too much ground water was removed in shanghai. only to mention this led to a severe increase in subsidence. dimensionality we're told this three d. model shows how subsidence occurred at different times. late that you mentioned here you can see what happened between the one nine hundred sixty s. and two thousand and ten and the dimension we can see that subside lots of been worsening steadily until the implementation of efficient measures to slow it down bushy and keep its evolution under control. that ali. it was only in one thousand nine hundred sixty is that laws were created to regulate the pumping of water the chinese were the first to recognize the scale of the subsidence. dimity ashit on some say it's a reverse of boat you want. it poses a significant threat to shanghai skyscrapers i'm sure they aren't and it also has an impact on urban infrastructures only in china. the offensive side and it was established in one thousand nine hundred eighty one in shanghai that they've measured a lot of elevation of two to three meters.

the shanghai bureau chief there. we are looking ahead to the open in shanghai and hong kong.nghai remains in that bear market. ♪ ♪ 9:29 a.m. in hong kong has we count down to the china open. looking at chinese equities in a bear market. with the longest losing streak in four years. trade tensions simmer away. chinese assets under the spotlight. looking at the commodities area. , concerns about iranian sanctions and how that can affect supply for the oil market. crude surging past $70 a barrel. $70.30 in the session so far. is all not painting a pretty picture. let's get to the open. sophie having a look at, well, what have we got. >> stocks extending losseslet's. , bear market territory, third day of declines. shanghai composite in oversold territory over the past days. up .2%, set to snap a two day drop. the shenzhen composite looking little changed. some slight released for the offshore yuan after a nine-day slump. the pboc is protesting the depreciation of the currency with the latest yuan fixing. shares losingte ground after rising 4.5% tuesday. u.s. senators reportedly n

over 1000 stocks in shanghai limit down over 10%.d chinese authorities are appealing for calm in newspapers. it is a mixed bag. some suggesting we could see a bounce. the pboc with a stronger fixing, weakening that reference rate by .5%. royaleossibly a battle to take place there. the fed looking at trade tensions closely. they could result in higher inflation in the short-term least. the open is upon us. here is sophie. today for red mainline markets. the shanghai composite off by .6%. x under pressure. this for the brunt of losses from the mainland market along with the shanghai composite. in hong kong, gaining .3% with technologiesac seeing gains. optical seeing losses. today's fix stronger-than-expected, perhaps an attempt to stop depreciation. we saw the offshore yuan reversed earlier moves, now around that handle. keep an eye on the yuan throughout the session. moves, set for the first gain in five sessions in hong kong. check out the day-shares falling by the daily limit on the mainland. rishaad: thanks a lot. trade tensions a

stephen engle there was the chinese side, out of shanghai.ng of anti-china sentiment, let us look at what washington. in treasury secretary, stephen mnuchin, has denied that china is the main target of these emergency laws to protect sensitive information. sources have told bloomberg that the white house wants to declare some chinese tech investment as risk.rity our international editor jodi scheider is here to tell us what exactly it is seen as a defeat mnuchin.en >> but treasury secretary has been trying to be less confrontational on trade issues, particularly with china. as steven noted, he has come out and said, these restrictions are not just about china, we are trying to deal with a trade on an international basis. but of course, various memorandums say differently. months ago said that investment restrictions are targeted against china. on one level to attempt down some of these concerns, to make it about a global issue, but at the same time, it is appearing more and more likely, that these investment restrictions, if they were going t

yet the information has been officially published by the institute for ground subsidence in shanghai. you believe in recent years with the launching of large scale urban construction land subsidence has accelerated. in spite of the possible consequences buildings continue to be built this chinese dream seems unstoppable. but it was. elsewhere in the country new urban centers are developing. was peace development plans ignore the warnings and they run the risk of causing ground subsidence as in shanghai up because. it. was. in japan the greater tokyo area has a population of thirty seven million. it is the biggest urban center in the world. it is also among the coastal cities threatened by flooding. for more than a century the japanese have struggled to protect their cities against flooding. you know. in one thousand and ten we had a very big tie for long which came up here and there we got a very serious for the government of the time decided to excavate this diversion charles was out the city with to get rid of the front. so therefore this sort of a bomb was rocket zero point five me

