Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20170601

,tty this is daybreak asia live from bloombergs u. S. And asia headquarters. I am betty liu, in new york. Yvonne i am yvonne man in hong kong. Breaking news out of south korea on First Quarter final gdp numbers coming in at 1. 1 . For 0. 9 s were hoping estimate. Relatively marginal beats. A year on year figures coming in at 2. 9 . Gdp setting the fastest face pace we have seen since 2013. We will see what the Market Reaction will be. Big story this morning that happened the last couple hours, the stunning announcement from president donald trump. We saw classic donald trump come out. We absolutely did. At that overshadowing any news we are getting so far. In terms of the reaction in the market, it was interesting. Been. S. Markets have getting higher. They ended at the top of the session. You can see the s p higher by 0. 8 . The dow adding on 135 points. The nasdaq composite rising 0. 8 . The doomsday scenario we saw from u. S. Ceos saying it would be bad for the economy has not played out yet. At least in todays session in the markets. Do not read too much into a kneejerk reaction. We have to see more what the details are and what impact there could be in the longterm on the u. S. Yvonne you cant forget, we saw the u. S. Jobs report in the u. S. Today. Here is how we are looking friday morning. The good buys keep coming. The kiwind, asx sing marginal gains at. 7068. U. S. Treasuries marginally weaker. Aussie futures are positive,. 7351 for the aussie. Oil reversing earlier gains despite the report that showed the u. S. Stock falling for the eighth straight week to read japan, the yen out of four days of losses overnight. Could be bullish sentiment. Were expecting a 90 point gain in tokyo on the nikkei 225. We are inching closer, 50 points away from 20,000 on the nikkei. China could be a potential source spot. See the manufacturing and pmi in china contracting for the first time in some time. On allwe will get more of that. Lets get the first word news with courtney collins. Local media in the philippines reporting police have killed a suspected gunman after reports of shooting inside the resorts world casino in manila. All guests have been accounted for. Around 25 were injured, but none from gunshot. It comes after president Rodrigo Duterte issued martial law in the Southern Island of mindanao. But they say robbery was the most likely motive. The u. S. Has new sanctions on individuals and countries with a links to north korea. The Treasury Department is adding two agencies in pyongyang. Washington is also urging china to rein in its ally and says they are behind the scenes there are behind the scenes moves underway. Comeyfbi director james will testify to Congress Next thursday, june 8, as the Russian Investigation moves to the public stage. He will be questioned on what President Trump said to him about russia before he was fired in early may. A memo comey wrote about the conversation claimed the president asked him to drop checks on former security advisor michael flynn. Memorial day discounts and sales helped auto sales last month. Delivery rose 2. 3 . A rare victory over general motors. , a possibleonda first increase in monthly deliveries this year. Without discounts, ford sales would have dropped in may. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am courtney collins, this is bloomberg. Betty lets get back to our top story, one that is generate generating this reaction around the world. President trump pulling the u. S. From the paris climate pact, saying it is unfair to u. S. Workers in the economy. Mr. Trump the reality is, that withdrawing is in americas economic interest and will not matter much to the climate. The United States under the Trump Administration will continue to be the cleanest and most environmentally friendly country on earth. Betty lets get straight to washington to our white house reporter. Tell us a little more about the mood during that conference and the Immediate Reaction. Reporter the Immediate Reaction was pretty swiftly negative, despite trump having worked so hard on this appeal of being a probusiness president , surrounding himself with ceos, many of the ceos he has brought into the white house he has used to bolster his probusiness agenda came out very strongly against this. From banking to to tech, they have been encouraging the president to stay in. They say they disagree with it. Yvonne we did hear from the president that he was willing to renegotiate, which is not a surprise. He is of course a dealmaker. Is not an endpoint but a starting point. Does he have that political leverage now to get these 190 countries to the table to get a better deal . Shannon no, he does not. Several countries came out and said, we are not coming back to the negotiating table after years spent negotiating with the u. S. , getting 190 countries to sign on, now the u. S. Wants to start from scratch. The other major countries are not necessarily going to go along with this. In order to negotiate with you have to have someone to negotiate against. Right now, no one is coming to the table. The briefedials reporters said of course, we are the United States, we are such a big player, of course they will come talk to us. But i would not be so sure. I do not see us as a credible partner and do not want to waste more time negotiating for the u. S. For us to just change her position or pull out of the agreement at the last point. Yvonne thank you. Breaking news, bob igers, the disney ceo, saying he has resigned from the council over this paris pact exit, echoing what we heard from teslas elon musk when he tweeted out that now that the u. S. Is out of the paris accord, he is also departing president ial council. Climate change is real. Leaving it is not good for america. I want to bring in a professor of economics from the university of southern california. He joins us live from a. I want to get your reaction to this. How critical was it to have the u. S. In this field . Does it still have influence now . I think it does. This was not unexpected. President trump has been consistent here. There is oh is a Silver Lining. China, it is like a chance to step up and Show International leadership. You mentioned china stepping up to, some think it is a victory for the mainland. When we take a look at this and see china investing more than 300 billion or pledging to spend that much in terms of manufacturing, investment to research and development by the end of the decade, how does it china play a wider leadership role now . Are they prepared to do so . Matthew that is a great question. In china today, there are a still number of coal miners. They are very dependent on coal to generate power and winter heat. Iny make huge investments solar panels, electric vehicles, wind turbines. They anticipate large domestic market and National Export markets. Even if the u. S. Were to purchase none of these future electric vehicles, solar panels, or wind turbines, china will still make money exporting to the rest of the world. While the u. S. Has been a key player in the production of Greenhouse Gas emissions and in getting past international deals, a Silver Lining is that the rest of the world may step up. The u. S. Will continue to be a superpower, but other great nations may compete with the u. S. On who can be greenest here. Yvonne critics say there is a view in china that decar bonization can hurt Economic Growth. A long way toe go. I have a chart that shows china admissions per capita is still much lower than you see in the u. S. When it comes to the net values in the bottom half, china supersedes the u. S. In many ways, as well. Do you think about the slow burn in the economy in china now means it is likely to meet its 2030 paris target . What happened afterwards . Is it a plateau, or could we see a sustained decline afterwards . Matthew china said an interesting goal for itself at the paris meetings. It wanted to be judged on its carbon intensity. Greenhouseeconomys gas emissions divided by its gnp level. It could meet the target even if the greenhouse emissions do not decline, if its economy grows fast enough. We can celebrate some algebra. Unlike the United States, china set this intensity metric. I believe china can enjoy the winwin of Economic Growth and decarbonization as their economy transitions slightly away from manufacturing. A little bit like San Francisco and other of americas great cities. I think the future of the chinese economy is human capital, the millions of educated people in chinas coastal cities, crating their and hightech companies, rather than heavy steel. This is part of my optimism of chinas decarbonization. It will transform their economy. Bety we know china seems to able to win out of this. What about the u. S. . Who wins in the u. S. . Matthew i think it helps california. California will continue with jerry brown and Arnold Schwarzeneggers ab32. I argue that california is the green guinea pig. You will see the u. S. Return to the international table. States like West Virginia will be procoal, but california will continue to be the center of the green economy. Companies like tesla will continue to push despite President Trumps actions today. Betty thank you so much, professor of economics at the university of southern california. Lets get some more market and stock reactions to this. Ramy inocencio has more on how the u. S. Markets reacted. Ramy it is not just what happened with the paris deal. It was also support of jobs and oil data that pushed our markets to record highs. At the s p 500 up to 2430 here. Lets look on the intraday for the s p on my terminal. You can see how we started the ending 2430. Donald trump hour, the exit for paris. It jumped about 0. 