yeah exactly so china's ministry of commerce have also asked the u.s. to mediately stop making irresponsible remarks and remove all chinese companies from the list of entities and some media reports have also pointed out that the chinese delegation is planning to cut short of their stay in washington so these are all make the prospects of this new round of trade talk beat bleaker than we have expected this is the 1st time since may that the u.s. and china will hold negotiations in its in their trade dispute what lies at the heart of these talks. so right now both sides are at odds over china's willingness to fulfill its earlier promises and the u.s. attempt to infringe on economic sovereignty so china wants the u.s. to lift all punitive terrorists while the u.s. wants china to suspend its a subsidy to chinese businesses and also strictly enforce ip protection so there are a couple of factors that might potentially complicate these negotiations you mentioned a couple there how the experts assess the likelihood of both sides actually reaching a deal which

china's ministry of commerce says the two sides have agreed to properly resolve their core concerns. -democracypro activists clashed with police again this sunday. this is the 21st straight weekend of unrest. always fired at protesters. bs atsters threw bom police. there was separation in the new territories. as was after up is the rally that drew thousands of protesters in central. in hong kong, the financial secretary is warning of the potential for negative growth as the economy reels for more than four months of unrest. impossibleaid it is to rule out of the possibility -- rule out the possibility of a gdp combine -- decline. 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan. shery: the islamic state leader is dead after a u.s. sport for rases -- special forces id. d.c. forto ross in more. how much of a political boost is this for the president? >> we would expect to see some boost in president trump's approval ratings after the successful raid. especially after the long and detailed discussion

the chinese ministry of commerce said they have agreed to properly resolve their concerns. chinese communist committee is expected to meet monday for the first time since february of last year. that is the longest stretch in the decade since china started economic reform. president xi is expected to pick off where he left off, solidifying his rule over the party. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm annabelle droulers. this is bloomberg. gainingasian stocks amid volatility, tracking lower, s&p futures with record highs amid trade optimism, which has pushed the south korean won lower, and we are seeing an extended selloff in chinese bonds, the 10 year yield jumping by the most since april, and we are seeing this along the gtv curve, adding basis points ahead of the meeting later this week. and stocks are being led this morning with a company that could test 27,000, with names like geely jumping on solid results, and with me let kong, -- now in hong and with investors no

china's ministry of commerce said the two sides agreed to properly resolve their core concerns. rned by china's biggest industrial firms are falling as the economy slows and factory deflation deepens. data from the national bureau of statistics shows industrial september,l 5.3% in a faster decline in the month before. industrial production picked up the pressure on pricing and continues to weigh on profits and servicing ability. firefighters in california are working to contain blazes that have forced the evacuation of 200,000 people. homes and at least one winery have burned to the ground. has declared a state of emergency with nearly 3 million people without power on sunday. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. david: president trump says the islamic state leader is dead after u.s. special forces raid in northern syria. abu bakr al-baghdadi was the highest ranking terrorist leader killed or captured since osama bin laden in 2011. jodi snyder is here with us to talk through the i

it is also important to note that sources from the chinese ministry of commerce are telling fox business, or at least are talking up this idea of an interim deal but again, as i have always reminded you, neil, at the end of the day any sort of deal would have to go through president trump and president xi. we heard the president talk up a need for a long-term deal. that is sort of the lay of the land as the talks begin. i also asked kudlow, neil, by the way about another story we've been following over the last 10 days or so, this idea of the administration looking into cushing investment flows into china, and potentially delisting chinese stocks here in the u.s.? kudlow seemed to push away the idea of delisting stocks. instead talked about the need for transparency. here was his response when i asked him about all of that this morning. watch. >> the delisting is not on the table. i don't know where that came problem. what we're looking is for investor protections, u.s. investor protections. you're quite right, transparency and compliance with a number of laws. there have been complaint

the china ministry of commerce said they made progress in talks.be overly optimistic. joining romainee and i from london is -- romaine and i from london, george george. so great to see -- george george. so great to see you -- george magnus. so great to see you. what's your word for a deal? >> i think the chinese for quite some time, actually may, when the infamous presidential tweet basically caused the trade discussions to basically kind of rupture, ever since then, if not before, the chinese have an interest in spinning these negotiations fourth quite a long time. i think their view is that the longer it's spun out, the greater the likelihood is that president trump will make concessions, will almost do anything really for a deal before the presidential election. i think this is basically the last chance for any such -- any kind of agreement. it's going to be small, if it is an agreement that can be signed, it's going to be small, limited and there won't be any phase two or phase three. this is basically it, i think. i think the chinese know it.

