of bill that was declared the equivalent 100 of the old currency. and in 1994 it is an entirely new currency the government announced of 2750 none of this is inherently good or bad they could be swapped for the new currency imagine no dollar bill if they accepted it is not as accepted as legal tender. to the exchange rate you can imagine north korea takes its currency would ever though leader says it should be worth most would rather have the dollar the officials exchange rate is $35 blackmarket anyone holding large amounts of gold currency are destroyed and that is exactly the point the north korean government is increasingly intolerant of those activities outside the country black market traders were sitting on a large stashes of cash and with this strong of the pen with the accumulated wealth and with those north koreans may accumulated large swath of cash this bars news that leaked out of korea led to chaos as the sabres would rush home it only had 24 hours to convert the old currency to a new currency and a defector told a reporter in one day a

i hope that delivers a weaker currency. francine: will it?now this is where you get paid the big bucks. governor kuroda says he surprised the markets in the january -- in january, and then he -- thinkhe january policy, i was mismanaged in the sense that it was a complete surprise. it was a split vote, it was a friday and it was on a time when they were trying to move to negative rates to encourage japanese investors to move money overseas. in assets they were buying january, they were getting annihilated. the timing was dreadful. the time now is much better. i can feel their nervousness because you are in uncharted territory and you find the timing and the way you execute policy changes is difficult. as with hiv/last summer, the chinese made a huge error -- as with the chinese last summer, the chinese made a huge error. at 1.10 atwill be the end of this year. i have hopes that will have dollar yen much higher. francine: how do you look at the selection? if your janet yellen, do you not just stay put to see a clear picture? i'm being so diplom

so, the currency is not really footing now. can do is try to stabilize the currency, allow some sort of -- last week we saw slightly awkward fixings which not follow market moves. if nothing, they can at least instill confidence in the market fairlye yuan is a market-driven currency. robin, thankght, you for that. we are looking forward to business in tokyo. what we are seeing is japanese shares advancing. it is waiting to see if the boj makes its move on the 29th this friday. of course, we will get the latest on japan's's real opening as we see asia and stocks rise on a weaker yen. this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi

essentially, you can be a reserve currency, but that does not mean you are a safe haven currency. tore specifications be fulfilled, transparency, reliability of policymaking. we know how ad hoc some of the us policymaking can be when it comes to china. it also has a close capital account and a very controlled currency. in fact last week, when we had that five-day recovery rally when the yuan rallied 1%, there was speculation that it was the pboc stepping in to defend the yuan ahead of the g 20 meeting. we see this quite often a had of major global offense. they try to maintain stability when it comes to the yuan. over the weekend, we heard from the pboc governor and deputy governor saying further efforts are being made to maintain stability in the yuan. a lot of analysts suggesting consolidation around that 6.6 mark. the most recent survey of bloomberg analysts suggesting at yuan will and the year 6.79. rishaad: moving from events in china to what's going on in japan, exports dropping for a ninth straight month. june.n is in tokyo.r let's have a look at what is going on behind the

currency.unity, the party chair to quit over claims of bias. we will be live in philadelphia for more. to you live, i am if on an and hong kong. betty: i am betty liu in new york. it is going to be a big trading we this week with two central bank set to make decisions on andrews rates. we are watching the u.s. and japan. yvonne: the stakes could not be higher. thinkelming majority, 78% the central bank will help do something, the highest decision since governor kuroda began three years ago. it seems like a relatively soft open in asia. stocks pretty much flat in the first hour of trade, up 10th of 1% and australia. stars may be a lining for the australian bears, the austrian dollar at $.74. stocks could see retracement. we mentioned the boj meeting. has stabilizedn after the brexit vote at 106. stocks could see a bump this morning, so it could be a mixed picture. how does it look on wall street? betty: we did close at a record again. the picture will change this week. you have the central bank

this is about a portfolio of currencies impacting. i know fractures a little bit later you have american airlines coming out with earnings. they're in 54 different countries. this is going to hurt them hard. it's a great example of company. they're not as sophisticated on thinking about and managing and understanding currencies for example their international competitors. much better at understanding the it. that's what investors are going to look at. what companies really understand how to manage the currency risk and which ones don't and it's becoming a have and have notes now. >> i have to say, wolfgang, to push back a bit here. we have gotten a taste of earnings season so far in the last two weeks and very little chatter about the strong dollar. less complaints than we've heard earlier in the year and at the end of last year. look at microsoft for instance as an example. you just didn't see that in the same way and the other point i would make is that the uk is still a relatively small corporation. the euro is something totally di

