Challenge to washington and seoul, korea. We have the world covered here on daybreak asia. We will be live in beijing for chinas plans for a new silk road. In new york, all the details of the global hack attack. He careful as you turn your computers on. Liveis daybreak asia from bloombergs u. S. And asian headquarters. It sounds really ominous. It is just after 7 00 p. M. , those is a big story hospitals and government facilities being attacked, but all eyes will be on the bill and road forum, 78 billion in Infrastructure Spending pledged at the time we are a focus on data, retail sales data out of china. When it comes to the u. S. , theng seems to move much s p 500 2400 for the past couple of weeks. China,a big project from how will the u. S. And the rest of the world react. Earthquakelayy quality . We will examine that later in the program. We seem pretty stuck here. The retail Sales Numbers on friday did not eliminate anymore on where consumers in the market are going, so we will watch for economic numbers this week. Shery lets look at the markets at play. Openealand the only market at the moment, now rebounding, slightly unchanged after falling in the last session. He kiwi dollar also unchanged this week is all about australia. Keep an eye on on see banks, stepping up criticism of the proposal to introduce a multibillion dollar levy. Futures pointing higher, while the asx close lower. Also, look at japan with futures looking like this, lower following that drop in u. S. Stocks on friday, but also the mega banks announcing results in japan. The nikkei was down while the yen is unchanged at 113. 33. This is all to do with global world, although european markets seem to have on becomes after macr the youngest president of france. Betty lets get back to that belton road project, the project, xiade jinping welcoming World Leaders, describing his plan as the project of the century. Tom mackenzie joins us now. You have been there on the ground for quite a few days, so take us to the grand plans and how they might impact the world. Tom this is about china and xi jinping trying to recast globalization in chinas image. Use investment and infrastructure to link at this Overland Route and maritime route, linking asia to the middle east to europe, to africa , and they want to open up new markets. President xi jinping said this was a project of the century and would be a force for peace in a and theth many traumas difficulties, and he committed to an extra 70 billion of funding. Chinas Development Bank has allocated 240 billion, and it is thought china makes 10 500 billion to this project. President xi jinping lang this out in front of many dignitaries, including president putin of russia, president erdogan of turkey, who sent the center of economic gravity is now moving east. This is also about china securing its Energy Supply because china is the number one importer of crude. It has become dependent on other countries for its energy needs, and it is on that note that we spoke to the chairman of China National petroleum corporation, the largest oil and gas producer and china, and we asked about the potential of investment by assets,u. S. Energy particularly around the natural gas. Take a listen. The u. S. Has very rich or and gas resources, while china needs to diversify. American crude will certainly be one of our options as the u. S. Government is losing its restrictions on oil exports. It is strategically important for china to expand the natural gas ratio in its primary energy mix from the current 6 to 10 to 15 in the next 510 years. Tom that is the chairman of chinas largest oil and gas producer. About wasre talking this hundred day deals signed between the u. S. And china that opens up chinas markets for more imported liquefied natural gas from the u. S. I asked whether he would be interested in investment in u. S. Energy terminals. He said that is something he would consider. The broader context is that oil. Is producing less it cut back on investments because of the week oil price, and the iaea does not think it will be able to up that production much this year, so it does remain dependent on overseas supplies. Now the u. S. Will be part of that. Shery lets talk more about the belton road project. We have seen huge capital outflows. What are the challenges that rise lie ahead . One crucial challenge, Bloomberg Intelligence has talked about the fact that these capital controls are in place and whether or not that will hamper financing of some of these projects. The Chinese Government has been it anes to say that actually when it comes to belt and Road Initiatives, capital controls do not apply. We will see if that is the case. So many these projects are so diverse, so many regions, deployed by state owned and private enterprises. Financing is a key part of this. Tensions they came to the four between the european union, specifically germany and china, around language and International Norms in terms of financing these projects. Hoping for some internationally accepted language in the documents. They have not had that in china. That is a bonus contention. We also heard a few words of warning from the imf who said these projects do need to take into account the environmental impact, and we heard from americas representative saying there needs to be transparency and a level Playing Field when it comes to belt and Road Initiative projects. Shery Tom Mackenzie in beijing. Thank you. We will continue to talk about the belt and Road Initiative and half an hour. We will speak on the Business Opportunities from the summit. Right, lets get a checkup first word headlines. G7 finance ministers signaled a truce and the trade spat with america as treasury secretary Steven Mnuchin said the group was starting