5 here. Theould be something along lines of regulatory action or regulations falling away in order to unleash potential there. S p financials rose higher a little bit. That is on the back of what is happening here. Is sega look at what happening in terms of renewable stocks that you think might have taken a hit. Has it taken a hit . Solar jumped by 2. 7 . These are recouping losses that they saw 24 hours ago. It fell 5. 2 . Canadian solar fell 5. 4 yesterday. Sunpower fell. We are seeing some of these stocks react. Lets take a look at what is happening with tesla. Tesla down 0. 2 . And bob igercanadian musk saying they will be departing the president ial council. You can see some of the Market Reaction. We will monitor as things move along. Still ahead, u. S. Job numbers due friday are said to continue to show improvement for the economy. We will unpack the latest echo ecodata. Ceo agreesrmer shell with this. This is bloomberg. We have got to transition the world to lower carbon forms of energy. I have no doubt it will happen. We need to be clear rather than walking away from it, what you put in place. For the a very sad day world, a sad day for our grandchildren. And obviously as business people, we have to keep ourselves up on a global basis and get on and sort the problem out ourselves. I think that this decision were dishonest, destructive, and entirely inconsistent. And i think the American Business community has already started to speak and spoke out before the speech requesting the president not withdraw from paris. Yvonne some of the voices in reaction to that paris accord, the u. S. Dropping out of it. This is daybreak asia, i am yvonne man in hong kong. Betty and i am betty liu in new york. Lets get reaction. I have someone who is no stranger to the Climate Change debate and the impact on companies. He is john hoffmeister. U. S. ,ps run shell in the he works closely with the energy industry. He is joining us on the phone from i believe louisiana, the former president of shell in the u. S. You were no fan of this Paris Agreement. Are you celebrating that the u. S. Has withdrawn from it . John i am actually quite saddened that we are where we are today. But here is my point of view. I spoke out against the agreement before it was reached out ahead of was his schemes. He did not have the Political Support to reach a conclusion on this agreement. He ignored the legislature of the United States. He basically ignored any information coming from anyone who did not agree with them. He committed the country to a voluntary agreement that has no enforcement. And i think it was premature for us to get into such an agreement. Betty but is the answer to that to say, no, i am not going to be a part of this is that the answer . No. no, we have to take on new leadership as a nation and demonstrate to the world that we can do more, we can do better, we can make progress faster, because we are not part of this agreement unless and until we do do renegotiated. That door was left open, at least by the United States. But i do not think trump is a man to do it. He is black and white on these negotiating issues. One president does not make the country it what it is or what it will be. Obama failed to take into account the political complexities of it. I think trump is putting it way too simplistically. Somewhere we will need to find a president that can lead us on a pathway that both leads the nation and can perhaps provide leadership to the world, as well. I think china did a good job of looking out for china in the negotiations of this agreement. I do not think the u. S. Did a good job of looking out for the u. S. Betty what youre saying is theoretical right now because is not ans, obama office anymore, we have trump in office. You say he is not the man to do it. I am sorry, he is a man in the next four years. So, we have to live with that. What is the consequence here . John right, we have lost a decade. I would put it down to, we have lost a decade. It is not the end of the world. The u. S. Will continue to dec arbonize over this decade, even with trump as president. Thee are the stakes that politicians, Corporate America, and the people want to proceed. We will continue the process of decarbonization. Ands not a return to coal fossil fuel only. It will be a mixed Energy Package for the United States. As i have talked and written, we need all the forms of energy to support our economy broadly. The we have lost is position that obama tried to put the u. S. In. But the u. S. Was not ready. We had too Many Political forces. Remember, china is not a democracy. They can decide unilaterally with no democratic debate what is in their best interests. The u. S. Has to proceed democratically. Obama did not proceed democratically because he other major input of the legislative branch of the u. S. Government. Betty i want to get back before i let you go to this idea that President Trump, he says he is open for renegotiation. Do you believe him on that, or are you saying you do not believe him . John i do not think the rest of the world wants to deal with trump on this issue. I think they have written him off, at least the current leadership. Of germanyership changes, france, etc. , remember, politics is a dynamic process. What is today will not be tomorrow. We can hope for change. But i do not think trump himself will be directly involved in it, not when he has an epa secretary who said what he said today about how trump has saved the nation from this agreement. The agreement was not a good agreement, but it was an agreement. It makes me sad we could not proceed down this path. But, trump did warn everybody and the American People elected him, and he followed through on what he promised. So nobody should be surprised about that, which i have heard others seek speakers say. But it is sad nonetheless. We have lost our reputation and image, at least for now, and World Leadership. Betty thank you so much for joining us. The citizens for Affordable Energy founder and ceo. We will be back with much more. This is bloomberg. Yvonne lets do a quick check of the business business flash headlines. A man accused of using bogus oil reserves at the Los Angeles Energy firm he founded through a 20 million loan. He is said to have convinced of bank he had 1 billion in longterm assets. He is charged with bank and wire was seeking 3 million in loans. Communications face a default as a distinct possibility. The ccc score is below investment grade. They are battling rising competition and will be speaking to chinese lenders on a waiver of september payments of about 1 billion. Coming up, australias Prime Minister appeals to china to rein in north korea. ,vonne 7 30 a. M. Friday minutes away from asias first major market open. Betty it is 7 30 p. M. Thursday here in new york, where markets closed higher, despite bad news coming out from corporate saying, saying there the pulling out of the climate agreement is bad for the u. S. It ended near a high of the session. I am betty lou in new york. Yvonne i am yvonne man in hong kong. Lets get the first word news. President trump has confirmed he is pulling the u. S. Out of the Paris Climate Accord, arguing it is an unfair deal that works against america. He ignored appeals from World Leaders, political allies, and opponents and leading corporate figures, saying it handicaps u. S. Workers in the economy. The withdrawal will come in late 2020 at best. The president said he will push for a new deal. Hada and spacex, elon musk said he will quit his advisory roles in protest. He said Climate Change is real, leaving Paris Agreement is not good for america or the world. Disney ceo bob iger is another to resign from the president s council. Abandoningberg said paris is bad for the u. S. Economy. China and the European Union say they will redouble their efforts on Climate Change, underscoring the isolation of the u. S. Under President Trump. Inmier li keqiang spoke brussels where the two sides will affirm their support for the paris accord. And, the rejection of u. S. Protectionism. Said Climate Change is a global issue and china was one of the first to ratify the 2015 Paris Agreement. Indian Prime Minister Narendra Modi has taken his campaign to russia, and meeting president putin at the st. Petersburg economic forum. They discussed twoway ties and cooperation in areas of defense. Modi earlier met chancellor chinaso counter increasing influence in asia and beyond. