bank of china being the most. ll see a chart which will show you the difference between exposure between bank of china bigger fiver chinese banks. bank of china derives about 1/5 of operating income to banks overall. basically hong kong is the biggest offshore market. they have about 7% of the total assets here. what is going on in hong kong may be emerging in the results for the next few quarters of the year. back to you. paul: thanks very much for joining us. they earnings, china's oil a first halfd up of oil explosion and punish refining. making giant some profits slide. our china correspondent joins us . run us through the details. tom: i will give you an overview because there's a few different factors at play here. all we have is pressure on these companies to, as you say, increase exploration and production and spend very heavily. unlike their counterparts, the likes of chevron or royal dutch shell, for example, trying to keep costs under control, they are being pressured by the government to increase produc

of these weighing on them. this is how the banks are looking right now in terms of their price ratios. paul: a couple marks ago. bank of chinaore to go. think of china could see it -- the bank of china could see external pressures as well. rosalind: take a look at the estimates. the last two big four banks are yet to post earnings. these are banks which have exposure to hong kong. a very tight relationship between hong kong and the chinese finance communities. if you look at this board, you will see the actual explosion the bank of china. that is the most exposure to hong kong, getting about 1/5 of its revenues from hong kong. unrestoing on rest -- may hit it. retail sales dropping. not thatnment is optimistic about the economy going forward for the rest of 2019. the bank of china may be one of those that feels the impacts of that going ahead in this year. back to you. paul: rosalind chin in hong kong. we will have some more analysis on this chinese bank earnings a little later with the asian bank research cohead in about one hour's time. china's oil majors wrapped up the first half but rewarded exploration and production an

clearly they felt something today because the people‘s bank of china, when the markets openedin bank set a reference rate for the yuan that was slightly stronger than expected, but major indices are all down. people are seeking refuge in safer areas, in safer assets. bn is —— a yen is particularly strong. and gold is strong as well. people are even looking at cryptocurrencies, bitcoin is trading at around $12,000 at the moment. i think investors are starting to grasp that the trade war between the us and china will be quite a drawn out. it is not going to bea quite a drawn out. it is not going to be a quick fix but a long, drawnout process. i think that is really worrying investors around the world. thank you. later, we will be live to our team based in singapore for more on how markets are interpreting this latest move on the pa rt interpreting this latest move on the part of the us treasury. also to come in the programme... still to come — meet the big beasts of transylvania. why the european bison is making a comeback in romania. the question was whether we want to save our people

following on from that the people's bank of china basically set the rating so that their currency was currency was stronger versus the us dollar and that shows china is not into this idea of weakening the currency as much as others are accusing them of. let's look at europe quickly. i ahg shares down. earnings news from rolls—royce engineering, their losses narrowed. boo—hoo making the bid for karen millen, there are a lot of corporate stories. you can look at the business live pages. what is ahead for wall street? all eyes will be on us financial markets on tuesday after a bruising trading day on monday. the earnings reports from companies may offer some traders respite from the trade tensions between the us and china. 0n the topic of company earnings the home of mickey mouse, cinderella will be reporting on tuesday. it was the success of the final avengers film that will likely push revenue for walt disney for the quarter. that said, investors may also see a drop in profit, a result of the costs the company is absorbing to create its new digital services. but thatis create its new d

of 25.7 billion. taylor: i'm going to stick with china in our asia and focus -- asia ahead focus. the people's banktaking a step toward rate reform. tomorrow, the move to change borrowing costs as the economy slows. shery ahn is here with the story. they talk about the loan prime rate, which is what households and consumers use, but now perhaps being tied to the pboc rate. analysts arewhat calling a de facto cut without really cutting. we continue to hear this rhetoric from the pboc that they won't go all out when it comes to monetary easing, and finally we are seeing these tweaks to provide more liquidity to the system. 9:30, everyppen at 20th of the month. it will be really interesting to see, we will be watching. because this is likely to be lower than the benchmark interest rate, which has stayed at 3.45% since over. the likelihood is that it would come lower than that. romaine: if you are an investor, you have to see this as a good move because doesn't give more sway to the market? shery: more flexibility, and hopefully that will follow the market moves more closely. -- thee the fed comedy ecb

