. that opportunity to find emerging pockets of technology, more e-commerce, quite attractive to us. tpw: jay pelosky, investment minister and cofounder and cio. we will have other big tests joining us -- guests joining us, including the singapore trade adbster and dean of the institute. you can get more analysis on the g20 summit on today's edition of daybreak. bloomberg subscribers can go to dayb go on your terminals. let's get the first word news with us consumers. -- with jessica summers.
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jessica: president trump wants to delay the u.s. census after the supreme court rejected his plan to include a question on citizenship. he question could result in undocumented immigrants not the encountered, which results in states with large immigrant populations losing status at electoral college. the iranian ambassador to the u.n. says european powers are failing to prevent his country breaching the 205 nuclear deal -- 2015 nuclear deal. a payment system to circumvent sanctions is ready. european signatories to the 2015 accord opposed president trump's decision to abandon it, but have struggled to find ways to entice to iran. iran.maintain ties to
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boeing on reports it could take six to fix the software glitch on the 737 max. boeing's best-selling jet has been grounded since march. it has emerged pilots flying boeing aircraft reported additional software problems on other boeing jets the sides the max. -- besides the max. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: we will get more from our guest jay pelosky just ahead. we will talk central-bank policy and talk to the fed president. paul: the behemoths of u.s. banking sharing more cash to shareholders after all 18 past their annual stress tests. this is bloomberg. ♪
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paul: we are counting down to asia's first major market open this morning. the g20 is underway and osaka. futures out of japan are looking weaker by one third of 1% after a positive day on u.s. equity markets. shery: this is "bloomberg daybreak: asia." i'm shery on in new york. paul: i'm paul allen in sydney. investors are weighing the latest comments from central banks. the fed likely to cut just rates in july. that san francisco fed president says it is too early to know whether they should cut rates, or by how much. >> the data shows significant weakening, that would call for different action as opposed to the data saying we are slowing. it is too early from my perspective to know whether we should use the tool at all and
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what magnitude we should apply. paul: shift to dovish policy and easier money is creating challenges for allocating capital. jay pelosky has experience in the department. he is cofounder and cio of tpw investment management. jay, you were sketching out earlier a positive outlook for equities. how much of your optimism is based around the fed? jay: i think the fed is likely to cut in the second half of the year. our view is growth will be lower for longer. our focus is on the consumer and service side of the economy, not so much the manufacturing side. we think that has been overstated. unemployment is at a 50 year low. wage gains are above inflation. as long as consumers can spend, developed economies, which are 70% surface and consumption will
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be ok. we expect a lower for longer growth at that keeps central banks involved, particularly the trade uncertainty means more dependence on the consumer, which means central banks cannot allow risk assets to fall dramatically because of the world affect and create a recession. bottom, which we think we are imminent facing, is important. and extension talks between -- extending the talks between the u.s. and china, all of those things, close positioning. bank of america's manager survey said equity managers are the most bearish since the bottom in 2009. that light positioning could position is toward a melt up in risk assets. paul: i'd love to get your opinion on this chart on the bloomberg. it shows haven demand spiking.
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gold, negative debt on the rise. do you think this trade is overcooked in terms of the fed riding to the rescue? jay: i think that is a perfect chart. we have been talking about the likelihood of a big mess in the fixed income markets, particularly the long end of the treasury curve and sovereign debt markets. here is the play -- because of the bearishness on growth, every, analyst in the world has ratespectations for where are going to be at the end of the year. that means we are well-positioned for economic data to be better than expected. the bar has been lowered so much that i believe data will surprise to the upside. we will see the in the economic surprise index, which is in a long run under zero. when that happens, bonds will sell off.
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all of those safe haven trades will get hit hard, because they are super extended. shery: what is the political risk, given how outspoken that president has been in calling child, nottubborn liking the strong dollar. we have continued to see more problems where the central bank could go. actually suspect president trump trim the bombasticon -- to be on the campaign trail. in terms of the global stage, i expect him to be conventional as he seeks reelection. for me, political risk -- if you wanted to worry about political risk, you wouldn't be in risk assets at all. for sure, it has been a mistake on to invest purely or not
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political risk. the president on the world stage will be more of a conventional politician. he wants to be reelected. he understands he cannot afford an additional stock market crash. technology is most exposed to the additional $300 billion of chinese exports to the u.s.. tech is the leading sector in the u.s. equity market. if text gets -- tech gets hit, the stock market crashes and we go into a recession and the president doesn't get elected. paul: an interesting scenario you paint. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪
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shery: bank stocks rallied after the close thursday as investors were impressed with the results of the fed stress test. let's get the details from our
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bloomberg investment banking reporter. the european banks surprised the most. >> deutsche bank came with a pass from the fed. they failed before a couple times. note sent to their employees. the fed said they made a lot of improvements on prior controls. the previous rating on deutsche bank came into a lot of issues with regulators, but today the fed is saying they are seeing improvement in the controls. credit suisse on the other hand has a congenital pass -- a conditional pass, so they have some things to do to show the fed. paul: who were the big winners in the u.s.? >> everyone was expected to pass. j.p. morgan came out with the
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highest payouts. they were already above and the on everyone else. to come in with such a high payoff is a positive thing to investors. then we have bank of america who has caught up to j.p. morgan as well. morgan stanley had a really great sign. morgan stanley had the biggest since the 2000 a crisis. james gorman said they can increase payouts percent, even with deploying capital into a deal. -- 20%, even with deploying capital into a deal. all around a pretty good sign. paul: let's get a latest check of the business headlines. apple's chief designer officer is leaving the company. later this year he will set of his own independent design company. apple says it will become one of his main clients. he worked at apple for most 30
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years. ceo tim cook describing him as a senior figure in the design world. shery: nike mr. earnings estimates for the first time in seven years. profit came in at $.62 per share, short of the average forecast of $.66. that last happened in the middle of 2012. management is blaming higher overheads. the effective tax rate was 20%, compared to 6% a year ago. shares sank on the news, but recovered in late trade. paul: still to come, a health check on japan's economy as it releases the latest inflation and jobs data. this is bloomberg. ♪
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paul: we have some breaking news coming across the terminal, some data from japan. in lineess rate for may with estimates, 2.4%. ratio 1.6%.t numbers, the year on year figure four july better than expected -- for july better than expected. the estimate was for 1%. there were lower energy costs and lower mobile phone charges
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in the survey period. weak spending was expected to weigh on the result, but coming in line with estimates. yen pretty much unchanged. shery: we will be looking forward in about 20 minutes time. japan industrial production will be coming out. we will bring you lose numbers later on -- you those numbers later on. let's turn to sophie. sophie: s&p global downgraded its outlook to stable after operations seen weakening on materially slowing demand in global handset sales due to apple production cut. inventories for semiconductors and automobiles rose in may. factory output was softer than expected, but a steeper than forecast monthly decline at
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1.7%. let's jump to the terminal for this chart showing you a snapshot illustrating how japan's tech stocks are having a good 2019 despite the trade concerns. the white line outpacing other sectors, up 70% while domestic plays downe domestic the most. utilities the worst performing industry group, hurt by rising fuel costs and global regulation. let's check in on the first word news with jessica summers. jessica: while the g20 begins later friday with trade tensions and iran looming over the discussion. president trump is holding a series of bilateral meetings, first with president putin, then the crown prince of saudi arabia before a head to head with xi jinping of china.
