anna: good morning from bloomberg's european headquarters. i am anna edwards. manus: i am manus cranny live from -- this is bloomberg. europe. these are today's top stories. anna: asian stocks had toward a one year low. how much further that he m woes have to go. the yen's the four-day losing streak on the dollar weakened amid concern that trouble of -- impose additional tariffs on china. sterling faults on the threat to go hard on russia over the poisoning. it is bouncing back as the u.k. in germany are set to drop a key

brexit demand. ♪ anna: this is "bloomberg daybreak: europe." we have got the sector inference in focus. revenue, they are delivering about 1100 engines in 2018 for defense. they are raising the 2018 organic revenue growth to 7% or 9%. a fairlyo be substantial organic revenue growth upgrade. free cash flow above 50% adjusted recurring operating income. they are giving us this upgrade to guidance. they are factoring in the zodiac.

for revenue, recuperating operating income, and castle excluding the zodiac contribution -- excluding the zodiac contribution. that the same to be a fairly positive story from saffron over in france. safran over inference. -- over in france. 6/10 or so. some other ratings of emerging markets showing very close to a bear market. will trump impose the tariffs on china? we stand on the brink of the white house proposing further tariffs on china. the dollar positive story, it positive, weyen talk about that shortly. story --the number 1.2913.

we see some down drop. selling and emerging markets was not enough. this is the bloomberg galaxy index. we do see some reporting that suggests that goldman sachs is set to delay setting up a trading deficit on crypto's. exactly they want to set up as well and what it is a want to counter. from -- we will spend the -- 90 minutes talking about emerging markets. we put the numbers in context. 250 -- hundred 55 days. i am talking about brazil, argentina, and turkey, and south africa. you thought they died and gone to heaven. but they are back. those are the benchmarks of risks. they were alive during the debt

crisis. 40%, brazil unscathed at 18%, south africa moderately higher. what you want to do is look for the silver lining. you're seeing two of these markets have exceptional moves dying yesterday. brazil and argentina. some africa, we have seen cracking articles written. the currency is getting heavily pounded because there is liquidity in the south africa rounds and the ability to trade that is higher. if you're looking for any away and prism to look at the market it is over bricks and it all comes down to cdf. the are back, they are hot, and tallying their own story again. anna: we will talk more about the banks and other definitions of emerging-market pain. fairly mixedicture actually, we saw the nasdaq very much in focus yesterday.

u.s. tech following yesterday. they were on capitol hill. we have also seen a couple of houses now turning tail on u.s. equities a little bit. citigroup talking about sentiment's adjusting we could have a pullback coming for u.s. goldman sachs, talking about the indicator being alarmingly high. more on that as we go through the program. lets coming up and programming during daybreak and further beyond into other european programming later on today. host of exclusive interviews coming. today's brexit show we will be speaking to the former u.k. prime minister tony blair and tensions -- while tensions between the u.s. and russia heat up we speak to my cows are done of --

juliette: u.s. president donald trump has demanded that the new york times reveal the identity of a senior official who wrote an anonymous article. he or she or others in --ernment the root of the problem is the president's immorality. >> when i won they were forced to apologize to their subscribers. they wrote a letter of apology. the first time anybody has ever done it. the covered the election incorrectly. if the feeling new york times has an anonymous editorial, can you believe it? anonymous. a gutless editorial. juliette: contagion growing louder. jpmorgan and blackrock are amongst the big wall street

names added -- adding their voices to those pushing developing economy assets. the argentine peso, turkish, and indian rupee are among those sinking to record lows and's recent days -- in recent days. the british government has abandoned key brexit demands striking a deal with the european union. limit has learned that they are economy andept trade talks with the eu to get a divorce tilde. for a morede settled big statement postponing some decisions until after brexit day. in japan, a powerful earthquake rocks the country's northernmost island. the 6.7 tremor triggered landslides that crushed home and knocked out power and forced a nuclear power plant to switch to

a backup generator. at least two people have been confirmed dead. global news, 24 hours a day, on-air and at 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 rising emerging markets show you sense -- look for the silver lightning -- lining. this has investors and strategists from like rock to jpmorgan using one single word, contagion. joining me now, jane foley, senior currency analyst for rabobank. let's take it to our other guests first. what similarities do you see between the selloff not and the dot-com bubble? here.at to be back

there is a lot of similarities between the current selloff and the dot-com bubble. relational the one that is happening right now. you had a two-year rally happening driven by technology shares. and then you had a peak in january, a little bit of a wobble. the market rebounds and everybody talks about about this being a mini correction in a long rally and everything will sort itself out. in april, a true selloff starts in the market. this is what happened in the bust.e bus --.com expectations over technology company earnings are being the light and people are