glue this week, britain's currency touched the 31 year low -- earlier this week, britain's currency touchhe 30-year low. news's us now, bloomberg richard jones. the last time i checked, the peso was just ahead in underperformance. they are battling it out, aren't they, for the worst performing major currency in 2016. is brexit fully priced in to the currency or not, richard? coupleink we have had a of weeks to digest it. we've seen a really sharp drop in the pound. really sharp straight does drop in u.k. rates. i will refer back to it foul us said previously. this is going to be a very long, drawnout process. a lot of bumps in the road. i think we are officially priced to now, that we have official data to still come out. the survey data is looking like it is really, really soft. a long and winding road with twists and turns. for now, i say we are reasonably priced. mark: let's look at the two-year yield and 10 year yield. what are they telling us? there are year yield, many ways of looking at bank of england expectations. i think if we are looking at a chart, the two year chart is a clea

does something known as qe, meaning -- manipulating our currency, by the way.e were buying stuff, we were lowering interest rates, we were manipulating -- we were changing the value of a dollar just by doing that. and doing it in our favor. so i remember every country does that. listen, if you tell me the chinese cheat, i would say, yeah, they do. there's ways of fighting that without getting into protectionism. now, the real question is this, and this is what donald trump refuses, and i expect you of all people, you know, adult in the room, to walk up to him and say, donald, here is economic -- because you know this guy. you're on the airplane with him. here is the number -- here are the numbers. here's what free trade has done for the u.s. and here's what it hasn't done, and i tell you every rational economic analysis. >> i think it's misunderstood. >> the hedge fund manager paul singer, big republican donor said this week that if trump is successful -- if trump is elected and successful in these trade wars, we'll have a global depression. >> but i wanted to

currencies -- emerging currencies. commodity prices have not pulled back much so i think it is crisis gold -- as crises go, this has not had a big reaction from the financial markets and that suggests that while this may be a severe political crisis , it might be a rather small economic and financial market crisis. vonnie: it is changing the nature of lows. the u.s. treasury hit a low. from that point of view is it affecting u.s. capital markets? jim: certainly, on the bond market i think is being affected by the negative yields going further negative throughout europe and japan like dragging down u.s. yields, but that sets up an interesting dynamic. we have had a very healthy rally in stocks since the january lows and typically when you get a rally in stocks you get a backup in bond yields that act as a brake and eventually may cause the rally to stall. what we are getting is a continued rally in stocks with yields continuing to fall to fuel the rally. i think there is good odds until that dynamic reverses that stocks

a lot of what is going on in currency markets has to do with the dollar, and this is one of the currencies responding. u.s. data. the yen in there at 105.48. manus: the fed is definitely inching back into play. at 40 4%ck possibility, probability of a rate hike in the united states. that is up from 9% at the end of june. goners on the dollar have net bullish for the first time in three weeks, hence the reason you are seeing a bit of a change in the gold price. anna: let's get the first word news with ross lynching. investors in turkey are stealing themselves for tumultuous trading as local markets open this morning following friday's failed coup. more than 200 people were killed as soldiers loyal to the government regained control. around 6000 people including military personnel, judges, and prosecutors have been detained while purges and arrest are expected as president erdogan seeks to concentrate power. the turkish lira has regained ground after seeing its biggest 2008.ince john kerry says the u.s. is awaiting a formal extradition request for a pennsylvania-based cleric suspected by tur

decline in the currency.t has fallen to percent against the dollar, it has fallen less against this basket of currency which makes it more stable. after what happened last august, the government -- they don't call these official controls but tighter controls on how much money can go out and how much can come in. they obviously want more coming in and going out but the estimates are like $40 billion net going out of the country whereas a few months ago, it was $130 billion. they are definitely controlling it better. "bloombergi was on , we looked at the spread between the offshore and onshore. it throughout last year during and post devaluation and that tanked the stock market. not just in china. but here, the spread has come down to almost nothing. betty: that is a great point. that gap has shrunk so much that it means to some analysts that the currency is right. it is priced right. matt: there are still concerns that there will be another devaluation and that is going to hit the equity markets hard. : th