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washington has already played down expectations for a breakthrough in trade talks. meanwhile, president xi jinping is expected to present a string of conditions the u.s. would have to meet in order to diffuse the escalating -- defuse misleading trade tensions --escalating trade tensions. he will request to lift the ban on selling u.s. technology to huawei. president trump says he will impose additional tariffs if talks with xi failed to make progress. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: you are looking at live pictures of president trump speaking with shinzo abe, the prime minister of japan. this is happening at the g20 summit in osaka. president trump just arrived at
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osaka, thevenue in third largest city in japan. the president will be speaking to prime minister abe for a bilateral meeting first. this is happening just about now. that the president will have many more bilaterals, including with the indian prime minister narendra modi. he in fact has nine bilateral discussions. these discussions with prime minister abe very crucial at a time when they are talking about trade, trying to negotiate an fta. president trump talks about slapping tariffs on auto imports, which would not be good for one of its strongest allies, japan. let's discuss the latest developments as we continue to see the president, his daughter ivanka trump and jared kushner walking into the summit venue. let's bring in our bloomberg
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markets anchor yvonne man. we continue to see these live pictures of christian trump and prime minister shinzo abe walking toward --president trump and prime minister shinzo abe walking to the summit venue. how crucial are these talks for both sides? yvonne: it will be high-stakes talks, for sure. this is coming off of a meeting president xi had with shinzo abe the night before, where they displayed a cozier relationship in wanting to develop more free trade. abe inviting president xi to see the cherry blossoms. relationshipof the driven by the fact that the u.s. and china are in the midst of trade tensions.
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this will be key, after the u.s. dropped out of tpp, a dilemma on what to do next. should they engage in bilateral discussions with the u.s.? they were hesitant at first, but they finally agreed to meet earlier this year. we didn't get to see any comprehensive agreement. perhaps something could come out at g20. and japanesent xi prime minister shinzo abe had a bilateral of their own last night. as you described, it was a positive meeting. how is that going to change the dynamic between japan and the u.s. as they count down to their own trade discussions? we are watching those pictures we saw yesterday, those
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handshakes has made it to the front page of a lot of newspapers japan. it is potentially a sign we could see positive vibes heading into these trade negotiations between president xi and trump, here.e could get a truce in terms of what will be entailed in this trade deal, are currencies a factor as well? president trump has criticized countries like china, like europe, for japan for weakening the currency to boost their own economy. perhaps president trump is favoring a weaker dollar policy. whether we get that communicate is also a key question. shery: yvonne mentioned the
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currency issue between these parties. one of the key issues is whether there is a currency caused in the new fta between japan and the u.s.. a weak japanese yen crucial not only for shinzo abe, but the boj's policy in trying to revive their inflation pressure. >> it is certainly in the mix. that is causing problems for mr. trump. he is putting currencies and values at the center of his trade policy. we have seen in sharply increase his rhetoric in the coming weeks. xin he stands with president tomorrow at the g20, it is expected the yuan is part of the trade discussions. president trump accuses them of devaluing the currency to eight exporters. -- aid exporters.
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be it strategic rivals like china or strategic allies like japan are center stage in person trumps trade -- president trump's trade policy. paul: we are seeing both leaders sitting down with their delegations at the g20 meeting in osaka for their bilateral. bilateral and trilateral meetings seem to be the theme. another one is coming up today. one is the trilateral between shinzo abe and indian prime minister narendra modi. what are our expectations there? anpresident trump is pushing alliance,ic trade keeping india within the u.s.
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pacific region. the problem is mr. trump has ramped up his hawkish trade rhetoric also on india. that is found to be a source of ame says -- bound to be source of some disagreement. you have this dance where president trump is talking about india as a key ally , but version of on them in the trade -- brushing up on them in the trade story. shery: whether they can revise president trump's indo pacific strategy. we are talking about nine different bilaterals for president trump. talk about some of the key ones we should be watching. yvonne: it is a busy day for president trump, no doubt.