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am courtney collins, this is bloomberg. We are counting down to major market opens in the asiapacific. Lets get the latest from adam haigh, who was across all markets right now joining us live from sydney. Great to see you. We have been focusing so much on the paris accord. What are the main things you are watching today . Adam that key data points on u. S. Jobs report is the main thing we will be watching. We saw thenew highs, appropriate response in the bond market and with the dollar stronger. We will get some of that feeding through to local bond markets in stock markets here. That is building up to the monthly jobs report. It plays into the hands of equity bulls that are happy to put money back into the market, expecting Earnings Growth to astinue following through the Global Economy can withstand higher Interest Rates in the u. S. , and elsewhere across the world. This supports that bullish view. We should be looking for the green on the screen to end the week in asia. There is not much on the data calendar, it is fairly light. We have a couple more fed the speakers, including harker and kaplan before going into the quiet period before the mid june rate decision, which by now is a done deal. 90 chance of a hike. Assetsin australia, the are under pressure, we are talking about the stock market, the currency. What is exactly happening that we are seeing this kind of pressure . One key thing we always look at, we can bring it up on the bloomberg terminal. This is a key chart we monitor. We see a new level reached this week. This is the strength in the yield you see on a tenure aussie bonds and tenyear treasury. That yield gap has come down in the past few years, as you can see on the chart. That differential is down to 16 basis points. The last time it was around that level was 2001, where the aussie dollar was trading well below 64re it is trading now, that u. S. Cent mark. It is getting harder for u. S. Harder for investors to buy aussie debt. There is still an appetite for yield out there. Any immune over the u. S. Is still giving Bond Investors some reason to come to australia. But it is narrowing and getting harder. It is an indication of how much doom and gloom there is around the australian economy. If we look back to the start of the year, the likely next move rba. The we are not expecting them to cut at next weeks meeting. The chance of a cut in december is one in five. That is a huge change over the last three months. We did have respite in the negative news in australia yesterday. We saw enough to take in retail sales, that is healthy. We are seeing indications the Property Market is adapting to some regulatory changes. Having said that, the stock markets performed poorly. Banks are doing particularly bad and the aussie dollar is the weakest in g10 currencies over the last three months. It is a tough time for australian assets at the moment. Betty thank you, adam haigh in sydney. Staying in australia, australias Prime Minister saying their relationship with the u. S. Is stronger than ever. Australia facing the challenge of adjusting to President Trumps style of leadership. Withlm turnbull sat down bloomberg at an exclusive to talk about everything from the threat in north korea and how he thinks it should be tackled. Conduct isreas reckless, dangerous, and becoming worse. China has the greatest leverage over north korea. With the greatest leverage comes the greatest responsibility. Withe will do our part sanctions, of course. But we look to beijing to bring the pressure to bear on the regime in pyongyang, to bring it to its senses. To bring it to its senses, so that it ceases threatening the piece of the region with its reckless content. There is a shift when it comes to global alliances. Angela merkels adjusting cannot continue to rely on the u. S. , the u. K. The europeans must take charge of their own destiny. That postwar alliance looking so fractured at the moment, what does it mean for australia . You say the u. S. And australia have shared values, a special relationship. But do we really . Mr. Turnbull of course we do, and our alliance is stronger than ever. The australiau. S. Alliance is more important than ever. As President Trump and i demonstrated when we were together on the uss intrepid in new york a while ago, our commitment, the commitment of our two nations, based on our history, shared values, mutual interests, is stronger than ever. Is there a concern the President Trump has proven himself to be irrational, erratic when it comes to policy issues . Is thatr times level of good faith something you can rely on . Mr. Turnbull the relationship is in the very best of help. The relationship between the United States and australia is a strong as any relationship could be. It is based on history, shared values, common interests. The closest possible engagement at every level, defense, political, economic, business, people to people, family. It is the closest possible relationship and to get stronger with time. Forced tod yard was temporarily suspend intelligence sharing with the u. S. After reports that information had been leaked, and also the u. S. President reportedly sharing confidential information with russian officials. Has australia thought reassurances that any intelligence shared remain confidential . Mr. Turnbull the intelligence relationship between australia and the United States is also intensely close. We have every confidence in the confidentiality of the intelligence we share, our friends in the United States, just as they have in the confidence we give to the intelligence they share with us. Intelligence is more important than ever. In particular, and the battle against terrorism. It is a global phenomenon. Threat, it is terrorism that extends from europe to the middle east to asia to the americas to australia. So the sharing of intelligence, not just a between between all nations that are committed to defeating the scorches more important than ever. Have you from President Trump . Mr. Turnbull we are always assured of the strongest security and confidentiality between our intelligence services. It is a relationship of many decades standing, and one which is as rocksolid and will last. Yvonne that was australian Prime Minister Malcolm Turnbull speaking to our own haidi lun. The latest u. S. Job numbers. Always important to the rate hike decision. This is bloomberg. Yvonne we are counting down to asias first major market open. Up 60futures firmer, points. This is daybreak asia, i am yvonne man in hong kong. Betty i am betty liu here in new york. Economic data released this week showed a mixed picture on u. S. Jobs. The official forecast shows job growth expands steadily. Roche to bring in mitch lle and our analyst i always scramble your name up. On what toig debrief expect tomorrow. We expect slowing in the pace of job creation. 50 and 225etween 1 will be seen as more of the same. The most interesting part for us is the unemployment rates. Will a decline further or will it stay at the low 4. 