i'm sue keenan. this is bloomberg -- su keenan. this is bloomberg. >> talks ended with no progress.he two sides discussed purchases of u.s. farm produce, and rights -- i.p. rights, barriers. the talks were constructive. people rejected president trump's earlier description of "ripoff china." david: let's discuss all of this with our next guest who served in the executive office with the deputy assistant u.s. trade representative for china and the lead negotiator for the wto. henry paulson to launch the u.s.-china strategic economic dialogue. .> she's joining us welcome to the program. where are we without this? -- with all this? we have another set of talks that have ended in a bit of a whimper. moment allat the political as we wait for the election cycle to get going proper? thanks very much for having me on the show. no, i don't think it is. i think that maybe expectations were too high for the discussions that joe took -- just took place in shanghai. the biggest issue and the key progress was that the sides are both back at the negotiating table. there is a very large agreement.

i'm su keenan. this is bloomberg. tom: still ahead, hong kong airport clamps down on protesters and cathay pacific shares soar. we get you the latest on that story next. david: also, china's two largest companies report earnings. later today, a preview of what to expect from tencent and also alibaba. this is bloomberg. ♪ david: you are watching bloomberg markets. if you are among the many people you arefor updates, going to be able to fly out of hong kong today. hong kong express has canceled 14 flights in and out of hong kong today. we will get you more information as we have it. let's turn back to the china data. i have to issue a correction for myself. 4.8% the industrial output growth for china. i said that it was the biggest drop since 1992. i am mistaken. it is the biggest drop since 2002. still quite weak. us, still with alliancebernstein chief economist for greater china ji mo. we are seeing strength in the yuan. there are pressures. there is the relief on trade but the data is weaker. how do you see the curre

i'm su keenan. this is bloomberg. david: let's get our top story today. president trump's mixed signals on trade negotiations are prompting china to prepare for the worst. officials tell us his credibility has become an obstacle to talks with only a few negotiators seeing a deal possible before next year's u.s. elections. said at donald trump the g7, called to ask a resumption of talks. a short-livedated win with beijing saying it has no idea what the president was talking about. yvonne: not the only nation preparing for the worst. governments from south korea to thailand are bolstering central-bank efforts to hedge against a darkening global mood. michelle has been tracking all of this from singapore. this is something developed markets would want, but tell us what asian politicians are doing to stave off the downturn. michelle: we have been talking all month about the dovish surprises from central banks and how much policymakers are trying to get in the game to head off the downturn. from the fisc

i'm su keenan. this is bloomberg. david: still ahead on the program, china's actions in hong kong will shape the u.s. relationship according to senator mcconnell. the latest on the unrest. falling inus, xiaomi hong kong after an earnings analysis is coming up ahead. this is bloomberg. ♪ david: big event, and of the wheat from wall street to the white house. jay powell will kickoff the jackson hole symposium with a speech that hopefully signals he is revving up for a series of rate cuts. rishaad: tuuli mccully from scotiabank is still with us. that would be music to donald trump spears, wouldn't it? tuuli: it certainly -- trump's years, wouldn't it? tuuli mccully it certainly would. the big thing this week is the jackson hole speech by chair powell and it will be interesting to hear if he sticks to the midcycle adjustment tone or will promise more. we at scotiabank think the fed will cut two more times by the end of the year, most likely september and december. david: is to cuts going to be enough -- two cuts going to

i'm su keenan with first word headlines. the fed, st. fed president 's policy makers have taken steps to account for trade war uncertainty and he's only expecting one more rate cut this year. he told the national economics club in washington it is important to watch that that ahead of the fed next meeting, but little has changed june when he forecasted .5% cut. >> the nature of tit-for-tat trade war is there are threats occurring all the time. some of these might be implemented. some might not ever get implemented but the nature of the war's you have tit-for-tat going on all the time. it is not reasonable for monetary policy to respond to these threats and counter threats. su: to japan, a key measure of the japanese economy has fallen to a level not seen the wake of the financial crisis. this adds to concerns about growth ahead of the sales hike in october. the leading coincident index dropped to 93.3 engine, the lowest february 2010. it draws on nine measures including industrial output and shipments of consumer goods. andlators in sing

i'm su keenan. this is bloomberg. seems to be holding off a decision to grant huawei the retaliation for halting u.s. agricultural purchases. the latest comes as the trump administration works on chinese imports with fresh tariffs that start at the start of next month. david: jodi schneider is here to brief us on this latest tit-for-tat. kathleen: it looks like this is in response to china not buying agricultural purchases. it has been back and forth really since june, when the u.s. and china announced a trade truce in japan and they basically have both said the other broke the truce. the u.s. saying china would buy more agricultural products, saying it didn't do that and then the u.s. going ahead and saying it will have higher tariffs and china saying now it will not buy more agricultural goods. this has been an escalating trade war. wilbur ross, the commerce secretary, says there have been 50 companies that have apply for these licenses. u.s. companies need a special license to do business with huawei, given it is o