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you mentioned india. later on, president trump will meet with angela merkel. russian is living with president vladimir putin. there are questions over a natural gas pipeline that runs between russia and germany, which has raised eyebrows from the white house. trump saying he wants to sanction russia over this type of project. a lot of key questions on the europe relationship, this coming at a time when there is a slight for the top eu -- a fight for the top eu jobs. a question on where leadership will go with regard to europe and russia. shery: we watch president trump just speaking. you can see secretary of state
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pompeo, ambassador wilbur ross and secretary lighthizer. we continue to discuss monetary policy at the moment. president trump has been vocal in wanting more than policy coming out of the fed, something he didn't is necessary to spur -- he thinks is necessary to spur growth. impact going to have an on where the trade negotiations go conduct giving we could see if tradesupport there tensions continue? >> it is an interesting question. are sayingalysts central bankers are coming to the rescue of the politicians stoking the trade war. isthe very least, whether it doing something for growth is
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another story, but it is signaling rate cuts. you have the pboc offering committees support to the economy. it is necessary. the fact that central banks are offering this will only embolden the trade hawks to push harder in negotiations. economy the global remains under pressure. to activity and hit to sentiment will only worsen if the trade war is not resolved. that is why there is a feeling the u.s. and china will come to some sort of deal. broader issues of strategic rivalry will not be
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solved soon. thank you to you both. we continue to see these lines coming from osaka, with president trump saying he is talking about trade with prime minister abe, saying "we appreciate japan car company building plans in the u.s. -- plants in the u.s.." this with the backdrop that president trump has been threatening car tariffs in the future and as fta negotiations between the sides continue. more on the g20 coming up. huawei a key sticking point in the talks between president trump and xi jinping. we will speak to the u.s. china business council president craig allen about the talks ahead. this is bloomberg. ♪
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paul: the path to a potential is. china trade truce becoming more tricky with reports of a new list of demands from beijing. our next guest says it is overly optimistic to expect any breakthrough when president trump and xi meet. let's bring in the u.s. china business council president craig allen. thanks for joining us. i don't think anyone is expecting a magical solution to this by the end of the weekend, but can we say they will at least have a nice picture together and things will stop giving with -- stop getting worse? craig: thank you for having me on. the fundamental gaps between the two countries have not disappeared. indeed, chinese positions have grown harder since the addition of huawei to the department of commerce's entity list. i think it would be unrealistic
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to see a gapping of the fundamental differences between the two sides. if there was an agreement not to continue additional tariffs, that would be a step forward. paul: you mentioned those extra companies which are being watched by the u.s.. huawei of course the biggest sticking point of them all. we have a report on bloomberg that some huawei employees have been working on chinese military products -- military projects. craig: there are a good number of ways to look at this. first there is huawei and whether or not they have broken american law. another way to look at it is about technology overall. considerable
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differences in interpretation of the wto, what are the rules of the road for competition , the rules of the road for cooperation? how do you enforce those rules? on top of that, there are cybersecurity concerns with huawei and overall national security concerns on top of that . this is a multidimensional problem which defies quick resolution. shery: in the meantime, you have more people in d.c. where you are, turning into china hawks and wanting this issue to be fundamentally resolved. is there any hope that this can be resolved in the next few months, or could this evolve into want could be -- what could be called an economic iron curtain? problem,th any complex
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the rational way to go about it is to divide it into increment of parts and resolve one at a time. in this case, that would be negotiations 301 initiated about a year ago, focus on a small subset of the issues. those are some cities, state owned enterprises -- some cities, state-owned enterprises, intellectual property rights along with cybersecurity. if the two governments remained focus on that subset of issues, there could be an agreement to benefit both china and the united states. we can get to yes with the political will of leaders. what does this mean for the future relationship of companies that have been doing
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business with both the u.s. and china? we had a former ambassador telling us once supply chains are severed, it will be difficult to restore them. respect have enormous for the ambassador and i agree with him completely. we need to disaggregate the tech community and the rest of trade. ore rest of trade, be it food energy or fashion or services, virtually 90%. i think there is no reason we can't resolve our differences. the key areas of national security concern would be in tech alone. that is important. i argue it is not inevitable we will have a decoupling. if we were to reach an agreement over 301 issues, that would go a long way toward addressing
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concerns on both sides. both sides have commitments to the wto. both sides should meet those commitments to the wto. shery: thank you so much for joining us. that was u.s. china business council president craig allen. breaking news coming out of japan. we are getting industrial production numbers, month on month growing 2.3%. these are the mentoring numbers for the month of may. -- preliminary numbers for the month of may. an expected rise of 1.0%. a huge acceleration from the previous month. year on year, still a contraction, but much smaller than what was originally expected. we will have plenty more ahead on "daybreak: asia." this is bloomberg. ♪
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paul: boeing's problems continue
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to mount. a new 737 max 8 software issue discovered by the faa may take additional three months to fix. pilots out of boeing jets also report issues. the latest issue costs a worrying light ongoing's safety culture. shares falling on the news. how bad is this? >> the thing to think about is the amount of care that gets taken into play before it is allowed into the air. it is five years of testing. the plane is tested for hundreds of hours. every component is tested in detail. you should not have any problems with that plane. to have one problem, as we saw with the original crashes of the 737 max, is a problem. to have problems in two separate systems really compounds the era in a big way -- the error in a
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big way. we have the boeing ceo on a stage saying we will fix this by having an open, transparent culture. the same time, what we know about the details is coming up through stories in the media rather than blowing o -- rather than boeing laying out what has happened. a lot of people have been saying that same thing, but that is not the case. we should not throw the baby out with the bathwater. these automated systems have been around for decades. the airbus 320 was one of the first planes to come up with it in the 1980's. a lot of the things we want out of jets are automated. a pilot's attention is a finite
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resource. if they are spending their time on little things, that could waste their time and make the plane more dangerous. when a pilot's engine is more needed, it will already -- attention is more needed, it will already be exhausted. paul: let's preview the markets in japan, korea, and australia. sophie: futures pointed to a risk obsession. japanese carmakers will be watching closely to avoid japanese tariffs. japanese banks, major regional lenders with annual profits rose an additional 5% if boj takes its negative interest rates policy further. korean chip stocks have been suffering as a result of trade tensions. ditto for automobiles. shery: coming up in the next hour of "daybreak: asia," we
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will be joined by singapore minister in charge of trade relations and the minister in charge of communications and regulation. the market opens next. this is bloomberg. ♪ i don't know why i didn't get screened a long time ago.