4 . Overshadowprobably any payroll number. Is forthe consensus 182,000 jobs. Anywhere in that range will not be too surprising for the market. Is isw important it this number going to be for the fed and the employers . It is important for employers and the white house. The road,licy down strong job numbers are good politically. Although it is not political. The evidence we saw in adp numbers, 250 and change, was construction jobs were up. That is a good point where we are because we had construction numbers that came out today that were not so robust. Construction is a good sign of direct investment by business and individuals. Hopefully we see something good. And the makeup room i said something with a 2 in front of it. I am a half full kind of guy. Yvonne we mentioned new lows in unemployment, but wage pressures are tamed at best. Is there something wrong with the models . Do we need to rethink what constitutes full employment . Lot forreport means a the fed. The fed is looking at the unemployment rate. Maybe the natural rate of unemployment is lower. Maybe we will see at the june meeting in the summer of Economic Projections is them revising it further down because were not seeing much wage pressure and we see lower levels of unemployment rates. The relationship between unemployment and wages are not broken, but bent. It could be somewhat lower. Watch for the summer of Economic Projections. Is the fed focusing on the Work Force Participation rate as they should be . I know the unemployment rates are a clear metric. Why not more talk about the workforce . One of the fed governors spoke about it just recently. Ratenk the participation is stabilizing. And that is what the fed is happy about. The structural trend in participation still has a downside. The good news, it is stabilizing. I think for the fed what really market,is the labor which is reflected in parttime workers. They want to work fulltime. This is where most of the slack is coming from. Not those people who are out of the labor force. You heard the fed speak before june, different than march. We saw a unified core from all the fed governors and president s. It raised expectations 2000 . Now we are hearing from lael b James Bullard say theyre worried about inflation. And then someone else said there could be for rate hikes this year. What is going on . The fed is doing a better job since the taper tantrum of a years ago telegraphing what they are thinking as opposed to not thinking about art talking about in private. All the fed president s are sharing their views on social media. That is sending mixed signals to the marketplace. If rates are going up, it is not reflected in the treasury curbs , theye what is happening are continuing to invest in treasuries. Our view is that we will see perhaps one less ratewe wouldve thought at the beginning of the year. We will see a couple rate hikes through out the year. Betty i want to talk about ceo or business sentiment. Business confidence is high and rising. Reflecteden that somewhat in the stock market, the animal spirits. I wonder if that is like what we saw today. The ceos are coming out, saying i am not what the president anymore. Will it have a realworld impact . Will it Impact Business confidence . The news of any 24 hour news cycle that not affect longterm investment patterns. Thingsave been so many consuming any one news a cycle, whether it is social media, traditional media. The next day we are on to something new. Yvonne you think that will be the case . There is such a divergent view of the paris decision. Some of the folks who feel one way were vocal one day. Other wayt feel the may be vocal in the future. I have learned that what happens in 140 characters should not sway your decision. I am looking at First Quarter results of the s p 500 with 90 of companies reporting, just shy of 14 growth. The breath of that positive yearoveryear growth across sectors even if you pull energy out, the fact is that almost every energy all eyes are on the second quarter. Ins see how they perform the second quarter. If that continues, you will see dollars rotate toward equities. They are living up to those multiples. I am curious, how come all this chaos we have been hearing about in washington, why hasnt that affected the job market or economy . I 100 agree that sentiment could be affected by this news. But that does not necessarily mean it will result in fluctuations. I think growth will continue to be stable, around 2 this year, driven by consumers. Consumers are spending and they will continue to spend, despite the blip we saw in the First Quarter of the year. Betty they are spending less, though. They were spending less in the First Quarter. We will see a rebound in the second quarter. Net growth is stable. We will see growth in Income Growth this year, based on wage pressures. We are seeing some wage pressures reflected in the latest beige book we saw this week. What is interesting, consumerss Balance Sheets are increasing. Next week we will get the data. It will probably indicate the net worth of consumers is growing faster than a was a couple quarters ago. Based on higher home prices. And fica scores, we saw those earlier this week. It is showing up in strong credit, as well. We continue to hear the views from Business Leaders saying we need washington to eventually deliver for equity markets to continue to break out of this of these highs we have seen. Do you share the same view . Notes togethery i have three categories, the good, the bad, the ugly. The uncertainty of what is not happening tractionwise and washington falls into the ugly category. Happen, because those Business Leaders are looking in planning on some sort of rate relief to help drive the economy. So they can live up to the growth trajectory we have seen in corporate earnings. The pressure there is going to come from everywhere. Not only the individual taxpayer in the u. S. , but Business Leaders as well. Yvonne always great to have you. Thanks so much for that great conversation. Even get a roundup of stories to get your day going in todays addition of daybreak. Subscribers go to dayb on your terminal. Also your smart phone, the bloomberg app. Customize your settings. This is bloomberg. Betty this is daybreak asia, i am betty liu in new york. Yvonne i am yvonne man in hong kong. The u. S. Exiting the paris accord. The reaction has been quite swift. This is from apple ceo tim cook, saying he is disappointed at the u. S. For leaving the paris climate deal. This is from a comment in an employee letter obtained by bloomberg. We have been covering the fact that tim cook was trying to persuade the president to stay in this deal. He said he tried to persuade trump to remain in the accord. But apple latched to still maintain its climate goals. Betty more comments from the corporate world and government. Several political leaders, including hillary clinton, tweeting out. Twitter has become active, on fire with all these statements from various leaders. Theary clinton saying, world is moving Forward Together on Climate Change. But this is a terrible decision. American workers and families left behind. Saying this is a historic mistake. Our clinton saying we owe children more. Former Vice President al gore, you can imagine is very unhappy with this decision. He said this withdrawal was reckless and indefensible. He said make no mistake, if President Trump wont leave, the American People will. Strong comments from the global world and corporate world. Yvonne you mentioned the president in his speech saying the paris accord is unfair to the u. S. But you hear ceos saying, this is a bad idea and bad for the economy, as well. You have heard a that were supportive of the president on Advisory Councils dropping out. Bob iger of disney, the chairman and ceo, resigning from the president s council. Elon musk a couple hours ago departing from those present president ial councils, as well. More to come on daybreak asia. This is bloomberg. [music] President Trump pulls out of paris. He says the climate deal is the u. S. And penalizes american workers. Political and business protest. Elon musk quitting two white house roles. Saying theybrussels are remaining committed. Of gunwhere, reports fire and explosions at a manila casino. If it wast say terrorism or robbery in and World Leaders discuss trade and security in singapore. Chinas growing influence will be top of the agenda. The second hour of daybreak asia, coming to you live from bloombergs headquarters. Im yvonne man. And its just after 8 p. M. Here in new york. Im betty liu. Yvonne, of course, were just digesting the aftermath of this the president to pull out of the paris climate pact. Is it going to have on the u. S. Economy . So far, no impact at least today the markets in the u. S. In fact, we closed at near the records. Yeah. It goes beyond paris, though. I think a lot of people are also the u. S. Dropping out of this climate deal now undermine the credibility of the the australian . Is this going to be a hindrance work on trade issues or other types of National Security moving forwardes with some of these countries that do support this paris deal . Thats going to be the key question, as we do wait for this process of the u. S. To exit paris. Meantime, we are looking ahead to some