to understand washingtons position. That postmeeting statement merited the water down the language, but suggested a more pragmatic tone. Steven mnuchin declined to shun protectionism, saying the u. S. Would do what is best for itself. We dont want to be protectionist, but we reserve our right to be protectionist to the extent that we believe that trade is not free and fair. Our approach is to a more balanced to trade. It is important that protectionism is off the table. There was no disagreement on the fact that trade promotes growth and has to be inclusive, so i am very satisfied. Of course we need to make steps forward. There are different views across the g7 and g20 for that, but i am confident we can reach common views even on these issues. Haslinda the Un Security Council is to discuss north koreas latest Missile Launch, seen as a direct challenge to the new leader of south korea. The rocket landed in the sea of japan having reached an unusually high altitude, but so far is not capable of hitting the west u. S. Coast. Reports from japan say toshiba may win a government guarantee for almost 8 billion in loans. The Financial Times and says the state Investment Fund may take chipol of toshibas business. Video would include 2. 7 billion the deal would include 2. 7 billion each from the entities involved. Taking the lead on Building Nuclear reactors. Work at the power plant in georgia could start as early as next month. The atlantabased utility says they are working out a new Service Agreement. Westinghouses bankruptcy put at stake of the four Nuclear Reactors in doubt. The other two are in south carolina. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. I am haslinda amin. Looking ahead, chinas belton Road Initiative belt and Road Initiative saying pakistan may be the benchmark. Retail figures indicate the u. S. Economy on track for steady growth. We will discuss the outlook with j. P. Morgan. This is bloomberg. Week for earnings, cisco, alibaba, tencent. First to the earnings. Quite a few to keep our eye on. Vodafone,lmart and but the focus will be on tech and online retailers. 18th,a will be out on the the stock is up more than a third year to date. Investors are anxious to see if they can keep the momentum going, particularly with competition from jd. Com. That is presenting some competition. Then you have tencent, another online retailer, up by the same amount come out on the 17th with their numbers. ,he focus has been on tech valuations when it comes to apple. 8527, market capitalization passing 800 billion, and the nasdaqs five most viable and thigh you bull companies are nearing 3 trillion in valuation after rising 24 this year. That is more than the total by you of stocks in any market except for the u. S. , japan, and the u. K. , construction, the biggest number, because that can indicate if the economy is on a rebound. Construction nearing a decade high. A economists say Housing Starts likely rose. Industrial production also likely to rise. We have trump and a week of International Diplomacy and an International Trip on the weekend. Betty indeed. A lot to watch out for. The s p closing just below that 2400 level. Seems reluctant to break through. Volatility at the lowest level since 1993. Someone who remembers what happened back then. J. P. Morgan is with us. You mentioned in your notes that we are finding ourselves in a similar situation to 1993, 1994 turning ugly, so could we be repeating history here . Could be. 1994 was a surprise to all of us, 1992, 19 93, easy money, low volatility and everybody got into a Long Duration trade, which early in 1994, higher inflation, fed hiking created a lot of havoc and then the asian crisis. The question is is there a lot of average. I dont think it is in fixed income. They are still on the cautious side, not Long Duration positions out there, a lot more sanguine and comfortable than at the time. Gone through this big deleveraging and the u. S. , so that is not a headwind for the markets. What could be then . Is it what is happening right now in washington . How much of what we see with the continuing fallout over james comey and how that might impact legislative action in washington, how much is that being priced in at all or not yet . It probably is not. The markets learned that politics creates great headlines , but does not change the economy that much, so most of us we find it entertaining, but are not Building Strategy off that. It is all about the economy, and the question is the economy overheating, and in particular in the last few weeks, low inflation numbers, so it looks like a goldilocks environment, steady growth, low as it is, but not a lot of inflation. Shery not entertaining when it comes to dollar bulls. The dollar has been trying to push through the 115 level, dollaryen. It is subdued today, but has rallied 3 . It last three occasions happened, it was not able to sustain those gains. Markets are expecting is fed rate hike next month, could we see a difference this time around from the last three times . Is not fully pricing again. Bond yields are low. The market is very slow over here. The driver of the dollar, relative one pricing one country egg and see other is accelerating relative to the rest of the world, and it is not. Numbersectations and are steady. It is a mature recovery. The european recovery is accelerating, better numbers in emerging markets, so there is nothing wrong about the u. S. It is simply more exciting opportunities elsewhere in emerging and europe, thats why the dollar should not go very far here. Shery with the next Global Catalyst be china . Look at what is happening in the equities and bonds market right now. There is something going on within china. The government is trying to clamp down