china ask as a good anchor for some of the em -- acts as a good anchor for some of the em's.di: the valuations are so cheap, particularly for hong kong. would you be tempted to get back in? toby: it is whether china is the largest em in the world. it depends on how you look at it. at the end of the day people watch china closely. the data is consistently one that shows rationing growth and stability. at some point the trade conflict and level of risk, you go, i want to put myself in china women have this messy escalation. fundamentally -- when we have this messy escalation. fundamentally i would get into that space with some degree of confidence on the basis the trade conflict doesn't escalate to the point where it will line up on growth. shery: with chinese markets rebounding, it was interesting to see -- this library showing you the turnover falling. we haven't seen this since 2016. as investors stay on the sidelines and prefer cash, how will this play into the markets? we have had the northern summer. you are going to have less liquidity, less activity, more likely to be m

mark: probably one of the most interesting things is despite the panic around em, most em assets actuallywell. what is interesting is to see in asia whether they will follow on that positivity, or the bigger theme, which is em turmoil. in the new york times we saw highly under pressure em currencies like the brazilian lira, all ofrkish them strengthened in new york time. these narrowed, so overall it is looking more positive, but we don't know if it is a reprieve, short-term, a little bit of a break in a selloff, or if it is a turning point. it might be. there is a strong chance to the latter because we are seeing this broad and it. normally when we get the macro, those who don't know about em and don't look at emerging markets, when they panic, that is when we know you are getting near to the end. yvonne: you are seeing a light at the end of the tunnel. he wrote about tariffs. everyone is waiting for the next trench of $200 billion of goods. you are saying that will not happen. i strongly believe there will not be the full $200 billion of tariffs implemented this week or month. it is muc

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does there, moment when value appears in em? i am seeing equity markets fund into em.ny of that at jpmorgan? is there value in any of these currencies are equity markets? it depends on your time horizon. in the next three to six months, we don't believe the pain is over. trade talks don't necessarily ease and there are further concerns about specific markets on the geopolitical -- geopolitical side. if you are 13 -- thinking about at therm view, these are top of the expected returns over 10 to 15 years. and about finding the time deciding how much you will take the volatility in the near-term. neutral on em for the next two years as a person the u.s. which seems more robust. manus: the jobs and wages information we got on friday and the repricing around fed rate hikes, does that support the argument that too early to dip your tell back into em? nandini: not just one jobs report is going to ruin the path they have set. they're going to be hiking and we will see two more in the first half of next year. it isn't going to be genetically too high for u.s. companies and not

that is not a good sign for em, which is very trade independent.uess i have been through too many of these. i remember 1997 and 1998 very well. usually there is an event at the bottom. it doesn't feel like we have hit that event. jonathan: i want to give our audience a flavor of what you are talking about. this chart comes from you. a comes from charles schwab. it is where em spreads are relative to treasuries and where we have been in previous ssues. the china hard landing phase, the eu sovereign debt crisis, that is where we are on the bottom right there. your view on where we are and where we need to be to get you back in the game? >> i would prefer to be over 400 basis points on that spread. and that is just the recent history. that does not include the great financial crisis and a few other things that are not analogous now. i would like to see closer to 100 basis points from here before i get comfortable. >> that level has been talked about internally with us as well. when you look at the broad em marketplace, you have a variety of stories. w

finally catching this em cold. a wild start.ng equities pretty much flat on the nzx 50, but we are seeing equity futures heading lower. asx futures down .3% right now. flip up the boards and take a look at currencies, 20 year lows on the indonesian rupiah. 111,r-yen holding around . 55 u.s. cents for the kiwi at the moment. the bond market, no flight to safety and treasuries. we did see selloff across the board. the u.s. 10-year note ticking up overnight. jgb yield at 12 basis points after the boj insted its bond buying september. coldwater out there about faster tapering after it cut the frequency of it purchases. get a fullime, let's rundown on the wall street close because the dollar advanced again. was on strong factory data and looking at companies, specifically facebook and nike, helped push major stock indexes lower. su keenan has the action here. theeight out of 11 of sectors were lower. we had investors come back from a long three-day holiday weekend. backs down, trade war is on the forefront, and the fed