look at shanghai index in particular. shanghai is getting hit. a huge hit and you can see just it's about 3:00 in the morning in china right now. we're guessing traders over there haven't gotten a good night's sleep as they await the shanghai stock market to open, that happens in 6 1/2 hours here. already china stock markets hammered by trade war fears. with the shanghai composite down 3%, tumbled nearly 11% since the president announced the tariffs on steel and aluminum march 1st. that compares to 2.5% gain on the s&p 500. shanghai index sitting in correction territory, very close to a bear market and by the close, the escalating fight with the u.s. had sent 1023 chinese stocks plunging by more than 10% apiece in a single day. that would be disastrous for the u.s. we are not seeing this right now. to the floor show, gentlemen, will u.s. markets follow shanghai's downward fall or are we copacetic because we need -- they need us more than we need them? matt cheslock. >> the hamster wheel has fallen off and currently trying to get back on. we're go

well the shanghai cooperation organization has eight members as and four observe the states as well as china and russia the other countries a cosmic star and kyrgyzstan to take a stand and back of front as well as the newest members india and pakistan as we mentioned north korea is a major concern so is the us withdrawal from the iran nuclear deal iran is one of the observer states and is seeking for membership for the organization and so as of ghana's farm president of ghana has called for more economic and security support from the s.c. and the shanghai organizations being seen as a platform for india and pakistan to engage with each other over their disputes including kashmir china's massive belton road construction project is also up for discussion the trade plan spans more than sixty countries in asia the middle east you have and africa boss india refuses to be a part of it well let's bring in our guests now from singapore by skype is graham on the web a research fellow at the s. rajaratnam school of international studies from beijing china tangan a china political analyst who adv

shanghai composite closing down 20% from its highs set in late january. joining us now to discuss, michael every at asia pacific. good to see you, michael what do you make of the move in the chinese equity index >> well, it is not really a surprise given the prevailing backdrop one wonders how much more of a down side there can be given that we are already having whispers of the plunge protection team stepping in or having a quiet word off camera with brokers telling them not to sell shares that have got margin calls coming in place. but nonetheless i'm far from positive >> china's bank decision to cut equity, is that a reason to buy chinese stocks here? >> simple answer, no because what they are going to do with that liquidity is effectively debt for equity swaps. so the global backdrop in terms of the potential trade war is far more negative in an what the relatively small targeted to smes actually represent. >> one of the interpretations of the steep underperformance of chinese stocks specifically mainland geared chinese stocks versus the u.s. market i

he welcome a meeting with trump this comes as china poses a much more harmonious meeting of the shanghai cooperation organization. and north korean leader kim jong un makes an unexpectedly early arrival in singapore president trump said he will run for their highly anticipated summit later today could he hit the ground running. thanks for joining us i'm mary and i haven't seen an acrimonious and to the g. seven summit in canada after all seven nations signed a final communique seemingly finding common ground with an agreement on the need for rules based trade us president donald trump withdrew his country's endorsement with a tweet is the first time a g seven gathering has ended without a joint statement and it followed two tense days of talks. is the german chancellor lecturing the u.s. president is the us president being belligerent whichever way you look at this photo posted on instagram by angle americans office you can't ignore the tension that tension was evident before during and even after the g. seven summit ended in canada donald trump made sure of that he'd already angered his

worlde live at the mobile congress in shanghai..oined by big names later will speak to the world's , is viable ai startup cofounder joins us at 12:30 p.m. sydney time. this is bloomberg. ♪ kathleen: we have to bring you new zealand's latest trade balance numbers for the month of may. two hundred 94 million new zealand dollars, that's the sum of the trade balance, exceeding the survey of 100 million, more than the prior month. exports rose nicely, 5.40 2 billion, imports up 5.12 billion and a number that's looking a bit better than forecast. the new zealand dollar there still trading a little bit weaker as we head into trading in new zealand and asia. haidi: the question is, does it actually move the needle given policythat monetary decisions this week. probably not, kathleen. you may have heard of the group , they have aicorns combined a relation of $300 million, topping the list of chinese tech stocks. the social media stars have also begun their own ascent in the highflying, rapidly changing chinese tech arena. one partner told b