i think the currency war has taken a step back.ed at some stage, but that the moment, i think piece has been called. komal: i don't think we ever give up on currency wars. 008began in december 2 and this is like a ping-pong game, and the countries have been appreciating the currencies. japan will try to do that, in u.k., the pound looked appreciate. even in thursday or after the august form meeting. we had the bank of japan meeting coming up toward the end of july. once you see the dollar depreciate significantly, say close to one euro of dollar, that is when you see the fed reacting and the fed has to cut rates. is thatncine, the idea everyone is focused on sterling, but the more dollar centric analysis is a site of great conversation and great debate right now. francine: this is probably the one thing china is looking at, and we will go back to china but not yet. we have seen it extend since 2014. thatw there is a big hoax we are going to get more stimulus and that the prime minister had victory over the weekend to do more, but a

currency stabilized. >> communication has improved.s a political cycle going on in china and some key events. the president has more control over the economy. >> do you see the rmb getting even weaker? >> we are 6.9 for the end of the year. one-offt see a devaluation. the only way you would see that is if you've had an un-orderly fall for the yen. >> are we ever going to see japanese equity markets catch up? >> we have had a fairly good run over the last couple of weeks. market, all equity excited about the changes. the market is not pricing it in, it is to driven by the macro --too driven by the macro. we have had a run back from 100 to 106. it is binary, to the august -- to be honest. where does the extra money go to generate growth? that is the problem. we just had our quarterly update on all of the markets and we remained overweight on japanese equities. sentenceuld use that for everything. the problem with japanese phil ll inhe blank -- -- fi the blank. >> when we had zero interest rate policy, that changed and people got worried.

events happen, currencies and just. just currencies at just. -- currencies adjust.echnique to try and help them out. has --e: and a one erdogan has held his grip over the central bank. we are minutes away from the open. up next, we'll look at the movers in today's trade. we are going to be looking ahead to goldman sachs results. ♪ caroline: 8:54 here in berlin. let's have a look at some of the stocks we are keeping our eye out ahead of the open. missing. estimates we saw them reporting an 11% drop in sales. the company is saying it'll double its cost-cutting plan. the problem is where the costs are being cut. research and development -- that stock could fall 1% to 2%. novartis could slump to the same tune. profits may follow this year they worn as it faces declining sales. that being me back. -- increasing it spending on its heart medicine treatment and presto. it has a number of new drugs is trying to push through the pipeline, trying to increase their investment on. guy: it certainly is. go to sex another stock you want to watch for. where -- goldman sachs another

prevently our currency jumped up in value. charles: -- >> it start on our own shores and domestic economy. trump will folk thus first, he will bring tax rates down. he will get regulations under control. and we'll strengthen our economy with what we can control first. but trump has reflected in his pledge that he will use economics as a tool in negotiations related to terrorism, trade and cultural relations across the globe. nobody has had the guts to do that and hold china accountable for their manipulation. >> if we don't stop spending, then we can't get to the right trade relationships. we can't limit our spending until we limit our entitlements. he will have to tackle that if he want a better trade deal. charles: china is already intimidated by a president trump. i think he can carry a big stick into the negotiations. >> i want them to be afraid of donald trump. i want them to feel like we better start making some changes or else this guy will start punishing us. it's important. the fact is that as much as we like trade, i

the chinese currency has fallen 1.7% over the past few weeks.off in risk arets, this time investors taking the decline in stride. stride, david monitoring the market in shanghai and hong kong. david: that's right. i was just talking about the yuan. it is in focus now because it has underperformed. -- moreallen against than a lot of these counterparts across seizure. -- across asia. you have the fx reserves, the different slow, i know, but these to tend to move in the same direction. tends ton why the yuan .eaken when fx reserves fall $25 billion less is what were expecting for china's fx reserves for june at some point today. have a look at where we are at the moment for the offshore renminbi. a lot of these traders told us that before markets open in asia that this was well bid. ,his underscores that statement 6.70 on the offshore renminbi. dollar-yen capping the gains on the cash market, back hello 101 -- below 101. 100 at oneell below point yesterday. came at about six akaka p.m. our time in asia, so a full yen weaker. index.look at the dolla

