esome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. manus: a very good morning. this is "bloomberg daybreak: europe." talks stall. we will skip to asian summits later this year. the u.k. prime minister faces another brexit revolt as members of the tory party divide her plans. setting the tone, the selloff in yen currencies continues -- em currencies continues. what next for an awful august?

welcome to "daybreak europe." let me take you state -- straight into these markets. we will have more from the nigerian oil minister about the prospect for holding onto the curve going into 2019. the market has its ants in its pants about trade war's. tariffs could come into force later this week. what would be reciprocity be in termschinese market of additional tariffs? a little better breaking news for you. we will come back in just a minute. this is the nikkei manufacturing for india. it's let's 51.7. 51.7%.lipped to

you can see we have been cascading lower. the angst is this. the likes of indonesia, the likes of thailand under additional pressure in this p.m. route -- emerging market rout. this is a six-month trajectory on the indian rupee. was 52.3. previously that is the issue there in terms of the data coming from china. , a little bit later than the market expected. the market -- the export numbers from the cai asian data. rupee.ave a look at that oil is little bit lighter. there is a weakening of the turkish lira. this is a reality check for the central bank. that is what our emerging-market editor would say.

emerging-market currencies are down for the fifth month in a row. the longest losing streak since 2013. cable is lighter. theresa may decrying she will go for a second referendum. davis, there is a whole host of voices on dissent about the template theresa may has laid out. of are seeing a couple analysts come out with their calls. desire markets. -- those are your markets. it has been a tight august. since 1967 has never been quite this type. -- tight. when you have is a bandwidth of 0.8%. you would have missed a 9% rally if you come back after labor

day. goldman sachs are saying you want to buy spreads. something is going to happen according to the market gurus. it is going to shift the dial in the s&p 500 one-way or the other. could it be trade wars? the hedge funds are trimming their exposure to this market to the lowest level this year. the hedges are always fast and furious. we will be joined by the former u.s. representative to the imf. lots to talk about. juliette saly is standing by. she has your first word news. trump will skip two major summits, a move that puts concerns in the region about america's reliability as a counterweight to china. the white house says mike pence will travel to singapore for a summit hosted by asean before heading to an open gathering.

the summit is usually intended by 18 leaders, including xi jinping and vladimir putin. prime minister theresa may and opposition labor leader jeremy corbyn are under fire as british lawmakers prepare to return to work this week. for may, the issue is brexit. the proposed agreement was attacked by michel barnier who said he strictly opposed it. it was also derided by her former brexit secretary. -- continues to be china welcomes african leaders to beijing today amid criticism its development plans on the continent risk saddling countries with debt. xi jinping is facing criticism with chinese academics raising doubt. his keynote speech gives him a chance to defend the initiative and he is expected to stress the importance of cooperation and consultation.

nigeria says it expects opec and its allies to continue curbs on oil production. brent crude has risen from a low $50 to the high $70. the country's oil minister told bloomberg if prices stay as they are by the end of the year, restrictions will probably stay in place. >> the momentum is leaning towards that, yes. dislodge what we -- we will see how the marketplace off. come december if we find everything is working well -- in brazil a fire has engulfed the national museum,

ravaging the 200-year-old museum in rio de janeiro. the blaze started about 7:30 p.m. local time. country's president tweeted that it was a sad day for all brazilians. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . not a great start to the new trading month in asia. we finished august down by 0.8% on the msci asia-pacific index despite the fact that we had record highs on the s&p 500 in the u.s.. today the regional index down for a third session. selling in hong kong way down by tencent. also that slight disappointment in touching data. upside on bit of an the nikkei and the asx 200. let's have a look at stocks we have been watching. casinos tumbling hard.

investors struggle for hard gaming reports and listen to analysts to say the next round of tariffs on china could start to dent sentiment amongst highrollers. you have women countdown -- wynn macau down. the eu and its anti-dumping plans. in australia, northern star rising the most on record after it agreed to an alaskan minor purchase for $260 million. it has had ratings upgraded by several including j.p. morgan and citi. manus: thank you very much. the very latest on the markets. it is a big week for trade wars between the u.s. and china. washington's public consultation period over proposed additional tariffs of $200 billion on chinese imports ends on thursday.

