juliet: a nice surprise today from rba. rates are on hold. where carefully watching the language in the upcoming statements. bloomberg research indicates there could be a quarter of a percent had this year or next year. perhaps the biggest take away from the statement apart from the adjustment is that the governor says the australian economy is still growing but the rate of growth is below the long-term average. the rba is saying overall, the economy will be operating with a fair capacity for some time. they also alluded to the property management. also, indicating that those commodity prices are hurting australia's chances of trade. guy: talk to us about what the view is on the aussie dollar. previously, there have been discussions about surrounding dust surrounding in need for an adjustment. are they comfortable where we are? juliet: the governor would like the aussie dollar to be weaker than where it is. he has been talking it down a lot. it is still adjusting to the significant declines we have seen in key commodity prices. the rba will b

rates remain unchanged at the rba.ling which in the statement, omitting the reference for the need for a weaker aussie. brent crude just below $50 a barrel. the first time since january. oil higher this morning. copper, flirting with the bear market. big moves in the commodity market. let's get the big stock stories with neeraj che. nearest call -- >> the largest taxpayer owned bank in the u k. for the first time, the government has held shares since the bank bailout. it sold them at a discount low for just seven pence per share. -- 407 pence per share. 72.9%. bmw also one of the biggest losers on the stock 600. stoxx 600. a sharp slowdown in chinese demand might need it to provides -- revised commodity goals. china is bmws biggest market. this actually is one of the biggest gamers on the stoxx 600. europe's second biggest makers of auto parts, but it has raised its target because of growth. lower commodity prices have helped it with low-cost. act to you. jonathan: of the big moves, greece is just opening up here that'

this as the rba kept rates at a record low of 2%. another monetary policy decision in asia india kept rates on hold at 7.25% taking a pause from its easing cycle. this as food prices sent inflation to an 8 month high. earlier the legendary investor told cnbc which emerging markets were best prepared for a fed lift off. >> i would say china is probably in the category and india because they have drivers of their own internally that are not so much dependent upon what's happening in the u.s. we're getting into a situation where china and india will be the drivers to global growth. it's very interesting. we're now in a transition stage of that development. >> how long is that transition going to take? what do you think? >> not too long. you're talking about five years. >> let's talk more about india with the global economist at standard charter. a pleasure to have you on the show. we got the central bank policy decision and for economies like india that are so dependent on agriculture watching weather trends are so important. monsoon ra

action aheadt of of the central bank announcement at the rba tomorrow.hinese manufacturing numbers are due tomorrow as well. south korea's july industrial output is falling 3%. that is worse than expected. china construction bank is the latest to report zero profits. that seems to be the common theme. >> yeah, the new normal. was unchanged from a year ago in the latest quarter. that mirrors what other big lenders reported as well. littles profit that was .hanged as well the combined earnings of china's five largest banks are projected to rise just 2% this year. that is the least in more than a decade. second quarter was near zero. they are not even on pace for that. ccb's nonperforming loans jumping 28% in the first half from a year ago. net interest margin slipped as well. it is a similar story for the other banks. we saw more loans goes sour in the first half. jumped 31%.bc offering less for savers deposits after the pboc cut rates last week. many banks are offering smaller time deposits. that indicates lending might be dwindling in this slowing econom

the rba comes out with their rate decision. we keep things unchanged. as with the r.b.i.. that is what we have. you can barely see the spike up. on the screen. 18% lower. other commodity related, you have the nyro and i can go on and on and on. that is the story. i will leave it there. rishaad: we have been talking about it. the resources and commodity stocks on the way down and continuing to slide down. big funds looking for exit sprint not to looking at prices not seen for years. here is yvonne man. is right.at the disappointing manufacturing data out of china put a damper on commodities. deepening concern that the demand for raw materials will weaken from the u.s. to china with china buying 40% of the world copper. the metal dropped to a six year low. we are entering another bear market from a peak. brent crude.out we are below 50 bucks a barrel now. since january. that is amid speculation iran supplies will exacerbate a surplus wants sanctions -- once sanctions are lifted. about 95l remain million barrels above the five-year seasonal average for u.s. refineries could t

