that's all for this edition of dateline. i'm natalie morales. thank you for watching. i'm joumanna bercetche these are your headlines after a sharp drop on wall street ahead of tomorrow's trade talks. fed chair jerome powell expects the u.s. expansion to continue and expects the central bank will grow its balance sheet. >> the growth for reserve management purposes should be in

no way confused with the services we do bloi after a financial crisis >> brexit talks are on the verge of collapse. here in london, saudi aramco's ceo will be in full output the ipo could be published by the end of this month. >> good morning. welcome to "street signs." i want to take you to the price action we've had markets were off we had a heavy session the dow down 2%. s&p down 6%. tech, nasdaq down. as tension is heating up ahead

of those all important trade discussions set to take place tomorrow the latest develop that the u.s. is applying visa restrictions in addition to adding more and more companies to the black list. this is the first time we are seeing the u.s. wrap in human rights concerns into the economic dealings. reaction has not been very positive a negative tune and session for asian markets. by the end of the session, it was the worst session in the week for the asia pacific indices as a whole what we saw in europe at the open, we had a slightly negative start to the day you can see the stoxx600 is

relatively okay. that is the picture. one of the indices i want to focus on is the ftse 100 in the uk crucial days coming up we'll speak to willem coming up. but it has been a serious deterioration in talks between the two sides. concerns that the prime minister is leading the country towards a no-deal brexit that was impacting the currency. today, you have the ftse 100 trading up on days when the currency trades weak, we see the ftse do well. the dax in germany up half a percent. actually, we are seeing a relative rebound there other indices trading as well.

talk about individual sectors. right up at the top, we have cyclical sectors up about .3 a percentage point up about half a percentage point. one in particular is voda phone. they've announced market cuts. at the bottom, media relative underperformer and food and beverage around the flat line as well our top story. china is planning to tighten visa restrictions with u.s. nationals with links to chinese groups this after trump administration imposed with the detention and abuse of muslim minorities ahead of the trade talks set to kick off tomorrow. eunice filed this report from

beijing. >> reporter: chinese officials expected to be responsible or complicit in the sustain sanction or abuse of the people known as the uighurs saying the regulation would compliment those that u.s. believes is the distreatment of the uighurs. saying it seriously violates the recent norms and the human rights issues is a, quote, made-up pretext. they want the u.s. to remain mum on other issues. they plan to clarify the nba's position on a tweet by a houston manager that created an up roror in china

adam silver said the league will not regulate what people say or text they've suspended broadcast of the preseason games. other chinese partners have also dropped the nba. the dispute raised the question if this is a turning point for chinese businesses those who want to do business with china would quickly issue an apology the question is, is this the new formula for foreign firms in china. apple could be the next experiment the communist party is criticizing an app used to track police movements the paper asks, escorting thugs, are you sure about that, apple >> suppliers unnerved about what

this could mean for the company. >> certainly unnerving for global markets as well the time is now upon the federal reserve to increase its balance sheets stressing that these measures should not be interpreted. >> should in no way be compared to the large scale deploy after a financial crisis we are contemplating to resolve them, should materially alter the stance of the policy >> that line led to a big bid for the front end of the u.s. fixed income market. leading by the three month, six month, nine month up to one year you can see today, the two-year

note is trading around 143 we've rallied a lot over the last couple of weeks we were talking about this a lot stands around that 10 basis point mark you can see that the fed are succeeding in the curve. the rational behind it is to bring the money market rates again. >> charles evans wouldn't mind another rate cut he said a further cut could provide some assure aance the ecb still has head room. that is the message from the vice president who has rejected the monetary policy. he said the ecb would monitor the outlook before deciding on

tweaks to the strategy we'll talk to our guest about where to pick up it is interesting people are asking them whether they are making tweaks to the policy. we've discussed this do you think the ecb are getting to the limits of what they can do to shore up their economy >> i say it is a bit off given that it hasn't implemented that yet. i think it makes a huge amount of sense if we did have head room to give yourself three or six months ultimately, i think the ecb is utterly at the limit it is going to help some countries. you see significant teasing of financial conditions in italy. if another rate cut would do good, i'm skeptical, and it may

