u.s. equities sold off as a result but the asia-pacific session has been fluctuating, we are up by .41%. we are waiting for the big news we talked about around tariffs for the trump administration on china around intellectual property. we will watch out for that. u.s. futures dating ground. the dollar index another victim of what we heard from the fed and the dovishness in the statements and commentary. the dollar selling off as a result. the fact they steepened the rate expectations to 2019 did not seem to be any comfort. they stuck for three hikes this year did not go to four hikes was what let the dollar a little bit lower. also the trade conversation, revised expectations around nafta supporting the canadian dollar and a mexican and those currencies when higher to the detriment of the u.s. dollar. we are flat on the bloomberg dollar index. our ground above $65 a barrel on wti. inventories in america dropped for the first time in a month and that push the oil price higher. let's dwell o

the global markets react to the u.s. crackdown on china the barriers to chinese exports are supposed to protect american security and jobs but investors are seeing the start of a trade war. and this trendy watch company in detroit is key for the city's economic revival but it can't do without parts from you guessed it china. and some for business on the w m how you got to guess welcome to the program china said it is preparing tariffs on american imports in response to u.s. penalties on steel and aluminum the take effect today chinese officials vowed to defend against an even larger number of tariffs signed by president donald trump global markets are already worried china could hit everything from american pork and apples to steel pipes its commerce ministry said it encouraged trump to negotiate but gave no deadline trump has demanded reciprocity in trade and is threatening tariffs on up to sixty three arab misjudge the situation and underestimate our ability to defend our legitimate interests they've also underestimate

u.s. cpi data coming later. me showed dollar-yen, let show you another chart related to that. there have been a lot of whether yener strength could push the yen toward 100. let's see that chart on dollar. there is a number of things that could support the case toward 100. the boj unwinding stimulus even though it is going extremely slowly. you have the current account surplus, the fact that net short positions have been pulling back short, whiche net means of further unwinding could push for further yen strength. the dollar-yen is approaching 105. there are not any options expiring between 105 and 100 before the end of this month. options defense strategies are not going to provide a lot of support if we break through one of five in terms of the technicals. we could he heading toward 100 on dollar-yen. there is the politics. we found in the past when there has been political uncertainty the yen has tended to strengthen. looking at e.m. fx, pretty much flat. to the lowest since the beginnin

u.s. president donald trump says he may hold off on knowing a trade deal with south korea to win agreements reached with north korea and do clear eyes ation made the comment just a day after reaching the camara still it's the south korean limiting still exports to the u.s. . russia's drawing of diplomats from twenty three countries is the right tools of the poisoning of a former spy in britain the move is in retaliation for the wave of expulsions of russian officials after what the u.k. and its allies say was a nerve agent attack on surrogates scottish power and his daughter. judges in senegal have sentenced a major off position figure to five years in jail for embezzlement cully sols also the mayor of dakar he was arrested again our goal accused of misappropriating farms worth two point eight billion dollars critics say the case was to eliminate president macky cells strongest rival before elections in twenty nineteen. facebook's facing more scrutiny after a memo surface claiming the comp

the u.s. army fought against german and italian forces in africa during world war ii. next, robert citino talks about the events leading up to and during the six-day battle. thes a senior historian at world war ii museum in new orleans, which hosted the symposium. this is about one hour. robert: good morning. how are you all doing this morning? great. my name is stephen watson. >> i have the privilege of being the president and ceo here at the national world war ii museum and i am delighted to welcome you to our symposium commemorating the 75th anniversary of the battle of kasserine pass. for those of you who come to our programs at the museum, you know we have a tradition and that we like to start by recognizing any of our world war ii veterans or workers in the audience. i would ask any world war ii veterans or homefront workers to stand to be recognized. i know we have one here in the front. [applause] steve: i would also like to ask all veterans who have served in conflicts or peacetime, p

curve in the u.s. does not have much room to flatten. looking ahead to the u.s. equity market open, we saw the last yesterday. teachers are edging lower. individualt american investor sentiment index. it is a survey done on a weekly basis. 45% of respondents had a mutual reading on equity market. in the past, when that has happened, we had again the last time that happened. before that, there was a correction. it says basically we are not sure where we go from here on the s&p 500. it is moving around at the moment. finally, looking ahead to mario draghi's speech, we talk about the euro level, it moved higher on comments yesterday as well. what you are supposed to watch is actually the one-month realize of volatility. the ecb is more concerned about volatility than the actual levels. these levels have been coming down for five straight weeks. with anjra cehic update. one week after the european central bank ramped up bond buying as the economy deteriorates, mario draghi takes center stage today. speaking at the ecb conference he reaffirmed the central bank must be

