and this is blook berg markets. and down time into a currency war and does look like a full trade on. look where we are in the asia asian 1.6%, benchmark in negative all sectors are also down. and all giving up the gains. .9 by giving r by

up and if you are hooking where is the onefill feens to watch. also, quite a lot of room for the bank. and the most of the year. up by almost 40%. d climbing up since trump is said there issue a hike. ap currently up 40%. this it currency. 708, 11 at this point. china has come up. and it will not use the currency as a tool in the trade war. but it is important, it came in weaker, than stronger than the levels. nd the bopped markets.

172. and yields go to the lowest trump came to power. swrump ourse, rl it did . d inching slightly 101 >> and we are talking about the bopped market. poiven 9 % in may. ap 7.%. the bopped rally. p futures when the market gets under way for the minutes time. we are looking at losses to the losses that we did see in mopped here as well 89. government ause the

o the constitution 0. and that would be the kashmir has. and sending .% falling against digest arment and as we the pots bilt. friction between the two southeast asian nays. that it position we have. let's find out what is happening nd see lena has the first word news. >> the trade war has pushed a indicator to the highest warning level. president and trump's election. a one point they yielded. that's the most extreme yield since the yield lineup to the

2008 financial crisis. the federal reserve are caug for independence for the central banks. ey pened an op ed when it is free of political pressure and remove. north korea has launched more project tiles ramping up the pressurement the north fired two identified weapons before such launch in two weeks. south korea and the u.s. began military drills and president trump in singapore. the indian rupee in six years as they scrapped the status. people have held scholarships ap

local residents. ritics of india's government the demographics. lobal news 24 hours a day. 2,700 jourmists. and this is bloomberg. >> u.s.-china trade war. is in singapore. the u.s. the manipulator. this has profound significance, does it not? >> the symbolism is significance what it says about the rap i had deteriorations. when you hook at the analysis,

they say in terms of the impabblet on china, it is very limited, it triggers a set of negotiations and conversations between the u.s. and i.m.f. about what china is doing and potential penalties that the u.s. col impose on china but china faces u.s. tariffs. blook berg is pointing out china does president meet the three categories ta do determine whether a country is a manipulator. and china has been stepping in to step in rather to lead et too appreciate it. and they have put out a statement that they are more tolerant. other commentary from the we

won't see a depreciation in assets. but certainlyly in what it means in china's economy, sources may gain but risks and risks for those corporations that hold u.s. dominated debt. >> and let's bring you into this conversation. what do you make of that and the announcement? >> what we are seeing today is a message, cool down, folks. yes, we are going the allow it to align it in market forces. what we have seen today is a shout across the bows. for the first meages is the bills. they do it from time to time. they issue bills in the hong

kong market. and helps to race short-term interest rates. the amount they are doing, three and 12 months isn't enough to change the direction but changes the liquid witness. that will be followed up by look berg estimates and people oking for 698 and came in at 696 ks a small message there. we are not going to be fixing about seven. it will take a while. ok, we want the curpsi to move in lifpke with the market but we don't want an extreme one direction or the other. >> do we expect retaliation from

beijing with regard to this or telling agencies, various encies not to buy u.s. produce? >> we have had the deappreciation and dro below that. ap now sheffield as you say. maybe that is enough for kine and get the next round of negotiations. we don't know what will happen. some analysts would say bringing up china to is an example. steve yeemb reach said this is now something we should take something indeed. this is the largest holder. that is down by the way. the holdings are the smallest they have been in two years and we should be looking at that as

another option for china and others say it will be hikely taking that route. in terms of other teps. we have the unreible list. and there are the tariffs in terms of cancelling deals. the pressure points that china can bring to bear. that will be something that the u.s. business lobby groups will be concerned about indeed. >> i bring in our guest. he joins us here. good to have you with us. >> well, i think it is significant today in terms of the labor label and inflation. it is symbolic. assign that we are september

metropolitan did he cling between u.s. and china. .nd we have the hong kong it is cheer from here that it is going to weaken further. >> weaken further. how long will it go? short-term.ry up to as high as 725 and that across the board. that will push the dollar and even hoish. mainly because, the dollars in china is very, very vong. >> releasing my evidence and at what level would you expect to

see perhaps more money leaving china whether or not there are capital controls in place? >> interestingly enough, there e mact that are prettyly ordinarily at the moment. 2015-2015 is not to run down. y doing that in 015-2016, it increased expectations. and investors. we are not going to did that and using capital controls much more aggressively. what it does mean it leads to larger swings and will probably not used to in the markets >> how does it move the dial wrrds to regional neighbors here

in asia? > you can see the spillover is occurring. but [indiscernible] >> that makes accepts. and going to increase the china essex porters. beyond that, what happens to global assets and global stocks and bonds. china may sell town from its pressurey holdings clearly is a major event. i think stock markets are the weaken.t are going to will that cause them to pull back. >> of course, time and again, he wants a weaker dollar and a stronger dollar. people are talking about

possible intervention. now, does that seem likely by the u.s.? >> it is sri clear. -- ople are skeptical indiscernibley > in the past, we mad the g-7. so people should not try and fade in the interventions and by dollars and i disagree with that. and america has. nd intervention could cause -- [indiscernible] >> where dose trump want the dollar to be? >> and clearly he wants help if the fed.

