i am francine lacqua in london and tom keene is in new york.nd a lot of time trying to figure out what happened at the news conference, why the market is disappointed and what it means for the rally after what jay powell said and we will spend the time that is left in the next two hours talking about the bank of england and earnings. tom: earnings may be about your opening was dead on about the tensions with jay carney, fascinating to see. let's call it bloomberg: race to the bottom, we have great currency charts to show where we are. the lead stories renewed dollar strength today. francine: you are not wrong on that. i was speaking to jean boivin about whether we were in a currency war. let's get to the first word news. >> president trump and investors and blasting what they believe is a muddled message from jerome powell. the central bank cut rates for the first time since 2008 and he left open the possibility of further moves but said he did not expect an extended easing cycle. donald is hoping for a larger rate cut and tweeted, as usual pow

i'm francine lacqua in london.es to the chatter surrounding brexit with boris johnson trying to negotiate the backstop. scarlet: we look at yields around the world and it is amazing what fiscal stimulus can do for sensitive markets. in the u.s., we are looking at a fourth day higher for stocks. germany is considering opening up their purse strings. francine: the last time they did economyasing, it was 5% downward's movement. let's get to the first word news. >> boston fed president eric againsteps pushing back interest rates cuts, telling bloomberg, he is not convinced that global growth will hurt the u.s. economy. he says he wants to see evidence the u.s. is going into something that is more of a slow down. the to hong kong is where chief executive is pledging a new effort at creating dialogue with government critics after more than two months of protest. she plans to look at the cost of the protests and a police responded to them the movement -- responded to them. u.k., boris's bid to renegotiate brexit begins wi

francine lacqua in london. ttle bit of stability starting late last night u.s. time. francine: the story definitely is on the market, so we saw a lot of mark should -- market fluctuation and downside yesterday. when the u.s. said china was a currency manipulator they tried to shore up the yuan. monetary policy comes into play. we could see a reversal so keep and i on the markets. tom: also on communication from the white house. now, first word news. viviana: we begin with china's attempt to limit the yuan plunge after the u.s. labeled it a currency manipulator. it announced the sale of yuan dominated bonds -- denominated bonds in hong kong. seenrump administration is as a major escalation of the trade war. goldman sachs expects the fed to cut rates three times this year, citing rising trade tensions as well as the prospect of a hard brexit. they no longer expect a trade deal before the 2020 election. china making some of its comments yet on the hong kong protests, beijing urging hong kong citizens to stand up to

i am francine lacqua. these are your markets. the one to watch out for is remember the -- is remember the. we are seeing stoxx 600 down to 6%. euro-dollar 11133. we are getting euro area services for the month of july. that is pretty much what we are expecting. you can see that this move is also having an impact on s&p futures, down from 1.1%. a sick resources are the ones losing the most. -- basic resources are the ones losing the most. , we will have plenty more from your markets. let's get to the bloomberg first word news in new york city with viviana hurtado. viviana: china is asking its businesses to suspend imports of u.s. agricultural products. firm will wait to see how trade talks grass. this coming after trump escalated tensions last week. he proposed tariffs on another $300 billion of chinese goods. 30 are dead and many more wounded in the attacks that happened in ohio after two mass shootings in the u.s. this weekend hours apart. the shooter in up also had -- in el paso had anti-emigrant views. >> hate has no place in

tom keene in e-work, francine lacqua -- in new york, francine lacqua in london.an expected from the central banks of india and new zealand. is this race to the bottom going to continue and who is next? tom: this is out from the asian fx team at citigroup. in 15 yearseen this or 20, a research article on intervention by the treasury of the united states on the dollar. citigroup highlights japan, singapore, australia, and possibly south korea as being the intervention targets versus renminbi. that is an extraordinary note for an extraordinary week. always extraordinary, here is viviana hurtado. the china central bank is setting its daily currency reference rate at slightly stronger than seven yuan per dollar. during the trade dispute with the u.s., china's central bank wants to allow more flexibility. at the same time, they want to avoid depreciation and capital slice. india joining new zealand with figure than expected interest rate cuts, lowering its benchmark by an unconventional 35 basis points. india cutting rates four times this year. new zealand shocking mar

from london, francine lacqua. everything pushed aside by the drama we see in hong kong. be on the ground shortly. we will be getting updates throughout the day. significant they have canceled the rest of the flights for the rest of the day. if you are traveling from hong kong, call your airline before you show up at the airport. this feels like escalation. we saw that yesterday with some of the police response to the protesters. tom: hong kong authorities in the last hour speaking. the news flow continuing into the early evening in hong kong. let me do a data check. important to look at equities. futures a little worse earlier. now -12. curve flattening. we have an ebb here in the last 20 minutes. a vix at 19.39. there is the friday close. market dollars stronger this morning. francine? francine: i have a similar data check. i am looking at equities. they were gaining earlier on. they have lost a lot of momentum. futures are declining. i think a lot of it has to do with what is happening in hong kong. it has soured the mood. the unrest in hong kong weighing on investor s

