Deteriorates. The latest house price data could shift the data. Lets get started with a check on the markets. We are seeing u. S. Futures taking a hit. We have seen china blaming the u. S. For the breakdown of trade negotiations. They threatened to blacklist foreign currency and are investigating fedex. Some of those let decline. We have seen President Trump threatening tariffs on mexico starting june 10. That did not help investment sentiment. The dow was down 1. 4 . The longest losing streak since 2011. We saw a really broad selloff on the markets last week, marking the worst month of the year. It really came through. If everybodyee comes back. Take a look at asian markets. Nikkei futures pointed lower after that close on the u. S. On friday. It is a day where people receive house prices for the month of may. That will factor into australias decisionmaking. Be kospi. Cost despite its exposure to the trade war. Observing the queens birthday. This get a check on first word news with su keenan. Su chinas defense minister says the military will take action to defend beijings claims over taiwan and the south china sea. The minister defended chinas right to build limited defense facilities in the contested south china sea. He issued a warning against external forces, promoting the idea of independence for taiwan. Must be and will be unified. Any excuse notbe to do so . The Chinese Military has no choice but to fight at all costs for national unity. Germany come to the leader of Angela Merkels coalition is stepping down. Backing, after losing following a big defeat in the elections. Prompt ature could party exit, forcing Angela Merkel to form an alliance or face a snap election. U. S. Secretary of state mark mike pompeo says the Trump Administration is ready to negotiate with iban. Iran. In Iranian Military official has warned that u. S. Forces operating in the gulf are within range of his countrys missiles. Lawmakers in india are warning about a potential economic crisis after President Trump followed through on previous threats to terminate their designation. The move is set to take effect on wednesday. Nearly port products. 260ters may now lose million in benefits. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan and this is bloomberg. Shery china says it is willing to work with the u. S. To stop the trade war but blames President Trumps administration for the collapsing talks. They said it will not be pressured into concessions. Tom mackenzie joins us with more on this story. China seems to be hardening their position. Tom they will not be backing down. We had a number of actions over the weekend, including the release of a paper that gave chinas response as to why the trade talks failed, the impact this regime is having at what needs to be done to get talks back on track. They laid the blame at the feet of the u. S. Push every time china offered an inch. They were impacting the u. S. Consumer and would not make America Great again. In terms of where and how they get back to discussions, china is still open to talks, but to get a deal, there are three things the u. S. Would need to commit to. One is the removal of tariffs and the other is to reduce demand on purchasing. The deal isure that mutually beneficial and not onesided. Clear thatt very they are punting the ball back into the u. S. Court. Hopes onpinning their some kind of resolution at the g20, if the two president s are able to meet. Fore is no timetable meeting between now and then. Is the g20 that we are now focusing on. China is making it very clear where they stand. We have heard a lot of rhetoric from china. Will he see action before that g20 meeting . Tom some of that rhetoric has turned into action. Moves,the retaliatory raising the tariffs on u. S. Export items to the chinese 25 ,t from 10 to about also putting in place an unreliable list of entities and corporations that they say are either breaking contracts with chinese partners or pose a National Security risk, discriminating against chinese companies. Community, among the this could be used to put in place to retaliate against companies that have been forced because of supplies and software. This is a response to the hallway huawei. There were reports that fedex has been rebounding parcels from japan and china. As a result, the chinese have launched an investigation into fedex. Otherew was that companies could face similar action if the u. S. Does not walk back sanctions. Has torn upt china reducetial plan to exports of rare materials from china to the u. S. , should the central leadership decide to go down that route. China is turning its rhetoric into reality. Mackenzie in beijing, thank you for joining us. And president of the trade council, thank you for joining us. You heard tom talking about fedex and the chinese authorities getting interested in what it does in china. Is this a warning shot for other Companies Operating in china . It looks like both countries are settling in for a siege, rather than a negotiation, which is not good news for anybody. I think at the same time, it will be but the chinese are doing is a direct response to what the u. S. Is doing. Particularly u. S. Companies that want to get out of china. They have been talking about decoupling the economies. They are pulling away from each other. Have interesting rhetoric. One official said it could be 2035 before all of this gets resolved. With that in mind, what are your hopes for the g20 at the end of the month . What your correspondent said in beijing was spot on. There is probably not time to finish between now and then. The best to hope for is that they meet and agree that it is time to come back to the table and to be serious. Then we will see if they will get to the finish line this time, as opposed to the last time. Shery on those tariffs on mexico, the president is using Broad Authority to do that. Would you be able to explain where his authority and power comes from . Whether or not congress can actually rein in his authority . Statute called a the Emergency Powers act. It is a statute that we usually use to impose sanctions on countries with whom the u. S. Has Foreign Policy differences. It begins with the president declaring an economic emergency, that has to be something is outside the country. He is supposed to consult with congress beforehand. Once he does that, he has pretty Broad Authority. , i thinkarticular case he will probably prevail. Whatction he has taken is the statute permits. A vetoproof majority there have been objections, including his own party. See enough people willing to take him on, to make a difference. That it is that mean not yet in the u. S. Congress and it is essentially dead . Life support might be a better term. This clearly does not help. I think evidence that it will not help was the u. S. Trade representative arguing against the action of President Trump. Not only does not help the u. S. , i think it hurts all of his agreements. The president could change his mind tomorrow. He just got rid of the tariffs on china and mexico. Now he is imposing more on mexico. Bill, thank you so much. Podcaste host of the for csis. Still ahead, we will be live with the chairman for the 737 max 8. Up next, an economist joins us to talk about the big economic themes and play this week. This is bloomberg. Shery the new week kicks off on wall street. Investors are on alert to the what escalating trade feuds might have on the outlook. Rules and more earnings. Su keenan gives us a preview. Not off to a great start. Gloomy su is a gloomy outlook. Into the first chart. Fedex is now the target of china as they send a warning this weekend. China will be closely watching packages, allegedly misdelivered. China is using that as an example of how they can really push back. Lets look at bloomberg because the month of may, if it is a sign of how the trade conflict is affecting the market, it is a big sign. The first down month of the year. Tech stocks were among the biggest decliners. If we look at the snapshot, there is. Down more than 1. 