well do a bit of harm. >> in europe talking about the trade war, this was the story for most of the last few months has been the story for u.s. and china. now there is concern the trade war will come to the uk soon especially after discussing the subsidies. is this just a man made phenomenon globally, we are seeing the economy slow down so much. i think the impact of the trade war between the u.s. and china the reality of steadily increasing tariffs has had a profoundly negative impact on global manufacturing it has been something driven by the financial sector critically for an economy,

disproportionately exposed it is hit badly. it looks as if europe is caught in the cross fire. ultimately, it is more germany than anybody else. >> interesting showing that germany is fairly i had oideosyncratic. it seems germany is right in the heart of this trade war. >> it has this huge surplus. it has a huge amount of exports in the midst of a trade war or slow down, it will be vulnerable it has an adequate domestic demand, which means other areas are not as concerned as perhaps

they are to others >> all of the language that has come out, we see no reason now to move away from our black zero budget policy. the message is that things need to get a lot worse do you see any hope at all that germans may start opening up the fiscal taps or bring a change in government >> i think it is something definitely positive for the economy. it would provide that rebalancing that is very much needed in the short term, i don't see how that is interpreted. it is very likely that government an government is likely to come to the end when they will step away from the current coalition. that will provide a catalyst, whether that means a shift to

the existing parliamentary once we got the greens, they are not going to be we hadded to the fiscal restraint they'll be far more focused on saving the climate >> the package that was released was very under well amming i was in germany at the time everyone said, look, this is a drop in the ocean. >> there are easy policies that they could implement a good example is to build out a structure of election ricar charging station and allow germany to move in a less carbon direction. >> how bad would it be if the

u.s. would decide this november to go and apply tariffs on german companies >> that is probably the key down turn for us. i think it would be profoundly negative that impact tends to be pretty small. ultimately, we've seen the impact on business confidence and investment you saw earlier this year that auto experts plunged we did see the u.s. sector that would give us another leg down and one that would tip the german economy >> sentiment preends the impact. >> if you want to get involved in a conversation, tweet us

here coming up, the eu president accuses the uk in engaging in a stupid blame game as brexit talks hadi talks hit a stall.

. >> welcome back to "street signs. irish prime minister said, quote, it will be very difficult to secure brexit by next week after a downing street source said angela merkel believes that it overwhelmingly unlikely willem joins us live for anyone hoping for a brexit deal, the last 24 hours have been pretty crushing >> i think that is a fair assessment it has had an impact if you hear the language, you've mentioned talking about the wide differences on two sides amid

the concept between the people of ireland and the idea about how that might work. you listen to people like the parliamentary president for europe he came out with a scathing set of comments after that meeting saying the proposals the uk set forward last week, you listen to the president of the eu council, he'll be hosting the meeting as they are trying to hash out a deal he accused boris johnson of a stupid blame game if the talks break down the commission president with an interview talked also about the fact that the blame should lie squarely on the doorstep of the brexit that could not be found on the continent

clearly, there should be discussion about the way these talks are preceding. clearly, he wants to receive concessions. he will be meeting later this week in dublin it will be up to the irish to decide whether they are happy or see them as a basis as they go forward to the next week >> that language has been critical using the word stupid is really taking it to a different level >> i want to bring it back to boris johnson and how things are panning out. there is a story in the times of reports from within his own cabinet saying they would be willing to resign over concerns that the prime minister is leading this country towards brexit it seems even back home, he's

facing resistance from people within his own cabinet >> he has a large number of constituencies european leaders, european parliament, british parliament, bratti british voters his office briefing after a meeting with angela merkel he was accused by one mp of a very clear racist dog whistle because of the language used baus of the german side of the talks. you listen to the brexit point person he has been a strident critic. he talked about how the prime minister had not turned up to

answer questions but that parliament would be suspended ahead of those talks next week he said he didn't think it was realistic. putting forward proposals would never wash >> as you were speaking, there has been a spike in sterling this on the report saying that the eu is ready to make a major concession by providing a mechanism to leave a new irish backstop after a set number of years saying that sources close to the talks said european governments are set to proceed after a period of time and the date of 2025 is the date that is being moved around this is being reported by the times now and clearly would be a

