Means a fed hike moving to the back burner. We have the numbers from the latest Hong Kong Survey and discuss the implications of tokyos election results. A terrible outcome for the Prime Minister. Tensions in north asia as north korea continues to worry leaders around the world. We will get an update from beijing on the latest. This is Bloomberg Markets asia. I am betty liu here in new york. It is just after 7 00 a. M. In hong kong. Busy monday in asia with president xi jinping delivering that 20th Anniversary Gift hong kong, right . The bond connects set to launch this morning. We are expecting a ceremony at 9 00 in hong kong. Also, japan as well, a major setback for Prime Minister shinzo of days party shinzo abes party. We are looking at manufacturing a sectors and how they fared. The Manufacturing Sector has probably done pretty well in japan. Exceptingght, msci china ashares, and now the bond things, so it looks like are on fire there in china. We will see how things go. Setting up asia is this monday morning as we look ahead to the second half. Low volume in new zealand so far. Trading slightly. 1 higher. The kiwi dollar seeing a bomb with this bump with this weaker dollar story. To australia, expecting the Caixin Manufacturing numbers out of china, forecasting a rebound, signaling gains of. 4 with the aussie at 76. 91. As you mentioned, that survey showing gains across the board, stronger exports, planned Capital Expenditure as well. The dollaryen 112. 34, taking a dip in the wake of that shocking loss in the Tokyo Assembly election. Euroyen, that should be a good signal, but looks like modest gains on the nikkei 225 this morning after that drawdown of. 9 on friday. How does this set up for wall street this week . At what take a look happened on friday. We still managed some gains, the dow up 63 points, s p trading flat, but you had to look at the interday chart to see the real story, that was the fall off in tech shares in the last hour, the last halfhour, a trade when ch the loft, dragging down all indexes. The nasdaq falling into the red, so we look further into what is driving the market this week, but for now, first word news. A new poll puts the japanese cabinet Approval Rating for 30 , coming as shinzo a defeated,g party was winning the fewest seeds. Ldp executives have called an executive emergency meeting this monday morning. President trump is to call beaters in china and japan to address north Koreas Nuclear ambitions. He will speak to president xi jinping and shinzo abe ahead of the g20 and hamburg. Angela merkel has called on she 20 partners to put policy divisions aside and seek Winwin Solutions instead. She says there is a platform for nations to air interests and introduce policies to benefit a global economy. India has experienced a weekend or confusion and uncertainty has businesses and consumers attempt to navigate the new National Sales tax. It unites 29 states and 1. 3 billion people in a Single Market for the first time. On day one, many shops were closed and shoppers deterred by potential price changes and uncertainty over how the tax will work. The u. S. Navy has sent a guided missile destroyer to the South China Sea in what some see as an indication of washingtons displeasure at beijings failure to rein in north korea. The ship passed within 20. Ilometers of the island it may sour the atmosphere with trump meeting president xi jinping this week at the g20 in hamburg. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Monday does mark the lift off , the long gift awaited Hong KongchinaBond Connect Program. Kong caps off its weekend commemoration, the 20th anniversary of the handover. This is what we were expecting from the president. The significance of this . A leverage a time of crackdown in china, so this could diversify funding into the chinese economy urgent by too much debt. It could ultimately help improve corporate governance. There are still challenges and hurdles to get institutional to trust andtors have confidence, assessing the risks in bond ratings. China is the number three biggest bond market, overtaking u. K. , then japan, and the United States much larger, but less than 2 of that corporate debt is in the hands of Foreign Investors, so it will be baby steps to start. Goldman sachs estimates that more than 1 trillion worth of additional Global Fixed Income result fromcould chinese bonds over the next decade. 9 00 a. M. , we have the launch ceremony with dignitaries and will get the first issuances by chinese policy banks, Agricultural Development bank and China Development bank, today and tomorrow respectively, offering bonds to Foreign Investors. Hong kong has a new chief executive, and some stern words from president xi jinping. How would you sum up what he said and what that meant for the handover commemoration . Boss. Is the that is basically it. The last time such a Senior Leader was here, it was much more muted, but things are different. Xi jinping uses that velvet glove and the iron fist on the andr to show he is the boss that there is a redline. They will not tolerate any kind of challenge to beijings role of hong kong. Clear message to those who did take to the streets over the weekend, mostly after he left on saturday, to voice their displeasure. Hong kong has the widest wealth gap in asia, property prices are through the roof at record highs. The young people of hong kong dont feel their interests are being taken into account. Property developers and