They will pay most of the cost of the costs. A 5 billion hit. We have the world covered here on daybreak asia. We will be live in new delhi with reaction on Prime Minister modis meeting in washington. Betty we are watching the latest on the travel ban ruling as well as the latest on the Health Care Bill. With the new version, and what the new version says. , am betty liu in new york where it is just after 7 00 p. M. Yvonne it is just after 7 00 a. M. In hong kong. We are going to be staying on top of takata and is bankruptcy. We will here about the stock. Howt of questions here on bondholders, the carmakers, are going to be repaid through this entire process and where does takata go from here . Of questions to ask after that 1. 6 billion sale of takata core assets. We have the ceo in just a couple minutes time. Betty that exclusive interview. Cannot wait to discuss all of those issues, yvonne, that you just outlined. More ahead on daybreak asia including a closer look at the meeting between President Trump modi of india. With the deals mean between the two and what is likely left on the table they need to resolve. Much of that having to do with the its one b visa and trade. H1be going to be the visa and trade. How it is inis asia at the moment. Slow going in new zealand for the we are down about. 1 . Australia, we had an interesting seriousness with gold overnight. At onevolume spike and point, the prices fell just 1. 6 in a minute, so a little bit of recovery, but want to watch through the australia session. The aussie not doing much. Futures pointed to pretty much nowhere for the essex 200 today. The asx 200 today. Unchanged for dollaryen. That has been the theme for the whole week. Futures pointing higher. Expecting a 90 point gain at the open when it comes to the nikkei 225, up about 1 10 of 1 on monday. What we are expecting the region softer data out of the u. S. That set the tone. Betty that was worse than what economists had estimated at it meant the markets ended mixed. We saw them taking a brunt of that. Francis and utilities, those sensors gaining in todays trade. I want to gettis su keenan, who has more on the trade today in wall street. Keenan,t to get to su who has more on trade today wall street. Su we had a surge in the afternoon and mainly some positives on the screen. A little green. You see red on the nasdaq, but what is important him and nasdaq 100, it has recouped two thirds of its recent selloff. The big movers, spotlight stocks. Big moves. Rite aid gained by almost. 3 as an unnamed antitrust attorney indicated that the walgreens deal might get approved. Nicely is high for the year. We reported yesterday that they took of three point 5 billion stake and he is looking to make strategic changes. Alphabet does a deal with avis. Everyone is jumping in on that one. Tesla was lower. Left out of the party. Let us go to the bloomberg at btv 410. The attackde trade has been wide. Look at the top box. That white line is the msi all caps eworld infotech index, 30 day volatility. Right where the circle is and you see a huge spike in the whit. The lower box shows the spread between the next is. Pailhas been the wild swinging around. So we thought it lower in treasury yields as well as the dollar. Softer data when it came to factory activity. What is the story there . Su this is closely watched because the durable goods that a lot of companies by an indication. That was not only more than twice the rate forecast, but the most in 18 months. Big negative surprise here for these longlasting factory goods. A key category. Most of the bad news was concentrated in the civil and military aircraft categories. We did have a little bit of an uptick in transportation, so that is a slightly better story. This week, we have a couple of reports coming out. What is interesting is that they include housing, employment, a. C. T. Manufacturing, and inflation. Want to know how inflation is doing . Let us look at global inflation. Take a look here. This is showing you a brief burst of inflation on the global front. What we are looking at here is the economy yearoveryear calculation on the most recent cpi. The bottom panel is the surprise index. He see a big drop lower on each of these indexes. The negative rating means inflation has been lower than expected. Is it going to rise . That is a real big question. We are seeing bursts along the continuum, but not in the place we are right now. Su keenan, thank you, with the wrap up on wall street. First word news with alisa parenti. Warnedident trump has the indian Prime Minister that his country must do more to reduce obstacles to exports. They had a joint public appearance. Trump said the two countries must have a trading relationship that is fair and reciprocal with barry is removed. And our conversations today, President Trump and i have discussed all dimensions of the end yeahu. S. Relations. Those nations are committed to a e that willrchitectura take our Strategic Partnership to new heights. Alisa carmakers fear they will end up shouldering most of the costs to replace takatas lethal airbags. Yoda toyota and honda say they face exposure for which they are unlikely to be reimbursed. The author bed maker is owned by chinas group. U. K. Prime minister, theresa may, is being accused of jeopardizing peace in Northern Ireland by reaching a deal with the protestant group to shore up minority government 18 days after the election. The Democratic Unionist Party is ready to support her conservatives at westminster. It includes a billion pounds at west providence denounced by leaders in wales and scotland. The Prime Minister gave details whohe rights that citizens live in the u. K. Postbrexit. That failed to convince brussels. Barnier michel says more assurances are needed. May insists her offer is fair and serious. I want to reassure people that under these plans, and a citizen in the u. K. Lawfully will be asked to leave at the point the u. K. Leaves that you the e. U. We