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keenan. this is bloomberg. ahead, as hong kong braces for more protest, we will take a look at the growing fallout on the economy. tom: alibaba asks, what china slow down? the company is reporting steady earnings. this is bloomberg. ♪ tom: as expected, as we headed into the commercial break, the boj cutting the purchases by ¥30 billion. that is why they needed to buy a little bit less. yvonne: japanese bonds are now the high-yield there's. talk about the -- high-yield ers. watching the fix and some positive earnings. we can dig into this. as term -- in terms of alibaba as well, beating the street. net income more than doubled. risk ofed just as the recession spiked. archrival has warned of a tough economic outlook. joining us is mitchell green. he is an investor in alibaba and has 20% of $2 billion in assets. thank you for joining us. invest your top take on these earnings -- give us your top take on these earnings for alibaba and what it tells us about the company strategy. mitchell: the numbers speak for them

i'm su keenan. this is bloomberg. so much payment ahead of jackson hole, let's have a look at the fed. an annual symposium among central bankers this week. point cut is an insurance movement they argue on the need to lower rates. >> you no longer have anything anchoring the markets. you no longer have the fed's ability to affect financial volatility. the answer is more progrowth policies to live structural impediments. importantly, that is unlikely to materialize. that is the big concern moving forward. >> they're going to cut rates and they know it. one not get as much bang for the buck, do something very fast to rip the band-aid off and move on. that would send a clear signal to the market that the fed does not going to allow recession to occur. >> the fed has to do this, they're being pushed into this by the market. rates have gone down pretty dramatically. that is our concern that they will have to start looking at qe and then fiscal policy. do we expect any thing significant from jay powell? he has to get the opt

i'm su keenan with the first world headlines. the u.k. an international mission to protect shipping in the gulf. as tensions rise with iran, the government is encouraging watch the strait of hormuse. trying to preserve the 2015 iran nuclear deal. to north korea now. the country has launched more rank rapping up the pressure. the latest test comes as south korea and the u.s. begin military drills which pyongyang described as a violation of an agreement struck between kim jong un and president trump in singapore. to corporate news now. google's former head of h.r. is joining calls for the company to end its reliance on contractors. he says there are occasions when workers should start on a contract but then in general people should be employees. we reported google has more people through vendor and contract agencies than employees directly. google has been told to respond to senate calls on employment terms. >> i can see situations where you try before you buy. you don't know if the person is going to work out. you don't know if you're busi

i'm su keenan. this is bloomberg. both hong kong we are a half-hour away from the open in sydney. let's turn to selena. what are you watching? for a slate ofing korea stock movers that could move significantly when the markets open. korea gas reported operating profit for the second quarter that be the highest analyst estimate coming in at 204 point 7 billion juan versus the estimate of 121.3 8 billion yuan. hasung is reporting that it begun sourcing extreme ultraviolet photoresist that the compound used in the chipmaking process. it is sourcing that from a belgian company. samsung was telling nikkei this in terms of explaining how it is diversifying its suppliers to deal with the japanese export restrictions. down --k korea was colmar korea was down. videowas a youtube criticizing the government's response to japan's export curbs to employees during a monthly meeting. rush to haven assets continued. looking at the japanese yen strengthening against the dollar, extending move seen at the end of lax week when trump sai

i'm su keenan. this is bloomberg. up, we'll look at escalating tensions around these protests in hong kong. rishaad: how long china can hang on. this is bloomberg. rishaad: it's a decade since we had a fix like this with the yuan fixing above seven. 2008 it was. we go than seven for the first time since 2008. david: andrew chilton is still with us. goldman sachs' chief asia-pacific economist. you guys have some thoughts on this currency manipulator tag. >> the treasury named china a currency manipulator. it was actually china as well with the last country named a currency manipulator. there was a lot of focus on this particularly early on in the tariffs and trade escalation. it requires the treasury secretary to engage in enhanced negotiations and look for ways to address the so-called currency manipulation, but i think given where we are, after several rounds of u.s. tariffs, at this point in our view, it is mostly a symbolic designation. it does suggest other things equal, that the trade war will be incrementally mo

i'm su keenan. this is bloomberg. still ahead, hong kong retail sales numbers show we are at decade lows as tourists -- we will preview another week. david: we are driving the path ceorofitability, the uber will tell us how the company is closer than ever to making money. this is bloomberg. ♪ yvonne: today marks two years since the new ceo took the wheel at uber, inheriting the role from travis kalanick. he faces slowing growth amid the cloudy act -- macro economic backdrop. he explained to bloomberg how uber plans to whether the headwinds. >> the consumer in the u.s. is very strong. we are a global company and the majority of our transactions are outside of the u.s., so we look at global growth to the extent global growth slows down, that could be a negative for us. if global growth slows down, we will have more driver partners wanting to come off the platform because we expose very flexible opportunities. the growth of the company is beh that we are going to relatively resistant any macro slowdown and we are not see

