argentina is any crossroads. the country's assets are tumbling today, setting new records after a populist opposition candidate routed president macri. land joins ushe now. what are we hearing in the last few hours from those who won in the primaries, and from macri's people? >> what we know so far is president macri will speak to the press later this afternoon. the person investors really want to hear from is alberto fernandez, now the front runner for the presidency, after beating macri in the primaries by a margin that was way larger than anyone expected, almost double than what pollsters were saying. vonnie: in the last couple of minutes, getting some headlines from an economic advisor to fernandez, saying that markets reacted badly to macri's economic policy, blaming him for the market reaction, saying the campaign message to investors is there is a willingness to repay foreign debt. the election does not happen until october. what are the threats to the economy between now and october? carolina: probably th

now let's go to argentina.rgentine stock markets and its currency have both plunged after conservative argentine president mauricio macri suffered a shock defeat in primary elections on sunday. the peso fell 15% against the dollar on monday after earlier plunging around 30% to a record low. some of the country's most traded stocks have also lost around half of their value in one day. 0ur south america business correspondent daniel gallas has more. monday's market meltdown in argentina is likely to have many repercussions in the region. the government tried to intervene in currency markets, but there was no way to avert one of the worst days in the history of argentina's stock market. primary election results suggest voters in argentina are rejecting the pro—business market reforms implemented by mr president mauricio macri and his deal with the imf, that was to implement austerity cuts and capital controls in argentina. in fact, what these results suggest is that voters want the return of the left—wing politici

as long as investors are willing to give argentina dollars and euros argentina should just go around and default on the us every time until investors finally give up yet there's no is really no other help i mean argentina has default it's all many times it's just part of it's operating procedure in there's always a new generation of investors that thank god this time it's different we're going to make some money on this and the 1st year they do it in and they say i want to somebody else and then you know to some bond fund in some form a and and when it's sitting there and. jarrett's and. you know you have. a government that came a promise to market oriented policy a few years ago and they went on my bar and been barred and in dollars and euros because she can't bar in argentine pesos you know that it's just a horrible garbage currency it with right now with with 50 percent interest on it in a against the value in crashed on a daily basis you nobody wants to lend you money in peso so they have to borrow and dollars and euros and yen or whatever hard currency they can borrow and and th

justin carrigan with us on argentina.ers the morning including holiday company's earnings beat despite a 737 max 8 inflicted profits slump. you can see the shares up today. i guess no one is worried about tourism to hong kong faltering. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: the european open." we are down across the board in europe. 42 minutes into the trading day and looking at not huge drops, committed -- but this is the second day in a row we have been down after a global stock on yesterday that rolled around the world. really due to the protests in hong kong, weighing heavily on investor sentiment. the unrest had sent the hang low.slumping to a january ro carrie lam said the city was in a chaotic situation. >> i urge everyone here to put down their prejudices, try to calm down emotionally, use a minute to think seriously and look closely at our city, our home. do we want to see hong kong fall into an abyss? man joins us from hong kong's airport and we know the airport was closed yesterday. hun

have argentina, that's likely to wailing on emerging markets.bout this,esting hong kong has been around now about 10 weeks. it's really coming to the floor investors. that's likely to weigh on sentiment. we got bond yields that are tumbling, that are ringing alarm bells. it's interesting. we got at chart that shows the 500, it's actually where it was at the beginning of last year in january. stocks really not going anywhere. to watch today definitely hong kong. it is one of the largest markets in asia. is a financial hub. about 500 billion of value has out since this protest kicked in. that benchmark is at the 7-month low. it's just another negative factor that investors will be today.g >> andrea, more bad news for the the kiwi. goldman sachs cutting forecast for both. why? >> that's rights. they are saying this protracted slowing growth as well expected cutr than last year. weighing on currency. lot that is priced in. upside. very little aussie dollar is 10-year low. going a chart shows it through that support level during that flash crash in j

argentina depends on the kindness of strangers. and the strangers happen to be foreign investors. >> thank you so much. go format. -- go for it, matt. depthwe have seen the dropped so much. $.55 on the dollar is where we see argentine century bonds trade trade i just wanted to point that out. talking about this hundred year debt. it is certainly not worth as much as it once was. nejra: absolutely not. thank you so much to our global emerging markets managing editor . and coming up snap election on ice. mall tales solving these bid for power have to wait longer. as italy's senate delays a no-confidence vote. we will discuss that next. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wir

