juliette saly in singapore.president trump has threatened to pull out of the wto if it does not treat the united states better. he spoke exclusively with bloomberg's editor in chief john mickelthwait, saying that nafta was the second worst trade deal ever made apart from the wto. president trump: i would say the wto was the single worst trade deal ever made, and if they do not shape up, i would withdraw from the wto. anna: and in another sign that trade disputes between the united states and their allies are not soaring, he dismissed the eu's offered to scrap tariffs on auto imports. president trump: not good enough, nope. they do a lot more auto business then we will ever do. first of all, it is not just tariffs, there are barriers. downwill take the barriers and charges no tax, but it is not good enough because they will always sell more cars. their cars, their consumer habits are buying their cars, not our cars. anna: donald trump hit out again at china, saying the world's second-largest economy would not out

let's get to juliette saly in singapore with a business flash. e: forward has -- ford has seen its credit rating adding to problems including a restructuring plans that could take years to complete. it was downgraded with a negative outlook citing the erosion of the business position and the turnaround plan that could cost more than $10 billion in the next three to five years. samsonite international said the trade were between u.s. and china is [indiscernible] sentiment. that will play into slower sales group -- growth and another sign of the fallout from the tit-for-tat tariffs. >> we will be into the high single digit range for china. i do see consumers feeling some of the impact to the trade war which is hot in the news. i think that has some impact to consumer confidence and sentiment. juliette: credit suisse has second thoughts about doing business with the owner of the national inquire which is at the center of a scandal involving hush money payments to women who had affairs with donald trump in 2016. the swiss bank was planning to help ame

nna, manus anna: thank you, juliette saly. japan may tolerate higher yields on the long-term bonds than the 0.2% given by the governor. that is the latest summary of opinions. that he tilts from last week's policy meeting show that one member wanted freedom for yields to move up and down by around 25 basis eyes on either side of the target. the summary gives more ammunition to expectations that the boj could further widen its range. on this fromof our next guest joining us right now. did it have lasting implications, the tweak we heard from the boj last week? did it have implications for either the japanese or the other markets? >> i think it marked a significant move in some respects by the boj, in terms of that it has introduced a little intovolatility, not just the jgb market, but also into the core rates market. we talk about this band about zero, but it hasn't been a bound, it has really been the ceiling. 10 year yields have actually been trading sort of above the zero point. i think it out, they will be trading in the so

news get up bloomberg update with juliette saly. ette: in the u.s., donald trump, the president has a great deal of frustration with turkeys erdogan. they called again for turkey to release an american pastor. than 30%has lost more of its value in the last two weeks. washington imposed sanctions and raised tariffs. u.k. police are searching three houses as part of the counterterrorism probe. this is after an attack on parliament yesterday. arrested-old man was by officers after crashing into early-morning commuters and striking barriers outside the home of the british government. theresa may called on the u.k. to come together and carry on as normal, but remain vigilant. china's regulators have frozen and approval of licenses amid a government shakeup. the restructuring of power among departments and regulators are concerned about violence in gambling. the sector has been rattled as gaining companies from online giant from tencent to small developers await approval. respondstries did not to our request for comments. italy, 35 people

juliette saly has the latest from singapore. and i the italian government is considering a public takeover of the highway concession now held by atlantia's. bloomberg understands that the role for the company which manages over 400 20 billion euros in assets is one potential option being weighed by the government. another option is to revoke the confession following the collapse of the bridge in general what which killed 43 people last week, and hand the contractor the governments road operator. glaxosmithkline has requested by -- bloomberg has learned that the sale by the u.k. pharmaceutical giant has attracted interest from potential bidders including cap sicko and others. representatives for glaxosmithkline refused to comment. facebook has for the first time named a country other than russia, that has been using fake accounts to manipulate local politics. very social network said it removed 622 pages, groups and accounts for in behavior that originated from iran, targeting people in the u.s., middle east and latin america. it

anna: thank you, juliette saly in singapore.rate story that will matter to you if you are traveling by ryanair. with majorappling strikes for the first time in its 30 year history. it matters if you are an investor, because obstruction is set to reach a new peak. or hundred flights lost across five nations as pilots ramp up a wrest better- contracts from the company. how did we get here? is basically the unions trying to show they also have a voice here. about a year ago, there were no unions at ryanair and now, this is what they have to contend with. management was always forceful in their opposition to union voices, but this is something to deal with now. the big thrust of the strike is about 250 with flights canceled here today alone. that is almost 40,000 people affected and will have a substantial hit on the operations in germany. they warned about this a couple days ago, but germany is a key market for ryanair. they are expanded here and others are expanding here. they need to be careful this doesn't become an issue of peo

