Honor to cross the line. Time for the summer davos, we are live this hour. First lets get you started on the check of u. S. Futures at the moment, just begun trading, up 1 , a surge for the easing of trade tensions between the u. S. And china. The talks are back on track, not to mention that he also provided some relief for huawei. Keep a close eye on the chipmakers in asia trading this morning. Seeing the chinese yuan gaining against the dollar three consecutive sessions of gains. Small risk on moves as we see the japanese yen weakening for a fourth consecutive session. We are seeing safe haven currency is being dumped with , the aussie dollar gaining a 10th of 1 , very much related to trade in china. Risk sentiment at this point. We are seeing again futures gaining 1. 3 on that risk on moves. Opalso have a fabulous photo opportunity with kim jongun of north korea at the dmz. We are seeing sydney futures up. 3 . We have the rba policy decision decision policy decision with most expecting a cut to 1 . Ands get back to the g20 trade negotiations, President Trump saying the u. S. Is winning the trade war after a temporary truce with chinese leaders xi jinping on a visit to south trumps inowing america is doing well despite the lack of help from the fed. We are not playing on a fairfield, the truck the fair field. The fed has not helped. The economy is second to none. Shery lets go across to yvonne man who joins us. You are following the only g20 but the unprecedented meeting at the dmz. What are the Key Takeaways . Yvonne lets start with President Trump and president xi in osaka. When it camehe won to getting some type of agreement. Still a lot of uncertainty where things go from here. Trump got more from they were not going to add additional tariffs on china. The current ones are still in place. When it comes to huawei, some say President Trump offered more deliverables. Allowing u. S. Businesses to supply components and still do business with huawei. Meansers asked if it huawei will be taken off the u. S. Export blacklist, and he said no. Well he basically said he was still looking in to this, that it was an option. It is interesting to note the what trump meant, whether it was a back drop, using huawei as a bargaining chip to criticize the president. When it came to trumps initial move when it comes to restricting u. S. Telco companies huawei,tries from using that stance, it seems it has a really changed. We mentioned about some of these people in congress criticizing the president until we heard the likes of the Senate Minority leader saying backtracking on huawei will undercut the u. S. And further negotiations with china. Marco rubio also saying if President Trump uses this as a bargaining chip and backtracks as well, congress will use restrictions trying to stop the company from doing business in the u. S. Still questions on what came out. Trump declined shery potential catastrophic mistake, says rubio. The question is what the president gets in return. Yvonne that is a big question if he gave him too much, giving away the Semi Conductor farm as. Ur analyst was telling us in exchange for a handful of soybeans. What we learned was they were i wouldto buy more u. S. Cultural products. When it came to the fundamental issues of what broke down earlier this year with ip production, tech transfers, those didnt seem to be ironed out at this meeting. What we can take is they will continue these talks but still no concrete dates whether they will get to those types of issues. Our very own reporter who was this asked the question as well what does back on track mean . China may have been ready to give up some concessions when it came to intellectual property or are we back to before that, 2018 when we didnt get any of those types of concessions from. Eijing a lot of questions where things go next. Shery which makes you wonder why President Trump felt the need to meet with kim jongun. How surprised were you to hear this . Yvonne it happened saturday morning before trump and xi even met. , came toise tweet visit south korea. Off guard, even caught kim jongun off guard. Things were put together lastminute, cameras being shoved from different rooms. They were moving around very hastily as well. At first i thought this would be a twominute handshake at the border but you saw trump walking down, greeted kim jongun and went over the border, to 20 steps into the north korean side, then walked back. A lot of questions whether it was a photo op opportunity for the two sides politically it looks good for the two sides. Politically it looks good for both. What does it all mean . Could we restart talks on the issue of denuclearization . It was four months ago those talks broke down in hanoi when trump walked away because north korea was hoping for some listing of sanctions lifting of sanctions. Trump didnt mention once during this visit about denuclearization. Has much changed . Yvonne that is a key shery that is a key question. That was our Bloomberg Markets anchor, now first word news with su keenan. Su lets start with the latest reading of the chinese economy. It shows continuing fragility and the need for a deal with the United States. Manufacturing pmi stayed at 49. 