in the last couple of hours, china's central bank set its official yuan midpoint rate below the key levela similar move earlier this week triggered a selloff in the global markets. if you recall, the dow in the us lost over 700 points that day. let's go to our asia business hub, where shara njit leyl is following the story. sharanjit, tell us shara njit, tell us about sharanjit, tell us about today's move on the chinese currency and the trade data that's come out as well. that's right, sally. it's really interesting because the central bank of china set its rate again reasonably weakly, but asian markets seem to be shrugging it off making slight gains. part of it is there to — yuan slight gains. part of it is there to —— yuan is stronger than most a nalysts —— yuan is stronger than most analysts expect, saying the chinese central bank want to limit declines, including reassuring foreign companies that the company won't wea ken companies that the company won't weaken too much. china's daily fixing has become a closely watched event after the weak reference rate was set on monday, and that

today, they have recovered slightly and that is because the bank of china take the currency slightly can be short—lived. here is this tweet. let‘s cross over to new york as michelle is monitoring all of this. explain to us what is china doing yesterday, the markets are very unhappy in china seems to be backing down a little bit stop is that right to say? the noises coming out of china‘s central bank seem to suggest that they will not devalue it against the dollar any further and that it was a reassuring message that it was a reassuring message that certainly went down wealthier on wall street and then theyjust closed on the united states, it is a far cry from yesterday where you may recall markets down substantially, or down more than 2%, the worst day of the year so far and the industrial down more than 700 points and at one point in the day, now you are looking at a little bit more of are looking at a little bit more of a section of 311 points, is not regaining the losses from yesterday but certainly a much calmer move on wall street compared to the 2a hours ago. michelle in new yo

coming up next, bangkok communications is the first of china's big banks to report this week. sults and discuss what we can expect from its rivals. this is bloomberg. ♪ paul: china's bank of communications -- bangkok communications posted net income growing nearly 5% from a year earlier. that's the first of a string of bank earnings this week including the so-called big for -- big 4. >> generally, there is growth in bocom, buts for growth is somewhat cap. as we take a look at the numbers, you see growth in lending and fees doing well, but there has been a surge in bad debt charges. we also saw operating debt expenses climbing. net margin widened from a year ago but didn't or three basis points and the concern is this will continue into the second half. you see there is income growth, but the return of equity is improving slightly. it has been dropping since 2012, largely because banks have had to increase bad loan provisions and growth capital, but it has increased slightly in the second quarter. would those results compare with what is expected for china consortium bank which

we know that the people's bank of china, each day essentially they set a rate for the yuan, allowingithin a band against the dollar. they have allowed that to slide below what has been a psychological redline, a key seven yuan to the dollar level, it is the first time it has been that low since 2008. there has always been offshore chinese currency used by investors and banks, which fell to a record 7.09 against the dollar. and that move by the us treasury to label china currency manipulator has not helped, as it is the first time they have been given that label since the 1990s, when china was also the target. the us government will have to seek negotiations with the government accused of the manipulation, but we know that they have already been engaged in trade talks for more than a year now, and all of this, as you said, is leading markets lower, driving investors to safe havens like japanese currency, the yen, which is near seven—year highs, which is bad forjapanese exporters who need to repatriate their earnings, and gold, another safe haven, is also rising. markets very much stil

china tell you this, would like to make a deal very badly. tralow, many of the c bankseacting to concerns about slower global growth because of those trade tensions between the u.s. anda. ch it was exacerbated monday when china's yuan, its currency, hit its lowestga levelinst the dollar in a decade. sinc then china worked to stabilizehe currency. as eunice yoon tells us, today was no different. ♪ ji >> reporter: b is sending the signal if there is a currency war it won't be because china. the authorities here today were intervening and managing the maets in order to hold up the value of the currency. first thing this morng in the mainland chinese markets, the people's bank of china sethat it calls the midpoint at 6.996 to the u.s. dollar, just stronger than 7. the way theorystem here is that the central bank fixes the value at the start of trade every day to influence trading. currency traders were also talking about reports that chinese sete banks w stepping into the market, both here in china and offshore, to support it. this is another standard way that the governmen