juliette saly is standing by.de talks are scheduled later this month, the chinese delegation will be with an american group. it will mark the first official exchanges since earlier negotiations broke down two months ago. haschinese communist party issued a rare direct criticism of donald trump's agenda saying his america first policies were hurting his own people. the white house says it needs tariffs on turkish goods to stay in place. erdogan [inaudible] the white house said u.s. tariffs will remain. is investing $50 billion in his country as well as reaching out to germany's angela merkel for support. in the u.s., donald has revoked a former cia director, john brennan since security clearance conduct him of erratic and behavior. he was a 25 year veteran of the intelligence agency before leaving it under president barack obama -- leading it and has been an outspoken critic of trump. >> i have decided to revoke the clearance of john brennan, former director of the central intelligence agency. his recent conduct is

anna: juliette saly in singapore.an much you wo representatives have discussed ahead of the european union elections in may. both leaders have talked about a political alliance at an e.u. level which would exclude the left wing parties and bring to the for the identities our government represents. a minister has said the country is not planning to breach the european union's budget deficit limits in an apparent contrast to remarks made by his deputy, his own deputy prime minister, so joining us from elon is our southern europe editor, jerrold colton. good to see you this morning. why are they meeting now? is he building the rhetoric in terms of migration? says hefirst of all, he is his hero. he is definitely the man of the moment for the anti-migrant movement in europe. it possible he wants to be around him at the time where he is getting most of the press. he may want some allies in any future battles in europe, particularly over budgetary concerns. to you.od morning how realistic is the plan that these two men have

juliette saly is in singapore. juliette: u.s. president donald trump says he expected jerome learned- bloomberg has he said to wealthy republican donors on friday he has raised interest rates, five times. including twice this year under powell. the president nominated the fed chair. meanwhile, president trump said he will not make concessions to turkey until he secures the freedom of the evangelical pastor. he also repeated his claim that china and europe manipulate their currencies. goods, beijing lowers the level of the yuan. problems from dodgy data are in the past according to the man in charge of government statistics. exclusive interview, he says the country's growth will exceed its annual target by 6.5%. 6.8% economica's growth in the first half of this year, domestic consumption contributed 78 .5%, while domestic investment accounted for 31%. exports went down. andking about growth achieving a target of 6.5%, china is not that affected by the fall in exports. australia's prime minister malcolm turnbull has survived a lead

juliette saly in singapore. juliette: u.s. negotiations have wrapped up with no major progress, setting the stage for further escalation of the trade war. conclusion of the talks came hours after beijing and washington rolled out their latest round of tit-for-tat tariffs. bloomberg understands that no further meetings have been scheduled, while chinese officials raised the possibility that negotiations could now be on hold until after november's midterm elections in the united rates. -- states. china has removed limits on foreign holdings in domestic banks and asset management companies. under the new rules, overseas financial institutions will be treated the same as local companies. foreign fakes were previously capped at 20% for a single institution and 25% for a group of foreign investors. the move marks the latest step towards opening its $48 trillion financial sector. two key republican senators have signaled to donald trump that he could replace session general just after the midterm elections in november. lindsey graham

let's go to bloomberg first word news update with juliette saly. te: the trump administration will propose more than doubling its planned tariffs on chinese imports. the president had threatened an additional $200 billion in goods with levees at 10%, according to a bloomberg source. that may be raised to 25% in the coming days. the u.s. imposed when he 5% on $30 billion of chinese tariffs in early july. the review period on another $16 billion and today. theresa may will fly to meet the french president at his holiday retreat to discuss brexit on friday. may is currently on holiday in italy with her husband, but will leave a day early as planned to travel to the south of france for discussions on britain's withdrawal from the european union. the u.k. is engaged in an intense about of diplomacy as they attempt to persuade other eu governments. in mexico, at least 85 people have been injured after a plane crashed on takeoff during a heavy hailstorm in the north of the country. the aeromexico plane crashed in durango with 97 passengers and four crew me

