Trade. They simply Steven Mnuchin said the u. S. Deserves the right to be protectionist. Haidi i am haidi lun. This is daybreak australia. We are moments away from the opening of the first major markets. Etty i am betty liu we are looking at how all the action on wall street will play into the asiapacific trading day, kind of a whimper in how we ended trade on friday. Retail Sales Numbers we are looking at friday morning coming in and missing estimates for the most part, so we will get more data this week that will include numbers on the Housing Market that will lead to more clues whether or not the big consumer demand we have seen in the u. S. Driving the u. S. Markets, whether that is peering out or not. On friday we close down, the dow was down 20 points, the s p lower. The nasdaq composite pretty much unchanged on friday. Sort of a mixed, mixed session. U. S. Is in, and the this relentless phase of being range bound. Againatility, falling heard the 90, 93 lows. Is ifa, the big agenda china dials out retail sales, Income Investment and assessing the production. They are all set to move the markets today. In new zealand, looking pretty 68. 60. Ew Zealand Dollar the u. S. Dollar did fall, but the first gains in a month. Futures in australia pointing modestly high. We did go down 0. 7 on friday. The aussie dollar headed for a. 95th day of gains at . 73 73. 95. We are raising the weekly loss, up a quarter of 1 . Another felt, more saber rattling out of north korea. Wti, this bounce in oil could be losing momentum, but the opec meeting is under two weeks. People are focusing on the production that they will cut, namely in the u. S. And outside when it comes to iron ore prices that are now down. 7 . Lets get the news now with has linda. Laid the china has foundations for a new eastwest trade route, calling it the project of the century. Xi jinping told business figures that the initiative is inspired by the ancient silk road that originally linked china to europe. He repeated his report for globalization, saying it as a piece a road for peace. The belt and Road Initiative is rooted in the ancient silk road. It focuses on asia, europe, and africa. All countries can be part of this initiative. The pursuit is based on extensive consultation, and benefits will be shared by all. Reporter chinas biggest way as an data oil and Gas Producers say nine deals worth 20 billion during the forum. They told bloomberg they have more than 50 joint ventures underway in 90 countries. He told us they are setting their sights on u. S. Energy and looks beyond traditional suppliers to fulfill a growing reliance on energy markets. U. S. Has very rich oil and Gas Resources while china needs to diversify its crude supplies. American crude will certainly be one of our options as the u. S. Government loosens its restrictions on oil exports. It is strategically important for china to increase the natural gas ratio from 6 to 10 or 15 in the next five to 10 years. Haslinda the Uns Security Council discussed north koreas latest Missile Launch, which is seen as a direct challenge to the south korean new leader. The rocket landed in the sea of japan after reaching an unusually high altitude. It was not known if it was capable of hitting the west coast of the u. S. Trump and the other said they would meet kim jongun in the right circumstances. Say Steven Mnuchin said the group understands washingtons position. They had watereddown language from earlier in the year but suggested a more pragmatic tone. Mnuchin declined to shun protectionism, saying the u. S. Will do what is best for itself. We dont want to be protectionist, but we reserve the right to be protectionist in the extent that we believe trade is not free and fair. Approach is to more balanced trade. It is important, protectionism is off the table. There was no disagreement on the fact trade promotes growth, so i am very satisfied. Of course we need to make steps forward. There are different views across the g7 and the g20 for that, but i am confident we can reach common views even on these issues. Haslinda global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thanks for that. Paul is here with a look for what is happening around australia with trading underway. We have the first opinion polls out following the budget. Did the government do well . Paul not really. Thefirst poll has been preferred of the opposition labor party. The labor party is improved a little bit. The news poll, the other one, not so good for the government, the oppositionay labor party up 53, which is worse for the government. A couple of other interesting factors, was the budget fair . 49 saying yes, 39 no. And this was 68 , so the government thinks they are on top. As far as Prime Minister malcolm turnbull, still doing pretty well. Postis the wrapup from the election polls. Betty away from politics, arrow energy missing out. The country is facing shortages domestically, but that could be a blessing in disguise. Arrow was taken away by consortium of petro. They were trying to have scraps, a 20 billion joint venture to ship arrows gas to export markets. Arrow now turns the largest gas of eastern australia. They are starting to expand their project, facing double output and will supply domestic and international markets. The prices domestically have been getting rather strong. Competitors have been dealing with cost overruns from the very capital intensive lng funds, not to mention crossing the reputation crashing the reputation of the price shortages. Every cloud has a silver lining. That is todays moral. Betty and the biggest miner is about to undergo an image change. That includes possibly changing the name . Paul yes, they have a new name after the 2001 merger with billiton, which i believe is a dutch company. To go thep decided whole hog and get rid of the name altogether. There will be a 10 Million