Economy and growth is slowing. We have world coverage on daybreak asia. Be joined by bigname guests at the finance ministers meeting. We will also be live in hong kong, and beijing. Betty President Trump is meeting president xi jinping right now in the u. S. We will be live there and in new york for all the reaction. This is daybreak asia live from bloombergs u. S. And asian headquarters, i am betty liu in new york where it is just after 7 00 p. M. It is just after 7 00 a. M. Here in hong kong. Man. Man yvonne one wants to make America Great again and one has a chinese dream. Betty they both want to make their countries great again. A big fight between these two coup leaders, the most important leaders for the Global Economy in the world. Certainly a lot on the plate here. You can see that tension in the u. S. Where investors were nervous. Butid and mostly higher theyre also nervous about the jobs report tomorrow and what those numbers will mean for the fed. We did not give you much of a lead in going into asia. Yvonne that adp report set the bar high. We will see how it plays out later on friday. Some caution here one hour into the session and new zealand. The index down one third of 1 . We are hovering around the sixmonth highs, the kiwi dollar at 69 u. S. Cents. There were comments on housing and labor markets,. 7541 four the aussie. Weree dollaryen missing one line. We see the dollar recover over 5, closer to that 111 level. Futures trading now, looks like a pretty good open in tokyo this morning. Our top story, President Trump at a highstakes summit with chinas xi jinping at his maralago report in florida. The threat of north koreas missiles and tensions over trade hangover the meeting between the leaders of the two largest economies. Joining us from palm beach is ramy inocencio. Tell us what is happening now in the mood you are feeling this morning. Beach. O from palm it is interesting to be a fly on the wall. The president s and their entourages sat down to dinner. It started 30 minutes ago. When it comes down to the substantive part, today is hello, tomorrow will be the big content, they will talk about jobs. Donald trump has said china has a stolen u. S. Jobs over the past few decades and he once to wants to right that. I want to dive into the bloomberg terminal. On the right side of your screen you can see the blue line chart u. N. Has been range bound since the start of this year, trading 6. 8, 6. 9. The forex reserves falling to 3 trillion or so. You can see they are trying to prop up the yuan. Take a listen. For the last year, china has been trying to prevent the devaluation, to support the renminbi. It makes it difficult to look at the Current Situation and reach a conclusion that there is currency manipulation. Clearly, there is a transition underway from a to a more marketoriented Exchange Rates. Are in thentions opposite direction from what you look at, in terms of measuring manipulation. He, currencyal manipulation is not on the menu today. One other thing likely on the menu is the u. S. Trade deficit with china. Lets go into another bloomberg terminal chart. You can see on the right side of atr screen it ends in 2016 347 billion. Roughly half of the u. S. s total global deficit. That is something donald trump will be talking about with xi jinping. Major content talks tomorrow. Betty the deficit situation between the u. S. And china, a very tense situation we have been hearing about for the past several days with north korea. What should be expect between the two coup leaders two leaders . Ramy analysts say we should not expect anything substantive from this meeting. It is the first time the two leaders are meeting facetoface. But the ramifications are huge donald trump has been pushing china in some way to make north korea resolve it situation. Check out this function. Koreas biggest trade partner is, guess who . It is china, at about 6 billion. If china pulls out, what does that mean . It could mean a north korean explosion. Also, refugees going between the impact, and economic war, and 25 million South Koreans on the border. A lot of these issues here, donald trump said that trade in north korea will be at the top of his agenda. , ramy thank you so much inocencio in palm beach. Lets get to the first word news with nina melendez. Indian bonds fell after it it kept the benchmark unchanged. This is the latest surprise from governor patel. Aftersed the reverse rate shifting its monetary stance in february from a quantum from accommodative to neutral. A prominent wall street figure has raised a flag over the state of new york economy. He says growth is flowing on concern that President Trumps agenda may face obstacles in congress. He says that the u. S. May be the slowest growing nation among g7 countries in the First Quarter. Jamie dimon said u. S. Is exceptional, but something is also very wrong. Dimons claims are false. He said at the problem has been solved and that in crisis, bondholders would take losses rather than taxpayers. Kashkari he says it sounds ideal but is unrealistic and rarely works in real life. But he did agree to call for less complex regulations. Toshiba has an improved bid from its chip business. Near ¥3ys it is trillion. They need to recover from their accounting scandal and westinghouse. They have received no bids from japan. Global news 24 hours a day, powered by 2600 journalists and analysts in over 120 countries. Am nina melendez, this is bloomberg. Betty stocks are advancing ahead of fridays jobs. That nervousness did not push the indexes that far. Is tatiana with more on what happened in wall street. We have seen caution in the markets at the end of the trading day. Gainingwe saw stocks and rebounding from the drop yesterday. Now as you said everyone is watching the meeting with president xi jinping and the jobless payroll report tomorrow. If you dive into the bloomberg and looks at the performance and s p 500, we are seeing energy and