| Trump says he'll raise China tariffs if Xi won't meet at the G-20 summit. The U.S. expresses "grave concern" over Hong Kong's extradition proposal. And Citigroup says the S&P 500 is heading for a "full scale bear market." Here are some of the things people in markets are talking about today. Trump Warns Xi Donald Trump warned that tariffs on China will go up if Xi Jinping won't meet at the G-20 summit in Japan. "I think he will go, and I think we're scheduled to have a meeting," the president told CNBC, adding Beijing is "going to have to make a deal." Trump renewed his attack on the Fed, complaining it not having the power over the Fed that he says Xi wields over China's central bank. "The head of the Fed in China is President Xi," he said. "He can do whatever he wants." 'Grave Concern' Over Extradition The U.S. State Department expressed " grave concern" over a proposed law in Hong Kong that would allow extraditions to mainland China, warning that the move could further undermine the city's freedoms and damage its business environment. If the proposal is passed, it could for the first time mean that by law Hong Kong residents might face justice in Chinese courts. A protest held on Sunday was one of the biggest seen in the city since 1997. Here's why Hong Kong craves autonomy. Global Stock Rally Asian equity futures are narrowly mixed after U.S. stocks extended a global rally following Trump's suspension of tariffs on Mexico. The Nasdaq jumped 1% and the S&P 500 advanced for a fifth straight session. The Mexican peso strengthened more than 2%. The dollar otherwise advanced, rising against all G-10 partners. Treasuries fell, with 10-year yields up almost seven basis points, and gold dropped. Oil fell for the first time in three days amid rising supplies and macro economic concerns. Saudi, Russia and Oil Speaking of oil, Saudi Arabia and Russia voiced concerns that falling crude demand could send prices below $40 a barrel as they met in Moscow. Saudi Energy Minister Khalid Al-Falih said OPEC is almost unanimous on extending supply cuts and positions may be calibrated at G-20 meetings. Russian counterpart Alexander Novak warned of a high risk of oversupply even as the country holds out on the OPEC+ deal. WTI futures fell below $53 a barrel. Bear Market Ahead Citi warned trade tensions are set to roil stocks, bonds and commodities even more. The bank's base case predicts Trump applying 25% tariffs on additional Chinese goods. If the Fed doesn't cut, expect a "full scale bear market" that sends the S&P 500 down 20% from its April peak, 10-year Treasury yields tumbling to 1.5% or lower and a surge in gold to $1,600 an ounce. What we've been reading This is what's caught our eye over the last 24 hours. And finally, here's what Cormac's interested in this morning Despite last week's slump in U.S. 10-year Treasury yields to the lowest since 2017, hedge funds are refusing to back down from their bearish wagers on the global bond benchmark. Speculative net short positions increased for the week ended June 4, hitting their highest since November, according to the latest Commodity Futures Trading Commission data. Confidence the Federal Reserve will lower rates at least once this year is keeping pressure on yields and traders now see a quarter-point cut by the end of July as a given.  The fast money brigade are likely betting the market has gotten ahead of itself on the pace of probable rate cuts. Fed funds futures now indicate almost 70 basis points of easing by the end of 2019. Any indication the U.S. economy isn't doing as badly as feared could lead to a rapid reduction in those expectations and a sell-off in Treasuries — just what the hedgies are looking for. Like the actions of the Fed itself, their growing bearish bond wager has become very data-dependent. Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. Even before Trump's trade war, China was the world's biggest story. It's reshaping the global economy — but its ascent hasn't come without major problems. Sign up to get Next China, a weekly dispatch on where the country stands now and is headed next. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more. | 
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