the you wanted steady today as people's bank of china set the daily fix stronger-than-expected.ith us now is our emerging market strategist. in some ways the currency wars will go on despite what china does. >> i don't think they are over by any stretch of the imagination. if you look at basis, i am talking onshore, offshore china you want basis. unit emotionally -- initially mushroomed on friday. it is come back down to the 200s but it is still one standard deviation of the five-year -- five-year average. you should take that in conjunction with what's going on in the rest of the world. in conjunction with the trade data that was not very good. it was better than expected but you are seeing the pivot on the part of china exports away from the u.s. toward the eu. imports continuing to fall out so there is still some risk of their. >> let's talk about the risks for china. even the weakness of the yuan, there is also risk of capital outflows. at the same time, it would help their economy but they don't want the weaker yuan that would provoke the u.s.. how big of a challenge is thi

china unified at the future exchange rate, the black market rate. you can see it is heavily oversold against the dollar and we have big investment banks, bank of chinaf america and citi downgrading the orecast. 7.5%, the impacts of the trade war. the good news is the pboc is pretty unhappy with the decline already. the level is very much stronger than expected. today, 200 stronger. the largest since june. we may see more action from the central bank to reign in the appreciation. so far the efforts are not being paid off. rishaad: eric? >> we're checking with our old friend bitcoin. you might say gold is the new bitcoin. you take a look at the chart. pulling it up there. the correlation trade that we had through the latter part of july into august is basically disappeared. you can see the blue line for bitcoin has fallen off. gold has continued to rise. we have seen some headwinds for bitcoin. there has been some price crowding around the 10,000 to 12,000 levels. we have seen some concerns about facebook's libra proposal. gold, looking like the traditional haven for investors, it ecause it is shiny but is still considered a strong haven. rishaad: wow

of the last 12 months. the action that triggered the label was china's not purchasing the yuan, as you mentioned the people's bankrtedly telling foreign companies it won't keep letting the yuan slide china's state tv says the u.s. does not have a case against china here the white house counselor kellyanne conway defended the move last night speaking to cnbc's eamon javers. >> this was a reaction to what china did and china, as a currency, being designated currency manipulator, that's in direct response to their actions. >> in the meantime china's ministry of commerce confirms it won't buy u.s. agricultural products and may add charges to products bought in recently days indiana soybean and corn farmer brent bible says the ag community has counted china out as a buyer prices are responding to weather and supply side issues, although they want answers, melissa, on whether these markets will open in the future. president trump is tweeting about china, just a couple moments ago, saying massive amounts of money from china and other parts of the world are pouring into the united states for reasons of safety, investment

biden family particularly hunter biden hunter biden took a $1.5 billion in private equity from the bank of china the bank of china is one of the few central banks that's not independent. it reports directly to the chinese communist party. it is the basic funder of his private equity firm. his private equity firm then invests in the surveillance technology that enslaves the chinese people. this is what's so outrageous about it and joe biden will not touch this. politico the other day did a huge expo say of this. the biden campaign just wants this to go away. they have to understand something. it's not going to go away. people in the upper midwest are going to understand that joe biden has been a globalist from day one he's backed all these terrible trade deals of president trump is starting to unwine and reformat because the trade deals with trump support american business and american workers. the american workers are going to understand that's why joe biden is not going to be able to stand up against donald trump in the upper midwest. maria: there's a lot of pushback even speculation about big

of the u.s./china trade war >> yeah. that was a really interesting announcement on saturday because the people's bank of china has been signaling be making this interest rate reform for quite some time. nobody has been believing it because it's been happening -- it's been signaled for so many years, but for now, just from a technical perspective i'll run you through it they have created what's called a new loan prime rate. that will debut on tuesday, what everybody is watching. but the bank lending rates will be linked to this loan prime rate and the loan prime rate is linked to the leading term medium term lending facility rate the policy will be matched better with what the banks do and with their interest rates. so they think that could then allow for companies to be able to borrow more by lowering borrowing costs. the big question, though, is exactly how effective it's going to be even though people are really seeing this as you had suggested as a way to try to stimulate the economy but because interest rates here do not move in the same way that interest rates do in more liberalized economies, such as the united states, pe