more of a challenge for em.ome widening in good markets deserves reviewing those opportunities. the spread still has to go wider. jonathan: the upside is that the chinese market, at least in terms of foreign exchange, has stabilized. there might be some people watching this who say 100 basis points is greedy. it's not going to happen. the opportunity might be there right now. what would you say to that? >> i agree there is probably some opportunities, but broadly speaking, i would rather not try to catch the falling knife. or whatever cliche you want to use. i would rather sit back and be greedy in this as a class. -- asset class. schwab sticking with me, as well as rj gallo and diane imola. i want to get a market check. where bonds have been this week. yields higher through the curve. from two through 230, up by eight basis points at 3.1%. that is your yield curve in the treasury markets. still ahead on this program, the final spread and the week ahead. central bank decisions from the ecb and bank of england. t

tom: let me go over to em. this is the most inflammatory em chart.re other series that are not as greeim as this. this is the jpmorgan index from the beginning of the year. massive acceleration. you can see the leg over the labor day weekend and the united states. just a new acceleration. we will collect a september depreciation. chart.e: i like that mine is a very simple spread between a tiant and german ten-year yield. -- italian and german ten-year yield. blank meets today for the fiscal targets. exchanges reopened after labor day yesterday in the u.s. a holiday seen as the unofficial end of summer. earlier, argentina's government announced emergency measures tumble.g the peso's , >> to cover what is missing during the transition it has become an emergency, we will ask those with more capacity to contribute. i'm referring to those who export in argentina, they are contributions are greater. francine: for more on emerging markets, we are joined by george sarvelos. great to have you on the program. how low can these emerging-market currencies go? ge

david: your projections for em are particularly concerning.l put up a chart that shows you revised downward particularly for em, gdp growth projections. how much of that is trade, and how much of it is other factors such as current account deficits , debt levels, the strength of the dollar? we have been highlighting this morning is , policy, and, em finance. where we see some of those risks , it is mostly trade and em. for emerging economies, differentiation is key. turkey and argentina had some very high funding needs in terms of foreign currency and dollar, but the emerging economies with sound currencies and have not elevated their currency and have sound monetary and fiscal policy, then they can weather the global tightening conditions with some small depreciation of their exchange rate. we differentiate depending on the macro fundamentals of the emerging economies. david: coming back to develop economies, let's start with the u.s. you do project strong growth, but emphasized the importance of that being sustainable and evenly distributed.

and the high-yield em market.athan: let's talk about em, diana. this is where you specialize and spend time looking at stuff. the third quarter has been brutal for emerging markets as people wake up to the idea it is not idiosyncratic and there is something broader happening here. what is your take from the third quarter as we approach the end of the year and how you should be positioning? diana: it is interesting actually. i think the point on what has been widening in em is key. most of the widening of the spread we saw was in a few idiosyncratic names. argentina, turkey, brazil, indonesia. i think now, where we are at this point is, we are at a point where argentina seems to be heading in the right direction with the imf coming on board and money coming through to the country sooner. turkey delivered, despite a lot of skepticism they wouldn't come through. so a lot of high-yield names are actually looking a little bit better. and we expect in this quarter to see some of that under-performance in em come through

what is next on the em radar, alexander?er: if we look at this week, we could perhaps suggest there are faint signs of a relief rally. emerging markets are climbing, yesterday, the currency strengthened by the most in something like three weeks. you have got these big issues which are smoothing out. you have got the dollar weakening, there is optimistic noise about the u.s.-china trade talks. and as you say on turkey, at the idiosyncratic level, there are steps being taken by central banks that have called the investor jitters -- calmed investor jitters. matt: thank you very much for joining us. talking about what we can expect from the russian central bank. still with us is patrick armstrong. saw a remarkable moved by the turkish central bank yesterday, the president's wishes, raising rates. to turn things around, put a floor under em in general. do you see pockets of , since theyin em were so battered over the past few weeks and months? alexander: we have been looking at it closely and it is an area we will get into. the v

