francine: thank you. $110 million. i'm trying to figure out how many countries gdp is less than that. i will figure it out. currency manipulator. yuan broke through seven against the dollar. steps to slown the dissent. to prove it does not manipulate currency, it is giving moves to better markets. -- battered markets. thank you for both, for joining us. china will let it go to seven. what was it actually? was it a fire call? trying to antagonize? put a stop to the antagonizing u.s.? theyat could below seven, have been signaling for quite a few months. the former po bc governor has signaled that. depreciate. we think there is long-term depreciation in the currency. seven,ket took a below they have basically given up trying to appease the u.s. in the negotiations so it is a political move. that is letting the market take its course. francine: they did not manipulate it but it is quite a powerful signal. >> that suggests we won't get a big improvement to the situation anytime soon but this is an obvious resp

francine? francine: thanks so much.led almost 16 billion pounds in the first six months of the year, more than the overple $13.4 billion. we spoke to the chief executive earlier this morning. >> the industry is tough out there. there is a lot of change and a lot of change in client demands. flows are definitely hard to come by. what can we do to change it? well, that is already in hand. one of the things we have announced this morning is we have a significant improvement in our investment performance something we have been working at for sometime. sums are ahead of benchmark, that important three-year period and we have seen a strong pil pickup in performance in the first six months of this year which i think will start to have an impact and i would point out that the net flows, the outflows in the first half of the year were substantially below those we experienced in the second half of last year. >> so that pickup in performance you talk about, what is that down to if we're trying to get our heads around how sustainab

francine, what do you see?or its biggest drop in a week. equitiesint out, u.s. are declining. european stocks are down some. because of turmoil in hong kong, argentina, investors are wary to get back into the trade war. tom: gideon rose, one thing to watch? yen, the japanese yen breaking down 105. we will do much more of this. more with gideon rose. coming up, the chief executive officer. this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. ♪ francine: this is bloomberg surveillance. tom, let's get back to the markets. let's look at the wall of worry. global bond yields, protests in hong k

francine: you are up there. carlo: we are considered by investors as a top class bank the cost of equity is related to the italian situation. with reduction of spread, we can have a -- francine: are you looking at job cuts? others --ank, and carlo: we already delivered in the last three years. agreement with a player in accounts specializing in payment. they are responsible for 40,000 outlets. we are responsible for another 10,000. country, 50,000 in the will allow us to reduce branches in exceeding targets of the plan, another 1000 branches. boosts in terms of cost reduction. then we will reallocate people. expectation is we can continue not only to be a wealth management story but also a significant story of efficiency in terms of cost ratio. reduction ofed the nonperforming loans, we can have a boost of net income in the next years. francine: 1000 retail you are closing down and relocation, how many people eat are you expecting -- with the jobs? received from the people within the organization some voluntary

that is the bloomberg business flash, francine. francine: thank you.hong kong, the airport is resuming operations after a night of protests. toourt order was obtained demonstrators from obstructing operations. president trump said intelligence agencies showed the military is moving troops to its border with hong kong. joining us is yvonne man. things are a little bit more quiet, do we have any idea of what protesters want to do next? yvonne: at this moment, we are seeing a different scene from yesterday. security is very tight here today. is two hours since the injunction order was imposed outside of the entrances of the airport. we are seeing airport staff block some of the entrances, only allowing passengers with flights out of hong kong inside the building. only if you have a ticket or boarding pass, you can come in. all people can head out, but coming in, you have to have that identification. airport also reducing the frequency of trains and the purpose of crowd control. they are also telling passengers to come and check in three hours before their

francine: i'll say. [laughter] andrea: but given how things are developing, should we see this trade spat spillover into further manufacturing slowdown, slower global trade, slower and , then weternal factors expect more cuts coming up. francine: the market has to take about. let's say there -- bet. does the slowdown we see get reversed? david: it is more of a question of sentiment. we have seen treasury yields fall by around 20 basis points just on the back of the announcement. , we woulds a deal expect that negativity to reverse somewhat. we have seen the stocks coming off and that will be a market that could benefit them obviously. francine: are we expecting more contraction? david: absolutely. if there is no fix, you will see further pressure upwards on safe havens and a compression of valuations. a solid earnings season will help push the other way. but that is why we have not been recommending people sell core bonds. bond, even before the surge, was up over 15%. that plays into the affect we always

