rio tinto falling as well as other minors, glencore down.inors and oil producers lining inat the top six losers terms of taking away points on the stoxx 600. european markets are lower as a result, this is after the federal reserve cut rates for .he first time since 2008 jerome powell warned against expecting a lengthy u.s. monetary easing cycle. to lower the today target for the federal funds rate i a quarter percentage point, it intended to ensure against downside risks and policy trade uncertainty, and trade tensions which seem to on the effect economy, they evil in a different way. inflation running below target. we see those as threats to a favorable outlook. this is the right move for today. we think it will serve. davidjoining us now is owen, managing director, cee, jefferies international. let me ask you about jay powell making what the market would have read is a blunder. how do you read him? been a great not year for central bank medication surrounding the u.s. fed and the ecb. this is another example. flagged, cut was well we do n

rio tinto's cl said that as well. larry: i thought the fed was going to do more. still hurts, but i live to fight another day. going forward, it will be more data-dependent. matters a report little bit. i'm fully expecting to see a way for them to steepen trade. guy: thank you, larry, for joining us. note, alixrogramming steel is on the road today for bloomberg's "commodity's edge." she will be discussing this on thursday at 1:00 p.m.. , chris, -- up next turner. this is bloomberg. ner. this is bloomberg. guy: 30 minutes left in the european trading day. i am guy johnson. vonnie: and i am vonnie quinn. this is the european close. guy: and idea of what is going on. up by 4/10 of 1% now. the pound is back to flat. we are continuing to see the german yield curve become more and more negative. -46 now. vonnie: in the u.s., markets still digesting the impact of the 25 basis point cut and the federal chair's words yesterday. it is not just that, it is the manufacturing data as well and construction spending as well which was negative by more than

the third australian stop to drop today, rio tinto.ing iron ore prices have been weighing on the company's stock and the ceo told bloomberg it it is defending the minor is a cash machine that will keep rewarding shareholders. another hurdle for the company is slowing growth in china, which is by far the world's biggest steel producer. we will be hearing much more from the ceo in his bloomberg interview very shortly. thanks. swiss bank ubs is working on a potential shakeup at its investment bank a year after appointing new leadership. the new strategy could lead to hundreds of job cuts. the finance editor for " bloomberg news" joins us from san francisco. what have we learned about this potential investment bank overhaul. bloomberg is reporting that ubs is considering a revamp of thatnvestment bank, and these moves might involve job cuts to the tune of hundreds of jobs. what ubs is hoping to do is to smooth out the results from this unit to try to make the results a little less variable, a little more consistent. to improve efficiency.

reduced costs and a strong performance in the investment banking unit the stock higher by 3% and rio tinto, you see it's down more than 2.5% this morning. it's delivered its best first half profit in five years, they report a 12% rise in underlying earnings for the first half of the year but still missed expectations stronger iron ore prices helped to offset some disruption problems the ceo told cnbc earlier he's confident the company will reach its targets despite an uncertain environment. >> when i look forward, one of the key markets is china it is clear china is slowing down as expected, but still strong from a mineral standpoint we are in a good position. the finances are strong. i'm confident that we will continue to deliver what we say we will deliver. >> mid cycle adjustment. those two words from jerome powell triggered a tumble in u.s. stocks despite the fed's first quarter point rate cut in more than a decade the comments dampened hopes of further cuts this year some traders said the statement itself had already proven to be a bit of a disappointment. you can see what's going on.

rio tinto will come back in the shape of dividends and special returns.ompanies, with the iron ore price, it is still very high. low leverage within these companies, operating efficiently. the mining sector still has a reason for positivity. we think china will stimulate through fiscal policy and that will be a positive for demand. at least helping iron ore prices stay high level but dropping back. these are still very high level in context of recent history. shery: take out the mining asx 200what does the look like? jason: it is very stretched. it is something we are very concerned by. if you look at the headline, in context, they very low end of the yield curve. it does not look overly stretched. if you strip out the extraordinary increases we have seen in earnings expectations, tradingdual asx 200 is above the five-year average. we call that the asx industrials miners which to suggest a positive picture in terms of earnings for many of these companies. then, we think it will play out over the course of three to six months. much of that will be evidence