em currencies, longest losing streak since 2015. em stocks slumping again. turkey, latest inflation suggesting there's price risk ahead. that will continue to affect emerging markets, but strategists, like our guest we will speak to slightly later, so you have to differentiate between emerging markets with strong fundamentals and those without. quickly on the indonesian rupiah, breaching 15,000 now, a level not seen since the asian financial crisis. of course, the hong kong dollar, hkma, expected to continue to buy currency trading at the low end of the trading range. for now, let's get first word news with paul allen in sydney. outgoingico's president says potential nafta replacements must include canada. and wreak opinion you to -- nieto says it is important to keep canada in the agreement. he says mexico has not accepted any quote as or restrictions -- quotas or restrictions in talks with the u.s. president trump indicated he might exclude canada from the potential deal. china is using a meeting of african leaders in beijing to t plans criticism its vas o

we are keeping an eye on em stocks. .25%, a bear market for em stocks.he green. below 14.w the dollar is key to what happens in the e.m. currency world. stronger dollar pain for em currencies. we are seeing a pullback in the u.s. currency. in washington, president trump has hit out at the new york times reported after the paper published an opinion piece suggesting key members of the administration are secretly working against him. he is demanding the paper revealed the identity of the author. joining us now is kevin cirilli. the parlor game in washington is trying to figure out who is behind this anonymous op-ed. kevin: it is the talk of the town. from the administration's perspective, we are trying to say the deep state exists and this is part of a broader coalition inside the government to make it more difficult for the president to accomplish his goals, and critics are saying, we told you. this is an administration completely at odds with any type of political norms. latestbeen the illustration of how unique this political moment is. francine: can th

better call ems. >> 960, hotel 16. yes, can you get ems on the way to 301 jasper street. >> copy. they're on their convey. >> if you've been exposed to fentanyl, you want to take that very seriously. you want to tell a supervisor or buddy and tell them what is going on. first step is to prevent any further contamination. next step is not to touch your eyes, your nose, your mouth. that way you'll prevent further exposure. third is to simply wash the area with soap and water. finally, if you think your clothes or some of your protective materials have been exposed or contaminated, you want to remove those through your standard decontamination protocols. more and more first responders are being provided with maloxone. you want to administer is per your established protocols. it's a very safe medication and it can very rapidly and effectively reverse the effects of fentanyl and it can be life-saving. >> how are you feeling? >> okay. >> having any trouble breathing or anything? >> no. i did get a little on my skin accidentally. i washed it off with soap and water and gloved of

law enforcement, firefighters and ems personnel. those of you that will be on the stage here momentarily and in the audience there, the associations that you represent, thank you. and thank you for your dedication, your service, and your continued collaborative support. support. if i can get the panel members up here right now. gentlemen. to our distinguished panel, good afternoon. please take a few minutes to introduce yourself and tell us why this video and guidance materials are important to your stakeholders. >> i'm the vice president of fraternal order of police. about 340,000 members coast to coast representing rank and file law enforcement. keeping our members safe is one of the top priorities of the fraternal order of police. one of our top goals is to protect themselves from fentanyl exposure, from prevention through treatment. so we're looking forward to this video providing correct and accurate information to our members and allowing them to eliminate that worry of a fentanyl exposure. one of the things that i think was m

we better call ems. >> can you get ems on the way to 301 jasper street? >> sending ems 2301 jasper street. >> they are on the way. >> if you think you have been exposed to a substance that can be fentanyl, you want to take that very seriously. alert a supervisor and tell them what is going on. do not touch your eyes, your nose, your mouth. that way you prevent further exposure. the third step is to simply wash the area with soap and water. finally, if you think your clothes or some of your protective materials have been exposed or contaminated, you want to remove those with standard decontamination protocols. more and more first responders are being provided naloxone for use in the line of duty. you want to administer it per your established protocols. it is a very safe medication and it can rapidly reverse the effects of fentanyl and be lifesaving. >> how are you feeling? any trouble breathing? >> i got a little on my skin accidentally, but i washed it off with soap and water. >> okay, i will check your pulse. >> we have a multilevel defense that will ke