4, slightly weaker and highlights the impact of the trade war. Similar manufacturing reports with the u. S. And euro area later monday. They are expected to provide for the reasons to worry about the global economy. Are closers allies to extending production curves in the First Quarter next year. This after weakening Global Demand and surging u. S. Shale output. Curves six to nine months. Other producers later agree. They meet monday and tuesday in vienna to courtney strategy. [indiscernible] expecting a rather easier meeting and also you see the numbers. [indiscernible] to be higher than 100 . Su the two men fighting to be conservative party leader and u. K. Prime minister have reiterated they are willing to take the country out without a deal. They say they want an agreement with brussels and would be prepared for no deal brexit if negotiations fail to both candidates promise cuts for the u. K. Economy. Are deadlockeds over the top jobs. [indiscernible] facing opposition from fellow european conservatives with other important roles depending on the outcome. They include the success of. Ario draghi in the ecb others include the top e. U. Brexit negotiator and imf chief christine lagarde. 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. Rbas cutll ahead the rates when it meets tuesday that it looks nearly ready to join the world of low yields. When what does the u. S. China trade truce mean for investors . This is bloomberg. His is bloomberg. Allen in sydney. Shery i am shery ahn. Lets get more on the unprecedented meeting between President Trump and kim jongun. Joining us is former u. S. Ambassador to south korea kathleen stevens. Always great talking to you. So much happened, a bit of a surprise this summit even took place. Let me ask, what was your biggest take away . Kathleen a couple of things. A big takeaway is another trumpian, trumpkim reality show, photo op certainly on a huge scale with pageantry, less substance. There was a couple of important takeaways. Since after hanoi things fell apart, because of the topdown diplomacy which i have been a critic of, because of that the two leaders had to get together and put it back together. One takeaway is the door is now a jar. Now ajar. One cant be too optimistic. Moving forward in a more comprehensive and logical way. My other big takeaway which i dont think frankly here in washington and United States people see so much but having lived in korea for a long time, this image of an american president going to the dmz, the joint security area number even one who to Many Americans is as grotesque as President Trump in the way he does things is a powerful image. And the south korean resident being there is president being there is powerful. They are committed to Going Forward and it has a resonance and is important. I hope maybe they can build on that. Given the symbolism and how important a step this is, how effectively was this used when you put into context the fact we have not seen anything in terms of denuclearization . Kathleen what we have is the continuing de facto freeze, the absence of nuclear tests, most missile tests. [speaking simultaneously] kathleen exactly. No. There was not a single mention of denuclearization as far as i know and Public Comments in this public couple of hours at the dmz, nor did i hear sanctions. It was all about the show and relationship about these two men. It was about negotiations and it was significant President Trump had right behind him stephen capable and trying to develop a relationship with the north korean counterpart and get a process moving along. Very belatedly i would say after much lost time, there is a resignation recognition on the american side to get this process started. They opened the door one more time for kim to do it. Lets see if he can walk through it. Paul you talk about a powerful image but what kind of image does it send . It gives the message that kim jongun is accepted as a nuclear state. Kathleen it does normalize in a way i could not have imagined a year ago. I have made my peace with the tradeofft there is a and getting him involved in this process, something no other american president would have done or could have done politically speaking is something we have to try to turn to our advantage. That said the overthetop praise is something that doesnt go down well in many quarters. I dont like it and i inc. And hope behind closed doors there is some talk about the important issues related to north korea including the treatment of its own citizens. One thing trump could do yeah. Paul i was going to say if you could imagine a scenario where kim jongun would give up his weapons because look how much he has got so far. His aim is to be accepted as a Nuclear Weapon state, the dprk with him at the helm. What we can