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so why didn't we do this earlier? life line screening. the power of prevention. call now to learn more. asia's majors -- major markets are about to open for trade. shery: good morning from new york. welcome to daybreak asia. ♪ yvonne: the g20 is underway. relationships thrown in the air by president trump. all the developments this hour. markets off to a
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mixed start. investors weigh trade hopes with the geopolitical reality. towardsilizes and heads the best month this year. gained 11% in june alone. shery: round two of the group of 20 democrats chasing the white house. 10 more hopefuls take to the stage. we are live in miami. let's get straight to the market action with sophie in hong kong. sophie: we are seeing a risk off tone this morning in tokyo. japanese stocks off. the yen is holding steady. set for a weekly loss. boj bond buying in focus today. also gauging reaction to the latest output data from japan which came through with a monthly gain of 2.2%. holding flat this
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morning. taking a look at what is happening in seoul. it is nudging higher. data from output south korea. a steeper than expected monthly drop in factory production. the korean yuan is nudging firmer this morning as well. let's check in on what's going on below the equator. aussie shares opening to the downside this morning. fairly flat. the aussie dollar is set for the biggest weekly gain since january. upside moves in wellington as well. taking a look at what's going on with cross assets. wti looking study this morning. rent is under pressure. oil headed for the best month since january. crude has gained 11% this month. gold sticking around the 1409 level. the recent rally stalls. boy and suffered the biggest monthly event since june.
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outoin's volatility wiping price swings give the highest level since the crypto bubble in 2018. shery: let's get right to the days big story. the white house says saturday's meeting between president trump will happent xi without preconditions. our anchor is any saw -- osaka. we are seeing vladimir putin of russia arriving at the airport. president will be meeting with president trump this afternoon. quite a packed day for president trump. yvonne: it's going to be a busy day for the president. he does have a bilateral meeting with vladimir putin later on this afternoon. as we wait for prudent to
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arrive, a lot of the questions. whether it's about the relationship between the u.s. and russia, certainly they haven't met since helsinki which raised a lot of eyebrows over this whole meddling into the election. a lot of keep questions on that. we mentioned about the gas pipeline. russia is trying to develop it to germany. president trump has not been happy about that. he is threatening sanctions in order to stop this development. a lot of key questions there. the europeans, even with angela merkel, not too optimistic about this g20. it's a solemn tone here even before she arrived. to be tough to reach consensus when it comes to trade, climate change in particular. france and germany are wanting to include that in some type of communicate here. beforef questions but --
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we have this between president trump and president xi on saturday. paul: as we wait for president plane,o disembark that president trump and shinzo abe are locked in a room with their respective delegations having their first bilateral meeting of the g20. abe didt xi and shinzo have dinner together last night. that relationship is looking quite warm, isn't it? yvonne: yeah. we are seeing this unexpected relationship between japan and china. we mentioned about how it made the front page of the newspaper here in japan. calling it this new era between japan and china. this is president xi's trying to lend a hand to look for more in the facepartners of this u.s.-china trade war. japan seems to be one of their targets here. shinzo abe welcoming president
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xi to visit next bring in japan to see the cherry blossoms as well. they mentioned about free trade. they talked about ip protection yesterday. did not mention about the quality issue. shinzo abe did mention about how hong kong needs to stay open and free in light of the protest we saw in hong kong recently over this controversial extradition bill. there were tough topics that were discussed regarding the geopolitical tensions in the east china sea. it was quite a fruitful discussion. it seems to be quite positive. this of questions on how will play out with president trump and shinzo abe at a time when japan is facing that pressure from the u.s. to fix those trade imbalances. shery: let's not forget the try let's as well. -lats as well. we are expecting president trump to meet with modi from india as
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well. what can we expect to be discussed? especially at a time when we have seen president trump pacificon an indo strategy. yvonne: right. they are pushing for that kind of strategy. we see president trump target even india now in the seoul trade front here. earlier this month, we saw president trump scrapping india's preferential trade status here, removing it off of the list that india has been a key in a fishery of. india retaliated with tariffs on goods. a lot of questions on where that future of this relationship can be. can we deescalate these tensions now between the u.s. as well as india with modi fresh off of that election when? -- win?
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a lot of questions about that relationship. also when it comes to japan. if we could see an fda between the u.s. and japan. shery: every time we have had g20's in the past, it has been interesting to see north korea try to draw attention. we have seen a few missile tests in the past. this will also be an issue that will be addressed between all of these leaders. a very crucial issue as president trump heads to south t president moon. important subject for prime minister abe himself. what can we expect? yvonne: we can expect that this topic will be raised, especially given the timing of it. president trump, as soon as he leaves osaka, he is headed straight to seoul. it is potentially a meeting here to pave the way for a third summit between president trump and kim jong-un. we heard from local media in north korea saying there is a
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deadline, there should be a meeting between trump and kim by the end of this year. a lot of questions about whether that is going to happen. we have seen it with president xi visiting kim jong-un in north korea for the first time just a couple of weeks ago. that was certainly a signal here that china is still very much a big part in this whole north korea situation as well. a lot of questions on that. iran is going to be a big topic as well. will we see a coordinated response out of g20 given the tensions? paul: let's talk about that iran situation. of course, europe is still supporting iran and its stance to some degree. what can we expect when president trump and angela merkel meet? yvonne: right. a lot of questions about this. we saw more sanctions being
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placed onto a ron a couple of days ago by the u.s.. oil markets were roiled by the titan -- heightened geopolitical tensions right now. we have not seen any response or corrugated response from some of these leaders here on what to do next. is there any kind of back channeling that is going on with iran here at the moment to try to diffuse these tensions? some say the more economic sanctions, cyberattacks, despite the u.s. backtracking on military confrontation, is putting the u.s. and around far apart. making it harder for a run to jump on the negotiating table to speak with the white house. we will see what will come out on a run. -- iran. shery: the u.s. has gone at this issue alone. when it comes to north korea, there was an international coalition trying to bring north korea to the table.