kong, shenzhen, and shanghai. looking to a flat start in shanghai and hong kong.king the dollar, one of the big stories. the greenback set for its best week since 2016. there we have it. the hong kong and shanghai open is next. ♪ ♪ rishaad: 9:29 a.m. in hong kong as we count you down to the last trading day of the week. not many tailwinds. butnasdaq hit a record, lackluster elsewhere. thatig news from the ecb they will not be raising interest rates for more than a year. it could mean mario draghi could not be there and it will be his successor that institutes the first rate hike. that statement sending the dollar higher, the yen 110.50. trading there. the pound at that handle there as well. terrorists and trade again, that spat between washington and beijing continues. home prices out of china. it is time for the hong kong and shanghai open. we are seeing the hang seng down .1% on the open. it is pretty flat now. we could see some positivity. the shanghai composite starting 300, down is the csi .3%. asia,a mixed picture in the final trading day of the week. we hav

look at the shanghai and the hang seng markets. those down almost three, almost 4% respectively in europe. red arrows as well. all of this in reaction to a possible trade war between the u.s. and china. >> the immigration debate continues this data families at the border and the effects of america's so-called zero tolerance policy. the white house going on the offensive. >> it is very strongly that democrats fault. they were obstruction, really obstructionists. it will not be a migrant camp. >> george w. bush administration policy advisor in law and policy manager. let's get started here, guys. despite a wave of criticism from some of it coming from their own party, the administration standing behind the policy of separating families saying it's nothing new. but here is a g jeff sessions last night defending the policy. listen. >> we are doing the right thing, taking care of these children. they are now being abused. the health and human services holds them in good conditions. they worked hard at it. we spent a billion dollars last

shaping the world order china host the shanghai cooperation organization. canada russia is also a major player in the ukraine eight countries which include some of the largest populations on the planet so how much power does the organization wield this inside story. of the program i'm at the top of mix messaging from russia and china appears to be drawing ever closer in an alliance there at the forefront of the two day shanghai cooperation organization eight countries seeking to expand economic and strategic links with some of their neighbors where president vladimir putin's already announced new trade and investment agreements with his chinese counterpart xi jinping is calling the russian leader his best friend reports from beijing. a friendship medal for russian president vladimir putin awarded for what china says is putin's outstanding contribution to china's development. it's a sign of ever closer ties between the two men and the two countries both announced several business deals including a joint investment fund in projects in china and russia the clo

and on the shanghai futures exchange we've only got about thirty seconds but i want to ask you about aluminum which you also cover there's been sanctions and there's also been tariffs on aluminum that's what's having the biggest impact on aluminum price i think sanctions are the bigger story globally that it is there because of roussel or other things because of rusalka roussel is a major global producer something like six percent of all global production primary production responsible for if sanctions effectively quarantine russian production that has an impact on the global market which we saw back in april when the sanctions were initially and john mother saw with i.h.s. market thank you so much we hope you'll come back and dig into these issues more thank you. and starting tomorrow the group of seven or g. seven summit begins in canada the group consists of canada france germany italy the united kingdom japan and of course the united states each represents a large advanced economy comprising more than sixty percent of global growth domestic product this year in particular are exp

that -- shanghai trump is it.hat -- shanghai composite. seems like we have been talking about these trade tensions that have been weighing on the market. there was all this hype during the inclusion of chinese shares. the benchmarks were that this would be the catalyst to turn things around. why do think it has not materialized? eleanor: the msci inclusion was so small that we would not see that drastic inflows into the markets that would be enough to render anything significant in terms of a big main man equity boost. small butat being a diplomatic start, that is really symbolic of the fact that over time we could see the msci inclusion increase to around 15%. at the moment it is euro .73%. if we think about that and we were to increase the inclusion over time, at that point the foreign inflows would have a massive effect on the market. we saw last week where we had that big one-day decline in trading. there was a lot of concern about when the national team would step in and where the pain threshold is. as you wo

we are at the congress in shanghai.s there to find out how trade tensions could affect the tech and mobilephone industries. we have the director general joining us from shanghai. we also have the market open, coming up next. this is bloomberg. ♪ ♪ yvonne: 8 a.m. here in hong kong, i am yvonne man. asia.e to daybreak the top stories is wednesday, asian traders hoping that the worst is over after wall rebound. oil gains helping to overcome similar interest concerns. the worries pile up for china, shanghai is in a bear market, yenults are rising, and the threatens to lose control as an economic anchor. kathleen: and i am kathleen hays in new york where it is just past 8 p.m. canada joined the eu, preparing new steel quotas as more global barriers go up in response to the u.s. tariffs. ♪ yvonne: kathleen, we are hoping for some relief in asian markets, but the oil price is what has been dominating the trade tensions. we did see president trump dial back a bit on what he announced on friday, when it comes to investment restr