rate war today u.s. president donald trump slapped china with fifty billion u.s. dollars in tariffs and he said there will be more as for europe trump says he's willing to talk no tariffs to ny but no promises for tomorrow i bring it off in berlin this is the day. we have right now an eight hundred billion dollar trade deficit with the world we have europe they have barriers that they can trade with us but we can't trade with them we have australia we have argentina the word is reciprocal if they charge us we charge them the same thing we have brazil we've had this abuse by many other countries. obviously korea but we have one particular problem and that's china i can't believe we've been able to take advantage of the united states for so long so those days are over. also coming up tonight facebook c.e.o. mark zuckerberg finally talking germany's government wants him in berlin testify. for a long time demanding an explanation of why this could have happened with the chairman users in accounts very fact it and what facebook intends to do to stop anything like this

or the u.s. but china and max briefly before we have to say goodbye let me ask you about the credibility of donald trump in the eyes of the you leaders we've we've seen a u.s. president say time and time again i'm going to slap these tariffs on your. and today we get an about face what does that do to his credibility in the eyes of policymakers here in europe. i think it's more of the same of what we've seen in the past sees he done that in the past for example with nato he said time and again that there would be severe consequences if certain countries didn't pay their share of defense spending two percent is the threshold that is normally supposed to be paid by that they don't members it hasn't happened yet if there is a huge discrepancy between what he says and his threats and what actually happens afterwards in the documents and the policy that his administration delivers. probably because he's not involved in the nitty gritty details but like i said that the trust level here in the e.u. beca

the u.s. army after serving more than three years' active duty, including a one-year deployment to afghanistan. he had a number of military dedecorations, including a an et rifle marksmanship badge. president trump has reiterated his calls for the u.s. to impose the death penalty on drug dealers, praising countries like the philippines, china, and singapore that apply capital punishment to drug traffickers. trump made the remarks during a campaign-style rally in moon township, pennsylvania, on saturday. pres. trump: when i was in china , and other places, by the way, i said, mr. president, do you have a drug problem? no, no, no, we do not. huh, the country, not much of a drug problem. i said, what do you attribute that to? well, the death penalty. amy: during the rally, trump also lashed out at potential rivals in the 2020 presidential election, including oprah winfrey and senators bernie sanders and elizabeth warren. trump also blasted nbc news political director chuck todd as a "sleepy eyed

president are likely to cause damage not only outside the u.s., but to the u.s. economy its, including manufacturing and construction sectors which are major users. >> translator: we hope to find the opportunity to tell the united states steel and aluminum imports from japan, an allied nation, pose no threat to national security. >> from germany, leadership saying it endangers thousands of jobs in europe. they will respond. >> translator: the european commission is already prepared with counter measures for specific products. it appears the u.s. does not understand any other language. >> so, how would these tariffs work? what would it mean for workers in the u.s. and around the world? >> tom foreman breaks it down for us. >> reporter: look at the numbers here. the united states imports a third of the raw steel it uses and 90% of the aluminum it uses. the tariffs would push the cost up 25% and 10% respectively. that's money that would have to be paid by the foreign companies to get their product on u.s. soil. if it became more expensive for them, it could help u.s

so it's not going to benefit the u.s. and it's going to knock off twenty thousand direct jobs in the u.s. and perhaps as much as one hundred fifty thousand jobs in the e.u. as well trumps this issue and has also triggered outrage in asia south korea is considering filing a complaint with the well trade organization while china is threatening countermeasures if the terrorists go ahead. now just a week after being born baby rhino nobody has been entertaining businesses to a dutch zoo frolicking with her in their enclosure she's a square lip to ride on it might be her oversized ears and feet attracting attention at the moment officials of the zoom in on them said she is one of three cops in the house now their wild cousins found in south africa are considered threatened because of poaching for their homes. went to paralympics have begun after placing sequestering seven million people in china south korea fireworks lit up the night sky outside giving thanks david in a six hundred athletes i gather to compete in the biggest wi

the u.s. dollar and how much difference that makes for someone invested in equities? the dollar has been weaker. you have the 10 year treasury yield around 2.8 and change. it looks like it has plateaued. how will that relationship play out? will it depends on whether the fed comes through with a more rate hikes? or is something else driving it? david k.: we have been a dollar bear for a while now. we thought we would see it. when we look at what is going on with tariffs, with the is happening with quantitative tightening versus easing around the world, we see the rates go up. the other central banks are lagging the fed. we think the other central banks are in catch up, starting to raise rates. we see further weakness for the dollar ahead. investors,rs, u.s. and international investments do not hedge. we end up with two contributions to our total return as u.s. investors. we have the underlying securities in our favor, helping our overseas investments do quite well. david i.: david, based on th