francine?rancine: the yuan is rising this morning after the bank said fixing stronger than expected. but they still set for the reference rate at weaker than seven per dollar. well the yuan is up against the dollar and a basket of peers, it has hit the lowest level since 2015. joining us for more is our reporter on the ground, selina wang. great to have you on "surveillance." what signals is the pboc trying to send? : they are clearly china to prevent panic and send a calling signal. what is important is not the fact that it is weaker for the first time since 2008, what is important is it was set stronger than expected. they are trying to balance market flex ability and left the markets play a bigger role while avoiding destabilizing impacts and capital flight. that is more important than trying to weaken the currency. at the same time, he wants to make life not so difficult for corporate in china who have a massive pile of growing debt. that some see this as a key line being crossed, showing t

francine? francine: thank you so much.he jackson hole economic symposium is about to get underway with jay powell's speech. the most closely scrutinized .art >> the theme this year is challenges for monetary policy. papers will be presented on how to manage the economy. real topic on everyone's mind is how to manage an economy under assault from within. a u.s. economy growing at 2% with unemployment at 3.7%, inflation around 1.7%, does not seem to need additional accommodation. but the president's trade wars have fueled concerns in the business community. on wall street, which has priced in a series of rate cuts. constant criticism is also putting pressure on the fed and chairman jay powell. powell will kickoff the conference with a keynote address on friday morning. benng the financial crisis, bernanke uses speeches to preannounce qe2 and qe3. many on global wall street think jay powell will use the same opportunity. this week's minutes suggest many of the justifications for supplies rate cuts are still in place, but does

francine: thank you.bal investors and janet mui of cazenove r staying with us. tomorrow, we get an update on consumer capital inflation. rateursday, a central bank from mexico. this is bloomberg. ♪ ♪ tom: "bloomberg surveillance." g. eventful mornin moving airlines into hong kong and out, but certainly constrained as they shut down the airport. cathay pacific into tuesday as well. right now we will diverge to a nation that had 20%, 25% orlation, and now has 50% even 55% inflation. that can only be argentina. with an economy that is "out-of-control." it is a stunning loss for mr. macri. does the other party have a plan? reporter: good morning. it is not quite clear what the plan of the other party is. sose were primary elections, the president still has to fight the real thing in october, but 16% points is all but insurmountable. the economy really struggling in the last couple of years. argentines could not take the pain, and those percentages tell their own story. there will probably something much more

francine: thank you so much. canceled.ith flights says executive carrie lam protesters are trying to ruin the city. motives areerior going to destroy hong kong. .e-risk one country to systems francine: joining us now is stephen engle who joins us on the phone. what is the latest on the ground? stephen: right now i cannot give a good estimate of people but surely in the thousands have gathered. there's hardly any moving space right now. it is all around the central government officers. there are umbrellas out everywhere reminiscent of the 2014 umbrella movement, because it is about 38 degrees celsius out today and blistering sun but that has not deterred people. a peaceful protest right now as we head into the late afternoon but into this evening, they are at 4:30.or a flash mob police are nearby but they are staying away from this large crowd as we stand. it is pretty tense as we head into nine straight weeks of unrest here in hong kong. stephen, how is this affecting the hong kong economy? stephen: yes, it is. t

francine? francine: thank you so much. white house dismissed the idea that the administration is looking to cut payroll taxes as a way to boost consumer spending as indicators increasingly point to a potential downturn. president trump has insisted the economy is strong, while at the same time pushing for the fed to stimulate the economy. yesterday he called for a full percentage point cut. we spoke with the boston fed president, eric rosengren, one of the two members who voted against raising interest rates last month. take a listen to his thoughts. >> it was tied to the fact that economic conditions are still pretty good. 3.7% unemployment is still a very low rate. inflation is a little bit low. if you look at the core measure, it is 1.6%. if you take out some of the outliers, it is closer to 2%. in fact, it is exactly 2%. my own view was that we have to be careful not to ease too much when we don't have significant problems. so the focus is not to do something that affects the exchange rate or something that necessarily

francine?ncine: from wall street to the white house, hopes are high that jay powell kickoff the jackson hole symposium with a speech that signals he is revving up a series of rate cuts. there are also fears he is wildly out of tune with expectations. president trump is deflecting criticism that it is his trade war that is up to the risk of recession. >> i am doing this whether it is good or bad for your statement about a recession. fact is, some of the had to take china on. i like doing it because i have to. francine: still with us, our guests. when you look at the yield curve inversion, what was it? an impending recession, a quirk in the markets? it is sending the right signal. i don't buy the argument it is different, because it never is. if you look at the correlation, it is exactly what has been for 20 years. it is signaling something that is not good. that does not imply recession necessarily, but it implies risk is high. if the curve is right, you will have much higher volatility and the

