the rba is looking at it very the rba so when mike joined the global tightening cycle? rba feels no pressure to ease. traders have no rate increases priced in for 2017, and just at 50% chance of an increase in 2018, so we are on the watch, particularly around issues of wages growth, jobs, and household debt to get some kind of clue on when the next move might the. -- might be. angie: paul allen added sydney. in half an hour, we will break that announcement for you. bloomberg markets: middle east at the top the hour. yousef gamal el-din standing by. what do you have today? unfortunately the time only allows a bit of a preview. we will pick up where you left off in terms of the main theme for markets, the ongoing standoff and tensions with north korea, what is happening with the un security council, what is happening with key analyzing key players, from russia to china to the united states. joining us is david fernandez from barclays, weighing in on the implications of the geopolitics and some of the key calls for other asset classes here at that and many more topics of t

fundamental, the rba has a problem. that continues to develop in australia is really one of the causes for concern. as far as what i expected today, i do not think we will have any rate hike, and i do not expect any shift in the rhetoric, but one thing they will be on guard ford is if the governor start to lean against the aussie dollar again. sort of induce some thought that they are going to remain lower for longer as far as interest rate go because they do not want to upset the apple cart and send the aussie dollar rocketing above the 80 towards 82.5 or 85 level before year-end. what you say for the aussie and how much of eastern three have seen over the past, you know, little while has been the green backstory? it really isink the weaker u.s. dollar narrative that is actually supporting currencies around the globe, and i think, because we are seeing this uptick in global demand for commodities, i think currencies in the commodity bought currencies are actually benefiting quite well out of this. this is completely un

another tidbit of data here in australia for the rba.he current account tightening now. $9.6 billion deficit for the second quarter. a bit of a mess. we were expecting 7.5 ilion dollar deficit. a bit of a blowout on the first quarter, almost three times the size of what we had back then. context,ou a bit of first off, the current account has not been in surplus since the mid-1970's. even so, this is a big improvement when it was closer to the $20 billion deficit. look at the aussie dollar, slight uptick on the release of these numbers. with net exports of gdp, that , which is third encouraging considering we have gdp figures out later wednesday. haidi: haidi: that'll will be something the rba will be looking at more. we keep saying they are really kind of stuck. paul: absolutely. they are pulled in two directions. we are seeing encouraging signs in terms of business investment, around 17%. encouraging in the non-mining sector, jobs have been very good. 200,000 added in the last six months, and a lot of them full-time. wages growth is jus

manus: the rba left rates unchanged.ook at central banks, bey possibly have reasons to more cautious i'm a little bit of -- more cautious, a little bit of pullback given the geopolitics. is that the norm? jane: in a scrimmage, there are a lot of commodities here -- in australia, there are a lot of commodities. prices, suchstrong as iron ore. the price of steel rising. it has floated the australian economy. the rba is cautious about china. what is the credit stock in china? what is the economy slows -- what if the economy slows? from that point of view, they won't stop. one of the reasons is they don't have a lot of inflation. this is where they have a similar problem to the rest of the g-10. they have a low rate inflation. the end of last year, they were recording the lowest wage inflation ever, given their economy wasn't -- anna: they do so much. jane foley stays with us. -- thank you so much. jane foley stays with us. beus: donald trump said to ending another obama era program. the details to come. what is the proposit

the rba warms that it is adding to price pressures.his is "bloomberg markets: asia." ♪ north korean tensions dominating sentiment. investors not prepared to take risks. has andling us what going on for a couple of decades. military spending, the chart showing south korea in red, the in japan. jeff an fallen, it is double that of japan as a percentage of gdp. japan gdp is something like 3.5 korea, soer that of absolute spending way ahead. 3.3 percent of gdp spent in the united states, a budget of $500 billion to $600 billion in year. haidi: putting that into perspective. that data point is top of mind as we have president trump saying they are willing to sell more weapons to south korea and japan to prepare for any kind of potential military conflict in the region. no consensus on how to deal with a threat from the north with vladimir putin saying he is against further sanctions against north korea. we are 30 minutes away from the open in china and hong kong. southeast asian markets, singapore, malaysia, taiwan coming online. to the. ma