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, it hascomes to iran been about unilateral u.s. sanctions while the europeans have tried to keep going. sense, will we see more of a push back by the international community against president trump? could we feel some isolation by the u.s. leader as he faces his allies? yvonne: yeah. it's not just when it comes to iran. you can see the u.s. is becoming more isolated. typically when you take a look at these g summits, the system used to be that you would get a host of leaders, you would have these proper sit-down, it would come up with a scripted communique. you would have discussions about big topics. that has changed under president trump. there are questions about whether this system still works. we have seen, even from the
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european side, that they are not to up be. -- beat. it will be tough to get anything to come out of the g20 here, whether it's on trade or climate change. president trump, even before he boarded the plane, was lashing out on a lot of countries like india and the germans even before these bilateral meetings came about. tenseof questions on how these bilateral meetings are going to be. could bebarring brazil quite heated here including the next couple of days or so. paul: what can we realistically expect to come out of this? all signs point to it to being a noncommittal document. yvonne: if we don't get when it all, that's also an issue. it seems like expectations are
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quite low. is, will we see any trade truce between china and the u.s.? i'm guessing most of the g20 are hoping for no escalation. no breakthrough, most people are expecting. that's the consensus. azeri's 2.0. no further tariffs even though president trump has threatened his plan b of tariffs on $300 billion worth of chinese goods could become a plan a. a lot of questions about what could be part of this deal as well. whether there are preconditions. larry kudlow saying there are none leading up to this meeting on saturday. we have seen the wall street journal reporting about how china is demanding that the u.s. list -- lift this ban on huawei for them to proceed on any types of agreement.
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that could be hanging over what happens the next 48 hours or so. paul: bloomberg markets anchor come alive for rest of the g20 in osaka as we await president putin to disembark his plane. traders are closely watching the g20 summit. it is the last trading day of the first half of the year. our global markets editor joins us here in sydney. how might the trump xi meeting pan out? of a positivese outcome. >> this has been reflected in a lot of markets. we have seen this incremental increase in people's prevented risk in recent days. we are coming off of a great quarter. the risk assets have done well. the yuan is struck in this range at the moment until we find out what happens this weekend. options traders looking at the risk reversals, pretty much prepared to bet on that upside
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outcome rather than any potential for a negative shock. you see that last bar coming down to the zero level. that is an optimistic signal. amount --s a regional reasonable about of risk on the table that you don't get some kind of step towards progress. that is really the potential risk that maybe is being underpriced by the market. if you get an outcome where either trump walks away from discussions or there isn't a clear signal as to the next steps in the way that this relationship is going to develop, you may indeed see some pronounced moves for fx markets, including the chinese one. we will have to wait until monday morning, a very lively start first thing when fx markets get open. to see the reaction we get in places like bonds and equities a few hours after that. shery: we are wrapping up june today. what is the outlook for asian
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equities headed into the second half of the year? where could the opportunities lie? >> broadly speaking, it has been a decent place to be for risk assets. you have had a decent rally and equities. bonds have done reasonably well across the world. in asia, china has continued to be the place where, despite the pullback there has been, there has been strong returns. in australia as well, really standing out where people have made money in the first half of the year. a lot of that premised on impending rate cuts. a few people dialing back their expectations for the return potential in australia. they suggest that things have gone too far. in the case of china, a lot of investors are perfectly happy to maintain an overweight stance to china. valuations look more appealing in line with five-year averages there. nothing looking out of sorts. there are places like korea and
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taiwan, folks at citigroup speaking optimistically about the potential for korean and taiwanese equities. emerging-market asia, allocations are quite low. if you see any catalysts for upside, trade being the big caveat for that, you could get some pretty decent moves into the second half given how low allocations are. paul: thanks for joining us. still to come, we will have more on the g20 and what singapore is expecting from the osaka summit. shery: up next, saturday's head-to-head between president trump and xi and the possibility of an agreement. this is bloomberg. ♪
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paul: let's get back to osaka now in the g20. yvonne man is there for us. you have a big guests with you?