mainland interests are dominating. This is not a happy city, and xi jinping had to be careful to strike an even tone, but send a message, dont challenge us. There is a redline after all, and we are the landlords. Indeed. Engle on the commemorations over the weekend, but also the bond connect. We wont have more analysis a little bit later on bloomberg. Find bridge investments head of fixed income for asia outside of japan will be weighing in in the next hour at 8 10 in hong kong. On, 9 40 am hong kong , ubs senior china economist joins us. Lets see what we can expect this week with remy inocencio. It is already july. It has gone by. Even though it is a shortened week, a lot of things on the radar. First, equities. Some of the Information Technology stocks, particularly facebook. A drop in the s p 500, Information Technology, but there could be news for facebook because they got a patent granted in australia aligned for p or two. Ans to take place australia, allowing for pure two eer to peer payment to take place on messenger. To some ofahead these gambling stocks, it turns out that revenue coming out of macau is the best since 2014. Hop into the bloomberg terminal, 7382. That is the gaming revenue macau got in the past month, but that was worse than estimated. It was supposed to be up by 30 . Is at its that it best since 2014, so people are optimistic. Finally, the box office, the weekend box office, despicable me three, the third installment, number one in the box office, 71. 4 million in canada and the u. S. , but missed estimates. Internationally. Disney has well, pirates of the its sixth week and has now passed the 700 million mark. Was 230ction budget million, so they are finally taking their money back. So many. Ais week, we talked about shortened week in the u. S. , looking ahead to the july 4 holiday, a fair amount of ecodata on the radar. Big win,bs report is a but also pmi on monday, expected to stay the same as make, 52. 1. Lets walk through a quick timeline. On monday. I july 4, stock markets closed, the july 5, we look at the fomc minutes, the debate on whether to raise rates, how much, and went to raise rates again, depending on the wording. Claims, expected to be 1000 less than the week prior. July 7, june jobs. We have been talking about with a wage growth will rise. The expectation is it will rise somewhat with the unemployment staying steady at 4. 3 , the lowest in 16 years. Thank you. A look ahead to wall street this week. The japanese Prime Minister gets a drubbing in the Assembly Election. What does it all mean for abenomics . Up forlobal leaders gear the g20 in germany, how china wants to shape its role. This is bloomberg. Towe are counting you down asias major market open, futures positive this monday morning, gains of 60 points according to nikkei futures. This is Bloomberg Markets asia. Well, after commemorating the 20th anniversary of hong kongs handover to china, president she xi jinping will behead it to hamburg, germany to join other g20 leaders. Angela merkel calling for policy coordination amid an increasingly protectionist towards United States, and chinas pivot towards russia and europe. Joining us now is the Senior Research fellow at the east Asian Institute in singapore. First, before we get to xi jinping and how he will do at the g20, lets talk about the handover commemorations in hong kong. How do you think he did, and what do you make of his comments to people in hong kong . Xis visit this year, the 20th anniversary of the handover, showcases his power consolidation first. Second, also consolidate beijings control over hong kong. If we look at the past 20 years, beijings relationship with hong kong has not been so smooth. There are a lot of problems at the moment. For example, the proindependence and prodemocracy sentiment in hong kong, and also the inflow of huge amounts of money from the mainland to push up the property prices there, so all these have chinas problems facing one country, two systems. We know that. My question is heady think he performed . Ok fromnk he performed the domestic political perspective because the domestic audience wants a very strong and also tough leader facing the hong kong local people, so actually his performance should be viewed from two perspectives. If we look at it from the hong kong local perspective, a little bit too harsh, because he talked about the sovereignty, no compromises come all this, yeah. Right, so depending on where you are, certainly a little bit of a different look at xis performance. Now hes going to take that on the road to germany, where Angela Merkel will try to make these with all of the g20 leaders, and in particular President Trump here. S messagesu think xi going to be at the g20 . s message first of all is about the continuation of globalization and the freight trade and further opening up of the markets. Last year, china was the host for the g20 summit. Xi wants to see to what extent the consensus and agreements reached last year could be implemented by this year, so it also shows chinas growing leadership over the global as thence issues as well economic agendas. Values a lotxi this kind of g20 mechanism is an International Platform to voice chinas concerns over governance issues and also chinas growing influence on the international affairs. Hiccupsve seen some when it comes to the u. S. And china relationship, right . Maralagoke this meeting was ages ago when we talked about this good relationship, and