and china are key areas of growth, your advanta-shanghai route -- atlanta-shanghai route restarts next month. what are your views on the tariff debate in washington, particularly as it relates to china, and how else could those tariffs impact delta? tariffs impacted is positively, seeing the administration speak out. us positively, seeing the administration speak out. i am not a tariff expert. trade wars and a terrace in general are not good for business. in general are not good for business. there are legitimate concerns that ought to be addressed. betweenpect to travel china and the u.s., it is growing in double digits. we have not seen any slowdown or pullback in any meaningful way as a result of some of the more recent headline news about pending tariff actions. if you see the cost of steel or comingm or commodities ick to impact us in some way, am not an international trade expert -- i am appreciative of what the administration dead to address our trade issue. did to address our trade issue. are you looking to expand your partnerships in china? we announced we just started flying

the shanghai stock market has entered bear territory the shanghai composite index is now at a two year low having fallen by one point five percent in wednesday's trading at more than twenty percent since a high in january markets across asia also fell the gravitational pull from the shanghai exchanges fall with the hang seng down the percent the shans and composite index also fell by one point eight percent as did exchanges in australia and south korea the bearish turn in asian markets has erased an estimated one point six trillion dollars in value on paper at least according to the south china morning post telecoms have been particularly hard hit or a notable area of weakness with the troubles of chinese tech giant dragging down the c.s.i. three hundred index that c.s.i. is a capitalization weighted index which seeks to replicate the top three hundred stocks traded in shanghai and then and has been reflecting some general anxiety about the future of chinese tech stocks as we reported recently u.s. policymakers are currently considering what prohibitions should be placed on u.s. compan

is nuclear program trump the strive that as a one time shot at peace it's day two of a summit in shanghai leaders from india china russia and pakistan were among attendees at the shanghai cooperation organization talks north korea and regional security dominated the agenda florence laurie has more from beijing. well the shanghai cooperation organization or the s e o is seen by some analysts as a sort of counterweight to the groupings led to dominated by western countries such as the g seven now the s e o was set up in two thousand and one china and russia being the leaders of this grouping whether or not it means the c.e.o. can step up to fill this void or china even to fill this void now we live in fear but what we are seeing is china increasingly ready to step on to the world stage even forging alliances with old rivals such as india to chip away at the dominance led by dominance let by the u.s. and other western countries in the international world order saudi arabian state television says three civilians have been killed in the south of the country are understood to have died followin

well the shanghai cooperation organization or the c.e.o. is seen by some analysts as a sort of counterweight to the groupings led to dominated by western countries such as the g seven now the c.e.o. was set up in two thousand and one china and russia being the leaders of this grouping the other member states include countries like karega stan and kazakhstan not really big players in the economic or international arena but they've recently included india and pakistan and that gives those drooping a little bit more clout especially seeing that india is the fifth largest economy in the world now what we're seeing in the g seven is perhaps an indication that the u.s. is more and more ready to leave behind its old alliances be seeing the g seven and as well in the climate change summit in paris a couple of years back that the that. the u.s. may not be ready for its leadership role it may be it's willing to spurn these old alliances whether or not it means the c.e.o. can step up to fill this void or china even to fill this void now remains to be

see the shanghai composite has dropped into a bear market.k at some of the technicals in terms of momentum, this is the sixth day that the shanghai composite has been in oversold territory. we wait for that to go back above that green line at the by impetus.ve a -- buy impetus. u.n.,re looking at the continuing to depreciate. the longested losing streak in record, 10 days of losses. this is an interesting chart. we have seen this relentless weakening in the yuan, it provided stability in the region, if you look at dollar- forwards, they're looking at stability compared to 2015. tradersng that perhaps are not betting on sustained u.n. depreciation. -- yuan depreciation. finally, taking a look at oil. holding the gains from yesterday, we saw been -- wti jump in yesterday's session. we also did get some inventory data that lead to the jump yesterday. manus: thank you very much. let's get your first word news. president trump has signaled he may take a less confrontational path towards curbing chinese investments in sensitive american technologie