fire and ems folks and t-shirts, lely ems opposed to fire position themselves closer to the fire and help out too, it looks like. >> any more fire trucks coming up on the scene? >> reporter: not from this side of the obviously, like i said, we're on the other side of the rine corp. property so all the engines have been coming inrom 4th street, from virginia well, from m street as and they've been, obviously, lining up there along k street and 5th street to have clo an access to the building as they can. looking at the smokebillow, it's not as black as it was when i was walking a over, i don't see from where we are standing -- there it , i didn't see flames, but in the middle between the two largerth parts of building, a roof that's a bit lower, you can see there's flames there, and there's still water shot on to th flames as we speak. this is -- this is aire that i overheard was under control, but it looks like at least there's more flames that are popping up. >> a if you are just joining us, you are watching live coverage of a raging fire being aggressively fought there in the 900 b

developings, the pretty extreme negative correlation between em equities and all em efforts and the u.sllar. it is getting worse. in terms of what will get you to change your view on em's, we could talk about the idiosyncratic stories, but does it really come down to the trade story and the u.s. dollar? chris: i do think absolutely, they are the two, if you look at variability of the market, that is causing a lot of the gains in that situation. so you probably want to see reversal which changes the psyche of trade, which is that we believe the dollar is on joe word trajectory -- is on downward trajectory. the trade situation, if we get clarity that makes us believe we are past the end of this, getting closer to diplomatic resolutions between china and the u.s. and supply chain countries see reversal as well, then perhaps we can have confidence to do our toe in. inhink valuations are cheap these markets because it is difficult to put a value on them because of the assumptions you have to price into your model changing all the time. my view is to continue trading where the trends are bear

how much further do em woes have to go?snaps a four-day streak and the dollar weakens amid concern president trump will impose additional tariffs on china as soon as today. pound ping-pong. sterling falls on theresa may's threats to go hard on russia over poisoning. it bounces back as the u.k. and germany are said to drop a key brexit demand. a warm welcome to riyadh. we are truly global a london and part of saudi arabia. the state of play on the equity markets, emerging markets are some would say in freefall. a little bit of a bounce in the currency market. not much in equity. london is called lower by 0.3%. you are seeing this pressure from emerging markets. very much a global perspective. are we at a contagion point? that's the question for markets. or is it isolated to banks? a little bit of german data, i believe. anna: german manufacturing orders, this is weak. it is down month on month. just one month's worth of data. that is always the important context for this. the estimate was for an increase of 1.8%. it does loo

that's an interesting divergence between em market in the high-yield em market.n: this is where you specialize in spend time looking at stuff. the third quarter has been brutal for emerging markets as people wake up to the idea it is not idiosyncratic and there is something broader happening here. mena: it's interesting to and i think the point on what has been widening in em is key. brazil,a, turkey, indonesia. i think where he are at this point is we are at a point or argentina seems to be heading in the right direction with the imf coming on board and money coming through to the country sooner. turkey delivered despite a lot of criticism. a lot of high-yield names are looking better. we expect in this quarter to see some of that performance come through. jonathan: some of the local issues have been addressed but we have the macro problem for emerging markets. china has slowed high yields to the united states. can you be constructive on p.m. right now? -- em right now? scott: we have had some high-yielders really implode. there has been a really big rally for t

we talk about the breather in the em space, not so much. include the 30 year yield up 56 basis points and the brazilian tenure up to 12.6%. even on a quiet day, some backing away from long bonds in em. caroline: we saw some reprieve in the currency market and that's largely because we have the dollar index on the downside. it was up 2/10 by 1%. i'm keep in -- keeping an eye on the loonie. the top officials are debating whether to accelerate the pace. get discussed whether to rid of the turn gradual and the canadian dollar strengthens. the argentinian peso is also strengthening. 2.7% higher against the u.s. dollar. it's the second a day gain. they met with the imf and will they get more of the credit line sooner? the ruble was weakening down 1.5%. the ruble is tumbling to its weakest in two years. they said the nerve agent attack by the kremlin and monetary policy issues at play. joe: let's take a look at commodities with oil and gold. not a whole lot. oil is falling below $60 per barrel. it has been in this range forever. gold is up a littl