on the shadow banking world, but they learned a lot from the stakes in the u. S. And europe. You have to be very careful, so they are clamping down on the smaller banks, shadow banking. I think the probability of significant mistake given how china is learning all the time is pretty low. Im not really seeing things imploding from the chinese side. Back in the u. S. , we will get quite a bit of economic numbers, retail sales missing on friday. Housing starts on tuesday. Do think it will affirm that this economy is on strong footing, or have we peaked here . Isthe Second Quarter rebounding from a First Quarter, after sixery weak, years of each time the First Quarter being very weak and later on getting revised significantly. We have data volatility, adjustments to the First Quarter. The second will probably get 3 growth after less than 1 in the first, basically cruising, hovering around 2 , but so far not a lot of inflation, so it is still steady in the u. S. Shery thank you for joining us in hong kong usually in new york. The head of global Asset Allocation at j. P. Morgan. Up next, and on alert for what could be phase two of the global cyber attack. Warning of more victims on monday, we would take you why. This is bloomberg. Shery i am sure and in hong kong. This is daybreak asia. Betty i am betty liu in new york. Companies across the region should be on alert for a massive cyber attack. , you will bemac ok. Raimi inocencio has the latest. If you have a macintosh come you should be ok. Ramy basically this brand somware is ran targeting Windows Users because there are holes that people can get into. Let me go through what this is. Cry will make you want to cry if he gets into your own personal computer. It holds your computer hostage. Cant get back into your own computer and data unless you pay up. They are demanding at least 300 and asking for that in bitcoin. Dontises higher if you pay the first time. There is a countdown clock. If you dont do it within a certain time, you would lose your data. Developed atpon to nsa and was leaked the masses. Looking at where it has hit, everywhere from europe to asia, the united kingdom, the nhs had 40 organizations hit. That x hit in the united states. Russias interior ministry has been hit. Were also seeing one unnamed business in the asiapacific. Chinese gas station payment systems, atms hit. Lew of placesis a s across the world. You mentioned that microsoft users should be careful. How can they protect themselves . In march, microsoft released a patch. Need toey said you download this in case youre microsoft user, but when you see that, sometimes you think it will not be for me. I will be fine. You wont be fine. You do need to download that now. Microsoft is saying they are providing security updates for people who have windows dating back to 2001. That is how massive this is. Microsoft brad smith coming out ,ith a statement saying lambasting what has happened, saying the governments of the world should treat this attack as a wakeup call and need to take a different approach. If you are in cyberspace, the same rules should apply to weapons in the physical world. Download not a victim, that hatch. If you are already a victim, you can pay that ransom i guess. Betty shery it is 7 30 a. M. In hong kong. There could be a mixed open for markets across asia. Chinese features are up. We are 30 minutes away from the open of the first ager market. Betty and it 7 30 p. M. Sunday evening in new york. Mothers day by the way. Closing ont lower friday. I am betty liu in new york. Shery happy mothers day, betty. Betty thank you, thank you. Shery im shery ahn in hong kong. You are watching daybreak asia very lets get the first word news. China has laid the foundations for a new eastwest trade route, calling it the project of the century. Xi jinping hopes his misleaders for the bell it is inspired by the silk route that lincoln china to europe. They call it a source for peace in a world of challenges. Chinas oil and gas producer said the chairman of the operations that they have more than 50 joint projects underway in 19 belt and road countries. Cnpc isso told us setting its sights on u. S. Energy to fill the glowing growing reliance on oil. Policyakers will include with stability in financial markets. State media say the minister said that beijing will prioritize financial risk while continuing with the management Floating Exchange rate. Lee said china will look at leveraging and Economic Growth. The chinese aviation officials said china is negotiating with the u. S. And france for better air rights to meet growing demand for domestic flights. This contests domestic rights which have been defeated. This is part of chinas plan to boost air links in the one belt, one road trade initiative. Merkels christian democrats a decisive victory, handing her opponents of heavy defeat and boosting her chances in the september national election. They took about 34 in western celia. Westphalia. Chances of winning a fourth term. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im haslinda amin, this is bloomberg. Shery we are counting down to some of the major market opens in asiapacific. In sydney. M haigh sentiment taking a bit of a hit from the u. S. And economic data. We have the north Korean PeninsulaMissile Launch. What is the likely impact on other assets . Adam good morning. We are already seeing impact on dollaryen and strength there, though it has come off a bit in the past hour or so. I think you have got a combination of things really. There is that roll over from the missed inflation number we saw in the u. S. Ride a. That is going through to the australian bond, and bonds are rallying. Equities also getting hit by that. Remember charles on an charles evan, he is tal