three months ago, the rba predicted to rise to 6.5%. the forecast for the upswing in grow has been pushed back about a year. that suggests that australia is going to remain in a. of -- period of sustained growth. if we dig in a bit with the unemployment rate, the central bank also lowered its population projections for the next two years because he were are coming to australia because of the labor market than countries like new zealand which is a traditional source of migrants. we have very low wage growth at the moment. the central bank could have suggested that that has been helping contain unemployment. in many respects, it was the usual story with the central bank. there is a transition going on. they're watching growth in other industries outside of resources. at this stage, there are a few signs that that is happening. sign of not see any upswings in non-mining investments in the next year. is goingal building great and they expect that to continue. ata sense, they are looking fairly similar situations that they have had for the l

australia, closely watching that country ahead of the rba decision. the u.s. session because futures are not pointing to a strong open. take a look at the index futures. earlier we had daw a -- dow and nasdaq futures trending lower and s&p down 5%. futures earlier down as much as 1.2%. it will be another volatile session, one to end a volatile month. this will be a global volatile session starting in asia. rate decisions due from central banks with the fat of most anticipated. australia tomorrow is imminent and investors are looking for clues. central banks are confident that growth will pull inflation higher. commentsism follows from the fed vice chairman where he set a september rate hike remains on the table. in india, bond funds are betting that the r.b.i. will cut interest rates as early as next month or it the reserve bank -- month. the reserve bank is boosting sentiment. bloombergor spoke to at jackson hole. courtre is a bankruptcy which i think will be extremely important if we roll it out because if we can get a good bankruptcy code we can invest in l

and they will be looking at the rba meeting.the clearest picture yet of the true status of china's economic slowdown and the impact on australia. the aussie is falling in advance of the decision. now on the singapore dollar, it is on course for a 2.7% monthly loss. this is the biggest is the middle of 2012. in early monday trade, the currency weekend 1/10 of 1%. investors will be watching the central banks today. dollars singapore funding rates continue to weigh on government bonds. let's take a closer look at how these markets are faring. currencies in the asia-pacific today, certainly a lot of focus on central banks and the data from china. let's check in on those three currencies. we will check on japan. you see the safe haven interest, the flight to save the lifting the nfl .4%. the aussie dollar continuing to be under pressure. we closely watch what glenn stevens has today and fisher's comments in the u.s. on friday, highly anticipated clues to monetary policy. finally on singapore, a modest upside for the currency. it has

in terms of the rba, you certainly got a low australian dollar.eso have traders pricing and the likelihood of another cut from the rba. most 75% of swaps traders believe it will be down by year end. us trillion dollar for all the -- a low australian dollar for all the wrong reasons. victims withhe this meltdown. been -- how bad has it been in the last few hours> ? >> it has been a terrible day across the currency market. the global commodity currencies, those related to countries that deal with a lot of trade with china, have been hit today. the chinese stock market plunge has rattled those currencies. we saw the new zealand dollar dropped more than 8% today, the biggest move since the 1980's. we're talking really large magnitude. we also saw the australian dollar filed by the most it hasn't five -- it has in five years. we really see some very ugly moves across the asia commodity or agent currencies. also the commodity currencies today. angie: has any currency been spared here? >> the safe havens have certainly been spared today. as investors tha

david: there is one from the rba, expect that from the commodities space. that is not for sure.hat being said, soft commodities -- sugar, cocoa, coffee was down. watch the periphery. sectors. you have the heavy equipment data, industrial services. a lot of those are listed in australia. on the flipside, airline shipping stocks will likely get a bump up because of lower energy prices. the resource currencies is another thing to watch. i have a list of three, not limited to these. 35% -- that is a big problem. the d year lows and oung. a lot of things to watch. shery: thank you, david. a look at what to expect this morning and all of this had an impact on u.s. stocks as well. let's take a look at how this laid out with -- played out with john shipman. energy companies definitely taking a hit. from theing hits weaker manufacturing data in china which has sparked further concern about global growth. we saw that manifest in oil stocks and also in miners int the u.s. the s&p 500 energy sector saw its worst two-day decline since january. stocks like chevron had its worst two-day drop i

the rba says it expects average economic growth between 2% and 3% next year, down from 2.5% to 3.5%.t's talk more about those u.s. jobs numbers do later today. at the united states unemployment rate, at a seven-year low. some commentators say that the picture is not so rosy if you look at the rate of employment, the number of people in work. >> the basic story the fed would be raising rates because it's concerned the economy is growing too fast, with an issue of inflation, and it's hard to fit with the economy that we are seeing. if we look at the unemployment rate -- 5.3% is not bad -- but if you flip it over and look at employment, something that many of us have been talking about, we are nowhere near recovered from the employment rates we saw before the downturn. caroline: on that note, it's a great time to introduce our guest, the securities executive director who is here for the next 45 minutes -- take you for being here. out -- is theeck u.s. economy ready for a rate rise? it is certainly bracing itself for one, but is it ready? brendan: well, we see the labor market normalize,