matt: em credit looks very interesting. we have been adding to our em credit areas. in terms of emerging markets, too much diversification is not a good thing either. we doourage you and what for all clients is focused on all clients -- all areas of asia. joe: this year with u.s. outperforming, everyone must wish they are less diversified. matt: they do. we should not look at this as something accidental. when you rank countries in terms of vulnerability, this is one episode in a series of episodes for the region. it should not be unexpected. scarlet: sarah, talk about the central-bank action from the ecb. did that play into anything at all or is that business as usual? sarah: with the ecb and boe, it is business as usual. the eyes were on turkey. there is a lot of uncertainty about what the central bank there would do and the president is coming out making it seem like we would not get anything but then we get a raise up to 24%. we saw the lira react. that was where the action was today. joe: which was more important, the increase in interest rates from the targets

a lot of high-yield names that have been dragging em are looking better. in this quarter to see some of that performance come through. jonathan: some of the local issues have been addressed but we have the macro problem for emerging markets. china has slowed high yields to the united states. rate hikes keep coming. can you be constructive on em right now? scott: we have had some high-yielders really implode. with some of the policy responses in these countries, there has been a really big rally since the end of august in some markets. turkish two-year bonds, 11.5% yield to 5% yield. a big move. as investors are concerned about the backdrop and concerned about idiosyncratic risks, to some degree there is uncertainty that has been addressed. look at the fed's statement. the economy is chugging along. the chinese response to the tariff situation seems to have some sort of calming feeling. i think there are really some interesting opportunities in the higher yield. jonathan: when you do mention the hedges, the yield pickup is not there for treasury, whether eu

that is not a good sign for em which is very trade independent. have been through too many of these. i remember 97 and 98 very well. event at the is an bottom. it doesn't feel like we have hit that event. >> i want to give our audience a flavor of what you are talking about. this chart comes from you. sovereign spreads are relative to treasuries and where we have been in previous issues. that is where we are on the bottom right there. your view on where we are and where we need to be to get you back in the game? >> i would prefer to be over 400 basis point on that spread. is the recent history, that does not include the great financial crisis and a few other things that are not analogous now. to 100to see closer basis points from here before i get comfortable. >> that level has been talked about with us as well. when you look at the broad em marketplace you have a variety of stories. idiosyncratic has more in systemic. we are not confident that will remain the state of nature. as china gets worse, i agree. widening in good markets deserves reviewi

does what goes on in em stay in em, or does it start to bleed into other economies? to have been every now and then and tend to emerge every time there seems to be turmoil in emerging markets. we have to look into the linkage. on the one hand, we have the contagion channel, which probably takes more to be disturbed. then, you have direct linkages either for the banking system or through central exposure. that doesn't seem to be particularly large at the moment. on the other hand, this remark from alberto earlier, the third for yield in the past has actually generated significant influence into the emerging markets. as this unwinds, it is normal to see the tension and emerging markets extend. even the discernible direct linkages are not particularly large. tom: alberto, i want to go into what you just mentioned. over into bonds. let me bring up where you go when you have a weaker currency. in this case, it happens to be turkish lira. a chart we have shown many times, which is the bonds within turkey. appeared twentysomething percent. you can see this huge move in thei

and does it mean for em zimbabwe?g forward, our sense is that the dollar is going to continue to weaken against the advanced economy currencies. , which are em sensitive to fed tightening, you're going to see things going the other way. the dollar will go up. , how does theis em respond? minister ncube: we talk about the impact of macro policy on economies but also on development issues. u.s. is some focus on the and the dollar and monetary policies globally. any weakness in emerging markets is going to cause trouble, especially in argentina, south africa, to mention a few. for thel cause concern imf. francine: i want to come back to trade tensions. , andere was a trade war escalation of the tension between the u.s. and china, what impact would it have on zimbabwe and the region? would it lead to more inflation? trade tensions ,etween the u.s. and whoever will have some impact but not a big impact. thatork we have done shows it is going to boost u.s. growth which is strange. a stronger u.s. is good for commodities, wh