wanted to stay. Alisa in more than 120 countries, this is bloomberg. Anchor all right, while the u. S. Supreme court handing President Trump a partial victory on his controversial travel ban. The justices voted unanimously to allow a limited version to go and affect. Joining us now to discuss that ruling is lori asil. Narrowerore about this interpretation of the travel ban and of course, what people have been zoning in on, the bona fide ties to the amended dates and what that means. What the court said is that for now at least, the government can ban anyone who does not have some sort of relationship with the u. S. That meaning a job or relative or being admitted to attend a university. People who have that type of relationship can enter the u. S. Also, three justices, clarence neil gorsuch, said they would have voted to let the entire band take effect. Betty from now until the hearing in october, what happened exactly . Laurie as the court said, this partial ban will be in effect. It is supposed to be a 90 day ban. The government is intending to do a review of its vetting procedures during that time and decide whether some change must be made. Yvonne we did get that cbs score of the Senate Health care bill as well. We will dive into that later. Tell us what you are hearing from congress so far, in particular, the three republican senators who oppose this Health Care Bill. Aurie right, we just moved headline saying three republican senators plan to vote against bringing this bill up for debate this week. The three are Susan Collins of maine and dean of nevada, who expressed concerns about the cuts the bill would make and medicare. The third one is rand paul of kentucky. His argument is that the Health Care Bill does not go far enough to repeal obamacare. That is putting Mitch Mcconnell and a bit of a spot because he is having to find a way to appeal to people on both ends of the spectrum rather than just please one side. Anchor and as the Congressional Budget Office, their score on the bill, going to sway it in anyway . When we saw that people were uninsured by 2026, it is one million less in the house bill. Can you call that an improvement . Laurie the cbo said by the next decade, fewer people will have insurance that may would under the Affordable Care act. I know collins said earlier today that that is problematic. That is the score people were waiting for. Most likely, people supporting the bill were hoping that number would be lower. Asseo, thank you. More later on in the program with michelle from the center for american progress. Betty up next, we are going to hear from takatas new owner. How key Safety Systems is this deal playing out. This is bloomberg. Yvonne we are counting your down to asias first major market open the 20. Japans tutors were up about 60, but we have not seen a whole lot of fireworks. Of the summer. L looking ahead to takata. That is supposed to start later on in the u. S. , later on here today. This is daybreak asia. I am yvonne man in hong kong. Betty i am betty liu in new york, and as she mentioned, takata, and remaining remaining suspended today. To sell its business to key Safety Systems. Complete this deal in the First Quarter of next year. Automakers may end up shouldering most of the cost of takatas lethal products, the airbags, faulty airbags. Joining us now almost line for michigan is key Safety Systems cfo joe perkins, in this exclusive interview. Thank you so much for joining us. Joe thank you as well. I appreciate you having us on today. This is an important time for the industry. Anchor absolutely one of the biggest corporate takeovers of a japanese Manufacturing Company that you are right in the center of. First off, we heard some of the details of the acquisition, the movement of the headquarters, the nonclosure i guess you could say of japanese plants. What about some of the executives . Are you going to absorb any of the takata executive . Will you be absorbing kss in this acquisition . Joe some of those details, we will work out as you go through the integration process. Our communication has been very clear, consistent, that our plan is to take substantially all of the employees from takata. Management talent and we view them as having a very strong and dedicated workforce, all of which we very much value. A very robust listening session with the takata team as we work to our integration plan. Although we do not have specific details yet, we plan to take substantially all of the work force including much of the leadership team. Betty the central issue here is , who is going to pay for some of these liabilities, massive liabilities, by takata . Shielded by this. How confident are you that youre going to be shielded by any repercussions from this recall . Joe good crush him. I mean, look, this has been a very dynamic process. Our intent in this deal has been to ensure that we ar architect and industry solution to protect supply of our valued Customer Base. We have similar customers between product safety and takata. In doing the deal, structuring, which has been a complex process, we have insured the transaction structure results in perfection for the new company. It is critical in the context of maintaining supply for our customers that we have a sound structure that protects the new Company Going forward and we are very confident of that. Anchor can you tell me, given takatas troubles, how much has your business actually been helped by what happened at takata . Give me a sense of the financial position of kss. Were their direct benefits to seeing clearly the implosion at the bottom . Joe well, you know, just to that,ore context, around we see this as a merger of two very strong companies, combining the strengths of both. We are interested in their management talent. They have a very dedicated workforce. Declined,usiness has we benefited from some of that. Ss is a very strong, growing organization on its own. As we bring these companies together, our goal is