argentina can move forward and i. and unlike the problems on land offshore from argentina there seems to me some potential for making money as argentine norwegian partnership to grow in carbon exploration can you just quickly tell us about that we all know what hydrocarbon current exploration mean is its oil oil always seems to be the clip where you to a direction you turn into if you want to make money and this is exactly what's happening here so we have 2 companies that norwegian company by the name of corn or it's signed a deal with argentina why i p f now here's a map of this map basically will tell you exactly what's going on here the 2 are exploring an area under they can 100 license giving the axis to 2 over 5790 square miles that's about 15000 square kilometers in the north argentinean base and these guys as you can see on the map have already joined forces on 2 projects so far so they're opening fire lots of oil and of course to make that sort of money give me the wrap up from toronto the $1.00 desire is it's

also on the show argentina's peso collapses after a presidential primary upset we'll tell you what has markets so scared. this is your business report i'm stephen beard zimbra lead thanks for joining us on calls airport was due to reopen early tuesday morning after being closed all day monday as thousands of protesters occupied the main terminal the closure forced the cancellation of more than 150 flights causing serious disruptions one of asia's most important transportation hubs and marking an escalation of protests that were previously limits limited to the city's neighborhoods investors around the world took notice monday with indexes falling on the spreading political turmoil and fears china can respond harshly. and let's go now to our financial correspondent in new york jose luis to haro who is a nice to see as always so say as we said this political uncertainty spreading to markets as well what are you seeing there on wall street. i think that right now stephen investors here in wall street are fearing an escalation of the bands which could trigger a financial shock worldwide ov

roster divided his time between france and argentina.he found love again with laura escalade whom he married in 1980 after a long engagement. for you may have been a very quiet period of my life very happy very peaceful. you know what a strange feeling to be at rest and i needed those years of rest my new gun would be down to give me by spent last summer and pointed at a story and you're a guy. those 3 months in 10791980 renewed me. as a result of my music is not agitated or aggressive anymore it's not as biting and it's very tender romantic and different to. deal with it and of course. the body can go there as i go and. just to get into the middle of the you know what it does not that. good at all you know if you're able to put up with. that because of the late question little girls that for the whole day with you would on the i think kind of get. your voice becoming your vision of the guns and that's you know getting the baby is on the way because it's full of what they perceive to be because. if you don't hear what out of the theater

argentina's music scene. but if you don't believe we present to you the most modern and integrative expression of tango a style that has propelled the aren't abreast r.p.o. zone into the center of the world's music making. this was the start of the most exposure i'd ever had playing every night for a very small audience but they started to really listen and understand what my quintet was trying to accomplish. it as it was a new form of music especially popular with bands of jazz with night outs who went out to listen and enthusiastic into another. store indeed his relationship fell into a silent crisis. not that i knew my sister and i we all did he get there until 19650966. my father left and it destroyed our family. hello who is their dad how are you i'm leaving ok see you later. no i'm moving out what do you mean you're moving out i packed a few bags you can bring them to this hotel take them to this address between scent mountain and florida. i stood there like an idiot because i never imagined something l

was born march 11th 1921 in marjah plata argentina. it was a town of fishermen and immigrants that the local elites hope to transform into a luxury a seaside resort. pastor was born with a clubfoot in an attempt to correct it he underwent 7 surgeries the 1st when he was just a year old after each surgery he spent many months in a cast. his mother assumed to and his father to be thin to decided not to have any more children fearing they might be born with a similar disability. as his parents were called pampered their only child. after the last surgery the family decided to start a new life in new york. i lived in exile in mexico for 9 years. my father who had just given a concert at the stage and said you want to write about my life. i was puzzled it seemed it suddenly changed his mind so then we met every day from 5 to 11 in the morning very disciplined recorded his whole life on tape you know i wanted to know what he was like as a boy as a young man and i. say. if your soul is settled in a poor district of new york as immigrants thei

which is unpopular in argentina and also put austerity measures in place. is a bad manager of the economy he applied to gradualism that didn't work well. that's where sunday's big winner comes in opposition candidate as wants to renegotiate the i.m.f. lifeline an uncertain proposition that the elections in october argentines will face a tough final choice stick to the painful path of reform which at least promises some stability or take a new direction based on big promises that remain they. let's get a quick check on european markets where the dollar is and advised us standing by the frankfurt stock exchange i met the shares of germany's 2 biggest banks are slumping tell us more about. yes it's the 2nd day in a row we are seeing dogs are back and for mass bank close to record lows for coming out spunk they even touched a record low as of yesterday and the reason behind that is a perfect storm for the banks they have a very low profitability and they were both kind of banking on high interest rates but they are not coming it's more that we are going to see