u.s. president donald trump is to impose new sanctions on russia, in response to allegations moscow meddled in the 2016 presidential election. the sanctions target 19 individuals and 14 organizations. usa signed a joint expiration with france and germany in support of britain's stand up with russia over the attempted murder of a russian former spy and his daughter in britain. >> british prime minister theresa may is one of the few vendors to salt -- one of the few visitors to salisbury these days. visitors are staying away in the wake of the poisoning of a russian double agent and his daughter. may visited the restaurant where the chemical attack took place and put the blame squarely on moscow. >> it is right that the u.k. government reacts in a robust way to what has happened here in salisbury. that is exactly what we have done. we will be expelling 23 russian to our undeclared intelligence officers. that will have an impact on their intelligence network. there will be other measures we a

juliette: u.s. president donald trump is set to announce state tariffs on steel and aluminum imports today. according to people familiar with the matter, he wants to announce tariffs of wi-fi 5% on steel, and 10% on aluminum from all countries. it would be one of trumps toughest actions yet. it risks antagonizing friends and foes alike. more than 38th two donald trump have been stripped of access to top-secret intelligence, according to two people familiar with the move. the aides have been notified they will be downgraded security clearances. white house communications director hope hicks is stepping down. this came a day after she testified in front of a house intelligence panel, in which she said she tells white lies. deutsche bank has been asked to provide information about the relationship with jared kushner. according to people familiar with the matter, the state department spent -- sent letters to the german lender last week. kushner's business ties have come under scrutiny. the u.k. prime mi

the u.s. plans to impose 25% tariffs on steel imports and 10% tariffs on aluminum. the president expects to sign a formal order next week. one he says will curb imports of these two metals and provide a boost to american companies. >> they've been unfairly treated by bad trade deals with other countries. they have not been properly represented. because of that, workers in our country have not been properly represented. mark: a u.s. move on tariffs may provoke retaliation from china. the senate judiciary committee will hold a hearing on school safety on march 14. the hearing comes in the wake of last month's shooting that killed 17 people at a high school in parkland, florida. chuck grassley said today "schools should be refuges of learning, freedom and peace, not a setting for violent crime." slovakia's national police chief says seven people have been detained during raids in connection with the killing of an investigative journalist and his girlfriend. they were found dead sunday in their ho

u.s. and european futures pointing lower. as you are talking about the yen, let's move on to the chart. i want to show you a tapping their. one place we are seeing some movement higher is the yen among all major market currencies as investors look for something spacey. and experts say the dollar could accelerate. he says the market factors are in trade tension. for action by japanese authorities. this could affect earnings. moving onprices area from trade war's to central banks, russia has another rate decision to make. cuts are on the table again. most are expecting a cut for the 10th straight time. banks including credit suisse i will saying they're looking for more than 25 basis points. they're looking for 50. governor isbank looking for faster policy normalization. vladimir putin is urging the central bank to gradually cap -- cut interest rates and make loans more affordable. european leaders discussed russia relations in brussels yesterday. it was only after discussions wrapped up that president trump approved the europe

u.s. is treading on dangerous territory, reflecting the ambassador saying we are not afraid of it either. let's look at future setting up going into the start of trading in the next u.s. session. we had quite the decline when it comes to u.s. stocks. interesting how well telegraphed these actions were. u.s. stocks getting pulled back to the worst of that january-february selloff. we are seeing pain across asia. msci asia-pacific off by 1.6%. looking ahead to the chinese markets, front and center. given theseg .ariffs may actually what are we seeing? market staring down the black friday. the spat could hurt the global economic recovery. we could see a drop of over 900 points with all sectors being dragged into the meyer. -- mire. singapore down 2% ahead of inflation data. japanese stocks may have fallen to an october low. 10 five since november 2016. that put a dampener on earnings guidance from japan. , some korean suppliers are expected to be impacted by these tariffs. let's pull up the b