bloomberg understands president trump may order new tariffs as soon as this week. there were bigger than expected declines in the manufacturing pmi. this would suggest growth in exports sectors of the chinese economy will continue to lose momentum. joining us now is our chief asia economics correspondent. is good to see you this morning. i can make use -- make this sound very dramatic. diverting from the main bar. in my overly embellishing the downside of this story? should the risks be taken seriously? >> maybe all of the above. you are right in terms of not reading too much into what's happening. broadly speaking, the data is flowing down. drive tots an internal

curb debt rather than the trade war affect. still, the caixin pmi is down because the export orders continue to be under pressure. that is more former looking than other indicators we are getting. i think divergence with the official pmi probably reflects grand,issimilar from the with more action by the pboc, it is helping china's domestic economy. export oriented sectors are not getting relief. that is what we are seeing with the caixin. the data -- the damage from the trade war is manageable. manus: can any of this be attributed to the trade conflict? to bite.starting there is no doubt about it. it is pointing to softer demand.

is believedndicator to be a better read for the private sector or export oriented economy. there is no doubt there is impact. greatly will be how it comes out of the market. global demand has been doing ok. the has been more or less demand forbouying chinese exports. we get the next round of tariffs on chinese goods. china response itself with tariffs on u.s. goods. we are heading into new territory. economists say well the impact is not completely quantifiable, it will be material on those exporters coming out of china. i think that is why we start to see a much clearer impact from the trade war over the coming months. manus: thank you for the context. our chief asia economics correspondent. hour,st host for the next

a brave man going it alone in the london studio. good to see you. the gtvd a chart in library. to what extent are you concerned about china? we have not even baked in escalation of trade wars. are you more worried than -- is? >> i think there is reason to be more and more concerned about situation. the trade backdrop is only going to deteriorate. we could have sanctions or tariffs being put in by the u.s. this week. china responding as well. .hat is clearly posing a risk at the same time we are seeing upsetting -- offsetting policies elsewhere. we are seeing domestic stimulus in an effort to boost domestic demand.

the policy story is also looking looser than it would be at the start of the -- perhaps weaker on top as well. the trade story is going to be a negative, but we have some less. -- we are still going to be seen gdp coming out of chinese statistics. manus: you mentioned that later touch policy from the pboc. they want to stabilize the yuan. what is the bigger backdrop in the background to bolster the economy? >> if you look at the global economy the story is still encouraging. the u.s. is astonishingly strong. we're going to see policy tightening their. the growth story is better than it was a few months.ago . if we have the chinese authorities perhaps not stepping on the brakes quite so much and

also allowing -- as well, that can provide some offset to these trade protectionist headwinds. the other thing i was looking at this morning, a lot of developers in china have done well. the cash to debt ratio in a lot of these corporate's is getting thinner. i was looking at the there -- the data. the cash to short-term debt coverage that in 2015 has cascaded down. there are many ways to talk about debt. one of the most manifest representations of it is this in terms of the potential risks to the economy next year. talk to me, your perception of debt risk in china. debt is always an issue when you talk about china. it has been for years.

this chart does illustrate that sort of problem is perhaps -- has increased. we are seeing a de-risking in the chinese economy. we are seeing greater policies to mitigate that that risk and control it a little bit. at the moment we are not seeing that materialize in the data. i am sure it will in time. it does pose risk at a time when you have trade concerns. china is going to remain an issue for us for quite a long time. you.: thank the chief international economist at ing stays with us. theresa may faces another brexit result. of proposed deal has been attacked by both the eu and her former brexit secretary. we have the latest. ♪

manus: this is "bloomberg daybreak: europe." 9:19 in dubai. what a beautiful dawn you are seeing across the city of london. not such a beautiful dawn for cable. falling for three days in a row. even though barnier was bullish

last week, the market has decided to take theresa may's promise not to have another election, another rerun of referendum on brexit as a negative. down 0.25%. don over westminster as it returns to political hubris and paper waiving. one lady that is never full of hubris, juliette saly. juliette: thank you. jd.com's billionaire founder faces a legend sexual misconduct -- alleged sexual misconduct. they have not imposed travel executives on the executive while conducting their investigation. ford may cut up to 24,000 jobs and stop producing models as it tries to revive it european