. -- ahead of the rba meeting minutes which are due out later today.he pound sterling as well as the loony, we had the comments come out denting the pound overnight, but it is now rebounding, gaining point 02%. on --ut what is going check out what is going on with the dollar, resuming losses for a fifth session even though the taiwanese index is at an april 1990 high. we are observing swings in the malaysian ringgit, it fell earlier about 2%, the biggest drop since august 2015. thisted to highlight what trader is forecasting, he sees the malaysian ringgit falling, -- on expectations of a weaker yuan. michael avery anticipates that emerging markets will have a more difficult time over the next 12 months than the have seen in the past 12, for now, emerging markets, have managed index.b higher on the the em index has reached levels rallying at levels that we have not seen since 2011. >> sophie, thank you for the market update you read a lot more -- lots more to talk about. the first word news is here, stephen engle to read stephen: president trump making

we are looking towards the rba, the ecb on thursday. first, the australian central expected to leave the cash rate at a record low again. take a look at this chart. it illustrates nicely the development -- dilemma policymakers face. the red line is wage cost by the hour. wages are still falling close to record lows. close to record lows. at the same time, debt to income at record highs, largely on account of runaway property markets, how much households are leveraged. will bekeeps up, there a problem when it comes to consumption and retail sales. for those reasons, the rba is expected to sit on its hands. options at the moment, just wait and see future data. the composite index coming in way better than anticipated. reflecting what happens to the manufacturing data in official and nonofficial iep. looking forward to trade numbers out of china, and fx reserves. it's about the yen, gold, and markets generally. what we see with north korean tensions, what do we have? last time we checked, gold was maintaining gains. investors assessed thes

the aussie has trimmed the day's gains after the rba highlighted household debt risks.n equity movers, hyundai heavy leading stocks. alibaba health jumping in hong kong. climbing to a fresh record. , and then nintendo in tokyo. check out lg display, leading as companies reconsider their plans to invest in china. that is the market snapshot. ♪ emily: i am emily chang and this is "bloomberg technology." the d.o.j. has opened a criminal investigation into whether top executives at equifax violated insider-trading laws. it will look into whether the c.f.o. and presidents of the information and workforce solutions units were aware of the massive data breach before they sold shares. equifax announced a discovered it discovered the breach july 29. the three sold shares in early august. in addition, equifax's insurance against cyber breaches is far from enough needed to cover the credit reporting companies costs tied to one of the biggest hacks in history. joining us for an exclusive conversation about cybersecurity insurance is inga beale, c.e.o. of lloyd's of london. great to

the rba saying loose policy is needed for the economy. go back to the specter of north korean risk. that is driving up hedging activities. 3,u can see by g #btv 669 investor anxiety is pushing up the ratio for the nikkei 225. monday, it hit a seven-year high. the last time we saw this kind of event happening was back in april, 2010, during the greek bailout crisis. betty: we did, certainly worrisome. other asian markets -- ubs management saying to load up? piling we do have bears up, even though the index has rallied 19% this year. that is the steepest annual gain since 2009. some crack's are showing. .ou can see that on g #btv 6676 it is hovering near a 17 month high. 90,000 we did have over bearish options traded. that is the highest for 2017. although we are seeing gains, there could be some potential for that gauge. you talk aboute: clouds gathering around h h-shareshat about the in hong kong? stock --hey said on onshore stocks could have a rally that would last two to three years. chinese stocks were out in the cold most of this year

the aussie dollar ahead of the rba meeting, holding around $.80.ck out this technical indicator in the bottom panel. it is tracking closer to zero. this is a bearish hand it may be time to sell. i want to look at aussie three your bond yields. it has climbed to the highest amid risinger 2015 speculation the rba may follow the boe and boc in turning hawkish. we have the fed and the boj meeting this week. david: right, thank you. about, thes to talk bombing in london, the latest on brexit. let's get it over to paul allen for those stories. there are reports today that snapchat parent has blocked al jazeera's news network from its app. the wall street journal said snap to the decision following a request from riyadh. snape said the request stated that al jazeera's coverage violated local publishing and cybercrime laws. al jazeera says it appears to be an attempt to silence freedom of expression. the u.k. has lowered its threat level from critical to severe after a second person was arrested. the 21-year-old man was detained after a teenager was arrest

