anna: putin in play. the russian president tells bloomberg in an exclusive interview that he is open to finding a solution to an island dispute with japan. although the problem of a piece of treaty with japan is a key one. treaty with japan is a key one. anna: a compelling case, a

gradual rate hike as investors wait for u.s. nonfarm payroll numbers. we are live from the annual meeting in italy with a number of top interviews. a very warm welcome to countdown. manus: russian president vladimir putin sat down with bloomberg editor in chief john the gulf weight -- michelwaithe. they discuss the relationship between japan and russia. we begin by asking whether putin would consider a political deal in exchange for greater economic cooperation. >> we don't trade in

territories. a peace the problem of treaty with japan is a key one. like toould very much find a solution to this problem with our japanese friends. we had a treaty signed in 1956 and surprisingly it was ratified by the supreme soviet and by the japanese parliament. and then, the japanese side refused to adhere to it and then the soviet union nullified all of the agreements within the treaty. our jeff --s ago, japanese colleagues asked us to return. we met them partway. so in the past couple of years, not by our initiative but by the

japanese side, these contacts were --. but now, and partners are showing a relationship to return to a discussion of this subject. not about some exchange or a sale, we are talking about finding a solution where it neither party would feel defeated. >> argue as close to a deal now to a deal as close now as you were in the 1960's? >> i don't think it is closer than it was in 1956. but we do presume to dialogue on this subject. the prime minister level will continue their work. i am sure that mr. abe will

discuss this subject. to resolve this, it should be thought through, prepared, and not on the principle of damage limitation but on the principle of setting the stage for the development of relationships in the long term. june in all day to watch our exclusive interview with the russian president and do not miss our special report on monday at 5:00 p.m. u.k. time. a lot to come today from that discussion with our bloomberg editor and the president of russia. let us talk about the markets. manus: is this the calm before the 180 degree turn? the jobs report is today. this is the msci asia-pacific and gold.

msci asia-pacific has had three weeks of stability, price swings have been the most muted in three decades. you have stanley fischer on what -- on one side saying how important the numbers are. but there is a slight moment of calm. it does not happen often. --a: on the global markets putting up the risk radar. you can see where we are on various asset classes. asia equity session, fairly you did. we weree last week, waiting for his yellen and now the jobs report. september -- chances of a rate hike are at 34%. they were of up 40% a week ago. things shifting a little bit.

generally, we are waiting for the jobs report. while is in at 43.44. a lot of discussions all week about what we can expect and what we shouldn't expect at algeria. biggest four-day drop since february. stay tuned to one station only to get the conversation from a man that knows a lot about it all. anna: here is christine harvey. christine: cleveland fed president loretta mester's says there is a compelling case for gradually raising interest rates. with the u.s. economy approaching the central rights target. she declined to say exactly when she believes hikes would be necessary. the next policy meeting on september 20 and 21st. while japan's ruling liberal democratic party will form a group by the end of the month to examine how best to collect and

compile economic statistics, that are used in key measures including gdp. that is according to a lawmaker. he says he will chair the group and any changes to the data will likely result in stronger and not weaker figures. sentiment among u.k. executives has regained more than half of the losses in lifted by the shock to leave the european union according to a new survey. the business confidence index increased to 109.7 in august bolstered by increased exports and manufacturing as a weaker pound exported goods more competitive. a tumble from -- a tumble 2105. after the referendum. by its is said to be hit first hurricane since 2005. hermine is a category one hurricane. it is scheduled to hit the panhandle early today. threatened to

flood agricultural regions, damaging cotton and soy crops. -- a spacex future rocket has exploded on a launch pad in florida. that is the second loss of a spacecraft by elon musk's venture in a little more than a year and hobbles facebook's effort to spread internet access across africa. the explosion happened during a fuel effort. both the rocket and its cargo were destroyed. global news 24 hours a day powered by our 2600 journalists in more than 120 countries. you can find more stories on the bloomberg at top . i am christine harvey. this is bloomberg. manus: thank you very much. we are going out to david now on the asian markets.

we do have one line coming through from the saudi's. the saudi foreign minister is optimistic on an oil freeze. freezeptimistic and oil deal is possible. oil prices are up by --. david is standing by for us in asia. i could stand here all day and nothing is really happening. i have really nothing to say. muted forn the most asian markets and close to three decades. looking at the split today on the msci asia-pacific. the 1000 against stocks in the region. they are split down the middle. there is about 6% smack on the fence. unchanged. volumes are quite flat. the trading ranges -- very tight.

