Rishaad kicking things off with , getting those numbers. How this hass us all turned around in recent months. , the factory gate price number we did have, and well, expecting the same level at the moment. The government crackdown on risky lending. Restocking inventories, and that would mean they do that despite the recent upswing as well. 5. 5 , cpi coming out. Holding steady, that stabilization story that beijing wants to push for this year. We will look at import prices and the impact of technology, whether that is keeping inflation and wage growth far away. Asia, singapore, malaysia, and taiwan coming online. Asian shares tracking wall street. Japanese stocks and shares in sydney leading gains. Tokyo rising the most in three weeks despite the disappointing core machine orders data this morning. The yen trading near a twomonth low, although now deepening losses, 114. 18 right now. Kospi higher, consumer stocks dropping over 1 . On korean won building gains, up. 3 against the dollar. Yieldsre, aussie pond continuing to drop, tracking what we saw with u. S. Treasurys , the 10 year yield for the u. S. Trading around 2. 39 here it , oilng at commodities making gains, although we did see a drop on friday, so newer crude a low 45. A fairly decent start this monday, but bearish signals are looming. 183 five illustrating how asian shares have fallen below the 50 day moving average, the line in pink on this chart. This after its worst week cents march. March. E broadly, tech heavyweights contributed the most to the regions selloff. Some sons resilience could foreshadow a continued rise in asian tech shares. Marketart shows you its cap against apple in the bottom panel right here. Valuationng that could be low, especially in light of revenue topping apple. Some sons revenue steadily on the up in the white line, while apple has been fluctuating, and heads up when it comes to trading in hong kong. At what we a look have in the session so far this monday. Rishaad thank you very much indeed for that. Right, lets get to first word News Headlines and joined paul allen. Paul thanks. Japanese Prime Minister shinzo abe has seen the Approval Rating for his cabinet slight to the lowest level ever. A survey shows the rating falling to 31. 9 from 39 point 8 a month ago, the lowest since shinzo abe took office in 2012. The biggest reason given for not supporting the premise or was a lack of trust in shinzo abe as a person. President trumps eldest son has confirmed meeting the russian lawyer with kremlin ties. In a statement, donald trump junior says Jared Kushner and then Campaign ManagerPaul Manafort also attended the meeting. Trumpw york times says junior agreed to the meeting on the hope of finding damaging information about hillary clinton. Iraq says it has liberated the Northern City of mosul from Islamic State three years after its fall. Troops and u. S. Backed kurdish fighters launched an offensive eight months ago. Muzzle was where the Islamic State leader proclaimed the groups intention to found a panmiddle east caliphate in 2014. Republican partys hopes of repealing and replacing the rocks with passage of any plan before the august congressional recess in doubt and rival factions pulling an opposite directions. Bill cassidy declared the plan a nonstarter, while ted cruz proposed allowing insurers to offer cheaper plans with less coverage. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thanks. The g20 wraps up with most the nations pulling together to fight protectionism, but President Trump cut a lonely figure at the meeting in hamburg when he came to the issue of Climate Change. The g 20 meeting in hamburg was a weekend full of confrontation that yielded little in terms of results. Protesters gathered, 100,000 demonstrators confronting 20,000 Hamburg Police officers, but in the end, limited local stores was set cars ablaze, and through molotov cocktails. President trump confronted Vladimir Putin on the alleged hacking of the 2016 election. Angela merkel and Emmanuel Macron confronted putin on the ukraine, and shinzo abe confronted president xi jinping on north korea. Only one bilateral meeting yielded tangible results. Trump agreed on a ceasefire in syria, but how long will that last . President received a lot of criticism for allowing yvonne could trump to sit in his chair during g20 meetings. The biggest confrontation was trade, where they agreed to fight protectionism, but allowed members to use Defense Mechanisms where they see fit. The g20 one now demand more transparency when it comes to steal subsidies and try to fight dumping and bottom barrel prices. When it comes to Climate Change, there was always going to be an issue because the u. S. Pulled out of the Paris Climate Accord come a but the other 19 members said there is no turning back. Our next guest organize the first g20 summit in washington in 2008, and Economic Affairs advisor and sherpa for george w. Bush. Daniel, thank you for joining us. Well, g 19 plus one at the end of the day in your view. The United States certainly entered the summit in a different posture than it has pically entered g20 summits. The United States comes in with a robust agenda on trade, climate, financial and regulatory development, and here it was on the back foot on two critical issues, trade and climate. Rishaad right, and what about when hesage, perhaps had