Be brave. This is daybreak asia, live it from bloombergs u. S. And asian headquarters. I am yvonne man i am betty liu. Yvonne and i am yvonne man. It looks like we got a little bit more drama coming out of the u. S. China dialogue. It seems like the gloves came off in terms of the Trump Administration side. Have to wonder what happened behind closed doors. Would havehought we an action plan in the first 100 days. It was quite tense, both sides canceling their pressers. Will we go through with these tariffs . What is the relationship now between xi and trump . It seemed they were getting along swimmingly well at maralago. To have another golf outing to warm up relations again. [laughter] yvonne we thought this would be a very choreographed event, not too exciting, but we got more fireworks than expected. The pessimism in the markets, wall street, record after record we break. Asian markets, equity markets solidly in the green. Not the case in new zealand, lets take a look at the nzx 50, trading 7 10 of 1 down on the index, happening after five days of gains. The kiwi,. 7352. Back on an uptrend after inflation turned a soft. Aussie job numbers coming up this morning. It will take just an inch higher. The aussie remains the big story, 6. 5 higher since june. It almost feels like the rba hiked its cash rate, but it did not. U. S. Ng closer to 80 cents. Japan had its boj day. We do see yen higher leading up to this decision this morning. 111. 88 for the dollaryen. Euro traders ahead of the ecb, as well. The yenains a given strength for the nikkei 225. Kuroda coming up hours before the ecb. Talking about Central Banks, records on wall street. We seem to be more routine now. Betty they absolutely are. It seems like Central Banks are a little bit of an afterthought when it comes to the u. S. Markets. At this moment, investors are primarily focused on earnings. Lets pull up the boards here. You can see the markets closed higher. Every single sector in the s p gained, Energy Leading the way, s p up 0. 5 . The nasdaq higher by 0. 6 . Lets get to first word news with courtney collins. First up, the Congressional Budget Office has upgraded its estimate of the impact of the strict repeal of obamacare. A number of uninsured people would arise to 32 million by 2026. President trump told Senate Republicans that health comes before a holiday. He said they should stay in washington and delay their summer recess until a replacement for obamacare is passed. President trump we have to repeal and replace obamacare. It, but the best israel peel and replace, is a repeal and replace. The u. K. Will be expected to pay to leave the european union. They said london must hand over 100 billion, the equivalent of 115 billion, to walk away. So farhe highest sum mentioned, after the u. K. Admitted it would have to meet its obligations to the european union. Bank of america told investment leaders to halt investment with a china grew. Sources say the bank is joining citi and morgan stanley, steering clear of hna because they cannot get enough transparency. We are told the bank of america decision could still change. Chinas largest property deal has taken a twist. The group stepped into by hotel assets dalian had planned to sell. They will hand over 6. 5 billion for wandas themepark projects. There is scrutiny around their business around the world. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am courtney collins. This is bloomberg. U. S. China first economic dialogue is off to a start. Wilbur ross criticized china over the trade imbalance, where both governments canceled scheduled conferences. More from the Sarah Mcgregor in washington. It seems these meetings started off a very tense. Do we know what the biggest Sticking Point was that ultimately led to a cancellation of press conferences from both sides . Sarah yes. I think why this meeting was remarkable, these talks happen on an annual basis. Rehash ofrebranded, a economic dialogue. Normally these produce a long list of objectives, cooperation to work together. But they movet, the ball forward on the relationship. This year, we do not have one. The news is, no news. Secretary commerce wilbur ross spoken fierce terms about the fact china needs to take concrete steps to reduce its almost 350 billion trade deficit with china. Betty are we reading too much into this cancellation of these two press conferences . Or, is it a new turn in further deterioration between the two . Sarah what we do know is that markets are reacting a few stocks rose today, such as u. S. Steel companies. Is a firing of relations and the Trump Administration follows through potentially with fuel imports that come from china, that could be good for the u. S. Steel industry. There is something to be said for the fact that press conferences were canceled. The relationship got off to a big to do when President Trump met president xi jinping at maralago in april. Now we do not even have a statement. Betty we do have a statement from Steve Mnuchin and wilbur ross, but it did not say much at all. What does this mean, because there will be another meeting, i am sure, between trump and xi. I forgot, xi does not like to golf. So there was no golfing at maralago. But still, they hit it off at that beautiful dinner. Do them two have to meet again for improving relations . Sarah there was a statement from the u. S. Trying to acknowledgment trade deficit and working cooperatively, but there was no joint statement. The joint statement was the important one, it shows what they may have achieved. Talk after real these talks that comes right after. We have seen trump speak in harsh tones about the cooperation the u. S. Is getting or not getting on north korea from china. We are a decision on steel imports. While we do not know what is next, the