business. according to the uk's sunday times, the carmaker lost 73 million pounds in europe between april and june hurt by week car offerings. the paper also says ford faces uncertainty from brexit, which could lead to tariffs on cars traded between britain and continental europe. group whichttled has reduced one of the country's biggest debt piles will need to slim down even further before regaining the trust of investors. the conglomerates total debt fell 9.5% at the end of june. according to public data stretching back to 2005, it is the first time the number has fallen. has led thesians north american box office for a third weekend in a row. it makes the labor day weekend one of the strongest in years for theater owners. the movie took more than $23

million in the u.s. and canada. g was once again in second-place. crazy rich asians has taken $111 million in total. that is your bloomberg business flash. manus: thank you very much. to the u.k. now. prime minister theresa may faces yet another revolt from within her own party as lawmakers returned to parliament this week. a proposed brexit agreement was opposed by the eu and has been derided by former brexit secretary david davis. it would be rather odd for me to resign over something and then vote for it when he came back. -- weou, the proposal should not call a deal, it is a proposal, is almost worse than being in. the pound is holding losses after a second referendum

vote was ruled out by the prime minister. the chief international economist at ing is still with us. watching the sunday shows yesterday and this one line from theresa may very much carried, which is, no second referendum. prevarication by mcdonald, but all options will be on the table. can riskrisk and you is anything but fading at the moment. >> it is also interesting. you referred to the second referendum. one couplefive to minutes ago we would get one, now it is three to one. there is still that doubt we might still actually get that happening at some point. in terms of risk, i do not think it is going to get better anytime soon, building up towards the end of the month.

that is going to be challenging for theresa may. i think it's going to be difficult for managing hardline brexiteers and pro-european elements within her party. getting any concrete proposals or momentum behind the deal is going to be tricky. i think we're going to have to be waiting after that conference to get any real news on the brexit story. we will be torn between now and when the u.k. leaves the eu, if that is the situation next march, which is, damped if she does and dam that she doesn't. doesn't. if she fascination -- a bailout from the eu to the u.k. has dropped the most since 2012. bloomberg intelligence has said this is actually a little bit of a skew.

i think it's all the story about overall sentiment. this has one of the biggest negative feedback loops, i put it to you, in the u.k.. >> it is a huge determinant of the economy, the consumer backdrop in particular. if you see the value of your biggest assets fall, you are not going to be happy to see holiday expenses go up. not a particularly great feeling. athink that does bear negative in terms of the u.k. growth story. adding higher interest rates as well, which going to compound the problems. we have to be looking at a grim consumer sector. that's being seen on the high streets as well with retailers. manus: thank you very much.

chief economist at ing stays with us. a couple of headlines coming through. this time from one of the italian newspapers. income for citizens is to be introduced by 2019. this is part of the big discussion coming from -- let me just grabbed my notes -- they have moved on italy and what you have is concern about this fiscal bandwidth from italy in terms of what they will do, what they will spend. will that put them on the head-to-head collision with the rest of europe? the bond markets are repricing those risks. spain, you're looking at a thread that is blowing out. demaio says citizens and come to be introduced by 2019. next, nigeria's oil minister told bloomberg there is a good chance opec's outlook curve will

remain enforced. that will come through into next year. you are seeing the oil market a little bit lighter in brent. the nigerian oil minister exclusively with bloomberg. that is next. ♪

manus: getting started for the week. there is -- what a beautiful shot. the opera house in sydney. the aussie dollar is up 0.1%. there is a cracking note out about the risk in terms of trade wars and what that might do to the aussie dollar, what that yuan do to the you one -- . they could be the worst trade casualties according to ubs. you could have 6.7% on the you want and 3.7% drop in the

aussie. trade wars in focus. let's get you started for your trading week. is labor day. some cash markets are closed in the united states and canada. futures markets are opened in bond and equities. tomorrow, mark carney testifies before u.k. lawmakers. what will he say about brexit? the ceo of twitter jack dorsey is testifying before congress on the russian election interference. thursday is the deadline for public comment about how u.s. tariffs on china impact what happens next. we round off the week with meetings of presidents of russia, turkey, and iran. i check in on the markets now with annmarie hordern. >> good morning. is the first trading day of