big u. S. Data. Markets thats what the is focusing on at the moment. Lets get the latest. Well, yvonne, as betty pointed out, trump pulling out accord,aris climate wall streets focus was on the private job report. Upbeats a little more than expected. Thats helping trickle into the good. Far today,ng so japanese stocks rising for a 20,000day, eyeing that level. Just about 30 points shy there. We have shares in seoul up for a day. D rising for a fourth day here. Look at this, we do have the offshore yuan just range there. Ht very much in focus. We have the yen, fairly flat. Aussie dollar, still below 74 cents but up about a a percent. Focusing on whats going on with oil, we do have new york crude falling over 1 here. Although we did have u. S. Declining for an eighth straight week, its still above that fiveyear seasonal the, so putting pressure on oil patch there. And gold, just treading water. Not showing up here, but we do saying thate bank bullion is looking fairly expensive, looking at a fair value of 1,015 an ounce. Taking a look at this next are panel here, i want to show you going on with the dollar. While safe haven demand is dollar year to date, the is remaining weak, as we are seeing Global Equities continue advancing their yeartodate gain to more than 10 . Growth story. Obal it remains very much intact. Do haveoday, we inflation along with australian new home sales for april to look out for, along with japanese consumer service. The casinocking on operators, given that jump in gaining revenue. Plus, todays yuan, hot on the continuesthe currency to surge, confounding forecasters as the jumped to even the most optimistic predictions. Forecasters expecting the yuan to end the year stronger than seven by year end. Call now for the yuan by the third quarter. Betty . Thank you so much. Markets are open. Markets are open. Now lets get to the first word news with paul allen. Thanks, betty. Media in the philippines say a suspectedkilled gunman after reports of shooting casino inorts world manila. Police now say all guests have been accounted for, with about people injured but not from gunshots. The incident comes after Rodrigo Duterte imposed martial law. The u. S. Is imposing new sanctions on individuals and companies with links to north latestfalling its missile launch. Toy are adding it seemed have worked with north korea on making weapons of mass destruction. Washington is also urging china to reign in its ally and says there are behindthescenes move under way. Fired f. B. I. Director james comey will testify to congress june 8, as the russia investigation moves on to the public stage. Questioned about what President Trump said to him about russia before he was fired early may. It was said that the president asked him to drop checks on former National Security advisor flynn. It was said and indian Prime Minister hisndra modi has taken trade campaign to russia, meeting Vladimir Putin at the st. Petersburg International Economic forum. The two leaders discussed twoway ties and also defense. On in areas of modi earlier met chancellor stronger he seeks international relations. Global news 24 hours a day, by more than 2600 journalists and analysts in more countries. Im paul allen. This is bloomberg. Saying held trump will pull the United States out landmark Paris Climate Accord. The reaction has been swift. Complimentary. Political allies, opponents, World Leaders have been having their say. Out,ve been tweeting issuing statements all day and evening long. Lets get to this. Oneutting it all into slogan that weve been hearing donald trump hammer over and over again, america first. We heard this hammered over and over again. He spoke to his conservative in the rose garden and it. Pence also hammered mr. Trump said i was elected to represent the interests of pittsburgh, of american workers, represent the interests of paris. Lets take a listen at what he had to say. Is thateality withdrawing is in americas interest and wont matter much to the climate. The United States, under the will administration, continue to be the cleanest and most environmentally friendly country on earth. So lets go ahead into a what hef the details of was talking about here. He wants, one, to renegotiate deal. Ris but he said if that doesnt happen, then he could also enter into a new one, saying that if we can make a deal thats fair, thats great, then thats fine. Then thatsnt, also fine. Turns out were also learning that he spoke with leaders of france,including germany, the u. K. And canada there, saying that he wanted and he said that he thanked them for their frank discussions. Out that, of course, that they could not make him change his mind and now european nations saying that the paris deal cannot be renegotiated. Recently. T coming out but looking ahead, it makes the Climate Change agenda now one of the issues very relevant to the 2020 white house race. Fact, the day after the next u. S. President ial election, november 4, 2020, that is when for example, if donald trump was reelected, he would be able to trigger it officially then. Or whoever was in power could say im not going to and we could walk that back. Look ande to take a see what happens three or so years into the future. You were talking also about some Business Leaders that were really calling donald trump out on this. Elon musk, of course, saying the whiteleaving house council. Saying that leaving paris is not good for america or the world. Can see also tim cook, just in the past 10 minutes or to saying he himself tried persuade mr. Trump to stay in the accord but that he and apple to maintain Climate Sustainability goals and, of course, bob iger also leaving the White House Advisory Council there. Richard branson also saying it a sad day. A lot of other people might be agreeing, especially when you is inabout who the u. S. Cahoots with, i suppose, syria and nicaragua are the only two nonsignatory nations now joining the United States. Small list there now. News. Got breaking thanks so much for that. Out of japan. Another leader coming forward here with comments about donald trump and the u. S. Withdrawing the paris accord. Japan saying that the u. S. Withdrawal from the paris regrettable and they will work for full parisentation of the agreement, joining the likes of germany, france and italy, echoing their views on how disappointed they are that the u. S. Decided to do so. Markets in japan, we reached a milestone on the 22,000 for the first time. We havent reached those levels since december 2015. Optimism outof there. The ecodata we have been of japan. T lets bring it back to this paris discussion. Is the president and c. E. O. Of the world of resources institute. Special envoyrmer for Climate Change at the world bank. Andrew, great to have you more about your initial reaction to this got. Ncement we can the u. S. Dropping out kill the Paris Agreement . No, it cant. Look, this is a sad day for the global environment. Asia. Bad day for but particularly, its a bad day for the United States. I mean, the United States is be hurt economically quite badly by this. And its also going to be hurt politically. I come from the United Nations kingdom. I know what its like to be a decline. N and the United States united ste tothe world is going profoundly diminish as a result of this. Lets hope that a future can refound that. But its a bad situation. Fact that the fact that President Trump the facts that President Trump gave were profoundly wrong. He said this is going to hurt 2. 