for rio tinto. worth $10.2 billion. announcing a special dividend.he headline to take note of, $1 billion. overall sain returns to shareholders, 3.5 billion dollars. that special dividend that is catching the attention. in.it coming >> we are going to talk about the boe more when we come back. mark carney grapples with the sinking pound and the real prospect of a no deal brexit. this is bloomberg. ♪ >> we decided to lower the target federal funds rate by zero 5%. it is intended to ensure against downside risks. with trade tensions that do seem to have a significant effect on market conditions in the economy. running belown target. we see those as threats to what is clearly a favorable outlook. >> we believe this is the right move rate it will serve the enzyme mentioned. comment afters the central bank cut rates for the first time in over a decade. 8:21 here. seven: 21 in london. we are 38 minutes away from the start of trading. this is bloomberg daybreak europe. >> i am nejra cherish. let's get a reaction. 1.8%.quities dropping we could see a lower o

there i mean unfortunately we have information from experts saying that the dems of the mine in rio tinto on safe he said no i said with you there's no safety there i mean i've been bormann. the open pit mining to be a dog is 10 times the size of the one in i think and it's run by an international corporation. in seeking to increase production by 50 percent. were not allowed to film on site so easy dr i but they are shows us the reservoirs. underneath a solid layer on the surface there is liquid mud. and i want to know what we want to hear some very acidic and that's been contaminated heavily through copper production if the dams break then a much bigger catastrophe could happen then 20 years ago. in the village next door nobody wants to believe the scenario most families here lived off mining until the factory closed for 15 years mining has restarted 3 years ago and many are happy to just have their jobs back i love you know i mean our lives have been reinvigorated by the opening of the mine that i grew off a model with all its modern technology how could i not think that we're not. goin

ceo: that was the rio tinto speaking with jonathan ferro yesterday.et's get the bloomberg first word news. we go to annabelle jewelers -- annabelle drillers. >> the central bank faces further easing. a quarter-point cut could come as early as next month. policymakers could also reduce the ratio that the bank must hold in reserve. what we are contemplating is another rate cut of maybe 25 basis points. it could come as early as set timber or in the fourth quarter. we have another hundred basis points requirement ratio before the end of the year. economy grewpan's more than expected in the second quarter as consumer spending and business investment offset slumping exports. gross domestic product grew 1.8% from the previous three months. consumer spending was a key driver, raising the most in two years. the reserve bank of australia says it is ready to reduce its record low interest rates even further if the economy needs it. the governor pushed back against expectations for growth and influence -- for growth and inflation. >> inflation will be below the

there i mean unfortunately we have information from experts saying that the dems of the mine in rio tinto on safe. knowing say well you know there's no safety there i mean that everything but bormann. the open pit mining to be your team is 10 times the size of the one in i think and it's run by an international corporation seeking to increase production by 50 percent. who are not allowed to film on site so easy dr other but they are shows us the reservoirs. underneath a solid layer on the surface there is liquid mud. and i want to know what we want to hear it's a very acidic and there's been contaminated heavily through copper production if the dam spray than a much bigger catastrophe could happen then 20 years ago. in the village next door nobody wants to believe the scenario most families here lived off mining until the factory closed for 15 years mining has restarted 3 years ago and many are happy to just have their jobs back i love you know i mean our lives have been reinvigorated by the opening of the mine that i grew off a model with all its modern technology how could i not get tha

there i mean unfortunately we have information from experts saying that the dems of the mine in rio tinto on safe he said no i'd say with you there's no safety there i mean everything but bormann. the open pit my going to be a dog is 10 times the size of the one in i think and it's run by an international corporate. seeking to increase production by 50 percent. were not allowed to film on site so easy dr i but they are shows us the reservoirs. underneath a solid layer on the surface there is liquid mud. and i want to know what we want to hear some very acidic and there's been contaminated heavily that's really caught up production if the dams break then a much bigger catastrophe could happen then 20 years ago. in the village next door nobody wants to believe the scenario most families here lived off mining until the factory closed for 15 years mining has restarted 3 years ago and many are happy to just have their jobs back i love you know how my lives have been reinvigorated by the opening of the mine that i drew off a model with all its modern technology how could i not get that. one can