financials leading gains today. Energy stocks benefiting from that increase in oil prices we have seen today. It was interesting to see financials gaining today, given what we have heard from gary cohn, that he would support bringing back the glasssteagall act. Betty when he said that, financials actually rose, is that right . Yes, very surprising. You think it would drop on a comment like that, especially from the banking executive. Analysts say they do not think it will happen, and that republicans have higher priorities right now and they certainly want to ease regulation and not make it stricter or completely change the way banks work today. Yvonne there is also a lot about health care. The gop proposed tweaks to their legislation. How did the market react . We have seen republicans adopting that today. If we look at the market reaction, there has not been a big move. Hospitals would be the first place to watch. It hasook at biotech, outperformed the Broader Market this year. Hisident trump focusing agenda on the Obamacare Repeal and now trying to focus on tax reform. Yvonne thank you, joining us live from new york. Record earnings made samsung First Quarter profits. We are expecting those numbers any minute now. Betty leaders of the economic heavyweights in florida. We talked to a former u. S. Ambassador. Watch out for the unexpected. This is bloomberg. Yvonne this is daybreak asia, i man in hong kong. Betty i am betty liu in new york. In florida. Meeting our next guest says it is unrealistic that they will resolve Critical Issues at this summit. He is the former u. S. Ambassador to the asian bank under president bush and obama. And our china correspondent Tom Mackenzie joining us from beijing. Curtis, lets start with you. You did say to expected the might we expect to this even though these are scripted affairs . Indeed. I think we have seen already this is a u. S. President that is doing things unlike any other president so far. We have two coup leaders with contrasting leadership styles. Xi jinping, truly scripted. President trump, unpredictability. But back at work to his advantage. It is a chance for both leaders to set the agenda for the next four years. At this stage it is not about the tweet a bold deliverables. It is about setting the stage for what they will focus on in the weeks, months, years ahead. Yvonne you do not think there will be concessions here . They mentioned a gift basket of tweet a bold deliverables, you do not think that will happen . No clues on what will happen with trade . I think each side is now playing to domestic audience. Each side wants to be seen as very strong. How do they work that relationship in a way where they know the world is watching, but when the u. S. And chinese domestic audience they are worried about different things. The u. S. Under this u. S. President focused on jobs, a stronger that hopefully more beneficial relationship between the u. S. And china that many think has not been there the last 16 years. Tom i know you do not think there will be conflict resolves but i want to draw on your experience from the development bank. There has been suggestions that president xi could offer help with Infrastructure Spending in the u. S. , possibly via the Chinese Infrastructure Investment bank. How realistic is that as an option for the chinese . Having done so much business from my site on china, we have to differentiate between the grand announced and and promises. We may well see those out of this summit. And the reality on the ground later. But onesee memorandums, or two years later, what has happened . There will be things both sides want to focus on. But the details will have to be thought out. Each side wants us to go well. In some ways, trump is already a winner in that it is xi jinping traveling to the u. S. For a day to florida on President Trumps territory, and flying right back out of the country. Trump is already the winner. But they will lower people ares, given not fully in place in this new administration in washington. Betty i am so glad you mentioned that. I thought it was interesting myself. Xilerson greeting president first, versus trump coming in secondly. Asserting himself more coming in separately and making him wait to meet him. These ceremonies and symbols, but i want to this is notiewers, the first time that two leaders have met amid tensions and awkwardness. If you think back to when george w. Bush greeted the president and washington, lets show some of these pictures. It was notably one of the most awkward encounters. You see president bush manhandling him during this photo op. It was a time when there was a protester almost for a minute or so shouting at the chinese president. As a scripted as they try to make them, they often are not. I am curious, how nervous of the chinese that Something Like this is going to happen . But something somewhere is going to make their side look bad . We spoke to people here leading up to this event, the chinese involved in this meeting. We got the impression there was a division among president xis advisers over whether this was a good idea because of these potential gaffes and missteps. They have gone through every minute of the schedule for the time he will be spending with President Trump to try and control it is much as possible. Itweve been talking about, is difficult to control when youre talking about President Trump and the potential for a tweet or race range handshake or something of that nature. That is a concern for them. Hu was more stiff than president xi. Is coming into this a stronger president. Hopefully it will not be a trump and more gold situation with no handshake. The timing of all this in the meeting is crucial for president xi jinping. It is an important political year, ahead of the 19th peoples congress. Xi bring what will back to china to defend National Interests . He is facing trade hawks and those Wilbur Rosses of the administration. Two most important