now you have trumps recent tweet on north korea saying you tried, but it was not enough. Now there is this arms deal with taiwan that the u. S. Is proposing, putting tariffs on steel. Do you believe the honeymoon and trump isn xi over now . I dont think so. Cardnk xi was to play the of other big powers to offset some u. S. Growing pressure over china. Announced was just the arms sales for taiwan, so ,hina wants to have more room yeah, to play, in terms of the car relationships. For example, they want to use germany and russia as leverage over the u. S. , but this does not mean that china is over. Eye tore do they see i to eye . Can they still work out corporation to rein in north korea . Yeah, north korea will probably be the number one event forhis g20 summit, because big powers, this kind of security and geopolitical issue is the top concern of these countries, especially for china. North korea has been testing the nuclear just near its border was so thats why president xi jinping would take this very seriously. Go, i know we are talking about it like it is another preview, but i suspect this will be one of the most intense g20 meetings, on the back after President Trump has decided to leave the paris climate accord, the missiles launched by north korea, i mean this is going to be a tense g20 meaning, is it not . Sure, this will be the first g20 summit in trumps time, so for all of the other leaders from big powers, they have to face a new United States led by donald trump. I think this will be the new normal for most countries, especially china, so how to deal with for example the Climate Change issue, the financial , i thinke trade issue for all the leaders that this will be a new challenge for them. Thank you for your analysis. We look ahead to that summit in hamburg, germany. You can get a roundup the story to get your they going. On yourdayb terminal for bloomberg subscribers. Setback in the Assembly Election for shinzo abes ldp party. Your settingsize and get information on the news and assets that you care about. This is bloomberg. This is Bloomberg Markets asia. Hasustralias Fairfax Media process examining a sale after tpg capital said it was withdrawing its offer, leaving a u. S. Private equity firm as the sole bidder. Fairfax will into the process and proceed with its own strategy. The company was by as much as 2. 2 billion. Toshiba raising money by listing a nuclear unit. It said the First Step Towards an ipo may be made this week, although toshiba is still discussing whether a straight sale would be preferential. Hong kongs richest men betting on a commodity that has been on the skids for five years. Doubling a stake in canadian uranium exploration next gin energy. Shares rose after the announcement of the investment. Deal means li kashing and his son can appoint one of the next board members. Up next, the luxury shoemaker once more customers in china. The ceo tells us the steps he is taking to get there. This is bloomberg. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Yvonne 7 30 a. M. Monday in hong kong. We wrapped up the anniversary celebrations, the marking of it. Harbour. He victoria kind of a bleak day. Betty some allergies still. It is 7 30 p. M. In new york. Nd dependence day is coming up the market did close higher, but considerably down after the sharp tech selloff, i am betty liu in new york. Yvonne i yvonne man in hong kong. You are watching daybreak asia. First word news with rosalind chin. Markets well as the government said it would not accept the demand under the saudi led oscillation isolation. They had 13 demands including cutting ties with iran and closing al jazeera tv network. Qatar is not afraid of the consequences. Will sign a deal monday to develop the biggest gas field in collaboration with two other people. Liquorll control the 1 while the other group will have a biggest gas deposit which it says with qatar. It shares with qatar. The Trump Administration wants to separate repeal and replace components of abolishing obamacare. They said the president wants to pass the bill soon and is working to convince republican critics. The Majority Leader Mitch Mcconnell hold the Health Care Bill consideration, facing opposition from goods and services and moderate republicans. Macau miss estimates last month as concerns grow about regulations. An 11th straight month of 26 to 2. 5lmost billion. Economists median estimate was for a second rise. The stocks rallied 30 this year through friday. Has lifted the u. S. Band of laptops flying to america from abu dhabi. Themessage comes from department of Homeland Security making ground measures. People must pass through immigration and customs at a special preclearance section in terminal three. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. We are counting down to the major market open in the asiapacific. Lets go to the market editor adam haigh joining us from sydney. Multiple lose we have seen, the euro and yen, the dollar yen. What does this mean for investors and the overall japanese growth story . Good morning. Clearly in tokyo the result is from if puts shinzo abe in more of a bind. There was already talk of him needing to make a cabinet onhuffle, which some people teams have said will be coming in august if not september. So this and to his adds to abes problems, a very heavy defeat for his party. We did see additional strength in the yen dollar, back to levels from trading. Clearly the currency Market Investors are ba