francine, why don't you pick it up? francine: i'll pick it up. the end of really volatile week. looking at bonds. they're finally steady. treasuries paring some of the gains. there was a glitch on the ftse 100. we'll scene an -- we'll keep an eye for an adjustment. i'm looking overall what gold is doing. you see gold, tom, steady and a little lower. tom: i'm glad you put that in there. it's one of the indicator of dollar dynamics which is the lead story. we have a good guest on that coming up. over to the bloomberg, and i use my best survey of the dollar, the bloomberg dollar index. this is really good mathematics. in 2014 the scale on the dollar, the real story here amid all the political uproar is the range bound nature of the dollar. with that said are we seeing presidential tweets. the selector is up and we're right up here against a short term resistance of the last year and a quarter maybe to a year and a half. and you wonder when strong dollar chat will click into the great economic debate. francine: good chart, tom. i also love my chart.

francine?rancine: thank you so muchfrancine:. let's kick it off with oil. the international energy agency has said the outlook is fragile after the weakest patch since 2008. in demands growth i would hundred thousand barrels. -- demand growth is at 100,000 barrels. and a joined by our guest person from fidelity. let me kick it off with you. we just had the iea report. overall, if you see what has been happening this week, it is a lot of pressure on the markets. a lot of pressure on trade rhetoric. how can you be so sure it's not going to get worse? >> we don't know, of course. the u.s.-china dispute takes various twists and turns. clearly, there is a weakening of confidence. we have acknowledge that in his latest report. of course, we have downgraded our oil demand growth forecasts because we have seen a weaker data for the early part of the year. data for ther early part of the year. everybody hopes the discussions will find a satisfactory resolution. then we will look at the underlying on the

this is bloomberg. ♪ francine: i am francine lacqua in london.e bloomberg business flash in new york city. --ita: warren buffett berkshire hathaway's stake in amazon rose 11% in the second quarter. it is now valued at more than $1 billion, but amazon -- it's taken amazon is still lower than the stake in apple. and bill ackman is taking a big state -- big state in berkshire hathaway. his holdings are worth about $690 million. we are told the famous activist investor's stake is not expected to be an active one. carlsberg reported a strong first half thanks to a 17% increase in craft beer sales. net profit was up from a year ago. last week the danish beer maker raised its forecast. that led to carlsberg shares rising the most in the most a decade. that is the bloomberg business flash. francine: let's get the latest on brexit. jeremy corbyn has asked rival part is to install him as prime minister in an effort to block boris johnson's government from a no deal brexit. his overture was welcomed by the scottish national party but rejected by the liberal

francine: the u.k. minister boris johnson will travel to france this week to make clear that leaving eu with or without a deal. u.k. -- the u.k. faces shortages in fuel in the case of a no deal brexit according to a times report citing leaked government documents. the dossier prepared the office -- the times says the report sets out the most likely aftershocks of a no deal divorce, not worst-case scenarios. still with us, andrea iannelli. around,u for sitting andrea. first of all these leaked guess in a lot of people's interest, if you are boris johnson, you can have a way out of saying i had to postpone because we were not ready. if you are jeremy corbyn and you say, going to be a nightmare, we need to stop this. >> sending a signal that we are unprepared for might -- for what might come. we are getting close to october 31. needed tohemicals keep the british oil surprised -- oil supply safe. the report says this is the likely scenario. the government says this is the worst case scenario. gas is an unde

francine: argentina is at the crossroads. while the president is looking to us second term, his path to the presidency just hit a massive roadblock. at the moment, his main rival , the opposition candidate to grab the momentum and came in 15 percentage points ahead in the nationwide poll. >> this was a massive surprise in argentina, the 15 point difference between the two candidates. many analysts would say it is all but insurmountable. they like his policies. they are market-oriented. fernandez, it is not clear, and he would probably be more interventionist, it is not clear what he would do with the imf. it is pretty sure is today could be carnage in the argentine markets. >> the peso has plunged to a record low against the u.s. dollar. >> what happens in these next two months in a half? that is the big question. and today we have not seen the , opposition candidate. it seems like they are both comfortable in the situation where, you know, maybe a little bit of chaos can help them toward the election. so that is a dangerous