4 . Rally. Seen this this is a make or break week. Two key economic pieces of data are any fracturing and neighbor. It will either change the course of the narrative or bump it up. Spotlight. Is in the it is at the lowest point since the merger that was engineered and hised by buffett company. It is a black eye now. Oming out with numbers it will be interesting to see how they do. Oil haske a look at how been trading in recent days. It is trading down in a big way. Are seeing a surge of a negative sentiment for trade and how that will impact the man demand. Paul thank you very much for that. Central banks look for to cut rates this week. Economistg in katrina. Anybody who find does not think that the rba will cut tomorrow. How unusualstrate this is, lets take a look at bloomberg. The white line is the rba. The blue line is the funds rate. I think this is the First Time Since the 1980s, which begs the question, where things really that bad in australia . Important to is appreciate that one of the key drivers for the bank of australia is likely to cut rates, the weaker consumption picture. Consumption is traveling in a weaker lane. Given that consumption is so important to the broad economy, that is an important facet. You have global uncertainty around the trade war and feeling quite insecure at the moment. Paul it is generally not one and done. Youne at what point do be the limit . When do you think they will be looking at other unconventional talks . Lee acknowledged that there is risk. There could be another 25 basis points to bring it to 75 basis points. It is important to look at the broader picture. Supportive fiscal policy that will really play an Important Role in that consumption sector. It will be more targeted for what rate cuts could do. When can we see the Housing Market stabilize . We will seelike signs of stabilization around the third and more so in the Fourth Quarter this year. We have more favorable fiscal policy measures, so we are not going to follow through with the proposed policies or any pullback to negative gearing. We will find a more supportive environment for firsttime buyers. On top of that, having these rate cuts that will flow through to a reduction in lending rates. That will be for the demand side , and on top of that, you have supply that has been happening. We see building approvals have been quite weak. Pricesld start to see later this year. Shery we are watching korea closely. We have seen a lot of headwinds for this country. This chart showing how markets have been pricing in a rate cut. Both dropping below the benchmark rate. How that is the korean economy right now . We have some brutal numbers over the weekend. Korea is really struggling at the moment. The weakness on the tech front is what is flowing through. And as really a concern consequence as well. Korea is certainly not immune to that decision. Paul i want to get your thoughts on the r. B. I. What are your expectations there . India is a little more domestic and the way that the government is looking to bolster demand. We are actually expecting that the r. B. I. Will hold in june. We are expecting a cut in july. We have seen 50 basis points worth of cuts. That is reversing the left end tightening that we saw last year. It looks more likely that it will be a july cut rather than a june 1. Our a reminder of exclusive coverage on tuesday and wednesday from the australian summit instantly. We will be joined by the ceo and chief executives. Stay tuned. This is bloomberg. Shery lets get a quick check of the headlines. The recent collapse of some carriers is a positive development for the industry, who he says has to many players. German airlines would be interested in a deal they restructured company. Have any korea says that three private equity firms have submitted final bids. The agency says private equity interest in the Company Comes from bank capital and indicate partners. Tencent, did not submit a final been final bid. Says the newspaper softbanks bid for a fund dedicated to tech start up not attracting much interest from large investors. South bank ceo once a more softbanks ceo once to find more options. Next, we will get an update on the timeline the boeing 737 max 8 from one of the planes biggest customers. This is bloomberg. The latest innovation from xfinity isnt just a store. Its a save more with a new kind of Wireless Network store. Its a look what your wifi can do now store. A get your questions answered by awesome experts store. Its a now theres one store that connects your life like never before store. The xfinity store is here. And its simple, easy, awesome. Su this is daybreak asia. Isstart with china, which willing to work with the u. S. To end the trade war will not be pressured into concessions. An official government report blames President Trumps administration for the collapse in talks and says the recent tariffs on the country will make things worse for all sides. The report also takes a swipe at trumps 2016s slogan saying the trade dispute has not made America Great again. Justgotiations are discussions. It is not an agreement. There is no backed tracking. Everyone says nothing is agreed until everything is agreed. Su it is too early for the u. S. Fed to begin cutting Interest Rates, at least that is the view of neel kashkari. He says despite increasing concerns about low inflation and escalating trade war the fundamentals of the economy are still strong. If it looked like the u. S. Economy were slowing down, job growth slowing down it if these were causing their debts businesses to retrench, the u. S. Could be at the fundamentals of the real economy on a slower trajectory. Even either one of those good because it for changing the path of monetary policy. I am not there yet. I take comfort that the job market continues to be strong. Su bloomberg has been told the u. S. Justice department is an antitrustopen investigation into google. It would be the Trump Administrations first step to scrutinize a giant tech firm. The u. S. Has been accused of allowing tech firms to dominate markets while european officials have received antitrust cases. Hong kong property prices reached an alltime high in may breaking the previous records set august in august. The gate for a 15th straight week rebounding on revised low Interest Rates and limited supply. Ubs said the most expensive Property Market will remain bullish for another decade, thanks in part to the population influx from mainland china. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Shery boeing has told one of the biggest 737 max 8 buyers, indian carrier spice jet, that the grounded planes should be back in the air in july. Lets go to our chief north asia correspondent Stephen Engle who seoul. He 75th agm in thehen it is one of biggest questions, when will the . 7 max get back into the air many regulators, not just the faa that have to sign off on the modification that boeing has been making to the software, as well as redundant sectors sensors and the like. One of the biggest carriers is indias spice jet and we are very fortunate to have the managing director here. Thank you so much. The big question is when will the max be back in the air. You said in july. That is optimistic. We live on optimism. It is a fantastic lane. We have flown it for six months without incident great it is great fuel saving, great engineering and cost savings. We were happy with it and our customers and we are hoping it gets back into the air as soon as possible. What we have been told by boeing is the expect the certification will happen by the end of june. That may be optimistic but we hope it is true. Is trying toaa make sure they have other regulators along with them when they certify a technical fix has been done. Expect we stephen is it optimistic other regulators need to be on board . China was the first to come out and ground of the plane, the faa much later. Scenario where it slides into india or should all done . Gulators agree it is ajay i dont think it is necessary all of them go at the same time. A fewk as long as the regulators agree, the u. S. And a few others, the plane should be up. Stephen what is india telling you . Ajay they have visited the faa, look to satisfy themselves. It is for every regulator to find their own level of comfort. Our hope is once