as you are saying, that rba ms. on tuesday where they said the cash rate was around 3.5%, that set us off on a run and was pricing in .25% rate hike without hiking the rate. haidi: absolutely. e getu said, maybe w back to jawboning and see if that works. that's the direction from sophie. discussing,ou were that pop in the aussie dollar, climbing for a third day, but softening somewhat. ,tocks on the mainland in china hong kong opening. the hang seng adding .4%, extending and eight-day rally, but on the mainland, it is ready much flat so far after a two day rise. today, the pboc fix of the yuan slightly weaker. we do have the yuan extending its drop amid speculation that the seven-day advance we saw previously was effective, and as u.s.-china talks get off to a rocky start. ae yuan retreated from nine-month high, and the offshore rate is lower for a second session. for a quick check of what is moving in shanghai, i.t. stocks and health care leading gains, the shanghai composite slightly higher. miners on the back foo

we are waiting to hear what we hear from the rba. a little bit like a broken record. we have heard this from the rba. analysts saying it was set between a rock and a hard place. not a lot they can do at the moment. ,he ecb, the bank of england the fed is talking about tightening monetary policy. \ at the same time you have housing prices in australia really strong. they have mentioned those housing prices rising briskly. they expect inflation to talking gradually, about policy being consistent with growth and the inflation target overtime. let's look at how the aussie dollar has reacted. it is moving just a little bit. we had in uptick coming through when the retail sale or stronger than expected. the aussie is falling against the greenback.. it is down a 10th of 1%. not a level that governor low will be happy with. at those highhold levels. the australian markets, in terms of what we have been seeing, up by 1.7%, that is more of energy players. the banks have been rising strongly. a lot of those lenders are starting to lose interest

we have more on the rba's decision later on bloomberg.you are watching in hong kong, that is 20 minutes to 10:00. by a bombayoined stock exchange's ceo. that is at 11:40 if you're watching in hong kong. markets,uest on number that is coming on at 12:10 sydney time. ♪ betty: let's get a quick check of the business flash headlines. ubs is streamlined its wealth management business in europe and will expand the role of the senior executives across the region. cross-border operations will be combined with domestic businesses to reduce the number of offshore booking centers from 10 to three. switzerland, germany, and the u.k.. wealth managers are under pressure from low rates in market uncertainty. haidi: executives told a london reported that they will deny conspiracy to commit fraud. by the mosteo's senior u.k. bank executive to face criminal charges since the financial crisis. it relates to funds made available to qatar in a deal that made $15 billion. we continue focus on bank action next and how they react to haidi: it is a: 30 a.m. here

we will keep rba is. -- rba right where it is. chances of getting one out of them? say,een: well, i would maybe it's a coin toss. they are looking at these global forces. the market in australia is very interesting because bond yields have been selling off in anticipation, just of the possibility that this could happen. national australia bank pointed out something that i think is really smart. they have to avoid sounding too upbeat about the economy even though they have to of knowledge that it has gotten better in many respects. let's look at another bloomberg chart, #btv 6554. what's that white line? it's that key rate that has gone down the past few years and just stayed at 1.5% since 2015. look at the aussie dollar, how it started rallying even though the rba has shown no signs of moving its rate even higher. again, bloomberg intelligence noting this question of exports. could they weaken, how this could hurt jobs, and having the sense that, in the second half, there's this question that maybe the rba is just going to sit whe

the handseally is in of the rba.f they don't come out and tell the market this is overdone, but we want the currency back down, it to go a very long way. the u.s. dollar is just so weakened the aussie looks like a reasonable alternative, plus today, the interest rate market seems to have decided that that the next move from the rba is a hike. putting those things together, it is in the hands of the rba. they need to knock back down if they want to. guy: mark, thank you very much. mark cranfield joining us from our mliv team. he is a macro strategist there. it is an ongoing blog that circles the world. 's to watch this week with big numbers being reported. pick events coming up. mark was mentioning the ecb, that will be one to watch as well. reporting numbers on friday. if you are a bloomberg customer, tv is a fantastic functionality. this is the landing page. tv, radioractive events coverage coming up as well. a featured event here, treasury upstions, policy russians front and center. does seem that theresa may

paul: a couple big things from the rba, the cash rate decision, the tuesday of the month.nks the rba will hold at 1.5%, particularly now for a couple of things, future timing schedule obviously. some words on the currency, the aussie dollar nudging 80 u.s. census again. using language -- cents again. they want to go away from the mining boom. we could look for further language. at the end of the week on friday , the reserve bank releases its quarterly statement on monetary policy. there is plenty of other data as well. we have rio tinto first half earnings on wednesday, son court thursday and another on friday. we will keep moving in australia. haidi: thanks for that. a lot on the agenda. more coming out on monday. the finance director speaking to us after the agency releases one report that they will buy back $2 million worth of shares. we are getting the latest on that at 2:30 p.m. in sydney time. still ahead, we are speaking to someone who said john kelly is the wrong pick for donald trump. and up next, the aussie dollar had a big loss. whether it has more room to run o

