asia dollar bond sales have been receding, the riskiest corners of the market, the development bank oflia back issuance from frontier nations in asia to a four-year high of $7.7 billion, a 58 percent leap from last year. president trump wants to set drug prices using a global index to stop what he calls freeloading by other governments. programscut medicare to match lower prices in european countries where markets are more strict we controlled. drug costs have become a major issue in the u.s. and trump is hammering the topic ahead of the midterm election. the most powerful storm to hit the u.s. territories since 1950 person and is on track for the philippines and taiwan. the typhoon passed with winds 290 kilometers per hour and dropping 20 centimeters of rain. it cut power and local authorities say it can be months person and is on track for the philippines and before electricity is restored. bruce willis's latest movie opens friday after a rocky election vote in china. the star landed on the mainland three years ago and it ran into problems. the crew did not have enough money to pay t

we have most asia dollar contracts -- pressure for e.m. currency. nikkei futures are pointing sharply lower mirroring the drop we saw from u.s. benchmarks. more pain is expected from sydney shares that as sherry pointed out, we are seeing a move down when it comes to bond yields. the treasury 10-year note retreating. >> let's get more details on the biggest plunging u.s. stocks in months. the s&p closed down. the nasdaq suffering its biggest loss since 2016. we knew that 2018 was going to be more volatile. be thected that it would bond market selloff to spark overbut it is the concerns trade. >> many would say is a combination of things. we had a number of companies all citing the tariffs. no group was spared in this selloff. the buyers typically come in at the end of the day were not there today. check out these numbers. we have the bond yield coming in just a bit but still above 3%. the nasdaq is the teller. that is the worst drop in seven years. the biggest drop since 2011. let's take a look at the stocks. this was one of the hardest hit areas. y

asia fx. jpmorgan dollar asia index. how sensitive is the dollar to the spike up in yields? there more pain to come when it comes to asia fx? i think at this juncture, given the u.s. economy is expanding very strongly and seems to be the only major economy has strong growth and a central bank that is normalizing and also sounding hawkish, i suggest there is further upside in the u.s. dollar, further upside in u.s. yields and that is a bad combination for emerging-market currencies and withia, particularly elevated oil prices, that is a very bad combination for the current account deficit currencies like the indian rupee and the indonesian peso and therefore, i think this quarter, we will see further stressors coming on those deficit currencies. khoon goh is there anything -- --is there anything you see because domestic policy makers have tried. look at policies put in place by the r.b.i., the bank indonesia is one of the more that one of the more active ones. they have been trying to be more proactive and trying to get ahead of this. comments overnight from jay powell are no

if we break 92, we can of course the more depreciation in asia against dollars.vestors cannot not usually commit fresh -- one going into the fourth quarter not to mention we have the dollar funding issue. assessment in the short-term we could see more pressure for em currencies? thinkthe contrary i do talking to a lot of investors, the start of the them fund tracking that we do as well -- em fund tracking that we do as well, levels have spiked up what a bit. it will actually find certain real money funds that will actually have hiked, 10%. tensions do not escalate given that a lot of pessimism is already priced in, we can actually see a near term rebound in risky assets in salvation particularly. shery: does that include the rupiah? because of the imf and the inflow, a foreign currency -- of form currency, -- of foreign currency, how vulnerable is the rupiah going forward? >> it includes the rupiah as well. the one problem indonesia has consistently been facing is the deficit. even though we have actually seen bank and -- like of indonesia hike rates, the fact of

. ♪ asia's dollar bond sales are suffering in a trend set to extend into 2019.atility in emerging markets and the recent surge in u.s. treasury yields. david: the get the outlook. our credit reporter is with us in our studios to talk about the outlook. >> [indiscernible] hit $65 billion in the first quarter which could be as big as 46% compared to last $34 billion. this is according to bloomberg survey recently. some of them are expected in market sentiment to weaken, being the new year with credit suisse expecting the year will be challenging for lower rated credits and market turnaround is unlikely. bankers soare pessimistic? you mentioned they are high-yield. why is that important? main reasons. ongoing volatility around em markets, political uncertainty and concerns on growth. the second is -- the trade tension in the united states and china which never helps market sentiment here the third with highest hitting the last week since 2011. the three sectors combined for the perfect storm. to test the market sentiment across asia. rishaad: you get perfect storms