and argentina are synonymous with each other in recent years always both parties on the verge of trading leaders their relationship could be significantly legal journalist molly bell c was on hand to break down the latest in the rocky relationship. leader. on the ground with r.j. correspondent sure months israel good will bring the soul latest on wealth from inside china. showed it is from let's go. markets continue to rebound on monday adding to the gains posted last friday after the dow had its worst session of 2019 treasury yields are now staging a comeback after the 210 inverted and indicator which has correctly predicted the last 7 recessions we've had over the past 50 years this bounce here further reiterate our thesis that the short term risk is now to the upside so while the fundamentals are complete garbage right now in the short term the market does have some legs as continued stimulus 1 and rate cuts will set a temporary floor here in the equities market so we begin the week off in a risk on mood as we get yet another stimulus shot from the central bank this time from china th

let's start with argentina. a chart here shows the price of credit default swaps in argentina. you don't need to know calculus to know that is not a good thing. so why are people so nervous about mr. macri going out of office? marty: because they are very protectionist, and everybody is heading for the exits. taylor: i spoke to damian who covers aerday, lot of the emerging markets, and asking him what gauge measures the risk the most. what in your area you are researching has investors nervous the most? sarah: i would say cds. you just saw the spike on the screen. traders are pricing in about a 75% chance of a fault, up from about 5050 at the end of last week. you add it all up, you look at the decline we saw yesterday, 48% in dollar terms. that's the second word decline -- that's the second largest world default. david: we've seen argentina default in the not-too-distant past. mr. macri was trying to accommodate the imf. what happens next? marty: there's this hope that somehow macri, and he himself , but itill will win is unlikely. so you will get the imf to come in. you will

right now it is an ominous time in argentina.ike to say i'm cautiously optimistic that we can continue with the current administration, because this administration has been enacting a lot of policy initiatives and programs to support entrepreneurship in argentina. emily: what kind of policies have supported the tech sector in argentina thus far? lisa: of the four years ago there was -- a couple years ago there was something called the entrepreneur law. it created tax breaks for investors and opportunities and was a huge step forward in terms of how the government works and bets on entrepreneurs to increase and improve the local economy. that, in addition to quite a few afferent programs -- one is local incubator program that invests between 10000 and 30,000, money for startups and entrepreneurs. there is something which is a meditational program. there's lots of different policy and programs and innovations to serve the entrepreneurial market because president macri knows it is entrepreneurs that can save argentina. emily: what h

|j all these different stories, hong kong, argentina etc.opean markets were trading in positive territory, we've had to absorb an awful lot of news flow over the course of the past 2—3 years, trump becoming president, brexit, north korea china trade. us china trade, now the prospect of political uncertainty across europe, italian elections, i think the thing that struck me more than anything else, all of these on their own probably could be containable and manageable but we are getting to a point where there'sjust manageable but we are getting to a point where there's just so much risk, such a big cocktail of risk, that you are seeing investors increasingly concerned about investing in equity markets, we are still at fairly elevated levels considering where we were ten years ago but what we are starting to see fiow ago but what we are starting to see now is capital flow into safe havens, we are talking gold, swiss francs, japanese yen, you look at gold prices, they are at record highs against the swiss franc, the euro, the japanese yen, the

but argentina is buried in debt the i.m.f. gave my crees government a $57000000000.00 loan last year on the provision that it implemented strict austerity measures to attract foreign investment. the investment has not come the economy is struggling and the i.m.f. are due for a visit. just yesterday i spoke with representatives of the i.m.f. by telephone. in the coming days they will visit to make a review of the goals that were set out. but who cares about abstract budgetary targets when ordinary people are running out of money with price increases of more than 50 percent already recorded in 2019 it looks like there are more difficult times ahead for argentina. over in north america now where u.s. steel says it's laying off up to $200.00 workers for at least 6 months at its plant in the state of michigan back in june the company warned that softening demand and lower steel prices would lead to the closing of 2 blast furnaces at the great lakes facility layoffs call the question claims by u.s. president trump that he's reviving