let's get a bloomberg first word update with juliette saly. juliette: the u.s.e poised to resolve their differences as soon as today. significant breakthroughs between the two countries came in the past several days on the issues of cars and energy. it creates an opening for canada to rejoin talks, covering $1.2 trillion in trade. china's central bank has strengthened the yuan's reference rate. that's as the people's bank of china limited declines in the currency as the fed raises rates. it's the 13th day in a row the reference rate has been stronger than expected, the longest run since boomer started publishing and fixing forecast in august of last year. north korea's main newspaper has accused the u.s. of staging military drills to prepare an invasion, while at the same time pursuing dialogue with a "smile on its face." they allegedly american troop movements in the region and said they threatened to derail the dialogue between the two countries. the pentagon call the accusation fetched." this comes after donald trump ordered mike pompeo to cancel a trip to py

anna: juliette saly in singapore.dministration is ramping up efforts to defend tariffs on chinese products, portraying the chinese economy is weak. this comes as chinese foreign-exchange reserves are due later today. the central bank continue to refrain from selling currency to curb at the klein in the yuan. -- curb a decline in the you .ant -- yuan are you expecting the pboc will spend vast amounts to support the currency, or not yet? >> know, partly because there are multiple interest mints -- instruments and policies they can use and not rely on outright intervention. the key is to understand their goal. is therel to our minds going to manage and control the volatility of the currency rather than try and impose an artificial level. that is why is less of a strain on the actual reserves. they are not going to try to set a line in the stand. -- sand.nt ltd. -- sand. manus: the reverberations in the commodity markets, they are felt in the emerging markets, from the fed in from trade wars. one year low on commodities.

juliette saly joining us out of singapore.he world's biggest miner says the increasing protectionism has hurt economic growth. for now, andrew mackenzie, ceo of bhp billiton, does not see slowdown for his company, especially in china. >> we are not seeing any slowdown in china. perhaps a little bit in copper. other than that everything is going well. obviously the concerns we have moving forward is if protectionism does take hold, it will have a dampening effect on the global economy. that ultimately will affect bhp. we do expect china will mitigate some of the impacts it faces. we do not just sell to china. it will do more to stimulate domestic demand. it is going to work harder to actually encourage exporters. from what i learned talking to trade ministers around the world , there's a lot of countries in the world that want to trade more with each other. the u.s. wants to trade less with them. china will absolutely walk into that and seek exports with other people. we do not think the impact on china, even as these issues be

matt: juliette saly in singapore.et to report earnings for the first time as a public company today. at its ipo, the company raised 5.4 billion u.s. dollars. shed light onll its international expansion plan and evolution from hardware maker to online services provider. joining us from hong kong is our asia tech editor, edwin chan. what does xiaomi have to prove with these results? dwin: they will need to show a strong set of numbers out of the gate and i think the consensus is they are going to do that. we have seen something like 50% growth in shipments in the second quarter. i mean, globally that is. in thell come through top line. on the bottom line, investors for now aren't so worried, partly because the billionaire chairman has actually promised thin. margins wafer that is to support its business model. in short, we will see a fairly strong set of numbers. arises, it is what is coming down the plight in the coming years and quarters. edwin, we have xiaomi today and baba tomorrow. hasou look at the hit that been t

juliette saly in singapore. juliette: thank you. turkey may be on the path towards a 300 basis point as banksrate increase have been cut off from borrowing at the benchmark 17.75% repo the and forth to turn to overnight lending rate currently at 19.25%. it is trying to counter the lira's slump without formally hiking. cutey's credit rating was further into junk by both s&p global ratings and moody's. venezuela has taken drastic measures to shore up its economy, devaluing it by 95%. the official rate will leap from 285,000 to the dollar to 6 million. the government will try to offset the shock by raising the minimum wage three point 5000% -- 3500%. italy will press ahead with plans to revoke the highway concession despite its parent company's offer of 500 million euros in initial eight after the deadly jamila breach collapse. it mustty premier said open its wallet, rebuild everything, and compensate everyone for the disaster. donald trump's lawyer has said "truth is not truth" when discussing why having the president interviewed by r