the rba was interesting. the aussie dollar up .2%. the swiss franc is continuing to climb as well. what is interesting, remember the yen and swiss franc -- there's something missing? gold. gold looks like it is running out of steam a little bit relative to the other safe havens. while the yen and swiss franc have bid, gold doesn't seem to be catching the same level of attention. .8%.ore is up by let's took about what is happening with the equity markets. let's take a look at the fair value on your bloomberg. where the u.s. is going to open a little later on. 50, is the picture of stoxx fair value, 1.2% to the good. that is what we are seeing, sort of i point -- sort of .1 .3 may be -- .1, .3 may be. u.s. fair values -2/10 of 1%. we will see how long that lasts once the u.s. traders get in. let's get a catch on every thing else you need to know. here's a juliette saly. juliette: theresa may is planning a speech to jump start sluggish brexit talks and move the discussion towards britain's future relationship with the eu. yesterday the parliament appear to tilt lawmakers the adjustabl

we did have the shares in sydney just unchanged ahead of the rba decision.e them falling while the aussie dollar is looking fairly steady at 7947. the nearest bullish trend could be compromised if they -- if iron ore pause back. -- paul's back. copper is extending gains and we do have oil picking up slightly well gasoline futures are on the back. before i go, i want to take one last look. this is getting about 2/10 of 1%. this is after the gyrations that we saw on monday. it is still set for a week of losses falling the last three weeks that we saw. betty: stabilizing seems to be the word of the day. thank you so much sophie. now the u.s. has called for the strongest possible sanctions on pyongyang. they say that kim jong-un's regime is backing for law. war. they have been tracking all of these events from hong kong. south korea says they are detecting these preparations by north korea for another icbm launch. even though we keep hearing about exhausting more diplomatic channels, it sounds like we are heading down the path to conflicts, military conflict. it

we do have the rba governor set to speak.s on what that might mean for the potential for risk of a rate hike. check out sydney, discretionary stocks sliding along with utilities. energy is the one bright spot, as they are in seoul and tokyo with new york crude holding above 50. financials, a mixed bag, but check out cba, the biggest gainer on the asx 200 in terms of points, rising after aia agreed to buy his life insurance business, making aaa the biggest life insurer in the antiquities -- biggest life insurer. betty: of next, we are going to find out why google may buy assets from troubled taiwanese smartphone maker htc. this is bloomberg. ♪ yvonne: "daybreak: asia this is -- ." s is "daybreak: asia betty: toshiba has agreed to sell its memory chip business writing billion dollars. peter l stremme joins us now from tokyo. tell us more about this deal. peter: the deal has finally come together, about eight months in the making. bain capital assembled a large group of companies to participate in the bid. apple played a critica

an rba member said rates were not going up soon in australia so netanya-net the dollar is stronger total > today. gold prices were up slightly yesterday, but given back up those gains today. down over a percent. 1300 is the price on gold. let's get more on the reaction of the fed unwinding its balance sheet. joining us is larry macdonald. good morning to you. thanks for joining us. clearly well telegraphed this move to reduce the balance sheet. also the other takeaways people have is december rate hike looks nailed on. and that further out the fed's dot plots, their prediction of where rates will go has a big gap to where the market is >> there's one or two times a year where the street gets offsides relative to fed policy. this is one of them. yesterday was just a kick off. remember, we've got 62 trillion of gdp outside the united states 62 18 inside. u.s. economists get caught up myopically on the $18 trillion in the gdp in the united states economy. but the dollar plunged almost 12% in 8 months. that's having stimulative effect around the world like a boomerang, some of these things a