,eassessing technology stocks are they really valid, that is what is probably making the two. it's -- periods move together. anna: we will come back to you on this. we carry on selling em stocks through 2021. let's talk to jane about emerging-market currencies. thank you for coming in, as always. brazil, argentina, turkey, south light, do you see any pause in the selling ahead? >> not yet. it is important to focus too much on the most vulnerable currencies area we see argentina, turkey, come under heavy selling of the last month or so. we see a fair amount of common , but therementary

are other concerns. this has started really in a big way in the spring around april or so and it was not because of turkey or argentina. there is perhaps a couple of other concerns. some countries are related to the federal reserve starting to hike interest -- interest rates, the fact that the market expects more from the fed. indonesia certainly pops into my mind. it is a very exposed -- very exposed to high level denominated debt. perhaps the ratio of dollar denominated debt compared to fx reserves is not what the market wants it to be. them exposed to the fed's interest rate hikes and then you have trade wars as well. manus: good morning to you. in terms of where trying to put i have around this, what

done as i have looked at the volatility between developed markets, fx and emerging markets, this prison is widening. in terms of sitting on a desk, is this what you are seeing? are you seeing expanded float and fall? thin oratility, are the undertreated? -- ofjust came out of the september so we cannot imagine that we will get a break and volumes coming into this month. certainly doing parts of the summit, i would stress that this selloff is not something that whenstarted when the news, word of contagion started to be applied to turkey which was about a month ago. a system and that has been going on a little bit longer and i really would stress that this is why i think that the market became much more bullish in the dollar.

because ofd march, the strain and emerging markets then. this is not particularly new. i would imagine that into september we will see more volumes. anna: when we are looking for close where emerging markets go next, clearly the dollar is a big factor in all of this. increasingly, you are pointing being yuan is being -- as the one for emerging markets. we are showing three different correlations between stocks, fx, and local currency bonds. the selloff began in january and that was very close to when trump said he was going to go after china. turkey come argentina may be said shows but they are not really important. what is important is china and the trade war. there we see that the correlation between the yuan and the em stock bonds in currencies on the other is it -- at a

record high. that makes us think that we should be watching out for the yuan which is going to price in any improvement of deterioration in the trade war scenario. that is going to change the risk assessment for emerging markets as a whole. that is where we should be forking on, really. -- focusing on really. manus: thank you. coming up on the show, this is what we got. just what russia is prepared to couldut u.s. sanctions, trigger our market failure? mikhailfinancial ceo joins us. this is bloomberg. ♪

anna: good morning everybody. the dollar against the yen, we are seeing a little bit more appetite for the yen not the dollar as was the emerging markets little this morning. that is interesting in the context of where contagion goes. this year from juliette saly with the business flash. twitter ceo has

been grow by congress on what republicans call the shadow banning of conservative voices. jack dorsey says it is dangerous to ask the platform to regulate opinions or be the arbiter of truth, adding he would rather be judged by impartiality then be criticized -- and the criticized. other conservatives have complained that social media is biased against right-wing opinions. >> i will survey making something very clear. we do not consider political forpoints, perspectives, party affiliation in any of our policies or decisions. period. impartiality is our getting risible. juliette: americans -- american express well after the fbi began investigating practices at the organization. the wall street journal says the inquiry began last month looking at whether consumers were misled thought to gain more

businesses as amex . bloomberg has learned that his job is now at risk because company directives are presenting elliott management were impatient with his lack of progress in turning around. a representative replied to,. -- declined to comment. removed on will be september the 24th. it will be reporters i wirecard -- by wirecard. that was your bloomberg business flash. manus: thank you very much. to russian now, it is ready to take the emerging's see step -- the emergency step on the new

wave of u.s. inches threatening to up in the market. nejra cehic joins us from moscow. how prepared is the finance ministry for the worst-case scenario? when i put this question, is that on the scale from zero to 10, how would you rate your preparedness? he gave me a clear 10. we are looking ahead to the possibility of a worst-case sanctions which would be sanctions on new sovereign debt but also sanctions that affect state banks. in terms of the new sovereign debt the fears about the have already pushed wrubel on deal tire and sent the ruble itself weaker. you think foreign holdings of the ruble bonds decrease as well. i did ask in an extra scenario you could see the bank intervened, it would be a possibility so that was one thing in terms of the ruble