leaders in the world coming together to talk as equals is a powerful image already. It comes quite early in a new u. S. Administration. In the past, chinese and u. S. Leaders have met early, but on the sidelines of an a different summit. The timing you mentioned makes sense. You get toand closer these key Party Congresses and other meetings in china, the focus will have to shift to much more domestic, what is happening in the economy in china. It works out terrific for both of them. Expectations are lowered at this stage. Across the board, people are seeing it is about agenda setting. When you talk about trade and economics, clearly the chinese would like to focus more on that than the South China Sea issues in asia. Betty what happens after this . These 24 hours, they are meeting in maralago, which in a way lowered the importance of the meeting. It would be different at the white house, more formal. Is in a President Trumps turned to go to china . It is no less important because it is in it is no less t because it is in florida. [no audio] you do not think there is symbolism with the meat myanmar lago as opposed to the white house . Curtis there is symbolism. We are on President Trumps territory. It is not a state visit with all the pomp and circumstance of the white house. It lowers the expectations. This week in washington we are are you seeing movement on President Trumps nominee to the supreme court, a critical week for the president. This is one of the big stories donald trump is leading on. In office 75y been days and look what this president is doing. I hope hopeful for the u. S. China relationship and this is an important first step. Will china be declared a currency manipulator . There is a deadline coming up. Had tont trump has moderate somewhat from the issues he raised on the campaign trail, where he was going to label china a currency manipulator on day one, that it was a possibility of a 45 tariffs on chinese products. That will not happen anytime soon and that is better for the relationship as the relationship matures and they get a better sense of each other. That is why this meeting is so important. Tom given what you just said about the one china policy, if we assume the meeting goes well and we get assurances from trump to the chinese side and vice versa, how much faith can the chinese put into any assurances they get from trump, given he doesnt uturns on things like does uturns. We have the latest on syria and russia, potentially changing alliances there. How can they take any assurances from the white house, given President Trump appears to be fairly happy to flipflop . I differ with your question. I would ask the same question to the chinese. The chinese have raised issues and what they think are solutions, but still they continue to act as they did in the past. The South China Sea is a key point. I remember going back to president reagan and his quote about trust. Each side says, but you look at what they do. From the chinese side they will evolving tradee policy and economic policy. From the u. S. Side they will look at the other key issue, which is north korea. The chinese in the past said they would make efforts with other key friend and partner, north korea, to moderate that nations behavior. That has not happened. How can the United States trust with the chinese are saying . This goes back to the importance of this meeting. Each side will get a sense of the other side. A critical question after these summits, what happens on the ground. Lets focus what is happening on the ground. Statement,heard that read that statement from Rex Tillerson that after the Ballistic Missile was launched, it was a very odd statement. We know this happened in the u. S. Has said enough on it and we have nothing more to say. People looked at that statement and said, what does it mean . Do they not know what they are going to say . Did they say enough . What did that statement mean . It is such a short statement, we have said enough about north korea, were not going to say anymore. I almost want to follow it up with, what are the chinese saying about north korea . Another important meeting happened this week in washington. Singapores defense minister met with u. S. Secretary of defense mattis. Is the secretary mattis secretary of reassurance. This is what this summit is about in florida. Each side is trying to reassure the world that this relationship will continue. Naturally there will be ups and downs. But my hope is that there will be progress, whether it is north korea or trade and economic issues. Ultimately, all these issues are linked. You cannot separate defense and economic issues, particularly in the u. S. China relationship. We do so much trade in that South China Sea. Yvonne we will ended on that optimistic note. Thank you for joining us. Yvonne it is a happy friday outside hong kong, 7 30 a. M. , 30 minutes away from asias first major market open. Betty it is a happy, clear friday. Not so much here in new york, very dreary and rainy. Yvonne lots of clouds. Betty it is good clearing up. A littlenot so clear, muddy. S p closing 2 10 of 1 . I am betty liu in new york. Yvonne i am yvonne man in hong kong. Start with the leaders of the world two biggest economies meeting in florida. The economy and the threat of north korea on the agenda. Allowingt maralago, a more relaxed atmosphere. Warned the meeting would be very difficult. The u. S. Has signaled it may take military action on syria after President Trump said the gas attack crossed a redline. The pentagon is actively developing options including cruse missiles, to target forces loyal to president assad. Rex tillerson described tuesdays attack is a serious matter that requires a serious response. Top finance Officials Say trying to curb volatility in the ringgit are sufficient, and it should strengthen the currency. They pulled almost a billion dollars in four months through february. The second finance minister says th