Years auction, raising money for homeless in san francisco. This is Bloomberg Markets asia. We are live from bloombergs u. S. And asian headquarters. It is just after 7 00 a. M. In hong kong. Some breaking news crossing the bloomberg. South korea current account balance coming in, shrinking for dollars, a9 billion dramatic drawdown from may, close to 6 billion, also revised down to 5. 7 billion. That surplus is widening as well , close to 11. 9 billion. There are signs the south korean economy is doing well. Exports rising coming inflation picking up, so we will see how korea reacts in about one hour. Those meantime, devastating attacks in london over the weekend, days away from the u. K. Election, so we will see how this will impact the outcome. Will terror dominate what happens on thursday. Bull in thed to be a market knowing so much uncertainty lies ahead. Check out equities futures, how they are trading right now, this is the market close on friday. The futures right now are , ading a little bit lower touch lower, not a lot of volume on a sunday evening. It is an indication of the bearish sentiment. Rally after that jobs report. It was quite disappointing in the number, but as we have seen sometimes bad news is good news s because itet bull means the fed might not be hiking rates as fast as expected, and june is kind of a tossup right now. Continue to watch those lines from fed officials saying inflation is worrisome in the second half and what will happen there could still be a big question. Lets see how markets in the asiapacific are trading on this monday morning. No trading in new zealand as they celebrate the queens birthday. We are counting down to the open in australia. Futures saying a gain of 10 points on the asx 200. 47. 70 for wti. Rick accounts in the u. S. Climb for a 20th week. Rig counts in the u. S. Climb for a 20th week. We may have choppiness with that leg lower on dollaryen on friday after that u. S. Jobs report. 110. 47 right now on the yen. Milestones,enty of another record high for the hang seng and the kospi. Can markets keep calm and carry on, betty . Week,comey testimony this and the ecb meeting. Thats right. A lot on the agenda. Lets sort out with first word news. The australian Prime Minister has warned the china that its regional neighbors will not be pushed around. Speaking at the shangrila summit in singapore, he said smaller nations could band together. A course of finer would find its neighbors resenting demands to seed autonomy and strategic space and look to counterweight beijings power by bolstering alliances and partnerships between themselves and especially with United States. The world bank has maintained its outlook for the Global Economy, forecasting a modest despite Monetary Policy and rising protectionism. It sees expansion of 2. 7 this year, rising to 2. 9 next year. Confidencecking up, is improving, and financing conditions remain benign. Innas biggest coal miner talks about a merger. The negotiations are at an early stage and may not proceed. The Hong Kong Listed units of the state own company said they will be noted of significant matters while subsidiaries have requested a trading halt. Foxconn chairman says apple and amazon are supporting his pursuit of toshibas flash chip memory unit. The two have offered financial. Upport for the bid the foxconn boss has confirmed his interest in buying the unit. The japanese authorities want a domestic bidder to step forward to prevent the technology from going abroad. Toshiba struggling nuclear unit has reached a deal to end a twoweek lockout at its plant in new hampshire. Westinghouse has agreed a threeyear contract with the Boilermakers Union that will run through 2020, covering 172 employees who will return to work on monday. No details of the agreement have been released. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Thanks so much we have big interviews coming up. We will be joined exclusively by jamie dimon. That is one to watch. Our top story, a claim of responsibility for the terror attack in london. The rampagell from on London Bridge stands at seven with dozens more injured. Lets get the latest live from london right now. The third terrorist attack in london in three months, bring us up to date, what more do we know . State in the last hour has claimed responsibility for the attack, campaigning suspended for a second time in that election, a truce brokered by theresa may as she addressed the country from downing street saying, enough is enough, extremism has been tolerated for too long. Seeking more wideranging powers to tackle extremism. Thatis significant is frequency, three attacks in the many months, two of them in london. If it affects the election remains to be seen. Office, irive to the heard new york senator Chuck Schumer say there is no imminent threat here in new york, from what he can tell, but i imagine in major cities across the world that there are heightened alerts. What is the situation in london right now . On thee is a focus iconic bridges targeting pedestrians, but the amount of armed police, a show of force we have not seen in london in decades. An unusual sight for a city where police typically dont carry weapons. Continues, 12ion arrested, for property searched come although police say they are increasingly confident that three men who were shot dead at the scene are the only perpetrators of the attack. 