nero was mentioning comments we saw from the pboc governor.tedly saying risks can be contained. you have hong kong's market higher for the first time in seven sessions. a little bit of a fall back in indian stocks. you what that looks like in terms of volume. since we saw tax cuts announced in the session on friday, i've got a chart showing you how much we have seen in indian markets. on the nipsey, we saw on friday a record amount of stocks going through in terms of volumes. the second largest on record monday. when you put that into bloomberg data, it was more than 2.2 billion shares changing hands during monday and friday's session, eight times the average today volume we normally see for indian stocks going all the way back to the year 2000, which is not on that chart. nejra.he year 2000, nejra: breaking news from total. it is to accelerate its dividend growth. you are looking at that to rise 5% to 6% per year. it has proposed a third quarter interim dividend of sta euro per share. it is reaffirming its discipline on cost. byash increase o

he saw the pboc cutting the rrr rate, and some say it is enough to suggest that the pboc will continueand when it is needed. export numbers were pretty weak .2%, csi upks up by , the hang seng pretty much flat. saw hong kong go to aa, expecting no gdp growth. there afterre still carrie lam formally withdrew that bill, taking a look at where we are in terms of commodities. focus, there has been a change in terms of the energy minister in saudi arabia stop he has been replaced by a prince because of the sliding oil prices. atdi arabia needs them to be 85 to balance the budget whether or not the prince can get prices up. .5%,futures up by about some say the next stop is at 1600, although given where we are in terms of the stock market that could put a lid on gold prices. the u.s. dollar pretty much unchanged at this point in time. atlet's have a quick look what's going on with the indian trading day. fromve some positivity friday. up in the nifty toward the end of last week, just about ending up in positive terrain. rupee, a very brief look, a slight bit of strength for the market. let's

and china shrugs after the pboc tweaks the prime rate. taking center stage as larry kudlow sees a softening move, but another advisor says the president could escalate the situation. sterling jumps after jean-claude juncker says that he thinks a brexit deal could be reached by october 30 fourth -- october 31. ♪ matt: good morning from a very busy berlin. we have a office full of reporters who have been here all night long, like the lionel richie song, because the german climate cabinet has been meeting since yesterday and has not been able to come to a decision on the possibility of a carbon tax or extension of the cap and trade system, and has not come to a conclusion about what environmental -- kinds of environmental package that could be in the tens of billions of euros ity wants to present. nejra: it will be interesting to see what that includes, and if angela merkel disappoints. she was criticized when she was environmental minister. it is the number one concern of german voters, and as far as what we could get, there are questions o

do you expect that pboc stimulus to keep coming?e good outcomes from the trade talks, that does not mean that is not there. denominated to ease much. >> is this one of the reasons growthur outlook for gdp is a bit more optimistic than many? there are predictions gdp growth in china might slump to five and a half percent. do you feel that is a cup half-empty? mo: i think there is truly a risk for the current forecast. how much further is it going to ease to stabilize the current economy? we are seeing for 2020, china will be the stabilizer not the d stabilizer. gtv chart i have on my terminal right now is showing bloomberg estimates of chinese averagethat it will around 6% below -- up below that 6% level. if we get a trade deal with the u.s. tomorrow, how much of the damage that has already been done can be reversed this year? see for the you past one and a half year, china has already passed this test. the economy is stabilizing around the current level around 6% or even slightly higher. currentugh for the trade negotiation being po

the pboc has many tools it can still use.hink overall it is providing a little bit of positive sentiment -- it is a very flat range but it is starting on a positive note. positivitythat coming from what we've seen in china, the rrr cuts in looser amountsreducing the that people hold and increasing the amount they can lend. which asset will that benefit? i know this is our question of the day on the markets live blog -- base metals are continuing to fall. hasne of my colleagues commented that metals will continue to stay soggy -- it doesn't matter that they are getting extra interest rates, the outlook will continue to weigh on the factor in the supply side isn't helping. overall metals will stay soggy. there's a chance that we see chinese equities outperform over the last period, and there's a chance for that to continue. chineseally think equities will fall less far. it will really help domestically. one of the big themes we are seeing in recent weeks, the china economics team put out a great piece showing how a lot of the c

investors have been particularly keen on tech stocks amid optimism of further easing from the pboc and a trade deal between china and the u.s. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. paul: thank you very much. we have had some ongoing debate in the house of commons in westminster today on the future of brexit, but more presently boris johnson's latest efforts to force a snap election. seems like that debate is going to be in vain, however. boris johnson saying he will not seek an extension to brexit. however, a bill has been passed ruling out a no deal brexit on october 31. the opposition leader jeremy corbyn saying the government has no mandate to leave without a deal. let's get the latest from london with our u.k. government editor tim ross. tim, with this debate going on in parliament at the moment, boris johnson is very unlikely to get the majority he needs to force a snap all. so is this just more brexit theater? tim: it looks like, as you say

