shery: thank is so much, sarah mcgregor. bloomberg has learned that citigroup is preparing to cut hundreds of jobs at its slumping trading division. the latest thing to take action following a rough first half. no comment yet from citigroup. what do we know about these cuts? >> the cuts are pretty broad-based. we are expecting hundreds of job cuts across the fixed income and equities trading divisions. it's like you said, it's been a tough first half are trading across wall street. this is the latest thing to take this action. paul: so how does this fit in with other cost-cutting measures citigroup was warning of? jennifer: they are in a rare position. they have set some pretty lofty the return on tangible common equity. it's a key measure on profitability. usually in the first have it's the best time for banks, when we didn't see that materialized this year it means for city to meet the target they really have to cut cost to achieve those goals. shery: we have seen in drastic overhaul for deutsche bank, announcing 18,000 jo

economic team leader sarah mcgregor and tom mackenzie. let's start with you, sarah.hese tweets coming at a time where chinese officials are getting ready to wine and dine their u.s. counterparts. sarah: yes, it would seem like an inopportune moment for trump to be tweeting, chastising china for what he says is ripping the u.s. offer all of these years. i think it sets a tone as negative as they try to go into talks and build goodwill. at the same time, trump is telling us china has not come through on this pledge that president xi told him that they would buy more farming goods. those purchases were contingent on the u.s. giving special licenses to chinese companies to sell to huawei. that has not flown through yet. there is a lot of balls in the air right now. paul: angry tweets, broken promises. is it safe to say expectations are not terribly high? what does a good outcome look like at the end of this week? sarah: next dictation so probably about zero there will be a -- expectations are probably about zero there will be a deal. the two sides really allowed the nego

emily: let's get to l a where sarah mcgregor is standing by. at should we expect when these talks resume? sarah: it is really hard to know right now. that's the million-dollar question. we know from the u.s. side, they want to start off where talks broke down in may. they want to rehash that document that they said at the time was 90% complete. the u.s. says china reneged on some of the promises they made. it is hard to see, if they are starting off from dispute, how they will find a way to go forward. i think we will be all carefully watching for words from the u.s. side, looking for compromise perhaps on rolling back tariffs. from the chinese side, we will be looking for those promises of addressing ip theft and economic reforms. emily: are there some point where we expect they might be able to find some common ground. sarah: for china, the easy answer has always been farm purchases. but this is not enough for the trump administration. that is the ground they seem to cover time and again. we saw a little bit of easing on the u.s. side from tru

taylor: i want to bring in sarah mcgregor. stand, what has been the trump administration's reaction? like i was talking to earlier with isaac, we came out of the g20 feeling pretty good. what happened? sarah: we are hearing from them repeatedly. they think the talks are moving forward. they said today, robert lighthizer and steven mnuchin are meeting by phone with their chinese counterpart and continuing to talk. we don't know the substance of these talks. what are they actually talking about that is different from before with the talks collapsed over the issues you were discussing? china wants the existing tariffs to be removed. that married with u.s. demands that china makes hard-core reforms like the removal of state subsidies and codifying into laws like ip theft, cracking down on it -- two things china does not want to do and would never agree to. where are they going to find this middleground? i think that is the biggest question that is out there from these talks. trump and xi said let's keep working towards a deal, but

here with what to expect on this latest round of talks is sarah mcgregor.oins us from san francisco. what can you tell us about the state of these talks right now? h: it is the big question ever since trump and xi met. we heard from kellyanne conway, she said lighthizer and mnuchin may head over to beijing soon. we have heard musings that the two sides are speaking to each other in the but appears to be at a lower level. to kick the talks off, the top lieutenants on trade from both countries need to get together and push things forward. the big question remains, what is different this time? how will they get past the issues that caused the talks to collapse in may? time, we are same not clear what came out of the g20 talks. when the comments -- commerce minister is asked about the u.s. will make with agricultural goods, they are not confirming that. how are american farmers doing at this point? sarah: with the previous trade truce, china did to purchase more agricultural goods, things like corn, soy, pork. some rumblings that china has agreed to once again