up.t of big names coming rio tinto,or forecast to return as much as $4 billion.back plans maybe from standard chartered. rishaad: we will be talking to a ceo here. don't miss that. it's at 1:15 this afternoon, hong kong lashing a door -- hong kong/singapore time. open: coming down to the in about an hour. it hasn't been good in india. it doesn't look like we are going to get to change that to net the open. it's a down day across the region. a short covering, of course. pull back on the indices wednesday. thursday looks a little different. yesterday's session, there could be -- yesterday, some short covering to take up the index. we find the end of the day gained about 0.3%. banks doing ok. the mid-cap index fell in line with what the large caps were doing in yesterday's session. the structure still remains very weak and fragile on the index. on the downside, we have once again rescaled, 11, 100. looking at session, how it is set up, we may see a softer start, but the rest of the day is going to be more earnings driven. we will watch for that. rishaad: oppenheimer

at some of these other names, rio tinto with an upgrade from jg -- jpmorgan, samsung up 2%.al look, flip the board. let's look at big names in hong kong. up,ay pacific, mtr 3% analysts have taken a cleaver to the price of cathay pacific and a lot of you have seen the strong sell recommendation on the stock. we will get you the latest on hong kong at the airport and we are just getting some comments out of china saying the u.n. agency's sent a strong signal. we will tell you what that means when we are live at any airport. this is bloomberg. ♪ loomberg. ♪ su: 10:29 a.m. in hong kong and shanghai, 10:29 p.m. in new york. i'm su keenan with the first word headlines. the latest economic data from china shows the increasing effect of the trade war. 4.8% inal output grew july, the lowest pace since february 2002. again andfell there is also a dip in cosmetics demand and clothing and household appliances. worry that china's unemployment rate rose to 5.3%. u.s., president trump has bowed to pressure from corporate america delaying additional tariffs on certain projects imported from

rio tinto's shares take another hit despite the first half results. announcing a special $1 billion dividend thanks to a windfall from a rally. we have the machine writing lots of cash day in and day out no matter the market conditions. the outlook is very important. as expected, i have no doubt in my mind they will put it back in play. therefore the demand for steel will continue to be very strong. ♪ emma: you are watching "bloomberg best." this week, bloomberg editor-in-chief traveled to mexico city where he sat down withn exclusive interview the mexican president. he says interest rates in his country are too high. the central bank will stimulate growth. thing is what is to be desired and another is what is possible. i would like the central bank to not only control inflation but to think about growth as well. we are talking about what the central bank is doing. level and cautious, about inflation. a bad thing. this is not the wrong thing to do. i'm not saying that. it is important to lower the rate to encourage growth. this is an issue i am leavin

david: rio tinto said they were ready to go out negative -- rishaad: what would precipitate it? michael: a continuation of what we are already in. any chart of bond yields is clear where the direction is. we heard in the news a 30% chance of a u.s. recession next year on one indicator. modeln has model -- house has 80%. is it a global recession or just the u.s.? it depends on the model but nothing argues bond yields should be going higher from here. until the how long u.s. has to get to the same level as everybody else? david: if you want more positive commentary, stay with us because this is bloomberg. michael every will stay with us from rabobank. also, living in a tinderbox. how hong kong's troubles are hitting the property market. address.modi's kashmir this is bloomberg. ♪ rishaad: the philippines delivered a quarter percentage point rate cut thursday. the central bank governor, citing slowing economic growth and inflation drivers and sees another rate cut this year. >> right now what we are contemplating is another rate cut of maybe 25 basis points. it could come as early