no one wants to take any big bets are ahead of the employment numbers out of the u.s. later tonight. for the week, we are down ever so slightly. .03%. or the the story nonstory across the equity markets. have a look at the fx. the u.s. dollar is a little on the back foot apart what we see from the japanese yen and the ringgit and the -- the renminbi. before i go, this is your story from the asian market. the bondff across market space, especially in japan. have a look at the 10 year. there is your yield. we are very close to turning positive for the first time since february. and 40 year yields are close to where they were last march. this is the longest streak of losses on the japanese 30 year

bond in over 30 years. anna: david ingles in hong kong. letting their potent has struck a conciliatory tone before talks with the japanese prime minister. at the eastern economic forum. a territorial dispute has presented the two countries from signing a world war ii peace treaty. told theadimir putin bloomberg editor in chief that resolving the conflict should be part of setting the stage to resolving this long-term relationship. >> several years ago, our japanese colleagues asked us to return to discussion about this topic and we did that. we met them partway. in the past couple of years, not by our initiative up from the japanese side, these contacts were frozen. but now, our partners are showing a relationship to return

to the discussion of this subject. we are talking not about some exchange or some sale, we are talking about finding a solution. where neither of the parties would feel if he did. -- would feel defeated. culkin -- jim mccolgan joins us. speak great pleasure to to you this minute. we have this exclusive conversation between our editor in chief and the russian president. covering a host of topics. give us your assessment of opportunities in russia. we have seen the oil prices bounce a little, some things have improved but what is your assessment of the opportunities at us --as an investor? >> it is a bit early as an investor in russia. the timing of this agreement

abe are. putin and mr. having is not a coincidence. they both have economic troubles at home. they have issues with trade with china which is important to both of them because of china's growth slowing. the oil price is back down to 45 or so this week. japan has an imbalance of policy for their overreliance in monetary policy is diminishing in negative returns. if you look at both russia and japan, it is a good time for some international political distraction. tohink it is a bit early make a big move into pressure. it has been a sorry story with the overdependence on oil. i don't see that changing in the near term. if you were to take a bullish view of oil, maybe. but i don't. manus: touching on the oil story

, and we will hear more in the next few hours and the russian perspective on the oil society. the foreign saying he is optimistic for a deal in this meeting in algiers. would that be a game changer? from a fiscal point of view, for russia, they obviously need to see oil above that $50 a barrel. jim: it would be a game changer if it stuck but i think the problem for the opec meeting is that oil is in place -- pretty plentiful supply. anywhere around that $45-$50 a barrel, u.s. shale is becoming competitive. thehave a bit of a cap on oil price. even though the saudi foreign minister is expressing some optimism that they will get some

restraint in production, i frankly doubt it given the need for cash among many of the oil-producing countries. i do not think it will be very easy for them to get discipline around market share. the fact that saudi is no longer prepared to be the swing producer that restrains themselves whenever those problems -- whenever there are problems in the market, no one else is. even if there is an apparent deal announced, i suspect it will not hold and i suspect it will be a short-lived rally. manus: a short-lived rally has applications for emerging markets as well. goldman sachs is saying that the , would you concur with that? jim: essentially yes. in particular the emergence of the chinese economy. 10% per annum growth for over 20

years. totally unprecedented in the history of world development. i do not think it is coming back. it was a unique set of circumstances around it. as ill and china -- brazil and marketin terms of open opportunities, they are a middle income trap. it will be hard for them to grow more than a few percent. in the next decade, they will be looking for a normal business cycle. i think i broadly agree with that. having said that, the emergence of the global middle class means that particularly the brics will not be a bad place to invest, they will just not be as good as they were in the last 15 years or so. anna: jim, thank you very much. manus: two strong months for the

u.s. job creation. we will get the key august number. anna: spain's prime minister confidence vote. we're live from madrid. growth tom global terrorism, leaders head to china for the g-20 summit. we will break down the key points from the sidelines. for our exclusive interview with russian president vladimir putin. we will get his thoughts on oil and the u.s. presidential election. do not miss our special report on monday at 5:00 p.m. u.k. time. this is you -- this is bloomberg. ♪