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yvonne: yeah. let's talk more with the abc. talk the first day of g20. it's always very exciting. wonder, we were talking about the g20 model right now. usually at these forms, you see leader stick together. they come up with a communique. it seems like that has changed since president trump. does the g20 system now work? [inaudible] the g20 leaders are facing the same direction. each country has a different objective. a representative from each country is looking for their own voters. when they get together, i hope they have to faces. one is looking at the globe as a whole from the top. then they are representing each
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country. how will they come up with the same goal? yvonne: do you think we will get a communique? >> [inaudible] market has been very much pessimistic. these two leaders meeting is very important to calm down. we can look to the future. in trade issues, a very important issue is not how the exchange rate is. [inaudible] capital flow has to be gradually deregulated. those things have to come together rather than just focusing on monetize policy or trade issues. yvonne: what do you think could be achieved in this meeting between president trump and president xi? you mentioned about currency clause. the you think that needs to be part of any kind of negotiation? >> china and u.s. are two of the biggest companies in the world. they should also look at how the
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global economics can be affected by those issues. that is really important for them. they have to make satisfactions to other nations. yvonne: take us to the worst-case scenario. if we do not get an agreement here at osaka in the u.s. decides to raise tariffs on an additional $300 billion of chinese goods, how does that change are forecast for the global economy? that not only trade issues but extreme trade issues can be discussed. market-oriented exchange rate is one context, the currency will be depreciated. [inaudible] i think those other discussions have to go together with trade. yvonne: are you concerned that trade discussions could lead to a currency war? market rate is very important. yvonne: what asian countries
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would be most affected if we see an escalation of trade tensions? >> many asian countries -- now asia is forecasting exports to u.s. and europe. that was a growth strategy of many asian countries. however, within the asian reason -- region, internal trade is growing. asia may not so rely on u.s. or europe in future. the asian economy can develop by itself. yvonne: we have seen, when it comes to the economic data, it's like a synchronized slowdown at the moment. due toh do you think is the ups and downs of global manufacturing? how much do you blame this trade war for leading to the slowdown? >> there are lots of expectations about trade. i think it is very important to
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change the exchange rate. that will affect the big change of the trade flows. capital flows are very important. china is now closing its country. lots of the money is saturating within the country. money will purchase lots of stocks and properties. that will cause bubbles within china. it's good for china to open gradually. the exchange rate mechanics will not be so bad. yvonne: the abc president mentioned a couple of weeks ago that china's lending practices may be causing that distress. what do you think is the solution here? chemchina grow its way out of this problem? >> what japan did was 1980's. germany and japan, two countries exporting so much to the united states. what japan did, we have been expanding our production
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networks to asia, southeast asia. also united states and europe. production has been created. china will follow what japan did. secondly, exchange rate. [inaudible] those mechanisms are now not locking. yvonne: you mentioned limiting loads to china. when will china graduate from aid? >> china has already developed very well. it is very important to help other developing countries by adp. i think those are the issues to discuss. investments are important in asian countries. [inaudible] the most important infrastructure, how much it can develop its country? how much can it mitigate income
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disparities for its country? how much can we create jobs and similar participation into that market? yvonne: you mentioned one belt, one road. how was cooperation going? >> first project between , that wasnd china penetrated all over. . lot of projects forne: thank you so much kicking off our g20 country -- coverage. shery: thank you so much. she will be joining us with more updates from the g20. right now, you are watching live pictures out of osaka. modi of india speaking to prime minister abe and president trump. this is a trilateral meeting that follows president trump's
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bilateral meeting with president abe. president trump congratulated prime minister abe and modi on great victories and success. we know that prime minister modi has just begun his second term as prime minister. many outstanding issues between the three sides, including the ongoing negotiations on a free trade deal between president trump and prime minister abe. president trump earlier said that they would be discussing trade in those bilateral meetings. we have not gotten an update yet on what exactly was discussed. president trump, before going into the meeting, said that we appreciate the u.s. -- the u.s. appreciates japan car companies building factories in the u.s.. he has been threatening auto tariffs on japan. the japan and u.s. negotiations continue right now. you are looking at that trilateral meeting, about to
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begin between president trump, prime minister abe and motivate of india. we will focus on global trade tensions and speak with singapore's minister in charge of trade. this is bloomberg. ♪ the latest innovation from xfinity
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let's check in and wants happening in the market right now. sophie: asian stocks are looking mixed as we wrap up the first half of the year. best monthly gain since january. we did see in this morning's output data showing a slight drop in chip image on a monthly basis for may. that is boosting some of the chipmakers and so this morning. we are getting a lift from that softer dollar. the yen sinking -- sticking to the upper levels.
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let's switch it out to check in on a terminal chart. we wait on the boj's bond buying event this morning. take risk offfor the table, bailing on curve flattening or's on doubts that the boj will cut rates soon. lending rates getting close to reversal rates which would be detrimental for the economy. that was raised by one boj member. the 10 versus 30 year yield curve has bounced back above 51 basis points since falling 35 bits from october. be amongngapore will the many countries hoping for any progress in resolving trade tensions at the g20. the monetary authority has warned that growth this year will probably be weaker than previously forecast. into ade war morphs technology war. our correspondent joins us now. how concerned is the singapore
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government? >> concern is real. the prime in us or already said that singapore has to race for the fallout of the u.s. china trade war. almost shadowing the g20 meeting. we are looking at it really closely already. projections have been reduced. 2.5%. 3.1% previously. joining me is singapore's minister for trade relations. good to have you with us. realistically, how much can be achieved during the summit at the g20? >> it is hard to say because we are not party to the talks. in general, we have to be realistic. both are some issues which sides have to resolve. that is why they are meeting again at the highest level in order to get some resolution and move forward. our own help, shared by many
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others, is that these two largest economies in the world work out as we go forward. it is important from the point of view of global sentiment. already: singapore has revised is growth projections. have we seem the worst of the impact from this trade war? >> if this continues, we must expect that there will be far greater impacts in terms of consumer and investor sentiment. also in terms of the impact on supply chains. this is a key concern that all have. if you end up with what some it poses arcation, new set of problems for all countries in all sectors. our hope is that we don't go down that path and are able to manage it. meanwhile, the important thing is that we work together, like-minded countries, on new
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initiatives. whether it's new types of but alsoarrangements on things like economic agreements so we see nupathe race to growth -- pathways to growth. haslinda: singapore has become a battleground, ideologically, technically. had you see that playing out? >> i wouldn't characterize it as a battleground. southeast asia has always been very open to investments from the u.s. and china and japan. i think all countries will be keen to maintain a good relationship with both the u.s. and china. if you flip it the other way, it's an opportunity for southeast asia to be the place investhina and u.s. can and jointly participate in the growth of this region. that is the kind of outcome we are seeking to engender through the work of asean. haslinda: at the center of this
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u.s. china trade war is the technology issue. conjectures -- considers its own five j rollout, how do you take this into consideration? >> 5g is the background -- backbone of our economy in terms so it ist can offer, key that we develop a strong resilient 5g infrastructure. resilience includes both diversity, in terms of the type of services and the equipment that is being used, as well as security. from our perspective, it's not about any particular vendor. all types of equipment have vulnerabilities. the real issue is how to mitigate and ensure the security. we will specify our security requirements.