that is because the pboc costs for them for funding is still unchanged. week, especially with the recent rrr cuts. why is this important? there is also increasing data of the slowing economy. we have seen a lot of data and recent weeks that shows august was really a slow month for china's economy. and even though the since hasn't donehe pboc much more than tweak some of its policies. it hasn't embarked on that strong stimulus that the market had been expecting. and this week itself, we saw the pboc skip a chance to lower medium-term loans. it also kept money market rates unchanged, even after they fed cut rates thursday. the markets had been expecting more, and a signed they would be easing monetary conditions going forward, and the lpr, even though it is not a policy rate, is assigned we could be seeing easing conditions. paul: thanks for joining us from shanghai. let's get a preview of what to watch later this morning. pboc is expected to lower the loan prime rate after the bondff this week, rally styling and tenure trading in the narrowest range in sev

seemed pretty clear that the pboc doesn't want to see dramatic rate cuts or qe.ggests there isn't significant support from the central bank in china. is that your reading of it? what are the locations? katrina: that's exact they write . far -- that'so exactly right. we're seeing so far the government piece mailing measures. they aren't going hard on trying to reinvigorate the economy. they are just trying to stabilize growth and that is the path going forward, as well. there is no strong rebound in our forecast. we are seeing slower gdp growth right through this year next year. along with the structural slow down, they are not trying to arrest the cyclical slowdown that is being experienced, as well. rishaad: just want to pivot to where you are, australia. what about mr. lowe's options? --haad: we're expecting the katrina: we're expecting the bank of australia is going to deliver a 20 point basis cut and it's been quite a swift evolution for the rba. last year, it still looked like it was going to be rate hikes and now we are firmly on the easing path. it's not s

pboc.the it set its one-year reference rate from bank loans at 4.2% in september, as opposed to 4.5 percent in august, not enough for analysts, who are calling for stronger action. joining us is christian, the question is what happens with trade concerns. we saw positive news from larry kudlow, but actually, we have had this in the past and then they went back on it. whether if something turns ugly in the trade war, whether china and the pboc have a good handle on their economy. enoughink china has power, why use everything right now? they can look at the economy, how it is developing, look at trade in tariffs, and if there's something happening -- by the way, i don't expect a quick solution. think of the november 2010 elections in the u.s., so they need some firepower left. five basis points is a signal but it is not much. cuts.an do further rrr so they will look at the economy as well. so there is no urgency right now for the pboc to act. francine these so you are not worried because it i

allowing pboc to do so much. when does that change?ing the pain of a rate differential and feeling the need to cut rates a bit. this is going to have implications for currencies. we have seen the rmb slide, in part reaction to the trade policy front. that is a trend that will continue. tom: we talk about an aerospace guy, smooth functions. are we seeing the dynamics that are smooth functions or is it every banker, every nation, every corporate officer for themselves? carl: it is devolving into the latter. we having a -- we are having a slowing growth environment. china will have the slowest environment in 30 years. the u.s. is slowing. manufacturing ism dipped below 50, signaling things are slowing. every time an economy moves at a slower speed, it is more susceptible to exogenous shocks. tom: this is really important. i know mathew lose eddie can -- speak everyonly month or so, but what is the dynamic of the american economy between this odd service sector? what is the dynamic? peter: it could be on a tipping point. we are looking at

iva chart here of various tools that the pboc has at its disposal.see more easing or similar coming echo >> from a forecast but if ui think there should and will be more easing, given -- forecast since maye rapidly when the small bank deleveraging oferts stepped up and some the reglet tory fine tuning started to kick in on the credit market as well. cuts should be more rr before the end of the year in order to support or mitigate the downward pressure on the credit cycle. to your point on the lpr, , these in remote locations pboc including when they publish the reform rr last month, they have specified that taiwanese to guide the finding cost lower. those market as well as us expect the high probability of, left cuts which is the base rate for lpr before such, 20th. the timeline to actually pay attention to is mlf issuance today and next tuesday, as well as the fed rates decision temer 19th, and whether pboc will do something about interest rates in these time windows. economist andior managing director. still more to come on daybreak asia. this is b

that is amid optimism of further easing from the pboc and a trade deal between china and the u.s..news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. kathleen: now we want to get more on the market action. we are heading back to sophie. sophie: we are keeping an eye on bonds. kiwi notes this morning, tracking the overnight drop we saw. treasury yields rise to a two-week high. trading futures under pressure early in the asia shush and -- session. switching out the board to check in on what is happening on the terminal. with bonds under pressure, that is putting a dent in the global pile of negative yielding debt. last week, that amount fell by $1.2 trillion, the biggest drop since bloomberg started compiling this data. mood,he up beat market expectation firms to keep up the dollar bond sales we have seen. this after the best ever start to september. fell week, asian companies $8.5 billion worth. the average spread on investment grade paper is keeping steady at nine basis poi