and i spoke he just told me talks are going very smoothly in fact look at comments, from the ministry of commercel happen ever day with this administration tomorrow actually we spp a phone call with liu he directly larry kudlow secretary mnuchin rest of the team mr. lighthizer included. >> you as you bottom line bottom line report chinese officials casting doubting on possibility of lrm a deal with united states talk become dealing with president trump, what do you think about that? well, look. they have the right to do so but we are about cautiously optimistic at the white house, everyone as you full splay president called press into oval office we talked securing final language of historic phase one, part of the trade deal with china up to 50 to 60 billion dollars in ag purchases i mean these types of negotiations are obviously, critical, for the futures of our both countries the president wants china to succeed he wants america to succeed, but not going to risk american farmer american rancher businesses to get a deal that doesn't do anything to prop up this country as well. for to a long coun

the key question, isn't it, is whether or not this was a coordinated attempt by the ministry, the department of commerce in the u.s., with those leading the trade negotiations or whether this was a separate action, and that the -- a key question for the tiny side is whether they start to interpret this again as a broader push by the u.s. simply to check china's rise that it is far more than just trying to level the balance, butte the trade, the balance -- be it the trade. that is a concern from hawks in beijing. this move by the u.s. may feed into that perception. in terms of whether or not we get any action on the deal, there have been reported by bloomberg suggesting that china was going to narrow the scope of discussions, and again, it does seem to add to the risks around these talks and whether or not they can actually achieve anything. president trump came out and said he wants to get a comprehensive deal, a 100% deal with china, and he voiced moderate optimism that he thought something could come out of these trade, but it does seem to make it much more complicated now that you have this blacklist

of the ministry. but they're not going to finish the commerce. no way. turkey's capacity to be persu e persuaded by the united states is reduced, as is that of the kurds that are moving towards the syrian regime. difficult how they can take assurances from turkey. some think this is written in stone. u.s. troops are moving fast. the announcement that they are leaving, not normally you expect. normally ature happens. there will be air assets involved in doing that. the civilians are caught between the two sides here. can turkey do a lot of the ground on the check for them in 8. and where does russia fit into this? it's moving very faction to grab parts of lapd. in the larger, more troubling question here, what of isis? donald trump accused the kurds of deliberately releasing the detainees to drag the u.s. in. perhaps isis prisoners are being to central locations to make it easier to retain them. some of the regime is moving close to some of the worborder. and the numbers of the people liberated don't match their understanding. a lot of confusion. we don't

of those rights. the chinese commerce ministry telling us they don't want to change their laws, they believe they can inistrative regulations. the president saying china needs a deal. >> we are so far down in terms of where we started from presidents that didn't do their job for many years, since the world trade oranization founding, china went in 2001 or so, they went in and ripped off the world. so i told that to president xi. i said this can't be like a 50/50 deal. >> reporter: the heads of the trade teams are expected to meet later on today and again on friday. the last time they met face-to-face like this, some 10 weeks ago. we will be watching to see if u.s. trade representative is smiling or not, also if 13 is a lucky number. important to remember that on october 15th the tariffs go up to 35% on $250 billion worth of chinese imports. lauren: the trump administration may be ready to lift some restrictions on u.s. sales to huawei. the new york times reporting that president trump will allow some u.s. firms to sell nonsensitive products to huawei. the move is seen as a goodwill gesture after washi

of domestic affairs. at the regular press briefing the foreign minutesy criticized th commerce department for wlak lifting entities o the ground of violates the rights of the uyghurs. the ministryted it c cld retaliat saying beijing would take firm and rest lose measures to protect sovereignty. many companiespa like hype visi oppose t ban blocking critical components. the u.s. decision will complicate talks for later this woke. the commerce ministry confirmed the vice premiere will be in washington for high-level discussions thursday and fetus with his u.s. counterparents. the trade secretary and treasury secretary. the prospect for deal appearim after subsidies taken off the table. analysts are skeptical about a major deal this week and some the two sides might only ree to meet again in chile and apex summit in november. for nightly business are the where the eunice yuan beigen just as talks between u.s. and chf are recognition so are discussions between the united kingdom and european krrnts parts on kbreks it. the uk prime minister wants to leech the up union with or would you a deal. villa marks in luxembourg tonight. ♪ >> reporter: it was a phone conversation that cascaasd

trade related issues versus national security, versus human rights concerns, and of course, on paper, the u.s. commerce ministryay the move against the tech companies accused of human rights, that is not linked to the trade war. it is portrayed as a national security issue. it is hard to know if they are all separated or part of the mix. trumpt comes to president and his ability to cut a deal, there is the potential to give and take on certain issues. most of the focus is really on whether or not there could be progress on the merchandise side of things and maybe progress on the market access or opening of china's economy for foreign competition. none of those are going to resolve it this week for anytime soon. paul: the chief asia economic correspondent, thanks for joining us. the u.s. commerce editor there -- u.s. commerce secretary will be speaking in sydney later on thursday. we will bring you that speech live on bloomberg. president trump is embroiled in a new controversy. sources are saying he press the former secretary of state, rex tillerson, to intervene in the justice department criminal case. he want