the faa is satisfied and other regulators thesatisfied, after all scrutiny this plane has been through it is clear now this is the safest plane in the world. Stephen you like the airplane but must a frustrated. At a time as well when there are inclusions going on in the airline industry, jet airways an collapsed, do you have opportunity to the strike, but you dont have your key airplane in the air. Ajay it is frustrating. It was a good plane. We were flying it and this was the opportunity when we could have taken some space and market share from jet and we dont have our best plane. This is also about peak season, the season when traffic is at its peak. It is very frustrating but all we can do is hope. Stephen how do you fill the void . We heard from tim clark of emirates. He doesnt think this plane will be flying until the end of the year and if not the beginning part of next year. You need to fill that capacity with other aircraft, you must be looking at whether airbus will be launching that is longerterm, but what are your mixed fleets . What we are trying to do is take aircraft from jet airways. Hard to get looking some of those planes to start flying in the last 25 days, taking 25 of their aircraft which have started to fly and we are taking a bunch more. We are trying to fill in the gaps that we can using those planes. Stephen you have 13 maxs now sitting on the aircraft the tarmac. Are you looking at other aircraft not just from jets . Ajay we always continue to look because it is clear spice jet and india needs more aircraft. If the max does not come back in a short time, of course all options are open. The first option is to look for our system is geared towards this airplane but we cant rule out the possibility of looking at airbus and other aircraft. Stephen can you give any kind of it idea of compensation . Airbus is offering us aircraft in that medium to , the 321 series of aircraft including the lr and xlr. We are also looking at at least at an aspirational level at the widebody aircraft because there is a space that has been cleared. India needs to take its passengers to the world. Jet was fulfilling a lot of that job. We are looking to see if there is a possibility which is spice jet can fill in some of that which is a hard thing to do. The jet aircraft are not necessarily in the best condition, but certainly there is space which indian carriers [indiscernible] stephen can you do long haul with a single aisle, onestop in london or was that ajay that was the role of the max. We had started to use the max for flights to hong kong and we were planning to use the max for flights at least to eastern europe. Been delayed in those plans, but i guess once the max comes back, certainly the option of flying longhaul onestop is available. Stephen do you like the concept plane, that boeing might launch, which was put in between the 767 and it is not launched yet. We are hearing about it what we really need to see what the plane is all about. We dont have much details. Stephen how about geopolitics . The gop the trade war is dampening interest. Pakistan airspace is closed. What are you hearing on that and how has it impacted you and the trade war . Ajay though trade war is ever good for the world. The economy is slowing down, global trade, that cant be good for india as you saw. India had slowed down in the last quarter. Hopefully a strong and stable government we have now in india, we expect that they will make significant moves to speed up the economy. The number one rarity is important. They need to get investment going. We will see several measures to stimulate the Indian Economy [indiscernible] all of our flights which are for the middle east and for destinations in middle asia. They have been impacted. We hope that it can get sorted out soon. June is thehat month when that stephen chairman and managing director of spice jet, thank you for being first on member television. We will send it back to you. Much more from iata in seoul. Paul there is much more. There will be interviews from the agm with qantas Ceo Alan Joyce live later this morning. And you will hear steves full precision with lufthansa ceo and the emirates president s. Coming up next President Trump is on his way to reunion with theresa may vary will look at his visit. This is bloomberg. Mberg. Shery this is daybreak asia. I am shery ahn. Paul i am paul allen. President trump is heading for the u. K. He has a busy agenda, attending a world war ii ceremony of remembrance. There are issues of geopolitical issues on how to treat wally Jodi Schneider, so might not be an easy visit for President Trump based on some of those headlines we have seen coming out from britain. Reporter that is right even though there will be idea pomp and circumstance and he is meeting with Prince Charles and queen elizabeth, he did say things that got him attention in the british press. One was he thought Boris Johnson, the former foreign secretary, would be an excellent Prime Minister, candidate to replace theresa may and also that nigel farage would be good to lead the brexit, the exit from the u. K. That e. U. , the u. K. s exit, so that got him attention. But it is not known how seriously people are taking that. He may have said something about meghan markle. The white house is saying it is fake news, but he got in the headlines ahead of this visit. Shery that viral tweets of him calling her nasty or Something Like that. How seriously are the british taking these comments . President trump is well known for making undiplomatic statements. Jodi that is true and they seem to be getting used to it. Over the weekend someone on television said they are used to him doing this. The real question here is whether any of this will be taken seriously in the whole Brexit Process and in theresa mays decision on who will succeed theresa may. Probably not they are probably not going to pay a lot of attention on that score so the question will be whether he undiplomatic else during his visit. He said he wouldnt mind meeting with cory Johnson Boris johnson and nigel farage. Largely pomp and what is expected. Shery thank you so much. Our Senior International editor joining us from sydney. Lets go to india or the gdp slowing faster than expected and increasing calls for the reserve bank to cut its key rate again. It is also facing another problem as President Trump has grabbed its status as a developing nation. Joins us with a look at Prime Minister modis challenges. Lets start with fridays gdp numbers. Why did they fall short . Kathleen looks like a number of things at once, sharing going to 5. 8 . That was compared to 6. 6 in the Fourth Quarter. People who are looking for it does look like the economy is putting on the brakes. Lets look at things hitting indias economy or even hold on to the type of growth rate it has been seeing recently. If we look at the list, you can gott with the fact you have growing trade tensions. Here is the chart. You can see five point 8 . Indias growth rate 7. 8 , doubledigit growth. This is weather has been pressure on the bank this is why there has been pressure on the bank. There have been calls for more Government Spending with Prime Minister modi winning his second term so ahead of a we will see more of that. In terms of the list of Things Holding it back, with domestic demand, it is weaker and heart farmers are facing debt. The Global Economy is slowing so there is less global demand, rising trade tensions and the u. S. , not just the trade battle india faces but this move by trump. Farm output, one of the biggest, part down 0. 1 . Shadow banks, nonfinance companies, gotten pressure, they are pulling in lending and growth is too slow close or one million workers per year so these are all again challenges. He has announced on his second day of office he will raise the farm support back in february as part of his Reelection Campaign for 12. 