andiscussed dollar weakness e.m. fx strength. we have also seen much more differentiation. some currencies have continued to weaken. there are quite a few others that has strengthened significantly from their loads. -- lows. the next one to follow in that sphere of saying, we have seen the bottom, we are going to rally, is the indian rupee. .rowth is exceptionally strong the currency has been beaten down a long way. there is a real chance for the rupee to get momentum if we see this macro turning shifts in dollar weakness and e.m. fx strength. anna: let me ask you about another emerging-market. we get a central bank decision in russia later today. what is your expectation? mark: i think people have begun debating whether there will be a hike or not. say, either 50 basis points or nothing rather than a 25 basis point increment. the consensus is there will not be a move today. nothing too drastic. the base expectation is no hikes. i think the ruble probably expects a rally no matter what happens today. the current account has been actually -- absolutely surging. oil is back a

e.m. fx is substantially weaker so a tremendous amount of value.athan: stick with me, krishna memani and subadra rajappa, and gershon distenfeld. in the markets, twos, tens, and 30's. yields higher at the front end by seven basis points. cycle highs on a two-year, 2% on a one-month bill in the treasury market. have a think about that. up four basis points on tens, twos, and 30's. still ahead, the final spread of the week from the bank of japan and the 10th anniversary through the weekend of the collapse of lehman brothers. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." it is time for the final spread. coming up over the next week, we will have the official 10-year anniversary of the collapse of lehman brothers. plus, we get a summit in korea and a decision from the bank of japan. and we get data from the u.s. 10 years, looking back, i want to look forward a little bit and think about how this market has changed post-crisis. a lot of people point to illiquidity and what should be a very liquid marke

e.m. pressure spreads. the emerging market rout shifts from fx two stocks with benchmarks across asia slumping on the prospect funding cost. as the legal battle over the weedkiller roundup overshadows the acquisition of monsanto. two buyers still feel like it's a good deal? like buyers still feel it's a good deal? as commerzbank looks to get kicked out of the dax index, will it ever recover from the financial crisis? good morning and welcome to bloomberg markets. "the european open." i'm alongside guy johnson. guy: 30 minutes into the trading day. down .4%. it follows the losses from asia. real stock story movement to the upside this morning. company. diagnostics in vitro diagnostics for the pharmaceutical sector. there are zero cells on the bloomberg -- zero buys on the bloomberg as far as i can tell. the stock has come up quite sharply but it looks like the analyst community has said this is as good as it's going to get. but the numbers don't speak to that. the company flying. caux trading up as well. it's trading up this morning. wildcard up 1.84%. bottom into the market, ambu, this is a company that does

number of markets have closed in asia and you are being it reflects through the fx space, and we had a good two weeks in e.mnot today. it was nice to find it. thate is weaponize inc. according to sources. sebastian salek -- good to see you. >> hello. trade is front and center as we kick off with those terrorists. markets close from china to japan, south korea, expect lower trading, a third of what we see on a typical trading day. that is playing out across the hang seng, weakness in malaysian stocks, the indian rupiah and the south korean won feeling the brunt. you have brent crude up, wti crude at the highest level since july. opec falls short of the pledged to boost production. many are seeing a return to a $100 oil which we haven't seen since 2014. ,hey have got a long way to run so we are a little bit short of those predictions at the moment. let's take you back to that em story. i have one story in local currency in white and one in dollars in turquoise. the pictures are dropping today but this latest trend is something of an uptick, so they have been weathering the storm on the trade talks despite see

fx. this is not a level we have seen since the financial crisis in 2008. at the bottom you can see the jpmorgan e.mrrency index down 13% year to date. its worst full-year loss was 2008. that was 15%. keep an eye on em currencies. nejra: we are, don't worry, me and simon french. ballots get the bloomberg first word news. in the u.s., the trump administration imposed a 10% tariff on about $200 billion in chinese goods next week and more than double the rate in 2019. the move deepens what is shaping up to be a prolonged trade war between the world's two biggest economies. the president says in beijing retaliates against american farmers and industry, the u.s. will immediately pursue further tariffs on about $267 billion of chinese imports. an argentine federal judge has formerly -- formally indicted its former president on corruption charges. she stands accused of illicit association and having received rides from public works contractors during her tenure between 2007 in 2015. a probe thatart of has involved many officials in her former government. she has denied wrongdoing. denmark's parliament well

the correlations between the various fx crosses are not anywhere near the highs that would normally be suggested when we say the overall volatility has picked up in e.msuggests to us is the fundamentals are diverse across various e.m., and so far to spend an idiosyncratic stargate maybe things change -- story. maybe things change. there has not been any clearer signaling if the bottom is in or this could continue longer. david: that is interesting. alan krueger, this suggests it is case-by-case rather than the fed raising rates and tightening the dollar and trade concerns. how much of this is idiosyncratic or because of the fed? alan: i think it is a bit above. -- of both. you would have said the same thing 11 years ago before the u.s. financial crisis that everything looked like it was contained, and this was just a problem at bear stearns. correlationsthese remain low until they become and we are temporarily solving some of the problems, but we are not solving the root of the problem. alix: that brings up the problem of hedging risk. if you are hedging risk ahead of some big event, brexit or italian elections for example, you would not be rewarded

e.m. turmoil. scarlet: that is right where i want to pick up. it has spread to the idiosyncratic stories of turkey and argentina. which specific fxyou keep your eye on? yuan?e dollar in somestrong recovery of those currencies? i'm looking at a chart here of the correlation. does that hold the key to whether em currencies can stabilize? dollar wise, it is very important. if you were to break seven, and current circumstances, that would be an additional negative future. the fact that we have stabilized at these levels in the chinese authorities have brought back in the countercyclical factor in calculating its exchange rates, that is perhaps helping sentiment there. the portfolio flows don't actually back it up. that is definitely one proxy. if we just take the month of august. the big event was turkey. we have had a much -- if the consensus was correct in terms of a higher inflation rate in turkey on monday, we have had an indication from the central bank that they are going to act on the 13th, let's see what the central bank of turkey does. if they were to meet market expectations, that would be another factor that would help to