the u.s. and china? guest: we are seeing surprisingly strong numbers this morning. defying x extensions to accelerate in the first couple of months of the year. many the surface belt, we see signs of weakness -- benny the surface though, we saw tens of weakness, in particular, land --ls crumbling and domestic land sales are crumbling and domestic demand is weaker. domestic demand, if it is not there, china needs to rely even more on buyers and the united dat state. >> jenna announcing plans to merge its banking and insurance regulators in its overhaul of major government agencies. take us through the spotlight proposals here? >> this is a major overhaul since 2003, the banking regulation has not been this kind of change in about 15 years. it overseas for thousand banks, say gives you the scale of this. what it allows the government to do is have greater oversight over 2 industries which have been responsible for a lot of growth of shadow banking. we're also hearing about from was ulster retool

treasurying the u.s. issued financial sanctions against all the people that mueller had indicted for interfering in the u.s. elections. the symbolic because a lot of people had already been sanctioned. it is at least a step that is in the right direction as far as members of congress are concerned. how are the sanctions being received in congress? mike: he saw public statements for members of congress want me them but with the caveat that they were overdue. the republican speaker of the house is a close ally of the president. and many prominent members of congress were encouraging them to go further. much, mike, thank you so our bloomberg white house deputy team leader with the latest in washington and that mueller probe. the citi open of mining retailing conglomerate will spin off its australian supermarket chain, kohl's. why is west farmers doing this? west farmers about a statement saying is going to reposition its portfolio targets businesses with strong growth prospects. where does that leave coles?

u.s. me what it means for u.s. china. it is much bigger than that. once you start putting tariffs in place that other countries do not think our fair, the risk of retaliation is very real. the world does not need a trade war. ♪ anna: good morning. welcome. it is wednesday morning. the markets are still concerned about facebook and technology, at least in the u.s. session. in the asian session, we are seeing some upside. we are up by 2/10 of a percent on the asia-pacific debt markets. energy companies, one of the sectors that is helping these markets to rally up yet. we are without japan. there is a public holiday there. s&p futures, pretty flat. we are waiting for the fed. jay powell is going to give his first said today statement. keep an eye on facebook. that story continues to gain momentum. to social network manages get the attention of u.s. regulators. we have seen some energy companies listing markets over in asia. nymex is up overnight. opec accelerating the timeline for curving t

u.s. products including pork and steel some people call it a mere a tariff or a mere attacks just use the word reciprocal if they charge us we charge them the same thing as sue it's got to be that's not the way it is for many many years for many decades it has not been that way and i will say the people we're negotiating with smilingly they really agree with us i really believe they cannot believe they've gotten away with this for so long european union is recalling its embassador to moscow as diplomatic reprisals continue over the poisoning of a former travel agent in the u.k. on march fourth earlier a year leaders' meeting in brussels back britain's assessment that moscow was likely behind the poisoning of surface cripple using a military grade nerve agent at the u.k. forced twenty three russian diplomats to leave london and response to the incident former south korean president lee myung has been arrested jailed and placed in solitary confinement the seventy six year old is facing a num

president from past promised tariffs for a while and now the u.s. is getting them from next week the white house will impose levies of twenty five percent on steel and ten percent on aluminum fears are growing worldwide of a new trade war stock indices across the world fell on friday and governments are already announcing counter measures. the global steel industry is in shock high tariffs on their products could lock them out of the u.s. market and there's not just a monetary cost thousands of jobs are at risk. of course is a problem because the amount that we sell to america is not insignificant. and if he's serious about implementing the tariffs then it'll be a big disadvantage to us but i always say that you can't let yourself be blackmailed you can also fight back. and that's exactly what steel producing nations are toying with counter-measures the e.u. will put tariffs on the likes of motorbikes and even whiskey. the only person. jobs in europe will be lost due to the american measures you cannot simply look at them without doing anything we n

u.s. as fierce but insists that his country wasn't in a weak position the asian countries the third largest steel exported to the us off the canada and brazil pledge to reduce steel exports as part of revisions being made to the existing free trade deal between the u.s. south korea finally some good news regarding world trade let's cross over to our financial correspondent who's standing by at the frankfurt stock exchange germany's economics minister is looking at a similar way to avoid u.s. steel tariffs what equity markets saying about this recovering slightly. yeah well let me tell you carol this is actually a very interesting and dia and it also means that car companies from the u.s. will be able to export the double amount to south korea without paying terrorists for donald trump remember that cars are always a very important he stated in the past that he doesn't really understand why you see so many asian and european cars on the american roads but not too many american cars whenever