5merican economy, trillion and so on. That is based on an amazingly and a veryed view low view of the private sector. It seems there will be no further gains in technology. It assumes that the American Economy simply cant adapt quickly and that the private sector simply isnt nimble enough. Thoughs thatalysis sufficiently shows that actually smart Climate Policies lead to more investment, more technology, more Economic Growth. Andrew, are there retaliatory here . Es i mean, some of the business community, some of the c. E. O. s mentioned this is a potential risk in the u. S. Did exit out of climate deal. If the Worlds Largest economy one of the biggest polluters in the world, if theyre dropping out of this deal, whats it gonna take, or not too muchake for some of these other nations, out of the 190 or so, to say im drop out as well . Weve seen no evidence of that. See a contrary, we strengthening of resolve. Tomorrow morning well, today, asia time, the European Union will announce a major new partnership, really will. Ing the they will forge new technological relationships. At energylook efficiency, Renewable Energy. It will forge a partnership in between theng world European Union and china. And, of course, thats just one thing thats happening. Were certainly seeing a now, chinaadership and europe being two. Indiana also that will india also will join us. The fact that china, the same week that President Trump announced the eadvice raition of americanchina policies, announced another 360 billion investment in Renewable Energy. Power plantsng of and, of course, theyre going to introduce an economywide cap china. De system in china this year invested internationally in other countries. So, you know, things are out there, happening. We dont send any notion at all that anybody is going to get off wagon. But, andrew, how confident are you on that . Extent,maybe to some china was doing more than it because, yourtly know, its always been compared to the u. S. , right . Counterpoint. He and so now, if you dont have the u. S. There, you know, does have thatl motivation, you know, to try to do more and to stay on track or they say, you know what . Without the u. S. There, you there onres nobody our back . Well, china is doing very much, bynk you very taking Climate Change seriously. Is asia, by the way s the region in the world that is most affected by Climate Change. China would be massively by Climate Change, vietnam worse. That thisfigured out is smart economics. They are doing exceedingly well in terms of cornering the market. Trump is basically saying, we care about this market. The paris deal alone has 1 of deals a year. Thats simply the commitments that all the countries have made. President trump saying we dont need to win those deals. The United States ought to be out there, trying to win those deals, because theres said. T deal to be now, china will also do very well. Who didntter modi, exactly come to power as a member of the sierra club, he wanted to promote growth. Why did he say that i have three gigawatts of Renewable Energy and im going to go to 100 by 2022, just seven years . In biggest increase Renewable Energy in the history of the world. Understandscause he economics. He understood that this is disruptive change. Its new industries. Its a new technology. Its training centers. Its investment. And its good business. Andrew, thank you so much for joining us, the president and of the World Resources institute. Coming up, were gonna continue of president n trumps decision. Certainly everyone has a strong opinion on this. Renewable energy developer, asia clean capital. Thomas abouto ask the implications for green business. Show, india on the and russia discuss trade and defense. Relationship has stood the test of time. Returning to our top story now, President Trumps decision to walk away from the paris been met byrd has protests at home and abroad. Teslas elon musk and Disneys Bob Iger quit white house roles. Apples sam cook and Facebooks Zuckerberg both said how disappointed they are. China and the e. U. , meanwhile, toressed their commitment paris. That to our correspondent, who is joined by guest. T tom . Yes. Straight to our next guest, the c. E. O. Of asia clean capital. Invested in by goldman and you work in the Solar Panel Industry here. What do you think are the implications of this move by the Trump Administration . Well, i think its been quite interesting to see the reaction domestically in the u. S. , primarily on two fronts. The first being the reaction of Corporate America and our companies. And its not just been companies thosepple or tesla or progressives who you might expect to come out and say, and, were for the accord we continue to, you know, plan to continue on with it. But also, some companies that a little less expected, g. E. , ibm and even exxon mobil, who said we believe that following through with the Paris Climate Accord is the right do. G to at the same time, i think its been quite interesting to see andreaction of local, state city governments to the earlierment by trump today. And, again, not just places like california, which you might know, onuld be, you the progressive end of things, but even i thought perhaps most interesting was the reaction to a comment in the speech in which President Trump beenaid, you know, ive elected the president of pittsburgh, not paris. And immediately after that, the mayor of pittsburgh came out publicly and said, well, we through to thew extent possible with the accord. Is, think what youll see on the national level, while the United States may withdraw, i be quiteres going to a ground swell of enthusiasm, industry andide of on the side of government, to really push through and try to live up to the ideals of the accord. And you obviously operate in china. What do you think the implications are going to be ground in china from private companies or local institutions . Sure. As Renewable Energy and rooftop Solar Developers here in china, our main market is the large commercial industrial market, so were doing rooftops, five, ten large rooftops for multinationals. Our primarily Customer Base is american, european and Chinese Companies who have here in china. What were seein seeing from ths that regardless of what the National Policies may be on sustainability, theyve all got sustainability targets. Theyve got targets to reduce carbon by 2020. Net zero ino individual locations. And the feed bak that were feedback that were getting from our clients is theyre going to push forward with those targets, regardless the u. S. Appens with pulling out of the accord. But do you think the decision by the white house gives, in at least, china and asia Chinese Companies an edge . Well, i think china has proven that they are sincere in not only tos, become leading manufacturers of but also Technology Leading consumers. So you dont see, as you did a ago, Chinese Companies Manufacturing Solar panels and sending them out to the rest of the world. You see them now falling through domesticr own consumption. China has been quite vocal that they are supporters of the paris that theyre going to do their part to try to contribute. And i think youll see that trend continuing even morphology this announcement even more following this announcement, china trying to step into more of a leadership role on sustainability. Are the potential opportunities for Foreign Investors here in china, in the space . Le well, the renewable market here, especially our market, which is distributed solar, is booming. Relatively high price of electricity. Youve got favorable government policies. Youve got a strong subsidy, which is production based. More roof tops here than anywhere else in the world. So its really just a recipe for the sector to take off. And what weve seen is its from a firedrinking hose, trying to take in all of opportunities that come our way and sort them into act on and ones that we wont. And i think for multinationals who are interested in this market, and are committed to being here and trying to make it theres a tremendous opportunity. Thank you very much. Indeed. Of asia clean capital, talking about the opportunities here in china. Companies mayse well take advantage of this decision by the white house. Thealso how companies in u. S. Are going to be powering cases. Onetheless in many yvonne . All right. Tom, thank you so much. There, joining us live from beijing. One feature we like to bring to our attention is interactive t. V. Function. With all that is going on, youve got to check it out. T. V. Go. You cannot only watch us live the previousf interviews. Thats where you can school, screen. Your you can also become part of the conversation. Send betty and i a message during the show. For bloombergis subscribers only. But make sure to check it out. Here is a quick check on the latest headlines at this hour. Cut reliance communications, saying some kind of default is, quote, a distinct possibility. Cut follows similar decisions by moodies and two union agencies. Risinge is battling competition and is said to be talking to chinese lenders about waiver on september payments of about a billion dollars. Luck appears to be smiling on the worlds biggest gaming hub. Biggeste recorded their monthly jump in more than three years. In may rose to 2. 