the rba -- talking about central banks and what they are doing. the rba hiking the aussie.probably wanted to move a little lower on that. the comments we heard from the deputy governor. this is an academic thought whether you have to follow. we have a divergence at the moment. david: absolutely. every country has its own issues. australia is very different from the u.s. this does confuse markets. markets like to have things moving. divergent trends are going to be -- no central-bank was to get rates at that high. even the u.s. has been struggling to raise rates. this is a long way from 2007. .e have never been here before manus: we started these conversations about policy divergence, leave the bank of japan to one side. we start these conversations by changing policy. the next conversation is there is a higher terminal rate to be had. david: if we can get normal gdp growth in these countries much higher. the striking thing about the post financial crisis world is the weakness of investment globally. in part -- manus: mi to preemptive in saying that is the -- am i to preempt

if you compare central banks, they set out paths, but the rba does not do that.hey are one of the central banks that provides little ford guidance and decided there was no upside for them giving any hint about what was happening next. better to stay neutral and hopefully put downward pressure on the aussie dollar and keep this rebalancing and growth going. haidi: this year nothing's going to happen in china, but after that? >> we believe china growth stays around six point 5, 6 .7 and running into next year. source of demand for australia's commodities, but we are completely seeing asian demand for our services and terrorism is the new driver of austria growth. haidi: the rebalancing continues? >> it does. haidi: thank you. well, coming up, tensions over north korea's missile tests. will korea play a bigger role and reigning in pyongyang. we hear from a former ambassador next. this is bloomberg. ♪ the g-20 in hamburg is one of the most anticipated meetings as president trump attending, global trade, climate change, all on the agenda. we asked about the change in

as well as the speech from the rba governor. haidi: that is right. perhaps we will get more jawboning comments. talking down these mutual interpretations the market took. also relevant to australia, china's economic performance. will that strength drive a boost? we will talk about the next. this is bloomberg. ♪ david: equity markets across -- head of japan equities research at j.p. morgan station. -- chgase. growth, momentum has slowly come back. there is a missing piece. the one answer we have not discussed is productivity. seen a significant increase in the hours worked for the overall workforce. the key is a nation is rising productivity. the labor market is tight. the question is, are we at full employment? if you have made this argument six months back? what are your thoughts on that? in the u.s., particularly, labor force participation shrinks. unemployment is not nearly as bad as it looks. the two statistics we are andsed on our productivity labor force participation rates. david: whether it is korea or india, it doesn't look very expensive. >

the rba sticks to its neutral stance. is

we have the rba policy do later today. line we have seen in sydney on the back foot there. gets to fit of its sales from the united states. health care equities could be attracted in the median turn to push beyond the two-year high. for now, we do have the aussie right around the $.80 level. let's get to the first word news. trump's: president director has been fired just days into the job. anthony scaramucci has been removed and been replaced by john kelly. criticized reince priebus. those comments did not help. continuing political drama is undermining growth in the u.s. and abroad. sally fisher says the lack of direction could cost companies to delay investments. they have combined to keep interest rates low. treasury secretary -- >> the last eight years, growth has been too low. we are committed to get it to 3% or higher. it has been a great time for financial markets. people have invested. we are going to do things that are great for the average american. the first big bang to put a figure on brexit. move 1000 stocks

when we hadn't heard earlier on from the rba.ttle traction against the krone as we can see. -- that moveesting , before the announcement came out. you can see it on the screens before that announcement face. riksbank says continuing into expansionary policy is needed. don't seem to be backing down that much. euro stock rising on the back of it -- or in front of it. take your choice. tomorrow, clues from the fed on monetary policy. gauge on the strength of the u.s. economy. friday, first friday of the month so payroll data. expecting rates to have held around a 16 year low. is that important anymore? we thought the labor market was the key to understanding exactly what the function that the fed was. many of us are understanding that may not be the case. bob janjuah, senior independent client advisor at nomura is still with us. what is the fed's reaction function? i don't write very often this days, but when i did, i suggested the fed's reaction function would have changed postelection. firstly, postelection, they would have assume

often it doesn't move when we have rba minutes out, but it is above $.78 now. we are going to see dollar commentary to feature the rba statement going forward. haidi: absolutely. lowecularly as philip refrains from joining the chorus of global banks. sticking with breaking data out of china, we've got property prices in beijing. new home prices falling by 4/10 of 1% month over month. prices fall 2/10 of 1% on month, rising 10% on year with shanghai new prices in june. some ofzhen has seen the most extraordinary gains year on year on terms of home price. we have seen unchanged month-to-month rising 2.7% year on year for shenzhen. that's the top three. existing home prices for beijing falling 1.1% month on month. when it comes to year on year, that number existing home prices in beijing, still gaining. pricesi, existing home barely falling 1/10 of 1% month on month. a little bit of a cooling. we've been waiting to get more of these numbers in terms of how has just come through. new home prices rising in 60 cities month on month versus 56 in may. looks like we are