bonds but then when i asked him as well will could be the fallout from anything shows that affect state banks, said there could be significant damage. >> in this environment we are very likely to see other china, etc., euro willing to shift away from u.s. dollars denomination of trade because of the vital this of the exports. we are very likely to see the shift intensifying. that just showcases that we are of internalthe line sanctions, very likely at the line. it is likely to ricochet to u.s. interests and u.s. ally

interests. they are a big part of the global economy. it is very hard to isolate a. -- isolated. reporter: in the event there were sanctions on russian state -- he said they are not limiting capital flows. anna: how concerned was he about ruble weakness? tell us the latest thinking there in moscow. reporter: he was actually fairly sanguine about where the ruble is at the moment. he would not commit himself to any levels. i asked him how much of the weakness he actually thought was down to external factors. sanctions, one of those but also the general em selloff we are seeing. right,t of all, you are

it should be in the context of what happens in em. the ruble is not the worst-performing. it is somewhere in the middle. that russia is of -- itt in terms should bring about confidence that any significant volatility on the fix market will be easily dealt with by monetary and fiscal authorities. reporter: what investors were just looking at russia and russia fundamentals and ignoring the em selloff elsewhere? where should the ruble be trading at? , wes a was saying the ruble cannot talk about levels, but if we would think that they get the

outflow that has happened over the last half year because of sanctions, risks, etc., we will not have materialized, in the ruble would be stronger by five percent to 10%. it is the fifth one -- worst-performing currency. anna: thank you. later this morning we will have any clue -- exclusive interview with russia's economy minister. a lot more to come from nejra cehic and the team in moscow. russia not sure him when -- whether the ruble should trade. a lot depends on the interest rate. reporter: clear that there will be more sanctions. the interests are quite interesting. have seen a push up in inflation. over the summer, food prices

were not too infected by the inflation. the ruble has decline significantly this year but the has not pushed into food prices. that gives the central banks a little bit of reprieve but it has anticipated that inflation will rise further that will cut into people's disposable income. ahead,ook into the month we have got to say that despite , they do have an extremely credible central bank. that theomething international -- international press it is difficult to see the ruble rally significantly. the central bank and the emerging markets defending their currencies. jim foley stays with us. more to come.

up next, we are live in stockholm. the bank is due to announce its policy decision later this morning. we have an inflection point ahead of the election.

anna: good morning. mrs. "bloomberg daybreak: europe." -- this is "bloomberg daybreak: europe." we got a monetary announcement from sweden's bank. we go to stockholm for the -- for that. manus: we have just been to russia but of course the central bank governor speaks as the imf in washington just hiked. should we just hold the line? anna: today the trump administration's deadline for public comment on terror of sunshine a, we have the reports that suggested that trump will

apply tariffs to this $200 on chinese imports. we will see what we get later on today after the play. let's look at what is going in the markets are now. definitely seeing that emerging-market woes weigh on investors so far this morning. we do have modest gains in indonesia and malaysia but for the most part the asia-pacific index is actually headed toward a one year low. china down with an half a percent and naturally a down more than 1%. hong kong also down today headed toward a one year low. japan down 3/10 of a percent. there was a power outage there after the earthquake. i also want to zoom into the charts and stir you an index that investors were definitely keeping their eye on. the msci emerging market index. just 30 minutes ago it surpassed 20% declines from this january high making it firmly in the

bear market territory. investors will be looking whether it ends the day here after a six consecutive day of decline. with the dollar strengthening today, it is likely that it will hold up on those losses. i also want to switch gears to mental here. here.al silver has fallen two times in gold has here. it is now at its highest since 2008. typically this is a signal for silver that it will rally. it has happened in the past. it is making it very difficult and a signal to has become concerns over global growth, demand for this metal is weighing and indeed silver is falling today. manus: thank you very much for that. the very latest on the charts to watch. this get you the first world news with juliette saly. emerging-market

contagion warnings are growing and stocksurrencies from argentina to indonesia come under increasing pressure. jpmorgan and blackrock are amongst the big wall street names adding their voices to those cautioning against developing economy assets. that is as em currencies go to their we get -- weakest level since may with the argentine peso, turkish lira, and indian rupee among those sinking to record lows in recent days. aviation authority is stepping up to ensure the airlines and aerospace companies can carry on functioning in the event of a no deal brexit. the regulator has breached government officials on its plan to recruit staff with the expertise to take over the certification. should this cause britain to leave the safety agency which is currently responsible for such a crook -- such approval.