where the u.s. has big trade surpluses with china, and agriculture is one of them, which is why soybeans and sorghum has come up. advanced manufacturing goods, airplanes is another one. you look at the stop -- the stock price of boeing and airbus and it is in a potential stress in the market. and services. these are areas that could potentially be a risk if you were to see a trade war. as you saw this morning being reported in the wall street journal, conversation between steve mnuchin and china, they are trying to find compromises to avoid this entire mess is quite promising. the markets are reacting positively today. we have to wait and see. vonnie: michael, we will be talking again. that is bloomberg economist michael mcdonough. on theet a quick check markets, facebook continuing to add to losses as the stt does as the ftc confirms they are probing the company for practices. facebook is the worst performer in the s&p 500, albeit s&p 500 which is really coming back from the previous concessions, u

the reality is the u.s. economy used to be 40% of the global economy and now it is closer to 20% of the global economy. whereand that in a world the u.s. is separating itself from the rest of the world, i would rather be that a percent than 20% and gain the initiatives if the policies going anti-trade on the margin in the u.s., i think you see much better policy momentum in france and in china, and japan. speaking of policy risk in the u.s., lisa showed a chart of political volatility to the dollar. to what extent would you attribute politics to some of the movers we are seeing? benjamin: it is tough to say -- the net result is that one of the interesting things is a weaker dollar is increasing growth estimates for u.s. businesses. from a cosmetic perspective, u.s. earnings growth and dollars is exhilarating because the dollar is weakening whereas the euro and sterling and yen earnings growth is decelerating. it is deceleration for a good reason because those countries are stronger and investment outside of

u.s. president donald trump dogs of the unexpected with the very expected trump says he'll impose a fresh sanctions against moscow for meddling in the twenty sixteen presidential election and then to his show of solidarity with the u.k. as london accuses russia of a chemical weapons attack last week also coming up thousands of syrians flee because each eastern as government forces close in the battle for the rebel held on clay but one of the deadliest in the country's a seven year civil war and a protest in rio de janeiro after the gunning down of a popular councilor she had frequently criticized police killings of poor people in the cities and shanty towns. to find out more. and it's when are freezing with the nights that seem to go on forever but according to the you when the happiest place on earth which country could. stay with us to find. it's good to have you with us tonight u.s. president donald trump is to impose new sanctions on russia in response to allegations that moscow meddle

the u.s. has been trying to negotiate with north korea so that it would end its nuclear weapons programs many deals and promises have been made and just as many have been broken. north korea has said for many years now that it would never give up its nuclear weapons but now all of a sudden it says that it's up it's up for discussion that it could potentially give them up so it is a gamble that the trump administration has taken ok now you have to look at the prospect of a meeting between two world leaders who've tossed vicious insults publicly against each other what would be the timeline moving forward for the possible meeting between the two we're hearing that they could be as early as next. right and that's about all right now it's being said we also have a summit between president mungy and kim jong un coming up by the end of april so there's a real flurry of diplomatic activity happening but as far as the u.s. north korea summit there an exact time and location has not been set ok what ab

the u.s., and that they will continue to make. >> shockwaves through the technology industry yesterday -- donald trump sent shockwaves through the technology industry yesterday after issuing an executive order blocking broadcom from acquiring qualcomm. the presidential ruling saying impair the national security of the state. is this the end? >> there was no appeal process. once the president ways in and blocks the deal, that is generally it. >> the thing is, you find me a company these days that doesn't have any global footprint and doesn't have any chinese connections. this motion of broadcom is a chinese company, it is nonsense. they are not a chinese company. they are a company that has a legal address in singapore for tax reasons, but there are u.s. -- they are essentially u.s. company. most of their business is here. this concept of them being a chinese acquirer, and i know that that is what trump and a lot of people in washington are saying, but it is hogwash. >> president trump announci

amy: the u.s. c.i.a., u.s. government, is well known to have been involved in the 1964 coup in brazil. do you see enough evidence of that, both in the ouster of president dilma rouse you have and also your own case? do you see any evidence of foreign involvement, articularly with the u.s.? >> well, it took almost 40e years to prove the united states did indeed participate n the 1964 coup. even though i am not a defender of conspiracy theories, i am and people in the united states, some don't accept brazil playing such a proactive role in foreign olicy. there are extraordinary nterest in our petrobas, and there is interest in brazil's influence in latin america and n south america. there are interests that not wanting to necessarily see the bank of the bricks countries go forward. and there is the brazilian press always talks about the close relationship between the office of the attorney general in brazil and the department of justice in the united states, around petroas issues. and we are trying to investigate