the rba not expected to move, but a lot on the agenda other than these concerns over the nuclear tests hong kong markets opening. sophie: geopolitics are front and center. it will also be a big week for chinese data. this monday, stocks in china and hong kong joining the down trend. chinese large caps down .1%. the hang seng losing .3% this morning there. , theing on the yuan onshore rate climbing .5% after the pboc strengthen the reference rate by the most since august 10. the offshore rate continues to climb. i want to take a closer look at what is moving in hong kong. hang seng sliding for a third straight session, real estate leading declines when it comes to sectors in hong kong this morning. henderson leading the dragon that space. when you look at gainers, energy , that segment up .2%, and specific movers on the radar. , one of the biggest gainers so far along with cnooc, helping to push up the energy segment. theng a look at discretionary space, that is sliding .8%, despite goldman reiterating its buy. the focus is now turning to october. we have the golden week holloway -- hol

we saw that confirmed with the rba story, then we get this weaker than expected gdp line. so the aussie down by .2%. -- the u.s. the tenure that is interesting as well. a pretty strong indication that were in a situation where the market is getting nervous. >> a confluence of factors to be nervous about in september. let's get the first word news update with juliette saly. juliette: theresa may will face jeremy corbyn in the u.k. parliament for the first time since the end of the summer break. a top official says the divorce talks are going to slowly. brexitng to the deputy negotiator, he said no movement had been made in the key areas under discussion. as tensions over north korea continue to run high, the white house says president trump is set to speak with the chinese president at 9:00 a.m. u.s. time , as the russian president rejects calls for sanctions against north korea. useless andtions ineffective and urging the international community to offer security guarantees to north korea. hurricane irma has become the most powerful storm to form in the open atlantic ocean

it is a busy week for central banks with the rba and ecb both meeting and a host of fed speakers scheduledjoining us now is mark cranfield. mark, let me first ask about the ecb, because we have a survey of economists showing that mario draghi is expected to address the strength in the euro-dollar. more.we have been hearing there been more leaks suggesting the september meeting is not going to be the big one in terms of announcing something to do with tapering. a suggestion a few weeks ago that set the euro off on quite a good rally. there seems to be quite a bit of walking back from those comments . people are suggesting that he made directly and just the euro himself, something he hasn't done -- directly address the euro himself, something he hasn't done. it may well be that what they are trying to do is deflect attention from september and put it for -- push it forward to october. where they want to go with the balance sheet tapering. could beember meeting an attempt to shift where i should be in october. guy: if they start projections suggesturo seems to there is a downward revision in

the white house wanted to originally pair the rba with the debt ceiling, and have that come up to quicklythe deadline would not come upon us and basically risk of defaulting on our debt, for the first time in u.s. history. now, it seems like the house once to wait, as the harvey eight on its own, and eventually deal with the debt ceiling at the end of the month, which would get us staring at that deadline and potentially getting to a place of default. lisa: this surprised me. it seems like a no-brainer to go through with this kind of thing, a political cover for the conservative wing of the gop party. why did the original plan fall apart? >> house republicans have been waiting for the moment, where they have a republican president the white house, a republican house, a republican senate, and using that opportunity to rein in spending. and even if they have to compare it with the debt ceiling, they want reforms. but they went along with a when president obama was in office because there was a democrat in the white house. now that there is a republican in the white house, they believe there

we had minutes coming from the rba, flat on the asx 200. also seeing the taiex come under pressure. inre was a recent run-up those apple supplies. we are watching nintendo jumping the most since october 2008. todit suisse upgrading outperform from neutral. leading the gains among shipbuilders. this is on expectations a good win orders for large iron ore carriers and lg slumping and soulless the south korean government according to some reports has urged companies to reconsider their investment plans in china. anna and manus. manus: thank you, juliette saly in singapore. governor mark carney said the central bank may need to increase rates in the coming months going the surprise statement issued by the u.k. policymakers. said brexit is undermining the u.k. supply capacity making it harder for the economy to grow without generating inflationary pressure. nationals on set, the cio of fixed income energy the morgan asset management. you seem to be ahead of the curve. the bank of england needs to make -- think about raising rates. >> underlying rates of growth are strong. and when you lo