of a fed rate cut to 87%. cheryl: the commerce ministry in china releasing comments within the last hour, that news breaking, thatt talks are on track between the u.s. and china following mr. mnuchin's comments yesterday on that topic. no change for shanghai, the hang seng did have a 0.47% gain. lauren: a last ditch brexit deal is in limbo as european leaders start a key meeting. mixed performance in the european markets. cheryl: we learned that congressman elijah cummings of baltimore has died. he had a medical procedure that he had said would only keep him away from about a week from his congressional duties. the democratic house oversight and reform committee chair a key figure in the impeachment inquiry into president trump. again, congressman elijah cummings, just 68 years old, the breaking news, he has died overnight. well, president trump has clashed with top democrats at the white house over his decision to pull u.s. troops from northern syria. house speaker nancy pelosi and senate minority leader chuck schumer walked out of the meeting, claiming the president had a, quote, meltdown. lauren: their meeting

reporter: spokesperson for china's commerce ministry saying they are moving forward well, saying quote, the economic and trade teams ofhina and the united states maintained close communication and consultation work is progressing smoothly. the two sides will continue to promote consultations and other work as originally planned. you alluded, charles, what the market took notice of this morning which is that bloomberg report which led to retreat in the markets. that report cites chinese officials saying that they aren't necessarily sure the entirety of this trade deal, phase one, phase two, could come together. they cite past actions from the president, that is how he has in the past sometimes backed out of deals. then of course there are the structural issues in phase two that are the more complex challenges. charles. charles: blake, thank you very much. manufacturing data missed by a country mile in chicago. the biggest miss in 39 years. wall street was looking for 48 which i thought was a high number. still contraction. let's start with china first. these sort of reports, i remember the reports were coming out ahead

of chinese companies trading in the u.s that helped early on, about 10:30. and about 1:30 eastern time, we had a fox news report that the chinese commerce ministry was ready to do a deal on the parts of negotiation both sides could agree upon but then we just sort of lost steam. and there wasn't any real headlines on that. the conviction on the china trade just is not very strong right now. it hasn't been for a while china stocks did rally mid-day and fell back. if you want to look at the mchi, this is a broad china etf. same situation, it just fell back, rallied initially. and semiconductors, they went positive midday, but they, too, have faell back into negative territory for the most part except for materials courtney, back to you. >> thanks, bob we'll check in with you later. turning now to the china trade deal or potential deal or maybe no deal. who knows? as deputy-level negotiations kick off ahead of higher-level talks later this week, kayla tausche has the latest from washington hi, kayla. >> good morning. they're meeting behind closed doors, but both washington and beijing choosing to message through the media as these critical talks get underway in

that the chinese commerce ministry told us china is red to come to the table and talk about and finish, conclude those areas that both sides agree on and then work out a timetable for some ofhe tougher, more difficult areas to be dealt with later next year. now the white house, you heard there larry kudlow signaling to see what they come to the table with but possibly open to that idea. i can tell you the chinese commerce ministry telling us they are not going to put on the table changes to their laws related to protecting intellectual property but the chinese commerce ministry is also telling us on that front, administrative regulation cost also handle any intellectual property theft that needs to come up. so again the chinese signaling they can tackle some of these issues without some things that u.s. needs moving forward. we'll have to see if the white house accepts what is going on because the real key would be on thursday and friday. thursday, starts the primary level meetings so this is the deputy level where they have made the suggestion now that they are willing to do this. on thursday and friday we'll see if the u.s. will accept what they're saying. back to you. c

commerce yesterday was forceful saying they wanted to remind everyone that china wants all of the additional tariffs lifted. made a point that the ministry wouldn't commit to a $50 million purchase target, which as you know has been touted by the white house. >> that is the macropicture. there are a lot of factors there. reports are out that tim cook, the apple ceo traveled to china with regulators there. a bit of controversy about one of the apps apple put out and what they did with that given the current protests >> exactly that app was being used by protesters to track the movement of the police. once the state media had criticized it, apple removed that from the store. tim cook is in china and features on state tv where he was seen at a university board meeting with the vice president. he is a board member of the university, which is a very prestigious school here. he met with a market regulator saying the two had discussed expanding investment business in china and consumer rights protection in china. >> a fairly comprehensive situation there. back to our stop story now joining me now from hong kong is julia wang, thank you for join