concession on their part >> the question around the proposals from the uk, i mentioned last week is the idea of consent in northern ireland the uk would like to see a portion of the uk staying inside the european customs union and has the ability to opt to stay in it sounds like suggesting in that story, the idea that they would be able to opt out the question of the assembly that is not currently seated would have the ability to stay in as the uk is suggesting or whether the european had seemed to suggest with the idea to opt out of it. that would be in one area. the idea of a time line for a backstop mechanism was something that was very unpopular as a way

to wrigle through that >> we are seeing some positive signs emerge out of the last 24 hours. want to break it down quickly. we have seen a rebound after yesterday plunging after a reported call after the prime minister we have seen it bounce after the story with respect to northern ireland and giving them the unilateral ability to withdraw from the back drop guild mix income has dropped off. positive development there we are waiting for more details. let's get back to neville hill, chief economist from credit suisse it just doesn't feel like there will be relief anytime soon for

both parties >> i think that is right that issue we are likely to have announced through the eu and parliament likely to think about the recession at the end of this month, we'll have a general election in the uk, which means we'll continue to when and how we might leave that terms on which that is structured part of the issue is that it really is only the end of season one with brexit and we have six or seven seasons to go for uk businesses, that's ultimately the critical point. it is not the landing deal for this and how closely aligned it is that will ultimately matter to the uk. their willingness to vest.

>> the most tedious netflix show ever we are only in season one and have another seven to go you travel the world and speak to clients outside the uk, what is the sentiment are they thinking, okay, if there is a deal, do we want to jump in or are they desensitized by the sheer amount of news coming out >> they are pretty disengaged. it is not an asset or a collection they need to own. it is phenomenally complicated far better to focus elsewhere beyond the weight of the uk. you wake up and the uk is left without a deal and you are left sitting that out

if we had a period of time, whether a three or four year transition period where brexit would be settled that would be an occasion where they would try to balance that towards the uk all of the evidence is that the uk would be invested in. if there is a degree of calm, that would be bullish for the uk >> it looks like we are headed for more uncertainty >> thank you we'll leave it there stay with us, because saudi aramco ceo hits out after a response to recent oil attacks moren othat story when we return ♪upbeat music

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avat aft jerome powell says the u.s. will grow its balance sheet >> growth of our balance sheet for reserve purposes should in no way be confused with the large scale asset purchases we deploy >> sterling spike ahead of a major decision or the backstop deal >> responding to the lack of response on the attacks on its oil structure. the ipo will be published by the end of the month >> european markets have a spring to their step

bucking the trend from the hand over from wall street. the dax leading the charge up .6 of a percentage point. and cac up about.5%. we've seen a spike in the pound on report in the times that the eu are willing to make concession on the backstop that had an impact let's switch over. as i mentioned, we are seeing that bounce in the pound up 4% yesterday, we dropped a similar amount after that call took place between the chancellor saying a deal is very likely we've fully heard back after the latest reports suggesting that the eu is ready to make a

decision 1.2270 is where we are for the pound. we are also seeing a bid for the dollar versus yen as well. that is a risk on compared to the moves we had in wall street. let's talk about wall street we had a heavy close the worst session for nasdaq down close to 7% down down 1.2. heavy trading session. you can see they are seen opening up positive. s&p opening about 12 points higher, dow before 101 points higher and nasdaq about 35 the focus there looking at the trader war discussions

>> renault chairman wants the board to find a successor. the board announced the search will begin in earnest. saying strengthening the alliance with nissan is a top priority renault declined to comment. you can see the stock is up about.2% lvmh is set to increase third quarter sales. the french luxury goods group has faced a number of head winds. more about what to look for. >> lvmh is the largest luxury group in the world these are the things we'll be looking at a potential impact on the u.s./china trade tensions. it is important because china is about a third of all luxury sales in the world

hermes said they didn't see a slow down coming from china. they said a few weeks ago, they were going to open a few workshops to meet the growing demand a little hint so far coming from this another thing is the wto tariff that have allowed in the u.s. allowing tariffs on u.s. goods leather goods, champaign, liquors were on the potential list this was good for lvmh because their goods were not on the list there will be some stocking effect in the u.s. before we knew what goods would be on the list potential positive here. looking at the hong kong protest. this is a crucial market about 5% of all luxury sales in the world.