dollar. been investing in asia for decades now. set ofseen circumstances like this and where do you put your money? >> we have a little bit more cash than we usually do, but that is in u.s. dollars. the most undervalued area in the world today is in asia. my guess is there will be a settlement and the u.s. will refocus away from foreign policy andmore on infrastructure that money will flow back into asian stocks. shouldn't you also be betting that a lot of money will be put into play in the u.s. economy? wouldn't that be a safer bet or d believe that local gridlock could temper all of that? gridlock is the wave of the current situation and the future. is notek's election going to be decisive in any way. i think the arguments between the extremes on the right and left will continue for the next couple of years. on emphasis may be more domestic infrastructure spending, there is not going to be enough action. we have a huge federal deficit and it will get larger. that will concern a lot of people. that we haveation seen created over th

asia. it is a dollar strength story.the euro japanese yen and you have seen that break through the 129 handle, a traitor telling bloomberg this is due to macro sales and stocks in the market being triggered. the aussie dollar at multiyear lows getting toward the lowest level of 2018 against the u.s. dollar on this dollar strength and weakness coming through in commodity markets. we're watching the indonesian rupiah which is weaker against the dollar ahead on the rate decision. i of indonesia not expecting to move its rate, the key rate of 5.75%. saly inuliette singapore, thank you so much. we are asking the question on equities that can last after the government's latest maneuver after two days of more than 4% in chinese equities, losses in china but across asia. , andt in touch with mliv to that question, give our team something to think about, start a conversation. let's get the bloomberg first word news. the turkish leader is expected to address parliament about the murder at the saudi consulate at 11:45 a.m. local ti

nothing the americans can do to stop the if you like the you on suit seeing the dollar as the currency of trade. throughout asia and so the dollar effectively has lost that story and this is the problem you know they can't force it anymore there is a parallel that i would like to draw to your attention max and that is if you go back to when the london go pool failed in the late one nine hundred sixty s. the reason it failed was because there were too many dollars abroad side america as a result of the vietnam war before that it was the result of korean will that was all financed by dollars which were just export it and given that it was the old french indochina we have it now was it was france that ended up with an awful lot of dollars france said we don't want dollars anymore we're going to redeem them for goat which they were entitled to under the bretton woods agreement that was a major turning point when it came to the dollar i think that we're facing a similar situation today obviously things are circumstances a very different but you've got all these dollars i was referring to earlier which are in foreign

dollar yen is flat. a number of these emerging-market currencies in asia decline against the dollar. euro rate declining. looking ahead to whether we will get a deal from brexit negotiations. look at what is happening in fixed income. the treasury rate been steady. a move, for basis points. what we are seeing in commodities, shanghai, some of those bid. >> thank you very much. moving to lower costs. aiming to save 200 million years by 2020. described that target as ambitious. the ceo of the company, joining us. profite a goal of 15% margins by 2020. do you feel confident about that? third quarter showing we are definitely moving in the right direction. we added two percentage report's -- points return on sales. we are 12.1 or 12.2. we took a big step. , we feel much more encouraged getting to these targets. the thirdly because quarter had a significant amount of head woods -- headwinds we overcame. great to speak you, thanks for joining us. talk to me more about your efforts to lower cost. how are you going to achieve that? thisen we embarked on a-20 strategy, we laid out bridge from

dollar against em currencies, particularly asia. he euro at this level to the dollar, in the 1.14 21.15 level. we have been adding to euro recently. we are looking at value opportunities in em but our longer-term view is quite challenged on the macro side. we are being very careful on m opportunities. -- e.m. opportunities. guy: what do you think of oil at 85? what would be the implications if we see a further move up? regina: that is a tax the global consumers and back to the em theme, for countries that are net imports -- importers of oil, that will be an issue. one of the things you look at is the moves in fx, particularly for the net employ -- importers, have been underperformers. guy: what do i do with my stock market portfolio if i believe my rates are going higher -- rates are going higher and the fed tells me stocks are going lower? we are flirting with 2900 on the s&p. would you be a seller? regina: i am not an equity investor, but one of the things we see is that in rising rates and a steepening yield curve, financials have