the last time the imf loaned money to argentina, they end up pulling the plug argentina defaulted andd to a major economic collapse. they want to improve their image both in argentina and in the region. ofentina shows no signs recovery and the political uncertainty makes it even harder for the imf to justify going forward because you don't know ist the plan of fernandez and you don't know how macri can recover. joe: does the imf want to be in the business of changing its policies just because a vote went the way financial markets didn't like. right now, there is no indication that the country is going out of compliance. does that kind of create the impression of the imf picking winners and losers and politicizing? patrick: the imf does not want to be seen as forcing the situation or having impact on the election results. one of the criteria is called debt sustainability. right now, we are pricing in about 80% chance of a default. checkbox, itcular is hard for argentina to argue that it's debt is on a sustainable path. you're right, the imf does not want to worsen the situation. at the

justin, we want to talk about argentina. not sure how to read this. justin: that is right. the markety small of universe. faithful of worries that haunt us with regularity. argentina, here we are again. we have markets clearly under severe pressure. a little bit of stability today, but it is an early day. let's see what happens. everyone is looking to see what kind of soothing words may be off put by not only mauricio macri, the current president, as to what is going on, but also ,rom from the fernandes camp seen as the most likely next government in argentina. can they offer some sort of soothing were to suggest they will address what is a serious situation? francine: we have great charts we will get to in a second. if you saw the market falling argentinians an voter, would you change your vote? justin: it is a great question. i think not, if one had to give a straight answer. argentines do not care about the bond market. they are interested in the stock market. our problem -- they are probably most interested in the value

lisa: a cup -- in argentina thus far?tax breaks for investors and is a huge step forward in terms of how the and bets onorks entrepreneurs to increase and improve the local economy. it invest between 10000 and 30,000, money for startups and entrepreneurs. policy lots of different and programs and innovations to serve the entrepreneurial market because the president knows it will save argentina. emily: what happens if these policies do not remain in place or if they are upset as well? lisa: what we need right now is policy continuity, in order to avoid a macroeconomic crisis. we are all hoping that the current administration does stay on course and we do remain a country that is looking toward being part of the global capital market. , it'st doesn't happen going to be a big challenge for argentina, the future of its economy. we could be potentially facing another crisis like what happened in 2001, and it will not just be an economic crisis, it will be a cultural crisis. emily: talk about the kind of startups and companies

remember argentina has a long history with the i.m.f. with 22 previous bailouts as well but what i am half would be very careful they don't want to see yet another app is what they have seen what happened back in 2001 when country came up with it and look for a bailout of 8000000000 which they did and then still the country had a default because it's very easy to go out and then say ok we're going to do more spending we're not going to listen to i.m.f. blah blah blah but in all reality that is not possible because when you are taking money for i.m.f. it comes with certain conditions and i.m.f. does dictate to a larger extent how you would really perform with your fiscal policies. still to come here at the crisis at home costs a shadow over the elite holiday to kashmir is living in india's capital new delhi. hello there's still a few showers across eastern sections of china all the province on fusion a little bit better than we have seen of late there are still those scattered showers around but shanghai should be mostly dry on wednesday

argentina's frozen intimately c.e.o. mike lee says he plans to win a 2nd term despite his defeat in sunday's primary vote financial markets reacted strongly after the results with the pair so falling by more than 30 percent against the dollar. has more from one of. the day after his shock overwhelming defeat in primary elections president mackey said he would listen more he appealed to argentina's the patients for his policies to show results his address to the nation came after a day of emergency meetings firstly with the head of the central bank then with his cabinet moment i live in the oh you must to. we've had a very bad day today we're poorer than we were before the primaries we've been hit hard the dollar has gone up again with all the consequences that will have. the markets reacted to sunday's result while the government was still reeling the ark in time bay so lost one 3rd of its value against the u.s. dollar in the 1st few hours of trading stocks and shares in both wall street and one osiris took a pounding th

we are seeing stocks fall in argentina, surging bonds.e have a chart here which shows you the price of argentina's sovereign century bonds. that has tumbled by the most since 2017. the yield now reaching some 12.6%. finally, that means good news for havens. gold looking ever more shiny today, back trading above $1500 an ounce. we should be able to show you a chart over the course of this year, up some 80% this year. guy: thank you very much. let's get back to the situation in argentina. the peso has plunged to a record low against the u.s. dollar after president mauricio macri unexpectedly lost the primary vote by a landslide, foreshadowing defeat in october's presidential election and a possible return to the policies of his predecessor. airesg us now from buenos is our buenos aires bureau chief. a big surprise to the markets, reacting very violently. does the market reaction make it harder for macri to turn this one around? reporter: well, it's going to be hard to turnaround either way. it was a much larger defeat than expected, almost