the pboc is going to cut the amount of cash banks must hold in reserve to the lowest number since 2007 a move that will release $126 billion worth of liquidity. an unexpected contraction in china's trade in august underscored, what economists were already saying about stimulus efforts. still not enough to put a floor under the economy. exports decreased from a year earlier. sales to the u.s. tumbling amid escalating trade wars between the two nations. today we are asking the emily question. which -- mliv question. you can join the debate. we are all involved. pitch in as you which -- as you wish. benjamin, good to have you with matt and i. here we go. we have china on a roll. do you expect more rrr or more of a move on the lending rate? where's the next lever going to come from? thisina is going to keep -- keep his hand on easing. you have to be careful about the way they do it. they are still keeping this , making deleveraging sure deleveraging of the system is not getting out of control. cuts over the weekend widely expected. i don't think it's the last one. i think there are going t

is anybody paying attention to what the pboc said? the market is focused on the data. that is where the yuan is a little bit weaker. do you like the glasses? nejra: they look cool. very millennial indeed. what's not looking so cool is equities in august. it was a volatile month. the msci asia pacific index is down 0.3%. trend a littlehe bit. .owing to keep liquidity ample we come off the lows, but the s&p futures are pointing lower. u.s. markets are closed today for labor day. happy labor day if you are watching in the u.s. the euro is holding five days of losses. in the latest escalation, the u.s. slapped tariffs on roughly $110 billion of chinese imports ranging from footwear and textiles andme certain technology products like the apple watch. beijing's retaliatory tariffs effect. pres. trump: the meeting is still on. that hasn't changed. we will see what happens. china to take $500 billion a year out of our country. that.'t do nejra: a little bit of a torrid august for equities. are you tempted to add to risk at all given the uncertainty? >> not at all. it's not onl

chinese stocks shrugged after the pboc tweak to the country's loan rate. futures point lower ahead of european cash trade, less than 30 minutes away. anna: rbs gets a new boss. alison rose will take over as ceo from november 1, becoming the first female head of one of the u.k.'s top lenders. sterling on the up. the pound jumps after jean-claude juncker says a brexit deal can be reached. the fed's funding problem. -- as callsbank mount for a permanent fix. good morning, matt. matt: let's take a look first off at the 10 year yield coming down a little bit, but still a 1.76%. a lot of choppy trading over the last couple days in this week of huge central-bank announcements. it has left us pretty close to where we started. 1.8%. we did spike to 1.9. at least we are below that. take a look at the equity indexes here this morning. i wonder how the pound moves are going to affect the ftse trading this morning. dax and cac futures are down 0.1%. ftse futures down two thirds of 1% as the pound jumps up against not only the dollar, but the euro as well. what else do

the pboc has been stepping up some monetary support.stimulus expected to be very moderate. the pboc is trying to prioritize stabilization and avoid any run-up in financial risk. haslinda: we hear the trump administration may restrict fund flows to mainland markets. what has been the response? selina: there has not been any official response from beijing so far but over the weekend, we did get a statement from china's very powerful and important financial regulatory body saying that china wants to continue its path of financial opening and wants to encourage foreign investment in china. china has made significant reforms in the financial sector over the past few years, including scrapping some ownership limits on securities, mutual funds, and insurance companies. regulators have opened the door to full-blown acquisitions. ubs, jp morgan all receive approval for full control of their local joint ventures. china has made moves to make it easier for foreign investments and china's local stock. despite this escalating rhetoric and the trade

pboc is trying to get some stability.at when the offshore yuan got close to 720 last week, that was like an alarm bell going off for the pboc. too much of a movement. so they're trying to reduce the volatility again. all things point to the fact that they would be very happy to see a narrow trading range right through this month. going into the national day holidays. stability in that you want would be very helpful for them. -- stability in the yuan would be helpful for them. i doubt there be anything from china to encourage speculation against that yuan at this stage. going forward, if trade talks do not work out, downside pressure for the yuan would come back. its inevitable if the chinese economy is going to weaken further, there will be an offsetting factor from the yuan. but that is something for weeks and months ahead. right now, it will be a steady as she goes policy. and probably today's fixing will just reinforce that they do not want much volatility for now. shery: mike, how are you taking the latest news from c

mnuchin said the chinese team agreeing to come to washington is a sign of good faith and the pboc governor may part of the group. will trump: hopefully, it all work out. we will see. we will be talking next week. we are talking now. they will be coming to the united states in two weeks or three weeks and we will see what happens. unless we are going to make a good or fair deal for our country, let's face it. you cannot go back to a situation where we are giving hundreds of billions of dollars , where that become standard fare. not going to happen. we cannot do it. su: the newspaper of the chinese communist party is taking aim at one of washington's most hawks, saying comments from peter navarro are "unconstructive lies." the presidential advisor repeated accusations of what he devon sins,s savvy including cyberattacks, forced yuantransfer, and manipulation. they say such comments are preposterous. it may not be as bleak as it seems in singapore. anecdotal evidence suggests jvp will recover in this third in aer after shrinking previous period. that is the view of economists. it would mean t

