philip lowe said australia's labor market is noticeably stronger. and he sees household incomes rising for some time to come. let's monetary stimulus would be appropriate at some point. let's get a quick check on the markets. near session highs, -- 1.5%.s up one the nikkei just over 1.5%. utilities leading the way. up nearly 3% in terms of sectors, followed closely by information, technology, consumer discretionary, as well as consumer staples. u.s.gpy is where the . asx 200 at near session lows today. we will have an update of the top stories in 30 minutes again. this is bloomberg. ♪ ♪ francine: founded more than a century ago from humble origins, l'oreal is now the world's biggest beauty products company, specializing in cosmetics, hair, and skin care. it boasts an international portfolio of 34 brands and has a market cap of 105 billion euros. at the helm, a man who has dedicated his entire career to the company. over four decades he has covered all facets of the business. today on "leaders with lacqua," we meet jean paul agon, chairman and ceo of

given the fact we heard philip lowe last week say if wage growth continues to be at 2%, it will be hardpressures to continue to tick higher. meantime, market reaction with sophie kamaruddin, watching some of the aussie movers. the aussie dollar as well. sophie: earnings season very much under way. according to a credit squeeze a stronger earnings season than we have seen in the last 15 years. that's not translating when it come -- transmitting when it comes to the moves in tokyo. in termsbiggest drag of points. the minor is expected to deliver its biggest first-half profit in three years. that's not helping the share price today. when you take a look at the bright spot, tech shares leading the adventures, up .9%. ltm.igher by let's pull up the board to check in on shares. we have it on track to close at a record high. the company develops electronic design, automotive software. ins after reporting a drop income and projecting constraints in operating market growth. the competition is getting focused. consumer strategy -- a share,king ahead to it seems there is not so much to guide marke

this seems consistent with rba chief philip lowe. he says he won't be pushed into more rate hikes. rates is not something that is going to force his hand. it helps us understand why. growth not picking up much faster, either. understandable why he would want to take his time. we cannot take any time to see how the asian markets are shaping up. let's get back to sophie kamaruddin. the bearishowing message from wall street, the pain is continuing for asian stocks. bonds and mostly climbing, given the focus on jitters in the bond space. relief in sight, given little on the calendar to entice. japanese stocks headed for the worst rates in two years, given the meltdown in u.s. markets. let's take a look at one of those movers. nissan dropping after cutting its profit outlook. performer, its -- it will plunge. celltrion joining the broad tumble. myer, getting hammered after its sales report, at an all-time low. let's get back to the broader moves, in the currency space. i want to highlight what is happening with the korean won. it is set for the 111 mark. now down about 0.6%. the yuan in

we did hear from philip lowe on friday that he has been hearing pockets where the labor market is tight workers with the right skills. we are seeing those rates pressures rise. we could be getting back to that 80 handle soon, perhaps. let's get to first word news with jessica summers. london-based lawyer has pleaded guilty to lying to u.s. officials, pursuing alleged russian meddling. alex van der zwaan admitted misleading investigators with a paul manafort.e, he was the fourth person to plead guilty in robert muir's inquiry, -- robert mueller's inquiry. u.k. prime minister theresa may is under even more pressure as hardliners from her party set out brexit demands. a letter from 62 tories says the u.k. must not bow down to e.u. regulations. it keepingyn says the u.k. inside a customs union with the e.u. is necessary for trade and to keep a hard border with ireland. president trump directed the justice department to ban so-called bump stocks that allow semiautomatic rifles. this after the killing of 17 students in florida. restrictions on the sale of ar-15 rifles or similar. many america

lows this morning. a lot of this is in consumer and defensive names, hersheys and philip morris, kraft, heinz, a lot of reets are at new lows the vix has been all over the place. it is still elevated this morning, trading around 45 or so again, that is a big notable move to the upside remember, nobody owned any protection this far down when you started going from 2700, 2650, 2600 in the s&p 500, nobody owned protection that low. when you get that low and everybody goes and says we need protection, well, the options, the market makers charge you a lot of money that's why the vix went through the roof you see it at 34 right now one other side infect here, take a look at the cpoe which, of course, controls and owns options products that's down 16%. not clear why. there was a note out by kpw that noted 25% of their revenues come from vix products. from options, futures related to vix. that may be an issue there i did contact cboe and ask for a comment. i haven't heard back from them in the meantime, if you're looking for a bright side, markets are getting cheaper. we kept complaining one of the risks we had

were talking about the extreme low to riches in pyeongchang and we are about them now here. philip. —— mitts. are already seeing this familiar pattern which will become familiar to us with a high pressure over the northern parts of scandinavia and then we are tapping into the cold air around the southern flank, eastern flank of it, southern flank eastern flank of it.! shovelling it towards the gradually shovelling it towards the british isles. not such an issue today, a decent day, if there is across parts but look at the cloud across parts but look at the temperatures, not bad compared to where we are going. someone l the where we are going. someone in the north—west of scotland make it up to degrees. 0vernight, the skies eight degrees. ovemigittfiche—siries be clear away from the sort of will be clear away from the sort of eastern coast of scotland, north—east of england and again the temperatures will go away to —3, —5, in some of the major towns and cities, some with seven or eight degrees below perhaps. get up and degrees betefiee'rhe’oezeet defend - sunday because if you have e

whether it reflects on the philip curve is incorrect kinged or non-linear curve, what are your views? >> for wages to go up, you need higher productivity. wed low productivity sins the crisis and averaging about 4.5% per year. but maybe more relevant, as you get this close to full employment, you would think that there will be some tightness in the labor market and wages getting up, we're going to be looking at that as one of many ind cay tors of where it is. i would expect to see more increases in wages and i do expect to see more increases in wages in the next year or so. >> i know one thing is a shadow labor market. a great number of people not current lit participating in the labor market that might be tempted to come back in. do you think that is the case? higher wages or just more employment opportunities leading to people get sboos the workforce or is there a decay in the skill set. if they are unemployed for a period of time. they might need help getting back into it? >> we've seen the labor force participation rate go sideways for four straight years. that's a big gain due to a downward trend due to aging. we have seen some of that. pe