very: 1:20 p.m. in a very, hong kong. you can only see half of it there. we will give you vision and light. let us get a business flash from christine harvey. president russian

vladimir putin has struck a conciliatory tone before talks with the japanese prime minister at the eastern economic forum today in russia. a territorial dispute has theented -- has prevented two countries from signing a world war ii treaty. vladimir putin told bloomberg editor in chief that resolving the conflict should be part of setting the stage to developing a long-term relationship. we do not trade in territories. although the problem of the peace treaty with japan of course is a key one. we would very much like to find a solution to this problem with our japanese friends. tune in all day to watch our exclusive interview with vladimir putin and do not miss our special report on monday at 5:00 u.k. time. samsung electronics is expected to announce a global recall of a cell phone because

of a faulty battery that catches fire according to south korea's new the -- news agency citing an unidentified company official. able announce the results of an investigation and they plan to deal with it as soon as this we can. apple may repatriate at least $5 billion of its offshore cash back to the u.s. next year. tim cook told irish radio that the company has permission money for payback back to america and that might happen in 2017. on tuesday, the european commission said apple is more than $14 billion in back taxes to ireland where it looks most of its european revenue. christine harvey joining us there. it is that time of the month again. after two strong months of job creation, economists expect today's u.s. jobs report to show

a gain in august, falling in line with the average for 2016. this months fomc meeting live suggesting a one in three chance. let us get back with jim. aalways feel like ringing bell. we are waiting for the jobs number. when hundred 80,000 is on the slates. august is typically disappointing. but for added the past five have been revised higher. what will they do? >> i don't see it as break -- make or break. there has been a very strong, steady growth in payroll so far this year. ever since the 25 basis point rise in the fed fund last year. seehat is sustained, and we

180,000, 200,000 gains this month, september is on the calendar. if not september, sometime in the fourth quarter. i don't think it matters which that i would like to see at least one 25 basis point rise in the fed funds before the end of the year. i think the u.s. economy can take it and i think it needs it in a way to does the cost of capital needs to be reasserted in the short term and we need to see some flattening in the yield curve at this stage in the economic recovery. it is mature but not yet getting old. anna: we will see how markets react. what if the probability for a hike and september stays where it is, 34%, could the fed hike with that kind of low probability priced into the markets? jim: i think so. it depends on the numbers.

they should not really be looking at the very short-term becausebut we all do although there is a lot of noise in them, there is a little bit of a little bit of the signal as they build up over the months. 200,000,umber is over the probability will go up quite sharply of a rise in september. i think equities will treat it ok. they will treat it as a reaffirmation that the economy is doing fine. i think the u.s. economy is doing better than any other developed economy. i think that means that u.s. business will continue to do quite well. the market should be ok with a 25 basis point rise if it comes in september. look at those numbers. if it is down around 150 thousand, they will probably leave it. if it is 200,000 or more, i think they will do it in september. beit is in between, it could september or december but i don't think it matters a lot. manus: let us talk about the s&p

500. hr has been rallying. for 39 days. days of this muted market. you would say that even with these all-time highs, you are still convict did to u.s. equities -- convicted to u.s. equities? jim: i think the u.s. equities are still the best. although they are nudging around an all-time high and they have been very stable for the last little while, the earnings yield on u.s. equities is still significantly over 5%. you're talking about a pe ratio of 18. in normal times, when 5% or 6% treasury yield was normal, that would've been extended. a 2%owadays, maybe

treasury yield will be height in the cycle. at which point, i do not think you have to worry about u.s. equities. you, jim.k a real pleasure as while -- as always. tune in all day for much more of our interview with russian president vladimir putin.

emperorsshot of the palace in tokyo. yen.r-yen -- dollar- top -- ate a look at some of the top stories. it is our exclusive conversation. our editor in chief sat down with vladimir putin ahead of the meeting with the japanese. and a head of the g-20. the russian president telling us he wants to resolve the territorial dispute with japan

setting the stage of what he calls long-term relationships between the nations. on how thee focusing world's largest banks are in the home stretch of a long campaign to convince all editions and regulators that changes to their capital requirements will suffocate the industry. interesting to see how strong a performance of the banking sector has been in august. some people are talking about the slight change in the regulatory environment prompting that. seek aglobal banks will special brexit deal to keep the status quo. they want to lobby theresa may to consider asking for passporting which would take them through a timeframe otherwise they may not necessarily hang around. we also have a final story on the g-20. theresa may, this will be her first meeting as prime minister of the united kingdom. and you have the new president