no change expected even though there is an rba decision later on.from the governor there. betty: a good summary. the rba decision will stand out in today's trade in asia particularly before close tomorrow. let's get to the first word news with remy inocencio. ramy: the japanese finance minister is strengthening his political power base to give him more control over the ruling liberal democratic party. he also pledged support for the prime minister after the bruising defeat in love joe -- local tokyo elections. how that might hurt the ambition of rewriting the japanese constitution. the chinese president has arrived in russia with talks with president putin just as talks with the u.s. have hit rough waters. moscow and beijing will sign dozens of agreements during the visit. adviser foreign affairs say russia china relations are the best in history. there also looking for a window trump on thedent sidelines at the g 20. qatar is given a response to the list of 13 demand. that is a letter to the near of kuwait. it is not known what the letter contains

rishaad: the rba tomorrow, hence tide? >> i think so.mean the rba will need to. there is a lot of slack in the labor market and no wage inflation and the currency strengthening, so i expect them to stay neutral for quite a long time. haidi: great to have you. you can turn to your bloomberg for this and other interviews you might have missed out on and i can any securities or bloomberg functions we talk about, for bloomberg subscribers only, tv . 20 more to come. this is bloomberg. ♪ rishaad: this is "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: a quick check of the business flash headlines. how for but eu antitrust fine --l cut profit by two point 2.3 billion dollars. analysts expected net income of $5.8 billion. the fine will reduce alphabets earnings by its full amount. google was penalized for pushing its own shopping services ahead of rivals. rishaad: the australian financial review says facebook has been granted a patent to roll out peer-to-peer payments. facebook declined to comment about whether it inten

minutes, it rba drags. assets following. .4%kiwi plummeting about this morning. take a look at this pair, the aussie kiwi. consolidate. the trend very much in favor. tocould be seeing a deja vu get the kiwi back. at 110.t if they do not come down, there could be time. this shows you the dollar-yen said to converge on the 200 day moving averages. it is 11191. the contrast to a tightening yen. there is a new twist in the tale -- china plans to cut off some funding for the group and willing to give regulatory approval needed for some of the deals. curtail hisld drawing for a global entertainment empire. inquisitive. why is beijing targeting monday? >> i think the key reasons behind it is that they want to stabilize the yuan. year, china has been discouraging companies. transactionsnt that trigger the capital outflow. thator some assets protects the core business. they try wherever they can to do it. this element would be the china and banking regulators. it is kind of also being targeted. >> they are next in l

it'll be interesting to see the rba draw on that currency again.nt time we saw that was under graeme stephens, when the dollar was lower than it is now. it'll be very closely watch. very quickly come on let's have a look at the iron or price. that is not letting up either, is it? paul: no, it won't lie down. we saw iron ore prices get the $70 before pulling back. it has been a volatile year. everyone still expects that the pullback. outlook a fading demand as transitory. one bank says the steel market should soften. what we seeing is cyclical and seasonal. goldman has a price forecast in the 40's for iron ore next year. some see it in the 50's. it is taking a long time for reality to catch up to these dire predictions. david: they should be banned from australia. [laughter] yvonne: more on that later. goldman sachs sees the green shoots in the japanese economy. this is bloomberg. ♪ yvonne: we are counting you down to asia's first major market opens as morning. japan futures up 30 points today. seeing a bit of dollar weakness against the dollar yen,

what we have heard from the rba, we saw no change in rates from the rba. had german yields and we have seen moves because of that. nymex crude, quick check on the price -- down by 2/10 of a percent. we got a report on opec production, which actually increased since january. coming up next, leslie binger murray joins us on the program. we will talk about the g-20 and geopolitics, all relevant this week as we head toward hamburg. ♪ ♪ anna: and this nonsense. trump challenges china as north korea has successfully launched a missile. world leaders meet at the g-20 in just a few days time. the rba fails to follow the hawks as it sticks to a neutral stance. the riksbank ditches its easing bias after last week's roller coaster. the focus on central banks continues. searching for a shared solution. chancellor helping to make the case first move brexit. -- for a smooth brexit. ♪ anna: welcome to the program, everybody. in new london and 8:00 york, i am anna edwards. welcome to "bloomberg markets." let's have a quick look at what the markets are doing this hour. mid

-- the rba says it is above. inflation, they are looking at the key rate. people on guard because job growth and hiring has been picking up in australia. 8743. pull up g #btv going nowhere, it has stalled at a record low. this white line is down to 1.9%. the white line is the cpi -- alt 2.1%. the wages are not. does that mean you will stall out? rate at 1.5%. key the june cpi at 9:30 hong kong time, 10:30 sydney time. let's look at a year-over-year basis. the cpi i just showed you a 2.1% in june is supposed to go to 2.2%. another measure, the trend to 1.8%hat could get weaker, versus 1.9%. bloomberg intelligence thanks the headline cpi will fall below 2%. one other thing i have to show you that is g #btv 6910. we say,the reason why maybe we do not have to worry about inflation continuing to rise. we are looking at that cpi once again, 2.1%. but look at what commodity prices have done. they moved up sharply and have started to head down in australia. reason whyther people think may be cpi is not a worry for the reserve bank of australia, and why they will no