check out the currency of the bond board. the currency markets, sterling, falling below 1:30.t after midnight. to the lows, we have not seen since june of 1985. since june 24, sterling has fallen 14% since -- against the dollar. since september of 1992, this is bloomberg. you are watching the european close. ♪ . mark: from london and new york, you're watching the european close, i mark barton with vonnie quinn. down, everyhing up, industry group on the stoxx 600 down, fallen for a third consecutive day, the longest losing stretch since june the 14th before the u.k. referendum, down 8% since june 24 when the referendum became apparent, the big move in the currency arctic, sterling falling to new lows against the dollar. 13%, the biggest nine-day drop since june 24th, september 1992. 27, the lowestis since january. risk remained to the downside, the next capitalist for a selloff could be next thursday, expect 25 basis points in august. now, 1.2910, the record low, mid 1985, 1.05. what would it take to get sterling to falling to its record? money continues to move into the haven

sell sterling against other currencies.ook to other currencies to come up and might be affected as well. anna: i'm interested in what you think pricing the currency markets is happening at the moment. i have been increasingly reading about how the letter of the law on the lisbon treaty is we need to have a negotiation for britain to leave and only after britain has left can trade talk start. we seem to be pushing the time horizon around a trade deal further into the distance. do you think the pound even knows what the prices at the moment? patrick: i don't think we or the market knows what the price is now. as we mentioned earlier, we are at a three-decade low. fallen 11%y has since the time of the vote. the missing ingredient is demand. demand is weak and uncertainty is building. we could see some difference about what the solution will be or the outcome will be. anna: in terms of investor sentiment, do you think investors are watching across into the euro and saying there is a little more safety in the euro than there is

all of the currencies are falling against the dollar.ields are rising in these countries, credit default swaps gaining. appetite for risk declining somewhat as the fed kicks off its meeting. boj will take place thursday and friday. bankshares earlier falling the most in a month. germany'second-biggest bank is quoted -- disclosing an unexpected drop, a key measure in unexpected strength hurt by operational risks such as legal expenses. the tier one ratio fell to 11.5% at the end of june from 12% three months earlier. why they didonder not see this coming. net income in the second quarter fell about 2% and these are the two big german lenders in 2016, roughly performing the same and both declining roughly 42% today. tire maker, biggest profit rising better than estimated 11%. cost-cutting plan kicking and and car sales growth accelerating in china. it stuck to a 2016 financial target and expects the market for passenger car and light truck tires to remain land in china even as north america and china lose some momentum for the remainder of

samsung future says the currency datea is 1139. currency is 44.78. and supply is down 2 million $60,ls, prices will hit and it will rise. that is what pioneer is saying at the moment. anna: anna the surprise indexz, on the back of that surprising data out of the u.s.,.the housing market seeing retail sales, payroll looking stronger. all of that adding into the gained momentum we have seen. manus: a red-hot headline across the bloomberg terminal. they come out of the second quarter, net income at $1.7 billion. that is one of the first european banks to report. anna: let us get the bloomberg first word news. here is rosalind chin. rosalind: donald has told supporters he is going all the way after formally securing the nomination. announcement,is which put him over the line. they're looking to get the convention back on track after the opening day was rocked by questions over whether melania trump plagiarized. after sales and profit were cut, the cloud business -- that is after adjusted platform of doubling the earnings. the ceo has been changing the fo

dollar currencies are weak generally.ng, spending some money, they come back and spend less. the ticket size for local started dropping. korea and japan specifically have seen the pickup when it comes to the cosmetics retail space, the weaker yen, the weaker yuan. it is also the mainland chinese traveling there. those currency fluctuations, how are you buffering that this year? this has been happening for the oast couple of months, s how are you trying to buffer those? >> hong kong in general is very competitive. even now or in the last six months or so when the yen was much weaker, hong kong in general in hong kong dollar shoppers shopping in hong kong are still generally competitive. ofsumers like the idea shopping in locations where they can find cheaper hotels. shopping,about cheaper hotels, cheaper spending, etc. a lot of consumers are tending to allocate more of their budget to lifestyle spending. that is why there is more spending in those locations. for us, coming back to your question, we have maintain competitiv