a weaker aussie on iron or on a dovish rba and any impact from the fed and stronger dollar before todayeaking of the dollar, dollar-yen, we are around the 111 handle, seeing the dollar weaker against the yen for the first time in six sessions. it is two months risk reversals. have seen is, we yes, the bets against the dollar gains versus the yen have been going up somewhat. this is still very much positioning there is dollar and even more so in today's session. certainly if you look at the options market. manus: thank you very much. china has hit back at s&p, saying the downgrade ignores the country's sound economic fundamentals. and development potential. ratingers china's credit . the first cut since 1999. parker. we have rich in our story up this morning as the s&p's first china downgrade since 1999. it could be good news for the polls. we are using to have been overly aggressive? the first since 1999. bob: let us look at the positive spirit first of all, china's capital account is now stable. foreign-exchange reserves have stabilized and are the larger still, the largest foreign exc

the rba saying no need to follow the fed when it comes to rate. boj held rates unchanged yesterday. futures flat, down 10 points for chicago nikkei futures. the dollar yen is a key one to watch after we saw the boj -- dollar-yen hitting 113 in the coming days, despite the latest on north korea, president trump expanded sanctions on pyongyang. kathleen: let's get the first word news with courtney collins. up, hewlett-packard enterprises said to be planning 5000 job losses. the cuts involved 10% of hp's global staff and are expected to begin before the end of the year. whitman has been swinging the asked for two years, cutting divisions, including personal computer printers and services. pressureer increasing from cloud providers like amazon and google. sovereignhad its credit rating cut for the first time since 1999 with s&p global ratings fighting the threat of soaring debt. the agency said three foreign banks operating on the mainland, including hang seng china and dbs china, would be unlikely to survive, should china default. they reflect concer

the road ahead for tax reform and the trump agenda we'll talk to david mcintosh markets up a touch 'rbais coveted. their leadership is instinctive. 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. >>> president trump striking a deal with democratic leadership on harvey relief and three mores in the debt ceiling breaking away from his own party. >> we had a great meeting with chuck schumer and nancy pelosi and the whole republican leadership group and we walked out of there, mitch and paul and everybody, kevin and we walked out and everybody is happy not too happy because you can never be too happy but they were happy enough and it was nice to see that happen for a change. >> the deal coming as congress comes back into session after the august recess with a full agenda joining us now president for the club for growth and former congressman, david mcintosh. >> great to be with you. >> so the question we're trying to figure out today is does that deal wit

the rba had left rates unchanged at 1.5% since last august, choosing not to follow other key centralng plans to withdraw stimulus amid concerns about weak wages and tepid inflation. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am nejra cehic. just getting some breaking services pmi crossing the bloomberg terminal, written's service -- britain's service sector grew at the slowest rate in august. fell toet says it's pmi 53.2, the lowest since september , a sharperfrom 53.8 drop than forecast. continuing to signal growth, it industry50 markets reports which include manufacturing and construction. the composite index suggests the economy will grow about .3%, matching the pace with the last few months. chris williamson warning the decision to leave the e.u. is weighing on optimism. the services survey showing ed.iness weaken the slowdown in august was most evident in hotels, restaurants, and consumer facing businesses. sector's services growing at the slowest pace in almost a year. still with us, and dini ramakrishna -- nandi

folks expect there will be widespread support for the rba, aid, butis -- harvey that is an assumptionllenged. tom: are you a genius on the dollar? are you in the timeout chair for calling strong dollar? >> i am always a genius. no, i managed to get -- we have been bearish throughout the course of the summer on the dollar. in the summerbble and turned bearish again. where we are now, we are at some i sense the market is not quite listening to what central banks are saying. think it is listening to the ecb. i don't think it is listening to the fed fully about its concerns. i think maybe we could see a tightening. tom: there is a touch of foreign-exchange. thank you very much. today, it iser jobs day. our conversation with liam grass. we will do that -- william gross. we will do that. coming up as well, mario monti. that is next. guy johnson will lead our conversation with the former prime minister of italy. this is bloomberg. ♪ ♪ i am guy johnson in london. tom keene is in new york. angela merkel has backed emmanuel macron for pushing for deeper eurozone cooperation. childrenpe's proble