the aussie dollar past $.80 despite the rba governor saying rba does not need to follow global timingok at the hang seng index, at a two-year high. we will have a breakdown of the markets next on bloomberg markets middle east. >> the following is a paid program. the opinions and views expressed do not express those of bloomberg lp, its affiliates, or its employees. announcer: the following is a paid advertisement for time life's video collection. ♪ >> welcome to our first show that we are doing. i'm real excited. [laughter] >> good evening, sir. [laughter] >> millions of people are demanding my return to the screen. [laughter] >> how funny we are. [laughter]

the biggest mover is the aussie dollar up 1.5% rba minutes came out this morning.he pound is softer. it was up about half percent it's down 0.2% because of soft cpi data out of the uk yuf sofft that move. futures are basically flat, up about 0.10% for the nasdaq coming off a day for flat moves yesterday. >> still ahead on the show, a round up of today's top stories including the big news that broke overnight on healthcare. we're live in d.c. >>> and unbreakable netflix. more on the monster quarter for e coanthmpy. "worldwide exchange" will be right back leadership is instinc. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team. tha...oh, burnt-on gravy?ie. ...gotta rinse that. nope. no way. nada. really? dish issues? throw it all in. new cascade platinum powers through... even burnt-on gravy. nice. cascade. >>> senate republicans scrap their healthcare bill after failing to secure the votes. we're live in washington with the fallout a

a shift from the b -- rba minutes.hey are taking it has more hawkish. 13 for the aussie right now. equity futures modest but heading lower. japan, boj's today meeting started today. it may be enough to see the real ignition of yen the plight of safety moves after the president's health care failed. 112.05, still a bit of strength here in dollar-yen. equity futures up higher, slightly by 10 points right now. -- you didmention mention the s&p hit a record. it sounds like the bond markets are saying rates are going to stay lower for longer. we will talk about that keystone in a moment. in the meantime, the dollar lower, sliding to that 11th month low, stocks clawing back. they did reach new highs. su keenan here with key market moves to watch. you mentioned the trump disappointment or defeat in the health care, a big hang over the market. we talked about how it was a record close. notice the nasdaq and you might not notice what is underneath stocks,the fang facebook, netflix, amazon. netflix really tore it up this time ye

even ease again. , more broadly speaking towards the possibility of looser policy, more talk that the rba may have to cut next year because of lackluster growth. >> australia is a great example where parts of the economy are crying out for cheaper borrowing costs. the problem, and south korea is a good example, is they are juggling high household leverage, high amounts of debt that wasn't there a decade ago, so there is only so far you can go with interest rates. how low can you go with interest rates without causing greater problems than you first started to fix? seeing austriare and korea keeping on the sidelines. risk givenmuch of a that we are six months into the trump administration of trade rhetoric the coming reality and more of an anti-trade sentiment laying out for asian economies and what central banks can do here. >> it is a powerful theme. has not proven to be the issue we thought it would be. said protectionists increases are in line with average and there is no real sign of a trade war, but stressed lingers. china relations remain strained. the prospects of a significant bre

manus: the essence of what the rba wants to, they wanted to stop a runaway train.ussion about a new long-term rate being about 3%, that is the genie out of the back. do you think they have done enough to stop the mindset, or is the genie out of the bag? these are bank bills, the aussie curve. do think the train has been stopped? simon: in the short term, yes, it probably has. he has made it clear that currency remains at the top of their list and they will do whatever it takes to bring that down. continue to focus on the currency rather than anything else. with that said, it is going to be difficult to fight against a smalleres in currency. it is hard to fight against inflows when they come. on the commodity related , brent went back over $50 a barrel. here? stuck in a range we have a meeting of opec over the weekend. the big question will be, are they going to double down on the strategy that so far has suffered sleep addressed the problem -- successfully addressed the problem. the cap in oil price rises is not shifting. what is interesting is how some of these oi

but the stubbornly high aussie dollar creating headaches for the rba but not able to through the benchmarkoday. manus: thank you very much. took no stepspan to dial back there aggressive monetary stimulus program even as the other banks around the world are looking for the exit. anna: it didn't acknowledge it was too optimistic on the 2% inflation target. us tokyo.ays joins very good to see you. they did it for the sixth time, so i'm not sure anyone was apprised. someone say they're more realistic on inflation. maybe not yet realistic enough. what did the boj say today? japan kept all of its policy tools in place, paddle to the metal on stimulus, unlike other central banks. you still insist it will hit the inflation target even if it takes longer than they would. as the date for when that will 2% target for the fiscal year starting in 2019, no sopranos just thought they would wait. it's a delicate issue for the bank of japan, finally acknowledging it will take longer. 1.4% makes theom optimistic on growth. they see the economy expanding modest -- modestly. , they have to do that to buy the

the aussie dollar has been a headache when it comes to what the rba is doing.ds, but we do have again against the trade weighted index, up six point 5% since the start of june, so that is de facto tightening. the job numbers are out. is an interesting read, the headline rate as expected, 5.6%. 14,000 jobs created overall, but then it gets weird. check out these numbers, 62,000 full-time jobs added at the expense of part-time jobs, dr