people relationship between the leadership, we do know there are looming irritants in the relationship. Those may speak for themselves. Mcgregor, thank you for joining us in washington, covering this meeting between the two. Someone who has been watching this on the sidelines, the to see you, good live and in person. Want to read part of that statement from mnuchin and ross. The short statement, the theence i want to read, principles of balance and reciprocity on trade will continue to guide the american position so we can give American Workers and businesses an opportunity to compete on a level playing field. Boy, is that water down or what . Absolutely. Betty it says failure all over it. The Trump Administration came into this dialogue with an aggressive agenda and everyone was hopeful we would get results, results, results. It is the art of the deal, so lets make a deal. Meanwhile, 100 days have passed and all we have is that the u. S. Is on the offensive. America is on the attack, once to get rid of the trade deficit. The same time,t greater support in the north korean issue from china. Betty they are not getting it, though. Jesper that is exactly right. We have a standoff now. If the next step were to be, god forbid, a trade war betty [indiscernible] isnt, lets hope it that could completely unsettle not just asian markets but global markets, because disruption to global chain trade would spell disaster. Betty i want to pull up a chart, come into my bloomberg. It is the investor point of view on this. Etfs has beenl day and 200 the 100 day moving average. Steel tariffs are to come is that the right back here . If, god forbid, that were to come, for the Steel Industry in america, there is an obvious windfall that will happen. But the bigger indication players, thero macro hedge funds will begin, if the Trump Administration is prepared to go ahead and impose tariffs which could start a trade war, that would be very, very unsettling. Why would they stop at steel, and not go to the next couple sectors . Yvonne and would it stop it china . President trump has accused trade bout imbalances with germany and japan. How vulnerable is japan . Trump come on japan, has been very kind. You have seen none of the harshness of the statements you have with germany. Nically, that corporation the cooperation between japan and the United States is the best bilateral we have so far. There is very little gold that wantslittle that americo in terms of pressure from japan. But they do want something from china, they want access. Secretary ross was very clear, he wants more made in america exports to the worlds fastestgrowing market, which is the peoples republic of china. Nobody in america is going to make that statement. The american car industry is not interested in selling more cars to japan, because the japanese car market is not a growing market. Yvonne stick with us throughout the hour, to tell us more about the boj. We have bigname guests coming up on Bloomberg Television from unilevers week and after that week to a ceo, Bill Mcdermott at 6 40 p. M. In hong kong. Yvonne dont miss our interview with this is bloomberg. Yvonne this is daybreak asia, i am yvonne man in hong kong. Betty i am betty liu here in new york. The central bank wraps up its twoday meeting. A keeps its foot on the monetary accelerator to feel a faster rise in inflation. Bojleen hays is that the for us. Any change expected at all . Policy the policies that matter . I think what people are waiting to see is even a hint that governor kuroda is opening the door of the bank of japan to any kind of shift on the policy he has had in place since 2013, aggressive monetary stimulus to boost inflation. I am sure he would say we are winning important battles along the way. He turned 20 years of deflation year over year. The target is 2 , a long way is ways away. Maintain yield curve control, target the 10 year yield at zero, and by bonds up to 80 trillion a year to keep that objective met, day in and day out. Will they need to make a concession and trimmed their target . A little bit. To a certain extent, could the boj tout some success five straight quarters of gdp growth is Significant Growth in the right direction. Job to applicant ratio is up and wages are starting to rise. One question i think he will get is about this shift in the amount of bonds they are purchasing. They do not have to buy as many, there are not as many pressures. And will he formalize that in their policy . The voices speaking out against the boj and etf purchases are growing louder. Do you think the governor is listening . Kathleen i am sure he is listening. Will it make a difference, we will see. The head of the Japanese Stock Exchange is a critic now of the bank of japans etf purchases, saying it is bad for the stock market. Take a look, here is a quote from the story. It is not good in the long run. It means constant distortion. Criticism of the plan is not unusual. This makes it more serious, is the tide turning against the boj . Week, another great story from our Bloomberg Team in tokyo about bank of japan officials getting more concerned about this. The japanese anchors association coming out against it. The etf line has doubled since 2010, they are earning a lot more. Will he Pay Attention . We do not know. He said the boj could alter its program, it would be unthinkable to let go of that tool now. Yvonne Kathleen Hays, stick with us. sts ring back wisdom tree jesper kroll. You see they own 70 listed in these etfs. How sustainable is this . Jesper the etf purchases are what they call a pko, a pricekeeping operation. If the market is down by more than 1 in the morning session, like clockwork, the boj comes in to score the price. That stated policy part of the to put it under asset prices so that