the rba has been reticent in the past about commenting on issues normally beyond its limit.day's episode of "highfliers," we moved to the one of the most respected is this owners in indiana. we will show the challenges she has faced along the way. >> they were not white lies. they were absolutely the truth, because i was a managing director. i was in a garage, but every people came to interview for a job, they would imagine this fancy office, and they would come and see this young woman. -- they werey looking for a receptionist, and would say, we have a meeting with the managing director, and i would say that's me. the show comes at 6 p.m. hong kong and singapore time. -- 6:00 p.m. hong kong and singapore time. coming up next, a clean sweep. record profits for a vacuum company. ♪ shery: checking other stories making headlines around the world, greece is on the way to securing a third bailout, with eurozone finance minister signing off on the program. athens should receive cash today in time to pay any cd debt. -- an ecb death. bt. the deal comes after months of bitter negoti

there are questions ahead of tomorrow's manufacturing numbers and the rba decision. we also have the aussie today trading at a six-year low. that is a currency we're watching very closely. the nikkei 225 is lower because the yen is advancing ahead of those chinese manufacturing numbers. investors are looking for safe havens and they are high -- piling in the currencies like the yen. output industrial numbers for july which came in worse than expected and japan was out this morning with industrial production unexpectedly declining. headwinds for those economies, japan in particular. here and hong kong and shanghai this is what we have three the hang seng index higher at the end of the day and banking stocks focusing on a particular because some of these chinese banks are really astonishing. they have an earned any money so far this year and it tells you the extent of the issues in the chinese economy. let's look at the chinese brokerages because they have been moving significantly with chinese regulators taking a closer look at insider trading with some of the securit

the rba pushes back its forecast for australian growth. it says unemployment has probably peaked. serious concerns, criticism of in the waterson but refuses to single out china. itsingapore celebrates golden jubilee, we will be there live to look at its plans for the next 50 years. all of that and much more on this friday edition of "asia edge." david: it is friday. i am keeping my eye on the markets. it is mostly decline across the region following the declines we saw in europe and on the u.s. volumes quite thin ahead of the u.s. jobs data tonight. case ifespecially the you look at currency markets. absolutely nothing happening. yields, fixed income, fairly mixed in the broad market. let me mention malaysia, we are down about three fourths of 1%. the only market that's actually spiking up. oil prices remain subdued. forecastersot of thinking that the currency will weaken further. last i checked, the koc i was roughly at 1680. about 10 points above the december 2014 low. that takes us back all the way to early 2013. several cities in taiwan will be closing offices, 6:00 p.m.is eve

close to two week low and the aussie dollar seeing some profit taking after yesterday's rba rides. in the commodity markets, well, yesterday, finally commodities were able to capture their breath. that seems to be continuing today. the price is at 4589. brent crude up by half of 1% back above 50. let's also check in on markets in asia. sri is in singapore. sri. >> hi, carolyn. what's wrong with this picture. it is a robust session with mainland china equities. down by 1.6% despite the fact that the pboc reaffirmed it's commitment and despite the fact that the data on the july services sector pmi, 11 month high didn't really help sentiment but that tell mess that sentiment still remains quite fragile and this deleveraging process still has a way to go. a lot of people are talk about the down side potential still in this market around 3300 or 3400 as well. those are the key support levels. elsewhere, i wanted to highlight indonesia. we saw second quarter gdp from southeast asia's largest economy coming in sub 5% but it was a little bit better than a consensus expectation. so the mark

overall, i think deposited for commodity currencies in particular given the recent shifts by the rba and they're on course to adopt a more constructive view overall so expectations and further rate cuts down the road but again our central case is for stronger and sufficiently strong print to keep the rally. >> are the risk assets front running to what equities are doing at the moment? we've seen a little reaction we inqui we inquiequities. >> still close to the lows of the year and super low commodity prices, presumably very fixed income markets and there's growth concerns, inflation concerns, all of these things. if you're worried about growth or inflation. you shouldn't buy stocks. you should be selling stocks and what investors are clearly underestimating is the fact that the impact the drop in commodity prices having all export revenues of commodity exporters. significant declines in fx reserves have been building up over the years on the back of the commodity super cycle. they want any central bank money and global fixed income market so those reflected look mispriced to me. >>