juliette saly in singapore. let's talk tech.n a moment, the latest from hong kong on tencent shareholders' $150 billion wiped out but first, let's bring you our exclusive with the ceo of logitech. francisco, hesan weighed in on what the impact of the trade war will be on his business. everybody has manufacturing and shipping from china into the u.s. is working. the first round of tariffs, if there is a second or third, we don't know yet but the first round is out there and we have had to adjust to that. see if andwaiting to when the second round will come and understand the implications in the meantime so we are prepared to act. having to think differently about investment and business decisions because of the uncertainty of trade policy in the u.s.? it isn: right now, uncertain where this is going. i wouldn't say it has directly affected our investment decisions, but we will keep an eye on it and have to adjust and economical regulatory environment, and we well. -- will. >> looking at the china market, it is still a growth engi

juliette saly in singapore.tte: china may temporarily halt purchases of -- of natural gas through the winter to avoid potential tariffs amid the trade can't -- trade conflicts with america. would get cargo from other come -- countries and force shipments to avoid paying additional tariffs. petrochina could not immediately comment. is. president donald trump "truly a racist and a con when it comes to diversity. that is according to former white house aide omaroassa. she wrote a tell all book about the first year of trump's administration and said she wrote a -- has a secret tape of her firing. the comments drew him or puke the white house as administration moves aggressively to counterclaims it made in the book. spacecraftunched a that aims to fly closer to the sun than any mission in history. the solar probe lifted off from cape canaveral at the start of a mission to touch the edge of the sun. inwill reach solar orbit november and make 24 close approaches to the sun over the next seven years. president ronald tr

matt: thank you, juliette saly in singapore.apag-lloyd has reported first-half revenue of five point 42 billion euros, increasing fuel costs and a slower than expected recovery of freight rates have affected the numbers. joining us on the phone from hamburg is the company's ceo rolf habben jansen. can you walk us through your earnings? what do the results mean for you? rolf: for us, the results are as we expected. if you look at the first half of the year, we have seen healthy volume growth. i think that part of the business is pretty stable and as he pointed out, we have seen a significant increase in cost in various categories, which .ertainly pushed earnings down also because the expected recovery of freight rates is something we see today, but came a little later than originally anticipated. you think as far as an outlook going forward? do you have a handle on these issues now? are any of the factors you started for your loss better or worse? rolf: if you look at what we see there isthink stabilization. we also saw charter r

in the meantime, let's get a bloomberg first word news update with juliette saly. ette: the u.s. treasury secretary has said washington is ready to hit turkey with more sanctions of president erdogan refuses the quick release of an american pastor. his comments have escalated the diplomatic --. the lira and japanese yen rallied. >> secretary pompeo and myself on the release of the pastor, we have put sanctions on several of their cabinet members. working with you, we have more that we are planning to do that we will release quickly. juliette: donald trump has prodded china to offer more at the bargaining table, as the countries prepare for the first major negotiation in more than two months. that is as the world two biggest economies step up efforts to avoid an all-out trade war. president trump: china very much wants to talk. they have not been able to give us a deal that is acceptable. we will not do any deal until we get one that is fair to our country. juliette: australia's central bank chief has said interest rates are likely to remain at a record low for a whi

let's get a first word update with juliette saly. juliette: the u.k. and european union are said to have dropped their october deadline for a bread to deal. while both sides publicly say they want an agreement wrapped up in the next seven weeks, bloomberg understands behind the scene, senior officials admit it is unlikely. sources tell us they aim to define the terms of the divorce by november the latest. anald trump has issued warning to social media companies after he accused google of rigging search results to often negative news about him. his reelection campaign texted his tweets to supporters, part of a fundraising push that says "the fake news machine is out of control." commented after fox news said the site favored liberal outlets. he offered no substantiation. >> they are treading on troubled territory. it is not fair to large portions of the population. juliette: the u.s. and mexico will commit to maintain transparency over how they manage their currencies as part of their trade deal. that comes after donald trump announced monday he plans t

let us get the bloomberg business flash with juliette saly. liette: monsanto which is now part of germany's bayer has been the firstamages in trial over claims that its roundup weed killer causes cancer. johnson, a former school groundskeeper who is dying from non-hodgkin's lymphoma won his case in a san francisco court. it will serve as a template to litigating thousands of other claims over the herbicide. monsanto will appeal. president donald trump has again criticizewitter to the company he once held as a true american icon. harley davidson -- he may boycott the company if it moves production abroad. he tweeted that many harley davidson owners will boycott the company if it moves overseas. great, many-- harley competitors are coming to the u.s.. wells fargo investors who are learning to live with an unprecedented penalty the federal reserve imposed for bad behavior will have to dust will have its patients tested again. the bank disclosed that it faces a u.s. inquiry into its purchase of low income housing credit. has reportedoor that the ju