september. we are seeing a down day across asia. china csi down more than 1%. kospi also down. i want to look at e.m.. had a terrible month for august. the lira down, the rupiah paring back losses they had earlier. in commodities, copper down, aluminum down, citigroup saying metals are set to fall him the near-term as trade fears escalate. it is good to keep an eye on what is happening in the metals market. in the emerging market, this was the story for all of august. thebad was august the echo cost of insuring against defaults had its biggest monthly spike since 2012. fidelity is saying investors are concerned about em outflows. today is another big day for the emerging markets. turkey and argentina will set the tone. argentina is unveiling a new

fiscal plan. theng on, again with commodities space. i want to look at oil. you were talking in the middle east show about brent trading higher. the biggest in seven weeks. up to 4%. we have money managers really raising their bets on brent. the most since 2016. this shows net long in crude are still high. this shows net longs versus short positions. bullishness will be coming back to the market as we come closer to november sanctions on iran. exports have slipped the most since march of 2016. >> thank you very much. hedge funds are getting ready for tightness. from the charts you should be perusing, let's go to juliette saly. she has your first word news. juliette: u.s. president donald

trump has slammed what he calls decades of abuse by canada and threatened to cut ottawa out of any north american trade deal. he says there is no political necessity to keep canada in the accord and warned congress not to interfere. president's tweet was sent shortly after he left the white house bound for his golf course. donald trump will skip two major summits in asia, a move that could so concerns about america's reliability as a counterweight to china. the vice president -- the white house rather said mike pence would travel to singapore for an 18 nation summit hosted by as he and before heading to an aipac summit, usually attended by 21 liters, including xi jinping and vladimir putin. italy's yield spread will their out as budget details are --

narrow as budget details are unveiled. a prediction comes in the wake of widening spreads and a decision to lower its outlook on the country. italy's bond yields have pushed higher over the summer in response to the new populist government's electoral promises of tax cuts and some form of universal income for the fall. african leaders to beijing today amid criticism its development plans on the continent risk saddling countries with debt. xi jinping is facing criticism with even chinese academics raising doubt. his keynote speech gives him a chance to defend the initiative and he is expected to stress the importance of cooperation and consultation. the u.k., fire crews have been battling to save liverpool's littlewood building. night.took cold last

a 15 million pound scheme to transform the site has recently been announced after it had been empty for the last 15 years. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. the events are going to unfold throughout the week quickly with regard to emerging markets. battering the currency suffered in august. today, the release of turkish inflation data and the announcement of a new fiscal plan from argentina. brazil's top electoral court a prisoner from running in the election. he can appeal that particular decision. morning, our emerging

market rout. -- wrap. risks are rising in terms of what's going to happen this week. would be foolhardy to say the worst is over for em currencies? >> we saw a bit of a downswing today locally in argentina. simpleems to have been if you look at the market action this morning. all the emerging market currencies starting today, the focus will be the lira with inflation data. the central bank has not moved decisively and fasteners to curb inflation. the turkish lira will remain at the deficiency. africa's rand another vulnerable they ares --

vulnerable to capital outflow. much of this selloff is due to the difference between the global negative, i.e. trade war's and the fed, and how much of it is to do with the idiosyncrasies of individual markets, which is deficits, ease?is about fiscal those are the domestic issues versus the global issues. must i differentiate? i must, surely. week, au look at last lot of the moves were due to local idiosyncrasies like argentina or turkey. if you look at currencies like the south african rand, the worst performing emerging market currency in august after the lira, that is even after a alsot last week saying --

the global backdrop of the trade wars and obviously the rising inflation. a lot of that is driving the dynamics. there are also political uncertainties around land reform, mining regulation, investment, and economic data. it is hard to quantify how much of it is the local doctor. -- backdrop. is weighing on the currencies. manus: thank you very much. in capetown, robert brand. the chief international economist at ing is still with us. we just listened to the rollcall of what is going to happen. fiscal details from argentina. inflation is going to be about call.