and u.s. is intervening in the ..s. markets and harder >> it's interesting we have the rmer fed chief calling trump to end the threats and he wanted the fed to to do something in response to what is happening in the trade war, what should they be doing? what can they do and what should should they be doing? and already when they cut rates last week increases global risks. [indiscernible] >> and the fed, 25 basis points.

they are falling tremendously 50 basis points and not tie it into the trat guy. >> some cases trade wars have become a came changer. how with low can you go? >> the interesting thing is we ave seen from the european markets -- snerble] >> how that was a guess? >> a real risk of policy. rapidly.s tr > we're in for a rough ride.

maybe not. i think we have. ill ahead, trade wars into a correction, we'll discuss it later. >> hong kong bracing for china's and unrest a bit later on in the program. ♪,

>> another day and more protests in hong kong and they are holding a news conference holding this news conference. and one of the leading platforms of organizing demonstrations in the territory. all this as we see the trade war

and china coming on for the support. is today as the city cleaned up. 180 re violence, and flights and several airlines doing likewise. talking about the central government supporting ther leader and they will not tolerate and adding that it was to punish criminal acts and reor store social orders. and they condemn the use of police power and violence against innocent citizens. >> investors are not reacting. our stocks are down about 2% at this point.

hong kong stocks in the global anyone shalscrice is. hong kong has been seeing continued protests and our protestors are watching developments. hat happens now?

and 4:00 p.m. hong kong time. and we will be hearing from bay can jange at 2:0 p.m. ahead of this, the communist party and commentary. and noting that the top priority for hong kong is to stop the violent protests, as we are hearing from various gruchese as e are hearing from a groups of protestors. reiterating their demands including the withdrawal. they have also picked specifically on finance secretary regarding the economy and potential for a recession in the third quarter highlighting in their statement accompanying this what is going on right now

saying the retail sails and what is happening even before the protests due to the bigger of the u.s.-china trade war and we ard from a pre-establishment rty, democratic lines police headquarters.

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>> and the contusion kashmir of

its awe ton must rights. 7.06. the big story and that is what we are going to be talking about. for asia-pacific, and talk about all these things. what is going on? >> i think what we're seeing on least to some degree, symmetric response in the trade war. including me. trump going in all in as it 3 e, 10% tariff on the million dollars. and china and the united states and exports to the united states than it i will ports, it can't

respond in kind. so, i think what we are seeing here is a shout across the bmp ow, and -- >> there is a timing of it. we had fbling, beijing telling agencies not to buy u.s. agricultural product. and we got that move. and double whammy for the trade for those people. >> no question about it. this is retaliation in sort. whether it turns out to be policy or not. that is a different question. ill hard to discern and hard how things play out. >> the two sides are more apart than they have since may. but what does it mean in terms

of the overall gambit in this part of the world. how does it ripple across? >> it is going to be a.m. big youous. first and informationmost, china is directly impacted by the ariff but korea and taiwan and we had three consecutive months. and as well as china. in contrast, there is relative statistic wilt and all of it is relative where growth is much ess driven by external demand. >> paul, trying to say there is

a knee heef jerk reaction, is there panic in the marget given where we are right now? >> they responded to the movement. that was a sharp movement. indonesian and the philippineo have been strong against a strong u.s. dollar. when we look at the lacks six months. they have held up remarkably well. it is hard to say whether this s an ongoing policy. about technicals and fund mentals and uncertainties in the woled. we have global markets. is there anything that you would buying out there, value

anywhere. . >> we do like the fill feens in the asia-pacific. they are suffering ter apply. those economies that were suffering from inflation last beneficiaries.or wreff seen bond yields falling for the hikestive for the phillipines and the main reason it is giving central banks policy space. >> >> greedy when others are fearful and others are depreedy. and more fear before you get greed question. how much more do you have to see and i know there is much more

fear ap how much further do you have to go? >> that is a lot to unpack and let me be brief. we have gone risk off. sed on our overall view, the slow down economy will start to become pronounced. see as around the middle of 2020. equity markets are months ahead. middle of this year. we went risk off. we downdwraded china. china a from mutual underweight nd turned the dial last friday where we downgraded one more notch and ue the prods in protect of those to fund those markets. so independentian is our biggest

overwargete. >> we will be talking about india next. let's get over to bay imming beijing. a vote corbin will call of confidence toll prevent the prime minister. coship bin said he is trying to split a no deal. labour could table a no deal when they return on september 3. u.k. will join toll protect hipping in the gulf. e.u. nations have been reluctant. this is a shift in strategy.