21 are in Critical Condition in hospital. Perspective,ort London Bridge station remains closed. It is a key transport hub bringing in commuters from across the southeast of the country. You so much. Keeping us uptodate to date on the latest after the london attack. President trump reacted swiftly to these attacks, tweeting out in burst after burst what is going on there and london, but also how that might affect his agenda here. We are in washington, what are the what is trump likely to do in reaction to this . , about thetweet out executive order, the travel ban which is right now mired in the courts. Might this get that travel ban a boost . Trump said in a tweet theerday that we need courts to give us back our rights. That is not up to him to say. The decision will rest with the Supreme Court, and on that, action will start next week. So far the courts have been pretty nonfriendly to trumps travel ban. The one court declared it was something that was steeped in animus and targeted towards a specific group. I dont think the Supreme Court will be swayed by trumps of jawboning, but it is something that plays well with his supporters, and certainly there is a lot of concern across the board about security. Will be one issue, but i think all eyes will be on james comeys testimony this week as well, mixed signals from the white house whether they will invoke executive privilege. Could that be an uphill battle for the president . What are we hearing on the latest for that . Like executive privilege would be hard to argue in this case. It is hard to argue that the white house should keep the deliberations between trump and comey secret when trump himself talked about his discussions with comey in a television interview, and again on twitter, so his use of social media can be a problem for him. Another possible thing the white house could do would be to try to pressure the Senate Intelligence committee to cancel or postpone the hearing. I would say that is a long shot too. To james comey is due to speak twice on thursday, publicly, then in a private hearing, and it could be pretty explosive. Absolutely. We will have to watch for that one. Ahead. Continue our look coming up next, ever core isi joins us live from washington, d. C. And a moment. Later this hour, the pound slumping on the london attacks. We look at the currency outlook with Goldman Sachs. This is bloomberg. We are accounting you down to asias first major market open. Futures lower given the substantial rise on friday. This is daybreak asia. Plenty for u. S. Lawmakers to , congress back in session. Chief among them will be testimony from james comey about the russian investigation. Lets bring in terry haines, the senior political analysis at evercore isi, a Senior Adviser in congress. I know we had some trouble getting you on skype tonight. First off, there is so much for the market to digest, the james comey hearing, the jobs report from friday, and doddfrank coming back in congress. What will be top of mind for investors . Good morning. Good evening. Is that it will be fundamentally whether the trump continueation can to push on tax reform and where the republicans in congress are willing to do that. Dominate, and anything that is a distraction slowness, whether the of the Affordable Care act, repeal and replace, the james comey testimony, anything else, it does tend to detract and distract from that, but there will be plenty going on. We have the World Bank Report just issued a few hours ago, and in that report, the world bank did not factor in things like tax reform or infrastructure spending. Do you think that is the world banks way of saying we dont think this will happen . I cant put myself in the shoes of the world bank with any authority, but let me try. I think what they are saying is we dont know whether this will ite off yet, and we think if doesnt come off, it is wiser not to included, but we still have today tax reform in the United States happening in a window between the end of 2017, november, december, and the first or Second Quarter of 2018, and i think that will continue, but if the Affordable Care act reform bogs down, it may take a lot of the legislative oxygen out. Only have so much Political Capital to start your presidency, right . Something else that might be are as a diminishing chance multiple rate hikes this year. I want to pull up a chart, 9107 on our bloomberg terminal, which the chances of a september rate hike now are less than 30 . Do you expect that to continue to fall, the chance . We think it is too soon to say frankly. Are on track for june, but there is a lot of concern about the economic path ford certainly. With a few months left to go, we think it is anybodys guess. We have said that we think that the fed is still on track for ise hikes, but whether it september or not, i think it is too soon to say right now. Were just speaking about this comey testimony, the backandforth from the white house and whether the president will invoke executive privilege. Will puthat this result on the russian investigation, but what message with that send . I dont think that would send a very good message. I must say that i think it is very unlikely that will happen. What you have got is a situation thee the former director of fbi is testifying. He has 30 talked a great deal to former fbi director mueller come the special counsel, so he has some idea what he will say. Testimony has been coordinated with the special counsel to some extent. I find it very unlikely that executive privilege will be invoked here. If that was going to be the case, i think it would have already been done, but fundamentally, you will do Something Like that, it does not enhance the perception that you are being truthful, no matter who you are, so that would be a drastic step, and yet another reason why it is unlikely. Me about the shakeup in washington right now that may be emerging in the white house. We saw the resignation of the Communications Director last week. You have h. R. Mcmaster writing a show James Madison in a went through a lot of effort to drive that idea home, but then you have this paris accord, you have steve bannon, a big victory for him. He think is the most influence on the president at the moment . Thatthink stories like generally are far overblown. Extent isto some using the individuals in the white house, and the white house people are using the press to trying to get their own versions of stories out. What you have in this are fairly bold efforts on a lot of different whens simultaneously, and you have that, you are always going to have