a top chinese bank executive explains how the pboc's plans to fix rates will foster growth.ia's trade minister and new zealand finance minister. another official keeping an eye on brexit, the e.u. trade commissioner who would like to make a deal with the u.k., but the leadership is not making it easy. >> there is an agreement. andbasis is if mr. johnson the british government want to change that, he has to come up with proposals. kailey: this is bloomberg. ♪ we call it the mother standard of care. it's something we take personally, and believe in passionately. it's the idea that if our mothers were diagnosed with cancer, how would we want them to be treated? that's exactly how we care for you. with answers and actions. to hear your concerns, quiet your fears, lift your spirits. with teams of cancer experts and specialists, delivering advanced treatment options and compassionate support every step of the way. all here in one place, with one purpose. to fight your cancer, together. that's the mother standard of care. this is how we inspire hope. this is how we heal. cancer tre

for both the minister of finance in the pboc. now it is a matter of whether they will want to use it. if you think about what the pboc will need to do, they are actually looking through the energy price changes and also full place -- price inflation. with core gpi inflation, it is actually down to 1.5% in august so it wasn't too bad. but i have to say that what i worry about is the fact that policymakers are actually hesitating at the moment because of the potential implications on the long-term impact. on leverage and everything else. they are really behind the curve. they need to pick up the pace. rishaad: where do we go from here? this also feeds in higher oil remain aould they knee-jerk reaction. there is an oil glut at the moment. thing onee last needs, especially for corporate china. helen: this is very undesirable. clearly policymakers are ready to probably get all kinds of contingency plans set up at the moment. we also saw the rrr cots being delivered actually this monday. but the problem is whether that is enough to get

it is interesting that pboc fixing today. four pips higher for dollar yuan than friday even though we supposedly heard soothing comments over the weekend on where the u.s. and china are heading. as far as the pboc is concerned obviously nothing has changed. you can see the offshore yuan is slightly weaker than towards the end of the day friday. it is an indication that for now nobody really see is any sustained strength in the yuan. if you look at the volatility curves, there is nothing to indicate traders are suddenly bullish on the yuan because china visited a few farms in the u.s. they want to see more than that. obviously they are pretty worried that donald trump does not want to do a partial trade deal. when you put all the pieces together, when you look at it from the point of view of yuan traders, they certainly still feel there could be more bad news to come. certainly a lot of hard work before they get tangible positives to make them want to get bullish on the yuan. for the time being the story is pretty much the sam

a top chinese bank executive explains how the pboc's plans to fix rates will foster growth.s, exclusive interviews with australia's trade minister and new zealand's finance minister. another official keeping an eye on brexit, the e.u. trade commissioner says she would like to make a deal with the u.k., but the leadership is not making it easy. >> there is an agreement. the basis is if mr. johnson and the british government want to change that, he has to come up with proposals. kailey: this is bloomberg. ♪ eÑ kailey: welcome back to "bloomberg best." i am kailey leinz. last month, the people's bank of china unveiled a major reform to its system of benchmark interest rates. a low prime rate each month hopes to encourage investment and fostering growth. the ceo told bloomberg exclusively why he thinks the new policy makes sense. >> you look at the lpi, it is almost like the equivalent of primary loan, and when they announced that and forced everyone to apply for this rate, when you look at the first day of the fixing, it was down at 4.2%. at that time, the medium lending was pr

because of that insanity, frankly, the pboc started with derisking the interbank market and from 2017 to 2018 because all of those financial structures weren't really financing real economic growth, unwinding them didn't really have an impact on real economic growth either, but that started to have an impact on growth starting in mid-2018, so now the financial regulators are in a situation where they're trying to deal with basically the effects of the derisking campaign. they call it the risks of addressing risks, and so the derisking campaign has slowed growth at a time when you're trying to slow growth of financial assets, and what that does is basically it's the tide going out, we're seeing who's swimming naked, right? bow sham bank was definitely swimming naked, hung fung bank, those are the three that have really blown up. and there is an effort to try to push these banks to price risk more on a market driven basis. this is, you know, just annuity past few weeks pboc has int introduced a new monetary policy mechanism called the lone prime ra loan prime rate so they can build an i

the pboc has a lot of firepower left.hey start acting more strongly if we see the tensions continue with the u.s.? david: i think a good assumption is they will be continuing tension with the u.s. the pboc has to. now they have to deal with it in a different context. the context is their internal credit and banking system. we don't know that much about it. we know what we observe and what we can glean from analysts. that is an issue for china internally for resolved. it goes to the very serious question. when we spent decades in a world of globalization and integration , and we have a decline in tariffs and protectionism, and we have a pretty much peaceful world. hotspots but a peaceful world. we now reverse this whole package. how does the package look like tomorrow? it looks like geographical regions. north america becomes mexico, the u.s. and canada. centric focala point in asia. europe, another one. maybe south america gets its own version. we have these geographical spheres. our whole notion of globalization and inte