he called on the u.s. to take steps that acknowledge -- 12 knowledge measures he has already taken to sustain weapons testing according to south korean officials speaking after a meeting in pyongyang. the two sides also agreed to hold a summit between president moon and kim jong-un from the 18th to the 20th of this month. cryptocurrencies have dropped sharply for the second time in sinkingn 24 hours, toward a nine-month low amid concern that broader adoption of digital assets will take longer than some anticipated. digital board to count on the base to drive up prices have been dealt a string of disappointments. goldman sachs has reportedly pulled back on plans to set up a crypto training desk while shape shift will begin asking users for personal information.

global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. manus: think you very much. very much.ou donald trump says we may find out in a matter of days. the threat of new u.s. tariffs on chinese imports looms large. this comes as signs are that emerging-market -- the president's trade wars are not positive for anybody, that even the united states of america. just look at the deficits. jodi schneider is there for us. the latest trade numbers really do make for perhaps a very interesting reading especially in regard to the eu and china. it is not going to plan, is it? >> the numbers were pretty bad. they basically showed that the u.s. had the largest or the intest-growing trade deficit

three years. records withthly both the eu and china. this is not what president trump and his administration wanted. to have been looking at reducing the trade deficit, that is part of the goal of the tariff. anna: we wait to see whether the trump administration opposes further tariffs on chinese imports. how is each side positioned there as we reach the end of the public comment. around the tariffs? see this as soon as another day or so. trump has said that 200 billion figure could be as much as that. we may not see that all take effect at once. the u.s. may be coming out with a list of items and they may be giving it some time to try to talk to china. but china has said it will retaliate.

expectg the u.s. does we a pretty quick announcement back from china about what they will do. this increases the tension further. last week president trump said it was not the right time to talk to china about trade. manus: the timing is everything. the time might come perhaps after the midterms. what has president trump's response been to all the attention in the new york times op-ed about his administration in terms of potentially, a bit of a backlash against trump? >> this has been the talk of washington. a day earlier, the talk of washington was about woodward's book showing disarray in the white house. president trump has come out saying the times needs to unmask to reveal who the anonymous sources. says,t person exists he

with thing that members of his inner circle are trying to sort -- for his administration or plotting against him which was the point. he is really coming out and saying i do not believe it and show yourself your gutless. -- you are gutless. this comes a day after the op-ed. saying the president was in it and there was really continued disarray in the white house. the president has come out against that book as well. anna: a fascinating read. all of the reporting around it is fascinating as well. thank you jodi schneider joining us there from hong kong. let's dive into jane foley's

thoughts. where do we had on the dollar and could the jobs report be crucial here because if the jobs market is really tight, and expectations for a hike remain in place, does that further strengthened the dollar? >> i think it does. perhaps what is more important is what the fed will do into 2019. for the time being the dynamics that we have had are very much in place. this is a dollar growth story in the u.s. we have got the fed expected to hike interest rates again. that is a dollar positive story. that pressure that the hike of the dollar funding, actually many emerging-market currencies and other em currencies are looking to china fearing the slow drown -- slow down and growth there. ifld be more vulnerable chinese growth continues to

slow. the dollar store is really part of the same. manus: have a look at some positions in the gcb library. we are reflecting back at the 60 month high. august, 16 months hike, it is where we are seeing the position on the dollar. are you a buyer of dollar and if so, a buyer of dollar against which main cross to give you the best return on any debt? bit onave been a little alone, probably still on that loan, the dollar rally has got further to the -- further to go. if we get to the middle of next imminent, itd be is perhaps a different dynamic for the dollar. also, in 2019, we really have to

address the question of whether or not the emerging markets selloff is going to undermine growth in the u.s.. impact fed policies, etc.. those questions are very relevant and will be very relevant at the start of 2019. right now, the story we got is one of growth in the u.s. and interest-rate hikes and one emerging markets for several reasons. that i think means of the dollar can get further. i would be a buyer. a big selection, the dollar is one of the best performing currencies this year. i think by now -- anna: that looks like the biggest question for markets at the moment. will the crisis caused the fed to paths -- to pause. deficits, the latest trade deficit data suggests the gap with china seems to be record for the u.s. as a whole.

that wentinue to see were talking about at the beginning of the program, dollar strength and yuan weakness, is that is a surly improve -- necessarily improve the deficit? -- trying him talking to push against that. you have an economy in the u.s. which is doing well with tax cuts last year. if you have an economy that is doing actually well it tends to suck and imports. there is also the possibility that some u.s. corporate's were stockpiling on chinese goods before the tariffs. that could have potentially impacted the trade deficit. it will take a while to know that is a factor. manus: thank you. of fx strategy -- jane foley, head of fx energy for rabobank.