5 billion and reserve bank of india meeting to cut the key rate and try to boost liquidity, so a lot going on at once. And as if to end the u. S. Designation of india as a developing nation came at a bad time as well. Hasleen it certainly although in the first place President Trump did warn of this in february that it was pending and he waited until after the elections and mr. Modi got elected to take this step. If you look at what is going on in terms of trade, you can see the large and persistent trade deficit nowhere near as large as chinas trade deficit but nevertheless getting bigger for the u. S. With india. That is why it has been so much on Donald Trumps mind. There were duties prohibited on 5. 7 billion of exports to india in 2017. This has been a thorn in trumps side but india shooting back saying this could cause recession, there a big problems for indias economy now. We will see what they can do in terms of moving ahead but you know some of their key exports will be affected, agriculture being one of them. It is a sensitive spot for donald trump if he tries to hammer out a trade deal with china, hammering on mexico as well. The new finance minister of india will have a lot on her plate. Shery thank you so much. Error Global Economics and policy our Global Economics and policy editor there. We have been following the treasury markets as we see it rally. Jpmorgan making its latest call bythe 10 year yield, saying the yearend yields will fall to 1. 75 . The latest call on the 10 year yield was 2. 45 . We know the 10 year yield has been at the lowest level since 2. 146 er 2017 falling to on friday and now j. P. Morgan cutting the yearend 10year from 2. 45 t to 1. 75 as we continue to see the treasury rally and investors speak. Brutal for every asset class except bonds. Forave these numbers quarter Capital Spending. First quarter Capital Spending rising to 6. 1 year on year, the estimate had been for 2. 6 so a big beat especially considering the challenges japan faces, First Quarter rising and we see the u. S. Dollar continuing to weaken against the yen. Shery it is really interesting because we were expecting more of a slow down it comes to these numbers. Pext would these ca numbers. Was for a slow down now Capital Spending year on year gaining 6. 1 and there might not be much he will for the hawks much fuel for the hawks debating the sales tax hike. Perhaps upwards vision to the component for gdp numbers june 10. We will be waiting for those numbers soon. More ahead on daybreak asia. This is bloomberg. Bloomberg. Paul traders are betting the rba will end a pause on Interest Rates as australias recordsetting expansion streak is under threat. Lets bring in Michael Heath for more on this. Everyone says it will be to cuts, the first one tomorrow, but why is there so much certainty they wont stop at one . Michael the rba will keep on finetuning. We saw new zealand indicating one and done. That historically has not been the rbas way. Low for 2. 5record years so we dont have much to go on. But they raised the forecast in may. They had growth at the end of this year potential economy level of potential. It said clearly it was predicated on market prices which was two rate cuts. That is what they are expecting. What are we going to look for after the meeting to gauge the state of the economy . Michael it is good question. What happens is based westpac have a dramatic a terrific record of calling the rba. Predicting three cuts. In herlso is strong analysis of the economy and she has four cuts of 0. 5 the middle of next year. Given what we know about globally with unemployment, inflation and wages, hard to see a half percentage point of cuts will do enough to get the rbas inflation back to target but they will do two and then take a look and check out the lay of the land from there. Paul a few years ago the 1 when it comes to rate cuts, now we are approaching 1 . What is the option . Michael 1 when it comes to rate he said he met at the peak of the mining boom when we were 4. 5 , and there has been a negative which no one expected. One of the worries of the rba had been people would start hoarding cash if rates with below zero. It hasnt happened internationally, it is below 1 lower bound. As for the question of qe, i get no real sense they would be looking at that to return inflation to target. Canon theyly be the pull out if on a plane sparks and we go towards recession. Go towards recession. Shery lets get a check of markets. Futures looking like this, under pressure for all of the futures down. 6 . Housing price for numbers coming up at the top of the hour, rba Rate Decision as well. Nikkei futures under pressure three sessions of losses for the japanese nikkei. They are around the lowest level since february but the Capital Spending numbers were positive minutes ago. The kospi is unchanged. We are still looking unchanged looking closely at the economy as exports fell for a six straight month. Plenty more to come. This is bloomberg. Paul asias major markets are about to open for trade. , good evening, i am shery ahn welcome to daybreak asia. Paul our top stories this monday, it asian stocks start the week with no clear sign of a trade war truce. Morgan stanley predicts a recession if the dispute gets worse. It has not made America Great again. Conditions are, building on the aussie dollar, traders are building on multiple rate cuts from the rba. Japans nikkei trading like this, down 1. 3 , not surprising given the strength of the japanese yen, which is holding near a six month high. Also falling for fourth consecutive session around the lowest level since february. Just a few minutes ago we got First Quarter Capital Spending numbers coming in better than expected, with business is accelerating to gains of more than 6 . The japanese yen is holding up 108, below the 109 level. Take a look at what the kospi is doing, down 6 10 of 1 . All eyes on what lawmakers and policymakers there will do after we saw experts exports falling for six months. We have seen semiconductors taking the brunt. Semiconductor exports down 30 year on year. We are hearing bank of korea runner speaking at a conference saying that uncertainty over the future of global length is growing. That talking about the trade tensions that continue around the world. We have just had a little bit of breaking news out of australia. They have announced the property prices are showing the smallest monthly decline since may. If feels they have passed a house crisis falling at 4 10 of 1 . It does dovetail with some research that shows the new topping 16 . Es it looks like there may be a flaw in property prices. Click check on the markets. About a fifth of 1 . It is difficult to get a handle on things. We have a staggered open and australia. It is early days. Holdinghe aussie dollar reasonably steady at 69. 29. This is ahead of the reserve bank of australia. Cash Rate Decision on tuesday. Whats gethere is a check of the first word news with su keenan. Latest onrt with the the fed. It is too early for the fed to begin cutting Interest Rates with a view of minneapolis fed president. He says that, despite increasing concerns about low inflation and an escalating trade war, the sentimentals of the u. S. Economy are still here. If it looked like the u. S. Economy were slowing down, or if job growth was slowing down with tariffs and there were causing businesses to retrench, it could put the fundamentals of the real economy on a slower trajectory. Either of those could because for changing the path of monetary policy. I am not there yet. I take a lot of comfort from the fact that the job market continues to be strong. Su chinas defense minister said the u. S. Will defend over taiwan and the south china sea. Speaking up a conference in singapore, the minister defended chinas right to build facilities in the south china sea. He issued a warning against external forces, promoting the idea of independence for taiwan. Be, and will be unified. We must be unified. How would there be any excuse not to do so . If anyone dares to split taiwan from china, the Chinese Military has no for choice but to fight at all cost. At all cost for national unity. The leader ofw, germany, and or merkels merkels angela Coalition Partner will step down. She followed a big defeat in the European Parliament election. Role in thea key decision and it could prompt her parties exit. E merkel to form a new alliance or face a snap election. U. S. Secretary