and it is expected the pboc will follow. this is what happened in january.hey also called for the issuance of special bonds to be used by local government to boost infrastructure spending. many economists are expecting this cut to come as early as this month. it doesn't come as a surprise given the pressures facing the economy. we had many economists lower your forecast for chinese gdp growth to below 6%. there is a lot of headwinds facing the chinese economy. and we heard from the state council themselves the external pressure is placing enough downward pressure on the economy that the reserve ratio is necessary. tom: there is breaking news, widely anticipated. byna moves the reserve ratio 50 basis points. is someso important hi banks will see a full percentage point. >> this is about the ongoing slowdown of the chinese economy, ongoing headwinds from the trade war with the u.s., but the ongoing concerns the government has about what would happen if it let loose with stimulus, it cut main interest rates or flooded the economy with liquidity. it is still fra

at noon today, we will hear from the pboc governor and other officials for an update on the mainlandconomy. carrie lam's usual meaty appearance this tuesday is likely to be overshadowed by trade developments counsel slashing its forecast, making for the worst year since 2009 for shipments. paul: let's check in on the first word news now. ritika: thanks. asked stevenmp has mnuchin to explain why the u.s. planned a tour. the visits for montana and nebraska were called off on friday, causing marcus to tumble amid fear. trade talks have stumbled. mnuchin said the timing did not talk so the tour was halted. president trump asked why, indicating he was not happy. the trade deal that president trump says he has agreed with japan may be in trouble. sources close to the talks have told the new york times and washington post that tokyo remains concerned the president may impose tariffs on vehicle shifted to the u.s. officials say they must be allowed to abandon the deal if that happens. the issue was the last major obstacle for trade agreement and the white house has wanted it signed during th

the pboc been reluctant to follow the eu more aggressively?e economic fundamentals continue to weaken, so there is that case to aggressively address that with more monetary policy of stimulus and easing, but on the flipside, there is a great concern amongst policymakers at the central bank and beyond that there is a risk of inflating a property bubble and also that they will undo the work they did primarily and 2018 to reduce leverage in the isancial sector, so that what seems to be holding them back from more aggressive stimulus. they did, of course, cut the rrr rate, and that really kicks in this week, so there will be a focus on how much the cuts and reserve ratios to the bank will feed into a higher loan rate from some of these letters, if indeed that does happen. the other concern is they cut to aggressively and that will really pressure banks in terms of profitability. that is the other concern for the central bank. the bloomberg economic thinks you will get a cut for the medium-term lending facility at some point in the next two weeks,

could they put you at odds with the pboc?been servicesplatforms and using cryptocurrency as a technology. we have started with the u.s. dollar. last year, we launched the new consortium and standard for issuing u.s. dollar coins. cryptocurrency versions of the u.s. dollar that are fully backed by funds held with the federal reserve in monte center banks in the u.s.. dollars the power of currency. inexpensive, secure, are party risk. we are really looking at this from the angle of, we think there's a tremendous opportunity for central money to operate as digital currency. we are building standards for that. we've created a platform with u.s. d.c. where there's already been over $1 billion of ustc issue. u.s. dollarld where coin and euro coin and other digital currency via -- versions interact with the trouble -- each other. what china is doing with their digital currency is a major step towards more global convertibility and interaction with r&b on the world stage. shery: how will that change the international monetary system?

we also had a weaker than from the pboc today in terms of the yuan reference.hat is weighing on the aussie dollar. pointingal bank today to potential future using ahead. have a look at the impact of the overall trade war particularly here on the singapore economy. we saw double-digit losses in terms of electronics exports reflected by this blue line here for the eighth month out of nine in a row. singapore exports as a whole fall for six months. but they were better than expected. a .9% drop year on year and that was the best or the slowest i guess pace in terms of a drop we have seen since february when we saw exports rise. what was interesting was that out of the 10 markets that singapore exports to, there was demand coming through from china, the only market where they saw demand increased. exports to china rising 38% for the month of august. the impact of the fall on electronics still weighing on the overall singapore economy. juliette saly in singapore, thank you so much. president trump says the u.s. and japan has reached an initial trade accord to be fin

on the subject of tariffs, one thing powell did say in response to a question about china and the pboc, he said we are not part of any trade talks, that is a government function. the fed has nothing to do with those talks. and then i'm quoting, that is not a part of the central bank. should that impact how we think about tariffs and the negotiations going forward? mike: not really. china ise's bank of not independent bank like the federal reserve and most other central banks around the world, they are acting at the direction of the communist party in china. so they are going to play a role in whatever they want to do as government policy. nothis point, they have even gotten involved in rate cutting the same way other central banks have. they are holding their fire on that, using the reserve ratio to stimulate the economy. but they don't have the spillover effects at this point ecb and others have. the fed does not get involved in analyzing for the administration anything that has to do with trade policy. he is very careful not to say publicly that this is a bad policy. but jay powell,