monday's market meltdown in argentina is likely to have many repercussions in the region.nment tried to intervene in currency markets but there was no way to avoid one of the worst days in the history of argentina's stock market. what primary election results suggest our voters in argentina are rejecting the pro—business market reforms implemented by mr macri and his deal with the imf that was to implement austerity cuts and end capital controls in argentina. in fact, what these results suggest our voters wa nt these results suggest our voters want the return of the left—wing politicians who think argentina must itch austerity and spend its way out of crisis and a lot of market investors believe that's the wrong way forward and that's why they sold their assets on monday. a new way with doing business with huawei sta rts with doing business with huawei starts this week. wants the new rule? this new rule was mandated by congress in america and it bounced the us government agencies from buying products from five chinese companies because of security concerns “— companies bec

and he says they simply can't repay them under these conditions and argentina is latin america's 3rd largest economy the peso currency is struggling annual inflation has climbed about 50 percent and after the election that didn't help the peso plunged 20 percent in argentina stocks lost 30 percent investors had put their faith in mcrae's efforts to tighten spending which was part of the deal when he got that loan but the people it seems are disillusioned by the country's economy under mcrae's leadership so it looks as if they are throwing their support behind his challenger fernandez and in terms of explaining the crisis right now friend of the show mark weiss book for the some sort of for economic and policy research i was an op ed today in the new york times. on the question of how do we explain this crisis there but he points to something very much in the front of the minds of argentina voters which is the as you mentioned the role of the i.m.f. here the biggest. bailout agreement in their history what will the agreement play in mr current political troubles and consequently on th

selling argentina.estors sell in the wake of defeat.t macri's all the action was midmorning when we got word that the tariffs would be delayed until december 15. the intraday on a lot of these is where you see the action. the broader s&p 500, almost every subgroup higher. real estate is just about flat. we do see that there are gauge of the dow, nasdaq. tech and consumer facing companies gaining. apple was up 4% at one point. gap, l brands, everything moving higher that is getting released. as we moved to the risk on sentiment, gold is risk off. there is gold on the day. investors taking money off the table. still near multiyear highs on the price of gold. oil, despite the fact there is a concern about a global slowdown, we got a similar pop in the price of oil as the do's crossed the wire. shery: interesting to see the byasury markets whipsawed global events, including the trade news out of the white house, not to mention the ongoing clash in hong kong. we have seen president trump tweeting the chinese

we know the history with argentina.don't know how the protest in hong kong and hong kong's relationship with mainland china is goingolay out. >> you're right. this is a much bigger issue for the oveetll ma and one that seems unlikely to involve troops, military engagement by china coming over the but certainly police action. we will be watching this very closely, not only because it affects hong kong and could scare away businesses, could lead to international sanctions d worsen the trade war and really slow china's economy, which is already growing at the weakest pace inecades with impacts for global growth. but it affects taiwan.iw has a presidential election coming up on january 11th against a pro-chinese challenger versus a pro-independence incumbent. how china deals with the hong kong situation could affect taiwan as well and result in a global market ckpact. >> q if we can on the middle east, specifically the strait of hormuz, the impact of oil. wi one hand you have a global economy that's s down, which means lowe

program what is the state of argentina's economy right now. well i was i was listening you know to the to the other answers and thinking well if you print money for long enough then you push it into so many electoral cycles then it becomes a structural problem so you're talking about you know that a monetary policy no matter what stage you are within a government so i mean of course that matters to argentina and the key question right now is whether the next administration whoever it may be you know will be able to repay dead or needs to restructure the payments schedule with the i.m.f. you know it's unrealistic for argentina to face it's that payments in 20202021 so the question is who's sitting at them the other side of the of the negotiating table from the i.m.f. you know will it be precedent mockery in a 2nd administration or with will it be about the fernandes and christina pearson or so you know of course in terms of where the economy is i would say it's in the intensive care unit it's currently stable but our prognosis is reserved and i