begs the question is the rba now moving into something of a neutral cycle. if we still have these commodity head winds effecting the terms of trade very kwarly but the domestic situation is showing some signs of life. that's where we stand. back to you. >> thank you for that. moving on puerto rico missed a $58 million bond payment monday. the first default since it came under u.s. jurisdiction in 1898. the government did make a payment but says it lacks the fund to pay the full amount. they both say this is likely the first in this year's defaults. many of puerto rico's bonds are in the hands of u.s. investors that bought them through mutual funds. >> still to come toyota drives to success with a quarterly net profit but will the chinese slow down catch up on it? we analyze the numbers, next. >>> u.s. futures point to a mixed open. no let up for apple. shares off 2% in germany after the tech giant falls into correction territory in new york and pimco under investigation for inflating returns of a popular etf. >>> record profits at toyota. beating on the bott

it is ahead of the rba rate decision we have tomorrow. at 0.72ralian dollar u.s. dollar. getting underway. down 0.2%. manufacturing for pmi out of south korea as well. we have that in a couple of hours. it was below 50 showing contraction in the past watcher consecutive months. one --ly trading at 1000. let's go to china. the economic slow down there. official pmi numbers over the weekend shows of the gauge slipped to a five-month low. the month of easing had the desired effect. let's bring in correspondent and occur in. curran. enda: a disappointing read. new orders and new sales under pressure. if you strip away the impact in the second quarter, china is quite slow. will be disappointing for policymakers who have taken so many steps. shery: does this mean that not only because of car sales but manufacturing data and the economic data and today the official pmi it means we could see more stimulus from the government? :en: pointing -- enda curran pointing toward easing growth on track for the 7% growth target. lower thel-bank could reserve rate requirement if it they need

the rba leaves rates unchanged. .he aussie dollar is up 1.34% it is in the statement.d more depreciation of the aussie dollar. when you take out the job on the currency surges, making big moves across europe. 5 thank you. minutes, we are joined from new york. a big part of the show will be focusing on commodities. china had a great day to check their shelling. we saw a bid and commodities. we will synthesize commodities over to other markets and some of the crises around the world. we have 2 wonderful guests. join us fromr will mgm advisors with a focus on gdm p. spirit is not happening in commodities. bill rhodes will join us and our second hour. europe,spend time on madame lagarde, and greece. we will talk to bill rhodes about puerto rico. this is an american story. thank you. tom keene with "surveillance". looking forward to it. maker ofhe biggest luxury cars says that a slowdown in china might lead to a rethink on profitability. sales declined and cost the company its position as the world's top-selling automaker. chad thomas is standing by. is warning on china. th

we have seen from the rba. will leave it there for now rishaad: 45 minutes away from the latest manufacturing in china full top still no signs of recovery on a manufacturing. over the weekend, five-month lows. yvonne man has been watching. whether this stimulus is having any effect? yvonne: not really. there is talk of fresh fiscal spending in china after officials pledged to make preemptive policy adjustments. of july, in the month lightly missing estimates and down for what we saw in june. that number is the lowest since february. the release indicated a drop in new orders. there's a reason there is a rise in auto sales. we saw the private preliminary numbers hit a 15 month alone. that is what we are expecting later on in the hour stop 50 is numbers,ial, the final 48.3. slightly up for what we saw a week ago. the national statistics bureau said hot weather and commodity prices may be to blame for the demand. nonmanufacturing pmi, services and construction turning out better than. economists say it is time for

tuesday, rba rate decision. rate decision on thursday. what is mario draghi going to say?k the surveys we have been taking will be around 200,000 or the u.s. jobs number. larry summers is going to be there. jack lew is going to be there. wolfgang schauble is going to be there. some big, high-profile guys will be attending the meeting. today, a lot of data to delve through as well. 1:00 p.m., we will get some gdp numbers out of india. will the indian central bank the cutting rates? it would be interesting to see exactly what happens. plenty more still to come. we will dig through all of the data here on bloomberg television. more interviews coming out of jackson hole. as we had to break, let's give you a clip of the atlanta fed president. >> the distance that we have traveled as well as the current outlook for the economy, both of those, to me, would suggest that we are close. the timing is close. ♪ guy: welcome back. it is 7:18 in london. london is closed today. it is a bank holiday. in frank for, which is a little bit more germane. let me tell you what equity markets look