-- a battle call. this all comes down to central-bank ability to act. this is about the dollar as well. just how bad is it in your estimation? are they idiosyncratic risks, or are we seeing a rising group of risks? >> if you look at the countries involved, it is broadening. have turkish inflation numbers, the argentina fiscal situation, also the russia probe into the likes of google and facebook testifying. soft pmi numbers from the likes of india, china as well. there does seem to be concerned about the growth prospects in emerging markets given the policy changes that are going to need to be made. you contrast that with the u.s., which is doing astonishingly well, growing 4% in the second quarter.

we think it is going to grow 3.5% this quarter. this week we have the u.s. jobs report. wages picking up. the u.s. is continuing to tighten monetary policy. it is also a safe haven. that is going to keep the dollar supported. that goes very nicely to the chart. this is the correlation between emerging markets and the dollar. the kind of language you you are using in regards to the u.s. is a mighty strong dollar. if i take that as my lead, this correlation, it would suggest there could be more pain to calm in e.m.. >> i think that is where the risk does live. we have been looking to see if there is going to be action taken in argentina and if that center, wease in the may see shift in the outlook over the coming months.

at the moment it is difficult to see what is going to change the psychology of. markets are impatient. they are looking at the u.s., which is doing very well indeed. and that backdrop continues to support the u.s. dollar. manus: we will see what those job numbers give us on friday. you are the international economist at ing. now to nigeria the oil minister there. he expects opec to continue to curb oil production through 2019. 70's has risen to the high since the cartel an independent nations cut output to balance the market. minister spoke to bloomberg and said the outflow curves are likely to stay.

>> the momentum is still leaning towards that. -- we will seewe how the market plays out. if we find out everything is working well by december, definitely, what you're going to find is -- we struggle with that decision in june. if prices go up much worse certainly we will see reactions from president trump. you're probably going to see a loosening. so,rices go southwards -- russia is also wary. own -- tohas their some extent also.

how long we will keep this going , it is a balance between how well the buoyant prices make up for loss of volumes. >> what you expect to see from iranian output? there have been comment on the fact sanctions will -- but you are right -- but iran has been a very resilient country. european countries themselves are a lot more supportive. the primary position should be encouraging. >> what you say about venezuela? does it continue to decline? >> i think it will unfortunately continue to decline. there is a morality shoe.

there is a frictional environment and finances. >> you talked about price and that -- how that will determine whether or not output cuts are extended. what, for you, is a comfortable price for brent? 70's,ike the feel of mid $73, $74. i begin to get uncomfortable -- i do not know what is germanic about that number, but the -- dramatic about that number, but the pressure increases. much more below $65, i start to worry. >> as you look at the environment now, by the end of

2018, where do you predict the price? >> in the $70 range. was nigeria's oil minister, emmanuel kachikwu. we are talking to the chief international economist at ing. talk aboutg kachikwu the possibility of running the curves into 2019. i think it is early to make that call. do you? >> clearly there is the risk of slippage. when you talk about emerging-market problems you talk about fiscal strains as well. there is always going to be that key risk that we do see oil being pumped back more aggressively. manus: thank you very much. chief international economist at ing stays with the show. you can interact with the charts

shown by using the gtv function. you can browse recent charts featured on bloomberg tv, catch up on analysis throughout the show from australia to hong kong to europe. coming up, italy on the defense. the finance minister says the nations yield spread will now once the details of its budget are unveiled. plus, state street global advisors, global cio joins the team at 10:00 a.m. state street survey is looking shaky. this is bloomberg. ♪

manus: juliette saly standing by with your business flash. jd.com's billionaire

founder has been arrested for sexual misconduct during a business trip to the united states. the minneapolis police department said authorities decided not to hold him a in custody and have not impose travel restrictions on the executive well conducting their investigation. representatives were not responding to requests for comment today. ford may cut up to 22,000 jobs in stop producing models as it tries to revive its european business. according to the u.k.'s sunday times, the carmaker lost 73 million pounds in europe between april and june, hurt by declining diesel sales and weak offerings. for faces additional uncertainty from brexit, which could lead to tariffs on cars traded between britain and continental europe. group, embattled hna which has managed to reduce one

of the company's biggest debt piles, will probably need to slim down further before regaining the trust of investors. debtonglomerate's total fell 9.5% to $79 billion at the end of june. according to public data stretching back to 2005, it is the first time the number has fallen. named itshartered has global head of commercial banking. he will continue to be based in singapore and report to the ceo. he joined the bank in 2001 overseeing product development, followed by e-commerce strategy. that is your bloomberg business flash. manus: thank you very much. hasitalian finance minister -- is heading back over charges budget talks could go off the rails. he said the widening spreads will narrow once the details are