china. we will get a sense of how the big banks are handling pressure. of the slowdown in china. ned in hong kong now by the head of asia pacific bank ratings, jonathan corner. us.k you for joining i want to start right away with this chart on the bloomberg terminal. shows how profitability of chinese banks has been declining. in this environment of a trade were, what are your expectations this week? we ran a hypothetical scenario whereby the growth in china would slowdown quite significantly to around about 3.6%. that was in 2020. based on those expectations -- -- the region. especially those who are most exposed to china, be that directly or indirectly. bearishat is a fairly model you ran, seeing growth crunch down to 3.6%, so what does it indicate in terms of how well chinese banks and others are prepared to handle any stress? only need to look back at the pd is he's financial stability report stress test you did last year. based on a scenario where economic growth was modeled to fall to a level that is even higher than what the case was. chinese banks, including the state bank

of each one but it will be very busy. the banks will be in focus. later today, chinaruction bank and we will get through the big four into the weekend with friday being the big one with bank of china and i think. -- just to give you a sense of other countries reporting results, as well. the marketing director joins us. thank you for joining us. these banks have some incredibly , tier one qualities capital ratios look very safe. good dividends, as well but they are unloved. why? is it always down to the npl issue? >> for one, the npl issue. market does not have the visibility and from time to time, we are seeing the nationwide reforms working against them. , the market has been talking about the interest rate forms a lot. we look at the interest rate reform and it is asymmetric interest-rate cuts for banks. big picture in china financial sector, banks have been made in a lot of money, as you mentioned. it has been lucrative but they were protected by the financial regulations. that is why at this point in time when we are facing headwinds from global trade frictions, m

just like our federal reserve is involved, the people's bank of china needs to be involved, these areaspects of the two economies. whatever measures you can take to rectify the trade war or mitigate any of the unintended or intended consequences, they are all working in lockstep to make that happen. alix: so in the u.s., that means the fed cutting rates and big companies pushing back on positive to prevent price increases. what is the story and china? henrietta: i think when you look at what the u.s. companies push back on that a little bit, and terms of being passed on to the consumer, we have seen in cases of the washers and solar panels industries, consumers are taking the price hits. i think inventories have been built up in the last six months or so so substantially that you can maybe stave off the increases. i was speaking with a client who said we have already done the back-to-school shopping, already got through that component, which i haven't yet done, but need to get on that. the expectation is that all of these price increases are just a little bit further down the road the

a move the american farm bureau called a quote body blow to us farmers, the people's bank of china alsog the value of its currency against the dollar prompting the us treasury department to label china a currency manipulator for the first time in decades. >>the bank currency by intervene in the foreign exchange market china denying manipulating its currency is saying the exchange rate is based on quote market supply and demand. the latest move by beijing likely in response to president trump's surprise announcement last week. >>that he would impose a 10% tariff on an additional 300 billion dollars of chinese imports to the us impacting goods like cellphones clothes and shoes. the president's view has always been that >>we we have negotiated in good faith we want to continue to negotiate in good faith with chinese his view is we didn't make any progress of the shanghai meeting. so he took action in washington, i'm kristen holmes reporting. >>california is president trump's latest target in the fight to keep his tax returns private lawyers for mister trump filed a lawsuit today challengin

the bank of japan the people's bank of china and the fed over in red and their total assets so what do you notice here this is a really interesting trend right now because all the world's central banks are kind of converging together and coming together at a very similar valuation up here but then there's the one the fed that's actually breaking the trend here everyone else has come to equal stands at about 5.2 trillion in assets but the fed has been on autopilot to reduce its balance sheet the reverse of everybody else they did so through a series of quantitative tightening starting at the end of 2017 but now this has resulted in a liquidity drain that is tightening the u.s. banking system. even after the fed has stopped its balance sheet shrinkage and less now noted that u.s. banks are nearing reserved scarcity this can actually be seen via the reluctance of large domestic banks to move out of 6 reserves and into the closest high quality liquid assets so basically a liquidity withdrawal here will result in a weaker risk appetite a far stronger u.s. dollar lower treasury yields while