some internal jockeying in the white house. I think this is largely that. The president gets frustrated with one or another members of his team and lets that off more publicly than past president s . Sure i do. Do i think there will be consequences . No, i dont. Any white house needs to hold down both flanks to move on all these fronts. One less question on the james comey hearing. Testifying as ad whe private citizen. Im assuming there is nothing that holds them back from giving the full story. Do you think we will get something from james comey that is going to be seriously damaging to the president , even havee point as democrats been talking about, rising to the level of impeachment . I think that is highly unlikely. He goes back to an earlier point i made. It goes back to an earlier point i made. The special counsel is there for a lot of reasons, and one of them is to get to the bottom of a lot of this stuff. Do st thing you want to i have done a lot of highprofile investigations but what you dont do is you dont let a witness go out and locktential witness and too much of their story down to early. That generally does not happen. I think what james comey is likely to do and you can see a little bit of this in the United States i think what james comey is likely to do is to talk a little bit about his thoseews on things, but who expect some kind of romana clough tellall are likely to be disappointed. Thank you for joining us. This senior political strategists and head of political analysis at evercore isi. You can find our interactive tv function at tv. You can watch us live and see previous interviews like this one. You can dive into any securities or bloomberg functions we talk about and become part of the conversation by sending us instant messages during our shows. This is for bloomberg subscribers only. Check it out at td tv. This is bloomberg. This is daybreak asia. Toyota has confirmed it sold all its holdings in tesla. The Company Confirms the end of their collaboration for the time being. Toyota bought a stake in 2010 to relationship. Spacex has taken a step towards affordable spaceflight, sending a recycled rocket to the space station. The capsule was lifted into orbit in florida. Supplied aly laboratory in 2014. Elon musk tweeted, reused rockets, good. That is how it is for cars and planes. Girl power all around. For one of brothers, wonder woman taking top spot at the weekend. Cost 149 million, earned more than 100 million on its debut. Warner bros. Has been banking on wonder woman after its two previous leases were panned by the critics. I have to watch that one. Yes. We are counting down to the open in japan and korea. Trade infutures and chicago, a 1. 6 rally for the nikkei 22 five, losing some steam in tokyo, down 45 points with dollaryen well above 110. Up next, the disappointing jobs numbers out of yvonne 7 30 a. M. Monday. You can see the rain pounding. We are minutes away from the first major market open. Betty i will take that over cold weather. 7 30 sunday evening in new york. Showers all day. The markets are ending as we saw on friday at a higher note after the disappointing jobs report. I am betty lou in new york. Yvonne i am yvonne man in hong kong. But the shery ahn. Shery theresa may will seek new antiterror powers if he wins in this weeks elections. She said there has been too much tolerance of extremism in the u. K. It left seven people dead and 21 critically ill. The campaign has been suspended for a second time. It was halted after the Manchester Attack as well. They are trying to counter the growing threat of terrorism, linked to the socalled Islamic State militant group, the need terrorist activity was high on the dialogue at the shangrila singapore dialogue. Tradering commodity noble pieces another tough faces another tough day after its shares plunged working percent friday. 14 friday. They wanted to extend their Credit Facility to the end of the year. The listing in singapore, shares are at the lowest in 17 years. The oecd said quotas for promoting women is something japan could consider. Gives shinzo abe the credit for trying to raise the status of women in the workforce, but more needs to be done especially in the private sector. Japans Business Culture is traditionally maledominated, but the labor shortage needs more workers. Global news 24 hours a day, powered by more than 2600 2700 journalists and analysts in more than 120 countries, this is bloomberg. Yvonne lets get what we should be watching out for. The latest on Bloomberg Markets from adam haigh. Are the london terror attack and the u. S. Jobs numbers from friday. Pretty quiet elliptically speaking on the pound, but relatively speaking on the pound, but how is asia reacting . Adam remember it is still early for the pound trading in asia, volumes are pretty light. Lets see how the day develops with london waking up. Relatively muted at the moment, markets telling us they are looking for probably a majority on thursday. We do have a big week coming up with the rba decision in australia. We have r. B. I. Later in the week. There is plenty going on. We are keeping an eye on the mexican peso as well. There is a state election that might have ramifications for the election last next year. There is plenty to get heads around, but not much sentiment here. Ve risk on we saw stocks closing at a record on friday. Now we see 10 trillion with equities in the last 12 months, so investors are taking a breath after the huge gain we saw in japan. Yen probably weighing on the tokyo open. Betty we have seen the nikkei 225, adam, punch through the 20,000 level. It keeps adding onto those gains, but u. S. Investors are not impressed with this. Why arent they jumping in . Adam yeah, that is right. If we bring up the bloomberg terminal chart, we can see how investors are happy to be involved in dollar terms. The dollar index is doing relatively well. There is a reluctance of foreign investors, particularly americans, to get involved. A few t