let's get a first word news update with juliette saly. juliette: u.s.e secretary william -- wilbur ross signaled more pain ahead unless china changes its economic system. the administration will create a situation where it is harder for the people's republic to continue "bad practices" than it would be to reform. beijing has repeatedly pledged to respond in kind while the foreign minister said tariffs also hurt american companies. puthe u.s. is trying to pressure on china, but we don't think such an approach will work. china is ready to talk to anyone who is ready to talk to us, including the u.s. has tos kind of dialogue take place on the basis of mutual respect and equality. theresa may meets french president emmanuel macron today as part of a diplomatic drive to win european leaders over to her brexit vision. with 11 weeks until a divorce is signed, she needs to chart a path to a deal. the bank of england governor discussed brexit with bloomberg after raising interest rates for only the second time since the 2008 financial crisis. is thatmportant thi

let's get a first word news update with juliette saly. juliette: donald trump has rejected the european union's removal ofrap tariffs on cars. his comments came hours after trade-- the committee -- commissioner told european parliament lawmakers the eu would be willing to bring down even our car tariffs 20 come all tariffs to zero if the u.s. does the same. >> nope. because they do a lot more auto business than we will ever do. not justall, it is terrorists. they have barriers to our cars. a will take down the barriers and charge us no tax but it is not good enough because they will always sell more cars. habits,bits, consumer or to buy their cars and not our cars. is currencygentine crisis has deepened as an emergency interest rate increased to 60% failed to stop investors from pulling money out of the country. the peso extended losses after the bank raised its measure to a global high. the hike, the second this month, was the latest attempt by policymakers to defend a currency that has lost more than half its value this year. indonesia's

i'm david ingles. >> i'm juliette saly.e euro and emerging-market currencies. they continue to turmoil is sparking wider concern and potential market contagion. let's bring in the market strategist in the singapore studio. this is a real concern, the contagion effect. i have this chart in our library showing the appreciation and the lira over a four-year regression, now over two standard deviations weaker and em currencies falling the most since the u.s. election. at what point do we really start to panic and at what point do we see central banks step in? is the decline taking the market by surprise. the market is reacting to the worst-case scenario. there is some sense of the market that this is a decline the banks are exposed or at least have the ability -- nevertheless what we are seeing is lira declining. that is spending a lot of this concern for the market. followingging markets but not with the south african rand, that has seen quite a bit of turmoil and i think the markets -- they will help stem some of this decline

for that, singapore and juliette saly.uliette: elon musk has hired morgan stanley to assist him in his potential bid to take tesla private. bloomberg understands the investment bank is advising elon musk, not the board or committee to evaluate and eventual private proposal. stanley without explanation -- meanwhile, a fire at tesla's factory in fremont california was extinguished with no injuries. citigroup predicts its asian equities business will post its best results since the financial crisis, which could help the global firm sustained flagging the mentum -- momentum. bloomberguities told that revenue increased 33% in the first half of 2018 compared with the previous year and is on track for the biggest annual growth in a decade. inis betting investments technology made during rebuilding and recent senior hires at the unit will provide a boost as markets worldwide get more challenging. twitter has won a battle with a court ruling that upheld its decision to delete the accounts of a self-proclaimed white advocate. faced

juliette saly standing by with the business flash. good day. ette: johnson & johnson's blood thinning drug did not present -- prevent clotting in high risk patients. a setback for one of the cup in his best-selling drugs. patients took part in the trial. salesreported millions in and listed the drugs as one of its key growth products in it's annual report. ismodity trader noble suspended in singapore ahead of today's crucial the on a rescue plan which would strip shareholders of control. the proposal would hand power to creditors while diluting shareholder influence. noble has lost billions in value amid ballooning debts and questions about its accounting practice from iceberg research. didi's ride-hailing giant is drawing criticism from state media for its safety practices after a second female customer was allegedly killed by a driver. has halted service to reassess its business model and remove senior executives. a driver suspected of killing a passenger has been detained. that is your bloomberg business flash. anna: thank you. sinopec has ra