the more this goes on the more we will see reaction from the pboc.slippage in the renminbi. think thate do you will be on your best guesstimate? lot. we could see quite a percentagewise, quite a substantial movement. that in itself will be quite a shock. certainly we could see a big shock coming through if we did see a depreciation of renminbi. manus: we will maybe talk about the flip side. we could get a deal. at rabobank stays with the bloomberg team. >> boris johnson battling allegations of past sexual in propriety. he is denying he groped a journalist 20 years ago and says he followed the rules in is linked to a former entrepreneur. the fuhrer is overshadowing the conservative party's conference in manchester. johnson also suggested he will not resign. >> have undertaken to leave the party at a difficult time and i'm going to continue to do that. it is my response ability to do that. to get brexit done october 31, but to move the country on. >> saudi arabia's crown prince's morning war with iran could bring down the global economy. themmad bin sa

is there more upside based on the next policy round from the pboc?k chinese bonds are starting to behave a little bit like a global bond and therefore , you could ask yourself the same questions you asked about other fixed income, which is where is the economy? where is policy? the one thing that is very clear in china is that policymakers are putting in place -- i wouldn't say an enormous amount of stimulus but a relatively large amount of stimulus to the impact of the trade war. that should be net impact positive for china's income. china's credit impulses picking up but in your latest inearch note, a stabilizing china's economy is good and bad for markets. side would air on either good or bad? jim: lasting you need is china's economy going over the cliff. people were worried about that a few months ago as the trade escalation started up again. china has a lot of stimulus in the system and you are starting to see some stabilization in the numbers. my worry about stabilization of numbers is what motivation does china have to step down when it comes

pboc throws cold water on stimulus. massively, and must maintain a prudent policy stance. welcome to "bloomberg daybreak" on this tuesday, set number 24th. i'm alix steel -- this tuesday, september 24. i'm alix steel. the highlight in the last hour has to be what is happening in the u.k. a truly tremendous time for the country. that currency up by 0.1%. other than that, will we had new record highs in the s&p, and what will lead that? is the bond rally running out of steam? crude taking a leg lower just in the last hour or so.

we think the pboc has changed their fx policy after the escalations.eeing higher tariffs, weaker economic growth. we need to highlight that we don't think the pboc will conduct heavy direct market intervention in terms of fx. they will be more comfortable other tools to send signals to the market as a guidance. very different episodes if you when theow with 2016, capital outflow was significant. we do see that now, but the scale is small. we are not bearish on this pair. we're looking at a slightly weaker level than current levels. paul: one of the currencies most exposed to what is going on in china is in aussie dollar. from bankve this call of america merrill lynch. they are suggesting to buy the aussie dollar. i am wondering where you will see that going? have we hit the floor? lemon: we are bullish on the rc as well. -- aussie as well. like to long against the kiwi because of the divergence valuations between the two currencies. kiwi, thek at the dovish stance from rbnz is very strong. the governor has been talking about unconventional policy measu

that pboc usually follows through with such requests from the council.cy makers cut the triple after a similar announcement in january. pain of as easing the rough first pass. total deliveries may have risen 7% in august thanks to cheaper financing. although suv sales demand for sedans slowed. and at 93 months streak of sales gains rising a must 10% in august. singapore is to review electoral boundaries in a single general election may be on the way. there is no timeline but the process has taken up to four months in the past and normally a vote follows once the recommendations were made. the next election must be held by april 2021. it is seen for that last for the prime minister as he is down to hand over power by the time he turned 70 in 2022. the philippine president is ready to defy china. he said his country benefits from online secured -- casinos and will support the industry despite asia's call for a ban. investors dumped property stocks on concern that duterte would clamp down on the offshore gaming industry a. global news 24 hours a day on air

the pboc perhaps not coming in as strong as some expected. about perhaps also shy talking up the need for fiscal spending. the fragility when it comes to the global economy. see concretedo moves and europe toward fiscal stimulus, that would be a game changer. what european governments are relying on is monetary stimulus. if we do see concrete legislation. that would be a risk on positive sign. santander, the spanish-based lender, a big player in latin america and america, 1.5 billion euros from santander u.k., approving a tencent per-share dividend. accounting principle that describes what seems to be a permanent reduction in assets. isther or not the ppi again engulfing the company, we will dig into those details. we will get nike after the bell. one of the concerns about nike is that it will be affected by fx. sarah: if you look at the dollar's relative levels, it is very strong. if you want to see the fx earnings, especially for multinational companies like nike, you were -- you are going to see a big move in relative levels of the dollar.