hope for with working level negotiations is to make the peninsula and region cap the program to get a commitment to go down that path and that is what diplomacy is, to see where you get. One of the criticisms of the iran deal is get rid of everything but iran doesnt have Nuclear Weapons, but it set people on a path. The path we need to get back on with north korea after they really let loose literally over the last several years. Shery you earlier mentioned sanctions. We did hear sanctions but from president moon jaein saying if kim were to sincerely dismantle, the International Community would be able to discuss using sanctions. Is this going to lead to the softening of sanctions without any denuclearization in hand . View is thatown there should not be an easing of sanctions with no denuclearization but at the same time i think it is a process and there can be dashed titfortat is not the way to put it, but there can be as north koreans call it, corresponding measures. In exchange for something meaningful and verified, north koreans to to reduce destructive capabilities, declare weapons, whatever the package is, that is what they should work out. Certainbegin to have kinds of not sanctions lifting for a rollback of sanctions that are exceptions, waivers that allow the South Koreans to pursue the Peace Process and north koreans to be exposed to what does a them if they move down this path. What we do see and although trump was not clear on this is a movement away from the americans in hanoi which is all denuclearization happens first and then sanctions are lifted, to something as i said diplomatic traditional approach which is something moon jaein is pushing for and i am sure he is pushing that privately in conversations with President Trump as well. Shery this seems to have been hastily organized. How much do you believe what the different consequences of potentially not getting what trump wanted with xi jinping on trade . I dont know. I relate this a little bit more to what kim jongun did. Maybe i am so korea focused but in the aftermath of hanoi, meet with mr. Putin and then receive xi jinping in pyongyang for the first visit by a chinese leader in 16 years. Kim jongun solidified his standing and tried to get his backing if sanctions are coming down hard, then prepared to try and negotiate more. The tradef relationship i see it more from the south korean angle where the south koreas are some koreans are relieved but also trying to figure out what came out of this discussion. Paul thank you very much, kathleen stevens. Plenty more to come. We will go through what came out of the g20 summit. This is bloomberg. This is bloomberg. Paul the trade truce between the u. S. And china may fuel of relief for rally of risk assets. Additionally it is a short lived a reprieve for the core issues of the dispute havent really been resolved and lets discuss that more with our Global InvestorsPortfolio Manager a mandolin. Amanda lynn. Is it going to be enough for a risk on rally . Amanda i think the g20 that , ipened over the weekend think it is around the main topic g20 summit. Also other countries among those g20 countries. Watching closely the development of the trade talk. In 2019 just looking at the trade data, south korea has benefited quite significantly from the trade talks and because they manufacture [indiscernible] that china does it export to the u. S. We consider the g20 summit outcome around the trade talk is broadly within market expectation, arguably more on the policy side because the u. S. Agreed to scale that [indiscernible]. Ny additional tariffs i see that as a positive sign but we will see more as temporal rather than a signal of any possible outcome because what has seen negotiation breakdown in the past with Trump Administration. I think the market will stay relatively silent on this case because they are working for a more tangible outcome. Huawei, amandaof , lets set aside the reasons why the u. S. Come bidets allowed to continue supplying huawei. Is that going to be news, might we see a rally in tech stocks in the shortterm . That will probably be the most surprising outcome that we see from the trade talks, that if u. S. Is happy to cover and scale back wally in the shortterm, and according to withouts comment is canceling, selling to china, they are still benefiting from the scale back in the short term. I think again it is hard to take tangible outcome from these temporary relief of the restrictions. Perhaps we will have a temporary it is not a signal we should position yourself in the equity market. Run hort shery in the short run with temporary easing, can we expect semiconductors and other rallies industries to rally . Personally i think i would take it as a temporary positive outcome rather than a signal. We have seen negotiation breakdown in the past. If Trump Administration has made a Similar Movement in terms of negotiation in the past, we must likely see negotiation breakdown again. Management the race Risk Management i wouldnt be positioning myself for this news. Shery thank you so much. She will stick with us. Plenty more to come. This is bloomberg. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Morning,0 a. M. Monday 19 minutes away, from the market open. Futures pointing higher by 1 tle bit of a quarter of after the outcome of the g20 meeting in osaka over the weekend. I am paul allen. Shery i am shery ahn. You are watching daybreak australia. Lets get to first word news. Su we start with the u. S. And china. They agreed for a trade war troops and say they will revise negotiations. Led after talking on the sidelines of g20, trump is delaying component restrictions on chinese telco huawei, letting American Companies resume sales grew he also said his meeting with xi jinping was far better than expected and he would not proceed with additional terrorists. Tariffs. He also became the first leader to first u. S. Leader to step into the dmz in north korea. He said stepping across the border was a great honor. He was 20 steps in, inviting kim to visit the white house next year. They agreed to resume Nuclear Talks that have stalled since februarys inconclusive summit in hanoi. Hsbc reported to have started a lobbying campaign to convince china it is not responsible for the rest of the huawei cfo in vancouver. They say the belt they want to position themselves from the diplomatic dispute that have this person held under house arrest since december. The paper said hsbc provided information for u. S. Prosecutors to build their case against the executive at huawei. Iron ore exports from australia will fall for the first time in two decades on a perfect storm of bad weather and production setbacks. Forecasts have been caught this year. It is bolstering prices to a fiveyear high. The department of industry expects australias exports of iron ore to be worth 5 billion u. S. In 2020. 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. Keenan. This is bloomberg. Shery lets take a look at how asias stock markets are looking at the open. Gainingikkei futures 1. 6 as we see the japanese yen weakening for a fourth consecutive session. It is risk on moves at the moment with trade tensions easing at the g20. Kospi futures unchanged but this after stocks fell in the last session, paul. Paul lets look at australia, new zealand, aussie futures pointing higher by a quarter of 1 following that reasonably positive news from g20 over the meeting the weekend. The anz trading for over 30 minutes this monday morning, off. 1 . Oint a quarter of 1 . Hong kong on a holiday, trading could be light but decent and noble news. The weekend developments are really adam make no mistake about it. First thing this morning the markets are showing us there is a huge sigh of relief you are seeing a pretty pronounced dip in treasury futures. The expectation is yields will rise when the bond market gets going. S p 500 futures up 1 . Movekind of magnitude of is unusual. Reticenceow much of a there was going into the weekend to really make any sizable scalable bets. We are through that, cleared the hurdle of the meeting. The big question Going Forward is a detail and snippets. Very little from the chinese side and indeed trying to understand exactly how proceedings will go over the coming months. Rally, and theon extra kind of factor for the eurasian equity market is the implications of the huawei news which was a surprise for a lot of people. You might have followthrough for tech suppliers to the huawei supply chain. Shery we continue to see our markets saying the rba will cut again this weekend and what would be the significance of lower longer rates in australia . Adam going into the rba meeting tomorrow and much of the market will be expecting another 25 basis points are cut. That is not a done deal but it looks likely and it would take the australian cash rates 1 or the 1 level is key if you look at history rates to 1 or around that. Key if you look at history. Markets have positioned for yields going lower and staying lower for some time. It was nicely captured by the rate strategist at j. P. Morgan. She said the feeling of inevitability with australian yields continuing to go near record lows, she is seeing this movie play out in other parts of the world and other investors have. On one hand you can pick up extra yield in australia which japan anddo in europe, but there is still if we get further and further moves by the rba to continue with loosening policy, to try and get a bid to cause serious inflation, then indeed australia grinds further lower into the space of the rest of the world which shows you a trickier spot the domestic economy is in global headwinds with china being such a gross death closely to close linked thing. Paul you can check out our library for the charts you saw there. Gtv on bloomberg terminal. Shery lets continue talking about australia. What about the decision on tuesday . Lets bring back our guest, omega Global InvestorsPortfolio Manager amanda lin in melbourne. The rba wants to push the Unemployment Rate below 5 . We are not quite there. Could we began to you a cut tomorrow could we be guaranteed a cut tomorrow . We are already seeing a 25 basis point cut to 1. 