on tuesday, the reserve bank of australia gets together, expected to keep interest rates at i.5%. midweek, india's reserve bank will decide on rates. rio tinto will give interim earnings as well. here are more details. if you look at what has been good in the japan economy, it is technological goods. panasonic is high. from the profit planning perspective, a lot of them use the yen. certainly, there is room for profit. rio tinto may be different in the sense that expectations for the commodity sector have been poor. 90% of their revenue comes from iron ore which is doing well. investors are expecting a buyback and higher dividends. there is good news. what about big financial giants like hsbc? will they mirror what we have been seen from other big international banks? they will hope their trading results are better. the expectation is they will have quite a strong release as well. investors are hoping for a buyback. it isa investors are hoping for a buyback. it is a common theme for these financial places. in terms of central banks as well, we're hearing from the australians and in

on tuesday, the reserve bank of australia will be announcing their cash rate decision. w of 1.5% at its monthly meeting. and moving to the next important day, and the european union ramps up talks with asean. senior officials from both sides are meeting in bangkok. and world leaders and central bankers are gathering in hamburg for the g20 international summit. let's have a look briefly at the markets. and at the open, the nikkei is getting 45 points. the all of mary ‘s index is down by 83 points in early trade. thank you for investing your time with us. i am rico hizon in singapore. sport today is coming up next. stay tuned for that. you are watching bbc news. our top stories you this our: —— hour: after the inauguration of a new chief executive, hong kong waits to see whether beijing is going to play a stronger hand. president trump is accused of inciting violence against the media after tweeting a spoof video. the government has announced its withdrawing from a 50—year—old convention that allows five european countries to fish in waters close to the uk coastline. irela

there's that rate from the reserve bank of australia. , the minimumhand wage is rising, and teddy morrisin sydney says he thinks this could put some floor and upward pressure on wages and eventually inflation. let's hear what he told us earlier. >> we are starting to see some wage growth, and at least a cause in the downturn of lower wages -- a pause in the downturn of lower wages. the minimum wage is going to be rising 3.3%. we saw hours worked rise as well. we will get the latest reading on australia's cpi abouter price index at 9:30 hong kong time, 10:30 in sydney. we are expecting to see 1/10 of a percent rise. maybe this is a sense of what someone like tiny morris would say. that's what tony morris would would what tony morris say. at 6910. look here that inflation rate i just showed you. expected to go up a little bit to 2.2%. commodity prices, big move up. almost a high from 2007, 2008. they have come down. i think the other people on the other side of this forecast say there's still a lot of muted forces. do you actually see households getting more income and being able to spend

australia's central bank has kept its benchmark cash rate at 1.5% for a tenth straight meeting. the decision by the reservealia was widely expected after recent concerns about financial stability. chinese technology giant leeco — that had hoped to topple tesla — has had its assets frozen in a row over an unpaid loan. mariko oi is in singapore. what more can you tell us? the company might not be a household name outside china, but it's an exciting company that was known as the netflix of china. then as you mention, they started drawing comparisons with the likes of apple and tesla when it started branching out into hardware like smart tv, smartphones and even electric cars. but just after it started selling devices in the us last year, the company's devices in the us last year, the compa ny‘s cash crunch devices in the us last year, the company's cash crunch also started to get attention. today, assets of the compa ny‘s chairman to get attention. today, assets of the company's chairman and his wife and three affiliates worth over $180 million have been frozen by a court. the ruling comes after a company fai

ten year, big story is three policy meetings, reserve bank of australia, india, bank of england, three expected to keep rates unchanged. ten year note yielding 2.294%. >>> as for the agency equity side, we saw a mixed picture nikkei off by two-tenths of 1% but the rest finish in the green. hang seng up to close the day. in europe, a mixed picture flatness in german, french markets. they're slightly positive. german dax up two-tenths of 1% flat positive for cac france >>> and data out of china is helping base commodities move higher iron ore is higher, and copper one of the reasons the ftse is outperforming in the energy market wti crude at 49.77 the big story is oil wti crude is now up 8% for the month of july. ice brent crude, international gauge above 50 52.62. the big part of the story is the currency markets look at where the dollar is trading. euro is weaker against the dollar this is more than a two year high u.s. dollar lower against the japanese yen, basically flat, and pound holding 131. wrapping things together with gold, up 2% for the month. it actually had a positive week l

we will have the reserve bank of australia minutes. also, house prices at of china. d, u.k. inflation numbers. we also have the second round of brexit talks between the eu and u.k. we are looking ahead to the bank of japan out with a rate decision. mario draghi's ecb as well on the same day, a little later on. i'm rishaad salamat from bloomberg's asia headquarters. haidi: i'm haidi lun here in sydney. we are awaiting these numbers out of china. we have to see in particular whether the third tier cities are going to see sustained and as a result we may see more curves from authorities to dampen the markets. let's go to the details. paul: just crossing the terminal now, the rba noting that data has been generally positive for the june quarter, even though we have gdp pulled back a little. quarterly growth was expected to increase, but there were disruptions to: exports because of cyclone debbie in queens land. in the labor market, we saw that last month, the big jump on jobs figures. the rba is still concerned about saying on the minutes that the strength of the labor m