let's get to first word news with su keenan.start with tens of thousands of protesters who defied the rain in hong kong and marched are an 11th straight weekend. protest organizers claimed 1.7 million people took part, spreading beyond the path where police estimated 130,000 had initially gathered. the hong kong finance secretary is warning of an economic because of the city the continuing unrest. president trump is indicating trade talks with china remain on track ahead of schedule meetings in washington next month. he tweeted things are doing very well and the two sides continue to be in contact. his top economic adviser larry kudlow said recent photo op -- phone calls have been positive with more discussions planned for the coming days. in india the country is easing a lockdown in kashmir with a curfew partially lifted. communication was restored. landline and mobile speed has resumed and schools and government offices reopen monday. the un's security council discussed the region for the first time since 1965 but failed to pr

threw two su keenan. -- let's go to su keenan. su: an autopsy has been performed on jeffrey epstein. more information is needed. a medical examiner carried out by a privatetion pathologist. he was found unresponsive in a manhattan jail cell. summers said the u.s. and global economies are the riskiest moments since the financial crisis. he told cnn the slowdown has worsened with president trump's trade war, which he called masochistic and foolish. the u.s. losing out in terms of uncertainty and lower job creation. the benefits are unlikely to be of good magnitude. t-shirt -- neighbors hockey t-shirts part a wave of online controversy. they mistakenly showed hong kong and macau as separate nations that special and regions of china. theyce apologized and said respected china's sovereignty, but it wasn't enough to stop address -- actors yang mi. she has severed all ties. 32 people have been killed and 60 more are missing after a a provincept through on the eastern coast. more than one million people images forted, and that over $2 mil

i'm su keenan. this is bloomberg. david: think is so much. couple of minutes ago it was , the standing lending rate down 50 basis once. 7% on the former 8%. inhaad: more wiggle room anticipation of more rate cuts in the u.s. as well. story,et back to our top investors cautious because they are all waiting for certain man to address certain gathering in wyoming. meanwhiletrump pushing for more rate cuts. three sources telling bloomberg they opposed the idea. >> pal under pressure. that's how it's looking for the fed chair a kansas city fed kicks off at symposium here in jackson hole, wyoming. markets have been looking for the fed chair to signal another rate cut but lately the voices of dissent have been growing. in fact, the kansas of the kansas city fed, who defended the last meeting, spoke earlier and said, number one, she really doesn't see the need for the economy to take out another rate cut of insurance. at the same time, she's not worried about signals from the market. why you see fear and uncertainty about now. that is the metric i fe

i am su keenan with the first word headlines.sident trump and imposing tariffs on chinese imports. he is warning it could rise to 25%. the new tariffs affect $300 billion of good shipped from china. the president says his counterpart must do more to resolve the trade disputes. >> i think he wants to make a deal. not moving fast enough. he said he was going to stop fenton all coming into our country. we are losing thousands of people. >> mount -- markets coiling on the news. biggestseeing the two-day drop since may. trump said he is not concerned saying i expected that a little bit. oil fell the most in four years on fears the escalation in the trade war will exacerbate the global slowdown. protests in hong kong may be starting to deter gambling in macau. revenue fell, down 3.5%. that is down from a year ago. a tworecast cut short month rebound. casinos had been holding up in the face of the trade war and the chinese economy. tourist arrivals at record levels. boeing, the company redesigning the flight control center to employ dat

let's move things along and get to new york. 4 here is sus this keenan. >> the g-7 summit wrapped up with no traditional communique ut it has a sparse declaration for fair global trade and stability. a stark contrast to last year's post summit statement in canada which was rejected by president trump. speaking of president trump, he also said he would be prepared to meet with the iranian leader under what he called the correct circumstances and said he would extend a letter of credit to iran backed by oil to help them meet their financial obligations. tehran said a tanker has been told but declined to name the buyer or the destination. exports contracted for a ninth straight month in july. while the jump is not as bad as expected, the city's economy is suffering under the trade war and the continuing anti-government protests. exports declined to 43.2 billion u.s. dollars down 5.7% from a year earlier. shipments have retreated 9% in june, the biggest decline since february, 2016. to boeing's latest troubles. they are facing the first lawsuit from a customer of its grounded 737 max. a

paul: let's check in on first keenan.gentina has been downgraded into junk after markets braced after president mike regan soundly beaten. - pres. macri that is argentina on par with exam you and the congo. s&p lowered its sovereign rating b-.be minus - to the peso fall to record low. a leaked document from the u.k. government suggest u.k. will face fuel, fall, and medicine shortages with the no deal brexit. that is in addition to job losses and poor issues. the government is saying that the governments yellow hammer file warns of restricted supplies of fresh food and interruptions of supply chain. government officials say the documents set out the worst case scenario. >> it is the case as every one knows that if we have a no deal exit, there will inevitably be some disruption, some bumps in the road. it is also the case that the u.k. government's farmer prepared now than it was in the past. it is also important for people to recognize that what is being described in these documents in operation yellow hammer is emphatica