up down under, the rba saying economic growth is priced

the rba deputy governor played down that neutral rate talk from the rba. meeting in st.etersburg key for the oil price $45.74, brent of losing steam after hitting $50. livia and nigeria unlikely to join output curbs and put more weight on the oil price. futures in japan, chicago futures also hitting lower, down 10 points. a down day friday on the nikkei 111 point 12.n that is the latest in the region on this monday morning, but first word news with rosalind chin. the u.k. says removing trade barriers could generate additional business. reaching a deal won't be easy. the trade secretary is in washington for preliminary talks and warned the american team has far more negotiating experience. the u.k. cannot negotiate trade deals until it leaves the e.u.. britain has called for an end to the diplomatic isolation of qatar. saudi arabia and three allies cut ties, accusing the country of supporting extremism. rex tillerson said washington is satisfied with the efforts doha, but the saudi alliance says qatar must revise policies before talks begin. a combination of a domestic a

things on theof calendar, the rba meeting on tuesday is important.f everyone is turning more hawkish and the fed is leading the way, will be rba indicate that it too is moving in that direction mark fomc minutes, looking inside the fed and whether thinking about the n ext rate hike. then we get the u.s. jobs report out on friday, not just jobs, but wages. we want movement there, but we are not seeing it there either. >> thank you. let's bring it back to japan, that new poll putting the japanese cabinet approval rating at 38%. the survey comes as prime minister shinzo abe's ruling party was well beaten and a local election in tokyo. from theeard comments prime minister saying he will try to move forward as the ldp is projected to win the fewest seats and the capital. ms. bring in our japan and government reporter from tokyo, isabel reynolds. what went wrong here? visit come down to domestic politics with this national security bill which has been controversial, favoritism scandals, or is it telling us something more in terms of the economy? this is, i

we are bouncing back after the weakness we saw from the rba decision.ba futures not going anywhere. a bounce of possibly 20 points in tokyo on the nikkei 225. we did see it bounces 0.25% yesterday. dollar-yen, still seeing risk off tones. largely, the market shrugging off kim jong-un's comments. we have to discuss the e.u. and japan deal. street,ack on wall returning after the july for holiday, tackle eating the markets higher. we saw the tech selloff right before the close of trade. ramy inocencio walks us through the day. >> a lot are saying it is a dead cap balance. we will see whether it is ready to buy based on the death of the last few days. getting to the main markets, the fmoc, it is sooner or later, but it will happen. that is what we are seeing in terms of market sentiment. the s&p 500 pushing up about 0.1%. that green means the s&p is on a 3-d -- three day winning streak. that is the longest in a few weeks. and we had mixed sentiment from the markets and currencies. for the most part, they were unchanged. this one up by only 0.2%. you can see

shaping up for a bit more positive after the real estate selloff in the friday session going into the rban tuesday. we are seeing the dollar hold at 76.92. policymakers have been concerned by the expectations we will see downward pressure on the aussie dollar. rate hikes have not materialized. we will get more with adam, but pretty strong moves when it comes to dollar-yen and euro-yen. weekend elections, been looking at sterling. the u.s. 10 year, 3%. we are a little bit. some data coming through with the u.s., the s&p 500 closing 0.1% up. trading in asia, we look at adam haigh. talking about the moves in the yen, some political moves we are seeing in japan. yeah, it is all about the assembly in tokyo, and this is one of the latest hurdles shinzo abe has got to clear. a lot of turmoil he is building around him. assemblyre this election, there was talk with you would need to redo his cabinet. people have been making predictions that will happen in august or september, so we are seeing strength in the yen-dollar, but it has come back a bit. so don't go too overboard on the move. storyis an

in that year in november, that is when we last got the rba hiking rates.w heto end was going on with sue shares. afterre falling over 7%, they announced a share placement at a discounted price -- price. some pressure for synnex china. c china.china -- suna david: lots of news we are following. there is the open, but there's also bad news for the polish ex parte chief. let's go to haslinda amin. a rising star is being investigated for serious violations of discipline, which is code for corruption. this comes a week after reports that he has been detained, the youngest member of the communist party, and was considered a candidate in the promotion of the leadership shuffle this year. -- heh president erdogan flew in from kuwait, and says he supports initiatives to end the crisis. turkey maintains a middle -- military base in qatar, and its closure was on the original list of the saudi led alliance. philippine president duterte it nationd his state of the address to assure the country he's not planning to impose nationwide martial law. army continues to fight

on the flipside, in australia, household that had the rba worried and a lack of wage growth, which ishy you did not see the iba come out and do anything on rates and seemed worried about hiking anytime soon. dollar see the aussie fall slightly after that statement. australianch if the dollars does strengthen, which has been a complicating factor. compoundingy policymakers, but not really into go against expectations. not much of a hawkish tilt. .ake a look at commodities it will be interesting to see if geo politics continue to dominate headlines. themtionally, we have seen brush off and be sanguine to the saber rattling coming from the north, but it feels like this target could be different. drop on monday, the biggest loss of the year alongside strength in the u.s. dollar. essentially unchanged before we had those crude stock files fall back in the u.s.. ore, lookingiron at services pmi coming through today. we will see if we can get the stabilization picture a little more filled out with the rebalancing side of the story. let's go to rosalind chin in hong kong. >> pushing back agai