the announcement is largely overshadowed by the general election which is set to take place this weekend. you have a rise of nationalist posing a fresh risk. let's get a little bit more with -- andnomics reporter government reporter. what can we expect from riksbank? >> riksbank has not raise rates in the past seven years and they have not change that and probably will not raise interest rates. , is that ofnge raising rates in december they may delay the rate increase further. anna: we will look for the signaling around future rates. the board has been split lately. what can we expect this time?

paulson, one of the ball -- board members, has been wanting to raise rates since february. he says inflation is on target and it is time for the riksbank to move toward normalizing policy. their interest rate is on minus 0.5% still. half of the board seems like they may want to wait a bit longer. analysts think. they want to raise rates in december, then there could be reservation from someone who wants to wait longer. underlying inflation especially. the bigan i ask you,

event that will dominate the agenda is the election over the weekend. does that literally mean that the riksbank has been tied for a. period of time? may make it more reasonable for the riksbank. it may lead to slightly higher as they strengthen in a way that riksbank expected at the last meeting. the election probably will not affect the economy so much because regardless of whether we or us government or not, the election or not, the expectation is not that it will have a big effect on the economy. manus: thank you so much,

amanda. our economics and government reporter covering that riksbank decision. we have a little bit of breaking news on the swiss economy. year on year, 3.4% for the swiss economy, in the second quarter, was actually 2.4% that will certainly be taken well in terms of the overall growth story. jane foley is ahead of rabobank. they haven't moved rates and seven years. you had amanda saying with the possibilities were. is there a run for the swedish krona, what message does riksbank need to deliver? >> they do go into this meeting with a pretty weak krona.

that is something that should push them in favor of an interest rate hike this year. they haven't outward speaking -- they have an outward speaking bank. they are very candid. have indicated they will be hiking interest rates by the end of the year but the market is extremely skeptical. there is not much of the year left. to see whether or not they will hike, the fact that the swedish krona is so weak is something we can argue in favor of the hike. i am still reasonably optimistic that we will get that hike but i think today's message is -- can really make or break that perception. anna: thank you very much jingle, head of fx strategy for rabobank. they are said to have dropped some key brexit demands in britain. could a deal the insight -- be in sight?

-- we arerom the eu joined for next lose of us plenty ofnging coverage. this is bloomberg. ♪

manus: another day, another set of headlines. turkey day in the italian press. this time from the leak and five-star artists -- government is heading toward a 30 billion euro

budget adjustment. these are press reports, of course, salvini has been trying to step back his rhetoric. the italian finance minister saying this morning that he would accept a 1.5% deficit in 2019. different messages or is it all just role-playing? that is the question. juliette saly, she has her business flash. -- your business flash. juliette: twitter's ceo has been grow by chris on what republicans call the shadow banning of conservative voices. it is considered dangerous to ask his platform to regulate opinions or the arbiter of truth. impartial --er be guided by an partiality.

-- by impartiality. citigroup will reportedly announce a restructuring of its investment backing -- banking operation today. it will combine its corporate and investment bank with its carpet oh market -- capital market business. it will be cohead it by the global head of capital markets origination. the head of its corporate and investment bank sees a decline -- declined to comment to business insider. germany's second guess lender will no longer be of member of the country's prime benchmark index. it will be removed from the dax on september 24 and be replaced by payment provider wirecard. commerzbank was a founding member of the dax since it's them shenzhen in 1988 -- it's inception in 1988. anna: juliette saly in singapore. now to brexit. a deal maybe insight.

they have abandoned key demands. sources tell bloomberg both countries are now ready to accept fewer commitments on you -- u.k. economic ties. dollar,d against the 1.2907. that is enormous by annual standards. basically what this report boils down to is instead of getting 100 on the future relationship, we will just get 10. a lot of things can be pushed into the future. long-termprovide any comfort for pound investors or does it push up questions? >> if they move ahead with the deal it is good news for sterling but that does not mean the rally that we would get would not be as significant as if we had all the details.

sterling will certainly be vulnerable to the details. a deal will be done, there will be a lot of uncertainty, selling can rally a little bit, but the gains will be fairly more interesting. says: if we are cap as you until we get that final ink on and aal, if we lead -- and i spoke to adam the other day and said you are all under assuming the downside economic risk, let's just go to a positive area, we get a deal, euro, what a- relief lovely -- rally look like? >> it very much depends on what the market does not -- it is something that resembles hard exit market. has to do with uncertainty.

generally speaking, currencies do not like uncertainty. certainly that we have -- it is probably a good thing. as we just said, it is likely that a lot of uncertainty will carry on until next year and that means that that potential for rally will be limited. anna: the euro, how much diet -- downside is there? >> the present whether there is contingent or the market decides there is exposure in banks. the dollar will see -- do better than the euro on the story. much -- thanks so you so much. will ask the former u.k. prime a nexus joining us for

of interview at 9:30 a.m. u.k. time. that is it for today. this is bloomberg. ♪ xfinity mobile is a new wireless network

designed to save you money. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you get xfinity mobile included with your xfinity internet. so you just pay for data -- by the gig or unlimited. saving you hundreds of dollars a year. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers.

"activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. manus: good morning, this is "bloomberg daybreak: europe." anna: these are today's top stories. manus: the bears are coming. asian stocks head towards a one year low as jpmorgan and blackrock worn, contagion. how much further do em woes have to go? losing snaps a four-day streak and the dollar weakens amid concern president trump will impose additional tariffs on china as soon as today. pound ping-pong.

sterling falls on theresa may's threats to go hard on russia over poisoning. it bounces back as the u.k. and germany are said to drop a key brexit demand. a warm welcome to riyadh. we are truly global a london and part of saudi arabia. the state of play on the equity markets, emerging markets are some would say in freefall. a little bit of a bounce in the currency market. not much in equity. london is called lower by 0.3%. you are seeing this pressure from emerging markets. very much a global perspective. are we at a contagion point? that's the question for markets. or is it isolated to banks?

a little bit of german data, i believe. anna: german manufacturing orders, this is weak. it is down month on month. just one month's worth of data. that is always the important context for this. the estimate was for an increase of 1.8%. it does look to be weaker than the market had been anticipating. sometimes we see data moving the euro. we are seeing a little bit of a move to the downside as a result of that. on corporate this morning, but guidance or mays unchanged. not worth -- remains unchanged. not worth worrying there. a sixth session down in the equity session. worrying as we go through the intercession. will we see the trump -- through the asia session. will we see trump impose tariffs? of threatened imposition

tariffs on $2 billion worth of chinese goods. we are looking at this weekend. some measures of emerging markets equities are threatening. the pound has been whipsawed by reporting around what germany and the u.k. get out of the exit negotiations at the withdrawal stage. kicking the can down the road. the bloomberg galaxy crypto index down another 6.8%. there has been fallout in the crypto sphere. goldman sachs said to be delaying setting up a trading desk around crypto. bitcoin, ripple in the rest on the back foot. and certainly when it comes to emerging markets, it's going to be the market focuses on. they were gone from the eye of the debt. they are back. we talk about argentina and the drop we saw as argentina and south africa -- does that set up

the stage for perhaps a rally? let's look at the bond market. jpmorgan, blackrock, they are all using it. where's the money flowing? we talked about yesterday. we have not seen the blowout in libor. you are seeing a very limited uptick in bunds. there is just a little bit of reprieve in some of the fx trades in the emerging markets. not so much the equity markets. they are careening towards a bear market. 240 days down for the equity market. bunds, likewise with the treasury market. let's get your first word news. juliette: u.s. president donald trump has demanded the new york times revealed the identity of a senior official who wrote an anonymous op-ed.

the writer identified only as a senior administration official said he or she and others in government have about to thwart the president's misguided impulses until he is out of office. it also said the root of the problem is the president immorality -- amorality. >> what i won they were forced to apologize to their subscribers. it was the first time anyone has ever done it. they cover the election correctly -- incorrectly. the failing new york times has an anonymous editorial, meaning a gutless editorial. juliette: the british and german governments have abandoned key brexit demands, potentially easing the path for the u.k. to strike a deal with the european union. berlin is ready to accept a less detailed agreement on london's economic and trade ties with the eu. they say the u.k. side is also willing to settle for a more vague statement of intent on the

future of their relationship. postponing some decisions until after brexit day. britain's civil aviation agency is stepping up efforts to ensure airlines and aerospace companies can continue functioning in the event of a no deal brexit. the regulator briefs government officials on its plans to recruit staff with the expertise to take over the certification split causeuld the britain to leave the european aviation safety agency. >> in japan a powerful earthquake rocks the country's northernmost island. the tremor triggered landslides that crushed homes, knocking out power and forcing a power plant is pitch -- to switch to a backup generator. a secretary said two people had dead.onfirmed north korea's leader said he is open to accepting stronger

denuclearization measures. he called on the u.s. to take steps that acknowledge measures he has already taken to suspend weapons testing. that is according to south korean officials speaking after a meeting in pyongyang. the two sides agree to hold a summit between president moon and kim jong-un on the 18th and 20th of this month. 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 . asian stocks heading towards a one year low. we are seeing weakness in the msci asia-pacific index. losing the longest streak since december. china under pressure, there is positivity coming through in e.m. we have seen higher. .ou have india tracking higher yes trillion market closing lower by 1.2%. raising variable interest rates at of the rba.