i am su keenan p this is bloomberg. david: how low can you go? hong kong tycoon stocks took a massive hit. no end in sight. more on the protest next. into the upside down. we ask the bank of singapore what an inverted yield curve could bring. this is bloomberg. ♪ david: welcome back. you are watching bloomberg markets. president trump was tweeting his support for president xi jinping in dealing with what he called the hong kong problem. suggests a personal meeting. this comes with more protest planned in the city which is really starting to feel the economic impact of all these disruptions. let's get it to stephen engle. he was at the airport yesterday. he is at the business district to tell us why he is there. in front ofare here pacific place mall because the economy is hurting. above pacific place mall is the 45% owned parents of cathay pacific. and there is jw marriott and shopping. different parts of the economy , hurt by this and the trade war. we are seeing it in the economy of course. you cover the markets closely. we can bring up statist

i left the white house, but they called me back in to help on that speech with him and cody keenan and and specifically on the part about grace and about faith. i'm an ame myself so i went down with my dad who is a pastor in the ame church and was friends with the pastor that was lost, so i was sitting right there behind the family and i knew he was going to talk about great. we had worked on that in the speech, but i did not know he was going to sing it. and, you know, we just all in that moment, sort of our spirits and our bodies rose to greet him and we were just enveloped in this moment of grace together. it wasn't a republican thing or a democrat thing, a black or a white thing, it was people coming together to say that hate will not carry the day. so it was a really, really unique moment in american history, but it takes a leader to lead in moments like that. >> you -- you know, that's what the president did publicly for that and then also you know what he did for mother emanuel and for sandy hook. but you write in your book about what happened privately with parents of the victi

i'm su keenan. this is bloomberg. haslinda: thank you.hinese buyers have historically made up the bulk of property sales in thailand, but the mainland has raised concerns about future investments in real estate. one of the top state developers is stepping up a push for overseas buyers planning to launch more in 2019. let's bring in the ceo joining us this morning. us. to have you with what kind of impact can be seen from the slow down not just in thailand but pretty much the rest? , we slow downows and the launching. you said we launched 16 projects, 10 of them are housing projects with non-foreign buyers. only six will be foreign buyers. which are the condominiums. out of that, we expect only about may be 20%. actually, the number is not very significant for us in terms of the companywide, but of course, a slowdown of economy as a whole has a certain impact. haslinda: 20% slow down for now. given that the slowdown is expected and that could even be a global recession, what is the projection for the next two to three years? >> if you thin

to new york and join su keenan. with germany,t this is a could muster $55 million in stimulus funding. the governmenth says it spent last time a crisis hit more than a decade ago. and it says it has the reserves to do the same again if necessary. the prime minister says action is not needed yet. the biggest problem is uncertainty costs in ongoing u.s.-china trade wars. senior white house advisers fanned out across the sunday talk show circuit to push back at fears of recession here in the u.s.. they said the economy remains robust and consumers are still spending. top economic aid larry kudlow and trade advisor peter navarro said there are no additional plans for not staying the course. i sure do not see a recession. we had some blockbuster retail for the end of last way. really blockbuster numbers. , moste a lot of worries economists on wall street were marking up their forecast. for the 34th quarters. that echoes our view. su: argentina has been downgraded further into junk. the president was soundly defeated in a

just taking the blad >> this is hit or miss but they also landed a role on the upcoming nbc show the keenanow. what can you tell us about this. >> how cool is that? >> next right this young boy is having fun cruising along and right behind him is his folks. why even they didn't see this close call coming. plus, callie the lizard passed on. >> so the family banded together to throw one heck of a funeral. >> how they layed her to rest in the best way. ♪ ♪ unlock the cinnaverse with cinnamon toast crunch. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ yof your daily routine.lf so why treat your mouth any differently? listerine® completes the job by preventing plaque, early gum disease, and killing up to 99.9% of germs. try listerine® and for on-the-go, try listerine® ready! tabs™ (

for more on all of this, bloomberg's su keenan joins us now. su, a selloff? anditerally, a sea of red one analyst said we are seeing sell first and ask later. we had the s&p 500 sinking, the dow down 800. take a look at the futures, which are relatively flat, considering the financials, as mentioned, leading the way lower along with energy. let's take a look at just some of the sectors that were hit hard and the size of the losses. , and if you look at the first panel of stocks that were lower, we had goldman down. let's see, let's go to the bloomberg, because the finish here is -- we talk about the inversion of the bond curve. the last three recessions have not occurred when the curve was inverted. that was in early 2000 and between late two and 2007 for the last two, so the wall of worry is rising. others are saying, "hold on a sec." let's take a look at the volatility and the losses. many believe what you will see is increase volatility. bank stocks down in a big way, goldman down 4%, jp morgan down for percent, energy down close to 4%, pretty much across