of state mike pompeo says the Trump Administration is ready to negotiate with iran without conditions. Irans Foreign Ministry says his comments dont demonstrate a change in u. S. Policy on washingtons approach towards the u. S. Policy. It needs to be corrected. An Iranian Military official warned that u. S. Military officials operating within the gulf are within range of the countrys missiles. Global news, 24 hours a day, on error at tictoc, powered by more journalists and analysts in more the 120 countries. This is bloomberg. Shery china is willing to work with the u. S. To win the escalating trade war, but blames President Trump and the administration for the collapsing cause. Officials say they will be pressured into concession, even as they wrap up retaliation. Joining us now is derek wall bank. China could be something similar to what the president has done, banning huawei. They are looking into blacklisting some foreign firms. China is putting up a list of companies that have acted are still trying to see what all of that will entail. There is a lot of question going right now as to how far china will deal with that. China has said some of the concerns might be a little bit overblown, but you can see a little bit of the u. S. Concern when you look at fedex. They mistakingly ship package from japan to china and instead put it to the United States. They said it was not intentional, but china has run off an investigation. As tois some question what china will be able to do with this list. How far they will take it, where it will go and what it means for u. S. Companies. Paul what does it mean for u. S. Companies, derek. Does this look like a shot across the bows . Should u. S. Trading in china be a little nervous at this point . Derek i dont believe anything in this life is a coincidence, certainly not an geopolitical affairs. China has said that some of these concerns are overblown. I think the fedex matter is a little bit different from the rest of them. Certainly, if you are looking at a list like this, if you are looking at a response like this and you say to yourself, what are the companies that have gone along with the u. S. In terms of thosections on huawei, could be companies that i think a lot of International Analysts are watching to see how far china goes. Tohink it is important context that all of this is happening just following the shangrila dialogue in singapore, were china got a much more favorable reaction than people were expecting. Amongis a lot of concern nations herein Southeast Asia wanting this trade war to dissipate. Wanting a truce. Wanting some deescalation of tension immediately. Shery that does not seem to be what is on the cards for President Trump at the moment after threatening to hike tariffs for mexico as well. Have we seen a heartening of washingtons stance right now . Not only towards china, but towards the rest of the world when it comes to trade negotiations . I think one of the important things with the u. S. mexico Terror Threat is the idea that tariffs are extending beyond trade. Tariffs are seen as a way to execute your geopolitical inning geopolitical aims. That is prompting concerns around the world about where those tariffs could be used in the future. You are seeing concerns everywhere from europe to the asiapacific that, if there are serious gaps with the United States, tariffs might be a response there. I think that has been particularly unsettling to a lot of folks. Certainly, the white house has come out and clarified that they are indeed serious about the tariffs. That was not an empty threat. They are looking from looking for concrete action from mexico to stem undocumented migration north, but they have not really outlined exactly what mexico needs to do to prevent these tariffs. It is still a bit nebulous, even though there is a threat of 5 tariffs on everything the u. S. Imports from mexico going into effect later this month. Paul Bloomberg News editor derek wall bank wallbank. Thank you for joining us. Its bring in bloombergs mliv strategist for a look at whats in store for asian markets. Mark, i have a chart here on the bloomberg that sums it up. We have seen futures headed into bearish territories. This is generally a good indicator of where things are headed. Is triple low is moving at 200 day average. What does this tell us . Pretty bleak start on monday. The first trading day of the month. If anybody has any doubts that the risk aversion was not going to continue, there it is in full force. The contract jumped lower this morning and is still heading down. One of the things that will probably make it worse for asian markets is that some of them were still higher by the end of friday. Some markets are still up for the year. Considering we are in the last month of the second quarter, investors just want to lock in those who profits they have left. They want to lock them in before the month ends. This is really quite a precarious position for the remaining markets that have not fallen. That is not good news. We just saw this morning that jpmorgan has lowered their forecast for tenyear treasury. Which is pretty dramatic, considering yields have fallen a long way. Jpmorgan appears to be getting worse before it gets better. The whole risk aversion mood looks like it is accelerating. We see the dollaryen going lower. The whole thing is collapsing. It looks very negative for the week ahead in asia. Is making pretty bold calls. They also call for 100 basis point cut to the cash rate here in australia. Lets take a look at some of those asian markets. That old saying doesnt really look true. We look at the topics, the hang seng, China Enterprise index, these look to be on the brink of erasing those 2019 gains. Mark exactly. I think it will make people more defensive. They may have thought that may was a oneoff, that things can get better, thats not the case. I think from asias point of view, what really brings it front and center is that donald trump took away some of the exclusions for india. That was pretty unexpected that was a pretty unexpected move. It was not on peoples radar. Beico was a shock, india may a bigger shock to people in asia. It shows that nobody can escape the attention from the United States. It really just drives it home to the rest of asia that Everybody Needs to be aware that these things are not good. On, itsfour is going going in unpredictable directions. India andhave australia making great decisions this week, how much do Central Banks in asia, how much leeway do they have to upset some of the negative impacts from these trade tensions . Mark australia is very much expected to lower rates. They might not be the only one. There are probably more rates to come in that direction. Australia cash rate may go down to 1 or lower. They certainly have some room. India has a lot of room with shortterm rates at 6 . They have plenty of room to cut if they need to. They will want to take account of the fact that their fiscal situation may need to improve slightly. They might not be too impressed. Yes, a rate cut from india is on the cards. What donald trump did over the will put more pressure on the central bank in india to lower rates quickly. We could see to rate cuts this week across the region. Mark, thank you for joining us. Mliv shut it cranfield in singapore. Mlivfollow strategist Mark Cranfield in singapore. You can follow us. You can get a rundown in one click. There is commentary from bloombergs expert editor. You can find out whats affecting your investments right now. Paul coming up on daybreak asia. Fidelity international will tell us what to make of all the bonds and market signaling imminent to signaling. Shery President Trump set to make his case against huawei as he needs theresa may in london. This is bloomberg. Steppedapanese company up their Capital Investment in the First Quarter despite growing trade tensions and a global slowdown. For more, here is our japan and Korea Economy paul jackson in tokyo. What is keeping these businesses optimistic . J. that is a good question. This is surprisingly strong data. We saw a 6. 1 gain year on year. We were expecting a slowing to about 2. 