that is one to watch. the nikkei closing lower by 0.4%. in terms of stocks, it was all about the faangs on the u.s. market. tencent conclude -- continuing down. good buying in korean auto stocks as trump negotiated a trade deal with south korea. then we are talking about the earthquake in japan. the keio electric said homes were left without power. its share price is down 6.4% in tokyo. thank you very much. the latest on what's been going on in the markets. let's talk about emerging markets. the rout in e.m. shows few signs of abating. emerging-market currencies have hit their lowest levels in 16 months. it is a phenomenon that has investors and strategists from blackrock to jpmorgan using the word contagion. joining us now, the cio across

bridge capital. good to see you. that is the case around emerging markets. lots of people talking about, this is going to continue. i have a chart that perhaps suggests a different outcome, which is the manned rising for call options on the largest emerging market etf. this is one sign you could point to of something more positive for em. do you believe the call options or do you go with the strategists saying there is more weakness to come? >> two things are happening. the trade war with the u.s. and china. you have u.s. midterm elections. the second point, you look at the emerging-market chart and compare that to the euro stoxx 50, the market is still outperforming by 60%. what i am -- it is truet of because we have dollar strong.

a lot of these are happening at tech companies. of course, stocks have risen a lot. now they are falling. you are seeing that selloff. the emerging-market is a structural by construction -- consumption is coming from not in europe. we will see what happens in the u.s.. >> you have got to be brave. you have to put your hard hat on and say, i'm prepared to buy e.m.. marketsor for emerging joins anna and i earlier. he talked about the relationship between the yuan and emerging markets. that is the torch paper of recovery. would you agree or disagree that a recovery him across you want or strengthening -- i have yuan, aaround -- in the

turnaround in the yuan. aboutre is a lot sentiment also we have to bear in mind. there is a lot of story around it. unless what happens in the trade war, whichever way it goes, becomes clear, you will have markets which are not going to be very positive. let's not forget how the structure of the market has changed. last weekend we said even large-cap stocks are going to be sold in big numbers. the movement is going to be far more severe because you have all the is not fundamental traders. the market can be undervalued for longer than one would expect on a fundamental basis. course is a key there. anna: interesting you link the tech selloff and you say that is something we need to watch. where you think it has been oversold when you look around the emerging market space? india is a market we have talked

about in the past. even though the currency was weakening they have been doing well. does that change? at -- my profound question is, are we targeting the rupee dollar exchange or the repeat yuan exchange? that chart has been stable around 10. i do not think there is fundamental weakness in the currency. i think the growth is still robust. anna: is that the most important relationship for india? with china? >> china is becoming more important. i have a feeling rba is not looking at the you one. -- the yuan. big bite are making a of hoopla. is it brazil, argentina, and turkey and south africa?

these are the cbses. when you look at rb cbs, turkey up 30%, there was a turnaround in brazil and argentina yesterday. do you put much store or value on cbs's as a mechanic for making a call? >> i do. what i would like to characterize it is if you look at what percentage these particular countries are, i keep using that as a benchmark. these are very localized stories. the big weight in the emerging markets are china, india, south korea. these are smaller ones. these particular markets, you risk so much higher. say the problems we are seeing in turkey and brazil are fundamentally something wrong in their economy. it is not going to rub on emerging markets. look at what has happened in

emerging markets. they have managed to bring -- we sell that hassoft happened over the last 20 years. this is not 1997. anna: think you very much. the ceo across bridge capital stays with us. coming up, we will have further exclusive coverage from airline executives starting at 8:00 a.m. u.k. time. a company has just announced a partnership with singapore airlines. not all that usual for airlines to do partnership deals. we will talk to the jetblue airways ceo. this is bloomberg. ♪ ♪

manus: breaking news now from first rand, the second-largest bank in africa. and the largest by assets under management. earnings, 4.71 rand. the market was looking for 4.68. 26.4.djusted income, the market had 26.23. there is the dividend to be had. obviously south africa going into recession. huge volatility on the south african rand. it really is demolishing stocks in an unhedged basis. the rent headline coming through