the u.s. stock market did not respond well to news donald trump's top economic adviser is leaving it opened rattled over fears of losing gary cohn's moderating influence in the white house cohn was the chief architect of trump's business friendly tax cuts but investors are nervous about the president's protectionist tariffs plan for for an aluminum and steel at a meeting of the world trade organization america's trade partners expressed displeasure the european union has also announced plans to retaliate with tariffs on products like american tobacco and orange juice trying follows through with his threat if it does happen we would have to take measures to protect european jobs and workers thank you very much at a white house press conference on tuesday with sweden's prime minister trump was undeterred and lashed back at the e.u. threat but the european union has been particularly tough on the united states. they make it almost impossible for us to do business with them and yet they send their

you will see in the u.s. the negotiations are bilateral, they are beginning to have positive effects. you see positive news coming out. so we have to be aware of that. alix: i understand from a macro perspective it might not underscore your investments, but a trade war has real fx implications. particularly if we're talking about the mexican currency. how do you factor that into your investment thesis? >> what we do is we look at how much fear there is. i mean, if there is really a fear of a trade war, there might be opportunities. it will not be as bad as it appears. just look at the u.k., brexit in europe and so forth, there's no way they can have a real brexit because they are just too closely tied together. this is true of latin america and other parts of the world. david: putting aside whether there actually is a trade war or not, talk about the rumors of -- affect the volatility in fx. it is driving fx up and down. how do you handle that? do you hedge? >> what we do is we try to make an assessment about

the latest u.s. jobs data smashed expectations with many labeling it a goldilocks report. what implications might have for the feds rate? that is next. this is bloomberg. ♪ ♪ tracy: welcome back to the "best of bloomberg markets: middle east." the latest u.s. jobs report came in significantly stronger than expectations, showing that employers hired the most workers in almost two years, but wages remain stagnant. what does that mean for the fed rate path? i spoke with the ceo at global principal investors. >> many were saying that we are coming to the end of the recovery and we are in the late stages. this suggests that there is still quite a way to go, and i think you will see continued rate rising labor force participation rate, particularly in younger and older ages. they gives the capacity for more growth and it would be very premature to talk about the end of the recovery. tracy: speaking of the end of the recovery, i have to bring up a tweet from minneapolis fed president neel kashkari. he s

u.s., european markets, asian markets never bounced back to the same extent. >>> we have team coverage of the global fallout to the new tariffs. eunice yoon is live in beijing, karen tso in england, but we start can kawith kayla tausche >> president trump's announcement that he would seek global tariffs stunned investors, white house staff, cabinet staff and close republican allies on capitol hill >> surprised whoever advised him on this ought to be reprimanded. it will cause higher prices and make us less competitive in the world marketplace. >> that was the chairman of the senate finance committee the backlash was swift and wide ranging. you had business lobbies coming out against the decision and u.s. allies like canada requesting exemptions. the world trade organization said the tariffs would break its rules. trump's move is a familiar one to the wto in march 2002 george w. bush slapped 30% tariffs on foreign steel that was met by retaliation from europe. a year after the tariffs were

u.s. allies unite in criticizing tariffs and manufacturers come to terms with what america first could mean for them. welcome to bloomberg daybreak on this monday, march 5. alix steel is done in houston. reachingel tariffs are texas. >> that shrew. it is spare week. the who's who in the oil and natural gas convergence here to talk about oil ministers. steel tariffs are front and center. what if all of a sudden there are tariffs or trade war's on national -- natural gas and lng and key oils. these are issues for the community. david: would it be bad for producers who will have to pay up on steel? >> they will have to pay more at the end of the day. i will speak with the x ceo of should near. he was pivotal in sin the ship -- shift on lng. he has the polls on the global economy. let's take a quick check on the markets. it is the morning of when it comes to what is happening in italy. s&p futures a little softer down, off by seven points. the dollar weaker, but it feels pretty calm as markets

u.s., and that is giving a little bit of investor worry, to assess the impact it means for of course, the earnings. or by far 600, the sect losing the most in europe. this is also the sector that drove the rally in 2016. we had a little bit of pressure on the 10 year yield in the u.s., below 2.8%. coming up, we talk global trade with paul donovan from ubs. and later, we speak with the former chief executive. partner,he industrial he joins us to talk italy and the future of luxury and then, we talk with robert shiller. 11:00 11:00 a.m. london time. let's get straight to the bloomberg first word news. nejra: the announcement comes hours after beijing confirmed un made a surprise visit to china. he says he would be willing to give up his nuclear weapons and hold a summit with the u.s. it was his first known visit visit out of the country since taking power in 2011. according to people familiar with the matter, of which is a working to identify areas in which chinese companies would be banned