Ad Campaign in australia. Not only will they change the name but change their logo that you saw as well and adopt the think big slogan. The chief officer said trust has been lost, but we will reverse that. We need to think make the Community Think different about us. He is talking about the collapse that a lot of people lost their lives. Elliott management would like the profits for australia, listing in london. There is a condition of that 2001 merger with billiton that bhp remains listed in australia, but the Company Denies any link in getting rid of the billiton part of this name and said the rebrand has been in the works for well over a year. Betty we will certainly be watching for those developments on bhp. As you turn on your computer at work today, be alert. An unparalleled global cyber attack that hit more than 150 countries could enter a second phase on monday. This is true. Asia in particular may be in the crosshairs. Ramy inocencio gets us up to speed on this. Several companies suffered in europe already. Some in asia as well. It focuses on the United Kingdom here. The National Health service, well known as the nhs, 48 have been attacked. They have mostly come back online, 90 , but they were turning people away for surgeries that were already scheduled. We can only use pen and paper. Dont come in now until we come back from this. And a nissan powerplant was also affected. Fedex, theed states, Global Logistics carrier, has been affected, but no details. They said in a statement they have been affected and apologize for what is happening. And russia has been affected. The interior Ministry Said 1000 computers have been affected. They do point out it was only about 1 of all computers, so they are trying to downplay. In europe, germanys autobahn has been affected and in spain as well. Asiapacific, according to sky and australia, one business has yet been unnamed, but one has been affected. They point out no Governmental Organization has been affected. China social media is pointing out gas station Payment Systems have been affected. You cannot use credit cards. They sayank of china those are also down. Japan according to the japan times said the National Police agency is working to address this. Taiwan saying they see something has been affected but not going into specifics. Indonesia, hospitals affected. We are seeing it grow, but the thing is this malware was released into the world friday western time during during the working time. In the asiapacific, everyone had gone home, turned off computers, so that is why there is caution saying be careful when you come back to work. Just be careful when you do that, because you could be affected. , it hasckly, ransomware been dubbed wannacry. It is ransomware that locks up your files and locks you out. You have to throw money at them. They are asking for bitcoins, 300. It is interesting this weapon is leaked from the National Security agency a few months ago, one of the trove of tools the nsa itself may have used in the past, now being used by many businesses and individuals around the world. Risk, so who is most at and what can we do about it . Ramy i was wondering who was at risk and if you use apple computers, you are not at risk because it specifically target users, pc users, of microsoft, specifically windows xp, windows eight, and circa 2003. Interestingly windows 10 is not being targeted. If you are a windows pc user, be careful when you turn on your computers here. Microsoft did release a patch back in march. If you saw it and did not download it, microsoft says you need to do that now. The report it as a critical patch. In a blog post that microsoft pointed out the fact that even though there are windows systems that date back 10, 15 years or longer, they are releasing patches for all of those as well. Anyone and everyone can be targeted by this. If your are not a victim, dont open any, but if you are, this is ransomware. You can pay the ransom, and people have been paying it on the order of 10,000, but as the asiapacific continues to wake up, that could possibly have problems. Haidi happy monday. [laughter] haidi thank you for that. Still ahead, exporting to look at the asl match in china. Up next, we will take the temperature of the australian Housing Market. Ofll focused on that ahead home lending numbers due out later this monday morning. And the georgia economist joining us. This is bloomberg. We are counting down to the citi open, and you can see futures slightly higher, up 0. 1 . Trade, thatt of begins. I am betty liu. Cold i am haidi lun in a sydney morning. Seeing futures ahead of the citi open, lets get a quick sydney open, lets get a quick open check. We are looking ahead in terms of today, chinese assets, industrial activity as well as investment coming. Hrough today we will determine how the aussie trading session gets the week started. And lets start with this. Our next guest is expecting slowing growth when it comes to home sales. Joining us, the st. George bank senior economist. We had those construction start numbers coming through last week. We have been hearing from the treasurer saying demand is real, other side saying you will see more supply on the market. Is that how it is playing out . We are seeing signs of quite strong demand. It is quite elevated, and the lending data is at higher, elevated labels levels. At the same time, we would anticipate some slowing. We have apra and the australian regulator who has put up submissions last year to restrict investor lending to 10 of the focus on banks, and they also recently put some restrictions on interest only lending as well. All of these factors should, we expect to see some slowing. We have Interest Rates at low levels that it is being a strong support to demand. In some places, i expect tightening. Haidi when the fed starts going a little bit quicker. Yes, that