these are the shanghai cooperation organization talks with north korea and regional security dominatedthe agenda. saudi arabian state television says three civilians have been killed in the south of the country they died in following solid sag by yemen based who three rebels three year conflict has killed more than ten thousand people in yemen and displaced at least three million. latest from saudi arabia the united arab emirates and courts a look at how they can help jordan out of its economic struggles the european union's top foreign policy official traveled as george on saturday to meet king abdullah the second it's the war in june now stay with us. cairo the morning of monday the fifth of june one thousand nine hundred sixty seven . a day that will change the history of the middle east. a plane is waiting to take off toward sinai. marshall apted hacky mohammad a deputy supreme commander of the egyptian armed forces is making a morale boosting visit to troops deployed on the borders with israel for the last three weeks. than it was of the shut. up. and no. c.s.e. on what. we have g

here in shanghai, there are now more than 6,500 coffee shops.ere is one on every corner would be a gross understatement. on this corner there is one, there is two. and there is three. the average person in mainland china consumes just three cups of coffee per year compare that 36un30 cups per person in the it cups in the u.s. but that demand coupled with the impact of climate change and the world's coffee supply could lead to a caffeine crash. fewer beans, and higher prices for consumers. >> in the next 30 yebert two toe million tons of coffee. and currently, the global supply of coffee is 6.9 million tons. >> if coffee does take off here is there enough supply? >> no. >> thankfully, there is still all of that tea in china. >> that is the "overnight news" for this thursday. for some of you the news continues. for others check back later for the morning news and cbs this morning. i'll also see you on sn digital streaming network. check it out. click the live window. from the cbs center in new york from the cbs center in new york city, i'm david >

the line and white is the shanghai composite.io has dropped 11.5 to 13.5 in january. goldman saying load up on chinese stocks with factors like growth and the msci inclusion providing tailwinds. equities,o chinese the risk from rising debt defaults is looking limited as regulators want to avoid major disruption to the market, but volatility likely to remain as more defaults are likely on the horizon. policy have spurred on some about borrowing with the recent measures. checking in on suppliers in china for zte given it may resume business, highlighting one company that receives 46% of its revenue from zte. that stock jumping 8%. jeffries expecting zte may be in business next week and has cut its target. checking in on foxconn popstrial, we did see that to the premarket limit. the listing has caught a lot of , the largest money since 2015 in china. from anet's get more investment strategist at credit suisse. talking about the impact of the emerging market rout overnight it comes into this trend of central banks in the emerging mar

that's right now the shanghai cooperation organization is made up of. eight countries in it was set up in two thousand and one it's led by china and russia they've recently included india and pakistan into the grouping with the addition of india now and this group has a lot more clout india being the fifth largest economy in the world and you've got china the second largest economy in the world in this group now the other countries that make up this membership are countries like to take a stand and kazakhstan so it's not an extremely powerful grouping in terms of having economic leverage and being being players on in the international arena so i'm not sure if it would be up to the challenge of filling in that void but it is increasingly clear that the u.s. may not be ready to be a leader in the international arena other countries may step up to fill that void or other organizations but what we are seeing though is china and russia are increasingly bready to step up and chip away at the existing international world order or florence lou there thanks for

the shanghai composite off one third of a percent. at elsewhere, the nikkei about one third of 1%. support from a weaker yen. the yen, slipping after the boj and announced it is cutting its bond purchases. markets, not seeing too much reaction to the move since they have gotten used to changes in buying operation. i want to highlight what is going on in korea. up 687%. -- six eighths of a percent. the last word on oil, set for a second weekly loss as u.s. output surged to a record and the opec situation remains in flux. oil has lost about 5% last week. andbti sticking below $68 barrel. is in sydneyllen with your first word news. paul: the white house expects a north korean delegation to visit washington friday to deliver a letter from kim jong-un. such a trip would follow talks between the spymaster and secretary of state pompeo -- mike pompeo in new york. pompeo insists things went well and both sides are still planning for the historic summit in singapore on june 12. challenge a difficult , make no mistake about it. there remains a

performed rituals to pray for their safe return scott heiler has more from the cave entrance in shanghai. a third day of searching for these