brazilian senate. a big emphasis on fiscal spending and how investment in infrastructure can boost an economy. . manicured booming city a good example of what bad investment can do for an economy. --a: that is what the debris daybreak team is working on. a muted performance amid the countdown for the key u.s. job numbers. let us get the details. here is ryan chilcote. with: let us kick it off oil because it is one of the biggest movers of the day. i have a chart that shows the brent price versus u.s. oil inventories. we got that data yesterday and it indicated that inventories are going up. i want to point out that as we

climbing, with a delayed reaction, tend to see the price of crude tall. but it is is going up snapping a four-day losing streak, it's worst since february. $45.72, upf oil is marginally from where it was yesterday. it had dipped substantially yesterday. therussian minister says -- saudi minister says he does not see any need for a freeze. saying thats are even if we got a freeze, it would not mean much because the glut continues. oil is one thing to keep your eye on. you mentioned financial markets being muted. that is the case. here is the asian equity markets. down a- the nikkei is tad. the hang seng is your biggest mover. up close to 0.4%.

generally, everyone is waiting for the nonfarm payroll data out of the u.s. knowing what's to take on too much risk this minute. kicking it off with the dollar. this is a good indication of where people think the jobs -- where the rates will go. it is almost flat as a pancake. what i want to draw your attention to is this big drop from peak to trough that is a 0.6% drop in the dollar. data from the u.s. indicated that manufacturing is contracting for the first time in six months. --ple saw that and they said maybe the fed will not raise rates as quickly as we thought and that is why we saw the dollar dropped. the next catalyst to watch will be the jobs data that we will get later in the day. let us return to our top

story. russia's president sat down with bloomberg editor in chief to have an exclusive conversation in russia ahead of the annual g-20 summit in china. they discussed the relationship between japan and russia. you began by asking if would give up -- we do not trade in territories. although the problem of a peace treaty with japan is a key one. we would very much like to find a solution to this problem with our japanese friends. we had a treaty signed in 1956 and it was ratified by the sabrina soviet of the ussr and the japanese parliament.

the japanese side refused to adhere to it and then the soviet union nullified all of the agreements within the treaty. several years ago, our japanese colleagues asked us to return to discussion about the topic and we did that. we met them partway. years, not couple of from our initiative but from the japanese like, these contacts were frozen. but now, our partners are showing a willingness to return to the discussion of this topic. we are talking not about an exchange of some sale, we are talking about finding a solution where neither of the parties will feel defeated. >> are you as close to a deal as you have been since the 1960's?

i do not think it is closer than 1956 but in any case, we presume to dialogue on this topic and we agree that our foreign ministers will step up their work. this will always be a discussion of the topic for the russian president and the prime minister. that mr. abe will also discuss this topic. but it should be very well thought through and not be based on -- setting the stage for the development of the relationships long-term. to watche in all they our exclusive interview with vladimir putin and don't miss our special report on monday at

5:00 p.m. u.k. time. much more to come from that conversation through today's programming. us now is christopher. great to see you this morning. sticking with the direct subjects that we discussed in this interview, this is a long-running dispute between russia and japan. going back to the second world war. what are your expectations of any resolution? christopher: i would go along with the consensus that there is no easy solution to the problem. public opinion in both countries would be very hard pressed to accept a deal, even a compromised deal of the president was referring to. declarationnt basically circled a deal where would bemaller islands

returned to japan in return for a peace treaty between japan and the then soviet union. that peace treaty was never signed. latimer potent is signaling that russia is up -- vladimir putin is signaling that russia is up to an agreement. this would mean that russia would have peace with japan formally. it would have's lit the g7 and the western -- it would have split the g7 and the western powers. let us not hold our breath. japanese public opinion will not accept anything less than the return of all of the islands. this is not about doing deals but about executing an agreement where neither side are

seen to lose. if we look at these relationships, this would be such a turning point to get that treaty signed. japan-russia trade has dropped. they need one another from a global perspective. i agree strongly with your last point. for russia and vladimir putin, this would be a big diplomatic cuoup. but i would have to refer to people who know much more about japan to see what is in it or japan and the prime minister. that thisspeculate would be part of his nationalist foreign policy agenda. i would hesitate on pontificating too much about the