his daughter sit in on one of the conferences as well . Has beeni think a lot made of that. Im not aware of any instance where the relative of a leader had substituted for the leader at the table, but it is not unusual for a minister to substitute for a leader, but if we can come back to trade and emerged. Two things in fact, the pledge on protectionism looks very much like prior pledges with the added emphasis and recognition use states may of course trade defense measures to deal with unfairly traded goods. The other focal point in the discussion was excess capacity in steel and other commodities. Excess capacity is a real problem which the leaders have come to grips with. The principal actor in this regard is china but the united weakenedme in and a position because of the threat of unilateral action to restrict steel imports. The real news was on the periphery, and that is the deal that was announced between the eu and japan, where they reached a freetrade agreement in principle, and the Market Access the eu will now enjoy in japan was precisely the Market Access u. S. Exporters would have enjoyed in japan under tpp, so this underscores what happens when the United States takes itself out of the trade liberalization game. I think the operative word when you talk about a freetrade agreement with japan by the eu notthat in principle, it is a done deal, so how much is politicking going into this, setting out as free traders against the attacks mr. Donald trump . Certainly there was some political messaging in fault, but that is to be expected. Theact, i think certainly critical Market Access elements of that Free Trade Agreement have been agreed. The turfok at reduction schedules on both sides that have been agreed, the Agricultural Commodity trade, and a number of other things. Yes, the vexing issue of the Investment Court has yet to be resolved, but it would understate the accomplishments to say this was all just words. Much has been accomplished in that Free Trade Agreement. Given the lead up to g20 expectations and north korea fact dominate events, the that north korea did not make it into the final communique, what you make of that . I do find that somewhat interesting. North korea figured prominently in the bilaterals between President Trump and president xi jinping, President Trump and president putin, as well as Prime Minister shinzo abe, so north korea was a significant element of discussion bilaterally. Not makerised it did its way into the declaration as traditionally leaders feel that global problems require global solutions, and a united front at the main global table. Haidi stay with us. Plenty more to talk about as we look at the outcome of the g20 meeting, as well as where china and u. S. Relations sit at the moment. Coming up next, why the great china reflation story is not looking so crash on after all. Cpi and ppi numbers in about 20 minutes. This is bloomberg. Haidi this is Bloomberg Markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. Having a look at what is going on in south korea, influence peddling concerning the expresident. Jay y. Lee looking at being the in jailder of samsung on corruption and bribery atrges, refusing to testify the president s trial at the moment. The south korean expresident will not be attending court today, being blamed on health issues. As soon as we get more, we will bring it to you. Continue our conversation. Follower ofas a these meetings, in your view, what was achieved, if anything, and what about previous meetings . Where have we moved to in previous meetings, and how far have we moved in this one . Think there were a couple of positive steps. If you look at the section of the declaration on overcapacity and you see the commitment that is overcapacity on steel and other commodities and the commitment to report by august and make policy recommendations i november, that is very important. Reasons, one,two coming to grips with a real problem in the Global Economy, but also an effort by other leaders to forestall unilateral action by the United States on restricting steel imports. That is number one. Number two on climate come at United States obviously went in with a weakened position because it had announced its withdrawal from the paris accord. That was unfortunate, and frankly retrograde. Nonetheless come the leaders did a good job of finding Common Ground where they could, but not papering over differences. Energyrst paragraph on security and Climate Change identifies a number of areas where leaders and countries can Work Together to chart a lower carbon future through Sustainable Energy programs, innovation, and technology. The parties did take note of the United States decision to withdraw from paris, and the United States and factor dropped the footnote to a number of other reports saying it was reconsidering its position on climate, but could not join the substance of those discussion papers on climate. Leadersess, i think the did right to focus first on the areas where cooperation was possible, while of course taking note of the rather unfortunate u. S. Decision. Dissectingave been this narrative of the United States in the age of trump withdrawing from global leadership, the vacuum left, and does it get filled by beijing or paris . How do you see the story continuing to be written over the weekend . Weekend did lend some support