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whether seeks to participate in our market must meet those requirements. haslinda: what research are you relying on to ensure that what a safe? >> we have to look on our evidence and capabilities. technical assessments and the experience of others. we have to put it all together. and portly, we don't want to prejudge what our own operators are able to demonstrate. it's in the interest of our own operators to ensure that the systems are secure and reliable. that is what the customers would want as well. therefore, we want to work with them and understand what the propositions are. haslinda: there are also cost issues. is able to ensure cheaper services.
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if it's technology is not being used, it will at $62 billion in terms of cost. have you view the cost structure? >> from what i have seen, i think that the players are all working to become more efficient. as you have -- as you have greater scale, that will contribute towards reduction in cost. right now, you are at a very late in stage. that is one of the reasons why costs are higher. as 5g rollout goes across the world, you must expect that that will have a leavening effect on the cost. haslinda: could there be a delay because of questions about huawei? some say an 18 month delay could be what we are looking at. perspective,pore's we have a timeline we are working with. intend to process, we go into a call for proposals.
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we will work towards an award and rollout by 2020. we must be informed by developments around the world. our own expectation is that, unless there are major new inputs, that timeline is something we can it here too. haslinda: the regulator is five g at at least two networks. is that set in stone? is a third or fourth network something you will be considering it all? >> we have kept our options open. the reason this has been put out in this manner is because it is trying to find a balance between the allocation of limited spectrum and also ensuring that there are feasible use cases for the network. the option is always there, especially as new bands become as -- available in the near future to open up for more.
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the key challenge at this point for 5g is to ensure that there are viable use cases that will justify the investment, the infrastructure, and generate returns. otherwise, it will become difficult to move forward. we want to ensure that we get full value out of infrastructure. haslinda: talk to us about the selection criteria. >> we are looking about a variety of things. it is not just price or financials in terms of what they offer for the spectrum. we feel that we need to take a holistic view and arrive the overall benefit from 5g. that is the use cases, the impact on the economy. we will look at rollout and coverage aspects as well as network design, security, and how it will be ensuring reliability. and then look at the financial capability and other factors that will underpin the ability of the relevant operator to fulfill their obligations.
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it's a holistic assessment. haslinda: singapore has positioned itself as a global front runner for 5g. we have others like korea which is considered one of the early adopters. >> what we seek to do is focus on areas which mary the new technologies with our traditional strengths. that is the way to evolve. all the different centers around the world have to do the same. ports operations. the aviation sector. advanced manufacturing and iot. these are some areas that we are very focused on. and leverage in our existing competitive strengths and make a significant impact on our economy. haslinda: one final question. the biggest challenge for singapore would be? >> right now, navigating the external geopolitical uncertainties.
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whilst also managing the technological transition within our economy. haslinda: challenging times. thank you for your insights. singapore, an open economy watching the g20. that was singapore's minister in charge of trade relations and communications. let's get across some breaking news coming out of the g20. we are getting headlines from that meeting between president trump and shinzo abe. trump and abe intending to deepen and expand the u.s.-japan alliance. themplete reversal of thoughts that were coming out of the white house earlier this week in which president trump appeared to question the durability of that post-world war ii alliance between the u.s. and japan. instead, he intends to deepen that alliance.
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other headlines coming out as well. live picture from president trump speaking with the indian prime minister modi. tariffs whichover india has recently levied on products from the u.s.. president trump saying, we will be talking about trade. it will be very positive. he congratulated modi on his recent reelection. iran, asked about president trump saying that it would be on the agenda and that the group would discuss many topics. president trump and indian prime minister have their meeting there. you can see them sitting at the g20. that is one of the more interesting moments in osaka given the recent tensions between washington and new delhi over trade. dan, not quite the same scale as the u.s. and china trade dispute. a bit of kit for tatts going on
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between the u.s. and india. what can we expect the outcome to be in no soccer? -- osaka? dan: it's not just the trump xi show. trump has been picking fights on trade with most of the country's present here. tweeted,articular india must withdraw tariff increases immediately. he called them an acceptable. that is likely to take place during the meeting today. toi himself did not want raise tariffs. he waited a year before doing this. he was trying to get trump to the table. u.s. recently withdrew preferential treatment for billions of dollars worth of indian goods. modi was backed into a corner in this regard. we will see if they can come to some sort of agreement on this front. that, since the
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into office, come he has been trying to refocus the relationship towards asia, focusing very much on india. he launch this indo pacific strategy, went ahead and changed the name of the u.s. pacific command to indo pacific command. in a way to resist china's influence in the region. how important is this relationship for both sides? >> -- dan: that's right. term strategically, the u.s. wants india to balance china in the region. they have shifted their language and how they refer to asia to do that. these other issues keep getting in the way. the u.s. is also pressuring india not to buy iranian oil. they are pressuring them not to huawei for 5g networks.