i think the currency is competitive and yes, a devaluation that will lead to a currency war, i do not we are staring at that but the gradual depreciation has creeped down and it is possible that the currency against the dollar will be 10% to 15% weaker. tom: jonathan fenby, is china rising or falling? jonathan: china is in danger of hitting a stagnant period. it will go on expanding, it is not going to collapse or implode, but mainly for political reasons. that is the communist party were venting economic reform china risks getting involved in the middle development. it is using all kinds of mechanisms such as increased leverage in debt which will come home to roost and a couple years time. francine: thank you so much. this is a picture for the markets. we found out that germany for the first time ever sold a 10 year bund with a negative yield. european stocks are pretty much flat. overall, what will mario draghi do next? has he thought about tapering ecb banks? ♪ francine: welcome back to bloomberg "surveillance." francine lacqua in london, tom keene in new york. we have to talk abou

whether its currency wars or currency shuffling of the pack, i don't know., they need their turn at devaluing. anna: that is the big underlying problem. i've got a great graphic that shows the amount of consultation that the boj is doing with market participants and other players in the economy, and this is been increasing. meetings upon meetings upon meetings with participants in the market. what is your diagnosis for the japanese? there is no one arrow that fixes this. >> that was an exciting third arrow, and he could have embraced it more. meetings don't really solve the problem, do they, unless you end up with some conclusion or action. any easyhink there is way out of japan. global growth is under pressure. anna: and the trade dynamic, under pressure. let's have a quick word about china. i've got the china manufacturing pmi. that's the white. you can see the white, this is the manufacturing. we've got 50, the divide between contraction and expansion, just dipping a little bit too exactly 50 in the most recent overnight reading. what to expect here? >> c

nobody really expects the currency not to slide past 6.7.haad: some are suggesting this is the flaw. >> some are suggesting that probably this is where the pboc once the currency to be, but the , what theiew is that pboc is trying to do is clever. they are allowing the currency to decline, coming into the market at certain times to control the pace of the depreciation so there isn't a huge amount of depreciation pressure on the currency, and then letting it slide again. then, repeating that over and over. what it is achieving by doing that is, it is allowing a decline, helping exports, at the same time not really putting huge pressure on capital outflows. people know where the concert -- the currency is headed. rishaad: exactly. where do people think it is going? and the other thing, going to the g-20 meeting, and the lesbian months we have heard barely eight people out of people saying anything -- barely a peep out of people. >> not until tromp, if he becomes president -- tromp -- trump, if he becomes president. many people say that the g-2

>> confidence in currency. the markets missed that in every other currency except the dollar, gold was going out starting in 2015. earnings were crewing and cash througherating operations outside and america. the end of january and everybody went, how come these people are making money, and everybody had nothing in the portfolio. market.hed into the that was a start. ultimate currency. matt: ben bernanke, ron paul asked him in congress the currency and he said no. the fed does have gold listed in the foreign exchange reserves. >> if gold was not a valuable commodity, why do they have all that protection around? >> let me jump onto matt's comment about central banks here. how big a role as it played in , is thatd for gold something that will be sustainable? >> banks are buying, you change over the last 20 years. china, big buyers. , the only way the dollar became the reserve currency of the world was with the permission of the european --ions, that only those held quiet for a while but the important part of the

you need to realize you have to factor in currency.act written about the that the ftse 100 has had a good week. sure that isely true. the other area with seen a great deal of action has been the homebuilders. big names have been battered in the u.k.. remember, that is not a currency adjusted number. these are aggressive figures we're seeing. the other thing worth mentioning , talk about what mark carney said in just a moment. cio ats the deputy black rock. what has the last week taught you? thet: if you look at expected return market, the event itself was totally unexpected. liquid strategies like the british pound and the euro and even u.s. treasuries moved about 100 percent of our expected range. some of the asset classes moved much less. about 40% or 50% of what we were expecting. some broader indices move even less. that tells you the market is focused on the implications for britain. there is more sanguine about what it means for europe. guy: is it that the market can only focus on one thing at a time? as would begin to understand