has more of an impact on the longterm rates, so top rates in the fixed term, maybe three or five years of lending, those rates will start to edge up higher. And of course the tightening from apra to what the banks to, an impact. Oes have at the same time, Interest Rates are at a low level. Jumping off of what you are saying about the tightening, standard and how that might affect the homegrown loans of the bank, i want to draw up a chart on those numbers. You can see the orange bars represent the year on year growth, which is near 8 . If you look at quarter on quarter, they certainly have been slowing, and much lower for , slightlyat least lower than the industry average. Since home loans, mortgage lending is a big part, for the west part it is 60 on a such a large part of their portfolio, if standards get tighter, how will that impact the banks who are look, if you tighten lending standards, it will have some impact on lending. , i mean, what is supporting home growth lending it is saying Interest Rates are quite low. There is still demand, yes. We do anticipate some slowing, and house prices being where they are, in sydney and melbourne, we expect some slowing to occur. Betty the question is, how much does it slow before it deteriorates their loan portfolios . How can they stand before it really becomes a material effect for them . Part of theirbig loan book. It will have some impact obviously. I think in terms of the whole , you need to look at it the other way. If raising standards are there for a reason, that means to keep them, the whole financial system, down in the longterm. It shows that you do have more stable Economic Growth later on. Haveovernment has said we high Household Debt levels, the haidi the residual shocks. Janu it scares me a little bit. Haidi you can see this divergent path back to wage growth and the path it is taking. Does it worry you . And thisis worrying, is something that slow wage growth has been the issue we have faced for over a while. We used to have Spare Capacity in the labor market. We just want to see stronger growth. Stronger growth to bring down the unemployment rate. Then that would increase the prospects. Stronger wage growth. So we are in this catch22 where we want to get stronger growth, we might do things like stronger consumer spending, slow wage growth. Chart, definitely this you do have to worry a little. I think there are some other things where it makes us a little bit more relaxed about it , these rates are very low. The rba has put out a study about this. It has to be those who have the capacity to pay the higher income holding the most debt. It is the most reassuring thing. Haidi thank you so much. Janu chau. We would like to bring to your attention our interactive tv function. You can watch us live but catch previous interviews and go into the securities or bloomberg functions we talk about. This is for bloomberg subscribers only, but check it out. Haidi i am haidi lun in sydney. Mark you are watching daybreak australia. A quick check on how the commodities are trading, relevant as we are looking ahead to the australian trade. Gold is up slightly 0. 1 . No improvement on crude futures below the 50 merrill. Haidi it is a 30 a. M. In sydney. A. M. In sydney. We have a fairly dark view of the Sydney Harbour bridge, but there is a lower close in the friday session. Betty i am betty liu in new york where it is 6 30 p. M. You are watching daybreak australia. Both go to first word news. Haslinda Security Experts say the week is unprecedented the weekends unprecedented cyber attack will continue to claim victims. The malware used in the technique was stolen from the National Security agency. It affected the british National Health service, russias military ministry of the interior, logistics giant fedex. This is something we have not seen before. The global reach is unprecedented. The latest counties over 200,000 victims in at least 150 countries. Haslinda chinas premier said they will continue with crude money policy, and they will maintain stability and financial markets. State media told Christine Lagarde they are continuing to manage slowing exchange rates. They say china will strike a balance between volatility, deleveraging and Economic Growth. A chinese aviation official said beijing is negotiating with u. S. And france for more air rights to meet growing demand for mainland airlines or direct flights. They are contacting existing rights which china says has been depleted. The talks with france are a part of chinas plans to boost air road in the one world, one in trade initiative. Angela merkels christian democrats got a decisive victory in germanys most populous state, handing them a heavy defeat in the national elections. Voteb you took 34 of the in westphalia, and the other party got 31 , the worst showing since world war ii. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. It is a big week ahead for earnings. We have cisco, alibaba among companies reporting. Su keenan with a look ahead. Also more economic numbers to keep our eye on. Su lets start with the tech numbers out. It will be bigger when you talk about online retailers or etailers, then alibaba and tencent. They did better than a 30 year to date. Can they take it higher . Investors are interested to see competition from jd impacting them. Especially since they went public. The back end of the week, the 18th. And tencent is up about the same amount as alibaba. They have done very well on the current environment. They will be out the 17th, a day before alibaba, and this is the focus on tech where it is right now. These technical analysts, lets go to the bloomberg 8527. You have apple on target for 800 billion market value. They say there is a giant market value tech. When you look at the five, it creates something to look at, the combined capitalization of the most valued companies