A smart new home could be introduced to this month. We have world coverage on daybreak asia, we will go to beijing for the Morgan Stanley china summit. Towill speak exclusively chairman and ceo gorman. Trick does apple have up its sleeve with this new home device . We will have details. This is daybreak asia, from bloombergs asian and american headquarters. Yvonne it is just after 7 00 a. M. Here in hong kong. Cpi breaking news from on the money. 2 for the month of may. A slight take up for the month of april. Core cpi is one to watch. We have been hovering around that 2 level for much of this year. The core cpi, which excludes oil and agriculture coming in at 1. 4 . A little more tame it. You have to factor in the low base effect, low Oil Prices Last year. Prices should stay up for some time. On the domestic side, demand is subdued. Should keep the bok on course to be accommodative. We will see how korea acts in an hours time. We start a new trading month in june. In new zealand, were seeing things lower. The dollar stocks in the u. S. Fell. 7074 softer u. S. Data, the kiwi kiwi. We are expecting a slight fall from april. 76. 7426 from australia. Timid, indeed. That is an early look at the region this morning. Wall street, we do not exactly sell in may. We are seeing the end of the month with a bit of red. Betty it would have been a much higher if not for the declines we saw in the last couple weeks. We did make up those losses and are ending higher for the month. There is more uncertainty than we started the month in the u. S. , given what we have seen out of washington and comments from the fed. We are not quite sure whose is saying onerd rate hike, others are saying two. Lets get to the first word news with courtney collins. Agenda asalk to the vietnams Prime Minister became the first Southeast Asian leader to meet President Trump. Vietnam is seen as a beneficiary for the transpacific ownership, and wants to sign Bilateral Agreements, now that the u. S. Has abandoned the pact. Trump is concerned over americas 32 billion trade deficit with the vietnam. Mr. Trump we are in discussions with major topics, including trade, we have a major trade deficit with vietnam. That will hopefully balance out. China and the European Union plan to commit to free trade and uphold the paris Climate Change pact. It was seen as a rejection of President Trumps America First policy. They say he will pull u. S. Out of the pack to this week after g7 leaders failed to win them over in italy last week. Chancellor merkel went so far is to say the u. S. Is an unreliable partner. Indias economy grew at the slowest pace since two years in the First Quarter, dragged down by the high rupee notes. Gdp expanded in the first three a fullof 28 percentage point below estimates. Manufacturing and Service Sectors show signs of recovery. The offshore yuan jump to the most in four months. Policymakers are supporting it. 0. 8 percent, its highest since january. The yuan rallied the most in asia. Itt squeeze is hurting confounds analyst with stronger fixing. 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. Streaming monthly advances. Jpmorgan talking about trading revenue falling. Joining us now is su keenan. Banks are in the spotlight today. They were. Real estate and others were up. You notice there was not a big change, there is a lack of volatility that j. P. Morgan chase that is behind the volume being lower, 15 lower. Theystreet journal saying are putting it up for sale. Not getting the greatest bids. They reported them as lackluster. Pilinge for sale and and. Philip morris is down in the day after hitting a high for the year. These ecigarettes are the new thing. One forecast, surging by 22 . Philip morris is all in on that product. Lets go into the bloomberg. If you are, following at home, is on track for yet another monthly gain. We had only one negative month since President Donald Trump was elected. They are small boxes, youre not seeing big changes monthtomonth. But those were all gains for the s p. Lets look at the bloomberg chart on gold. Hedge funds are jumping in on the gold bets, which is a safe haven play. They are increasing long bets on gold in the most in almost a decade. That has a lot to do with political and other angst. New president , european difficulties, if stocks are high, their hedging with gold. Yvonne a lot of elections in europe we are looking ahead to, as well. In the spotlight, hewlettpackard moving lower after hours after posting a loss. Su this translates to thursday trade. This is a big after hours story. Businessackards hurting because they are now in the cloud business, and they are up against amazon and google, and they are having trouble. 24 aoutlook is for share. Analysts were expecting 32. You can see hewlettpackard enterprise has not had a bad year. It will be interesting to see how the full market on thursday received this news. Disappointment on the profit outlook, that is the story. Margins Going Forward will improve. Costs associated with the spinoff will be worked out. President trump says he will make a decision on the paris Climate Change accord in the coming hours or days. We are still waiting for that announcement. His critics are turning up the heat. Lets go over the options with our reporter. He joins us live from washington. Good to see you. Elon musk tweeting out, threatening him to step down if they do exit this accord. What is on the president s mind at the moment . Rbnz President Trump reporter President Trump is hearing a lot from both sides. Other Corporate Leaders who have supported the Paris Agreement have been vocal about wanting to stay in. So has his daughter, ivanovic