6 . What is holding out . Thatve seen in the figures nonmanufacturing Capital Investments are staying strong. Demandsls to olympic economyhrough the still. Also japans labor shortage is still ramping up Capital Spending to automate processors in order to meet the labor shortages. Wethe nonmanufacturing side, can see that we do have fall on a quarter on quarter basis. A drop of 1. 7 . That plays in more to the trade tensions. The doom and gloom about the future. The overall figure, its up. Paul yes, it is up. But one swallow does not make a summer. Can have any implications here for gdp . Gdp, if wethink the look at the quarter on quarter figures, doing a rough calculation through looking at previous data, i would say that this could even lead to a revision up of gdp. 2. 1 , which was surprisingly strong, given all the fears they are out there about where the Global Economy is going. If you remember, gdp was up 2. 1 in third quarter. This figure could bump it up another 0. 4 to 2. 5 . I do caution that there are a lot of other factors that they use in the revision of gdp data that comes out in a week. Shery does this mean that the latest numbers will boost the case for those sale tax hikes to go ahead in the program . I think on the basis of this figure, you have to say this strengthens the case of the hawks in japan who want to raise this tax. These are the people, like Prime Minister abe who were saying, look, things are not going that bad. Japans economy is holding up better than you might expect. We are in this position to continue with this tax hike. I think the domestic data flow is helping the case to continue with the sales tax hike. I think we also need to remember that markets are not looking good at all. You have a strengthening yen, and there is nothing that gives japanese policymakers the like strengthening yen. The markets might play a bigger factor in the decision. If you remember, we had a Bloomberg Survey of the economist not so long ago. The economists said the biggest factor was the markets that could really sway the decision at the last minute. Bloombergs japan and Korea Economy editor paul jackson in tokyo. Thank you for joining us. President trump has a busy agenda when he gets to the u. K. He will attend a world war ii memorial of remembrance. There is also geopolitical tensions and different approaches on how to treat huawei. Bloomberg news Senior International editor Jodi Schneider is here in sydney. We just had some breaking lines from the president as he prepares to head over to the u. K. He says he may meet with Boris Johnson and nigel. Im sure those would be interesting meetings. Endorsement to Boris Johnson, breaking with that tradition of not commenting on other countries domestic politics. Jodi president s before President Trump had not weighed into local politics, certainly before a state visit. The President Trump is notoriously unpredictable, and he did, over the weekend, make headlines for saying that he thought Boris Johnson should theresa may. President trump said he would make an excellent Prime Minister. He also said that nigel should be appointed. He was given advice to the people of britain that they brexit and about leaving the eu. Those were controversial statements and he said he would like to meet with both men, even though he is to meet with theresa may. That is supposed to be one of the focuses of his business. We will see of both meetings are set up. Shery President Trump on the heels of that visit to japan, which was a lot of flash and flair, but not much when it came to substance. Is the u. K. Visit going to end up like that . Jodi it is really supposed to be focused on that pomp and circumstance. He will be meeting the queen and Prince Charles and laying a wreath at the tomb of the unknown soldier. The white house is saying they want him to focus on the pomp and circumstance. That is what they are looking for. Theresa may as well. There are no policy decisions that are expected to occur. It is also expected that, even if the ways into british politics, very few people are that thatse that, probably not going to have a fact on who succeeds theresa may. Paul there is one issue, the metal of the matter of huawei. The u. K. Seems to have adopted a conciliatory stance. Expect President Trump, who has been vocal in the criticism of huawei, and the u. S. Has now taken action executiveawei with an order and moved by the Commerce Department to stop them from doing business with u. S. Companies. We could expect to here from President Trump on that. Paul our Bloomberg News Senior International editor Jodi Schneider. Thank you for joining us. You can get a roundup to get your days going in todays edition of daybreak. Bloomberg subscribers go to dayb on their terminal. Its available on mobile in the bloomberg anywhere app. You can customize settings so you only get news on the indices and assets that you care about. This is bloomberg. Paul a quick check of the latest business headlines. Top male will receive a 51 stake. The governor tries to develop a Global Industry leader. The transfer agreement does not involve any payments. They speed up the structure in industries with overcapacity. Will the agreement, baowu own 55 of magang steel. Shery three private equity firms have submitted final bids of the gaming company. They say the private equity interest comes from kkr, bain capital and mbk partners. Which wasencent, widely expected to join, did not submit a final bid. Emirates Airline President said boeing 737 maxwell on mike lee be back before the end of this year. They say that is because of the fallout in cooperation according to the Aviation Administration and other national regulators. Shouldve said the jets be flying again by july. I would say december would be a time that i dont believe it will happen time, but i dont believe it will happen before that. Local regulators are having a difference of opinions they will prove the aircraft to fly anytime soon. Paul plenty more to come on daybreak asia. Andave markets in japan hear and ausdrill you a little weaker right now. Stay with us, more in a moment. This is bloomberg. Su this is daybreak asia. Willing to work with the u. S. And an escalating trade war. Official government claims blames President Trumps administration for a collapse in talks and says the tariffs on china will only make things worse for all sides. A swipe atalso takes trumps 2016 campaign slogan, saying the trade dispute has not made America Great again. Negotiations are just discussions, it is not an agreement. There is no socalled backtracking during negotiations, everyone often says nothing is agreed until everything is a great. Su u. S. Secretary of state mike trump says that administration is ready to negotiate with iran without conditions. That irans Foreign Ministry says his comments dont demonstrate the change in u. S. Policies amid u. S. Approach needs to bemic corrected. An Iranian Military officer has warned that u. S. Forces operating within the gulf are within range of its countries missiles. To justice, bloomberg has been told the u. S. Justice department is preparing to open investigation into google. It would be the Trump Administrations first major step for anticompetitive conduct by a giant tech firm. The u. S. Has allowed tech platforms to dominate the markets, while european officials have aggressively pursued antitrust cases. Chinas Central Bank Says the government takeover of the bank was an isolated case. While revealing the seizure was caused by misappropriated funds of the shareholder. Abb oc statement says they have no plans to take over other institutions. Chinas chief security regulator regular said he is confident the markets are stable and healthy. A day, ons, 24 hours air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan, this is bloomberg. Paul thank you for that, su. Lets get a check of the markets right now. Currently weaker by more than 1 . The topix getting pretty close to wiping out all of its games for 2019. Here in australia we have the asx lower for two thirds of 1 . We are also waiting on a decision from the reserve bank of australia on the cash rate on tuesday. We are expected to see a 