we've estimated that for every dollar invested in coal in asia, that dollar will cause $10 of climatege in that region alone. so what do you call that? you call it economics of self-harm. we can't do that. so according for the end of -- we are excited about the momentum that has been generated because climate change is a political issue, it's an issue of people power, we need people power and that's why we're so excited by the marches. [applause] >> emily: kevin starbucks has a lot of constituencies. you have coffee growers, customers who love their straws. you have shareholders how do you balance where to invest your time, energy and your money towards sustainability, given that you are a for-profit company with all of these allegations. allegations. >> well certainly as we've grown over the decades we now have nearly 29,000 starric bees stores in 78 countries, over 330,000 starbucks partners who proudly wear the green apron serving 100 million customers a week. we are a contemporary that in the fabric of our mission, our culture, and our values, is the belief that the pursuit of pro

asia. sluggishaland, we had home sales come in. the kiwi dollaring a little bit of rebound after the commodity linked turn sees are getting sold off against the dollar overnight on account of the worsening trade tensions. this,lia is looking like downside extending close to session lows. were also seeing the aussie dollar keeping its head above water. remember the tech selloff was one of the big drivers, the nasdaq 100 seeing its worst day in seven years. ont is likely to weigh markets like soul as well as tokyo. we also had a three-week high for the japanese yen. trade will resume in tokyo. more to come on the markets. this is bloomberg. haidi: this is "bloomberg daybreak: asia." says asiannext guest fx will likely weaken further against the dollar. thank you so much for joining us today. let's take a look first at this chart on the bloomberg. i want to show the comparison asiann asian fx and nine em currencies. on-asian currencies are paring losses compared to asian currencies. volatility still remaining pretty high. what are the headwinds for a

just going to your concerns about dollar asia, the imf cut world trade forecasts from 5% down to 4% inld trade might even grow slower, close to 2% in 2019. tom: bring this up if you can, jason. dollar inl in u.s. white. in orange india. everything we know about history is this cannot go on. we saw it last week with subsidies for the poor of india for fuel. bali,annot ignore this in can they? but it, they want to, takes some time in india. sorting out what is a very politically charged issue like subsidies to fuel is something that will probably not be determined in the next 12 months. that is pressure on the immune economy through higher fuel prices and the stronger dollar. this is about the strength of the dollar and quantitative tightening. that is where the pressure pushes offer these emerging economies. francine: this is not going away. the dollar is going higher. what do emerging markets have going for them? >> in asia, they have much stronger economies then in 1990. the reference point then was thailand, a complete disaster. that is not the case in south korea, singapore, etc.. y

asia, beyondgh on the dollar, is that the euro price is high.hatyou would require is the dollar weakens and that helps to balance the high oil price. front, we are not that supportive of our view because we think that the oil prices likely to go further up. brent to goll for above $100 by the first half of next year. rally, you need the domestic picture to improve. saw the spring imf meetings in washington, d.c. be the turning points for emerging markets. what do you think we will learn from the bali meetings? with hindsight, the last imf meetings in april were a big sell signal. emerging markets were crowded. at this stage, the tourist investors are those that are not dedicated to emerging markets but have largely exited. dedicated emerging-market investors have the same amount of money invested at the beginning of the year. at the meetings, the key topic is going to be about what scope torging markets have overcome the tightening that is happening in the developed world. the number one topic will be how , givenn china stimulate its constraints

dollars. well mor warm welcome. majorgo to one of the carmakers in asia. hyundai delivers their numbers. of8.9 billion in terms operating profits. that is significantly below the expectations that was the estimate. below thegnificantly earnings estimate. the third quarter earnings fall on safety cost. weakening emerging mean -- market fx. sales, pretty much in line. 280 eight. the operating profit is where the demolition derby took place. e.m. fx. this is really the key issue, along with safety costs. from autos, to a tippo. inbev.let's move to ab -- the market, by the way, watching for a possible dividend cut. on the full-year, into dividend eurohare, $.88 versus one year on year. quartere, third adjusted, up 7.5% to read that misses the estimate, 10.6% gain. adjusted eps, $.82. the estimate was $.98. third quarter organic revenu rising. adjusted eps and the organic revenue. lower year on year as well. for your cap fax -- full year. >> this is a company in paradigmn toward the rolled out by everybody. net reduction of employees globally. the transition far from done. the top line for th