japanese angle though it is an interesting one. anna: and a distraction from domestic problems. you mentioned the reaction of uncle sam and how this could divide the g7. what would be the reaction of the u.s.? of the primea sign minister's foreign-policy is that he has not respected strong u.s. indications that he should not deal with russia. while the confrontation between russia and the west over ukraine persists. complied. japan has gone along with the sanctions package of 2014 but abe has been visiting president putin in russia. and he is forging his own course. manus: japan has appointed overnight a new economy and

trade minister specifically with responsibility for russia. that shows you the scale with which we may be moving forward between these relationship -- between this relationship. christopher: is this the best the since the next -- since 1960's to solve the problem? did a deal with china on the soviet-chinese border, that was a historic achievement as well, it was clear that the soviet union might do a deal with japan. when the soviet union broke up, that became politically impossible. already lost so much territory. president yeltsin could not give up anymore. had a theme of -- let us build economic relationships.

the japanese side said we will not make the territorial dispute a condition for economic relations with russia. put it to one side. trust.try to build interesting that the prime minister is resuming this. i think we are getting back to the situation in the late 1980's. anna: christopher will stay with us here on countdown. spain's acting prime minister faces a second confidence vote in parliament today in order to secure a new term in office. live fromre joined madrid. is warning minister the eight-month impasse is holding up crucial reforms although the spanish economy is europeandoing ok by

standards. how important is today's vote? it is a stalemate. someone here called it a version of groundhog day. how important is it? the ruling party is trying to put out a message that we are about to fall into chaos. and only we can call it. if we don't get into the it will fall. a certain metrics show the economy is doing well but they have to approve a budget at stage. they have an issue with the deficit. the got an extension from eu to meet certain targets but the issue is there and it must be dealt with. some metrics make it seem like things are ok but they still have to fix certain other aspects. manus: what are the next steps if they fail to form a government today? is it a christmas day election? >> so it seems and it is one of the big contention points. it came up several times in the

last debate two days ago. there is still a window to avoid the christmas election because morether parties have two months to try to form a party -- to form a government. there is the possibility. will they be able to do it and it seems extremely unlikely. anna: thank you very much for your analysis. --ll to calm, world leader still to come, world leaders head to the g-20 summit. manus: we will bring you more of our exclusive interview with russian president vladimir putin about oil, politics, and russia's relationship with china. anna: we will bring you a preview and a lot of analysis of the jobs report.

this is bloomberg. ♪

manus: 1:48 a.m. in newark. -- in new york. it is job stay in the u.s. 180,000 is what the market has penciled in. what will they deliver and what will it mean to the fed? christine harvey is with us. christine: russian president vladimir putin has struck a conciliatory tone before talks with the japanese prime minister at the eastern economic forum today in russia. hasrritorial dispute prevented the two countries from signing a world war ii peace treaty that vladimir putin told bloomberg's editor in chief that resolving the conflict should be part of setting the stage to develop a long-term relationship. we do not trade in

territories. although the problem of the peace treaty with japan is a key one and we would very much like to find a solution to this problem with our japanese friends. christine: june in all day to watch our exclusive interview with vladimir putin and do not miss our special report on monday at 5:00 p.m. in the u.k. going back to the drawing board after deutsche bank lost more than half of its market value since he unveiled his overhaul last year. the ceo and his top managers will meet this weekend to assess progress on the reorganization. earlier this week, another person said deutsche bank held talks over a potential merger with commerzbank last month before they concluded that the timing was not right. is expectedtronics to announce a global recall of a

large screen smartphone note seven because of faulty batteries that catch fire according to a south korean news agency who cited an unidentified company official. samsung will announce the results of an investigation and it plans to deal with the situation as soon as this weekend. that is your bloomberg business flash. christine harvey. leaders from many of the world's biggest economies will be in china this weekend for a g-20 meeting. let us go over to shery ahn who is live with us. good morning to you. what is at the top of the agenda? we hear a lot about fiscal spending, infrastructure -- all of that will be on the agenda. first of all, it will be inclusive and interconnected development which is high on

this year's g-20 summit. risingprising given economic nationalism around the world. this is a high profile meeting of world leaders here in china. not surprising given that we are seeing so much security around the city. not only the summit venue but also the media center which you can see things are starting to kick off. a chinese minister spoke this morning saying the global economic recovery is slow and unbalanced and the aftershock of brexit still remains. he says that conventional monetary policy as well as unconventional measures are no longer proving effective in some countries and that china should have a more active fiscal policy to support growth. besaid that will communicated in the g-20

communique highlighting the need for comprehensible fiscal reforms. manus: thank you very much. directorer is managing and is still with us here in the studio. the g-20 gathers. the debate is about fiscal stimulus. there are many things on the agenda. what can g-20 possibly due to move the agenda towards fiscal spending? hosttopher: the chinese including global development. china is a developing country. that the reality is that fiscal policy is the top agenda item for this g-20 summit. central banks have run out of road. fiscal stimulus is the main story in town.