shah: u.s. has issued sanctions on key russian oligarchs in relation to meddling with the 2016 election so i would enclose any doors or preclude any action come up with the president doesn't telegraph his moves. >> there is this massive march in washington led by students florida and the president did not tweet about it and hasn't said anything about this. what is the white house response to this and are the actions that the president signed into law last week strengthening some of the background checks? is that the end of it? is the president going to do more on the gun safety issue? question onut the republican lawmakers, are you afraid of the nra? mr. shah: the president respects first amendment rights and there were actions that he sent it to law on friday, the on you this bill that included over $2 billion in funding for school safety. stop school violence billas also the fix nics on the background checks come and the department of justice announced a new rule that banne d bump stock device

the u.s. embassy will be moved to jerusalem in may, and it's something that since its founding in 1948, israel has wanted all countries to do, to give official recognition, locate their embassies in jerusalem, rather than tel aviv, but, of course, the original 1947 partition plan of palestine into arab and israeli states require that jerusalem be internationalized. both palestinians and israelis want jerusalem to be their capital. so, why is he u.s. doing this? in the 1970's, the zionist organization of america began sending 100,000 signature petitions to the president asking him to withdraw from the u.n. agreement, and also, recognize jerusalem as the capital and locate the u.s. embassy there. in 1980's, the anti-defamation league, the christian coalition all said that we really ought to move the embassy, mr. president, it will be popular, particularly with american christians, and jews, and apac got serious about passing a highly coercive move the embassy law in the 1990's. they did it to th

qatar and saudi arabia so that's all u.s. allies u.s. allies exactly exactly yelena had been investigating a plane they departed from reactor airport five days earlier which she believes carried weapons to the middle east. you can see tongue fight where there are the words that this plane took several times and you can see places such as r r ion gotta exactly and also it has flights number mark which is very specific for the planes that are actually transporting military goods. this is footage of the plane yelena tracked it has been loaded with crates at least twenty u.s. military flights have left this airport in the past six months. and when we arrive at the airport we to see a plane cool greg. this is one of the busiest airports when it comes to players such as this one. is from the same airline and i have been investigating various really is pretty nuts it's just in the middle of a traffic junction. they are about to take all. their weapons there their problem. there is this huge fights that are happening it's running it all they nee

hundreds of protesters have marched in the u.s. against the shooting of an unarmed black man by police. on friday an autopsy found stuff on carcass hit eight times that police say they thought the twenty two year old was pointing a gun but it turned out to be a mobile phone and there had been protests in sacramento nearly every day since he was killed last week police want the two officers involved to be fired people but this and louisiana a white police officer has been fired for killing another black man in two thousand and sixteen alton sterling was held down by two officers and shot dead while he was being arrested at other placements been suspended for three days and i cannot reports from washington d.c. . baton rouge police have finally released the body camera footage of the killing out on sterling was selling c.d.'s outside a convenience store when the two officers arrived on the scene a struggle broke out and six shots were fired earlier this week the louisiana attorney general announced no criminal charges will be brought

u.s. a cycle is picking up and we are seeing growth accelerating. we have this late cycle fiscal stimulus on top of that. while inflation is not a big story, we think it will gradually pick up and this will allow the fed to move a four times. -- would have talked to the news, but it did not. how pivotal is it that the doves are starting to sound more hawkish? >> a think it's consistent with where the fed has been. viewed as a dove, i get that, i think we have seen less yellen, she became dovish by the end of her term, multiple tidings by the dovish core setting baton tone for the leadership going forward, which will be gradualism. i think this employment report is up their alley. inflation is building but slowly, average hourly earnings is still ahead of the inflation rate and gradual monetary policy normalization, they can stick to that scripted -- that script. jonathan: and the economy is picking up. what is the fed ultimately going to deliver? guy: the euro-dollar markets are basically

one thing we've heard from the u.s. treasury secretary, that the u.s. is planning to come with new sanctions against russia in the coming weeks. there will be pressure from congress to continue tightening sanctions. that's coming. there's morethat conflict over the nuclear treaty. that could lead to new tensions. of course, this crisis with the u.k., again, that could reinforce the hardline position in the u.s. no, there's no prospect of relations between russia and the u.s. or the u.k. improving for some time. trump seems to have a strange relationship with russia. kime been speaking with wallace about the president's approach to russia. >> the president seems disengaged entirely. that is, what russia did well before 2016, why they did it and what damage was done. these other episodic headlines around russia are easy and much less consequential and therefore, the president finds it in his interest to side with the world. morninghe came out this and said if the u.k. presents its findings and it seems reasonable to us, we will condemn russia. why is he a