i'm francine lacqua here in london.ck on what's moving your markets. >> sbm offshore to the upside come up more than 7%. this company deals with oil and gas services. they raised their 2019 outlook. the ceo says they are going through a time of significant growth. licht down more than 6.5%. this is allianz's biggest shareholder. it has decided to go against one of the private equity bids for that company. alianza set the price was a knock-down price and the company should have never accepted. tod's reported a first-half loss. it was yet another set of results that were poor and there is no buyers out there. let's check the boards. i want to show you something else i am watching. i am looking at brent. it is trading $57.41. that green we see up 2% this morning has to do with a few phone calls the kingdom of saudi arabia is making to other producers. they are looking at options to stem the weakness we have seen in prices. we still have brent trading under $60 per barrel. one clear and obvious solution would be of opec and

i am tom keene, francine lacqua in london. ary. talking about hundreds of thousands, even millions protesting on sunday in hong kong. francine: this has a huge implication. there was a great story in bloomberg businessweek, longer-term this is all about 2048. there is an interesting dynamic where it have been 50 years and the role of the u.k. will slowly fade. it is a longer-term piece about where hong kong goes next. there is quite a lot of market action, not like we saw yesterday. things are stabilizing a little bit. and the yield curve means the dynamics. tom: right now in new york city, our first word news. renita: a glitch at the london stock exchange delayed the opening for some of the biggest stocks. 250ftse 100 and ftse indexes were delayed. the outage comes amid rocky markets within the u.k.'s looming departure from the e.u. israel will allow u.s. representative rashida talib to visit the nation, a reversal from yesterday that barred entry to two members of u.s. congress from entering. this comes despite pressure from

i am francine lacqua.et's get straight to the bloomberg first word flash. viviana: concerns from tim cook about competitor samsung according to president donald trump. the chief of apple is worried that south korean company will get an edge because its products will not be subject to tariffs when they are imported to the u.s. on septembert, -- 1, apple products will be hit by tariffs. it is tough for apple to pay tariffs when they are competing with a very good company that is not. he said how good of a competitor? he said a very good competitor. paying tariffs because they are based in a different location. i thought he made a very compelling arguments so am thinking about it. --iana: tesla has a plan to the company is offering no contract packages as part of the relaunch. elon musk tweeting with a new lower pricing, it is like having a new money printer on your roof. it comes less than a month after tesla reported its third consecutive quarterly decline in solar installation. don't be some boost -- don't

i'm francine lacqua here in london. the bloomberg business flash in new york city. >> any new carbon tax should be e.u. wide, according to lufthansa's ceo. he said german airlines would be hard-pressed to shoulder more environmental levies unless the nation's partners follow suit. >> there is no room for toreases, but rather room see how money flows back into the industry to really reduce our impact on the environment. that's what we need, not more taxes. we need less impact on the environment. at this point, this tax is not serving that purpose. that's what we discussed today. >> staying with airlines, qantas is feeling the drag of weak demand and higher fuel c osts. they are reporting a pungent pretax profit and preparing for a drop in passenger numbers flying to hong kong. we have the flexibility of moving to slightly smaller aircraft. aircraft,y, the same same product but with less seats. we will do that over the next of months to take 7% capacity out in anticipation this will continue for a few months. -- from a st

i am francine lacqua. he y

tomkeene and london -- keene and francine lacqua. the 30 year bond negative in germany. eal. the amount of bonds and negative territory is something the banks are watching and the ecb is trying to tier it because it has an impact on the banks. tom: deutsche bank coming off a better than good week. here is viviana hurtado. viviana: donald trump addressing supporters at a campaign rally in cincinnati. he blamed "the far left's destructive agenda" for poverty theurban crime and accused democrats of prioritizing undocumented immigrants over american citizens. , mike pompeo is defending president trump's decision to impose more tariffs. pompeo said china has been taking advantage of trade with the united states for decade. >> at cannot be the case that a nation can use protectionism to protect its own goods and use predatory tactics to deny other economies the chance to grow. viviana: he added china can come back to the agreement that was initially on the table. south korea warning japan it will face repercussions over the from an to remove seoul list of trusted export destina