that rba decision. we did not hear hawkish comments, as expected. that is seeing weakness there.ointing toes, losses here. slight gains, we are seeing futures down 0.7%. 113.11 for the dollar-yen. escalating tensions in north asia with the latest developments coming out of north korea. also, bank of thailand decision later. the hong kong open is one to watch every to the hang seng now 1.5% from yesterday. tencent.y in betty: certainly an interesting op-ed they came out on tencent. we will dig further to that story. our top story, the stakes have been raised dramatically in korea, with the u.s. confirming the north the did indeed test an intercontinental ballistic missile on the fourth of july. rex tillerson tsonga represents a new escalation of the threat to the united states, our allies, and partners in the region, and the world. he said the u.s. "will never accept a nuclear armed north intends to hold them accountable." korea's news agency says the u.s. will not like its gift on independence day. he intends to create an icbm capable of reaching the u.s. this year. let's bring i

saying the rba cannot do anything and they don't see a rate hike coming through until 2018.onditions, continuing to be expectations, june coming through at 15, accelerating from 12 the previous month. business confidence at nine, also picking up comes a positive and hitting another multiyear high when it comes to business conditions with most industries performing well. stronger trading conditions in terms of sales, profitability driving improvement, conditions study. month on month for may at 1% homeland data -- home loan data coming in under expectations of 1.5%, but still reversing that the client of 1.9% in april. pretty good in terms of business conditions, another multiyear high. getting to the markets, we do have china hong kong, shanghai, shenzhen joining the fray. let's get over to sophie. aussie shares are building momentum, recovering from losses earlier, up .3%. gainsces stocks leading in sydney, miners and energy players set for a second day of gains. real estate firms down .7% on the back foot in austria. chinese stocks down .2% at the open, falling for a third

there is little doubt the market was extracting a more -- was expecting a more hawkish tone from the rbathat. we got was a very neutral statement. very little change from the previous statement. the aussie dollar sold off a little accordingly, down about 3/4 of a cent. they are often a little bit misplaced. not toe very anxious fuel that strength in any way, and perhaps stall and economic recovery in australia. anchor: automakers are gaining after june u.s. auto sales mostly bit market estimates -- mostly beat market estimates. is this a giveback for last month's dismal figures? it still might be a down month overall. the kleins we are seeing are pretty substantial from gm, ford , -- the declines we are seeing are pretty substantial from gm, ford, fiat chrysler. up becauseres are what investors are really liking is a little bit of discipline on the incentives. they are not eating into their margins. lightpecially the mix of trucks and pickups and suvs, that is where automakers make their money, and where u.s. automakers make their money especially. that is the overriding theme of the sal

the aussie dollar is pushing higher above 79th and snap -- $.79, after the rba released minutes on tuesday to make traders bullish aussie. we also see the u.s. dollar weakening. asx futures pointing lower despite record highs on wall street. we are up about 1/10 of 1% and waiting on bhp quarterly numbers. bhp expected to come with 60.5 million tons of iron or. elsewhere, looking for hutchinson ports in singapore, and malaysia cpi for june expected to hold steady. i'm paul allen in steady -- sydney. more from "bloomberg technology," next. ♪ caroline: this is "bloomberg technology." i'm caroline hyde in for emily chang. google glass is making a comeback. this time, it is eyeing a different type of consumer. after noting his popularity in factories and other large businesses, the tech giant changed its focus for the glasses, which are now officially named the google glass enterprise edition. google partners like boeing and dhl. we are joined by mark argan, who covers alphabet. fascinating. it's about the enterprise. reporter: it is pretty consistent with the direction google has been going. t

we get cpi numbers out of australia, the consensus is 2.2% gains, but we could miss the rba inflation target by 2% or 3%. overall and the markets across asia, clear, and they wouldn't be surprised, given that we get the fomc meeting and the dollar hovering between gains and losses, a little more strength. we are seeing some downside to asian currencies. the korean won, which is now at market, india, 32,000. missing for the first time on record, passing that 10,000 level. new records for some of these asian markets. yousef: yes. let me jump into a board with some of the other tsi classes. i want to expand on brent crude, because as much as we are talking about what's happening in st. peter's, we have government data out today that will give us an indication about the stockpile drawdown, suggesting it will remain on track with another draw for a fourth straight week. natural gas stabilizing after we saw the biggest drop to the lowest level. treasuries,nds over the key metric their relatively unchanged. and a quick note on the russian ruble, which led declines among emerging-market curre

banking players looking strong, and we are awaiting the rba decision.e dollar strong getting towards that $.77 level. csi 300 under pressure, selling out of large-cap stocks, down .8%, also weakness in hong kong's index, up by .5%. them,kkei holding on to up another .4%, so well clear of that 20,000 point level. we did see weakness coming through from the yen during monday session. thehtly stronger against dollar today, on reports that north korea has fired another missile. we have seen some flow into safety like the yen and the gold price, up like .2%. in terms of what is moving markets, banks, energy players, japanese automaker strong today. toyota one of the best performers in the region. you are seeing selling coming through in these tech stocks. tencent, nintendo, sony all under pressure. that is the state of play across asian markets around lunchtime this tuesday. ♪ caroline: this is bloomberg technology. i am caroline hyde. amazon's decision to acquire whole foods took many by surprise. we continue to question which industry the tech giant will d