the 2015 iran nuclear deal. google's former head of h.r. are ending reliance on contractors. workers should start on a contrast but people should be employees. google has more people than it employs. senate calls for action. >> i can so situations where you don't know if the person is go to go work out if you are ramping up or down, you don't know if you are going to invest in the long-term. > global news, 24 hours a day. ♪

>> coming up the trade wars helped push india and more on that next. ♪

oor and focus on macro prudential rules regarding the financial corporations and which is still to filter through. >> paul. thank you for your insight and indian mashts. what is it like. and take us through what to expect from today's session. and 10 of the last 13 trating sessions. how are we looking today? >> well, not good. d we are clearly expecting

global index is already down. and they continue to sell in the quity markets. >>p it is likely to open in the red and a chance they could occasions ndifficult of the three open rates. we do have some cuts coming in all moving down in andem with the benchmarks.

imbasket on exporters or the pharmaceutical seth tore and that's the reason we are looking at marginal gains. and as the case for will farma index and both of them are trending slightly higher. this is because of trending at what levels. the u.s. trending so much was back in march. we have seen some trending and ack at those levels. >> let's move things along. e have earnings per share 69 massive o 1.70 and

cyber breach. and revenue available. between 1 and 2%. >> also falling, steel in tokyo and the profit will collapse. and thinking the most in 2017 on monday. more than 11 million in the three months since june and dropping 72% ♪ ♪

>> chief economist, good to have you with us. well, what are you expecting? >> we are looking to have a steady rate. delivered 60 points of points in the last two points and may sit for a little bit and watch the impact of the reaction and the stimulus that is to come through. we are looking for 1%. it is likely to be a statement that is released and not least at. and the escalation in trade tension. i think that will be part of

today adiscussion and that will feature in the statement this afternoon. >> how many cuts are you expecting? >> so we are looking for two more cuts in the reserve bank. and again, a new record row and we think the development since tensions, trade increased uncertainty and will likely the cuts. we brought the forward. and wait until early next year and deter yation and they will ve sooner and the global central cycle and forced to put additional and take conditions quite acome dative.

we are looking for another two cuts. and cash and ten, i think what gets interesting what do we go from there and think about alternative options and options we are seeing in other parts of the world. >> and 10-year bond yields dropping below -- getting one in the u.s. rs and opened negatively and we have seen stabilization and i want to ask you about the bopped yields and the 10 year aussie note nalling one% and recovered the yield any way. what is that pricing? >> the market is thinking about the cuts from the reserve bank,

at least one important. the i suspect that is going to e a matter of time and that is yield ch and front-end and 75 basis points. the pack end is benefiting from that and so really it is a big move that is taking the yield below 1% this morning. this is a lower global yield backdrop from u.s. treasury, when you look at the curve and gative, when you look at the u.k., global backdrop that is king the yield where you the arying degrees and that is

playing a key role. part of the global trend and what it is telling you margets are concerned about global deproth and and entrenched lower inflation. >> a recession in sauce trailian and over two decades and if you are worried a sharp slowdown, where is is it going to come from? >> so we have pretty subdued forecasts in our profile and the reserve bank will revise theirs lower. that we king for and are mindful that australia has shock is where the

substantial slow youbs and the lobal shocks are rising. indecisions, we know in australia is near at record levels and that makes external shocks and we know increasingly, rates are getting here. and it is a little higher than they would have been six, 12 months ago. it isn't the best case and it can be called. the nurse is on the fiscal front than i think k in will be used in deproth slows. the other revenues both this rning and more recently than

will cushion onslowdown in growth. > talking about the aussie dollar, 67 to the dollar. what are you putting in there? >> so, it was anticipating to cuts. we had in the first cuts. that suggests there is probably downsides and 66 target and again, part of the global story, increased downward pressure on the currency and so probably downside to that year-end forecast. it s the key policy and should go lower and help cushion some of this slowdown in deproth. >> thank you so much for that. they are meeting today. we hange is expected and no

are looking at the markets, still red across the board. ♪

manus: our top story this morning. tracy: asian markets real as they take a genetic turn. beijing responds with a lawn fix that is stronger than expected. tracy: oil reversed endocrine. almost 1%utures rose after being down almost twice as much in the morning.