asia is waking up, coming online. we are waking up, higher yields, stronger dollar. yvonne: once again, look at the board. the rest of asia. it really was a strong data we got from the u.s. overnight. how het to comments over doesn't see neutral yet, though we see capitulation in the bond market right now, but that is the move. the gmm, let's see what we are seeing across most indices. the hang seng, down 1.5%. for the -- 400 points lower today, seems like the cospi is falling and singapore, down 1%. it really is this stronger dollar story finally catching up with a pick up in yields we saw. it

dollar and is worth -- one of asia's worst currencies.vernor highlighting what he sees as relative stability in terms of the growth picture in china, employment and inflation. we will get inflation numbers producing prices out, and we are expecting as well third-quarter gdp numbers towards the end of this week. we can get a better idea how those data points are shaping up . the pboc governor in the past stressed amongst other officials the currency will not be used as a weapon in the trade war. they would not be using devaluation to push back against the u.s. tariffs and give exporters a heads up. it was interesting to get his views on the sidelines of this sonnet -- haidi: china's ambassador to the u.s. gave a television interview. what is the messaging he has been wanting to get across? interesting that he chose fox news, president trump's favorite, to give a rare interview. he came out with this similar line, familiar from chinese officials that we have heard for many months, saying china did waswant a trade war but it forced, compelle

my last point, we've estimated that for every -- that for every dollar invested in coal in asia, that climate change damage in that region alone. so, what you call that? you call it economics of self-harm. we can't do that. so we're calling for the end of coal. we're excited about the momentum that has been generated because climate change is a political issue, it's an issue of people power. we need people power and that's why we're so excited by the marches. [applaus [applause] >> so, kevin, starbucks has a lot of constituencies. obviously, you've got coffee growers, you have customers who love their straws. you've got shareholders. how do you balance where to invest your time, your energy and your money towards sustainability, given that you are a for-profit company with all of these obligations? >> well, first of all, it's a privilege to be here today and you know, as you point out what would a publicly traded company like starbucks being at a conference like this? well, certainly, as we've grown over the decades we now have nearly 29,000 starbucks stores in 78 countries, over 330,

sophie: welcome to "daybreak: asia." ♪ haidi: asia-pacific markets are set for a muted open. the dollaro week low. we are looking to the latest chinese inflation data. the numbers should indicate the fallout from the trade war. shery: mike pompeo seeks answers on the missing journalist in saudi arabia. extending its biggest decline since march. we are seeing positive sentiment extended asia in some markets. sentimentme positive is coming through. kiwi stock are slippings. the kiwi dollar is jumping. new zealand inflation are closer to the target poised by its central bank. it is in the rush to raise rates. -- no rush to raise rates. the yen losing a little bit of ground in japan. yen isup is saying the the only standout save haven currency. -- safe haven currency. we have president moon on a four-day trip to europe. clinched $600as million worth of investment deals with european companies. s&p mini futures gaining ground. let's take a look at stocks we are keeping an eye on in seoul. we are keeping an eye on luxury makers. one stock is down half a percent in tokyo. tbank is reversing so

dollars, a deal adding $115 across to assets managed the u.s., australia, and asia, and also celebratese profitable domestic banking business. baidu, with a fear consumer spending could be hit. china's biggest storage provider and sees up to three point billion dollars in the december quarter, and they dominate desktop search in china, but questions over the ad outlook as competition grows. energy company has reported rising third-quarter profit thanks to higher oil prices. the tro china -- throw china -- atro china rose, but it is contrasting story at sinopec, where they seem to be losing momentum. is also challenging profits at its refining arm. leaders have vowed to offset trade tensions in the slowing economy, but president trump now threatening tariffs on all imports, beijing's resolve is being to the test. will get the pmi numbers out of china in just an hour or so, but this is the latest read on that elegant ants between policy support and also trade tensions -- read on that delicate dance between policy support and trade tensions. reporter: smaller and medium size businesses are