caroline: for more, we are joined by sarah mcgregor and sophie elstrom. rah, talk to us about the orails surrounding huawei the lack of details. was it expected? sarah: there were a lot of questions on whether huawei would even come up in the discussions. did note, trump and xi come up with a trade deal. they just agreed to keep talking. the big issues that caused trade talk to break down in may have not been resolved. they said, you have got some leverage. you said you would go easier now on this huge company. if it is a national security concern, should we be giving it up? we don't have a lot of details. we do know that the trump administration plans to remove china from the blacklist. the murkiness,te we stop chip stocks soar on monday's trading. we saw euphoria across the board. why? easedo you expect to be with huawei? >> it is a good question. trump could have said the exact opposite and the facts on the ground could have remained the same. he said, we will not loosen up continue to offer some of these licenses. he came out and talked about going eas

economics team leader sarah mcgregor, thanks for joining us.y, we will speak live with the u.s. secretary of state. do not miss that exclusive q&a session hosted by haslinda amin at 10:00 a.m. hong kong time, 10:00 p.m. in new york. ofpite all the ups and downs the mining business, it is still possible to hit a sweet spot. share prices more than doubled as investors piled into the good news story. a rare earth's project as china indicates it might restrict exports. you seem to be in a real sweet spot. you have this project just north of us here in sydney. 15 rare earths, all of them so critical to tech. china restricting supply. when can we start? >> it is really interesting. from, youe volatility know, what we just heard about reallyesident trump draws him to this decision. in our case, we are looking to build a $1 billion u.s. facility. trend really going somewhere? our electric vehicles taking off? paul: we have a chart on the bloomberg that illustrates how china is controlling the rare earths market at the moment. it has been slowing export

remain.isions wherehead to los angeles sarah mcgregor is watching this. at can we expect from these talks? sarah: we are not expecting a lot of substance from the talks. right now the biggest marker of progress is the sides are meeting face-to-face for the first time since talks collapsed in may. robert lighthizer, steve mnuchin, these top trade negotiators will sit down face-to-face. what they can agree on at this point is not a full trade deal. a starting point for talks is a point of disagreement right now. the trump administration wants to start off with the agreement that they had when talks broke down in may. they said they were at 90% agreement before china allegedly reneged on promises. what china is demanding is for the u.s. to roll back the tariffs they put in place during the trade war and the u.s. administration is not willing to budge. everyone seems to be playing down the expectations. trump said china could be waiting for the 2020 elections. think china will probably say, let's wait. it is 15 months until the election. we will see if one of

paul: bloomberg senior trade editor seen them -- sarah mcgregor and china correspondent selena wang.sia couldtations in price its hong kong ipo towards the low end of the market range. is there demand in the public market? shery: next, jay powell amplifies his rate cut signal, suggesting there is room to ease. this is bloomberg. ♪ asia" this is "daybreak i'm shery ahn in new york. paul: jay powell continue to push the case for a rate cut during the second day of testimony on capitol hill. are we seeing other bond investors are starting to push back? kathleen hays the story. let's start with jay powell. he didn't really deviate at all from the message that a rate cut is coming. kathleen: the door is as wide open as ever. jay powell spoke to the he is concerned about a global growth slowdown. in large part because of uncertainty caused by the trade war. the link between unemployment and inflation appears to be broken. all these different factors, particularly around interest rates and expectations, maybe the fed has inadvertently kept policy too tight. >> the neutral interest rate is l

let's bring in sarah mcgregor. nice words, but not really any concrete progress. >> absolutely. big take away is that there does not seem to be a deal insight in the immediate future. they will speak again in washington, but that is weeks away. if we look at the previou were g fast, trying to get a deal. sides areikeoth willing to give this more time. it could have to do with august being a holiday month, but it really shows that this big push to get a deal, they have taken a step back from that. shery: there was also concern among u.s. delegates that the participation of the minister in the stocks could lead to a more hard-line stance from china. what did we see? view, as wellhis as the idea that a could show that china was more serious about getting things done. and reads you can try the tea leaves by who is involved, we have tried to do this from the white house, whether the hawks or the more market minded were in charge, it just seems like above all, getting a deal is going to be the hardest thing to do. the u.s. is stuck in its position of changing china's economy. china wa