francine: asset managers are facing an existential crisis.rs, investors have been shifting their money into passive funds. this push has moved lower, led to the loss of thousands of jobs , and forced large-scale consolidation. the industry is on the brink of a shakeout. only the strongest will survive . what surprises did you find in your research? >> the industry is struggling. they have been pushed to a tipping point. active managers have been charging too much for subpar returns for too long. investors are voting with their feet and pouring out money for passive funds for some time. it's a fraction of the cost of active managers. in some cases, they have outperformed. industrywide, that has led to fee compression. thousands of job cuts of the asset managers, and wide industrywide consolidation. smaller players will continue to be absorbed by the larger competitors. some may disappear. vonnie: wall street's trading desks endured the worst first half in a decade. bonds are poised to take a hit. this is leading to a collective $5 billion drop

i am francine lacqua. he y

with that piling up, these were among the topics francine lacqua tackled on thursday in an exclusiveith the ck's vice philipp hildebrand.d philipp: the yield curve metals a great deal for banking no matter how you look at it. a wealth manager can be a way to diversify away from some of the risks of having a flat or inverted curve, but we are not going to see booming banks in an environment where we have the yield curve the way we have today. francine i look at it almost : weekly, but it just keeps on going up -- this is the value of negative yielding bonds, topping $16 trillion. are we in a bubble overall? philip: there are reasons why the market is seeking safe haven , and it is where you go. i wouldn't say this is a bubble -- this is a consequence of, on the one hand, a cyclical slowdown which we are now delayed, risks of recession are increasing, but most importantly , it is also a consequence of the governmental policies, particularly the populist policies we've seen in so many countries -- the notion that this will not harm the global economy is simply a fallacy that is now reve

francine: the u.k.johnson makes his first public attempt to renegotiate the brexit deal. in a letter to donald tusk, he says he's looking to replace the so-called irish backstop. instead, he sees a legally binding commitment not to carry out checks at the border, as long as the bloc promises the same. are we looking at perhaps maybe brussels giving him something to boris johnson, or if he comes back with it would it be enough? >> i think from the eu perspective, this is the best confirmation they could ask for of why and illegally mandated backstop is needed effectively , he is saying let's dispense with all the guarantees that are in the treaty and provide insurance policy and instead just trust us that eventually if it comes to it we will find a way to make it work and i just do not think that will fly with the e.u. the johnson administration is tried, and our positioning to blame the eu later. francine angela merkel has said : boris johnson's challenge to solve the border backstop within 30 days. she

francine: president trump delays tariffs on chinese manufactured consumer goods.a sigh of relief. the day after the night before hong kong's airport resumes operations, the government takes steps to keep demonstrators out of the terminal. and europe's engine sputters. the german economy shrinks, piling pressure on angela merkel to provide fiscal stimulus. ♪ francine: welcome

francine: i look at it almost weekly, but it just keeps on going up. value of negative yielding bonds, topping $16 trillion. our bonds in a bubble overall? philip: again, there are reasons why the market is seeking safe haven, and bonds is where you go. i wouldn't say this is a bubble. this is a consequence of, on ths one hand, a cyclical slowdown which we are now in the late part of the cycle. risks of recession are increasing. most importantly, it is also a consequence of the governmental policies, particularly the populist policies we've seen in so many countries. the notion that this will not harm the global economy is simply a fallacy that is now revealing itself. populist economic policies lead to bad economic outcomes, and markets are reflecting that. kailey: as global stocks plunged and yield curves inverted on wednesday, allianz's chief economic advisor and bloomberg opinion columnist mohamed el-erian spoke to chief -- david weston about the big economic picture behind the turmoil in the market. he said the federal reserve rate hike in was a p

. ♪ francine: fomc minutes site a midcycle adjustment as president trump slams the fed again. big speech tomorrow. waiting on draghi, investors look for clues from today's accounts. french pmi comes in better than expected but german of manufacturing remains in contraction. hsbc breaks its silence on the unrest in hong kong as the city faces and earnings recession -- an earnings recession unseen since the financial crisis. ♪ francine:

. ♪ francine: into the abyss. a fifth straight day of protests. slump. the senate delays a no-confidence vote in the government and italy -- in italy. welcome to "bloomberg surveillance," i'm francine lacqua in london. stocks

." ♪ ♪ francine: the intercontinental group is one of the biggest hotel companies in the world.rooms in 100 countries with brands like holiday inn, crowne plaza and the intercontinental. the holiday inn in nashville hosted bob dylan and prince, martin luther king jr. put the finishing touches on his "i have a dream" speech at the willard intercontinental in washington, d.c.