on. Hisex tillerson daughter, ivanka trump. Also, Rex Tillerson. Es,t we are hearing from aid is not to stay in it. Top cohn informed u. S. s allies in europe it is likely the president would withdraw from the deal. We expected to play out over the next few days. Betty if he were to pull out of it, what is the number one reason for doing so . Justin for the president , his keystone, his guiding star, is american jobs. Particularly the manufacturing and coal states that helped elevate him to a surprise win. This is an opportunity to lift regulations facing over the next decade and jumpstart some of those sectors. At the same time, a lot of advocates of the environmental deal say it is something that will help stem a new wave of innovative, green jobs. That is something he will have to balance. Betty justin, thank you so much. Donald trump will be making that decision in the coming days. In the meantime, big interviews ahead on bloomberg television. Australian Prime MinisterMalcolm Turnbull will be sitting down with our very own haidi lun for a oneonone ahead of his trip for the shangrila dialogue in singapore. That is at 7 30 if youre watching in sydney. Yvonne later on daybreak asia , our exclusive interview with james gorman live from the companys china summit in beijing. Rbnz we are counting down to asias first major market open this morning. Take a look at japanese futures 0. 1 . Now, up slightly, we are a little over 45 minutes away from the opening bell. This is daybreak asia, i am betty liu in new york. Yvonne i am yvonne man in hong kong. Chinas biggest developer ever grande has picked up more than 10 billion from selling hengda. Will bepleted, hengda held by their real estate unit. Betty they claimed they undercut prices on washing machines. They filed a petition in the u. S. Against samsung and lg, saying importers offer products at excessively low prices. The ceo described samsung lg as serial violators of u. S. Trade laws. Yvonne Air New Zealand is rushing jumping. Shares are up 4 in the index. That is based on the current market environment in the price of jet fuel. 525 millionnings of kiwi dollars. Of 16 millione in the selling of a stake. First india, now china. German chancellor Angela Merkel met the senior leader, li keqiang, one day after meeting indias Narendra Modi. Shifting global ties, catalyzed by donald trump in the white house. I see this as an unraveling of the u. S. s pivot to asia under the Barack Obama Administration. And the develop of europes i sg of the own potential pivot to asia, at least the first couple steps. It goes without saying it is because a large part of what donald trump has been saying. It is crystallized over the past week or so during his trip to europe, as well as to the g7. Said the timesas when we could completely rely on others are now, to an extent, over. Easy to see a swipe at the u. S. And United Kingdom for brexit, as well as Donald Trumps moves here. We are seeing li keqiang meeting Angela Merkel in berlin. He was greeted with military honors. He was speaking at the annual chinagermany meeting. That is been happening for 13 years. He is added to brussels on the heels of President Trump, speaking at the 19th chinae. U. Summit there. While change and Climate Change were at the top of the agenda, it is at the top of the agenda with li keqiang here. Interestingly, it is startling. It is a shared vision and shared value you think would be from europe as well as the united states. But we are talking about this with china and india. From the stuff i have been reading on background for ms. Merkel, she is a strong transatlanticist. Ngs arendering if it pa to say, united states, we are looking elsewhere, to asia. Betty i doubt a couple months ago she would think she would be thinking this way. On tuesdaymodi saying he would not leave paris for the climate deal, regardless of what the u. S. Does. Brussels and beijing saying they will start a new alliance to fight Climate Change. And merkel also talking about trade. It is a surprise where we were 12 months ago compared to where we are today. Trump drawcould see those global battle lines. Lets stay with that story and the eastsomeone from asia institute, live from singapore. Great to have you. This 70 year relationship the developed world has had since postworld war ii, essentially overturned in a matter of six months. Is it over . Actually, this is a very interesting moment to look at the relationship among the big powers. The transition is not over yet. After trump became u. S. President , all the big powers including china e. U. , japan and other powers, are adjusting. The previous grand strategies are trying to find new partners inside the region and outside. Chinae what does an e. U. Relationship mean for the u. S. . Is the white house looking in this at this and worried . Can china have it both ways and have a relationship with the u. S. And europe . This issue look at from the u. S. National interest perspective, yes, there should be worries about the recent development of the e. U. China relations. If we look at it from the trump perspective, i do not know. His strategy is relatively nationalistic. An lateral is bilateralism and inward looking. The e. U. China interaction could to some extent, harm u. S. National interests, especially economic interests. We can see three economies are the Worlds Largest economies. The trade and investment among them are substantial and the byproduct of the global economy. Yvonne you mentioned America First, and the triangle relationship could be dangerous. What do you mean by that . Trying trid of angular relationship is fragile. If you look at e. U. Relations, there are