that china,gnal although it has notorious problems especially in its banking sector, does still have a strong national balance sheet and is ready to use it. that is a bullish signal for global markets. focusing on the official agenda and the big staging of the events. but all of the interest is around the sidelines. what is your top pick for the bilateral's? christopher: i hope you will forgive me if i focus on russia. there is plenty of interesting lyrical bilateral action going bilateral action going on with vladimir putin. including his meeting with the chinese president. move withtrategic

china especially since the ukraine crisis blew up russia's relationship with the west. some commentators have been spectacle that there will be much substance. but the truth is middle of the road. it is not life-changing. some substance. especially in energy cooperation. russia investment in projects -- the russian government has 20% of the company to privatize. the chinese company is the obvious buyer. that would be exciting for the russian equity market. the ukraineabout crisis and germany and france if you like. manus: let us touch on those briefly. angela merkel will meet with

vladimir putin and she will want to see some validity to the continuity. the french and german leaders will try to push forward the agreement about southeastern ukraine. it has stalled and degraded in the last few months into constant fighting or at least shooting across the line of control. it is difficult to see what kind of breakthrough there can be. the russians are keen on this agreement. he would like to see it implemented that it is complicated for the ukrainian side. it is politically impossible for the ukrainian government to evelyn -- to implement this agreement. but the western powers also cannot abandon the ukraine. next, or from our exclusive interview with vladimir putin. we will get his thoughts on the

oil market and china. stay tuned for that. toa: you also don't want miss our special report on monday at 5:00 p.m. u.k. time. this is bloomberg. ♪

>> vladimir putin tells bloomberg he sees an oil freeze with opec. a compelling case. hike.ual rate investors awake for an payroll numbers. banks strikeiggest an interim agreement with the eu before formal brexit talks starts. we are live from the form , italy with a

number of top entities. welcome. >> a warm welcome to the program. it is 7:00 and are in london. this time on the subject of oil, pushing for an oil freeze deal with opec. there is some sort of exemption for iran. will reach aia deal to freeze supplied this month. they expect their to be issues with iran's participation will be resolved. they will have a conversation about whether they can achieve some sort of freeze. he was skeptical about whether

any agreement would hold. an oilays he things freeze is worth pushing for. >> from the viewpoint of economic sense, economic sense and logic, it would be correct to find some sort of compromise. he refers back to that last meeting where there was a lack of agreement. idea ofot reject the freezing but our position has changed. from whether this comes oil. it dropped to the $40. that puts pressure on rushed to reconsider. that is what they wanted to get back to. we will see how iran he hates. -- behaves.

and the dnc, the democratic national convention, putin saying the dnc hack was a public service but russia did not do it. another angle with vladimir putin. one of the quotes coming from his conversation with our interview. matter does it ever who did the hacking? >> it's interesting he talked about roth net. and taxes,ll raise may well raise the oil industry are you this is advancing the view that that may well come. russia is ready to develop exports to japan. the small thatto

may be on the table. that so could be as soon as this +++ >> vladimir putin sat down with bloomberg editor in chief for that exclusive interview ahead of the g 20 summit. they talked about trade with china. >> president putin was asked if he thought to hundred billion dollars by 2020 is achievable. >> i think it is completely achievable. it was $100 billion in trade. we always go to that figure. that figure was almost reached.

they included the prices of our traditional exports. they include currents. this is simple objections. sanctions make a difference? >> the sanctions are connected. we have built a relationship with the people's republic of china we consider to be at an unprecedented high. we call it a comprehensive partnership. sanctions have nothing to do with it. the decline was due to connections with it acquire