the shanghai is going into bear market territory.here may be emerging market. >> but that is the point. you want to be buying the markets in bear market territory. you don't want to be buying them at all-time highs. i'm talking about dollar cost averaging into these markets to build a position. >> i do want to ask you the senate now is considering ways to limit the president's authority and tariffs. this has been the story for the week whether it is bob corker from tennessee or orange hats both coming up with ways because the president's national security saying this is harming the market. this is harming businesses. they want to stop bad. they seem to be ignoring those voices in washington. how do you respond to that? >> again, investors have a lot to think about right now because we were such evated levels of the markets but they are helping markets. relations are high so that causesittle bit of additional uncertainty. it is just tough right now for investors to think about insurgency from political risk. lighten up, let off the ga

thank you for that let's pick up on the china angle there china's been hosting the shanghai cooperation organization summit is go live now to florence and she's in beijing says several things have already come out of this summit one of them that emir putin says that he wants to meet when trump is ready. that's right now he said that he's ready to meet u.s. president donald trump face to face thought to be uprooted his remarks come just as donald trump said at the g seven meeting that perhaps it was time to allow russia back into the g. seven fold now and trump's remarks angered the rest of the g seven members particularly british prime minister the reason may who's accused russia of meddling in her country's affairs and also of conducting attacks on a former russian spy and his daughter in march on british soil now these remarks by vladimir putin most certainly while very likely be welcomed by donald trump but not so much by the g. seven members now it looks like and if a meeting does go ahead with trump and with between putin and trump could we perhaps see russia being welcomed back in

well just one in twenty one minutes past the hour here in moscow the shanghai cooperation organization summit is under way in china and. is standing by to bring us the very latest after this short. i think that donald trump is really confident about his capacities ability to persuade people and the power of personality and all this kind of things and i'm sure the kids and then will try to play this card will try to give donald trump something. so he can show to everyone look i'm the first one i'm the one of the deal and the first one can make a deal with this guy every other american president before me failed i succeeded. exceptionally good little. to show. up. joining us for the program it is the second. state visit to china where he's meeting not only his chinese counterpart but also the leaders of various eastern nations a correspondent on the whole china for the shanghai cooperation organization summit joining us now live good to see you and. the summit isnt it. it is indeed a landmark year for the shanghai cooperation organization as well of course india and pakistan joined last

than on shanghai from a price-to-book ratio.he region, it is a sea of red and we see more markets across asia on the cusp of coming into the bear market territory. manus: it looks like the bears will have it before the week is out. breaking news on sharp. eye, they are announcing a cell of shares. up to ¥216.2 billion. sharp using the proceeds to buy back preferred shares and for our entity, a court -- r and d according to the japanese finance ministry. a little reaction there, sharp announcing the sale of shares. let's turn to our main story of the day. it is the white house officials trying to reach talks with china to avoid a trade war before the tariffs on chinese products take effect july 6. former u.s. government officials and chinese experts have been contacted to gauge the chances of high-level talks in the next two weeks. of -- isolio manager with us. alberto, july will be a big -- the sixth of july could have aches significance. how concerned are you and your company about the reality of a trade war? is it numbers or s

fuel futures are jumping over 3% in shanghai.ld's -- top m providing a boost into copper on these production risk. matt: let's go to the first word headlines. paul: optimism of a weakening trade spat is seen in beijing's purpose of american oil. america send about 330,000 euros a day to china -- barrlels of crude a day to china, from about 130,000 a year ago. weeks of back and forth comments and policy changes pushed 4.5%, wiping a a trillionwiping dollars off market value from the s&p 500. there is no evidence the fbi spied on president trump's campaign in 2016. ryan agrees that russia was the target of the fbi. connectedople loosely with the trump campaign may have been at fault, but it does not mean that chums campaign was infiltrated -- trumps campaign was infiltrated. more questionse to answer. it would have been helpful if we have gotten this information earlier. and if we got all the information we looking for, we could wrap this up. i see no evidence to the contrary of the initial assessment. >> the new italian prime mini

the shanghai composite hitting a two-year low thursday.e saw the yuan falling for a sixth straight session. what kind of impact would easing of the triple r deliver to the markets? >> may be not enough? it seems people are getting impatient for the pboc to do something. there were rumors yesterday there would be a big triple r cut, and a broad one at that. we have not seen anything so far. that is why the markets are so soft this morning. pboc may have to consider an , whichinterest rate cut would affect more parts of the economy, so a possibility, but so far keeping quiet. people will be watching the toity fixing this morning see the direction of the currency, which weekend yesterday. bank doestral something to comb everyone -- , but so fare down the bank has been quiet. haidi: there is always talk about the yuan being weaponize in this trade war. is it something they would likely do? >> i would say it will eat a last resort from their point of view. it is a dramatic thing to use it as a big weapon. seen in 2015 that it can have a substan