56 where i believe there wasnt really a recession yet. The market brought expectations saying it will be another 25 basis points tomorrow. My personal Economic Data isnt really that bad to support cuts immediately. In the background there is also the fiscal policy and tax cuts. For me the rba [indiscernible] watch closely how it will play out to the employment number and also the earnings number. Since the rate cut last time there is also important to mention the stock market rallied to alltime highs, [indiscernible] cut withpotential tax the cash rate cut to amount to 25 basis points and the earning has surprised us to the downside, they will still veryasing volatility sharply in australian shot market stock market. Shery we are expecting housing prices in less than two hours. This has been in decline for the top panel in red. How much will the Housing Market play into the rbas decision . Amanda i think the Housing Market [indiscernible] they are trying to tackle in the last year also. Substantially [indiscernible] to the housing sector. I dont think the decision should be based on the housing data because there is a housing sector they are trying to manage. Think with other things going australia should be focused on another tray discussion going on in the background with the asian the civic nations Asian Pacific nations. [indiscernible] of these trade talks. This will consist of 60 nations which includes six nations with china, japan, india, south korea, australia and new zealand. U. S. Also is not part of that. To observe how this is going to play out because this trade deal is potentially going to be counter for half of the population of the world. I think that is something they should be watching out for rather than the housing sector at the moment. While that trade deal is important, it is important to australia what happens with the u. S. China trade deal. Is rallyingollar strongly, back about . 70. You think start trying to jawbone the currency again . Outcome,hatever the there is temporary release, probably a temporary on the policy side outcome. But we cant really make any decisions, rba cant make a decision based on what i consider as temporary relief from that. We still have to wait to see how that play out between u. S. And china and there is still uncertainty with that topic. It is also important that china is working closely on this trade deal with other asian the beltegion and also and rude initiative. Belt and road initiative. This is the largest [indiscernible] across the region. I think china is putting effort in building to strengthen connection with all the other nations. [indiscernible] in that trade deal with the other Asian Pacific nations, it will help australia to boost the economy substantially. I want to get your thoughts on the fed. This is showing the markets priced in 50 basis points of cuts quickly it can be yes or no. Has the g20 changed the picture for the fed at all . Amanda i think the fed will have a rate cut this time. I wouldnt say it is a 50 basis point because the data has a really supported the affected basis point cut but the fed decision is not based on the outcome of the g20. It wasnt any signals out of that g20 meeting. More a temporary relief. Paul omega Global Investors [speaking simultaneously] paul thanks for joining us. We will have to leave it there but thank you for your thoughts. Coming up next we will talk about oil. That is an important story as well. Can we continue . This is bloomberg. Oil producers from the opec plus alliance moving closer on agreement, most of your to support keeping output cuts until early 2020. Most appear to support keeping output cuts until early 2020. Su keenan has more. How significant was this . X su very significant. Oil futures are racing higher. West texas as high as 60. Lets go to the fiveday chart one of the big pieces of news is the fact that for the first time u. S. Output topped 10 Million Barrels a day. Increased output and the slowing economy, opec has to grapple with this. We saw Vladimir Putin strike a deal with melodic mohammad bin salman. To have some type of ninemonth extension is what is actually going to be taken to the vienna meetings monday and tuesday. I am for an extension. That is needed for the current condition of the market. I am expecting a rather easier reading and hopefully we see the numbers. My expectation on the conformity is also to be higher than 100 . Su looking for 100 conformity but getting opec and the plus part all of its members to agree hasnt been easy. The socalled Group Meeting tuesday in vienna to coordinate. And the secretary has said the longer the horizon, the stronger the certainty. That is what is different, they are looking at 2020 eight nigeria, venezuela, iraq, they all pledge support. We saw oil going higher, futures