-- the decline in oil prices. they actually grow with regards to trade and economic relations for china. moreare becoming more and intensified. we have sold them to our chinese partners. trade, inn to traditional goods, energy resources, hydrocarbons, oil and natural gas. and from the others, textiles to ahoes, we have moved new level of cooperation. we are developing a heavy helicopter. on a long-haul airplane.

we are operating in machine building, high-speed rail, in processing, in timber and atomic energy. we have built the nuclear power plant. two reactors are functioning. reactor.uild another the goal we set for ourselves is being met. and watch our day exclusive interview with vladimir putin. we will have his thoughts on the u.s. elections and many other topics. stay tuned for that. >> don't miss our special report. we will bring you further from this conversation. let's get back to the market story. >> we have a stronger town in london. is this the column before the

storm? >> we spent the summer waiting. today we are waiting for the jobs report. >> we had a conversation earlier. i like what he said. it put some parameters around it in terms of raising rates in the united states. about 200, they will probably go. above 150 they will probably hold. >> it is down compared to where it was. it was higher than that at the start of the week. that should not matter to the fed. >> it could go anyway. rate.throw up the risk as we wait for the jobs report for the month of august. modest moves.

three weeks of stability on stocks in asia. the most needed in a decade. we have the oil price in their tsonga than it was. -- in their stronger than it was. putin is pushing for an oil freeze with opec and exemption for iran. >> let's get to christine. she has the news for us. good day to you. >> thank you. saysland fed president there is a compelling case for but theinterest rates u.s. economy approaching the central-bank target on employment and inflation but she declined to say when she believed hikes would be necessary. the fomc holds its next meeting next week. liberalruling democratic party will form a

group to examine how to collect economic statistics used in key measures including gdp. a lawmakerording to says he will share the group and any changes to the data are likely to result in stronger, not weaker figures. the world's biggest banks are pressing the prime minister to strike an interim agreement for financial companies before exit talks start. they said a deal would seek to preserve passporting. and florida is being hit by the first hurricane since 2005. it has reached 80 mile per hour, making it a category one hurricane. wind and rain threatened to flood agricultural regions

damaging cotton and soy crops. a five-week high as the storm state.the sunshine a spacex rocket has exploded in florida. it is the second loss of a spacecraft in a little more than a year and hobbled a facebook initiative to spread internet across africa. it was being fueled for a launch at cape canaveral. the rocket and its cargo were destroyed. global news 24 hours a day powered by 2600 journalists in 120 countries. find more on the bloomberg. this is bloomberg. >> thank you for that. let's check the market. many are waiting for that job is for it. .- jobs report

>> it is than a dull week. a look at what is happening across the market. asia-pacific, we are getting a decent bit. a lot of these markets are closing up shop. south korea, you put everything together. we are looking at a small majority. down.the way if you did have to single one group out it may be the gold bonds stocks.

take comes down to a lack of appetite. overall, up by a 10th of 1%. this is the big story. this is something we are going to watch. very close to zero. close for the first time. manus: thank you very much. the latest roundup from hong kong. the russian president has struck a conciliatory tone before the japanese prime minister. anna: a territorial dispute has prevented the countries from signing a peace treaty. has anchols wade explosive interview.

>> several years ago they return to the discussion of this topic. we met them partway. years,last couple of these conflicts were frozen. but now our partners are showing new willingness for a discussion. we are talking not about an exchange of some cell. parties will feel defeated. >> let's recap some other headlines we had. they talked about oil. this is what he said. he is confident opec and russia could do a deal. they produce half the world's oil.

it would be correct to find a compromise. he exempts iran. he says he is pushing for an oil freeze. they are starting from a lower base. anna: we will see how that will go down with the saudi's. let's bring in our guest at seven investment management where he helps manage 9 billion pounds. great to have you on the program. about oil. vladimir putin is confident opec and russia can reach a deal to freeze supply. he said if we see that it will not hold at any balance will be short-lived. >> it would be a major change. force them outto of the market. there is probably some skepticism on this deal. >> it was decided in the story

society partners change their view. we didn't reject it. our position hasn't changed. they all can agree. you dohether or not freeze at the proper limits. we are at record levels. >> i think this may be a case that we are feeling the pinch. maybe this change of strategy is in the offering. >> how are you investing at the moment? impacting?t >> russia has been so far off of the radar for investors in the west for such a long time. willan, government on's

offer a big karey -- carry. >> there are opportunities. i'm interested if he is present shall name -- positioning back into that. >> he needs them for five years. encouragement, this is in the ramp-up of the exclamation of sanctions. russia has performed against all of the odds. things are tough. the acronym was goldman. done in terms of brexit. would you concur with that? what about you?