does the currency have any effect?a look at how the chinese currency has traded during the quarter. it ended flat. it basically ended where it started. in between you had a little bit of a bump in the dollar. it has strengthened right into the close. let's see how that plays out in the coming months. -- phones or handsets will be sold. angie: thank you very much. that is almost it for us today. what else are you watching? yousef: we have already amax.oned ar also tells medication's company in the united arab emirates. that was coming in it 2.3 billion, considerably higher than the estimate. this is a stock that is remarkably outperformed the benchmark index. you are looking at 23.9% so far this year. we will see what kind of reaction we will get when the traders begin their day. that is it for bloomberg markets middle east. anna: backed by the rock, president urges america to reject donald trump, saying hillary clinton is the person the nation needs. president obama: there has never been a man or woman, not me, not bil

what has been reaction been in the currency market?he pound on its longest winning streak in its two months because of the closing of the political vacuum. an end to political uncertainty -- at least a pause, giving some lift to the pound. mind, economists are expecting 55% from the bank of england tomorrow. that will be crucial if the cap is put on the pound. one strategist saying the pound is supported by theresa may not rushing to the brexit door. she will not be in a rush. ship,g her candidatcy she was talking about how she would not rush to octav activate article 50 which sets into motion the bit of archer. she will wait until 2017 to trigger that. yousef: economic political and market uncertainty has created a volatile trading environment. commodities and foreign exchange, we are joined by marshall, head of investment strategy. let's goes straight into what anna was talking about in terms of what is happening with the sterling pound. you say we are in a. period of total uncertainty but there is still money to be made? marshall: y

we see the volume of currency trading rising.ms of what is driving that, this betting one central bank policy against another. about thethat say folks doing trading here and how much of it is really fundamentally driven? currencies are still the muslim market out there and if you want to take a big that in big positions, it's a lot easier to do that in currencies and the fixed income equities. want to bring in the turkish lira here. it is strengthening after falling to a record low last week. we talk about this increased volume and trading currencies. is this on any kind of in the mentalist or is this just a gauge of sentiment and a easy way to bet on turkey one way or another? guest: exactly. we had seen a huge selloff in the turkish currency after the up.led attempt at the co we have seen people fade the move a little bit of a but it is difficult for a long-term investment -- long-term investor to take a point of view on turkey. i see it as a short term correction rather than a long-term trend. joe: oil has been breaking down f

she also saw me talking about tpp and currency manipulation and currency devaluation. and she heard it and she said wow, she can't win that subject in a debate. so, all of a sudden she goes and she goes against tpp, her vice president is one of the biggest proponents of tpp and now he's going against it. and bernie sanders was right, he was against it.

moves in currency markets, as we have been flagging. quite a few markets are closed around the region. no trading in indonesia or malaysia, or much of the gulf. they are closed, celebrating the end of from it on. let's check in on the first word headlines now. aslinda: samsung shares are higher after its preliminary profit numbers beat out. $6.9 billion. to they now expect samsung to pour at least $9 billion of extra investment into its display. health thfoodr creater, whiteway. this includes a product. bys will raise growth by 5% 2020. suspended trading in property funds in the wake of the brexit. trading andlted $7.5 billion worth of funds due to what one called "exceptional liquidity pressures." concerns of the u.k.'s future in europe. minutes of the policy meeting a week before the brexit decision shall officials wanted to wait for the results. they also wanted more proof that the u.s. labor market has returned before making a move. global news 24 hours a day, powered by 2600 journalists in more than 120 news bureaus around the worl

all the rest is in currencies. think that will be a big problem but there will be an adjustment period. the automobile industry and the u.k. will be hard-hit. once you get rid of all the treaties, the economic treaties, it is going to cause a problem. erik: from business conditions on the ground to big business in the air. conversations from the air show are coming up next. this is bloomberg. ♪ ♪ erik: this is "bloomberg best." i met erik schatzker. we are heading back to england now where this week the world's top aviation executives gathered to talk shop and strike deals with the farnborough airshow. guy johnson was there to get their thoughts on the state of the industry and the impact of brexit. >> tell me what brexit means for your business. >> for other than the foreign exchange upheavals due to this brexit, we still have passenger numbers. we still have passengers traveling in and out of europe. as a matter of fact, more and more people are now flying into the u.k. because of the lower -- >> wouldn't this be