unveiled over the next month. fitch took aim at the country, lowering its outlook. the chief international economist at ing is still with us. has italy the capacity to give us the next european crisis? i ask because i look at the spread over spain, i put it in the library for anyone who wants is nowit, the market pricing italy over spain at the height of the debt crisis. james, hastance, italy got the capacity to light the torch paper of the next crisis? >> is possible. i think there is a lot to play for here. the italian situation is in flux. have the budget coming up. the problem is, for the coalition, it is matching up

expectations of supporters and what the eu is likely to tolerate. and what is achievable. youink that challenge -- have the lingering uncertainty of how long this could last. are people gearing up for another election for next year? if that is the case, the prospect of clarity is looking remote. that is going to keep spreads wide. you also have to remember italy is growing. it has been doing the right things, getting the deficit lower. to call that it will be the source of a new crisis is premature at this point. manus: you refer to growth. i saw an article recently with regard to growth in italy is nowhere near it was before the crisis. if i look at italian output, it is still below the 2007 level. it is improving, but it is not improving at the same pace as

italy -- excuse me, as ireland, as spain, as portugal. it is stagnating. >> if you go back 20 years it is 73% larger than it was. clearly there are problems there. toexpect to see more trying -- the growth story. that is not happening. we see the coalition continuing to debate tax reforms were changes. the income changes as well. i think until we get clarity, the market worries about where italy is heading. as you say, the growth story is not particularly their. it is going to be continuing to battle out with the u.k. to see who is going to be the worst-performing economy in europe. mantle ast is the well as the banana skin.

almost channeling margaret thatcher in that the ecb will not be returning. any thoughts about italy being a special real economy politics needed, but that ecb should not delay its rate hikes, and this is the story actually 2019, and actually for the bond markets of 2019 in terms of the acceleration, perhaps, from the ecb in's propensity for rate hikes? bewe have seen the ecb steadfast in its opposition to helping italy out. in terms of the policy timing it is going to be gradual. nothing happening this year. last week's inflation numbers also argued against swifter action. italy continuing to linger, continuing to be a concern. i think the hard-line attitude could moderate. manus: thank you so much.

james knightley, chief international economist at ing. the vice president of a european investment bank, all things europe, and the former prime minister of finland on bloomberg. ♪ ♪

a us in: good morning. daybreak: europe. decades of abuse. the u.s. president will skip two key agent summit this is year as he slams canada over trade talks. china data weakens. starling slippage. u.k. set the tone. and the turkish lira compounding losses. the data due in an hour in istanbul. what next after an awful august?

manus: welcome to daybreak: europe. rising trade tensions an additional tariff bans on another $200 billion from the united states into china. what will they do? sterling is lower. that's about the only reprieve that you're going to get this that particular market. sterling by a quarter of 1% that's in the back of teresa may. sterling dime getting a little bit of the better bit. paris is off by 30 pips. you are seeing this rising level of discontent on the global trade perspective. the biggest losing trade it's going to be the aussie dollar and the wan.

we'll see how italy opens up later on. so you are in damage after fitch moved on their ratings. you're getting the reports coming back. go to dnyb gold. italy defensive as rich in. italy tops our agenda. italy is not -- is not going to light the torch paper of the next level of risk. the m live team says keep an eye 3%.aper trading above the that's the torch paper of risk in terms of the mark. do we have a little bit of bonds left? a little bit of bond mark. and you're going to see a little bit of flow and go. you're going to see the renan sans of supply, $16 billion euros of bond pape >> he come to the market. so that's going to be a little bit of supply heavyness coming across the mark.

look at the b.t.p.'s. the battle royal between the ratings and the rhetoric which is coming from italy. let me tell you about the daybreak. the italian finance minister hitting back. they could breach the 3% of the g.d.p. pread will narrow once the details are on there. so you're having this rhetoric build-up by 29 pips. on the u.s. treasury you are coming in a little bit lighter. but my favorite story is that copper hedge it is labor day and if you are having a martini, happy labor day. the hedge funds are dying by 25%. capitulated. bers the ability to get above 3% is

going to be pretty darn hard. those are your main markets. juliette has your market flash from the studio. julia? julia: donald trump will skip two major summits in november, a move that could stoke concerns about america's able as a counterway to china. president mike pence will go to papuammit before going to new guinea. xi xi ping attend by and vladimir putin. british lawmakers prepare to work this week. for may, her proposed agreement was attacked by michelle ban iard.