to take the best of both. We will be listening to our new takata colleagues, and developing a detailed integration plan. In the end, the result will be a strong Global Player focused on serving our customers with great delivery, great quality, great technology. This is a very nice complementary fit. It will position the combined company for very strong glue growth strong growth. Yvonne do you think you have overpaid for this business . Chinese companies tend to have a bit of a premium when it comes to buying technology outside of the country. Why wiki Safety Systems pay such a high premium for takata, looking at a loss of ¥80 billion. Where do you see the potential . Look, we have been through a very rigorous global process. We have assessed valuation of the country very strategically and assessed other factors like strategic fit. Certainty of closing and numerous other factors. In the end, we have come up with a value we think is very fair, indicative of where we see the overall valuation of the country the company. We do not see ourselves as paying a premium. We are comfortable with where we are at sue a diligent process that had left it almost one year. Anchor just show quickly, will you stop using the takata brand for all your products, and what . Joe good question. Have yethe decision we to conclude on. In the end, the most important thing is to unify the companies logo. A safety some of these marketing topics in branding decisions, those are items we are going to decide in the integration process. We are very focused currently on ensuring that we get to signing a definitive agreement over the next couple of weeks and we will be focusing on those integration plans, branding and marketing, and we will get into that here in the next month or so. Anchor im curious. I know that it is the early stages right now, as you mentioned. An agreement to shield your investors and company from any liability, legal and otherwise from this recall, but what could as you look out at the First Quarter what could cause a wrinkle in this deal . If so, what happens . Joe right. I do not anticipate any wrinkle. Rigorousad a diligent process and are comfortable with respect to the asset we intend to buy. To solve a very significant industry issue. We do not think this lightly. This is more than just a deal to us. This is something we want to solve. We produce a safety product. Takata has been through significant hard times. We need to protect the safety of the public. We protect ourre Customer Base through production of supplies. We went into this knowing what we needed to a conversation on this industry issue. That is what we intend to do. Yvonne we have got about 30 seconds left. What is the planned for producing inflators for the new company . Have you been expanding supply now that takata will no longer be producing this . Joe good question. As i said before, safety is growing significantly. That, we haveh been expending our own inflator capacity. We merge the two companies. We continue our strong thirdparty supplier with a valued supplier was ourselves and takata. We continue to leverage that important relationship as well. Anchor joe perkins, appreciate the time. On the phonestems from michigan. Breaking news out of brazil at the moment. The president has been charged with corruption according to a global report by the prosecutor general. Report,after the police accusing temer of obstruction of justice. He has denied the accusations, but the charges need to be approved by two thirds of the lower house to proceed. Well have much more, coming ahead. Stay with us on daybreak asia. This is bloomberg. Anchor a quick check of the latest business flash headlines. The final announcement of the sale of toshibas chip unit may be delayed. Toshiba had hoped to finalize the deal by wednesday, but sources say the buyers are conducting Due Diligence and are in no hurry to close. The arrangement could yet change depending on western digital, which is contesting the sale. The rally enjoyed by this company is underlying the disconnect. Shares jumped by a 10 daily limit at the close, bringing the rally to 26 . Developers shares of have risen by 5 and are now at a tony yvonne taking a live look out of Victoria Harbour this morning. It pretty clear day out there. Fingers crossed we dont get any rain. No doubt we could see distance over the next couple of days or so. Betty. Betty indeed. No rain here. It is 7 30 p. M. Monday evening in new york. Onkets are closing, flattish the s p. Further declines in the nasdaq shares. I am betty liu in new york. Yvonne i am yvonne man in hong kong. You are watching daybreak asia p first word news with lisa parenti. Lisa President Trump says the Supreme Courts partial review of his travel ban is a clear victory for National Security. They said it had gone too far by blocking the 90 day band. People will be banned unless a genuinehow relationship with a person or entity in the United States. The court will consider whether the executive order is constitutional. Results president michel temer has been charged with brazils president michel temer has been charged. In the car caught up wash. He denies wrongdoing and said on monday than of the could destroy his that nothing could destroy his government. Italy says it will not have to save anymore banks after the lastminute rescue of two lenders over the weekend. Pierre carlo reject did that this is the intervention that regulators were trying to prevent. ,e insisted it is not a bailout but within you rules and will be the last within e. U. Rules and will be the last one. We are only considering as i have said cases in which this with newin theory cases. We do not expect new cases to come out. Alisa hong kongs exports missed estimates in may, rising 4 on the year against economist expectations of an almost a percent jump. 7 in april. Imports jumped 6. 6 on the year, with a trade deficit. That is bigger than anticipated. News, 24 hours a day, powered by more t