. -- bets on a rate hike at the rba in february have fallen to 34.2%. no higher than 18% probability we saw at the end of next week. we see the aussie continuing to slide. pulling up this function on the terminal to show you that context. the aussie dollar the worst performer globally by far, given the near 1% drop for the currency. the korean won is sitting 1%,ty, gaining 1/3 of gaining for the seventh day of eight. the kiwi is at the highest since september of 2016, gaining 2/10 of 1%. the kiwi currency is not too much of a worry, reflecting the economy's strength. ♪ emily: this is "bloomberg technology," i am emily chang. microsoft reporting sales that topped estimates. sales still up and adjusted trading, sales rose 9%. demand for its azure cloud services almost doubling. by thers are pleased turnaround strategy, his efforts to turn the company into a cloud computing juggernaut are paying off. joining us now from new york, rana.on ron a -- anarag >> a very strong results from microsoft. it is tough to find holes in it. we have to see what the estima

we're looking at dollar and the rba in australia.nna clark fascinating was about where the nation goes. it started yesterday morning around 10:00 a.m. with a story from greg farrell. there is no other talk in the nation but this financial 'snkage into president trump financials. jonathan: -- francine: we will focus a lot on that. let's get to first word news. taylor: we are starting with washington. multiple reports that some of president trumps lawyers are trying to undercut special investigator robert mueller. according to the washington post, lawyers are building the case that he has conflicts of interest. the new york times says he is trying to get some of their team fired. colorado, mike pompeo said the russians want a warm water naval port. kingpin ofecome the the middle east. the imf has agreed to another bailout for greece. they say they have approved in principle a new loan for as much as $1.8 billion contingent on eurozone countries providing debt relief. accept. will reportedly the free movement of eu citizens up to four y

say, the rba with a 0.3% chance of a hike, 0% probability of a cut there.g ahead to guidance as it were when it comes to the strength of the aussie dollar. shanghai, hong kong let's get over to juliet. we are seeing upside from the shanghai composite. , .6% gain. the hang seng index continuing to rally, up by .3%. it was in the red for one session out of five last week. you still have momentum and a lot of these property stocks. he hang seng above that 27,000 point level. weakness from the nikkei. slightly's asx 200 higher, up by .2 5%, so a mixed start to the trading session so far. what we can see when we look at the function on the bloomberg imap is the strong rally in energy players. the firstove $50 for time since may ahead of the opec inting, members conference new york. we have mining stocks looking good, up by .7%, and some money coming back into tech players hit hard on friday. 3%, so upside from those i.t. stocks. weakness in consumer staples, off .9%. currencies,t the japan industrial production coming through better than expected, a strong

last meeting saying -- the rba talking about the ability of growth they're improving performance they upking about the mutual rate three .5%. we are talking two percentage points higher than current levels. investors looking like -- for yields. quick comment here. just want to mention the us. we had goldman sachs asset management saying they were pairing risk in these. cautious on the outlook, though they remain a minute -- positions in the region. just wanted to know that those -- notes that that's what they were looking at. >> let's take a quick look at commodities. the board today fitting with the opposite side of that weaker dollar story. intermediate crude west texas up. silver had a 15 handle last week, might move back a bit. for the precious metals on the weak dollar. those are today's market minutes. a deeper look into markets now with oliver renick. you look at what's going on in equities, the s&p 500 index melting to record highs, nasdaq has the first record and a wild. earnings driving these gains or is it something else? oliver: we definitely would like to thank its earnin

this is the rba governor saying it is better the currency was lower, we do not need to follow the packthat seems see -- to be the sentiment coming from the aussies. also keep an i on the south weakening. a slightly better bid to the dollar. we are waiting for the fomc, that meeting and their announcement will come later on this evening. the dollar is up a squidge. is down by an eighth of 1%. it is five years to the day since mario draghi said that the euro is like a bumblebee. we do not know why but it is flying. let's have a look at the commodity complex. copper is on a ripper. up 4% is where we are at the moment in shanghai. standardhat, that is -- the standard deviation move is flashing green on the gmm. you are above the two-year high on the london market, you're looking at hedge funds boosting their copper bit to a 20 year high. the daily prophet said china had has had -- has had its crash. rising, rising on aussie and south korea. copper is the standout flashing symbol on the gmm. juliette saly has your first word news. thank you. japan's former top currency official has said the