shery: su keenan, thank you so much for that.ning us now is wells fargo securities equity strategist anna han. great to have you with us. we saw yields rise today as well as stock market. more transitional move then we have not seen so much of recently. given how extreme the bond market has performed recently, where are we in terms of equity valuation especially with the recent selloff? anna: it has really created a buying opportunity. what we have been telling respectable ofe the selloff. this is not a time to dive in. the near-term volatility for us signals the equity market is still digesting the new information that it has received in a very concentrated amount of time. when you have that, in our view, we have characterized it to investors as this is a pencil down movement -- moment. until we see big catalyst that can relieve the uncertainty in the market, we would think it is a time to pause and reinvest. shery: what is the new information at the moment because we have seen the july rate cut which was bit of a hawkish cut an

our catherine keenan is there and she'll have a live report tonight at 8.30. big story tonight is anti immigrant rhetoric. heats up across the nation. the number of. >>hate crimes is also on the upswing across america here in the bay area homeless woman has been arrested for a hate crime. she accused of vandalizing several businesses with anti-muslim graffiti kron four's dan kerman live in concord with more on this story. dan. outside the international marketing grill entry boulevard here in tree plaza, right here is where some of the graffiti was there were several locations where this. >>anti muslim graffiti was it has since been painted over, but police have made an arrest. woman come basi owns the international marketing grill on treat boulevard in concord tuesday he arrived to work to find anti muslim graffiti written on his business and several others in the tree plaza shopping center this is muslim go a good to there was like a. the fan, one. her boss he's on the store since december and says he's never encountered this type of thing before. but it's no

paul: su keenan, thanks very much for joining us. the u.s.rump says and china will remain trade calls although he offered no timeline or other details. indicatedfter beijing it will not immediately retaliate against the president latest tariff increase and wants to prevent any further escalation, so let's bring in our senior trade editor, sarah mcgregor. what do we know about these talks? we heard from donald trump today that the two sides were supposed to speak by phone. he did not indicate a level of officials that would be speaking. the top negotiators or people below them. but really, they kept up the communications throughout. arefact that the two sides not having a phone call is not necessarily a huge, significant event. what is is what is coming up and the eight hours with the u.s. hitting 100 $10 billion of chinese goods with the 15% tariffs. intend to it does not really retaliate in a major way but it has announced that it ofld hit $75 billion american goods, so it does remain to be seen if they will move ahead with that once the u.s

keenan, keenan, -- su thank you so much. great to see you.e continue to see this volatility in the market, this crowding of safe havens. markets areng caught in a feedback loop between trump, china, and the fed? explain to us what you are seeing. >> you have this strange loop between central banks reacting to markets, and it has always been the case, and on the other hand, the markets have been sensitive to what trump does. you get a little bit of the tweets coming out and a markets selling off. central banks have to react and then the new tweets come out. we are in a negative feedback loop. this have happened before. think about the euro crisis. to break the loop requires a significant change ahead. either a true resolution to the trade dispute or significant monitor using. going to -- monetary easing. it is just not there. you have to expect greater action by monetary policy. shery: what i do not understand is why the markets are rallying so hard on comments coming from trade. most analysts we talked to do not expect much to come out of tho

paul: su keenan, thanks very much for that.oining us now is the market strategist, eleanor creagh. thank you for joining us. eleanor: thank you for having me. both right off the bat, ugly sure knows how to start a conversation but he got criticized for saying pretty much what everyone is thinking. it does not make sense for the red hold back on limited ammunition and that politics salt a political problem. -- solve a political problem. easeor: they are having to more than is necessary just taking a really aggressive road with china when it comes to resetting that trading relationship. comes tohat when it the u.s. president, not much is going to sway his mind. we have seen at least trade tensions have continued to escalate and we are expecting that will continue to be the case. that trade relationship is a sideshow for the real problem, which is the battle for test dominance and hegemony of the 21st century, so that is not to be an ongoing rattled that will -- battle that will rage on. in that sense, i understand that least comm

i'm su keenan. this is bloomberg. rishaad: we go to treasury secretary steven mnuchin telling bloomberg that the possibility of long bonds is under serious consideration. in an exclusive interview, he said he anticipates taking advantage of favorable conditions. the bond market with a spread between the five and 30 year treasuries widening. david: yep. let's talk about the prospects. joining us on set, head of fixed and -- fixed income. this has been talked about for a while, issuing bonds for longer than 30 years. we saw a very good appetite from the market last week when the germans tried to do the 30 year. what do you think? what would be the appetite of the market young 30 year treasuries? >> i think there is a demand there, otherwise we would not see it competent. david: good point. >> i think when you look back, the whole yield curve, everyone is talking about it being inverted. 2017,ou look back in tightening the rates, it went into a hiking mode. it is a very natural reaction. about started wondering hiking th