one key takeaway on what is happening in argentina is that argentina has had a history of difficult macrois can happen in a lot of places and there is nothing cheaper and better for investors than international diversification. both for beingu with us. now let's get an update on what is making headlines outside the business world with viviana hurtado. viviana: germany is preparing a stimulus plan as a contingency for a deep recession. the program would boost consumer spending and create jobs. the plan will need parliament approval. the german finance minister says the plan calls for 50 billion euros of extra spending. two russian monitoring stations designed to detect nuclear radiation have gone silent after explosion from a missile test. critics say the russian government is trying to restrict evidence of the accident. america's business leaders are shifting their opinion on corporate decision-making. the citizens roundtable will change it purpose on the porpoise -- will change it statement on the purpose of a corporation. the shift will account for employees, customers, and society. glo

sent the economy firelight firming up staff write out the plan as i have time for the on hand in argentina just break it all down and laser color sylvan china are slow. but signal something worse to come or fix the car coach is standing by on this is a sign that the people's republic got a path showed it is willing to go and dive right in. while the trade war rages on in threatens to impact multinational businesses some companies have managed to find ways to insulate themselves and achieve profitability maersk the world's largest container shipping company recorded a net profit of 134000000 dollars and the 2nd quarter of the year beating expectations the result was due to a strong focus on improving profitability in existing businesses rather than going for volume and market share reaffirms guidance as they continue to see positive impacts of increased revenue from their supply chain management this offset the decline in earnings from sea and air freight wal-mart also beat expectations and raised outlook for the full year the company attributes its gains from its fast growing e-commerce bu

argentina bonds and stocks plunged globally following the results.na's tech start-up theme managed to flourish in the face of the economy's financial crises in the last year. prognosis now is for the start of space, giving the continued recession inflation.ing it's great to have you. so much of your investments have been centered in and around argentina. i have to ask you, what changed for you today? what changes for these technology companies down there ground? >> the reality is we've been operate argentina in the last 20 years. you've seen it all. the dollar and statistics.nflation as start-up priority, you had a deal with all of these things. operating -- reality revenues inl their nothing really change if anything you might be in a better position. problem is more for the tech ecosystem to go forward basis. venture capitalist will be more hisy of investing over reelection in october. for theterrible news country but these are still the primary and we'll see what happens. >> do we know anything about the potentially new incoming assumingt in octob

also coming up a good barbecue is part of argentina's national identity but with the peso plunging we'll show you to which lengths arjun times will go to have some solid beef from the group and new ideas driving electric mobility into the past. i'm chris cuomo welcome to the program on a day when a no deal brags it has become much more likely prime minister boris johnson will suspend parliament in the run up to his october 31st breaks a deadline he even got her majesty the queen is approval the move gives his political opponents even less time to block a potentially chaotic withdrawal from the european union. maybe it's a bluff but the consequences are already quite real boris johnson wants the e.u. to take a no deal breaks seriously forcing the bloc back to the negotiating table but with every lurch toward his october 31st deadline the pound has reacted it slid steadily against the dollar leading up to johnson's election as conservative party leader it fell after his meeting with german chancellor angela merkel failed to produce a breakthrough and then today a slide of more than one per

also on the show argentina's peso collapses after a presidential primary upset we'll tell you what has markets so scared. this is your business report i'm stephen beards in bilin thanks for joining us hong kong's airport was due to reopen early tuesday morning after being closed all day monday as thousands of protesters occupied the main terminal the closure forced the cancellation of more than 150 flights causing serious disruptions one of asia's most important transportation hubs and marking an escalation of protests that were previously limited to limited to the city's neighborhoods investors around the world took notice monday with indexes falling on the spreading political turmoil and fears china can respond harshly. and let's go now to our financial correspondent in new york jose luis to haro who is a nice to see as always so is a as we said this political uncertainty spreading to markets as well what are you seeing there on wall street. as it is it right now is stephen investors here in wall street are fearing an escalation of the bands which could trigger a financial shock a wo

argentina. we will see how that impacts things moving forward. nejra: the imf -- david: the imf -- came in with a big loan target. at appears that did not work out. so how will argentina perform within the imf framework? ristine: there certainly changes on the prospects of reform now that his future is in question. we seen the reaction in eurobond, and he wrote bond is not great -- and eurobond is not great. that gives you a sense of how investors are taking it. we will probably see more pronounced reaction when markets open during argentine hours. nejra: we could see something like a 25% drop in the peso. we also have a lot of different threads to this story over the weekend. one thing we are looking at is firms rely on revenue from china seeing their worst five-day run since 2016. last week it was all about you on fixing -- all about yuan fixing. is it still about that this week? was the focalyuan point last week, but investors have had time to take stock of where that relationship is. it will