25 basis point cut there to a new record low. The kospi is interesting. Nevermind the trade war. The trade expose korean index higher by a bit of a quarter of 1 . Building on gains from thursday and friday of last week. Shery perhaps expectations for cuts did not bok go as planned. Its turn to the impact of escalating trade views on the market, and what this might do to the global outlook. Asian stocks started on the back for in the wake of these trade war jitters. A standup between the worlds two largest economies deepening at the weekend as china blamed the u. S. For the latest breakdown in talks. We are now watching President Trump and first lady melania headed to air force one. They are now headed to the u. K. They are starting their state visit in london next week. Speaking trump may be to Prime Minister theresa may on and thoseawei, efforts to rein in the Chinese Telecom giant. The giant the president is now headed to europe. This coming on the back of more tariffs being threatened on mexico, not to mention the japan trip just last week while we saw a lot of pageantry with Prime Minister abe hosting President Trump in japan last week, and also his first meeting with the new emperor. He is headed to europe. We have heard the president say he may meet with maurice johnson, and also Boris Johnson and nige. L. In favorite to succeed theresa may as Prime Minister. Sayingh some media is that might not be so welcomed by the u. K. Government. Lets bring in head the head of Investment Solutions to discuss all of the latest trade tensions and market lows. He joins us now from hong kong. Great to have you with us david. We continue to see these new tariffs threats from every side, whether its against china, and against mexico, even against the eu at some point. The president did delay those potential auto tariffs. Headwind,big of a trade tensions, this trade war could be on the economy, how likely is it that the Federal Reserve could throw in the towel and just do what investors want the fed to do, just cut rates . It is not at all obvious that they can. Although the market right now is focusing on the potential impact of growth to the trade war. The first order of effect is up for pressure on inflation. Iny will actually get caught a situation where they might want to cut rates to ease the dispute. That is in the face of rising inflation. They cannot decide which of those two it needs to save. Shery if we see the fed on hold for a longer term, it could be a positive signal for emerging markets. What happens if you see the dollar also strengthening on haven demand . Not be sot would positive for emerging markets. I am not convinced that will be the case, because that dollar strengthened more than it typically should through the actual face of the Interest Rate rises. It actually sits stronger than it should at the commencement of imperative on hold rates. Theersonal view is that dollar will remain stable from this point on. I am constructive with emerging markets. Paul to your poor, lets look at the to your point, lets look at the chart on the bloomberg. As as american markets have taken something of a beating due to the trade war. You say that you do have a favorable outlook. Constructor argument for us. David i think the first part of my argument is that i have been surprised how impactful the trade wars have been on a markets. As i said earlier, it is more my point of view that it is sex global outlook. I suspect the market was looking for some trigger that it was running to an expensive level, and trade wars happen to have been the one. I dont think that they will be resolved quickly, the two sides seem distant as seen from the press conference on sunday. I do believe that that level of volatility, the translation of that volatility in the markets will persist. Once that is settled i think we will return to an government were emerging markets look constructive. Thehe Central Banks around world, including the u. S. , are on hold or are looking to cut this reach for hold that we saw two or three years ago, will come back to the fold, than the risk on assets will have a natural demand which was not there this time last year. Paul one of the key risks that you see is a risk to earnings disappointment. The longer the straight disputes with china and mexico drag on, are the greatest risks to earnings must be getting. Moment we are the not seeing too many signs that it is feeding through. But if the trade wars go on, that is the risk your it that is my second biggest worry. My biggest worry is that we get a hawkish central bank. To a degree, the recent developments have actually come slightly. If we have a hawkish central bank, i think this reach for yield my dissipate, and that would cause a flow away from the risky assets, and probably create more volatility in the market than an earnings disappointment would. Shery investors are taking the safety of treasuries. We have seen jpmorgan cutting its year and target for september 10 year yield to 1. 75 and 2. 45 . That is a dramatic cut. Where does the economy go from here if you take the bond market as a cue . David i am not on the same pages that forecast of 1. 75. Seeing a number that lowe would require Interest Rate cuts. To get Interest Rate cuts i think we would need to see significantly lower growth than what we are seeing, or perhaps some kind of slowdown in inflation. I am expecting the 10 year stay about 2 for this year. Are you seeing in terms of yield, the search for thed, and at the same time, defenses given the worry about the economy . Where would you go . David there are a couple of places. The point i would make when you are reaching for yield, you want to diversify as widely as you can. Havef the investors dont a large exposure to the asian market, relative to the economics of asia. I have been my did to have a more balanced portfolio there. There are pockets of value. European highyield looks to be reasonably well valued, given the outlook for that part of the world. Shery david, thank you for joining us. David buckle of fidelity with the latest on the markets. Dont forget our interactive tv function, tv. You can catch us live, and catch up on past interviews and dive into the bloomberg functions that we talk about. Plus, become part of the conversation by sending us instant messages during our show. This is for bloomberg subscribers only. Check it out a tv. This is bloomberg. Paul this is daybreak asia. I am paul allen in sydney. Shery President Trumps threat of increased tariffs on products coming from mexico to the u. S. Is not sitting well with global automakers. Exit code is a largest maker of auto parts. The largest carmakers lost 17 billion in market value during friday trading in the u. S. Lets bring in bloomberg steve. Ce auto on the bloomberg showing how much automakers have depended on mexico, not only for the u. S. , but to latin america and europe. You can see the production and capacity have steadily been increasing in the last few years. Impact will this have on automakers operating in the country . Mexico exportsat of cars made thereto the u. S. , it is about 55 American Brands and about 28 japanese. Only about 11 is german. The impact is rather big, huge. But what is also a huge impact to the industry as the auto parks autoparts maker. American axle has already indicated their earnings will be impacted by 10 to 15 million from the u. S. China trade. But the u. S. Mexico trade on auto is much bigger. Manynk we should expect times more than the 10 million to 15 million that will be impacted specifically on autoparts suppliers. It was on the campaign trail back in 2016 that President Trump was expressing a in the u. S. Auto industry. But how did this set the country up for auto investment . Announcementcent on the 5 tariffs, probably going up to 25 , really throws a wrench into the auto industry. The automakers make investments on longterm decisions. They are looking at how to maximize their resources over a period of 510 years. With these backandforth trade tariffs, announcements of these , it really throws a wrench into the whole thing where they are not even sure now a very going to make any more investment