. ♪ ♪ francine: the intercontinental group is one of the biggest hotel companies in the world.900,000 rooms and 100 countries with brands like holiday inn, crowne plaza and the intercontinental. the holiday international hosted bob dylan and prints, martin luther king jr. put the finishing touches on his "i have a dream" speech in washington, dc. today on "leaders with lacqua," we meet keith barr.

about other banking systems, german or probably in the next year some other players with a lot of -- francineing ugly in the german banking system, would it impact that? >> not at all. the point is we are benefiting from the italian clients and increase 60 billion euros in six months our deposit bases and what we are seeing is also it move from other players into our deposit scheme, especially the private banking division and we are considered by the people annal rich opportunity compared to the big players. ♪ emma: this is "bloomberg best." i am emma chandra. the top stories in business, finance, politics. boris johnson's first full week was anything but quite as is exit brexit stance gave a downward jolt to britain's currency. cabinet holding the first meeting with ukip prime minister saying it will gather every day to make sure the country leads the eu on october 31. brexit this weekend and brexit.p this week in >> it is the messaging, a domestic message but also a message to the eu and also to the u.k. hopeful trade partners beyond brexit. there is a consistency since boris johnson has ta

i am here for francine lacqua. let's go to live picks of the g7 meeting. somedent macron is getting statements -- giving some statements to the press. let's listen in. >> he is probably the best informed. a few words about libya as we agreed yesterday. at the conclusion yesterday afternoon. ok. >> thank you. matt: all right. we are getting a little bit. macron saying they are going to bring up the subject of libya. it will be at really interesting when they discuss the subject of iran, as well as trade. we've gotten so much from trump earlier in the press conference with egypt's president el-sisi. we have some very disappointing german economic news. just breaking, the phone business climate number came out at 94.3. the survey was for an expectation of 95.1 so a big miss there. a big miss on the expectations and on the current assessment at 97.3. across the board miss on the german people -- german ifo confidence numbers. an economy that is already -- has already been facing some headwinds certainly headwinds of forecastrisks of bad or outlook, that contin

. ♪ francine: the fed cuts rates for the first time since 2008.ident attacks on the fed chair after saying the cut was not big enough but credits the fed for an early start? brexit loomsf hard faces a mark carney tough new conference. welcome to "bloomberg surveillance," good morning from europe a

. ♪ francine: the intercontinental group is one of the biggest hotel companies in the world.ly 900,000 rooms in more than 100 countries with brands like holiday inn, crowne plaza and the intercontinental. the holiday inn in nashville hosted icons like bob dylan and prince, martin luther king jr. put the finishing touches on his "i have a dream" speech at the willard intercontinental in washington, d.c. today on "leaders with lacqua," we meet keith barr. chief executive of ihg. thank you for joining us on "leaders with lacqua."

i am in for francine lacqua. let's check in on your markets and see how things are doing in terms of yields. you can see the u.s. 30 year yield coming down further. 1.96%. yield at .98%.r i feel like i must be seeing something wrong because that would be insane. it is actually 1.47. i'm sorry, italy, that's what got me off track. i thought i was looking at u.s. treasury's, that would be nuts, dropping 50 basis points in minutes. that is the italian 10 year coming in below 1%. with stocks opening down and turning higher after we had some positive trade comments out of china. let's get first word news in new york. >> we begin in italy, where conte will get a mandate to form a new government after the former alliance collapsed in chaos. the new administration will include the five-star movement and the democratic party. those rivals have little in common other than a desire to avoid an election. country isa, the looking to extend maturities on over $100 billion of debt. they want to delay repayments to the imf after

francine: bond is a flash recession, treasury yields hit an all-time low as curves invert.nomy headed for a serious downturn? attacks jay powell and says the central bank is holding the u.s. back from big rewards. maersk sores, reassuring -- , reassuring investors despite an uncertain trade environment. good morning, everyone.