corbin continues to be dubbed by the accusation that he is anti-se met eck. china welcomes african leaders to beijing amid criticism that the development plans risk ettling companies with debt. he's keynote speech gives him a chance to defend it. he's he expects corporation and consultation. a fire has engulfed the national museum in rio de janeiro. e blaze started about 8:00 local time. michelle temed tweeted that it was a sad day for all brazilian. they are powered by more than 720 analysts and journalists. you can find all the stories at top go.

when you look at the world map function across asia and china coming out of pressure ahead of the impossession. the later in the week. and you're basically saying mining and text dot on the overall hang sang index. australia closing marginally. and japan's market closing out the session weaker by around .7. a lot of focus is on currentlies rather than equity markets as we have a lot having in the space. we're seeing in indonesia record low els. that's how the g.d.p. has been. u.p.s. saying that the aussie and the wineries will get hit with tariffs. they got hit on weak retail sales and then of course, with

your watching this weakness continuing to fall to levels we haven't seen since the asian financial crisis. all of that on the back of that strong dollar and these jeters that are you are seeing in currency manus. manus: this company. funding circle is going for an appeal. the destination is london. following in quick succession from last week. so this is the funding -- why did we take that off? because that is a thumbs -- that we're talking about. and it's connecting small, media enterprises. it's facilitated 5 billion and of lone from 80,000 investors. they agreed to buy and finance

some u.s. lones owned by bank of new york. his is ahead of the london funding circle origination. so just in terms of the other headlines that we are getting through on funding circle, what they hope to achieve. the company is 8 years old. the speculation is the valuation can be 1.9 billion. and again, it really is going to test the appetite for europe's syntek business. so the funding circle is considering that. the registration document comes through this morning cracking on news flow. 1.65 billion pints. now, it's going to be a big week as if we don't have big weeks on trade. but this week is particularly critical. you have the public consultation

period. and then you have it 200 billion dollars of chinese imports. president trump may order new duties. meanwhile slump has endured .ecades of abuse by canada this joining me know is daniellea thank you for joining us. how much of a dislocation would it for a $200,000 to receive tariffs versus the threat to pull out a w.t.o. which is a bigger risk. >> clearly pulling out of w.t.o. is the biggest risk. i think it's almost a given. the way trump negotiates, it will have to push the demands to

completely unreasonable territory. i don't think we've seen that yet. the extra $200 billion on tariffs will hurry but will not really push anybody into global recession. the way trump is negotiating this in three different regions at the same time he needs to have the counter parts about what he's really willing to do before they can settle on the turns he really wants. so i'm afraid we are likely to see more down side of company activity. >> our editor in chief wrote a cracking piece, john mcavoy. it was trump doubling it. some of it was regards to the personality. some of it was the market in the ent thater had united states in america. does he do well?

he really is a bilateralist man. is that true. >> yes, but -- his stradgey involved creating confusion on what his goal really is. those in terms of area of interest. a bilateralettle in places. it's not unusual for him to have multiple areas of conflict so that nobody really knows exactly what he wants. at the same time, he wants to rnt i can and we can only do that if they get roiks contributions from asia. otherwise it would not make a difference to g.d.p. which ultimately is what he cares about? >> the value of the stock market is also what he cares about as well. what i did was i created this --

it's in the library. this is consumer confidence at the highest level since 2000. that remains absolutely sbreveraged. that many remains absolutely averaged. what is going to be seen next year? >> i think it's very high risk, although it very much depends on will they be willing to target. greater confusion on trump and trade should push the fed to be more dogish. that will mean that he wins it all. he still has global gross, he will have a better terms of trade and -- however, if the feds began

like history cons to show, maybe 125 basis point beyond what we have. we'll material le increase the -- recession.. re it's what consensus is right now. he risks from the fed. rafaela. thank you for the united states. coming up on the show, this is what we've got for you. turkey inflation is due tonight. will there be a a reality check after an awful august. 8:30 u.k. time. this is bloomberg.

♪ manus: it's daybreak europe. 10:17 in downtown dubai. what a beautiful, beautiful start to september and westminster. would it be as calm inside? her own party, she can't corral them. they're like cats in a bag.