here's juliette saly. is sending their minister to the u.s. for trade talks, they will meet with an american group led by the under secretary of the department of the treasury. it will mark the first official exchanges since earlier negotiations broke down two months ago. the chinese communist party's top newspaper has issued a rare direct criticism of donald trump's agenda saying his america first policies are hurting his own people. needs -- house says it needs tariffs to stay in place. a sign the conflict is far from over, the white house said u.s. tariffs will remain therdless of whether american pastor is detained are freed. erdogan is reaching out to angela merkel. meeting to review a financial support program designed to help the country are parrots finances and stay of off -- stave off evaluation. withinance ministers met their bahraini counterparts in the island kingdom. they said their countries were committed to fiscal stability and economic growth. elise pie minister has said he will start the procedure to revoke the license in the

let's get the bloomberg business flash from juliette saly in singapore. ette: societe generale has said second-quarter net income -- net income rose from year earlier. the investment bank is showing signs of emerging from the doldrums. income from financing deals unexpectedly climbed and trading topped estimates. it was a challenging environment in europe. >> we see a relatively similar trend, something pretty dynamic in the u.s. across the board. in europe, something a little bit better. a contrast environment still. tesla -- tesla with plans to find a new plant in shanghai, his first outside the u.s. at the same time the company burned through less cash in the second quarter than wall street feared, sending shares higher in extended trading. ceo elon musk apologized for his outburst our previous call with analysts. great so like to apologize for -- there is no excuse for bad manners. there were reasons for it, and .'ve got no sleep [indiscernible] ferrari shares plunge the most in two years in late trade yesterday after the new ceo call the profit target

let's get a first word news update with juliette saly. juliette: u.s. commerce secretary wilbur ross signaled more pain ahead unless china changes its economic system. he told fox news that the administration will create a situation where it is harder for the people's republic to continue what he called "bad practices" than it would be to reform. beijing has repeatedly pledged to respond in kind while the -- the foreign minister said tariffs also hurt american companies. u.k. prime minister theresa may meets french president emmanuel macron today as part of a diplomatic drive to win european leaders over to her brexit vision. with just 11 weeks until a divorce accord is meant to be signed, may needs to chart a path to a deal. carney discussed brexit with bloomberg after raising interest rates for only the second time since the 2008 financial crisis. mark: the important thing is that this is the right decision for the economy given the track that it is on. obviously, there is a wide range of brexit outcomes possible. we all hope by the end of the year, w

here's juliette saly. liette: the minutes of the latest fed meeting show the discussion about how high to lift its target interest rate is intensifying as policymakers prepare to raise borrowing costs next month. the chairman has been attacked from the white house with predecessor trump criticizing rate hikes. we will bring you our interview with kansas city fed resident esther joy -- george. donald trump has denied using campaign funds as hush money to alleged past affairs. prosecutors say some campaign officials were aware of the payment. his statement contradicts a guilty plea by michael cohen, his long-term personal attorney and fixer who said the president directed him to make the payments and they violated campaign-finance laws. >> later on, but you have to understand what he did and they were not taken out of campaign-finance, that is the big thing, did they come out of the campaign? they did not, they came from me. and i tweeted about it. juliette: a resumption of u.s.-china chain -- trade talks. of

matt: thanks ray much, juliette saly in singapore. german industrial services provider has provided a quarterly net profit and eat the streets expectations with those numbers. let's get straight to the ceo johnny us from the phone from mannheim in germany. the chief executive. talk me through your returned to profit and your outlook for building on that in the future. and goodank you morning. orders up 20%, revenue up 10%, gna is down absolute and as a percentage and profits are up. showsk the top line momentum is established and we are on the way to delivering on our 2020 strategy. guy: let me ask you about a big news story in financial markets. that is the decline we have seen in turkey. what exposure do you have to thaty, projects in turkey may be affected, if any? now currently zero. we are in talks with customers in turkey, potential turkey -- customers and developments will drive those discussions but our exposure right now easier. -- is zero. your concernssk as far as trade is concerned. i had.ee escalation it does not seem lik

juliette saly has your first word news.nald national security aide warned the turkish ambassador the u.s. has nothing further to negotiate until a detained american pastor is freed. white house national security adviser john bolton delivered the message to the ambassador yesterday. the standoff between the countries will continue as the financial meltdown spreads to emerging markets. hisident erdogan said country will stick to the rules of the free market economy. turkisha speech to ambassadors in ankara. >> during this process, we as a country have never and would never come, rules of the free market economy. no one should take can cherry assertions seriously. -- contrary assertions seriously. juliette: stabilizing its currency in the wake of an emerging route. it is the highest in the world interest-rate and will sell $500 million to support the peso. the rates andet pledge to keep it at that level until october. the cryptocurrency of the distorted legend network tumbled as much as 17%. the biggest drop since march. the d