paul: su keenan, thanks. says trade talks in washington next month are still on despite the latest tit-for-tat trade. >> we are planning for the chinese to come here next month and if there is a good deal or progress, we may reconsider some things, but similarly, he also said there is no good deal, no progress, he may reconsider some things on the other side. tensions remain high despite china's stronger-than-expected yuan fixing yesterday. let's cross to sarah mcgregor in l.a. what is the latest word from the white house? quite it does seem optimistic to hear that the u.s. is interested in negotiating a deal and it is looking forward to these talks. it will take both sides to agree to keep talks going and we really have not heard from china yet either way on whether it still plans to come. the u.s. since the last round has really escalated things by saying they will impose 10% tariffs. of course, labeling the country a currency manipulator yesterday, which was quite inflammatory to do, it might have huge rep

shery: su keenan, thank you so much for that. twitter and facebook say they discovered accounts that claimed china used to undermine the hong kong protest movement. we will assess the implications. up next, u.s. stocks rose on the latest trade headlines and speculation that central banks will shore up their economies. our next guest warns of the rotating trade. this is bloomberg. ♪ shery: "daybreak asia this is." i am shery ahn in new york. paul: i am paul allen in sydney. huawei has won temporary retrieve in the u.s.. there is a ban on doing business with the company for another 90 days. it is being treated unfairly by washington, so for more on all of this, let's get to derek wallbank. 90 days for u.s. businesses to disentangle themselves from huawei. will this be enough? derek: very early good morning to you from singapore. as we wake up, the news that people should take here and in china where they are just waking somew is that this is not solution. this is not some finale. punt.s an absolute you have another 90 day extension

su keenan is here with the latest on the action. we saw some more positive sentiment when it came to consumer data. other news weighing on companies. su: alibaba came out with strong results that made you think what global turmoil? cisco tells us it has taken a hit. let's take a look at the market snapshot. stocks went on a wild right thing -- ride. consumer stocks were one of the strongest ones in the market. volatility was the name of the game. it has been the name for the past 12 sessions for the s&p 500. one strategist said we are getting messages as china and the u.s. ratcheted up or walk it back in terms of aggression. it is hard to sort out. let's go through individual stocks stories. as aave ge plunging prominent financial investigator. he was involved in the bertie madoff case. accused the company of accounting fraud. ge saying the allegations are meritless but investors are hitting the pause button for gdp. these are luxury stocks that came out. a lot of hedge funds were lightening up on these with exposure to china. a lot

paul: su keenan, thank you for the update. still to come, more scrutiny for facebook. european union regulators are probing the social networks digital currency projects. shery: next, looking ahead to jackson hole. make ofs jerome powell the cuts the president is calling for? this is bloomberg. ♪ rg. ♪ ♪ this is "daybreak: asia." from wall street to the white house, hopes running high and that fed chair jay powell will kick off the jackson hole symposium later this week with a speech that signals he is revving up for a series of rate cuts. kathleen hays is here to explain why powell may not deliver. kathleen: everyone around the -- it's notused unusual, what usually happens at the symposium, going on more than 30 years. people from all over the world gather in jackson hole, wyoming. jay powell last year gave a speech, he kicked it off as the fed chair does every year. that is him last year on the right with the president of the kansas city fed, and the new york fed president in the middle. what people expect now is come on, you've got to give us a signal that the world

su keenan joins me with more on this favorited continue to see the bond rally pressuring those financials. it did not foretell the whole story of the volatility. strategists have said it has been head spinning on the trade issue from friday until now. take a look at the financials being the weakest sector in the s&p 500. you have the dollar holding steady, bond suspension on the move. take a look at the big story of , together again is the title of the chart. phillip morris confirming it is in talks with austria, a planned -- theafter a decade of all stock deal is expected to come together and be the biggest since at&t bid for time warner in 2016. you notice phillip morris and austria were both down on the news. cosco is up in a huge way. the store was mobbed and they had to close early. also saw adities seesaw session, especially oil rising ahead of wednesday's data. what is the story? su: there is expected to be a bullish outlook. private report was out signaling a bullish data situation and that is overshadowing the trade issue right now. gold continues to trade near a six-year high. u

su keenan joins us with more on the day's trading. what are the highlights? the highlight was the reversal itself. statistically, the third biggest since december 20 17. take a look at how things played out. of course, the dollar ended up pretty much close to unchanged. you have heard about the turnaround in bond yields. consumer staples ended up being one of the stronger parts of the stock market. let's take a look at the big movers on the day. the big movers includes a drugstore chain which saw its biggest jump in eight years after raising its forecast. watchers, a huge 40% gain as the company beat earnings after hours yesterday. it continued to carry through in the session. oprah winfrey, the billionaire, what of the biggest investors and also a spokesperson for the company, so that is helping in the rebound. disney falling the most since on thatllowthrough "star wars" ride really proving a disappointment at the theme parks. profit-taking is a theme of late. -- investors pulling out pulling money out of markets? show investorscs have pulled $25 billion fro