yvonne: ok, land of the currency going out of control.r already achieving one of those goals then? >> yes, and the statement he said was the decline in the exchange rate was needed. it is off almost 1% this morning. it is up strongly so far in the past year. nearly 11%, but it has pulled back in the last few days. he said that behind the new zealand dollar, they are holding down inflation. yvonne: ok. paul in sydney. republican vice presidential nominee mike pence will take the stage later today, trying to unite the party. the indiana governor was chosen by donald trump for his conservative credentials. we will go to saw shot eisenberg who is joining us -- sasha eisenberg from cleveland who is joining us. >> one thing we have not heard this week is an established politician making the case for a donald trump presidency. we heard from his kids, some people outside of the conventional political sphere, so the job incenses to not -- intenses do not talk about hillary clinton, but to explain why donald cap is ready to be president and why he

of thosee advantage currency prices. >> exactly!ust be spending the next week counting down to friday's jobs reports. had that miserable one last month, expected to bounce back 200k, a little bit below that. a lot is riding on whether that labor market is not doing as badly as that may report. everything is hanging on that. just a month? >> no. it's a trend. >> all right, everybody. did youll for what miss. thank you so much for watching! great fourth of july weekend! july 4th. >> "with all due respect" to the staff members leaving donald trump's campaign, are you sick already?g >> on our show tonight, a swing dance. supreme court encore. a special performance by johnny. first, the attorney general or was lynch changed key she singing offpitch to begin with?

currency.hat that isto say a much bigger move. there you go, right there, , 30 basiss points points on average per day. >> we will continue to follow these headlines out of turkey. the turkish prime minister tsonga has been an uprising in the military ranks, helicopters, gunfire. he says it is due to them suppressing that uprising. you cannot call it a coup, he says. this is bloomberg. ♪ "what'd you miss?" we begin with the developing story, the turkish prime minister says a group within the military has engaged in an uprising of some sort. he says they cannot be called a coup. there are reports of military jets flying over the turkish capital with military vehicles blocking bridges in istanbul. media reports said ambulances were seen in front of the turkish military headquarters. tv has been shut down. follow thisinue to developing story and bring you more news when available. president obama has addressed the terror attack in france, comments coming as he hosted a diplomatic reception in the

the currency weekend if japan took such a step.ith us is the head of macro strategy at state street. timothy, the great debate you think,do does state street think, we will get some form of helicopter money? >> i think the only difference between helicopter money and the existing qe is the mechanics of it, the permanence of it. in a way, given a lot of these qe programs will probably never be undone, we're in the era anyway. the question is it forceful enough, visit accompanied by fiscal stimulus such that it is a key change from what we saw in japan. anna: so why is everyone getting so excitable about this phrase -- we've had this conversation, it's a continuation of what we have seen, it is hard to pin down, and some of the central banks of party been doing something. why does everyone get so excited about this? is it because of the additional fiscal stimulus? tim: that is part of it. there's also a psychology to it. people for years following the crisis expected these policies to reverse. this is not just a tacit admission, this

if you look at the moves in the yuan, it has been devaluing against the currencies.ngie: you think it is temporary for the g-20, versus a weaker use foreans better exports and the economy? >> there is something else at play, which is more to do with the recapitalization of the chinese economy. the actual problem with the global economy is a lack of demand. no matter how much you devalue, and this is what the european and japanese have down, no matter how much you devalue, if nobody wants to buy your product at the end of the day, it is difficult to get growth. angie: great point. they are worried about another thing when it comes to the weaker you on, which is weaker inflation and capital outflows. the whole love our investment for the past year or so has a -- has been all about the yuan. economic sovereignty is no longer sitting in tokyo, frankfurt, or washington, it is sitting in beijing. you have to understand what is going on with the you want we think the yuan will depreciate, 5-6 percent more. the dollar needs to actually happens andif that the ecb and that the

this reminds me of a currency called the u.s. dollar in 2003 when the twin deficit was around 9% of gdp. what happened? the u.s. dollar has already fallen about 20%. and then it fell another 20%. it was interrupted by the prices because the money went back into the u.s. dollar. the problem with the u.k. is that -- and there was something else. the u.s. was able to raise interest rates in 2004, 2005, and 2006 to finance the deficit that is not the case because carney is going to cut rates. yousef: let me pick up on that. you think he will cut rates. where does sterling specifically go from here when you look at the charts and the fundamentals? >> if he does not cut rates this month, he may cut rates later. there are some who may want to increase the qe. the fundamentals on the twin deficits on the political uncertainty we are seeing, i 1.20 we could fall below towards 1.17. the technical say that we could settle back towards 1.25. the political uncertainty, the interest rate expectations, qe, the budget deficit, i think this could