2015, but technicals are showing, if it pushes past 78 point five, it could get to the level of the rbapy with. we have seen the aussie rise in six out of the past seven sessions, although there is some suggestions that aussie boards could be in for this appointment if we see a retake at that level. certainly on the up despite downside in today's session. anna. anna: thank you, juliette saly. we are talking about -- let me give you a few headlines across the bloomberg to china is set to punish wanda for breaching investment rules. this is the story we will keep an eye on. we will get juliette back with more details on that. china planning to punish wanda nation's breaching the restrictions on overseas investments in six of its deals by denying necessary regulatory approval. this is according to people familiar with the matter talking to bloomberg. it is 7:08 in london. let us talk about easyjet. the ceo of beef airline -- of the airline said she will step up for leadership at the itv from the eighth of january next year. this as easyjet struggles with the impact of the brexit vote. join

currency story the peso softened up, the aussie story.an interesting yesterday down on the back of the rba and coming back a little bit today, .3 of 1%. that reps of the market news. we will provide analysis as we progressed toward the market open. let's get a number first word news update with juliette saly. the federal reserve will give clues about when it is reducing its balance sheet before another rate hike. lifted rates in june signaling one more hike this year and spelled out how they began gradually unwinding the bond portfolio. janet yellen said the process could he come relatively soon. she left the precise timing and sequencing a mystery. russia is said to be pushing and at any production cuts will oppose the idea at an opec meeting according to for russian government officials. any further supply so soon after the agreement was extended would send the wrong message to the oil market. they are meeting in july 24 in st. petersburg. extended deadlines for qatar to respond to a saudi inspired list of demands runs out in the coming hours. there has been no indication of what it can

australia, the rba meeting later this week.ointing to again with the asx 200 after capitulation on friday. getting really close to touching $.80 against the dollar for the aussie once again. if we get reaction after the central bank decision. dollar-yen six-week lows after north korea fired another icbm into japan's exclusive economics own. we are seeing equities futures limited, just gains of six points or so. a lot of earnings on tap. that could be the driver this week. just tobly, indeed, and recap where we were in the u.s. markets on friday, 30 much a mixed close. -- dow closed near the high pretty much a mix close. the dow closed near the high. little bit softer gdp than what economists had estimated, so did not provide the juice investors expected for the markets. a lot can change this week. it will be a busy week for washington, domestic policy and international relations. bloomberg now is our washington editor. let's start with health care. we had that dramatic vote, john mccain tipping it to know passage of this skinny

it almost feels like the rba hiked its cash rate, but it did not. u.s.ng closer to 80 cents.apan had its boj day. we do see yen higher leading up to this decision this morning. 111.88 for the dollar-yen. euro traders ahead of the ecb, as well. the yenains a given strength for the nikkei 225. kuroda coming up hours before the ecb. talking about central banks, records on wall street. we seem to be more routine now. betty: they absolutely are. it seems like central banks are a little bit of an afterthought when it comes to the u.s. markets. at this moment, investors are primarily focused on earnings. let's pull up the boards here. you can see the markets closed higher. every single sector in the s&p gained, energy leading the way, s&p up 0.5%. the nasdaq higher by 0.6%. let's get to first word news with courtney collins. first up, the congressional budget office has upgraded its estimate of the impact of the strict repeal of obamacare. a number of uninsured people would arise to 32 million by 2026. president trump told senate republicans that health comes before a holiday. he sa

bonds continued to slide, although given the rba's determination not to join the hawkish chorus, thatally after the jump.basis point earlier, pimco mentioning we are not at the start of a bond bear market. i want to look at tokyo. that's a price monthly drop prompted the government to lower its outlook. machinery stocks adding over 1% along with electrical equipment makers helping the rise in industrials, up .8%, but the telco segment down 1.7%, the biggest drag in tokyo so far this morning. citigroup says profits for the telco will drop if this is the case. up marine segment in tokyo kawasaki, and the nippon all gaining this morning. thank you so much. u.s. jobs growth reacceleration well wages remain in low gear. fed chair janet yellen will be acknowledging this as a roadblock for inflation when she testifies to congress this week. , gooden hays has a look news and good news with the jobs report. came in stronger than forecast, a nice rebound, gain in may. the labor department does a survey of is this is in the middle of the month on the 15th, is theably what happened summer hiring

nasdaq coming off the worst week of the year but the best first 'rba ia nu '09 wee ckn mite >>> it waseclined to 5.5%. retail sales in line with expectation. as for toyota an increase in sales last month of 2.1% expecting an increase of 0.1% so ford and toyota reporting a little bit better than expected. we'll get the gm numbers in about 15 minutes and don't forget later on today we'll find out what the sales pace is most believe it will be about 60.8 million vehicles with these first two coming in better than expected we could get back to that 17 million mark though. most believe 16.8. >> elon musk tweeted out the first model will be produced on friday when they ramp up producti production the first 30 molds will be at the end of the month on the 28th and then gradually increase production through the end of the year with the production rate hitting 20,000 for the month of december. that's production rate doesn't mean they're going to crank out 20,000 vehicles in december but remember they initially targeted production rate of 5,000 per week by the end ofdecember so they're roughly in