su keenan has more. let's get started with the stock market because we saw them higher. volume was still low. su: many say it is the end of the summer time where typically you see a lot of wall street veterans take off. there is the hidden volatility. even though the vix has declined, volatility remains and you've got very fragile investor sentiment. investors watching the headlines read especially when you have trade headlines, it adds the volatility. the stocks index was actually strong after a big selloff friday. take a look at some of the big movers. they have a lot to do with the drugmaker sector. amgen, allrs squibb, of them related. amgen to pay $13.4 billion for a blockbuster psoriasis drug. shedding the asset in order to win antitrust regulatory approval for its merger with bristol-myers squibb. all three are winners. dropping as much as almost 6% monday. the biggest drop since december. there are some analysts that believe there is possibly renewed speculation about a philip morris combination, according to an analyst. let's look after hours because sticking wi

su keenan has more on this.ompletely different story than what we saw through it -- saw with lyfts. usu: let's get right to the scoreboard. as far as volatility, the worst is over. china doing what they can. 100 techat the nasdaq came back in a strong way. we are seeing big changes in future which are slightly lower going into the friday session. .et's get the movers amd coming out with what is called a game changing shift. the stock in the stratosphere. uber rallying ahead of the results basically on a strong report lyft had given. on a down in a big way disappointing earnings report. she tv is where you can find our library of charts. gtv is where you can find our library of charts. the debate rests and where the next leg of the s&p is headed. always lot of action as in the oil futures market. they rebounded from a seven-month low. saudi's signaling they will take steps to stabilize things. what is the latest? : we saw oil rising for the first time in a week. if we go to the big picture, the story is that the

su keenan joins us with more on this. to stayid manage positive. we had a real shot in the arm from strong earnings results from retailers which are defying fears of recessions. let's go to the bloomberg. the exchange traded fund or etf techmimics the nasdaq heavy index, and we have been seeing a lot of investors or outflows run that index, and then go to the big movies of the day, and it's fascinating to see retailers put the momentum play. target a record high walmart results, and that shows the ongoing resilience we are seeing with these discounters amid the broader retail industry. we saw lows really knock it out of the ballpark is gross margin beat expectations against combing fears -- combing -- calming fears, much better than expected. nordstrom better than expected and somehow avoiding the challenge of the bigger department store chains. after hours, we saw l brands, the parent company of victoria's secret, also beat expectations, though they did report weaker than expected sales in their core lingerie area. will and meanwhile, we saw oil f

su keenan is here to take us through the action of the day. where do you want to start?u: let's start with the fact that we have the s&p 500 putting two gains back to back. we saw industrials and tech lead the way higher, particularly chip stocks. let's go right into the bloomberg. you mentioned gdp data. one of the best quarters for .onsumer spending since 2003 really underscores the story of resilience. again, that was propping up some of the gains. as we go into major movers, you will see energy stocks, chip stocks, and the gains were fairly significant across the board. big moves inf commodities as well. oil rising to a two-week high. orange juice futures jumping thanks to the hurricane. what's the latest? su: a hurricane two years ago cost billions of dollars of damage to the orange groves in florida. if you look at the chart, you can see we are almost at 10% gains just for the week, and that is probably one of the best gains we have seen since 2017. take a look also at oil. that is climbing to a two-week high on positivity about , but also trade talks stockpiles in

i'm su keenan. this is bloomberg. rishaad: thank you very much indeed.e lam has made some brief comments about the continuing unrest in the city and came in for some tough questioning. she was asked if she has the autonomy to withdraw the extradition bill. our chief correspondent is at the airport where protests are continuing. what was your key takeaway from carrie lam's comments? steve: nothing new. that is my key takeaway. what are the steps she is pledging to do to help repair the rifts in society. she has repeated the same types of statements including that the hong kong economy is suffering because of the ongoing protests heading into an 11th consecutive week. if anything stood out to me, it was a slight show of emotion and care as well for the people who have been hurt and that might be something that does resonate with the hong kong peep. let me recap briefly her comments as she choked up, i might add. she said to look at what happened in the past week, i have worried that hong kong, always respecting the rule of law and a safe society will be ve

i'm su keenan, this is bloomberg. few markets across asia are close, including japan.he markets that are open, let's turn to selina for what to watch. for some stock last was down 1.3%. this is on reports that moco anorts has planned investment and is under investigation. reports that crime gangs laundered money at casinos. we have heard that they will be fully cooperating, so we happens.how that harvey norman closed up 2.1 percent. they entered an agreement to buy resorts. and frontera, updated guidance announcing a review that identified a small number of assets the company believes to be overvalued based on the outlook for expected future returns. paul: thanks very much. let's get more on what we should be watching us trading gets underway in asia. adam haigh is with us. last week, very volatile. trade tensions are ratcheting up once again. can we expect to see the outside swings continue this week? adam: i think traders will be hoping it will not be as volatile as last week. there is likely to be a bit of movement in prices, but some of what we saw in treasuries ma