manipulator, but -- david: and you have the stronger dollar, the fed minutes, yields on the way up in the u.s.. this is what we woke up to in the asia-pacific with the two and the 10 and the curve steepening so about 31 basis points. it is a stronger dollar, higher yield, and that use of the weaker fixing. it was weaker compared to yesterday and compared to the estimates from analysts. essentially, this is what tells you. 320 on the u.s. ten-year and about 2.90 on the u.s. two-year. back to the treasury report overnight, no one was labeled a currency manipulator, but these four currencies are on the watchlist for various reasons. if there was a common denominator, it was that they did meet -- didn't meet all three criteria out of the treasury to be labeled one. might not be on the watchlist in the next review will be the indian currency. broadly speaking across e.m., japan out of the equation come you have current account deficits. surpluses in others like korea, but still, a massive trade surplus with these countries with the u.s., but the current accounts themselves for those countries have also been narrowing. giving less reason

asia with adam haigh. we've seen the aussie dollar gain ground president trump's comments that we could see china and the u.sing a great deal. yet the aussie dollar continues to attract bearish these, including from money managers. the australian dollar is still in a very tricky place. ultimately that's the big from a big money manager. it is jiving with the view we've seen in the market for a long time. people have been heavily short the australian dollar and shorts on the aussie dollar remain around three-year highs. a great chart for you here that leverages the data we get on a weekly basis and shows how short the market is still on the australian dollar. it's really about poor consumer confidence, it's about the weakness in housing market we are seeing and increasing disparity between the local central bank here in australia that is very much in a neutral camp of having to keep rates very low and support an economy where inflation is not particularly problematic against the fed that continues to hike. the rba very much unmoved over the next 12 months or so. clearly the argument against the australian dol

we are seeing action in asia as well you can see there that the nikkei in japan, 1.25% gains there helped along in part by a stronger u.s. dollar and a weakening japanese yen

dollar strength across the board across some asia assets. still seeing some decline after reports that the u.s. treasury lee terry is looking at ways to make it easier to label a country a currency manipulator, isch could mean that china not out of the woods when it comes to getting that label. we are seeing the likes of the aussie dollar weakening. we are hovering around that 694 level. let's get you closer to what we are seeing and the action in china. shares close to 200 points. coming back quite nicely balancing 3.5% at the moment. david: to supplement what she was mentioning. have a look at the treasury markets right now. it is flatter compared to thursday. it is perhaps the other story, the bigger story, relatively. 32 on your five. we are talking about this chinese story earlier. they have been raising debt, but it is where the date -- that is being used. she talked about how you are getting local governments raising debt. it is actually earmarked to compensate farmers. let's discuss all this. running us on set, the deputy head. nice

dollar story. picture when it comes to asia fx. inflation bid, higher than expected. japanese yen, not doing a lot. stain around the 112 level. aussie dollar as well. the aussie dollar, we have been talking about these rate differentials with the u.s. and australia. we could see further weakness when it comes to the aussie. downside, 0.1%. want to talk about the korean won. across asiae gains fx. hoping things.nd policy decision thursday. a lot of mixed reviews on what they are going to do. a hike or a hawkish pause? we have seen indications of that. inflation picking up again. we are trading around 1123 for moment.at the the prime minister said to meet with donald ttusk. >> let's get more on the fx story. you look at where the kiwi is moving. -- i willr head on show you this cool chart inspired by one of our guests. rates,s about real closer on the 10 year, that will still remain the case. nowhere to put your money except the u.s. dollar. is paul allen ready? not yet? i have been told that yet. toolds what life teeth -- not yet. told not yet. if the democrats actually

dollar. they should be out performers in the g10 space. new zealand, asia'sy market that remains in the green this year, but seeing losses of just about .10%. this is bloomberg. ♪ shery: i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. you're watching "bloomberg daybreak: australia." the ceos of the biggest banks are being questioned in a public vendors repeatedly pursue profit ahead of customers interest. matt says he's committed to restoring trust. david, the interim report, as you say, was long on an exposition of what happened, but not much in the way of actual recommendations. it feels a bit like a toothless tiger at this point. david: i wouldn't go that far, but it was full of questions and not so many recommendations. the final report is due in february next year, it will be full of recommendations and it will be up to the government whether -- to decide whether to adopt and implement those recommendations. i want to put up a chart to look at the teflon effect that australian banks seem to have, even in the face of some of this extra