for that narrative the United States that narrative. The United States postworld war ii helped to construct an International Order built around the rule of law, multilateralism, democracy, respect for human rights, trade theralization, so you see institutions, the un security and it is noto, unfair to say that President Trump has expressed skepticism about these institutions and about a continued leadership role for the United States. Thatnot think however vacuum if you wish to call it that will be filled by china. China has said some encouraging things, for example that president xi jinping at the World Economic forum in davos stated the commitment of china to an open economy, democratic principles, is very much in doubt, so i dont think that china will fill that void. Be filled,d is to and hopefully filled only toporarily, we need to look president Emmanuel Macron, chancellor merkel, and others to help lead the way. Haidi what about economically . One thing beijing would be relying on is one belt, one road, it would be aiib. Yes, but there is a view that arebelt, one road and aiib vehicles for china to export its overcapacity. Chinas words and rhetoric have yet to be matched by true trade liberalization internally come up true relaxing of investment restrictions, by a true in embrace of the nondiscrimination think china has a ways to go in order to have domestic reform match its promising rhetoric. Haidi thank you so much for that, great insights from daniel price, the organizer of the first g 20 in washington in 2008. Coming up, asian shipping stocks getting a boost after cosco buys Orient Overseas. We will look at the rest of the premarket numbers next. This is bloomberg. Are back with Bloomberg Markets. I am Rishaad Salamat in hong kong. Haidi we are counting down to the open of markets in china and hong kong. Taking a look at the hong kong premarket session, this is how we are shaping up. A good session on wall street overnight from a strong nonfarm payroll numbers, and of the week ahead when it comes to fed speak with janet yellen testifying to details ofooking for the unwinding of the Balance Sheet and the rate hike trajectory as well. We have seen a nice boost in in koreastocks listing and japan on account of the of orientcosco overseas. Take a look at that. 24 . Ering to buy Orient Overseas. This would push the cosco group into the rankings as the Third Largest shipping line. Are offering a 31 premium on the last closing price. The family has accepted that offer, and getting good comments from analysts, jeffries saying this is an attractive offer given that container shipping is just starting to recover. A wave ofen consolidation culminating negatively with the bankruptcy of hentgen shipping hanjin shipping. Rishaad Cathay Pacific had its first fullyear loss last year since 2008. It will take full ownership of a cargo joint venture called air hong kong. Friday,in a filing on 60 of that era hong kong. It will be buying the remaining 40 from its partner in that joint venture, which is a Freight Forwarder of dhl and turn it into a fully owned subsidiary. The share price has had a good year, 20 up after a torrid time of it reporting that fullyear loss. Right, what we have got coming up, looking and trying to find out why the indian rupee has been seen as the most recent emerging market currency. We break down the latest em survey. That is next. This is bloomberg. Here in hong kong as we start the trading day in a matter of seconds. Well, taking a look at what we machine orders out of japan, big disappointment there, 3. 6 down month on month, a decline of. 6 year on year, way below estimates. Janet yellen semiannual ,estimony to congress this week looking for guidance on what will happen with u. S. Interest rates, and loads of data releases from the fed. We are looking for cpi and ppi and china due out in a matter of seconds. Inflation story front and center. If we get that beat, that would validate what the fed has been saying, that weakness in the economy is down to transitory factors. We are getting some statements when it comes to Monetary Policy from the fed governor, so lots of red speak for investors to be focused on, particularly key weeks action in the fixed income space. We will see if there is that knock on effect when it comes to fx markets and equities. We are just waiting on these china, to come out of cpi and ppi, expecting to hold stable. Lets go to sophie for a quick look at markets. While we are anticipating a steady print for cpi and ppi, chinese stocks on the back foot, down. 3 on the mainland, but the hang seng gaining. 2 . Property Companies Leading gainers on that benchmark. The honk sign snapping a twoday drop. Snapping hang seng a twoday drop. I want to show you several Chinese Consumer stocks given the inflation watch we are on. The liquor maker has posted a 24 yearly increase in firsthalf profits. Flipping the board to check on shipping stocks after cosco offered to buy Orient Overseas cosco up 6 , an, Orient Overseas, surging the most in eight years. Mitsui osk jumping, leading stocks higher. Taipei,n adding 1. 2 in so a nice list given that cosco oriented combo there. Heads up to trading in hong kong , shares of several companies suspended today. One company will make an announcement regarding a substantial acquisition, while hasre lands trading halt to do with a