i am ramy inocencio. this is bloomberg.'s get more on what should be watching is trading gets underway in asia with bloomberg's global market editor, adam haigh. we have seen emerging markets rally this year. index up more than 20% this year. does the rally have legs? that is certainly the refrain your hearing from the fed, testing the valuation argument in equities. performed particularly well, up 25%. that is relative to the s&p 500 at 11% or 12%. have a look at the chart g #btv 9388. it shows you the extent of that rally. now that the argument is challenged by people being skeptical of the run-up, given in their view, it has not kept up with increases in prices. even if you track of the average ratio over 30 years, you find it is one standard deviation below what it was over that period. in the mind of the bulls that offers value and emerging-market equities are still cheap for them. it -- we continue to see inflows into equity funds. last week, 21 consecutive weeks of inflows continuing to hold up. looks like we just lo

i'm ramy inocencio. this is bloomberg.obs rate has kept unemployment at a one year low and supports forecasts for gdp coming in. 2% in the first quarter. is that enough to boost inflation? that is the million-dollar question. kathleen hays is here with a look. we did not see such a big backup in the treasury yields. kathleen: we didn't, and i think that is because even though this looks like a healthier of and jobs growth is supporting the idea that growth will keep going, maybe one key part is wages and inflation. we will talk about some of the numbers that point to strength, because payrolls rose in july. let's bring up the chart, because it will help us see what is going on. see payrollscan rose. this is the three-month moving average, and it is up to $186,000. and it got better. low --yment, the 16 year let's get everyone straightened out. we have a 16 year low. that is all very good, however enough to makeng the kind of growth that donald trump would like to see. our intelligence team knows it is signaling this level

let's goes ramy inocencio.mments from two officials make it more likely that the fed will keep on hold next month and only edge toward an unwanted of the balance sheet. james woolard says any movement will be slow in order to cause a minimum disruption of the market. >> we were telling a story and inflation was going to gradually return to target. on this measure, you can see the gradual return to target seems to be going according to plan until we got to this year. this year, this number has fallen way off. at least on the scale that you have here. a commonwealth bank has scrapped the bonuses for ceos employees. the board says the overall reputation was about the bank. -- they wereious suspicious deposits and atm. russia and kuwait have begun oil talks to figure out why some producers are falling behind on their commitment to produce output. they are meeting separately with iraq, the uae and malaysia as a representative from saudi arabia attending. last month, they said they would turn up heat on producers or

let's get to the first word news with remy inocencio.dopted some of the linguistic style of north korea, saying the country will face fire and fury like the country has never seen if it continues the united states -- a continues to threaten the united states. pyongyang says it has made nuclear warheads small enough to fit on nuclear warheads. north korea says it is considering an attack on the u.s. military base in long. pres. trump: north korea must not make any more threats to the united states. they will be met with fire and fury like the world has never seen. he has been very threatening, beyond a normal state. ramy: south africa's president jacob zuma survived a motion of no-confidence in the currency weakened by as much as 1.5%. critics say the ruler missed a stance to take a stand against corruption. more than two dozen lawmakers did vote against the president, but he did survive 198-177. his tenure has been rife with scandals and missteps that have weighed on investor confidence and set the economy into recession. meantime, venez

i am ramy inocencio. this is bloomberg.etty: the big story in the u.s. that hit the markets earlier was this story about special counsel robert mueller using a washington grand jury as he investigates alleged russian interference in the presidential election last year. they can issue subpoenas for documents and witnesses until prosecutors determine whether to bring criminal charges. nathan hager has been tracking these developments in washington. for those who do not know about the process, how significant is it that he wants to put this grand jury in place? nathan: if nothing else, it shows the investigation the special counsel has been conducting for weeks is potentially growing in intensity. as you say, the special counsel grand jury does have the power to issue subpoenas, the call witnesses under oath, and potentially bring indictments if there is evidence of a crime that can be brought forward. this is ationed, grand jury forming in bc -- washington, d.c. this is on top of those investigating michael flynn's allegation

---"corina hierro" nos explica take pkg ;1 ;3 ;10 ;17 ;30 pkg (sot inocencio zagal) "que si no limpiabaesidente- anónima) "le dije se me metió un carro, si no hubiera sido por unas piedras se me mete más, y me dijo 'no pues ese no es mi problema' (sot anónima) "me sacaron de mi traila y nomas me dieron 15 días para buscar otro lugar donde vivir y no sabía a donde irme y no me dieron motivo porque me sacaron" (vo) estas son solo algunas de las quejas que los alquilinos nos comentaron y donde aseguran son victimas del mal trato por parte de los dueÑos de la propietadad llamada lamplighter manufactured home community (sot "maria") "nos mandan a corte, nos cobran por carros extra, tenemos que pintar la traila, tenemos que ponerle el faldón, las mascotas no pueden estar afuera nomas adentro, nos cobran por todo. y somos muchos los que no estamos de acuerdo con las reglas, que algunos de nosotros no hemos ni firmado" (vo) la compañía dueña de esta propiedad esta basada en provo, en el estado de utah. con una simple búsqueda del nombre kingsley management corp, empresa administradora de la pro