the indian asia -- indonesia theat a -- rupiah and aussie dollar [indiscernible] in the pasta shieldew days even with btp selling off but it is lower. let's get what is happening in the fixed income space. btp yields ratcheting higher. the 10 year yield is on a 338 handle. we are seeing some of the core bond bid if you took a look at the bond space. and in commodities, gold is bid and we said brent crude above 85 dollars a barrel, something we are keeping an ion. on.n eye anna: the u.s. is setting itself up for a protracted economic war with china. casting a shadow over beijing and hong kong. we have seen oil hovering near a four-year high. brent crude cracking $85 a barrel. joining us now from singapore is mark cudmore, bloomberg and strategist. yesterday we were talking about whether the deal around trade that we have seen in north america countries strike. whether this tells us about the willingness to do a multilateral trade deal and this could be good for china. progress was possible, deals could be done and now we have a slightly more negative spin on things. mark: it depends o

it's flirting with the 7 mark against the dollar — a level it hasn't seen since the global financial crisis. our asiakarishma vaswani takes a look. the chinese currency does not work like other currencies. the chinese central bank sets a guiding point to eat every day and that sends a signal to the market where it expects the yuan to go. these days it is edging closer to the seven mark. this shows how much one us dollar buys. this is the last time it hit seven, ten years ago during the global financial crisis. and this is where it is now. now, there is no magic about the number seven, it is just is no magic about the number seven, it isjust a is no magic about the number seven, it is just a psychological point for traders. the yuan weakness is down toa number of traders. the yuan weakness is down to a number of things. partly the strength of the us dollar and the fa ct strength of the us dollar and the fact that the federal reserve has been hiking interest rates recently but it is also because the chinese economy is slowing down. worries about the trade will pushing the currency lower. —— the trade w

when i get questions about em or asian debt, we have bond funds in asia that yield 10% in u.s. dollarss all about india, indonesia, china, asia, all about trade, international investors, the headlines will not help the perception of risk of buying into asia at this moment in time. people are waiting on the sidelines. to pick up on something i would say -- $85, russia looks fine. vladimir putin is laughing. every day his bond market is being refueled with high oil. alix: president trump saying please out more. and then sanctions. -- pump more. americap, the bank of chief technology officer will be joining us, not only with women in executive roles, but we will also discuss cybersecurity. this is bloomberg. ♪ alix: this is bloomberg daybreak. a little bit of softness here. the real interesting conversation is happening in the bond market. yields dropping from their highs of the day. now only up by one basis point. remember the huge move we saw in the last two days of 16 basis points? now we're up by aboutnow we're . coming off the flattening high of the session. jobless claims are breaki

the dollar is moving up with the exception -- the hong kong dollar and the japanese currency. a haven trade. asia 1, 51. 148, 77. takes us to that 20% job -- dropped from the peak. 1% from that level. it comes back to what happened overnight into where we are the bloomberg dollar index back to levels last seen in the summer. in august. it will take a little bit for us to move above that and take us all the way back to the start of 2017. dollar, retaking the top spot on the list for asian investors. this is bloomberg. ♪ this is bloomberg. ♪ yvonne: battle of the charts. let's bring in our two competitors. tracy alloway and michael wilson. we will pick their best charts against each other. viewers can access the charts on the right side of your screen. the bloomberg function feature just right there. startd: i think we will off with michael. michael, what have you got? u.s. chart going back to april, and it is showing that it is trending lower. nice bearish trend we have had a go at 70-40 already in october. trade might becoming crowded. i have overlaid this chart with a positioning that shows up o