the Retail Investor gets greater confidence that indeed the japanese stock market is going to be sustainable. From that perspective, there is a policy objective that is clear. It is to boost asset prices and help the overall inflation objective the bank of japan has. Yvonne this shows what you are talking about, the outright purchases coming from the central bank. You see this growing in the past couple months. Ramped up, especially in the september 2016 time. Corroded did mention after the june meeting that boj could in theory cut etf purchases before reaching its inflation target. Is that still unthinkable, in kurodas eyes . I think that is extremely unlikely. That is effectively admitting the past policy was a mistake. The bank of japan will continue to stay passive aggressive and do absolutely nothing. The key point being, like we have with the bond market purchases, maybe you do not need ¥80 trillion of the bond purchases anymore in order to keep the zero rate target. If the japanese stock market does continue to be did out by domestic buying, by Japanese Insurance Companies and retail money supporting the market, you will not get these bids that require these ¥6 trillion of etf purchases. Ofs is heading that warchest ¥6 trillion, that will stick with us another two years, by the ¥6 trillion, that is subject to market conditions. Betty i want to bring up this chart which puts the boj in relation to what is going on with the other Central Banks. This is our chart on the bloomberg, 5548. You can well imagine, the yellow line is the 5 said rate creeping higher since 2016. We expect that will change possibly with the ecb and the bank of england, as well. Given there seems to be more talk we talked about this yesterday, the lower for longer by the fed, maybe we will not see the yellow line step up. What position does that put the boj in . Jesper the position is simple, japan has its own objectives. To hit atctives are least 2 inflation. They are nowhere near that. It is about the synchronization and decohronization upling. Financialglobal crisis we had this synchronize policy. Central bankers were the responsible people in the room. Politicians could not ask for a variety of reasons. Central bankers acted responsibly. Now, different markets are having different exit strategies. From japans perspective corroded made this clear kuroda made this clear, the day had to force0 we japanese bonds back to zero. The bank of japan is doing something very aggressively that is no longer in sync with the boj. And, nobody at the g20 criticized japan for doing it. So it is a green light. Betty that radical stimulus. Koll, wisdomtree ceo, stay with us. 20 more to come. This is bloomberg. Yvonne a quick check of the latest business flash headlines. Samsungs Voice Assistant has learned english, but only in two countries. U. S. Is offering in the you can search through the Photo Library to create an album. It can be activated by saying bixby. Hi, betty a vision fund leading an investment in a Silicon Valley startup. They are perfecting the growing of crops indoors. It is these days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Yvonne 7 30 a. M. Thursday in hong kong. Minutes away from asias first market open. Beautiful day outside victoria harbour. Betty gorgeous there in hong kong. It was hot and humid, if you like that kind of thing in new york. It is 7 30 p. M. Thursday here in new york. We close higher. Liu, here inu, new york. Yvonne i am yvonne man. You are watching daybreak asia. Talks between the worlds two biggest economies at a rocky start, with the u. S. It is sizing china for its trade imbalances. Rossrce secretary wilbur complained the trade gap about the trade gap in unusually blunt terms. The open criticism is a change from the past where publicly the two sides pledge cooperation. The Supreme Court dealt a further blow to president forcing theml ban, to accept people with grandparents, cousins, and other relatives in the United States. The court plans to hear full arguments on october 10. The president s march 6 executive order has been criticized for unconstitutionally targeting muslims. The investigation into the Trump Administrations links to rusher will hear testimony from donald trump jr. He will be to a Senate Committee next wednesday, along with paul manafort. The pair and the president s soninlaw met a russian lawyer, hoping for damaging information about hillary clinton. A new bloomberg poll has bad news for wall street titans. The survey shows most americans have an unfavorable view of the big banks and their executives, and distrust of the wealthy more than they admire them. Efforts tol streets regain trust since the financial view theewer than 1 3 industry in a positive light, virtually unchanged. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am courtney collins. This is bloomberg. Ty it is wednesday here there is backandforth with global shows confusingly. Stocks surging on earnings of strength, the s p and nasdaq hitting records for a second straight day. Joining us on set is su keenan with a more. Each sector in the s p rose today. The s p hitting a record, nasdaq, as well. Ng stocks back in a big way. Earnings were a dominating fact or. And talk of a merger in the media sector. Lets look at the close. We are not seeing large moves in numbers. Lets go to the standout stocks. That is where you see sizable moves, notably in the scripps that is the company talked about for mergers. There is also a big move in the entire sector for that. Morgan stanley is notable. In all the financial stocks there has been a downward move as a result because whatever good news they reported in market earnings, the focus has been on the weakness in the core unit. Reported wastanley that they blow up the trading revenue and