ramy inocencio has three bloomberg chart you need to know.amy: first off, i want to head into the bloomberg terminal. this is the trade flow function between china as well as the united rates. you can see on the right-hand side of your screen, the united states is at nearly $600 billion. of this has been rising over the , ever since 1998, when it took the title from hong kong here. this is what is at stake when we're looking ahead and talking wart this potential trade with regards to china and the united states if something should happen from this china ip probe. going into the bloomberg terminal, g #btv 109, this has to do with aluminum. you are probably wondering why are we talking about aluminum? commerce, the department said they would hire terriffeliminary on aluminum coming out of china. they are down in the past month or so. the green represents u.s. imports. we are starting to see how this might go up or down. looking ahead to october 23, the the car'srom -- department will give their opinion on this. this is g #-- actually, this is t

key, because they determine how consumers are spending, while likely we will hear more from ramy inocencio hour. it has been tempered by local auto demand. housing sharks, business stories. all of that will provide some indication of house gdp -- how gdp will be stronger in the second half than the first half. we talk about big companies, these are major chinese retailers. alibaba and tencent, a lot of investor focus here. let's go into some of the issues that are in the forefront. first of all be traded much higher from facebook. we talk about bank stocks, facebook, amazon, these have done so much better in terms of the expectations, the expectations 30%, profit gain for alibaba alone. justifyhey will have to their high stock prices. thank you so much, su keenan with a look at wall street. let's stay with the talks she mentioned. the head of asia, telecom and internet research. it is great if you are an investor in the stoxx or made quite a bit of money. or made quite a bit of money. do you think these valuations are too rich? >> it is reasonable at the current level especially for the bi

ramy inocencio has a different perspective.e has three charts you need to know today about this conflict. ramy: i want to ask whether you're in the market for risk if you are losing your appetite? if you are not in that market, taking a look at g #btv 5232, you are not alone. this is the risk on, risk off index, a bloomberg exclusive index. come to the right. we are at the marker 35.46. this is its lowest in a month and a half. because of the war of words with u.s. and north korea. what is involved in this index? it involves six stock indices and five sovereign bonds, two currency indicators and two commodities. most are correlated positively to risk and risk appetite. if there is less risk appetite, these will be falling. negative correlation means there is interest in safe havens. we have not seen a moving. let's go into g #btv 7722. it says investors are flocking to safe havens. in the past few days we have seen interest in gold. it was in the yen, both traditional safe havens rise. over the course of the last month, gold ha

ramy inocencio is at the wall with the chart. ramy: this is the great wall of bloomberg, i suppose. g #btv 8765. this is the drumbeat of debt. glencoreentral to both and noble. noble as a percentage of wage and debt is 84%. just for the first half of this year, the latest numbers show it has added debt on the order of nearly $1 billion. not going away investors wanted to be. looking at glencore, net is that 36%.- at they chopped their debt by $1.6 billion. in december of 2014 the share price of noble has tanked by 96%. but since the end of 2015 for glencore, it has shot up by two under 50%. that is debt. i want to look at default risk. k function.r the green line is share price pence inthe 339 london. in comparison, the default for noble at 12.4%. this is a distress category. the share price over the past year or so has actually been $.35, downw at about from $2.50 in spring earlier this year. you can see what is happening in terms of debt and default, both going in opposite ways, even though they are in the same sphere. one as a trader will be hit because they had to take out a str

ramy inocencio has three charts you need to know. 3087.want to go to g #btv we want to look at bloomberg'sor the forecast. this is a blue line and we are expecting it to fall, only 120 square meters sold. the white line is the actual number for the prior month of june. we will see what happens. i would have to say that seasonally, this may not look as bad as it might be. every single july 3, 2014 has been higher than the july prior. upm 2016, housing sales are i about 20%. they are up 40% since 2015. let's see what happens when them chart drops. the second chart you need to know is g #btv 183. strength,tled uneven when it comes to first second and third tier cities in china. the white line is first tier cities that have contracted. with the restrictions beijing has put across all cities, they are not ask -- affecting all cities. second-tier cities are in blue and third tier in yellow, have seen the most growth. we want to see if those trends continue with the numbers drop in less than two hours' time. 158, when you talk about chinese construction, you have to talk about copper. copper is o

let's get to remy inocencio with a look at the brics and how it has fared. >> on the whole, a positiveture. let's look at it from a investors point of view. the bloomberg terminal. on a normalized basis of 21, if you in -- if you invested in the , it would have performed twice as well as the world index. this is clearly a positive. looking at gdp growth next, it is a mixed picture. 8568.is g #btv . that is at 6.9%. it is at the lowest in 25 years. but still higher than beijing's 6.5% target. notable because we are headed to the fall party congress. in purple, we only have data going back to 2012. . it is fallen from 7% to 6.1%. there is the demonetization policy. we are expecting a rba rate cut. in blue, russia down because of oil recently. bricfor brazil is the only nation with gdp contracting a negative percent. blame, because exports are a factor. bilateral trade has fallen by 25 percentage points, since 2013. we have to talk about inflation. inflation across the world is either stagnant or slowing. that is the case for them bric nations. for china and india in the purple and white,

ramy inocencio has more for us. on those sanctions in president trump expressing big reservations on this. ramy: huge reservations. tied, -- his hands were and are now tied with regards to any russian sanctions. he cannot pull anything back because of this document he signed. he questioned the constitutionality of this. hethe other side of things, said he signed it for national unity. you are seeing a part of his statement saying he favors tough , by a bunch of other aggressors including iran, north korea, pressure. but he says the legislation is flawed. we are talking about chipping away at his own executive authority and possibly, some harm to u.s. companies and businesses. this other quotes saying, while he recognizes the negatives, he says he is not going to let anything happen with the democratic process. he says he will address this with russian subversion and destabilization. looking at the russian side, vladimir putin did not weigh in, but is prime minister -- his prime minister did. saying, hopes of ties th