this year it has been more exclusively dollar asia. in general, i think em will be under pressure.point, i think the chinese authorities would like to break that psychology of cell china when you have the currency selling off, equities selling of your i think it is a psychological level for them. tom: very good. chris turner with us and bob janjuah as well. agoo just published moments thoughts from the president. there is a stunning statement by the president of the united states, by executive order he wants to do away with so-called birthright babies. we will have much more on this in our next hour. on economics and chicago economics, the chairman of the president's council of economic advisers, austan goolsbee in the 8:00 hour. this is bloomberg. ♪ tom: "bloomberg surveillance." one week to the midterm elections in the u.s., and the president is in full statement mode. this is a bombshell from his interviews with jim brendan ryan over at axios. they published moments ago that the president states by executive order he will do away with so-called birthright baby citizenship. this

that country is offering billions of dollars in infrastructural loans to governments from asia to africao europe and even latin america. loans arerms of those ok at best. and the benefits, invariably flow overwhelmingly to beijing. , which took lanka on massive debt to allow two yearsbuild a port ago that country could no longer afford its payments, so beijing pressured sri lanka to deliver chinese hands.to it may soon become a chinese base for the growing blue water navy. within our own hemisphere, beijing has extended a lifeline to the corrupt and incompetent maduro regine in venezuela that has been oppressing its own people. pledged $5 billion in questionable loans to be repaid with oil. that country's single largest creditor, saddling the country with $50 billion in debt. even as their democracy vanishes. beijing is also impacting some nations politics by providing direct support to parties and candidates who promise to accommodate china's strategic objectives. chinesest year alone, communist party officials are convinced three latin american nations to sever ties with taipei and rec

dollar, as it's being called today. is that causing a lot of pain in fx markets and elsewhere in asia? >> absolutely. day is all about the dollar yuan exchange rate. we saw a surge this morning. the fixing by the pboc with that much higher than people expected. move thatuge triggered moves in the aussie dollar and other currencies today. pboc has been on the wires this afternoon. a bit of job owning to strengthen the yuan slightly. the remarks,ok at they are shifting the blame at the u.s. they say the reason why it is weak is because the u.s. dollar is strong. and the strength of the u.s. dollar is because of the fed hiking rates, the strength of the u.s. economy, trade wars started by the united states. it is causing disruptions in emerging markets. really the pboc is doing a good job of shifting the blame back to the united states. if there is somebody trying to say the yuan is weakening, they will say, no, we are weakening in response to something else elsewhere in the world. from them and has caused volatility in the fx market today. is it inevitable that we go through seven year mark, and if so,

want to get your opinion of the wall street journal report this morning that billions of dollars in fines from asian america i shouldn't say fines but taxes can come on these big tech giants because that would look to tax their revenue instead of their profits. >> the global first question the global tax and regulatory changes happening to tech stocks is one with of the reasons they're not doing well right now. they've gotten kind of easy ride for several decade both regulatory and in taxes waiting to shift earnings around those gory days to coming to an end quickly as far as what will say we've with had a lot of great earnings reports this quarter and not slaving slide. they are scared that end is here and take more than just one tech company got earnings led expect instagram to look goods and facebook not so good and apple sell expensive phones to help but it is not going to turn around this slide and tech stocks take more than that. a real shift in confidence. >> melissa do you think these worries -- that are impacting stocks are spilling over into other asset classes like commodity and currency

today, that country is offering hundreds of billions of dollars in infrastructure loans to governments from asiarica to europe and even latin america. yet the terms of those loans are opaque at best, and the benefits invariably flow overwhelmingly to beijing. just ask sri lanka, which took on massive debt to let chinese state companies build a port of questionable commercial value. two years ago, that country could no longer afford its payments, so beijing pressured sri lanka to deliver the new port directly into chinese hands. it may soon become a forward military base for china's growing blue-water navy. within our own hemisphere, beijing has extended a lifeline to the corrupt and incompetent maduro regime in venezuela that's been oppressing its own people. they pledged $5 billion in questionable loans to be repaid with oil. china is also that country's single largest creditor, saddling the venezuelan people with more than $50 billion in debt, even as their democracy vanishes. beijing is also impacting some nations' politics by providing direct support to parties and candidates who promise to