that's one of 'em!eal people, that you will go out all day and not see someone like that. all my life, i've been a symbol. a symbol as eternal and changeless, an obstruction. a human being is mortal and changeable, with desires and impulses. hopes and despairs. i'm tired of being a symbol, chancellor. i long to be a human being. (jeanine basinger) marlene dietrich, greta garbo, they're like some kind of ... other. if you come closer, i'll scream. it would be easier to scream without a straw in your mouth. (music playing) (jeanine basinger) it's a romantic kind of woman, that isn't one we connect to as easily as we do crawford wanting something for herself, and who's very realistic and down-to-earth. you don't own me -- nobody does. my life belongs to me. and you'll make one fine mess of it. it'll still belong to me. marian, you frighten me when you talk like that. if i were a man it wouldn't frighten you, you'd think it was right to go out and get anything. use anything i had to get it. why should men b

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how much further do these em woes have to go? the yen snaps a four-day losing streak and the dollar strengthens amid concerns the u.s. will impose additional tariffs on china. as soon as today. pound ping-pong. sterling falls under theresa may's threats to go hard on russia over poisoning. the u.k. and germany are said to drop key brexit demands. i'm going to be speaking exclusively to the ceo of -- at the aviation festival. what kind of a brexit is he preparing for? we will find out just after 8:00 a.m. london time. matt: very much looking forward to that. we are less than a half-hour away from the start of european trading. take a look at futures right now. we are looking at a mixed trade with ftse futures holding their head above water. other futures down. cap futures unchanged. futures unchanged. take a look at gmm. you will see big moves across asset classes over the last 24 hours. starting with the equity indexes you can see the saudi is down more than 3%. to easy out was down almost 2% 2%.unisia was down almost zealand, in

>> yes, yes, wilmington ems. >> i just left the wilmington ems. they're doing tremendous work there. the director stood up told his folks we have been preparing for this type of storm for five years, let's go and execute. i commend them for all of their great work. again, to all of the residents here, please heed the advice of the local officials and evacuate if you can. >> one last one for you, congressman. we know the white house is in touch with various governors, fema. you're there on the ground, walked out of wilmington ems. you have an ear to the ground. what would you want the president to know as the storm approaches your home district? >> well, we had a call this morning with the administration, brock long, administrator of fema. the administration is well aware of the scenario here. all hands are on deck. the federal government is going to have all resources available to us. and i know the president has been well briefed by brock and others in the administration. i have no concern about that whatsoever. i hope folks heed the warning to e

em reinforce, the discount dm- is quite severe and compelling. you can enter now.ll not repair itself anytime soon with contagion. if the by earnings going forward and the developed market, and remember, good emerging markets have been impacted because they are generally more liquid. if there is something happening in turkey were argentina, they are small parts of the em. people will take the highly liquid ones and exit those as well. having said that, that discount is quite compelling. it should be thought about. it is too early though. you have got risk budget on occasion. you are not there for a of three or five years. it is compelling to start now. it will not go away anytime soon. they tend to spread and worsen, but it is very compelling valuation, so i think it is becoming more compelling going forward in the next month or two. kathleen: the cheaper it gets, the more compelling. i want your view on how the federal reserve has played into this and how it will play into this because it seems you can trace some of the early crumpling in emerging markets to the f

first to turkey -- markets em markets -- em markets. first to turkey.for 2018 i think they are done. for 2019, i think they will not do much in the early part of the year as well. i think they have done their job and it's made for a very good economic test yesterday. the -- economic -- yesterday. the central bank has gotten ahead of the curve. the economy will slow down and that's exactly what you need. you need the economy to slow down, the current account to go down, and that makes things ok. francine: the current president will be fine with that? bhanu: we will get a clue on that in the near term when they come up with an economic plan. we really need to see significant consolidation out here. if we don't get that i'm afraid turkey will come under pressure again and then the central bank will have to move again. i think monetary policy will have to lift the rubbish of the rest of the economy. we need to do prioritize growth and prioritize stability. i'm not sure that outside of the central bank every policymaker in turkey understands that, but the ce