china and the pboc are going to keep the currency within range. it could depreciate.t wouldn't shock me if it did, if the trade tensions escalated a little bit, but i think the vol will come down a little bit because it is going to be tamped down by the pboc. they can't let it shoot in one direction or the other. paul: i think when they let the yuan go through seven, that was their way of using one of their tactics, and we know the president. is incredibly sensitive on currencies i think the next big battle asked the president is incredibly sensitive on currencies. i think the next big battle -- the president is incredibly sensitive on currencies. i think the next big battle is europe. china used a psychological point with the trump administration. i don't think we will see tremendous depreciation from him. however, if things were to break down, we would have a big problem. are at a point now where if things break down, things are going to get super a bleak -- super ugly on every point. the market will be the ultimate recipient of that problem. at the end of the day,

how much could the pboc do with lower rates and the government with targeted spending?al policy will continue to take the lead. and combined the consolidate budget we think that we still have room for further .xpansionary fiscal policies and more accelerated fiscal spending in the second half of this year. and also we think that the credit conditions has already -] growth ish the [ compensated with normative gdp growth. we will likely have room for lowering the funding costs by the lpr reform as well as .ossibly rate cuts so this policy easing's will likely to have an impact on economy over time. that economy likely to see, yes, sure. paul: i was going to say 30 seconds a viewer question has the slow down in manufacturing affected state owned medium and small many fractures? you can be brief. -- manufacturers. war has that the trade andrmined market sentiment affected corporate profits, we think those manufacturers and smaller exporters are likely to bear the [-]. onl: plenty more to come daybreak asia. this is bloomberg. paul: welcome back. this is daybreak asia with t

the pboc usually does followthrough.olicymakers cut to triple are january after a similar announcement. the u.s. is said to have tried to bribe the captain of a suspect iranian oil tanker, offering cash to sale to a course that would him pound the vessel on behalf of washington. they say they have seen several emails from a senior official at the state department offering several million dollars to change sides. seem to have not applied to the state department and has not made any comments. dorian is edging closer to the eastern sea border of the u.s. with torrential rain and sustained wind of 170 columnar's and our the system is expected to weaken further, but it should cross north carolina's outer banks later thursday. dorian killed at least seven people in the bahamas and left much of the country under water. the financial impact is forecast at about 25 billion dollars. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica

maybe we get some pboc action later as well. check let's get a quick of the movers in japan.ket moving sideways at the moment after coming back from holiday. japanese oil stocks rallying. seeing refiners gaining more than 4%. priceon the back of crude jumping in the previous section -- session. also seeing softbank falling more than 3%. this, as we had heard that the biggest backers of the softbank group vision fund are reconsidering their commitment. we have heard about saudi arabia's public investment fund. have abu dhabi's find reconsidering their role. plenty more to come on "daybreak: asia." this is bloomberg. ♪ paul: this is "daybreak: asia." i am paul allen in sydney. shery: disruption to oil supplies may underscore the case to go carbon neutral. even as renewable energy resources are getting cheaper, much of the growth in consumption comes from fossil fuels. it's turn to sophie for what to watch as the u.s. and china remain the largest consumers of energy. sophie: for now, china is the biggest user in terms of absolute carbon emissions as it remains the largest consum

very strong fix out of the pboc. look at your cross assets. we are looking at gold giving back because of the risk asset types. also giving back, the boj, not buying as much. fourth cut in the last six weeks. that is a look across your markets. let's get to our top stories. yvonne: president trump followed his china comment saying, trade does could happen sooner than you think. addressing the general assembly on tuesday, the president insisted he would not have a bad deal. 24 hours later he implied things were moving ahead and that too two sides could reach an accord. president trump: china is way behind us and they will never catch us if we have smart leadership. we have picked up trillions of dollars and may have lost trillions of dollars. and they want to make a deal very badly, it could happen. it could happen. it could happen sooner than you think. david: these trade war developments have also seen significant discussion at the globals -- global business forum taking place in new york. good forwar's are not anyone. they are not good for t

coming toid washington is a sign of good faith and that the pboc governor may be part of the group. president trump: hopefully, it will all work out. we will see. we will be talking next week. they will be coming in two or three weeks, and we will see what happens, but unless we can make a good deal or a fair dear for our country, let's face it. -- or a fair deal for our country, let's face it. giving billions to china becoming standard fare, we are not going to do it. japan, aconomy in survey suggests sentiment is the gloomiest in years. japan, aonomy in survey suggests sentiment is the gloomiest in years. thee is concern about looming sales tax increase. of current view conditions, while respondents are much more pessimistic about the future. day, onews, 24 hours a air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. ♪ rishaad: still ahead, we discuss what manufacturers can do to rev up sales. to correct ourselves, it was not a unanimous vote. surging towards $17 trillion. previously, a negat

. >> i expect the governor of the pboc to come over for these talks. conversation we will be having with them around currency and currency manipulation. mnuchin told foxbusiness president trump is willing to continue with tariffs if there is no deal. he says he sees no signs of u.s. recession. the trump administration once the uae to tighten screws on iran. a top official is in the emirates to meet with banks. the u.s. is seeking to ratchet up sanctions against the iranian government. iran says it will not negotiate unless sanctions are lifted. in the bahamas, the death toll for hurricane dorian has risen to 44. thousands of people are believed to have lost their homes and desperate survivors fleeing the worst hit areas of the bahamas for other parts of the island chain. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am courtney donohoe. this is bloomberg. vonnie: thank you. time for our stock of the hour. at&t. shares higher on the news that elliott management is t