. >> rio tinto's shares take another hit despite the first half strong results. announcing a special $1 billion dividend thanks to a e rally. from an iron or >> we have the machine writing lots of cash day in and day out no matter the market conditions. the track record is a testimony of that. the outlook is very important. the key market, china, the outlook is positive. as expected the chinese economy is slowing down. i have no doubt in my mind they will put a stimulus package in play. therefore the demand for steel will continue to be very strong. ♪ emma: you are watching "bloomberg best." . i am emma chandra. this week, bloomberg editor-in-chief traveled to mexico city where he sat down for an exclusive interview with the mexican president. he says interest rates in his country are too high. he helps mexico's central bank will bring them down to stimulate growth -- he hopes mexico's central bank will bring them down to stimulate growth. >> one thing is what is to be desired and another is what is possible. i would like the central bank to not only work on cont

paul: bhp is a much more diversified miner than rio tinto, which produces iron ore.look around bhp, the ones we talk less about -- coal, copper. however those looking? david: copper, they are struggling with a big project. keeping a lid on that return. regionper price in the for some time now. it does not look as though there will be any significant rally. they will be looking at those assets and saying shale, what are the return on assets? the returns they are expected to get. how much capital to get those returns. i think at this stage, they are looking at a couple of assets and thinking we may exit these in the future, if we can get a reasonable price. paul: you look at the commodities sector more broadly, how much is the future really hinging on the trade deal at the moment? , where the trade deal impacting is on expected future growth of the world. that is where it has been difficult to get a handle on slowly we sort of been watching those growth numbers winding down, winding down, winding back, i should say. that doesn't mean there is going to be pressure in th

minors likeon those rio tinto. they are certainly going to get the pressure today.us: battered and bruised from every direction. thank you very much. breaking news your bloomberg terminal. -- aman company urging value shock read headline. they are demanding a full separation of the auto business. they are demanding a comprehensive strategy review, demanding more ambitious buyback program from scott 24. they have a 7% holding. havegoes back to what we seen several times, the rising level of activism within u.k. stocks. let's get your first word news headlines from hong kong. china is asking its state owned businesses to suspend imports of u.s. agricultural products. funds will wait to see how trade talks progress after president trump escalated tensions with beijing last week. --osing tariffs on other another 300 billion dollars of chinese goods. two mass shootings in the u.s.. at least 30 dead and many more wounded. a crowded walmart in el paso was the target of one shooter. 20 were killed before the suspect was arrested. hours later in ohio, a gunman opened fire. h

rio tinto down almost 4.5% right now.en remotely related to copper, but especially those that mine it are going to hit -- get hit today as you saw the drop in copper. luxury stocks losing. as well as some of the other oil stocks down, too. bp falling right now. royal dutch shell falling right now, being a big weight on these indexes. european markets opening lower. >> this comes as trade escalated between the u.s. and china, spurring the biggest selloff in asian equities since october. joining us now, the head of macro strategy for india at state street. not great news if you are long the markets, i suppose, but we see european equity markets opening down by just over 1%. -- give us the context through which you look at the latest developments. i have heard some suggest we need some kind of circuit breaker between the u.s. and china. what's your thought? >> i don't know what that circuit breaker is going to be near term. if you work of the belief that a lot of this was trump electioneering such that he could get positive

diageo,rio tinto, barclays have also gone ex dividend.see ex dividend, unilever, which is a big stock, standard chartered, astrid zeneca. on thee going to weigh stoxx 600 a little bit, but in general you do see european markets moving firmly higher. fixinget the yuan slightly stronger. bond yields also recovering a little bit. joining us now is the ceo of latitude investment management. let me first ask you what you think these historic lows in bond yields mean. is the credit market telling us that a recession is around the corner? >> that is certainly one read of it and it is certainly telling you that glove -- growth is slowing, but we still do have positive growth in developed markets. this would indicate that we are close to an inversion, but we are not quite there yet. i don't think it is yet necessarily a guide to a recession coming in u.s. in particular, but i do agree with some of the comments from pimco that yields can go a lot lower from here and potentially all the way down to zero, especially if we and up in a recessionary sce