should people shift their portfolios to tilt them to em. how do you safely take advantage of this opportunity? geoff: it is a great question because it's incredibly difficult to pick the bottom. we just don't know from one day to another where the dollar will turn, saw a definitive but it would be nice to say you load up on turkey and russia, argentina, and brazil. more people should be beginning to move back into the markets. it grabs in a more defensive way , and the sectors that we like that are worth looking at, the oneske financials, important in the emerging-market worlds, is decent enough you are seeing credit cycles developing. also, with oil prices being energyhey are, we like as well. there are things people should do, but simply saying we know where the dollar is going today, tomorrow, and the let's -- in the next day is a very hard thing to do. we need to see people take on a lot more risk in the weaker fundamental stories and asset class. , great togeoff dennis get your analysis, thank you. jack dorsey is still facing questions

that would hurt em. >> it would. impacts on a lot of emerging markets, in particular those that trade closely with china, korea, taiwan are obvious examples. if there were to be a shop slow down -- sharks slowdown in china, much more severe than now come of that would put the asset class under pressure. that does not happen to be part of our scenario. fromt our growth forecast 6.2% to 6% on the back of the latest tit-for-tat moves on the tariff front, but we still believe over all that china is slowing in a controlled way, the soft landing continues to play authorities in china have got room to ease policy at the margin, or perhaps should say reduce the pace of tightening at the margin, which will support the economy come is so a crash in china will be unhelpful, but we don't see that happening. tom: thank you so much. opinion,differences of the informed opinion of ubs. know what our guest will say, the chairman of the president's council of economic advisers likes economic growth. this is bloomberg. ♪ >> this is "bl

you cannot just say all of em. em is two completely different markets. 75% of the country or so, you haven't seen that. you are talking about argentina and turkey, and to a lesser extent, brazil and russia. they are all stories there, all things that have to happen, they are all policies that have to be put in place, and the dollar is going to be a big story. jonathan: what have you been buying? give us a flavor of what you have been up to. gershon: not a lot. we went into this year positioned with quite a bit of things outside the u.s. and that has underperformed. we probably added into it. we do think argentina is particularly interesting, and at the end of the day, there is support from the imf, you have two-year local bonds yielding 60%, and the odds of that outperforming over the next couple of years is very, very high. krishna: have been up to. again, emergins are the best value, if you buy anything at the margin, that's where you look at value. let's be clear about one thing, that is emerging markets, not just dollar denominated debt. it's local c

last week it was em that headed into the decline. keep an eye on the hang seng for that market.t to show you the worst performing currency of the year in asia. that's the indian rupee. it keeps hitting new lows against the dollar. today is no exception. look over here. that's been very correlated with the 10 year benchmark yield. you can see right over here, they start to become really correlated. analysts say this is putting pressure on inflation and the worst is yet to come because these are moving together. nejra, manus? nejra: that deficit widening to the most in five years, affecting the rupee. let's get bloomberg first word news with juliette saly in singapore. juliette: thank you. in the u.k., boris johnson has launched what many see as a new bid for power,: the prime minister's exit strategy a humiliation. in the mail sunday morning, he savaged theresa may's policy as keeping britain tied to eu trade rules after brexit. in an interview with bloomberg, the eu's budget chief gave an assessment of divorce talks with britain. ongoing.gotiations are the new chief negotiator o

take 'em to missouri, men.whistling and yelling) (budd boetticher) you've got two stars in a western. you have your leading men and you have your location. it's so refreshing to get out and smell the fresh air, see the colors of the flowers and the trees and the mountains and the change when the sun sets. and a great deal had to do with the cinematography. you felt that you were there, you weren't cooped up. you weren't in apartments. you were outside. (budd boetticher) you see the west's vastness, that lonesomeness. they want the gulp in your throat. they want your heart to beat a little when you say, "my gosh, he's in trouble if this is indian territory." underpinning all this stuff is the idea that this is a very romantic view of nature. and there's always that kind of elegiac quality in westerns. the idea that the land endures. and all these antics of humans sort of come and go. that's why the main characters of great westerns are often the landscapes. i mean the monument valley's been the hero of more than

this chart shows the ratio of em to g7 f acts -- g7 fx.s is not a level we have seen since the financial crisis in 2008. at the bottom you can see the jpmorgan e.m. currency 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 thata