6% for lvmh. it could be an offset coming from main land china finally, we'll be looking at different divisions and brands specifically for lvmh. this is about 40% of revenue that is very important that division did really well. up 20% we expect a slight slow down still a very good performance. the bags still very much in fashion. dior has been doing really well in the first half of the year. another brand we are looking at is bulvgary, that is a hard luxury we'll see if there is any

indication sephora, this is the retail for lvmh they have been struggling on the high street, especially in the u.s. they are trying to reinvent themselves and expand in asia. they have just opened a store in hong kong after absence of ten years. all of these things we are looking at for hits of the luxury sector when the giant lvmh reports tonight >> of course luxury has been under a lot of pressure. thank you charlotte. >> saudi aramco will file a report it is expected they will assess shares before making a final decision before deciding to press ahead with a listing

aramco declined to comment on the report i want to bring us our guest we will talk about ar ramco but first i want to talk to steve who is at the meeting. a warning that the absence of, quote, internation resolve could embolden more a taks tell us more >> reporter: it is very interesting listening to the ceo of aramco. two topics for him one, the recent attack the second, the ipo. the two are unrelated. the point you raise about the willingness of the world to act. right here the end of the speech, he was asked who do you

ultimately blame for this. he was saying, ultimately you have to look to iran, which is the line we heard coming out of the saudi kingdom as well. no one can deny. that has been an extraordinary response they were talking about the terms of the point on the price. in some ways, people will say for saudi, it is beneficial and would be a major issue that perspective that could be available in arabic and then english.

i know from a few sources that some people won't talk to me about aramco because they are working at break neck speed. mr. nassar was asked are you going to ipo soon. his answer, as cryptic as ever the point he made today is when the share holder is ready to go, we will be ready that is interesting. the share holder being the kingdom, the royal family that will say yes or no to the timing he was pointing out that the company is ready to go as and when not denying there is an agenda to get this ipo ready by perhaps the end of november as well. adding in that a lot of people i know are working around the clock to get this ipo ready.

that's all they'll say very interesting he did as you'd expect side step the question on valuation as well the kingdom is known to be worth around $2 trillion possibly $1.5 trillion u.s the back drop of demand for oil is quite worrying. you've got all of these issues issues of supply with partners namely russia. the bare market is existing and remaining with us where both wti and brent will stay with us. with wti around $52 and brent around $58, this is not where the kingdom wants the price as a back drop for the ipo. back to you.

>> funny you say brent is around $58. we've fully rebounded and paired back on all of those gains we'll have more on the energy challenges later today when steve speaks of the out going bob dudly. taking it back to our guest. the last time we spoke, we spoke on the heels of these aramco attacks. where we left it, you said that this would likely derail the timing of the aramco ipo if anything, we've heard today saying that these attacks have strengthened the company's position and if the wall street story is anything to go by, they are intent to list by december >> it is an ideal time nassar doesn't make that decision the message should be go to mbs.

mbs has decided he wants ipo right now. is it the right time probably not is it the right price environment? probably not the messagethey want to send i saudi is back. they are not going to stop aramco we are going to go forward on repairs and rely on investors this year. i expect something to be announced over there >> we have to draw distinction between local demand talking about local banks to take up the offering versus international demand if you speak to the international community, there is concern we could see another type of those attacks. we also saw it on vessels throughout the course of the summer >> absolutely.

saudi investors have two different environments here. a great asset for many gulf investors. two, when mbs knocks on their door and asks them to participate, i think the answer will be yes. the only question is how much? >> let's take it back to iran and saudi arabia again, mr. nassar has said no question the attacks did come from iran. going a little under the radar, it seems as if they are now open to a proposal of a cease-fire with the hootie malitia. >> i think they've been

searching for an exit strategy there is no easy way to exit yemen. some regional powers have offered to immediate a think tensions are a bit lower right now given the saudi arabian talks or communications between the two powers although a big attack like we've seen is unlikely smaller scale attacks might continue this conflict does not get wrapped up overnight >> i can't let you go without asking you about president trump's decision to withdraw troops from syria essentially giving turkey rereign. today, they've said they'll start an incushionon into the northern part of syria >> sure. i think the attack says one

thing. regional powers have to figure out their own security arrangements the u.s. is not going to fight wars in the same way we need to take into consideration that the u.s. was never going to stay in syria over the long term and protect the kurds. >> any impact that it comes on the heel of putin's push >> i don't think so. >> interesting they've been resisting that aggressively so much to discuss thank you for joining me the head of middle east and north africa we just spoke about oil, aramco ipo, syria there is a lot to discuss there.