the real story is playing out in bonds and currencies. andrew: i think what we are seeing is some of this test of divergence and how much divergence we can really see in between what has been stronger u.s. data and weakness elsewhere. divergence is going to be tough to continue. we were already at historically wide yield spreads and you have seen repeatedly a challenge that if the fed tries to get more hawkish in light of better u.s. dollar -- data, the dollar strengthens. generally speaking if we think about these yield spreads, if we see it narrowing between treasuries and jgb's and european yields we think there is too much priced in. francine: what kind of levels? andrew: we think the treasury anlds will be lower based on economic fears that the data is weaker in the second half of the year. we need to watch that closely because some economic data has suggested stronger data but some of the weakness in oil and other commodities suggests a little bit of a weaker picture so it is something we would have to watch. we have more conviction

coming up, another highflying currency. live from singapore where the local dollar is nearing record levels. this is bloomberg. ♪ yvonne: concerns over brexit has sent the singapore dollar near a record highs. that may prompt the central bank to step in. amin. go to haslinda looking at more further monetary easing coming out of singapore? -- are we looking at more further monetary easing coming out of singapore? it is stronger against most other major currencies in the world. against the pound, up 14%. against the greenback, 5%. against the swedish krona, it is up 4%. it is seeking safety. safe haven play simply because singapore has a top credit rating. very unusual these days. accounts ofredit let's. three month ago, it was a completely different story. the same dollar was among the worst performers in asia and that's because of its economic indicators. they were lackluster. that hasn't changed. dollar spells trouble for singapore. it is an export oriented country. so experts will be had. it will putting question inflatio

have a look at what is happening in the currency markets as well.w the biggest ever fall for sterling against the dollar. second today and monday and tuesday, declined yesterday, declined today. it is unchanged against this was it is unchanged against the swiss franc. lowest deal since march last year, small increase. is lower. when yiel vonnie: that sound and pictures sending shivers up my spine. it has been a wonderful week in some ways and absolutely extraordinary in other ways. november.n since again of nine points. the dow up a third. nasdaq is up 7/10 of 1%. in currencies, a little bit of movement, a little bit of dampening on the dollar index. low 96 now. at that. all the way below 15. a little bit of research and see -- resurgence. dollar-peso, we saw it hike teams.rstens and its market,ndon's art uncertainty leading up to the vote made some sellers hesitant to part with the art. christie's 250th anniversary sale fetched $33 million, setting an auction record. it shrugged off volatility, selling all but four. >> clearly, the great artist, wh

currency headed toward its biggest two-day slide. this as the fed did know some improvement in the economy. >> let's get a check of the headlines on the bloomberg first world news. mark: hillary clinton is ready theake history tonight for fourth and final night of the nationalcratic convention. the former u.s. secretary of state will become the first woman in american history to accept the presidential nomination of a major political party. she will entered -- be introduced by daughter chelsea. speaking tonight, retired general john allen and senator sharon brown of ohio. mrs. clinton's leading trumpet in the battleground state of pennsylvania. clinton maintains that lead even when libertarian gary johnson and jill stein are included. clinton leads with 46%. vice president biden in u.s. attorney general loretta lynch louisiana at this hour attending a vigil in honor of the three law-enforcement officers killed by a lone gunman outside a convenience store earlier this month. morris johnson made his first official visit to paris as the

currencies next.onathan: viewers worldwide from new york city, this is bloomberg. risk appetite is decent globally. and up.res are up likewise on the s&p 500 after a record high closing in yesterday's session. the ftse 100 is unchanged. much stronger after the boe decides to keep rates unchanged. appetite --risk look at the dollar-yen. still pretty good. up another full percentage point as the debate rages in japan -- when and how big will be stimulus, and how effective will it be when it does come? vassilius now is serebriakov. great to have you with us. a rateg suggestion that hike is coming in three weeks. do you enter short here around 134? for ai: i would wait bigger rebound. at the end of the day, what it does is argues against some of the extreme forecast for sterling. i know we have seen in recent weeks, 125. i think the bank of england is careful about not being too aggressive. not weakening currency so as to create a negative effect for inflation. or a negative financial market impact. the b