of the currency. this move follows a statement yesterday by the chinese central bank's vice governor who said china believest's their responsibility to keep the yuan stable so there's been a lot of debate here about what the motivations of china are it's becoming clear two days out that the authorities here want to make sure that they don't see their yuan moving in any destabilizing or rapid way >> has there been indication there's been an impact on chinese companies given the wild currency moves >> well, it's definitely boosted confidence among the factory bosses who i talked to they say they're locked into long-term contracts, so there's not an immediate effect, but they're happy about the direction of where the currency is going there's been some interesting chatter amongst them when they say that there is reason, economically, for the currency to continue to weaken. so they're backing up what the government has been saying, this is driven by market forces but, you know as well as i do that the government here has a heavy hand in the currency markets, in the stock market, as well as the economy on the wh

the people's bank of china is close to issuing its own cryptocurrency. een working intensively since last year to develop the system. aiming toays it's replace cash in circulation. china would be one of the first major economies to introduce its own cryptocurrency. executive is leaving after almost a decade. he says he will continue at the swedish defense company until a successor is in place, but is looking for another challenge in his career. under his tenure, shares have outperformed industry peers. -- made an offer to acquire its german rival. the offer is higher than the 35 euros per shale -- per share of another offer. that offer was in jeopardy when it was rejected by the top shareholder. that is your bloomberg business flash. matt: thank you very much. are mind-boggling. minute.per $4.5 million per hour. $107 million per day. that is how quickly the fortune of the walton family, the family that owns walmart, has been growing the past year. as the tophem again of the bloomberg annual ranking of the world's richest families. it is not just the walto

today in a statement on its tibsite the people's bank of china didn't m the u.s. by name but explicitly linked theo depreciao the trade war saying the losses today were largely due to unilateralism, trade protectionism andar tiffs on chinese goods.th for e past decade the authorities here have kept the yuan above the 7 level. ve government heavily controls theue of the remnant b but today they set the signal tha it would tolerate a weaker yuan. that's being received welby manufacturers since the weaker yuan makes chinese exports cheaper but it anger the white house which could see t move as beijing weaponizing the currency or giving up on the trade talks set for the u.s. in september. and there's another risk for ijing with thismove. capital flights. the #r&bcrack7 which li410 m used so far. people are expressing their doubt that people will be able to keep the value of theirnd currency their money safe. for nightly business reports i'm eunice eun inbeijing. >> we should point out that the chinese central bank purposefully devaluing its currency in response to the

consent for the people's bank of china comes in is that they were quite critical of this process from the beginning and it's faceting because one of the major ways i believe china became such a tremendous economic superpower in the decade since the financial crisis is that initially they were very public about being critical of the feds policy. that he could create too much money to quickly come if you subsidize the system old my thaad system cannot sustain itself. however, in recent years the people's bank of china has also been creating their own sort of quantitative easing. the difference between what happens in chen and what happens with the fed come certain that much colluding but acting in opposition to in a world where money is cheap in one place and we have an international capital call by susan b cheap summerhouse, people take a turn has come in with her own methods. what to do is to inject them directly into more growth strategies throughout the country. they will actually direct sum of money they create interest infrastructure building, into companies that creat

china's official. r m b fall to its weakest level since march of 2018 the fall of the r. and b. follows interest rate cuts by the people's bank of china earlier this week the chinese central bank set the new one year lending rate of 4.25 percent down from $4.00 and hopes of manifesting economic growth. and european antitrust regulators have started to prepare their investigation into facebook's plan digital currency libra according to a report from bloomberg regulators will be looking at whether facebook is creating quote competition restrict. ns in regards to their use of consumer data and information according to the report regulators will also be looking into the end to gratian of libor while it's in to what's app and facebook's messenger apps to break down the regulatory landscape of facebook's foray into then tech is international regulatory and attorney miles edwards miles when it comes to libor what exactly are we mentioned some of them what can you spell out the antitrust concerns more in more detail that are coming from the regulators. sure so as you referenced before on monday the united kingdom information commissi

yuan thereby allowing it to fall to its lowest level against the dollar says 2008 the people's bank of china blamed the trade war for the u. ons weakness its decision rattled markets and is likely to inflame tension between washington and beijing the u.s. president tweeted his reaction to that incident saying china dropped the price of their currency to an all almost historic low it's called currency manipulation yet is that beijing's actions are a major violation which will great the weaken china over time is economic editor added early explains how the currency is drop could benefit china if donald trump imposes more terrorists next month. the chinese are weaponize in the exchange rate to manage this to help manage the economy so if these new sanctions come into play then the chinese economy will contract by not point 2 percent but additional not point 2 percent and that means that by lowering the currency by 10 percent they can mitigate this impact so that's their plan this is this is because they haven't got enough trade goods which they ascend which they buy from the u.s. which they can