8 billion, easily beating the bloomberg survey. Gaming stocks rallied on the news, reaching their highest levels in two years. And up next, australian Prime Minister saying beijing must the rule of law as china looks to expand its influence. This is bloomberg. Happy friday. Its 8 30 in singapore. Now just half an hour from the open of trading in the lion city. Equity markets ending the week on a positive note, after we did street continue to stretch through those highs, even after the u. S. Dropped out paris accord. Im yvonne man in hong kong. New york. Ty liu in youre watching daybreak asia. Lets get to paul. Paul . President trump has confirmed that hes pulling the u. S. Out of the Paris Climate Accord. Arguing that its an unfair deal that works against america. Appeals from World Leaders, political allies and opponents and leading corporate the accordying handicaps u. S. Workers and the economy. The withdrawal will come in late 2020 at best. And the president says he will push for a new deal. Tesla and spacex boss elon musk had urged the president to stick and has quit his white house advisory roles in protest. Climate change is real. Leaving paris is not good for america or the world. C. E. O. Bob iger is another to quit the white house. Hes resigned from the president s council. Facebooks Mark Zuckerberg said abandoning paris is bad for the u. S. Economy. C. E. O. Tim cook said hes disappointed be i the tried and that he disappointed by the decision and that he tried to convince mr. Trump to remain in the accord. This underscores the isolation the u. S. Under President Trump. Sides will the two confirm their support for the paris accord and the rejection protectionism. Lee said Climate Change is a global issue. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries, im paul allen. This is bloomberg. Paul, thank you. Time to see how the asia markets far thisng up so morning. The strength mostly in japan hitting 20,000. Japanese stocks looking exuberant. Topping 1600 for the first time december 2015. Last time the nikkei 225 the 20,000,me it hit rather, that was back in the late 1980s. Above this level just a few times since then. When it comes to the breakdown do have Energy Stocks leading the way, up about 2. 3 here. 90 of the nikkei 225 is on the rise this morning. Bench mark has risen more than 9 from the midapril low. Have consumer discretion stocks on the rise almost 2 . Auto stocksd powering ahead. Of fasthe od likes retailing contributing. That is the highest level in at least a year. Honda and yamaha, those are leading car makers in toak ya. We do in tokyo. Down for a second day, this as the greenback holds on to gains triggered by the private jobs of the u. S. , out ahead of official data due out on friday. Ining a look at some movers tokyo this morning, we have the mitsubishi, electric rising the most, and the retailing climbing the most in 50 months as Department Store up 5. 4 . May jumped thank you so much. Thats a look at the market. In the meantime, Global Defense asias most for highprofile security. Onference, australias Prime Minister Malcolm Turnbull says the rule of law and the freedom of the remain critical. Maintain and exercise our navigationeedom of throughout the region over the south china sea. And we repeat the calls that weve made and the solidarity shown with other nations in the region, including the ensure thats, to the rule of law is complied with, that no unilateral actions the south china sea, which would exacerbate that any and territorial disputes are resolved in accord with international laws. Does it put australia in a situation, given how reliant we are economically and withegically when it comes our relationship with china . We have a very strong relationship with china, a very strong, rocksolid relationship with the United States. Our wholeedrock of National Security. May i just say this to you, that to maintain and exercise freedom of navigation and overflight. Senatoru agree with mccains comments that china is acting more and more like a bully . Senator mccain can speak and very eloquently for himself. Had a very good visit here in australia. We were very honored to receive a very good friend of australia. Fors a wonderful advocate the australiau. S. Alliance. He is and has always been a great friend of australia. As far as the relationship with china is concerned, it is important that as china rises, as its economic power grows, as its influence grows, that it does so peacefully and in a the rights respects of all other countries. That is vitally important. President xi has spoken of making sure to avoid the trap. Hes referring back to the great history, the wall between athens they said thatre the real cause of the war was ofiety created by the rise athens and president xi is very this. Of it is very important that china, which has been such an enormous beneficiary, none bigger, of the peace and stability in the which hasic region, seen harmony over many decades, it is vitally important that china respects that, respects the rule of law and respects the principle that might is not right. Was our exclusive interview with australian Prime Minister Malcolm Turnbull. From our the latest asia government reporter, david, joining us live from singapore that shangrila dialogue. Good to see you. From the Prime Minister himself, chinas influence is growing, both economically as well as territorially. How much is that going to dominate the dialogue later here today . Its always going to be the elephant in the room, every time defense ministers and military meet. And this is the most important regional meeting for those defense people. The things theyre going to be looking at too, looming is whats goingi on with chinas naval ambitions, beense china has transforming itself from what we navalcall a continental near seas force into what has been described as a blue water theyre actually projecting power much further away. Own recently built their indigenous aircraft carrier. Theyve got more in the works. Now, aircraft carriers have a far sea projection. To project do that, your power far away, you need to have bases where these ships can go. Were seeing China Building a base way over in the western indian ocean. Ambitions as far away as africa. These are things that the Global Leaders need to contend with, the fact that weve seen this changing naval force in china have politicalto implications reverberating right across the region, yvonne. Mentioned about north korea as well, joining the and imploring china to reign in north korea. Where do you think the Prime Minister stands on that trump . Because we have heard the rhetoric from President Trump, saying military options are on the table. Where does turnbull stand . Think youre absolutely right. What were seeing from australia turnbull is this commitment to what he describes rocksolid alliance. In doing so, you actually hear very much the same policies coming out of turnbull, certainly when its talking about how to deal with north korea. Lets listen. North koreas conduct is reckless, dangerous and becoming more so. Leverage the greatest over north korea. And with the greatest leverage greatest responsibility. So we will do our part with sanctions, of course, but we look to beijing to bring the to bear on the regime to itsngyang to bring it senses, to bring it to its senses so that it ceases threatening the peace of the region with its reckless conduct. Speakingm turnbull there, of course, later today at the shangrila dialogue. Gets under way, hes got the keynote speech. Anticipated speech. Its going to be a very important speech outlining the governmentsalia Foreign Policy stance. Okay. Just to follow up on all of that, with President Trump quitting the paris accord, how much of an opportunity, david, is this really for china . Betty, this is a huge opportunity for china to there,y put itself out worlds most responsible leading nation. They can present themselves just as they did after we saw the pull out ofs t. P. P. , the trade accord. You saw xi jinping, presenting free as the bastion of trade versus the protectionism were seeing out of the United States. Isnt good s the climate deal is exis existel china. China needs to clean up its environment. But in terms of soft power, a huge opportunity. Thank you so much for joining analyzing the turnbull interview. And russiadia discussing trade and defense. Where they go now. This is bloomberg. This is daybreak asia. Im yvonne man in hong kong. And im betty liu here in new york. Prurps actions President Trumps actions on china and trade are pushing china and the closer together. That was made apparent at a joint press conference. Heres more. Chinese Prime Minister chung says his country will stick to its pledges on combating climate stressing the importance of trade allied to low carbon sustainable Economic Growth. China has a saying. Promises must be kept. And actions must be resolute. Is a worldwide call to deal with Climate Change. Invented bymething china. Chinese scientists are moving forward, based on International Results in this regard. However, we realize that since consensus, as a large developing country, we