the pboc is lowering the required ratio by .5%.will release 126 billion dollars of liquidity. hurricane dorian has made landfall in north carolina's outer banks. dorian has been downgraded to a category 1 storm with winds up to 90 miles an hour. the hurricane is expected to get weaker as it moves up the east coast. the mastermind of what prosecutors call the largest hedge fund insider trading rings in history is out of prison. he was freed after eight years behind bars, two years early. he is mostly confined to his manhattan apartment for the remainder of his sentence. he was convicted on a seven-year plot to change down -- global news -- global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am kailey leinz. this is bloomberg. vonnie: thank you good time for the stop of the hour. we are looking at french aerospace giant saffron. shares rising for a third straight day. emma chandra is in london with details. emma: up around 10% over the past three days,

tom: we have had a bit. 15 straight days where the fixing by the pboc has been stronger than tradersd. you do have, according to the likes of commerzbank, suggestions or belief in the market that the currency is starting to stabilize in terms of where it is heading. depreciation is likely to continue according to most economists but it will be gradual. we have news from the south china morning post suggesting china is prepared to offer to buy more agricultural products from the u.s. when they go to that meeting in washington if the u.s. agrees to soften some curves around huawei and maybe hold it back on some additional tariffs. it seems to be that there is some momentum in the trade talks. that has proven positive for the currency. the fixing helps, 15 straight days of stronger-than-expected fixing. shery: tom mackenzie, thank you for that. also thanks to adam haigh. coming up next, more on commodities, traders and analysts expecting a new picture of agricultural forecast this week. why some are bracing for the worst. this is bloomberg. ♪ paul: i'm paul allen in sydney. shery: i'm s

china's vice premier along with the central governor from the pboc, also the commerce minister, wille heading over with the teams from washington to sit down with lighthizer and mnuchin. we know up until that point, , the we get a date deputies for both sides will be setting up talks because they say they want to make meaningful progress during this next round of negotiations. it comes at an interesting time. we had tariffs ratcheted up on september 1. we got the threat of additional tariffs on october 1. i think those have to be put into question now. it will be hard to see or some would say it would be surprising if china agreed to these talks if those additional tariffs from trump are going to be put in place. then you have the december 15 tariffs which would effectively hit all of china's exports to the u.s. and also the u.s. consumer according to many economists. that is the context in which these talks look set to take place. in the u.s., there's concerns, this divisions and have been for a long time on these issues. those concerned with the market and economic impact and those

that's because the pboc cut borrowing costs. we got a warning from a top u.s. have the hang seng down fractionally. cheryl: in europe, hope still alive for a negotiated deal between the eu and the britains for now. we have headlines this hour. lauren: mark zuckerberg was at the white house and president trump tweeted this picture last night with this message. nice meeting with mark zuckerberg of facebook in the oval office today. jared kushner and social media director dan skavino reportedly joined the meeting. cheryl: today, zuckerberg is scheduled to meet with members of the house of representatives. yesterday he held a r series of meetings with senators. we've got hillary vaughn on cap tool hill with all -- capitol hill with all the he details. >> reporter: good morning. facebook's ceo mark zuckerberg made a point to single out his skeptics on capitol hill while getting in face time with some of his biggest critics in congress. zuckerberg did not take any questions from the press while he was here. he did take questions from lawmakers who drilled into the ce

i think the trade wars have fed into that because this time around he pboc is relying much more on thed borrow, and in the face of trade wars, and producer prices in deflation, that is not a great process -- that is not a great prospect. they have relied on in the past to strive to stimulus the economy. already tight monetary conditions on perhaps the excessive tightening have undertaken in the years before the beginning of last year. so to see where the recovery might come through, we are really waiting for that turnaround and monetary conditions to take hold. we are seeing the beginnings of green shoots, but has come up again and again against this -- the terrace being hiked, and the on-again-off-again trade deal, trade wars. we are dealing with month -- we're waiting for monetary conditions to improve in a sustained way to the pmi's of some of the shorter-term indicators of coincident growth at the moment. we see that in a downturn, the data that was released over the weekend and this morning. even with the uptick in the pmi, they are still broadly in that downward channel. we are l

the pboc cut 50 bases points for all banks to its lowest level since 2007 this is the seventh cut since 2018 on friday the key data point was that nonpharm payrolls report and saw u.s. job growth missed expectations in august they rose by 130,000 during the month missing a wall street estimate of 150,000. the unemployment rate remained at 3.7% while average hourly earnings rose by 0.4%. now to help us break down what those numbers mean and get a look at the broader u.s. economy, steve blitz, chief u.s. economist joins us around the desk thank you very much for being with us this morning let's kick off with that nonpharm payrolls report at a headline the number was below what wall street was looking for but importantly we saw that wage growth remains solid, average hourly earnings increased by more than what the market had been expecting. putting it all together, what does this mean for you >> it's a weak report. let's go to the wages first because, you know, that popped up it will pop up for a given month. most of that increase was in mining and in information sectors. and also what we