of the trade talks as a deal rather as substantial progress. so, we managed to speak to an adviser, a former advise to the commerce ministry and he said that thenese are feeling pretty good that there's progress made because the u.s. decided not to impose the tariff, which was supposed to kick in tomorrow, raising 25% to 30% on $250 billion worth of goods, that has been put on hold, which has been a key demand of the chinese. also he said that the structure of the deal now is going to be coming in phases, which is something else that the chinese had wanted to see especially with the idea that some of the tougher thornier issues involving the structure of the economy coming towards the end finally, the discussion about this embattled chinese tech giant huawei is now going to be done separately and that is something thaels the chinese had wanted to see. in terms of purchases, the government here is expected to encourage chinese companies to make bigger purchases, possibly as much as $50 billion, but what's interesting today was that the state media has made almost no mention at all about this pledge from china there was one comment from an influ

of changing the laws to do that. the chinese saying they will not change their laws to protect intellectual property. what they will do, according to the commerce ministry use administrative regulations which the chinese say is just as good as changing the law to protect intellectual property and other enforcement in this agreement. the president has said in the past week that he wanted to have a -- he prefers to have a complete deal but his white house economic adviser larry kudlow saying this. listen just a little while ago. listen to this. >> let's see what they bring. i will add to this, we are open to a number of ideas. some may be short-term, some may be long-term. it's essential that the structural issues we've talked about, you know, for two years since i've been around, the i.p. theft, the forced transfers of technology, the cyberspace hacking, the espionage, the trade tariffs, the non-tariff barriers, that stuff's got to get solved. reporter: he wants to see what the chinese put on the table related to this. now, the primary level talks happen on thursday and friday here in washington, d.c. those are primary level talks. the last time the depu

having here and one in particular with the former adviser to the commerce ministry, the feeling has been that china actually came out ofhose conversations very well, that there was a lot of progress made, that the u.s. decided to put on hold the tariff that was supposed to kick in tomorrow and the deal is now going to be in phases, which the chinese have wanted and also in the past have used as a delaying tactitactic that's been one of the criticisms by the trump administration by previous administrations. another point that was made quite a bit is the discussioning over huawei are now put on a separate tract that is something that the chinese also wanted to have to discuss some of the national security issues separate from a trade deal so, what is china doing? they said they're going to be buying up to $50 billion worth of agricultural products from the u.s. again what's interesting is the state media has barely mentioned this pledge. there was one mention in a state media blog which is quite influential when it comes to trade talks that people watch it because they think it's somebody who travels with the vice premie

of what you want is still -- ashley: pretty good. it all seems positive. lauren: there's a phone call tomorrow between trade negotiators on both sides. that comes from china's commerce ministry we might know more tomorrow about when exactly there could be a phase one signing. stuart: bottom right-hand corner of the screen, i see futures show a 30-point loss. no immediate impact from the presidential tweet. although i do see the nasdaq -- it's dead flat, to ever so slightly lower. let's wait and see. we have a minute to go before this market opens. at that point, we will see if the new presidential tweet makes any difference to stock prices. will you just put it back on the screen, please? i think it's important and i want to see it again if you can get it. thanks. the last line, just pay attention to that last line. president x, and president trump will do signing. that is definitive. i have to believe that if the president puts that out, they are going to do the signing at some point. it will be at some point -- ashley: very positive. stuart: all right. we are approaching the opening of this market on a thursday morning. when you see clapping and cheering you know you're cl

that the foreign ministry today gave a hint in a statement it said about a completely different subject that is the u.s. commerce department's decision to expand the black list for some of firms because of the muslim population in the far west china said the u.s. should stop interfering in chinese affairs they want the trump administration and the u.s. more broadly to butt out of their business >> adam silver has made some is comments you mentioned he is in asia. he said first of all, we'd like those connected to the nba to be sensitive to those he said he's upset we've upset fans but not apologizing for his general manager exercising freedom of expression. in china, they have i believe double the number of fans in terms of people in the the united states. walking a fine line with some of these comments >> that's right. it is a fine line they have to walk chinese companies as well. right after tencent made that announcement they'd cut ties, there was a lot of discussion on line here about how they inked a h huge deal to get the rights to air nba games. the comment you could see the most is that tencent decided to choose life instead of money that was kind of a hint. if

of the wants by the u.s. is not on the table and that is changes to chinese law. the commerce ministrythat china will not change their laws to protect intellectual property but saying they will do that through administrative regulations to hand he del any sort of intellectual property protection. the president said last week he prefers a complete deal. righyesterday, they indicate thy could accept a partial deal. it depends. listen. >> let's see what they bring. i will add to this, we are open to a number of ideas, some may be short-term, some may be long-term. it's a essential that the structural issues we talked about for two years, since i've been around, the ip theft, the forced transfers of technology, the cyberspace hacking, the espionage, the trade tariffs and the nontariff barriers, that stuff's got to get solved. >> they want to keep their people working. i understand that very well. but i think that we just have to see what happens. i would much prefer a big deal and i think that's what we're shooting for. can something happen? i guess, who knows. >> reporter: this marks the