fridays drop. G west texas intermediate as high as almost 3 in extended trading near 60. Paul what are the key issues in terms of reaching a formal agreement . Su we are seeing optimism and saudi prince and russia are the key leaders. If you look at the big picture for oil, a meeting monday and tuesday could really be the driver here in terms of getting prices which have been coming back higher. Cutsgreement to extend the , the Side Agreement and itignificantly new does think about the forecast shifting out even further. It gives some stability in terms of how the opec members will grapple with the price of oil. The reason they do this is to give control on the floor price for oil which has become of late more important. This is the last meeting in march. Significant iny driving the short price of oil. Paul thank you for that. Hot on the heels, hundreds of politicians of and business figures in china for the World Economic forum. Hot on the heels of the g20, hundreds of politicians and business figures in china for the World Economic forum. Set the scene for us. This is a chance for people from around the world, predominantly europeans, coming to talk about the global issues and china issues for this is the. Ummer down most davos it is an opportunity on the heels of the g20 which i was covering for them to discuss the ramifications of the truce. This is a troops. It is not a deal where the main obstacles not a deal. The main obstacles still remain. This was the same in when is areas. They came to a truce back in december. We saw it all fall apart. Optimism they are talking again but the terrorists riffs remain. Tar let me read through because they give a sense of where we stand. This could be temporary optimism good one said the best outcome given the circumstances, that i would agree with. But others say [no audio] shery that was Stephen Engle joining us. We will try to reconnect with Stephen Engle at the World Economic forum. He was telling us about progress made at the g20 on trade between u. S. And china. We will get back to that. Extremists any of our conversations, tv is your function. Watch past interviews and watch us live. You can also go into the securities and bloomberg functions we talk about. This is bloomberg. Erg. Shery i am shery ahn in new york. Paul i am paul allen in sydney. You are watching daybreak australia. Lets get a check of business flash headlines. Deutsche bank may cut or than a fifth of the Global Workforce and that would be its biggest shakeup in years. The ceo may approve the loss of 20,000 jobs when he presents his latest restructuring plan. The ultimate total hasnt been finalized. They told shareholders they are working on tough cutbacks after merger talks were dropped. Shery boeing facing scrutiny with the government committing records from a factory and staff in south carolina. This involves the 787 dreamliner and signals the investigation into the grounded is widening great in april grounded 737 max 8 is widening. In april the talked about the compromised safety. Paul a taiwanese carrier will hold new talks after failing to agree to terms with striking flight attendants. The negotiations broke down over the refusal to withdraw punitive measures against the cabin group , and industrial action will continue. They say the strike will cause the cancellation of 2000 flights by july 12. Shery a singapore developer has completed its one of asias biggest real estate groups with more than 90 billion u. S. Of management. The enlarged Capital Group will fromte as a unified entity monday having agreed to the property units from state Investment Fund in january. Paul that is almost it for daybreak australia this morning. We have trading in new zealand underway. We have trading in australia starting at the top of the hour or less check in on how things are going the hour. Lets check in on how things are going. The terms of the dos death it theion of tariffs yen is weaker, the kiwi dollar strengthening. Different story for the aussie, . 70 u. S. After a traditional risk on currency pair here it optimism as a result of that trade truce and the futures of the asx looking ahead to the start of trading. Higher by a quarter of 1 . Shery seems to be an upbeat market as we go towards the open. U. S. Futures also gaining almost 1 . This after the s p 500 saw the best month since january. We had big winners in material producers, banks leading the gains in the last session. This all coming on optimism over trade tensions easing between the u. S. And china. Our in the next hour we are joined from sydney with the g20. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Good morning. We are under one hour away from the Australian Market open. Shery good evening from new york. Welcome to daybreak asia. Paul our top stories, back on track. The u. S. And china are talking trade once again as President Trump throws huawei a bone that they can zoom to resume sales. And the president is the first u. S. Leader to set foot inside north