australia is not exactly an emerging market, but when philip lowe, the governor of the reserve bank ofme that he talked about -- central banks can raise rates if they want to. it does not automatically mean anything for us. we don't automatically need to move in lockstep. we know he is referring to the federal reserve, but are there countries, currencies that are vulnerable? has everybody priced this in and a big deal -- and no big deal? is a great example, that we are not necessarily going to be hawkish when everyone is hawkish globally. we still hit $.80 on aussie. on the e.m. side, there is great benefits from this with the dollar weakness. i think we kind of have to wait and see the next catalyst. we have key u.s. gdp data this friday, everybody is are you talking about jackson hole even though that is four weeks away. with the euro making new highs passed the 11714 from 2015, you have to expect you may hear jitters out of the ecb about the euro being too high. was in tokyo last week covering the bank of japan meeting. far from even hinting they are leaning behind the fed, they mad

but, because there is this global tilt toward hiring, there are wondering is reserve bank of australiang to jump on board? its policy statement move from neutral to something signaling down the road the next move could be a rate hike. we know a strong labor market, that is a plus. march-may, a lot of momentum in the australia labor market area on the other hand, you still have high household debt. raising rates would put more pressure on people to service that debt. goes i have services that are very sluggish. let's look at a bloomberg chart. it is #btv eight 943. look over here, you can see in this part of the screen -- i'm cleaning that up for you, the bars are employment. red line is export. exports have been strong. another reason the rba can be encouraged to hang that higher rates than the road. peak, thisstart to could mean the labor market is speaking as well. there is probably a correlation. down,n see exports going jobs come down. as exports start rising, you can see jobs of gun stronger again. intelligence team is cautious on the second half. it china continues to deleverage,

will the federal reserve, or the reserve bank of australia, join in the hawkish harmony we have seen for the strong aussie? we will break the right decision in less than 20 minutes. next, theing up safety trade seems to be losing steam as the dollar revives. we will speak to todd elmer about his outlook for the greenback. this is bloomberg. ♪ angie: the dollar currently easing after it rose to a fresh high on stronger-than-expected growth. the treasury stalled after the jump in manufacturing with two-year yields touching the highest since may 11. we're joined with more. it really seems that fx traders could be focused on treasuries today. >> absolutely without question. even though the u.s. markets are closed, when it went to levels not seen since 2009, that is making an impact, and yields move higher, and back and have an impact on the dollar. yousef: talk to me about the upcoming rba decision. it's in about 15 minutes. what is going to be the catalyst? what are the people you are talking to looking for in this announcement? >> after last week's hawkish rhetoric out of the ecb, and

and the reserve bank of australia left it rates unchanged. anged,ves rates we wait for the day for the central bank the ecb seems to be better positioned to catch up with the fed versus the rest of them. is that an overly hawkish take? the ecb will have to in the program next to because of technical constraints. they're not willing to relax the limit. there is a expiration date. falling, we expect inflation to fall further next year. incentive is to stretch qe as much as possible so we do believe that it will stretch the end of 2018. they can keep policy rates low for as long as it takes. there likely to bring they rates back 20 in 2019. only afterrease inflation is the target of 2%. banks areral different case. there can playing catch-up with the ecb but now there is less incentive area they are moving toward the exit. the data does not justify the policy stance. we do not expect a hawkish turn but the language is sounding more balanced. the currencies are offering, they are coming out as the winners. as speculation was scaled. i'm thinking t

the reserve bank of australia is the -- is using differently what.the finger on the trigger button, are we underestimating -- overestimating? this is a debate that will reach three europe. it is well above the market pricing, that is what commonwealth of -- commonwealth pick of australia says, but they are mildly hawkish. the aussie dollar at a two-year high and the euro is also up. >> conversation around wages has also gotten the market excited. there is strength in the jobs market and some of that has removed downsizing for wages, almost as if the phillips curve might still be lurking on the horizon. let's bring up the wrist ratio -- risk ratio. fascinating to watch the u.s. health care bill, it seems to be dead in the current form, but a lot more to talk about where it goes next, and what does it mean for markets? there has been a bit of a resurgence he and the yen, a bit of selling in the dollar. we have the dollar index your across a broad range of currency, the dollar is is bit.d, down quite a >> let's look at the shanghai composite. there is a