, our first rant. let's check on the markets. i know you have markets in front of you. anna: absolutely. we are seeing weakness in asian equities. since we have been on air for the last hour and 20 minutes, things have worsened. we have the chinese markets worsening into their afternoon. the shenzhen extending its drop. the hang seng extending its drop. both down by more than 1%. let's get a bloomberg business flash. citigroup will reportedly announce a restructuring of its investment banking operations today. according to business insider, it will combine its corporate and investment bank with its capital markets origination business. the financial news website says the new unit will become headed by the global head of capital markets originated and the head of its corporate investment

bank. citi declined to comment. between conflict warring investors in telecom italia is catching up with the ceo. bloomberg has learned his job is now at risk because company directors representing elliott management are impatient with his lack of progress in turning around the former monopoly. a representative declined comment. germany's second-biggest listed lender will no longer being a member of the countries prime benchmark index. commerzbank will be removed from the dax on september 24. it will be replaced by a payment provider. commerzbank was a founding member of the dax since the inception in 1988. that is your bloomberg business flash. >> thank you. lawmakers in the united states senate have raised the prospect of regulator social media platforms. the bosses of

facebook and twitter testified russia use their networks to interfere in elections. >> russia use social media as part of a, i quote, comprehensive and multifaceted campaign to sow discord, undermine democratic institutions, and interfere in u.s. elections and those of our allies. we were too slow to spot this and too slow to act. >> we believe many people use twitter as a digital public square. they gather from all around the world to see what is happening and have a conversation about what the have seen. twitter cannot rightly serve as a public square it is constructed around the personal opinions of its makers. of alieve a key driver thriving public square is the fundamental human right of freedom of opinion and expression. >> if you ask whether inauthentic accounts on facebook

, we believe at any time it is 4%. >> if we determine people are subject to any falsehoods or manipulation of any sort, we do need to provide them full context. this is an area of improvement for us, something we are going to be diligent on. >> people are disappointed google, one of the most influential platforms in the world, chose not to send its own top leadership to engage with this committee. manus: we have bloomberg's opinion writer, who joins us now. and the cio at crossbridge capital. let's start the conversation. if i look at twitter, the defense by jack dorsey, alex, good morning to you. the defense does not seem to have gone down terribly well. is it that we have just -- we are in for the next bumpy ride of reevaluating tech? >> if you indicate shares were

down after the hearing, there were two hearings for twitter. i think the concern was from the investment perspective that he issued perhaps too much mea culpa and said there needs to be fundamental changes to twitter without quite indicating what those are. that creates a certain -- that creates uncertainty. that clearly has played over into stocks. anna: that has played the stocks. is more regulation coming? >> i think that is inevitable. that was the reading coming out of the april hearing when zuckerberg met with the house and senate. from the tech perspective they are trying to frame it as, we welcome regulation, but it has got to be not damaging. we want to work with lawmakers. the thing that was interesting afterwards was the justice department, jeff session came out, he's going to convene the attorneys general from all the states in the u.s.. his comment was about ensuring

speech is not stifled. clearly to appoint you could say they would be responsible to stifle more speech in terms of stopping russian interference. the message from the justice department is a little bit confusing. alex, you stay with us. i love topline line on the story about facebook from one senator. let's bring it to you. tech. hugely valued. we had goldman sachs talking about the trend in tech. how do you look at tech evaluations? overvalued? >> i do believe it is a secular trend. to pick up on what alex was saying, it depends on who writes regulations. if you see the testimony mark zuckerberg had, it was very clear the senators and congressmen did not know about how to regulate. they were asking the tech companies.

the tech is a secular turn. going back to pre-facebook and google, i do not think they have been back there. the valuation becomes a concern. we see a growth in revenue -- amazonople calling a $2000, we have seen things growing area the valuation may be expensive, but there is growth coming down the line. -- twitter is not a big company. twitter has a $25 billion market cap. a revenue of $2.4 billion. bp does $2.4 billion a pound in profit. twitter is not a big company. it is hard for them to say we are going to hire 10,000 people to that content. -- vet content. that makes them a lot more vulnerable. anna: president trump uses it quite a lot.

>> i noticed. which one do you want to dance with? a bit of amazon? a bit of apple? >> both are great companies and i have them in my portfolio for a long time. -- : you have a long-term >> absolutely. look at amazon. people keep saying antitrust can get to them. he keeps they've revenue and earnings ahead of the time. if he takes on folks in this country by getting -- he is not getting all the package, half the package. he is clever with that. manus: i love the football analogy. the market cap of course on that company, 972, 995.9. they do for being with us, the cio from crossbridge capital. really.iday for me,

anna: don't rub it in. us this week.r man this is bloomberg. ♪

guy: good morning and welcome. this is "bloomberg markets: european open." i am at the london aviation center in islington. my cohost in berlin, matt? with asian stocks dropped the regional benchmark heading for the lowest close in a year as investors contemplate the risk of weaker growth thanks to woes in emerging markets and the trade war. cash trade is less than 30 minutes away.