keenan, thanks very much for that.et's look at what else we should be watching as trading gets under way in asia. adam, just hours away from jay powell's speech at jackson hole. sure ay they are not so rate cut is the right thing to do here. adam: absolutely. the bond market is starting to shift away from more aggressive rate cut bets that worked pretty well. tothe 10-year yield drops 1.52 or so, we have seen the awayctory slowly grind up from that as we have heard from, as you say, a number of fed officials, just putting a little bit of caution around the idea of it we are going to see ultimately a more aggressive fed or more aggressive sounding powell. alicia anything from the bank of new york mellon said the market was setting itself up for a little bit of disappointment. we are still not far off those all-time highs, and as i said, yields have rallied off that, but what you are also seeing is that traders are hedging for a rise in treasury yields, and that's pretty interesting. you look at the put/call ratio on tre

su keenan has been watching the action.have seen more positive moods and rhetoric coming both from the u.s. and china, but the fundamental trade issues remain. su: yes, but a lot of strategists, especially on the bull side are saying it was an orderly selloff, no capitulation and that gives them confidence in what we are seeing. let's go right to this market snapshot. the dollar steady to. we did see one of the areas of strength, the s&p 500 technology, that proved to be strong. you can see a big bounce back in apple which had its biggest drop in two months, down more than 5%. amd also back, juiced by the fact their ceos said rumors that she was leaving are not true. hertz on the mix with a strong earnings report. but, let's go into the bloomberg stocks oversold, the title of the msci index i have on the bloomberg. gtv is where you can find a library of charts. this shows us what we are seeing, that the market did come back. there are many that said what we saw yesterday does indicate there is a lot under the hood, so to sp

su keenan is here with more.ho could blame investors for being on the sidelines in such an important week? su: a lot of news is about to come and we are starting to be in the final weeks of summer where a lot of wall street traditionally takes off. a lot of that adding to low news volume. you will notice financials is one of the weaker sectors. let's go right into the bloomberg. underperformance from financials resumed before this was called. this is a chart of xlf, an exchange traded fund of the financials. again, continuing to underperform. let's go into the big movers. pacing some of the decline. bank of america, shot in the financials. we look at the other stocks that are big movers, beyond meat getting a big upgrade from j.p. morgan chase, the only upgrade. they have a strong earning. baidu continuing to ride on it strong earnings. apple tv slowing netflix down, showing increased competition in this space. take a look at the retailers under pressure. shery mentioned at the top, kohl's missed. the news was no

in miami, bill keenan, fox news. >>> planned parenthood refusing federal funding.coming up here on the four, the reasoning behind their decision after a ruling by the trump administration. >>> and wisdom teeth, should they be preserved or discarded? coming up next, a bay area oral surgeon joins us live to talk about 20 banking. >>> for a lot of people, wisdom teeth are an annoyance that eventually need to be removed but a bay area oral surgeon sees something more. a valuable reservoir of stem cells. dr. scott joins us live. scott, you say it is important not to discard wisdom tooth? >> that is correct. wisdom teeth have a valuable source of stem tell cells. you can discard them as medical ways and some patients prefer to take them with them but we have another option where we could actually of the teeth saved cryogenically and the stem cells harvested for future use for their patients, for the patient in the future . >> so doctor, what might these stem cells be used for one day? >> i think the field is wide open. we are just kind of on the very cusp of what has bec

it's the news continues on our 24 7 streaming service called kron on is commercial free catherine keenan in the newsroom with what we're working on catherine. >>thank you ken and pam you're coming up at 11 house speaker nancy pelosi on her home turf from san francisco talking about the fight against gun violence. the town hall meeting where she outlined what she thinks must happen in order to help that story coming up at 11 back to you. >>thank you catherine make sure and download the kron on app to get 24 7 commercial free local news coverage, >>and we're seeing that fog rolling in tonight looking toward the sfo right now is the fog out there. low level again tonight you can see some dense fog along the coastline that being said has uncovered sfo or the other airports are no delays being reported around the bay area right now to morning morning we wake up we got some patchy fog that will be thick early on temperatures in the 50 in the 60's by noon mid 80's. inland, lot of 70's inside the bay and 60's along the coastline. in the afternoon. the hottest temperatures going to be the 80's lo

su keenan joins us with more.ith a just closing out marginal gain. >> that does not tell the whole story, that it erased a 2% drop the third biggest reversal of stocks since 2017. notice the s&p 500 consumer staples index was an area of strength in the market, up better than 1%. the dollar relatively unchanged and yields had their own wild ride. let's look at some of the big movers. earnings happened to be a big art of the story. cvs health care having its biggest one-day jump in eight years as it raises its forecast. disney under pressure after disappointing results after the bell yesterday. the star wars theme park ride hurting theme park attendance in the u.s.. weight watchers with its biggest investor, billionaire oprah winfrey, surging after positive results, and an announcement that oprah will be taking a greater role in some of the ads going forward. a media company announcing it will lighten up some of its holdings. let's go to the bloomberg rate profit-taking is a big question as we look at the unease tha