it is seen in china that it is very interesting. >> what about your broader emerging-market strategy? >> contended be positioned in asia. although the political risk has been rife in the region, the markets haven't followed that. brazil has been a great performer. we think there is more of a growth story. developed -- most >> you want to stay away from it. >> it is too late to play. thinkinguld your shipped. we will hear more from vladimir putin on a host of issues. is on thech small table.

fiscal policy is top of the agenda. how would that translate for you from an investment perspective if there is a shift on the fiscal staff? >> it would be good for us. we believe we have had a very long come a slow recovery. we are not in a new normal. what we're doing is lacking certain things that would normally be there. truncated after the credit crunch. it has been missing. they can't generate growth. they can't generate demand. they can only create an environment that is conducive. interpretation you could put on the low interest rates. manus: they have sown at the markets. they can borrow anything they want and they will not have to

pay high interest rates. you could force through a lot of interest rate spending. anna: thank you. stay with us. manus: tune in all day and watch our exclusive interview with vladimir putin. we will get his thoughts on his u.s. elections. and him on the dnc hacks. does it really matter? he says they didn't. we have a special report as well. is 7:20 here in london. let's get bloomberg business flash. president has struck a conciliatory tone before talks with japanese prime minister shinzo abe today. the territorial dispute has prevented the countries from signing a peace treaty.

interview itve should be part of developing a long-term relationship. trade territories. although the problem of the like toeaty, we would find a solution to this problem. >> tune in all day to watch our exclusive interview with vladimir putin. our special report will come on monday. back to the drawing board after deutsche bank lost more than half of its market value since they unveiled their overhaul. the ceo and top manager will meet this weekend to assess the progress on the reorganization. another person said he held both last month before concluded the timing was not

right. electronics is expected to announce a global recall of smartphones.een the batteries can catch fire. samsung will announce the result of an investigation and a place to deal with the issues as soon as this weekend. >> thank you very much. where are we now? jobs report. it is jobs day. anna: it is. too strong months of job creation. there should be a gain of 180,000 which would be in line with the average for 2016. manus: any sign of strength will enhance expectations of policy tightening. this month they are considered

light. future show the odds are one in four four move. anna: the cio is still with us. what are you going to be watching? it requiredr said the strength of the number. that is the missing part? >> i think it is about the wage gains in if they trend up. 3% bynk reaching close to the end of the year. then you are into rate rise territory. you are not going to get that today. we had a very weak i sm from the u.s. and manufacturing. almost so weak it was worrying. there's plenty of ammunition. they always look for an excuse not to raise rates. the 25% probability is right. manus: a long conversation we

had an hour ago saying even know the market is so underpriced at put the fed, it could september in play. you are looking very studiously there. volatility in the bond market. we are right for a kicker. we could flick and run on these. >> absolutely right. there is a huge margin of error. >> this adds complications. this is key but unreliable data. , theyn the first reading have been revised up by 94,000. not only is this key data.

it is unreliable. >> there are all sorts of calendar quirks that make it an unstable number. i doubt the fed can pave it on the payroll. >> you think they are looking for excuses not to do this. think they are very happy with the trajectory of the economy. employment is where they wanted to be. we have a sustained recovery. we would have killed for that. >> so much could happen before december. the presidential election. things are very unknown. >> that is true. there is a window. is trading atlar .83. the cash market has done the fed 's job.

we haven't moved 1% one way or the other. what way are you? >> we are in a holding pattern. we have had this incredible .ally nobody expected we are trying to find reasons for it. >> i can't love it. i'm a bullish person. the data has been stronger but not strong enough. european data beginning to disappoint a little bit. you can way the politics of where the risk is. anna: it has been a quiet summer. >> to quiet. everyone is waiting for the catalyst. >> we will see with the jobs report delivers. thank you for your thoughts this morning. scarlet: some of the top headlines from our exclusive conversation on oil. for a deal at

opec. more on that exclusive interview with the russian president. this is bloomberg.

>> welcome to on the moon. isre counting down, here what we are watching. a vladimir putin exclusive. he is confident opec and russia will reach a deal to freeze oil in out years. we have more on this throughout the show. 180 thousands cement a fed hike. is the market