. ♪ francine: president trump announces a new 10% tariff on $300 billion of chinese goods.uropean stocks tumble. the next big thing to watch, the usa jobs report. and the prime minister's majority is cut to just one after the anti-brexit liberal democrats win a by election. welcome to "bloomberg: surveillance." good morning if you are watch

i am in for francine lacqua. let's check in on the markets and get a quick look at what is going on. yield see an all-new low on the u.s. 30 year bond. the long bond came down to one point -- 1.90%. it has bounced back, but still, that paper is weighing on the yield. you can see that across the curve. brent crude is rising. the nymex wti is as well. it has been a rally for oil as as u.s. stockpiles came up better than anticipated. and gold, coming off of its highs just a little bit but very little change to the bottom. 1541.64 as u.s. 10 year yields are negative, making gold more attractive. now let's get bloomberg first word news in new york. sees an opportunity to restart bta european union. german and french counterparts. officials tell as they appeared to relax len which on the need for the irish backstop. dropping the position -- language on the need for the irish backstop. these requests are related to financial information on donald trump and his family but whose returns are still a mystery. the disclosure

. ♪ francine: the white house holds off on a decision to let u.s. business with huawei. salvini calls for early elections but the prime minister says he is not going anywhere. rating, thee star ride-hailing giant posts the biggest losses on record. shares plunge in extended trading. ♪ welcome to "bloomberg surveillance." quite a lot going on in the markets.

. ♪ francine: global easing, new zealand and india rocked the market. , butuan weakens again officials the currency will not continue to fall. and profits at risk. commerzbank says it will be difficult to hit targets as trade tensions hit home. ♪ welcome to "bloomberg surveillance." these are your markets. we are seeing quite a lot of movement, all to do with trade. since we had those tensions wrap up, we

francine: a review chief -- conte calls it quits. btp rallies.ll signal deep cuts when he speaks at jackson hole. but will he suffer a misstep? heads to meet angela merkel, but can he make any progress on the new brexit deal? good morning, everyone. this is "bloomberg surveillance." this is what your markets are doing.

welcome to "bloomberg surveillance," i'm francine lacqua in london. these are your markets.18 hours. the u.s. called

. ♪ francine: remember the royal. long.rags the stoxx escalation.disrupt ports while carrie lam warns the city is on the edge of a dangerous situation. surprise exit. john flint comes to an abrupt end as the global industries.

francine: the one climbs after china -- the yuan climbs. 30 year treasury yields test record lows.re negative yields reach the u.s.. s'sdas is warning -- adida warning, shares drop on a disappointing results -- on disappointing results. ♪ good morning, everyone, and welcome to "bloomberg surveillance." these are your markets.

the search is being coordinated by francine.you for your messages which continue to pour in about british airways. belinda says, ba, you are taking the expletive. you cancel our flights but refused to tell me who i can speak to in order to rebook. instead i am told to go to the airport and wait for what i can get. matt says, it might be time for british airways to upgrade their it systems from a potato to something more reliable. some not very happy people around this morning. some not very happy people around this morning. the 17th series of strictly begins later this month. we don't yet know the whole lineup, but james cracknell is the latest celeb to confirm. we know who most of the celebs are, including the comedian chris ramsey, michelle visage from rupaul‘s drag race, former lioness alex scott, made in chelsea's jamie laing and former england goalkeeper david james. let's speak to someone who can tell us what it's like being on the show, dannyjohn—jules. good morning. thank you for having me. you are looking splendid for a

francine: in november, he and fellow activists were back in court.e in hong kong warned that more arrests may be coming. ned a massban march scheduled for saturday, a harder line stance against the pro-democracy movement. florida declaring a state of emergency for nearly 70 counties as hurricane dorian approaches. youran track the storm on bloomberg. expected to make landfall as a powerful category four storm. president trump says it could be "absolute monster." he compared it to hurricane andrew, which devastated south florida. argentina said it would delay payments of more than $100 billion of debts. while the delay could relieve short-term pressure, analysts say it raises the prospect of future defaults. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. david: thanks so much. i think that is the critical point. they've got a problem right now, but it's not clear that by doing what they are doing, it is going to fix it a

i'm matt miller, in for francine lacqua. get over to italy, where the anti-establishment five-star movement says it will not hold any more meetings with the centerleft democratic party unless the democrats agree that giuseppe conte remains on as prime minister. joining us now is our rome bureau chief. this is been a sticking point i think throughout the night of the democrats do have to come back and concede? the markets are still bidding looksonds and stock, it like markets think it is a done deal. probably not a done deal, but they can probably force the democrats hand to come out publicly and say they agree on the government. this has been a sticking point through the night. for now they say they won't hold anymore talks that were supposed therepen, but for now will be no talks until the democrats come out and officially support the prime minister. we will see how it goes, but as the bond market says, probably it will happen eventually. >> i was just speaking with an thereist who says that are risks if this coalition come