pharmaceuticals down, as well as rio tinto and bhp, those are your miners also falling.neral, european markets are up higher this morning as president trump reiterates his call for a big fed cut. investors set their sights on german jay powell's speech at the jackson hole symposium. joining us now out of london, the chief investment strategist at lombard oda investment managers. what do you expect from jackson hole and do you think that optimism for what jay powell is going to say, what the fed is going to do is the reason behind the lift we see in the markets? >> good morning. definitely. i think the markets, especially the bond market, the moves have been very aggressive, especially after the re-escalation of the trade war. one of the major reasons for that is that the market knows that the fed is developing this reputation for making u-turns. we saw a big u-turn at the start of the year. it in their change in stance. i think the market is basically forcing the fed to come up and show cuts. we are expecting a cut at the september meeting so that it gives some room to t

china sparking fresh concerns about the demand side story to keep an eye on rio tinto, as well as theteelmaker this morning. we will watch those. obviously we are looking at, or out, i should ask you, is it a bidding war? >> i suppose we are getting towards bidding war territory. they have put in another offer. you will see shares and they have made the offer go in opposite directions. they are getting a higher offer. their shares have jumped at the open. they have not been super happy when the bid was for us revealed their shares fell. it is being called that they will head lower again. two stocks moving in different directions on the same story. both for joining us. you can get all the latest stock stories from our equity steam by typing first go on your bloomberg terminal or via the mobile app as well. i want to quickly tell you that it looks like we are going to ceo. new they say they support the at abb.ent the cofounder. a large forward writing and email and of course a big stakeholder there. you could see that. they are on the board according to our producers. you could see that

rio tinto also putting up a gain of 1.2%. astrazeneca and lacks a smithkline both gaining, as well as cnh. watch that, the fiat related company and daimler. watch carmakers today. on the downside, bp is off two thirds of 1% as is louis vuitton, hsbc falling as well as novo nordisk and richemont. more winners than losers is the basic message. as a result, european markets urging higher at the moment. traders have been grappling with some end of the month volatility and the him as an -- imminent imposition of tariffs on china on sunday. with us, the cio at royal london asset management. let me ask your take on the trade war right now. does it look like we are getting closer to a truce between the u.s. and china? not so.in short, ultimately, you will have a constant battle. the critical thing is to observe whether they are engaging in e --ussions of helping th move things forward. it is interesting that the chinese have backed off from the escalation race. the important thing is getting down to identifying the critical issues th

it is actually up now as is rio tinto. b.h.p. group gaining. total and the miners are up.ntinued rally in crude oil. h & everyone gaining 4.5%. on the downside s.a. spmbings one of the big losers. it is a big, heavy company on the stoxx 600 as well. it is taking the most points. anheuser-busch is falling crels crew and lvmh. anna: rejecting that the fed should reject interest rate cuts that would help donald trump in the election. they said dudley should not bail out the administration that keeps making bad decisions on trade policy. joining us now, a co-c.e.o. very good to have you with us here. we'll start with this issue and the fed and the role of the fed. how political do you think the fed should get? >> i think his piece is great. i think he should bet back against the white house. the white house shouldn't be interfering with an independent fed. if anything, what the trump administration should be doing is criticizing the inversion of the in curve. anna: the op-ed said that the fed should set policy that influences politics. >> realistically, the point i'm trying to

we have seen the aussie dollar slipping along with this. 1.8%.wn rio tinto up 1.4%.s, their only product is iron ore. that is 3% or a shade under. more in a moment. this is bloomberg. ♪ paul: the unrest in hong kong continues as protesters moved to shut the city down with a general strike on monday. tensions flare between pro-and anti-beijing camp with 80 people arrested overnight. sophie kamaruddin is watching developments. the unrest showing no signs of abating. sophie: that is the general theme here. i will walk between the pacific mall and legislative council building. it looks like things are returning to normal after a night of unrest, which saw clashes between police and demonstrators. rubbish from overnight has been cleared. we saw an army of street sleep -- street sweepers clearing rubbish and posters, antigovernment anti-police posters. no end game insight. we think about the bigger picture, the government not making any concessions the protesters demands which have been unchanged. more demonstrations are planned in the weeks to come, including one schedule