what is now to be watch out for is what the people's bank of china will say, whether they will step inpart of modern life. virtual reality is a way to enjoy different experiences through the use of a special headset. in the state of florida, some people you might not expect are taking up the vr challenge. the bbc‘s tim allman explains. when you think of virtual reality, this might be the sort of thing you have in mind. hitech, a little bit complicated, and definitely a plaything for the young. but it turns out no barrier when it comes to vr. this is domino park in miami's little havana neighbourhood. some of the city's senior citizens are being introduced to a whole new world. we use virtual reality to fulfil seniors' wishes, so if they wa nt to fulfil seniors' wishes, so if they want to go to somewhere in the world that they have never been to, their bucket list destination, we can take them there. possibilities are endless. with vr you can travel to the other side of globe. there is even a chance thanks to nasa to see what it is like on the surface of the moon. you can visit famous c

one thing i should say, in the last hour we have heard from the people's bank of china, and they haveor the yuan slightly stronger than expected, so they have been some gains since then. now for most of us a marathon sounds like a very long way — butjust imagine going around a single city block more than five thousand times. that's what a group of runners in new york are doing, to compete in the world's longest footrace. if you don;t feel like taking part yourself — you can watch nada tawfik covering it. pounding the pavement and pushing themselves to the limit, these runners are in the middle of a race so difficult and absurd that only 43 people in the world have ever completed it. they are attempting to cover 3,100 miles in 52 days by running around this one city block in queens, new york, that's longer than travelling from the east to west coast of the united states, but without any change of scenery. here, a wire fence and a high school are as good as it gets. it sounds insane, but the organisers say it has a higher purpose. we put on these races to inspire people in the world to

the move unexpected but the drop suggests the central bank of china is willing to weaponize its currency amidst this trade war. the latest chapter in the trade war between the u.s. and china, sending u.s. and asian stocks in a freefall. in its worst drop of the year, the dow jones plunged 767 points and the s&p was down 3%. the market buckling after china sharply escalated the trade war allowing its tightly controlled currency to drop to its weakest level in more than a decade. >> it's a scary weapon to use in any trade battle. >> reporter: the move a retaliation in response to president trump's new stiffer tariffs on chinese goods which taxes virtually all chinese imports like clothing, smartphones, televisions and toys. white house trade adviser peter navarro on fox business called it an overreaction. >> you get the day traders moving and good people lost some money today because they got shaken out of the market but the underlying fundamentals are absolutely solid as a rock. >> remember this, our country is taking in billions and billions of dollars from china. >> reporter: but the ta

the people's bank of china is said to be close to issuing its own cryptocurrency, especially workings libra was unannounced. i could see why someone wants to buy cryptocurrency. why i would buy a chinese cryptocurrency. joe: i'm going to bed that never sees the -- to bet that never sees the light of day. caroline: this is the antithesis of decentralized. they want to see what you are spending more. joe: they have those apps where if you read and learn about xi jinping's ideology, you get credits. maybe it will automatically for doingypto-yuan good things online. caroline: time for a look at what stories are going to be trending across the bloomberg dollars -- the bloomberg universe. a junior analyst charged with insider trading only a year after being at stern school of business. the private equity firm serious capital group will acquire a digital printing company, electronics. a story on huawei's founder intending to overhaul the technology giant, creating an iron army. major structural shifts are around the corner. tictoc on twitter reported that the demand for u.s. air travel is b

versus john figure talk about different models of policy banks within china. and i think to kind of echo what you just said, i think there's a question what are the operating mandates of those institutions here that really gets at the different business models. if the mandate is to just go and develop but not really worry about the viability of the project that your linking to, you will have a different reaction than if you are worried about your own viability in the project by billy and the risk assessment needs to reflect that. i think it's a great question and an interesting thing for us to think about. as far as the question of economic interdependence, it's also interesting, we were talking before we came out here to think about kind of the arc of the engagement in this geo- dialogue and the five years it's taken place because the world has changed and certainly they use china relationship has changed quite a bit over that time. i think previously there was a feeling that economic interdependence actually led to greater stability because you had common int