the reserve bank of australia expected to hold its rate at a record low of 1% today.ting a more hawkish tilt. -- hawkish tilt, putting the bank in step with its global peers. we've been talking about how their hands a kind of tied, a lot of our guests saying they don't have a lot of options. >> they could just sit on those hands. be raisingnk we'd this question so much of it weren't for the fact that so are inobal central banks the process of raising rates like the central reserve or hoping they can raise rates soon , like the european central bank. keep the key rate at a record low, 1.53%. the policy statement will be scrutinized. move will be towards higher rates, what are they waiting -- what are they weighing? the labor market is stronger but household debt is rising. they expect the labor market to boost inflation. let's take a look at the chart. you can see the white line, unemployment. that has come down. , that is wages. they continue to soften. the turquoise bars are the rising debt to gdp ratio, household debt the second highest in development nations around

we start off with the central bank in australia and it is widely expected that the reserve bank will rates on hold at its meeting today. the rate is currently sit at a historic 1.5%, where they have been since august last year. with a strengthening jobs market and a cooling housing sector, is the bank likely to change course in the coming months? earlieri likely to change course in the coming months? earlier i asked an economist based in sydney.” coming months? earlier i asked an economist based in sydney. i think they are sitting on the fence and now and that will probably remain the story going into next year. it is possible, though, that the reserve bank may come out and say well, just like the bank of canada and the bank of england, they need to think about, eventually, raising interest rates. if they do that it isa interest rates. if they do that it is a story of the second half or possibly even later, in 2018. right now indicated on the economy are mixed. employment is strong but the housing sector is slowing. the economic data for australia right now, is it a debate over wheth

betty: the reserve bank of australia not expecting any policy change when it wraps up its meeting todayn signals what to do next. kathleen hays here is a preview of the decision. 1.5%.en: a record low of rba.prise for the the target was 2% to 3%. that might open the door for a move. this take a look at function. keep an eye on this one. you can see the rate is down 1.5%. you can see how much the dollar has risen. a stronger dollar makes it harder to export and imports cost less. you do not want your inflation rate to fall. let's move on and take a look at a couple of things that might incline higher rates. they signaled growth might reach 3%. we have had gyrations in the aussie dollar around all sorts of things. hiring momentum has picked up. the labor market looks strong. maybe things are overheating, continue to have rising house prices and rising debt to income ratio. those are the things that make you want to pull -- cool things off. the drama is probably around their policy statement about what they might say about the aussie dollar. are trying to talk it down a little bit because

australia. also waiting on the reserve bank minutes for the month of july. it was not very exciting.e wording of the statement changed a great deal, but we will be looking for more signs of lingering concern over household debt, weak wages growth, and the aussie dollar. waiting on the second quarter cpi numbers of new zealand and property prices from china. i am paul allen in sydney. more from "bloomberg technology" next. ♪ ♪ caroline: this is "bloomberg technology." i am caroline hyde in for emily chang. it is making a push into the world of business travel putting the company in more direct competition with hotel chains. schatzker whoerik is standing by with airbnb's global head of business travel. >> thanks very much. i'm here with david from airbnb for business. good to see you. the corporate lodging market is enormous, hundreds of billions of dollars. help us understand where this fits into airbnb's business strategy now. what percentage of airbnb's revenue does it account for? if you are successful, how much could account for two or three years from now? >> today, it is 15% of

australia. there is talk about amazon coming in 2018. that is going to be another source of competition, starting next year. target, thelow reserve banksay, that is what we are expecting. the numbers are not out of whack with the forecast. they say, it is a little bit below that. they probably are not going to be counting on those numbers. at the same token, there is nothing here pointing to a rate hike. 79 u.s. cents, it does seem the market has all what it needs. rangeink we will be around with the aussie for some time to come? >> probably. i question whether the market can price things appropriately. we will get it right over the long-term. off in get blown response to wins. excessive weakness in the u.s. dollar. australian dollar. an overreaction the meetings from the last meeting. being under a bit of pressure, first from the deputy governor. pushing back against the interpretation. it is very overbought, technically. it is very overbought. is asuggests maybe there little bit on the upside at present. resistancehrough the level. there is that risk it could still push up into the 80 sent zone before it comes back down. that is a s

our forecast is where the reserve bank, imf, oecd, and so we will review it again. we do want to see greater wage growth and australiato come from greater investment and a consistent improvement in profit performance. ♪ ♪ david: this is "bloomberg best." i am david westin. the third quarter gets underway this week, and we ask analysts and economists what they predict for markets for the second half of the year. >> liquidity has been critical. we entered the year hoping that policies and global reflation would take us higher on risk assets. policies have generally disappointed due to what is happening on the political side. the global reflation is not a -- not as strong as hoped for. it is there, but not strong. ultimately, it has been again about liquidity, and liquidity has not been met stock investors have done really great, but diversified investment, having given up too much by being invested in bonds, but the liquidity continues to be the main driver of markets around the world. >> the critical stability handoff has remained elusive. talk to me about what you mean critical.d why it is >> liquidity can take you h