let's go to juliette saly with the bloomberg business flash. juliette: snapchat's parent has reported a first ever quarterly drop in users that sales topped expectations. second quarter daily average users fell 2% from the previous period to 188 million. controversial redesign of the app is hindering growth, missing expectations. that and the news that the saudi billionaire has taken a state lifted shares a little in after-hours trade. upbeats ceo has given an view of his plans for new video streaming services and of the $71 billion buyout of fox entertainment asset. this has earnings missed estimates due to film write-offs. tiger said how he sees the deal enhancing the company's global offering. has a significant stake in sky, the most successful paid television company in europe. the addition of these assets will greatly enhance our position as a global entertainment company with excellent production and distribution businesses in key and emerging markets around the world. juliette: papa john's comparable north america sales fell 6.1% in its l

word go to bloomberg first news update with juliette saly. juliette: the u.s. treasury secretary says washington is ready to hit turkey with more sanctions if the president refuses the quick release of an american pastor. steven mnuchin's comments affects -- the lira gains following the dollar and japanese yen. , weecretary pompeo myself have put sanctions on some of their cabinet members. we have more that we are planning to do if they don't release him quickly. u.s. president donald trump has prodded china to offer more at the bargaining table as the two countries prepared for the first major negotiation and more than two months. that is as they step up efforts to head off an all off -- all-out trade war. hasralia central bank chief set interest rates are likely to remain at a record low for a while yet. while limiting the local currencies resilience. he also noted the currencies resilience in recent years. he said policymakers had hoped the federal reserve would drive the u.s. dollar higher and it's all the counterpart lower. >> it's a very difficult thing t

let's get a bloomberg business flash from a lady who is following the story closely, juliette saly. k you. saudi aramco is focusing on buying a strategic stake in saudi-based industries putting work on its initial ipo on hold. while the move will delay the ipo, it does not mean the share sale is canceled. the kingdom's energy minister said the government remains committed to the ipo. volkswagen is on the hunt for self driving technology and try to buy a innovations, and autonomous driving startup found out -- founded by tesla and death of it. the were rebuffed because company wanted to maintain its independence and work with other carmakers. we will bring you an interview ath the brand head of sales 10:00 a.m. u.k. time. airways car concerns that fuel prices will erode earnings after reported record annual profit. bill among thel biggest expenses of any airline will jump 21% this financial year. wages and aircraft will become more onerous. inoncern of record earnings the forecast. >> our hedging is the better than a lot of competitors so they are seeing a bigger fuel increase. the u.

matt: thanks very much, juliette saly in singapore. asian stock gains, we have been talking about disappeared despite another fresh record from the u.s. counterpart as trade and geopolitical issues cymer and the dollar tip tire but is that -- tipped higher but is that a chance to get in on a down trend? joining me now is mark cudmore. we have seen over the past two dollar weakness. is that set to continue? there are indications that might be the start of a down trend. these are market indicators rather than a shift in fundamentals. the dollar shekel, it seems like a skipper but it is one of the best lead indicators of the dollar. it is not just coincidence. it shekel trade is dominated by the u.s. on the import and export side and capital flows are dominated by the u.s. the dollar shekel tends to leave the big dollar moves, all the major dollar moves for the last 20% plus rally, the slump in 2017 at the rebound this year, all of them were led by dollar shekel. of.roke its therefore implying there is more downside to come. it is being v