from our world headquarters in new york and queen victoria street in london, francine lacqua. ank down to new lows and deutsche bank below six euros per share. francine: hildebrand saying a lot of the business models are not adept and equipped to deal with negative rates. that conversation leads to the conversation about what madame lagarde can do. do negative interest rates work at all or is the next leg of options something that one's more fiscal monetary policy? tom: mr. hildebrand the former president of the swiss national bank. right now in new york city, here is renita young. renita: china is signaling it is ready to retaliate against new u.s. tariffs, calling planned u.s. tariffs on $300 billion of goods a violation of accords between their leaders. china will take they called necessary countermeasures. this comes hours after president issuelinked the hong kong with the trade war, and called xi jinping a great leader. the economyw say will grow 1% at most this year, down from previous forecasts of 2% to 3%. in the u.k., opposition party party -- opposition leader jeremy

these wereiling up, among the topics francine lacqua tackled on thursday in an exclusive interview withe chairman. ♪ >> 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. 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? >> there are reasons why the haven andseeking safe it's 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 revealing itself. leadist economic policies to bad economic outcomes and mark

welcome to "bloomberg surveillance," i'm francine lacqua in london. stocks euro 600, down. a big market move yesterday that started with concerns surrounding hong kong and that means yen found a good bed yesterday. argentinaocus was in after the selloff after the surprise primary where we thought it unlikely the candidate could make it. the second time of voting since october. u.s. 10 year yield that 1.63%. coming up, we talk with the chief executive of steinhoff international holdings. do not miss that interview after 4 p.m. london time. let's get to the first word news in new york city. viviana: senate leaders in italy failing to agree on the date for a confidence vote in the populace coalition, leaving the deputy premier happy to wait before consolidating power in rome. discussions in the upper chamber continue tonight. if there is a new election, the commanding lead means he will likely be the next prime minister. global anxiety showing up in the treasury market. yield on 30 year treasury bonds approaching all-time low as the 10 year yield also fell. that one point it w

francine lacqua in london, tom keene in new york.teresting bond yield movement. germany not great. that may spur a little bit of fiscal spending, not great is what i am talking about in the economy. then you see moves on the back of this, president trump delaying some of the tariffs. tom: yields come in with a vengeance on china off germany, as you mentioned. we are on the inversion watch. that is a historic moment back 12 years. francine: we will have to go back to that and give you all of the updates historically. let's get straight to first word news in new york city. here is viviana hurtado. viviana: china has stepped up its attack on antigovernment demonstrators in hong kong. beijing accusing them of acting like terrorists and swarming the city airport. today flight operations return to normal. authorities are restricting access to the terminals to prevent further protests. chinese officials still plan to come to washington next month for a face-to-face trade meeting. that is a sign that it is on track after negotiation aiders -

with that piling up, these were among the topics francine lacqua tackled on thursday in an exclusiveith blackrock's vice chairman, philipp hildebrand. philipp: the yield curve metals -- matters a great deal for banking no matter how you look at it. wealth management can be a way to diversify away from some of the risks of having a flat or inverted curve, but it is difficult. we are not going to see booming banks in an environment where we have the yield curve the way we have it 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. 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 wil

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

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

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

welcome to "bloomberg surveillance," i'm francine lacqua in london. stocks

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

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

i am francine lacqua in london.isk has raised its sales outlook for the year, posted by a next-generation diabetes drug. the biggest maker of insulin now says 2019 sales will grow up from itsnd 6%, own look previously of 5%. joining us is lars jorgensen, the chief executive of novo nordisk. thank you for joining us. been of all, you have developing drugs for diabetes and obesity. talk about diabetes in china. do you think you are competitive with some of your rivals? how much more can you do in china? we have a goode portfolio of products. in china we are getting these approved. these are products we have been competing with outside china for some time, so the strong momentum we see across all markets we now also see in china, and we believe that is sustainable for years to come. francine: you previously flag lower average prices -- flagged lower average prices. do you worry about that going forward? lars: it is correct that there is priced pressure in the insulin segment in the u.s. the category has declined in val

for matt miller, here francine lacqua this year. years since the ceo took the reins at uber. at that time -- in that time it has gone public and posted billions in lost us. in losses. -- emily chang spoke exclusively to the ceo of uber. he says he is happy with the company's evolution. all of theresolved governance conflicts that the company had. there were many legal issues that the company was involved with as well. we have softbank as a partner and we want softbank to be behind you. we have a great investor base. we have taken the company public. and the company revenue, gross bookings have grown 75% since i joined. we now have a path to profitability, i believe, so while we have had bumps in the road -- and every adventure has bumps in the road -- i like where we are and i especially like the position we are in now for the next few years. emily: despite the negative lyft anduber and lif rideshare companies have been transformational. successful and the next decade as in the last decade? >> i think so. what uber has done is bring