.3 of 1%. the challenges are mighty against her checkers proposal. sterling on the dime side, 129-14. julia is standing by. good morning. > hi, manus, j.d..com has been arrested for sexual misconduct during a business trip to the united states. they decided not to hold lu into custody and having imposed a travel restriction. representative weren't responding for request for comment today. -- try to revive the business. the second u.s. carmaker lost 73 million pounds in europe hurry sales.ining diesel

ford faces additional brexits which could lead to tariffs on parts. they have managed to reduce one of the country's biggest pile will probably need to slim down even further before getting the investors. .hey fell 9 1/2% to $80 it is the first time the number has fallen. data charted has named him as the global head of commercial banking. hey'll continue to report in cooper. she joined the bank in 2001 and product development the cash development followed by an e-commerce strategy.

but the north american box office has led for a third week in a row. it makes the labor day weekend one of the strongest in years. said they spent a lot of money. $111 million in total in singapore. that is your bloomberg business flash. >> i just love the tight ofle that movie. t make me smile. , they will be on our front lines. we've got the inflation data due very, very shortly. o argentina. donna is our bloomberg emerging markets team leader.

she's here on sight. tan kona was my guest host and this founder of donna economics. so it's what i would call a reality check. this is going to be a pretty staggering inflation number, isn't it? >> absolutely. this is going to be a very important number. this is right after we saw the lira fall about 25% in august. so the impact is going to be huge. some -- some economists see it as high as 19%. of course, the media average is about 17.6. but even that, that is quite significant. we have already seen the lira reacting. last i checked it was down more than 2%. there is obviously some nervousness over this. >> so let me bring it to you, raffaella. the argentinean raised rates to

60%. that so rrency to do . m waiting for this on the two the same thing. how big a risk in the world is emerging rocket risk right now? >> we're likely to see deappreciation of the young cup sis. not only because of extreme situations where they refuse to raise rates but more because the global business cycle is going down. the fed is tightening. and there will be an outflow. in addition to that it's quite concerning that the u.s. stands on russia and turkey on sanctions has been extremely aggressive. you're likely to see further meaningful debreerks potential significant in the whole region.

unfortunately, the situation remains very, very difficult. >> that remains difficult. i reated -- but i got this imagine live. this is correlation between dollar and emerging rockets. this is a very viralent correlation. do you. >> yes, unfortunately, i mean, there is a sort of a lining. which food especially on thrift. quite pivetafment which at this stage is the most important factor for the lira and generally for their performance. we have seen signs of improvement over the last few weeks. but in general, unfortunately. for them.o be rafael is trying to look for the

silver lining in this -- to argentina. this is about macri. i was putting action where his reck rect is. there's global confidence. he's got to put the hard work. doesn't he? >> that's absolutely right. there was hope that he was going to furn things around. and now there is. the 60% u can tell interest rate was just to show that they are very serious about changing, you know, this situation on the ground. but, i mean, it's -- it's really meant to be a sign that they are willing to do the necessary things in order to put back on tract. so to you, first of ull, they can have a look at this. under siege. this is the are peer.

and look the bite. >> anybody that keeps saying to me, does this. this isn't 995. i'm becoming a little bit mistrusting. what's the market for her. do you brief in terms. >> this is really -- i mean, it's not -- it's not just rapier. we have so many indications in asia that there's a lot of pain in the currency market. but it's not necessarily the impact. that's really the key, the dollar is absolutely king. >> king dollar is my pain trade. >> a yella. argentinean situation. i look at the rapir. i'm waiting for them.

is there anything that would make the fed reassert himself as the global center banker of risk aversion. >> it would once the data starts to show it which unfortunately is unbelieve likely to happen. so i dothe doubt you can turn around the fed any time. >> ok. >> the fed would not be surning. >> the global level is perhaps something that we need to look at again. could bit that america comes first. my thanks to our guest. affaella tanconi and chief and dana with an emerging market add up right here in dubai. that's the it. we'll lev you with a quick snapshot of the market. you're looking at london. slightly better bids. the rest of your pin market are

just a little bit off on trade tensions. if you're traveling to work live on your mobile device. this is bloomberg.

>> good morning. we're live from the european headquarters. i'm anna edwards. us johnson is in zurich today. gus: good morning, allie, yes. steps stepping up in hong kong. i'm in zurich preparing bloomberg's coverage of the 10-year anniversary of the failure of the lehman brothers. the markets' open 30 minutes away. en allie: decades o