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this has undermined broader efforts to use india more as a counterbalance to china. shery: we have just seen the latest headlines coming from the european council. the president saying, the european union is committed to as longian nuclear deal as iran upholds it. as long as iran upholds it. this is another huge topic that will be discussed at the g20. especially as we have just seen president vladimir putin of russia arrive at the g20 in oh soccer as well. -- osaka as well. looking we expect in terms of the u.s. stance? is the relationship with its allies after the iran nuclear deal? you are right. that is one of the major undercurrents to the meeting. how do we get the u.s. to calm down tensions with iran and take it down from that level where
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any accident could lead to some sort of military conflict? trumpetings today with and various world leaders well factor in. john bolton is here as well, meeting with various foreign ministers. that is expected to come up in those meetings. trump's with vladimir putin later today is the main thing on the agenda today before the big meeting with xi tomorrow. a lot of countries here, especially in europe, are looking to dial down those tensions and find a way forward. our asia government managing editor joining us from the g20 in osaka. on the g20 you more and the ongoing negotiations between president trump and prime minister modi of india. this is bloomberg. ♪
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shery: live pictures out of osaka, the venue of the g20. president trump holding bilateral negotiations with prime minister modi of india. he says that we will be hearing very productive elements. president trump saying they will be announcing a big trade deal with prime minister modi. president trump telling modi that they will have big things to announce. we will get you the latest updates on the g20 and what sort of deals and negotiation progress we get out of those. of course, we know that one of the big topics will be iran. oil headed for its biggest monthly gain since january. escalating tensions between the u.s. and around triggered fears of disruptions in the strait of hormuz. that comes as traders await news from the g20 summit and upcoming opec meetings. joining us now is our asia energy reporter in singapore.
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we have just heard from donald to his saying that the eu is committed to the iran nuclear deal as long as iran upholds it. this have moved -- has moved oil in a big well -- way. >> you have this weekend coming up, it's super bowl weekend for the oil market. so many things we have been watching all your that are all coalescing at the same moment. you have the eu and iran talks. you have everyone watching the trade were between china and the u.s.. movinge trump and xi towards an agreement this weekend. that will bring a lot of bullish traders in, making positive price movements. away, that'srther going to be really bearish for prices. you have mbs and put meeting. putin. opecll find out about
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cuts. we have the iran situation, u.s. sanctions are pushing them down to zero. will they get desperate? there's a lot of moving parts come together that could move prices either way pretty sharply. everyone's eyes will be on the price in osaka a weekend long. risks of great other another flareup in the u.s. iran tensions? >> that's a tough one to say. it seemed to get really close last week. all of us would help that the risks are lower now. you know, with those two governments right now, it's tough to tell how tense things can get. anything can trigger a reaction. i think it is keeping the market on tenterhooks. even though the oil market is fundamentally oversupplied right tensiont nerve-racking
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has been supporting prices and keeping them high this month. shery: thank you so much. let's get a quick check of the latest business flash headlines. overhaul intended to cut costs and prepare for shifts to electric and self driving cars. the move will reduce ford's manufacturing presence in europe to 18 plants by the end of 2020 with germany and russia hardest hit. the plan will see 12,000 workers lose their jobs. largest shoe retailer has filed for a hong kong ipo. hired bank of america and morgan stanley as the offering sponsors. the share sale could raise as much as $1 billion. the business sells brands including adidas, nike, and
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puma. it has more than 20,000 retail outlets. the second night of democratic presidential debates is almost upon us. 10 candidates including joe sanders, and kamala harris will be on stage in miami. let's look ahead to that with archie for -- washington correspondent. all eyes on joe biden. a few challenges along the way here. what are we expecting? iery: i just spoke -- kevin: just hope with a couple of staffers. they are hoping that they are going to get a humorous type of joe biden when he comes out on stage. they are expecting that will -- he will be asked about the controversies that have gone to his campaign the past couple of weeks. he has made comments about segregationists. they are looking to draw a contrast as a reasonable
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opportunity -- alternative to some of the more democratic socialists who are running for president including berdych -- bernie sanders. he will be standing right next to the former vice president. they are expecting that senator sanders will directly try to attack politically biden. there are other candidates on the stage were going to be looking to make their mark tonight, including pete buttigieg. on the issue of policy, many of the same themes we saw last evening on the stage with elizabeth warren and castro. look for them to reemerge on the sages well. attacks against big pharma, big business, big tech. that could come from senator sanders. also immigration and medicare for all. that could be a divisive issue
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on the stage as well. paul: what about the candidates on stage last night? the democratic field is so huge. who the big winners in the first debate? kevin: last night in the spin room, all the candidates came in, to claim they had victory. pointed at castro as a clear victor. they argue that he was able to draw a clear contrast with the likes of beto o'rourke. a lot of folks that'll -- thought that elizabeth warren did what she needed to do. there were other more centrist candidates including john delaney. bill de blasio also getting into that fray as well. either way, the format of this debate, each candidate gets 60
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seconds to answer the question. a 32nd rebuttal and a 45 second closing argument. for someone like cory booker who got the most time last night, but only equates to about nine minutes of speaking time total. paul: all right. bloomberg's chief washington correspondent, watching those democratic debates for us. you can turn to your bloomberg for more on this story. get commentary and analysis from bloomberg's expert editors. let's get a preview of what to watch in markets later on this morning. forecasters want to keep the razors on hand. tense meeting could test the pboc's resolve to do spend the seven line which is not too important a level. a step away from protectionist tendencies, pressure on the yuan. yuan, turning negative for the first time since april as option traders anticipate a positive outcome.
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cmi staying within its current 685-695 range. china's economic fundamentals don't support sustained appreciation. shery: thank you so much for that. that's it from daybreak asia. our markets coverage continues. we will be live from the g20 in osaka throughout the day. stay with us. the trading day ahead for hong kong and the mainland markets. stand by for bloomberg markets: the china open. this is bloomberg. ♪
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is not a clock a.m. in beijing and hong kong, 10:00 a.m. in osaka where world leaders are gathered for the g20 summit. we're counting down to the open of trade in hong kong and here are the other stories we are covering. are already holding meetings, but the big one comes tomorrow. demand aexpected to list from the u.s..


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