tweet us coming up on the show, turkey is set to launch a military operation as concerns mount over u.s. withdraw from the area. we'll have more after the break. . to go where they could explore and experience adventure in unexpected places... ♪ who were inspired by different cultures ♪ and found that the past can create new memories... leading them to discover: we're woven together by the moments we share. for everywhere you go, expedia has everything you need, all in one place.

>> welcome back to the show. turkey will begin its incursion shortly. after president trump announced a pull back from the region. richard angel has the story. >> reporter: turkish forces are a massed on the southern border. preparations are complete for a cross-border assault of u.s. allies the build up comes after president trump announced a plan to pull troops out of the area for now, troops will remain in the country.

after fierce backlash from many republicans who call the decision a betrayal of allies. saying in no way have we abandoned the kurds. >> i told them, you got to treat them good. >> but the people in the crosshairs of the impending assault are protesting appealing for help >> the kurds have been fighting against isis with u.s. forces and have created an enclave which turkey wants to destroy. turkey tweeting if america leaves, all will be erased turkey's goal is to create a bufferer zone 20 miles deep within the border inside syria a map was shown. he doesn't want to occupy but

settle it with 200 non-kurds arab refugees. they says it ethnic cleansing in the nation which they say president trump is allowing. >> today, president trump confirmed he invited turkey's president to the white house >> the white house says it won't cooperate with congress's, quote, illegitimate impeachment inquiry. after the administration blocked a key ukrainian witness from testifying democrats condemned the move saying in a tweet, that trump was not above the law and will not be held accountable. tracie potts joins us from washington if the wahite house chooses not to cooperate, what could the

repercussions be on the president? >> we could be looking at a legal battle we saw this week when the eu ambassador who volunteered to come in and talk to lawmakers was blocked. he faces a subpoena. if they defy that, this could land in court. it would then be up to judges or justices to decide how much information democrats are going to be able to collect. the white house has drawn the line saying the process is unfair people are not being allowed to bring department lawyers only democrats are calling the witnesses and republicans aren't getting that opportunity that's why they are pulling out of the process on the other hand, nancy pelosi here says that proves their point. the lack of cooperation itself is obstruction

as some lawmakers are pointing out, that in it self-was one of the articles of impeachment against former president richard nixon. this could cause it to speed um. >> earlier, we were talking about some of the foreign policy decisions the president has made he's receiving a lot of criticism for pulling out of syria. yesterday, he had been ordered to release his tax returns by a judge. it seems like he's coming under pressure on multiple fronts here how is that being reflected in overall polling right now? >> the president's polling we've seen in polls remains strong

with his base. that is to be expected we are seeing his numbers slip in other areas is it due to foreign policy or the impeachment inquiry. there could be a number of reasons. the president remains resolute to what you've noted can be controversial decisions. >> another big event we are watching out for are those trade talks set to take place between washington and beijing starting tomorrow that has been really hanging over markets european markets, i want to take you to the picture in europe, trading with a positive bias today. we have the dax in germany up.

as i mentioned, we did see a bit of a balance in sterling pound the eu were willing to make a concession on the backstop we've come off a little bit still trading around 1.2250 and in the green yesterday, it was a heavy session. nasdaq down 1.7% dow down 1.2%. today, the move is seen up s&p up about 15 points dow up about 120 points. that is it for our show today. i'm joumanna bercetche "worldwide exchange" is coming up next. (danny) let me get this straight.

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it is 5:00 a.m. here the future points to a higher open hong kong backlash chinese state media is accusing the nba of endorsing violent protest. an $8 billion punishment a jury ruling against johnson&johnson. and aramco getting close to publishing ipo very soon twitter said i