u.s. credit or em credit? guy: u.s. credit. r.j.: i would be on u.s. credit as well. diana: emerging-market credit. jonathan: there we go. to wrap things up, a little bit of disagreement. thank you to our guests. that does it for us from new york city. we will see you next friday at a special time, 11:30 a.m. in new york, 3:30 in london. this was "real yield," this is bloomberg tv. ♪ scarlet: i'm scarlet fu. this is "bloomberg etf iq," where we focus on the rewards and risks of exchange traded funds. ♪ scarlet: the prospect of higher u.s. interest rates is prompting a rush of money into funds focused on banks and other lenders. we take stock of the flow into financials. join the crowd. american century, the latest big asset manager to enter the ecf space. edward rosenberg, a veteran of -- etf space. edward rosenberg, a veteran of vanguard, explains the strateg

the u.s. dollar. take a look at what's going on elsewhere on the gmm. commodities, rubber had a huge drop, copper had a huge drop, coffee down, steel down. the commodities column is red as most of the soft commodities are following. you can see the 30 year yield and south african debt down 18 basis points because of the price rises. let's take a look at the futures. you can see that euro stock futures are still pointing down, but we see a mixed train for the ftse and dax. cac up. this could be a positive start to the day for the equity trade around europe, and we do see, for example, bonds being sold off and yields rising. if you take a look at treasuries, you can see the yields that continue to rise this morning. right now trading at 2.83. we have turned around as investors feel comfortable enough to sell off debt. let's get now to the first word news with juliette saly in singapore. juliette: matt, u.s. president donald trump is set to take his most aggressive actions yet against russia toda

the u.s. and japan had agreed to work together to try to tackle what is largely a chinese problem and now donald trump has blown apart that informal alliance by targeting. the e.u. at other countries so one thing that could happen is if you see an import surge of steel that used to go to the u.s. coming into the e.u. you could see a merge and see safeguards you could see retaliation against the u.s. protectionism and this could target politically sensitive things such as you know kentucky bourbon or wisconsin cheese which comes from the house speaker paul ryan's state to try and put the maximize the political pressure on president trump i think it's it's a very worrying development because i agree with the previous speakers that you know it might be about distracting attention and yes trump is erratic but the problem is is that when you act on the in the international sphere that those short term political maneuvers have lost and consequences and why do you think mr watkins that donald trump d

u.s., suggesting it is pretty solid. rises unlikely to happen and implications in the market. >> a very good day across equities. we are getting some dollar weakness as well. the dollar yen right now. on friday, -- lots more to talk about in the six hour of labor markets asia. let's go to paul allen with an update. administration says north korea will get no concessions at the end of any potential talks. he says kim jong-un must stand behind his offer before the meetings. no sitting u.s. president has north korean leader. -- is expected to announce the countries smallest deficit in a decade and plans to loosen overspending. eight years of public spending cuts have taken a toll. >> be deals worth more than $16 billion. agreement.e an france and india agreed to .olster cooperation on trade ostrava's government has to not a security deal with the u.s.. trump said on friday he was working on a security agreement. he says the two countries have a trading relationship based on quality. >> it is

the u.s. already unposed ground for nationalist tendencies in europe and italy also in germany it created a whole lot of trade distortions and the outcome historically was very bad i mean the bad economic situation then let for the political problems but the situation is completely different right now is that we have seventy years of an international a global trade regime. it didn't exist in the one nine hundred thirty s. when they were in post that's right just because nations were able to learn that lesson from history they decided to come up with the general agreement on the terrace and trays and that was followed by the w t o in one thousand nine hundred five we have this whole set of rules and now it's very important for every country also for the european union the european commission who is responsible for trade policy to stick to those roots and retaliate donald trump though it's not important to stick to those rules might he have a point could we see a limited unraveling of the w t o

u.s. equities snapping back after the biggest weekly route in two years. later in terms of the markets, and show no fear. we are seeing this reflected in terms of the turnaround. can it last? it is an impressive two day moving average, but a question whether sentiment has been damaged. that is the question really for these markets. that is the move in the markets, can it sustain and in the news that novartis is selling their stake in consumer health care to gsk. it will be paid for in cash. int is an interesting line terms of the cash take on this deal. anna: we will keep watching the m&a story. this is what it looks like now in terms of the u.s. answer to your question about whether sentiment is damaged, it seems to be be returning in the asian session. , and we will be talking more about oil. , we will be hearing more of our interview later in the program. let's get an update on first word news. the u.s. and its allies are expelling more than 100 russian diplomats in response of the nerv