the social networks are coming out and saying china is the problem, it's the beginning of what potential china has to these campaigns. ♪ >> the people's bankeleasing a new low primary on the 20th of every month, marking the start of long-awaited reforms. what does this mean, and will this new rate make lending rates a bit more market-driven? is that the hope? >> that is the hope, so the pboc plans to replace the current benchmark with this new reference rate, which will be announced on the 20th of each month. it will be calculated based on the interest rate for one year banks will8 separate then disregard the highest and lowest and find the mean of the 16 submissions. the banks are being told by the pboc to use this rate as the basis for new lows in the central bank says it thinks this can achieve the effect of lowering the real interest rate for loans. it will make it more in line with other central banks like the fed in controlling interest rates across the board, the final mile in the long-awaited reform monetary policy. >> doesn't look like chinese markets were expecting a deeper reduction in borrowing costs earlier today? this is afte

up the one allowing it to fall to its lowest level against the dollar since 2008 the people's bank of china blamed the trade war for the ones weakness. july was the warmest a month on record for the planet that's according to scientists a big european union's copernicus climate change service who say it continues a worrying upward trend in global temperatures this year a science and technology editor mariana honda explains. global temperatures in july i usually hot but never before have they climbed this high scientists at the use copernicus climate change service analyzed temperature data from across the world and observations from satellites and ground stations they say july was the hottest month albeit by a small margin rising from the previous record in july 2006 days scorching record temperatures and hate waves in europe the united states and the arctic coincided with a major ice melt in greenland data from scientists at the danish me to a logical institute shows melting an almost 60 percent of greenland's ice sheet that released 197000000000 metric tons of water into the atlantic ocea

up the yuan allowing it to fall to its lowest level against the dollar since 2008 the people's bank of china blamed the trade war the yuan's weakness its decision rattled markets and is likely to inflame tensions between washington and beijing. thousands of people have attended a candlelight vigil in el paso in texas one of the 20 people killed in a mass shooting the shopping complex on saturday is the worst attack in the u.s. so far this year a 21 year old white man is facing multiple criminal charges in ohio a big crowd gathered for a vigil in dates an oregon district to mourn the deaths of 9 people who were killed during another mass shooting there early on sunday police say the gunman was among those killed 16 others were taken to hospital with injuries. because new interim government is facing a possible challenge in the u.s. territories senate there is a coal pedro pierre luis u s swearing in unconstitutional protesters who forced his predecessor out of office have been rallying in the capital. al jazeera as gabriel is that. protesters again at the front gate of the governor's mansion

the process to eliminate the unfair competitive advantage of china's actions the chinese had something to say about that as well the central bankaid the imf believes that the renminbi exchange rate is in line with fundamentals there's been some level of confidence in the people here that throughout this process, at the end of the day, china will prove to be the winner now, you would think that this late effort currency manipulator level would raise tensions between the u.s. and china i spoke to somebody who closely consults with the chinese negotiating team he said that the prospects for the trade deal look dimmer but at the end of the day the negotiators and china still want to have a trade deal there's a lot of tough rhetoric, but in terms of action it will be moderate. >> a lot of rhetoric out there and it depends on the paper you read based on what you hear. eunice yoon, thank you very much >>> joining us now is miranda carr all right. the u.s. calling china a currency manipulator, a valid point or more of a political move >> definitely a political move the chinese currency has been defended they've been trying to keep it a

officials at the people's bank of china warning that the trade war with the u.s. is deepening. s as policymakers are holding back from rolling out the victim's of monetary stimulus. our chief asia economics correspondent emma curran joins us from on -- from hong kong. we have not seen any key rate cuts in china as of yet. we have seen triple our cats and other lending facilities being tweaked. froms the message officials -- what is the message from officials? >> we two streams of thoughts from former officials. and of course current pboc officials. we have these gathering of former retired officials warning china should dig deep and prepare for a long front when it comes to the trade war with the u.s. in the pboc's own monetary policy board, they are talking about a need to stay rational when you look at the risks facing the economy. that feeds the idea that china has been extending to the world that the economy is slowing but they are rolling out relatively disciplined stimulus by their own standards for a nuanced. the central bank is playing a role in terms of trying to get cr