should bear our due responsibility. Lee held a News Conference with Angela Merkel in berlin on thursday, ahead of a twoday summit in brussels at which china and the European Union commit to free trade in a sweeping rejection of president protectionist policies. The e. U. And china have prepared obtainedraft statement by bloomberg that says clean energy will become a main pillar bilateral relationship, including in their economic relations. The two sides also recognized importance of developing global free trade and investment. Thats a direct quote. The discord with President Trump at the group of seven leaders italy last week prompted merkel to suggest the unreliablecome an partner. She subsequently held meetings as well asra modi the chinese premier. At the brussels meeting, the countries will work on a stalled investment deal and china will attempt to make progress towards economyofficial Market Status in the wto. That would make it more difficult for other countries to impose antidumping measures on chinese exports. Now, another asian leader, indias Narendra Modi is in russia. Has invited local companies defensiveghtech equipment in india. The two say that the enduring. Ip is lets bring in the chairman of apecs consulting. Hes part of indias largest business conglomerate. Great to have you what a week its been, right . Nato. Got we had g7. Now this paris development. Themeseeing the continued from the u. S. , retreating from the global stage, unraveling postworld war ii globe alliances. Chancellor no longer able to rely on those relationships. Does this impact the indiarussia relationship at all . Still stand the test of time . Youve got to have the Historical Perspective with the indiarussian relationship. It has been very clear, it obviously went still stand throd collapse of the u. S. S. R. Very muchhas not gone between the private sector, but on defense and energy, it has been growing. India, of course, has been diversifying part of its defense and trade. So has russia. You know, lining up towards extent. Some i think there have been some hiccups in the relationship, but relationship. Rong age old tested. We must never forget the perspective of how india always looks to russia. But has the world order been now, because india has been wary of russias cozy beijing. Hip with russia was one of the biggest supporters of one belt, one road. Moscow also a bit wary about to the u. S. As well. Is there really this political will to expand this bilateral relationship beyond just defense . I think both countries, india for assia, are looking polycentric world. I dont think anyone is looking bipolar world. From that point of view, the interests are aligned. Multipolaro see a world. And india and russia are a part polarity. Relationship with russia in the defense and energy side is still large. They are looking at building 12 new Nuclear Power plants in the private sector. So there is going to be a fair amount going on. Yes, it is not as exclusive as it was in the past. Both of them have been diversifying their commercial interests and political interests, that is true. But beyond defense, do you other opportunities then in this relationship . I think this is the challenge. This is the challenge, which modi, Prime Minister modi, is in thed to talk about st. Petersburg forum, where hes unveil the outline of his of what he thinks the indiarussia relationship should be in the decades ahead. Numbers are very measly, under 10 billion. It hasnt grown much. Not beente sector has involved. Its mostly government to government. I think there has got to be india is quite keen to move on this. Defenseso looking for manufacturer. Part of the make india program. Russians,t, the private sector and the Indian Private sector can play a big role. We have seen one big deal in the sr oiltor between through a private equity, which is a commodity company. So we are seeing some of that. To go. Re is a long way yes. Certainly indeed. Were still waiting for some type of india e. U. Trade a free tradeal or agreement, which has not been signed. What are going to be some potential hurdles there on that front . See, this is a challenge with india, not only the e. U. But even in asia. We in asia always sort of worry about this issue, that india is a reluctant trader. Its very difficult, because of lobbies and political mindset on opening up trade completely. You the same thing happened with the rcep the u. S. In asia and and the f. D. A. With the e. U. Footdragging. En its a reluctant trader. It is going to take time till the domestic politics in india gets behind open trade. But i think, as a fact, that india is going in for a manufacturing. They will require india to open others. Th the e. U. And otherwise, it will be very difficult, given the global very change weve seen in manufacturing today. Just on the u. S. Side, so much of were hearing about u. S. Russia relations as related to President Trump. Its so negative, right, the Ongoing Investigation . What were the ties between russia and the Trump Campaign . And i kind of want to bring it all together and ask whether, you know, a closer relationship india and russia, how that plays in with the u. S. s and also toia india . It will certainly require nimble footwork on both sides. Itsa will certainly have relationship with russia, which is historic. It is certainly turned in a big towards the u. S. , on the defense side as well as the private sector side. Have verythe u. S. Strong private sector relations. India will have to do managing both on these relationships. And i think the way india has Foreign Policyt or commercial policy is to be multipolarity. Its not going to be one or the other. I think thats how it will happen. I think Prime Minister modi is doing that. Expected, and washington as well, as well as in moscow in week. All right. Much. You so avalonirman of apex consulting. You can get a roundup of that story and many more that you know with todays edition of daybreak. Also, the bloomberg anywhere app. Settingcustomize your so you only get the news on the industries and assets that you care about. This is bloomberg. This is daybreak asia. Im yvonne man in hong kong. And im betty liu here in new york. A quick check, latest headlines. Skype has undergone a comprehensive overhaul as it looks to keep up with services and imessage. T pioneered instant messaging, but the service has been seen as lagging. The new app has all of skypes Standard Services but adds integration, including youtube, groupsharing and chatting. A nigerian man is being accused in the u. S. Of using bogus oil reserves and assets at he Los Angeles Energy firm founded, to win a 20 million subsidiary of icbc. He is said to have convinced the bank he had 1 billion in longterm assets. Wire fraud. Ed with the worlds biggest plane has debut. Public stratodefounder separatefounder launch. It is powered by six engines used by boeing 747s. The rockets will be large enough small satellites in low earth orbit. Almost it froms us on daybreak asia. Time for a quick look at whats Bloomberg Markets. Interesting, looking at that plane. Just reminds me of the spruce largest wingspan ever. Anyway, moving to of course, its about President Trump here and that move out of the Paris Climate Accord. Here . Re the implications how did it change actually, i geopolitical machinations that we have going on right now with seemingly the European Union being driven china here . Im going to be talking to christopher. Hell be along to talk about peaking university. What are the implications when comes to other forms of the diplomatic ramifications. Absolutely. Weve got that. What have we got as well . Weve got actually the big, big the u. S. T of u. S. Jobs number. Thats gonna be huge. Seems like we have overlooked all this this morning. But looking for a pretty big beat here. Adp reports. People think theres going to be a surprise of is that report and itafter that report doesnt materialize. Fed looking to raise rates. And the worlds biggest of containerlessor ships. The bankruptcy came about, he said it was a lean moment for the shipping industry. Have, coming up. Betty . All right. Looking forward to that. Daybreak asia. M up with in and Bloomberg Markets, next. This is bloomberg. Thanks for watching it is 9 00 a. M. In hong kong. I am haidi lun. Rishaad i am Rishaad Salamat coming to you from bloombergs asia headquarters in hong kong. This is Bloomberg Markets asia. Haidi optimism surging through asian markets as u. S. Hiring data altering the Global Economy, japan hitting levels not seen for 18 months. Rishaad however, clouds building over washington as trump pulls out of paris