longstanding disputes over subsidies, investments, human rights, and arms embargoes. There are signs showing that chinae. U. Relationships fundamentally improve. There may be temporary compromises, but i do not see any substantive changes. You are exactly right. There is a lot of tension between the you and china, particularly between the e. U. And china, particularly climate measures. It is a sore point between the chinese and the americans, too. Given what we have just said there, maybe President Trump sits in the white house and says, i am not that worried. Chen [laughter] actually, we need to see what kind of police li keqiang and the other leaders have for the summit. Hase look at xi jinping with donald trump, it is a 100 day package, and we still do not know the details of this package. Some say china made some compromises for opening up their markets and abolishing some restrictions over foreign investment. This time, i do not know if li keqiang is bringing the seminal packages to the e. U. I think we do need to watch. Betty stay with us for a moment, we will have more on this important summit between the e. U. And china. This is bloomberg. Yvonne this is daybreak asia, i am yvonne man in hong kong. Betty i am betty lou in new york. Our guest is talking about the e. U. China summit and the reactions. I want to focus a little bit on the climate accord. This is an up an opportunity for the e. U. And china to reaffirm their stance and inclusion in this accord. A lot of u. S. Ceos have been telling trump today to stay in the paris climate accord. Here is a tweet from elon musk, leading the charge among ceos, saying, i do not know which way paris will go but i have done potus thato advise we remain. He has really taken charge. If the the consequence u. S. Decides not to stay . The consequence could be huge. If we look at this climate deal in paris, this is what the e. U. , what china, and many other for climatelue politics in recent years. Recordsthat historical [indiscernible] that really gave a big blow to these politics. Thing,u. S. Does the same that will really make the International Community angry. Especially the European Union. Betty doesnt jeopardize the it jeopardize the accord . Chen i do not think so. It does not need the participation of the u. S. As long as other members continue to support it, it will survive. Betty were are always looking for the opportunity here. Outside ofn, angering other countries, on the business side of it, will it perhaps help Chinese Companies who are in clean energy and investing . Could that be a benefit or bonus for them . Chen i think so. Has emerged as the number one Renewable Power in this world in terms of solar power or wind power without participation or competition from the u. S. , definitely the Chinese Companies could have a better edge over international competitors. Considering establishing markets, it will have an impact on that. You herereat to have and get your perspective on this before the e. U. China summit. Sis up, apple wants siri to become part of your household. This is bloomberg. Yvonne look at the clouds this morning. A pretty ominous day. A. M. Thursday morning in hong kong. Minutes away from the market open. It is like gotham city, almost. Betty it is like straight out of a movie. We have clear skies in new york. 7 30 p. M. Wednesday. Markets closed unchanged. Tried to rally, but could not make it. I am betty liu in new york. Yvonne and i am yvonne man in hong kong. First up, u. S. Commerce secretary wilbur ross says President Trump never intended to tear up nafta, but it requires a thorough revamp. He said the guiding principle would be to do no harm. He wants talks with congress by july because it will require approval on capitol hill. He says the window to change nafta remains open through next january. A Malaysia Airlines flight turned back to australia after a passenger tried to enter the cockpit. The flight landed safely in melbourne before midnight and the carrier has offered no further details. Malaysian airlines is recovering from a fatal disasters back in 2014. Disappeared, and another was shot down over ukraine. A woman linked to the scandal that toppled south Korean Leader park geunhye dropped to repeal against extradition from denmark. Samsung paid 850,000 to buy her a horse. It is part of widespread corruption in korean circles. Spacex is taking recycling to a new realm. Space it self. The supply to the space station will include a cargo ship that has made the journey. They havent refurbished it for thursdays launch. Most of it has already been to space, including the frame. Reused parts,ey but never to this extent. 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 will watch how the asian lenders fair today after banking shares were hit hard in the u. S. During wednesdays trading session. It lets the latest out of Bloomberg Markets. Adam haigh joining us live it from sydney. The headline we got overnight, trading revenue down 15 in the Second Quarter for jpmorgan. How does that play out for investment banks in the region . Quite significant numbers. It should not be a surprise because it was widely understood that equity volatility was very low. The bond market and currency markets have been very low. It is taking a hit to investment banks bottom line with that lack of trading fever around volatility. We will have a look at asian letters, including big chinese and hong kong. And of course, the big banks in japan. We are keeping a watch on those. Equity markets, looking for a mixed start. Not too many leads from the u. S. We had a good run from markets of late, people reassessing positions as we dig in the first trading day o