yuan thereby allowing it to fall to its lowest level against the dollar says 2008 the people's bank of chinalamed the trade war for the u. ons weakness its decision rattled markets and is likely to inflame tension between washington and beijing the u.s. president tweeted his reaction to that incident saying china dropped the price of their currency to an all almost historic low it's called currency manipulation he added that beijing's actions are a major violation which will great the weaken china over time is economic editor added early explains how the currencies drop could benefit china if donald trump imposes more terrorists next month the chinese are weaponize in the exchange rate to manage this to help manage the economy so if these new sanctions come into play then the chinese economy will contract by not point 2 percent but additional not point 2 percent and that means that by lowering the currency by 10 percent they can mitigate this impact so that's their plan this is this is because they haven't got enough trade goods which they ascend which they buy from the u.s. which they can s

started overnight when the central bank of china lowered the currency value against the dollar. they view this as retaliation against president trump's latest round of tariffs and chinese imports. the concern is is that the u.s. will strike back and devalue the dollar. the global markets dropped on that news overnight across the board. two% or so across europe and overnight about the same in china. and u.s. stocks followed suit. posting from the sound of that opening bell. we want to take you live to the big board, dropped another 100 points the last few months and that is coming back from the 600-point drop right now. and you can see a live look at the dow jones, down more than 2%, 547 points, 25,908. and the s&p down 2 and a quarter percent to 28.66 and the nasdaq down almost 3%. 230 points on the nasdaq. we have a lot of important earnings, earnings including uber and lyft. analysts are not expecting good shares. both based in san francisco and faced turnover in top management, backlash from customers and drivers and increased competition. lyft reports earnings after the closi

as we are seeing them in other parts of the world. >> the wan rose after china central bank set its daily strong than expected. it is the first time in over a decade that the pboc set the reference rate weaker than seven per dollar. peoples bank of china. does this mean that we are seeing stabilization in the yuan? why is the market taking it that way when this is the first time we have seen. >> the key takeaway is there still somewhat stronger than american anticipated. sure, they're willing to allow it to go on a certain direction, to allow the market to push lower. but it seems they want to keep some thing about flow as well. that is important from the pboc. because they have been preaching eight want to keep it somewhat stable and do not want to let a perception run away from themselves in terms of a one-way bet on the yuan. that's probably what the market is taken from the level today. extending gains. up to percent. every group in the s&p 500 are higher. can you believe that it was just monday when we saw the big selloff? >> no. >> china's producer prices contracted for the first ti

reporter: so with this labeling or this threat of labeling china as a currency manipulater, that comes after the people's bankijing officials allowed for the yuan to breakthrough that psychologically key level of seven yuan against the dollar. this as china doesn't seem to be wanting to give ground to the u.s. after those threats of tariffs, which are to take effect on september 1. so the read here is that you have this game of chicken really unfolding. china also requesting for big agricultural companies on the mainland to stop their purchases from u.s. companies. so this is going to be going on for some time. not much leeway here when it comes -- comes to compromise. but fresh rounds of talks anticipated next month. emily: all right. stay safe and keep us posted in hong kong. keep watching bloomberg television for updates on what's happening in hong kong throughout the evening. that does it for this edition of "bloomberg technology." we're live streaming on twitter, find us there and be sure to follow our global breaking news network on twitter. this is bloomberg. ♪ ♪ hey! i'm bill slowsky jr., i live on my

fix, the people's bank of china fixed the currency below seven. that is psychologically important.t was clear they weren't letting the currency drop in freefall. that was important part take investors because so many of these companies get so much of their revenue from china. 15% from that get china. it is a lot of brand name tech companies. a lot of the semiconductor stocks. apple, tesla, a lot of very important tech stocks derive important revenue from china. today,w them to rebound it is still down quite a bit from the highs in july. semiconductors dropped 12% from their highs at the end of july. to see a rebound of about a percent and a half today is not necessarily sending the all clear signal just yet. emily: how much does this simply have to do with the level at which china fixed its currency? mike: today in particular has a tremendous amount to do with it. there was that concern in particular not only that the fix was so weak sunday night, monday morning, but that this was the start of things to come, that they would allow the market to push the value of the currency lower.