. >> and i'm juliette saly in singapore.th a check on the markets. stocks lookingn mostly higher, but on the mainland we have seen fluctuations that could be set to snap a five-day decline. we do have chinese railway companies on the retreat after they posted worse than forecast earnings. the offshore yuan is gaining ground as the pboc set the reference rate stronger yet again. it has been charging back against the greenback. 1.6%esian stocks gaining and rallying as they unveil a budget. the kuala lumpur gauge rose. they seem to be on the charm offense this, led higher by energy, this after gdp growth came in faster than expected in the second quarter. day of trading near the session highs and this could prompt policymakers to hike the rate after it has been at ultralow rate. prevent them from tightening anytime soon. they are pointing out that the central bank ought not to rush to make any moves amid this in rout. yeah. it certainly does put that into context. .ots of reasons thate had the gdp numbers she also mentioned. it

here's juliette saly. thank you. in the u.s. the fed's decision to leave interest rates unchanged has raised the odds for a hike in september. the fomc statement said economic activity is rising at "a strong rate and unemployment remains low." it repeated language about further graduate -- gradual rate increases consistent with a strong market and inflation near its 2% target. the turkish lira has plunged to a record low as the u.s. imposed sanctions on two of president erdogan's ministers over the detention of an american cleric. the u.s. treasury department says turkey's justice and interior ministers have played leading roles in the arrest and andrewon of pastor bronson. erdogan has said he will not bow to what he calls an evangelist and zionist mentality in the u.s. hastrump administration confirmed it is deciding whether to increase tariffs on 200 billion dollars of chinese goods. president donald trump has asked trade representative robert lighthizer to consider hiking the duty which could be them cemented as early as next

let's get the juliette saly.'s: donald longtime lawyer michael: has admitted that he made -- michael cohen has admitted that he made legal payments on behalf of trump. one was to keep quiet about an affair one woman allegedly had with trump. these are very serious charges and reflect a pattern of lies and dishonesty over an extended period of time. they are significant in their own right. they are particularly significant when done by a lawyer. juliette: a federal jury convicted donald trump's former campaign chairman paul manafort of tax and bank fraud. he faces 8-10 years in prison on the tax charges alone. he is scheduled for a second trial next month on obstruction as astice, and registering foreign agent of ukraine. this has nothing to do with russian collusion. it started as russian collusion. this has nothing to do. this is a witchhunt and it is a disgrace. this has nothing to do with what they started out looking for russian involvement in our campaign. there were none. juliette: the european union's chie

here is first word news with juliette saly.he trump administration will propose more than doubling its planned tariffs on chinese imports. the president had threatened an additional $200 billion in goods with levees that 10%. that may be raised to 25% in the coming days. andu.s. imposed 25% tariffs $30 billion of chinese products in early july, a review. on another $16 billion and today. the u.s. and mexico are in the final stages of a deal. bloomberg has learned that the two sides have exchanged new proposals on the auto industry. that will be his second visit in as many weeks. the issue has been one of the biggest sticking point in discussions to overhaul the north american free trade agreement. to. federal reserve is due issue a statement on the american economy and its interest rate decision later. projected rate is to remain and a range of 2%-two .5%. meanwhile, the u.s. treasury is set to unveil its latest borrowing plan. it may increase the two and three option by $1 billion a month and implement a one-time increase of $

juliette saly with your world and national headlines. asian equities trading mixed. stable afteryuan signs beijing may be propping up the currency. jeffrey gundlach has warned of a massive treasury short squeeze possible with the positioning we are looking at. joining us now, mark cudmore. i find the treasury story fascinating. garfield put a chart on the mliv i thought was interesting. we re-created it with a twist. take a look. speculative dissonance is the name of the chart. we see ten-year treasury speculative bets massively short. at the same time, you see speculative dollar bets and they are very long. worried theach treasury shorts are going to get squeeze rather than the dollar longs getting hurt? question. a good first of all the treasury short is far larger. the dollar long as the longest in a year, but it has been longer before. this treasuries position is worse than anything seen before. normally a dollar long in a treasury short are two positions that are coherent. if you imagine that if you're going to get a big dollar move upward, that would imply ther

let's get to juliette saly. e will right now are they with the bloomberg first word news -- brighton our day with the first word news. juliette: the u.s. said it will sanction russia for a nerve agent attack in the u.k. washington expects the measures take effect this month and it could be followed by sweeping penalties but -- later this year. a former spy and his daughter fell seriously ill after coming into contact with but british and american authorities say was a powerful russian-made agent. the kremlin denies involvement. saudi arabia has said it will canada foressure on criticizing the arrest of women activists as justin trudeau upheld his stance on human rights. the kingdom's foreign minister says the next wave of retaliatory steps could affect investment flows between the countries. the uk's prime minister is stepping up preparations in case brexit negotiations break down and the country leaves the european union without a deal. theresa may is planning a top-level meeting of for cabinet next month to dis