belt-and-road initiative where they're talking about spending up to a trillion dollars building infrastructure in southeast asiasting and trading in ways that show there is another way of improving people's lives than just taking chinese money. >> max, does it strike you that -- is the administration and parts of the administration that want a cold war with china? is that -- where do you think donald trump is? this is going to be the big story if we look back if it turns into a confrontation with china will be this new cold war. >> i think the administration is in a state of confusion about china as they are about a lot of issues, fareed. donald trump's primary beef with china seems to be that they have a trade surplus with the united states so they sell us stuff americans like to buy. but guess what? the trade surplus is going up under trump not down. now there aror people like steve mnuchin who is working on the theft of intellectual property which is a more legitimate issue but guess what happens? if china meets our demands and stops stealing from american companies china will become a more congenial place f

asia. the chinese yuan is inching closer to the psychologically important level of seven to the dollar.ld bloomberg thinks the currency is at a reasonable and equilibrium level but he is still preparing for the worse. for more on this, we are joined by ken cheung in hong kong. also still with us is isabelle mateos y lago from blackrock investment. let me start with you. we have seen the chinese yuan move largely in line with u.s. differentials. we have this chart showing the differential in blue and the dollar-yuan rate in white. this is mostly in line. and you take a look at the direction of the yuan, how much of the weakness that we see now --we continuetion to see trade tensions? course, we see the renminbi in the picture because of the differences between the pboc and the fed. on the other hand, the triggering tensions is imposing uncertainty on the chinese outlook. expresssaw the pboc interest in the exchange rate. it looks like the renminbi is level of seven. on the other hand, the pboc just said the renminbi is at a level an -- is level and at equilibrium level. goes, wille yuan

asia. we are asking about the dollar. the greenback down again. live blog question, missing in action.he dollar peaked? let us know your thoughts. read the latest from the team and join in on the conversation. let's get a first word update. >> thank you, anna. donald trump has says he will chair but -- he says he knows monetary policy better than powell and his team and he thinks what they are doing is wrong. these are a change from recent white house policy. the advisor says he is just having fun. he has never, never attacked strategy, hen or has never interfered with it. he is giving his opinion. it is an informed opinion. should listen to what the president is saying. but the fed is independent, we have always said that. advisedury staff have niminution -- steven mnuchi is not manipulating the young one -- yuan. issue a he could different finding, it comes as the trump administration prepares to issue closely watched report on foreign currencies. canada is applying quotas and a tariff on steel from china and elsewhere. it aims to avoid becoming a dumping ground for steel. the trudea

." >> asia-pacific stocks looks at first small gains after wall street edged higher. the dollar pushes the end to its weakest this year. theresa may sends up her critics with calls for pragmatic brexit. and the generals on cruise control. a long look at weimar. let's get you started with a check of how markets closed in the u.s.. stocks were mixed. the dow ending at a record high. the s&p 500 gave up all its earlier gains. we saw yields spike. we saw a rate sensitive shares weigh on the benchmark as well as financials leading the gains. we have the 10 year yield at the highest level since july 2011. yields following this, so let's see how it is translating in asia. >> we have headwinds in the making. asia stocks could see modest gains. nintendo lower set for a fourth day of losses. higher oil prices to contend with. a stronger dollar. could be struggle city for asian currencies today. the end back above 114. that could provide stocks support in tokyo. the korean yuan could be the whipping boy. the kospi could be looking at gains at the open. we could see the asx 200 up the head

together they're worth eight point nine trillion dollars north america remains home to the largest number of billionaires but second place goes to asia. china now has more than three hundred billionaires. most of them are intrapreneur is like jack ma he founded on line retailer ali baba two decades ago now the company has yearly revenues of more than thirty billion dollars. the e.u. is moving to counter the growing mountain of plastic waste on land and waterways europe currently recycles only a quarter of the twenty five million tons of plastic waste it produces annually now e.u. lawmakers say urgent action is needed if you need the. eight billion tons of plastic produced in less than sixty five years six billion tons of waste a figure speak for themselves more than four billion tons for europe alone the oceans have become garbage dumps and they're dying. and every minute the equivalent of a truckload of plastic waste is added is slow decomposition means that it can stick around in the environment and damage marine life plastic straws for example get stuck in turtles are ways other products when it just it can kill seals and seabirds