into the auto specifically in north america. How will they allocate that resource. Will it be in the u. S. Or in mexico . Thinke auto industry, i downwe will see is a dial of investment with the economy or auto sales slowing down. That is not really a good sign for the entire u. S. Economy. Shery will these automakers take a hit and deal with margin impressions or will they start passing on those calls to the customer, and when . Steve it depends. If you look at the u. S. Auto industry today, auto sales are slowing down. It is really difficult for automakers really to pass on that cost into the consumer. I think it is mostly going to be enough by the automakers until the economy picks back up a little bit, or auto sales picks back up a little bit. Its easier for automakers to pass on that cost. To answer your question, i think it will be picking up taken up by automakers. If you look at earnings the next quarter or the next year, there will be a lot of headwinds for automakers and auto suppliers. Shery already a troubled and challenged environment for carmakers. Thank you for joining us. Bloomberg intelligence auto analyst. A reminder of our exclusive coverage tuesday and wednesday from the Morgan Stanley australia in sydney. Tomorrow we are joined by the banks and chief executives of trends urban. Stay tuned. This is bloomberg. Paul lets get to our chief north asia correspondent Stephen Engle. Steve, what have you been hearing . Stephen there are two main issues right now. There are a lot of issues mainly with the aviation industry, but two main ones plaguing the industry. We heard about the Warning Signals coming from a significant of downside risks. Substantial weakening of mobile trade is a concern. That has led to rising fuel costs. On the site has been the operations of the 737 max. This airplane has been grounded, many of the embers do fly the airplane and they are concerned. We have heard a number of Different Airline executives talking about when that plane could be back up in the air. A number of different Global Regulators have grounded it. It is not just an faa decision or a boeing decision. Thatirector general says the plane approval process is damaged, and the industry is under scrutiny. Number of ceosa of airlines that operated, and those that dont operate it. We heard from spice jet earlier this morning and a first on bloomberg interview with the chairman. He is optimistic it could fly as soon as july. Others like tim clark of emirates says, dont expect it until at least christmas or later. I would have said december would be a time, i dont think it will happen before that, simply because the Global Regulators have a difference of opinions as to how they will prove this aircraft to fly anytime soon. What we would like to happen and aommon decision, common schedule adopted by all the regulators. Be our best outcome of strong collaboration and cooperation. And between regulators and the industry. As long as a few regulators agree and the u. S. Agrees and a few other regulators agree, the plane should be up in the air. Of course, the other big manufacturer watching the 737 max very carefully is airbus. I spoke with the chief commercial officer yesterday and i asked him first about how customers are responding so far to the big issues, that of course being the trade war and the woes of the 737 max. That is a dark cloud that is accumulating, and wondering if we are seeing the first raindrops here. This trade tension, let me be specific, the threat of the United States to impose tariffs on those products could have a Ripple Effect throughout this industry, all the way to the consumer who will stop flying becomesrplane flying more expensive and that affect will work its way back to the whole supply chain, or food chain. You are also canvassing some support from aviation ceos here. What kind of response are you getting so they can support you and trying to convince the white house not to impose these tariffs . I would not say canvassing, but we are in favor of free trade. This is not a religious or political statement, it is a logical, economic statement. Because its strives stimulates travel of goods and people across borders. In itself is a motor for economic development. There is a strong correlation between Economic Growth and transportation. No, we are not canvassing customers. But we are voicing our opinion that free trade, unrestricted trade, according to established rules, is the right thing for our industry. And the response from our customers is overwhelmingly, of course free trade is good for the industry. Stephen if we want to look at the u. S. China trade war, do you think airbus could benefit, however, this is something suppressing consumer demand. Cross the board does airbus have in inroad to get some opportunity because of the potential i am not saying boeing has been blacklisted but its not the biggest u. S. Exporter. Stephen nobody in this industry, a Global Industry stands to benefit from him froments to free trade inpediments to free trade. It would have to be shortterm, tactical maneuvering. This industry works because it goes across frontiers. It creates connection between people, between economies. Nobody stands to benefit from trade barrier in this country or that country. It is going to have a global Ripple Effect of negative nature. Stephen are you seeing it already being reflected in your discussion with the customers about future aircraft . Christian no, that we are raising, or reasoning or ringing the alarm bell because of the process that the United States seems to have started. Stephen sales are down both that airbus and boeing, is this an aberration or a new normal that you guys will be facing . Christian i would not say so. This industry is accumulated. Whether it is at airbus and boeing, actually, airbus is slightly stronger. That is besides the point. The auto books of this industry are very, very strong. It is only natural that there is a little bit of a pulling off every once in a while. Maxhen obviously, a 737 has been grounded. Our customers waiting to see if it is going to be resolved . We are alli think waiting for bowing to resolve this issue and put the 737 back in the air. Airbus that was the chief commercial officer speaking with me. At the beginning of the interview he talked about the tariffs. Not the chinau. S. Tariffs, its the threat of donald to impose tariffs on lot on airbus because of the dispute over the alleged illegal subsidies to the various aircraft manufacturers. We have much more coming up from here in seoul. Back to you guys. Paul chief north asia correspondent Stephen Engle in seoul. I want to get you some lines on the bloomberg terminal. Is said to be in discussion to higher the former ceo jonathan sloan. He would be taking a senior role at the firm if things work out. Discussions with sloan are ongoing. It is interesting because there have been a number of key forres leaving clsa jefferies. There was the equity strategist Christopher Ward who took a six Person Research team along with him. There is some tension going on between clsa and its parent company. May headhan slone over to jefferies as well. Shery lets get a quick look at how markets are trading at the moment. We are seeing the nikkei falling 9 10 of 1 , the lowest level since february. We have seen First Quarter Capital Spending coming in much better than expected. The japanese yen is holding in that six month high. Also falling. The kospi is bucking the trend, rising 6 10 of 1 . We have seen foreigners buying samsung. Perhaps expectations of a rate cut. The asx 200 down 6 10 of 1 . That is it from daybreak asia. This is bloomberg. Paul it is 9 00 a. M. In beijing, shanghai, and singapore. Welcome to Bloomberg Markets china open. I am tom mackenzie. Yvonne and i am yvonne man. David i am david ingles. Stocks across the region have the monday blues. More embassies on the brink of erasing their gains for 2019. Yvonne gauging the last washington over the trade war and says it definitely has not made America Great in. Tom headlines are flying at the conference in seoul. We will be there all morning to bring you the latest from the biggest names in aviation