coming up on "bloomberg -- the " rio tinto ceo.ker for an exclusive interview. you have to be something of a student of the credit markets, , you have totudent be making observations. i want to ask her observation about one of the most noteworthy developments in credit. loan thatillion apollo firm is making to finance the purchase of newspaper company connect -- gannet. this was alone that once upon a time you can only get from a bank. now you can get it from an asset manager. howard: and the bank would syndicated. they are not lend their own money. they would scoop it up rome others. it says there is a lot of money that can be collected by alternative management firms like apollo and oaktree. pension funds cannot make the returns they want. stocks and bonds except that, so they are looking to alternatives. money is flowing into alternative firms. apollo was able to compete and rent 1.8bility to million. , it ishen you say when because apollo was able to land at a lower interest rate than everybody else. howard: i assume it was com

rio tinto down more than 2%, added by following iron ore prices.eo was defending the stock, calling it a cash machine. paul: thank you for that. joining us from melbourne is kyle rotter. the past 20ry in minutes or so, goldman sachs saying it is raising concerns of a u.s. recession inspired by the trade war and it is saying it doesn't see a resolution before the 2020 election. is volatility just something markets will have to get used to now? kyle: absolutely. interesting point, the vix is down. we are in a situation with markets, take stocks aside because they are getting juiced rates, butrisk-free looking in the bond and commodity markets, we are on a precipice really, it suggests the slowdown in the global economy is coming quicker. we are now seeing repricing for an escalation in the trade war with expectation brought forward. the prospect is a major economic slowdown, and a serious one. paul: where do you position and a market like this? kyle: this is where you kind of -- this is where you see the kind of by everything attitude come into play.

the rio tinto chief executive officer. where do commodities fit into the dollar rally?g "surveillance." this is pound, cable at 1.299. with 1.21.fly flirt give a newswill conference later on. the following pound will certain down -- certainly dominate, as he updates on inflation and growth prospects. tom: interesting to see if he addresses directly pound-sterling. in new york city with our first word news, here is viviana hurtado. viviana: joe biden was the target at the democratic presidential debate, nine rivals going after him. biden counter punched and he was sharp the critical of kamala harris' proposal. >> there is no talk about the fact that the plan in 10 years will cost $3 trillion and you will lose your employer-based insurance. to be very blunt and straightforward, you cannot beat president trump with doubletalk. viviana: biden was trying to put to rest questions whether he is prepared to face donald trump. "as usual, powell let us down," trumpweet from president after chairman powell cut interest rates by a quarter-point. he does not see the move as the star

we will be talking to the chief executive of rio tenter later on -- rio tinto later on.. ♪ ♪ francine: fixing it. climbs as china sets its daily fixing stronger-than-expected. no yield is too low. 30 year treasury yields test record lows and pimco imagines a world where negative yields reach the u.s. -- warninging of a that the sportswear giant -- adidas warning. the sportswear giant says the trade war will hurt all. good morning if you are watching from asia. this is "bloomberg surveillance." yields, yields, yields is all anything is watching -- anyone is watching. tom: i think you are dead on about it is a yield morning. it is thursday and almost a normal day. we are on the edge of stability here and actually talking other stories. there is still this huge yield shock. even the austrian 100 year bond has given a pause in its price appreciation. francine: we will spend a lot of time looking at that. you are looking at the u.s. 30 year. switzerland is one we spent a little bit of time on. let's get straight to the bloomberg first word news in new york city. >> there are

— their shares have been hit because of the falling prices of base metals...so bhp billiton and rio tintovaluable materials. the royal society of chemistry estimates there could be up to a0 million unwanted devices squirreled away in homes across the uk. our science correspondent victoria gill reports. most of us upgrade and replace our smartphone about every two years. but as we embrace all that new technology, our old gadgets are piling up. 0h, 0k! wow! and like many of us, louise has a hidden stash of different devices. there could now be as many as a0 million pieces of old technology languishing in drawers and cupboards around the country. that's according to a new study that investigated how many of our old gadgets we now have just stowed away. there's another one. recycling is part of our life now, and if you are doing that with all the products you use on a day—to—day basis, you use these on a day—to—day basis. when you see them all together like this, what does it make you think? 0h! as i said before, ifeel a bit ashamed, because actually, we are not dealing with it, are we? this