the shanghai composite went to lunch break up a quarter of 1%. after the lunch break, the asi 300 up a 10th of 1%. you still have a lot of weakness in a number of other markets, and that is sending the regional index down. in terms of stocks we are watching today, samsung electronics one of the biggest laggards, down by 2.5% in seoul. rebound weding the have seen in hong kong, and global brands, also listed in hong kong, rising the most on record, after a $1.4 billion agreement to sell its north american licensing segments. they are trying to stay competitive in that market. anna: thanks, juliette saly in singapore. trump ampligen will hold their first financial summit. the seek to reverse downward spiraling relations that have been exacerbated by findings in russian meddling in u.s. elections. the time and place of the summit will be announced today. joining us for the latest, daniel ten kate joins us. what will trump and putin talk about? john bolton is sort of playing down any formal agenda commitments, but there is a lot that could be on the

we have a little while to go before shanghai shuts up shop. we will wait and see how that progresses. that is the picture in europe. s&p futures are positive, around .41% to the upside. let's show you what is happening with the gmm. giving you guidance and what the other asset classes are looking like, have a british pound that is trading softer, more thing attention to. norway was positive, the ftse was positive yesterday. the s&p was not. there is another factor to put into the mix which is the arbitrage, the fair value story. the s&p price for the close, we did break 2700. it was negative. europe did not have that kind of story yesterday. they have to put it there this morning. the british pound is down by .2 of 1%. this was frank trading -- the swiss franc trading lower. the dollar is the dominant factor. let's get a bloomberg first word news update. sophie: european union leaders will gather in brussels to tackle a growing number of challenges facing the continent with a new government in italy and increasing pressure within angela merkel

it grows a maximum of 44% comparing a market value of more than 60 -- in shanghai or shenzhen.aomi -- the smart phone maker past its hearing yesterday and it plans to gauging investor demand in the next few days did it will be the first listing. that is your bloomberg business flash. -- this is what you should be watching in the coming days good a looming double trade dispute is set to overshadow the g7 summit as he gets underway in canada. anna: we heard from president trump heading back at macron and trudeau. he looks forward to seeing this to german. -- those two gentlemen. vladimir putin travels china today ahead of the shanghai cooperation foundation summit in tsingtao. the summitnder if name needs to be changed. i referendum that could put its central bank in charge of money supply. for more on that, katherine bulkley, good to see you. outline for us exactly what is being voted on. would haveproposal consumers accounts fully backed by central-bank money and held off commercial banks balance sheets. this is a bank is argued this would politicize it and harm the economy. >>

have just seen the chinese markets, the shanghai, enter a bear market.robably one of the factors behind that yesterday, a massive selloff around the world as the trade story got the market's attention. lord mendelson, the president of the international think tank european commissioner for trade now joins us on set. good morning. are in a real tizzy, should they be? should be.y we are faced with the real prospect of president trump's actions triggering a trade war that will essentially between -- be between the united states and china but will suck in other countries, notably our own and thes difficult to see how president can or will jump off this downward escalator. matt: where do you think we are going to see an agreement inside the u.k. government? angela almost a la merkel, theresa may has been able to fudge things and not go so bold as to please both sides. can she continued a-game? -- continue that game? noer: right now, there is brexit plan for the cabinet two years on from the referendum. they have been unable to agree. they won't get in -- a dea

stock market investors in shanghai and hong kong of had a tough day after the u.s. president threatened china with two hundred billion dollars worth of new tariffs the chinese govern quickly respond by warning of strong counter measures in the latest step of the escalating trade war donald trump warned he'll impose a ten percent tariff on chinese imports if china taxes u.s. exports. the leader of north korea is in china again kim jong un met the chinese president xi jinping the state t.v. says he's on a two day visit it's kim's third trip to china this year since march beijing is north korea's largest and closest ally in the world. india's ruling indian nationalist party has pulled out of the coalition governing indian administered kashmir promise and the ryndam ots b j p entered into an alliance with a regional party after an inconclusive election in twenty fourteen the state's chief minister. has resigned following the announcement indonesian rescue workers have been battling heavy rains and high waves in search of survivors after a ferry sank with possibly eighty

, down nearly 4% on the shanghai. hong kong losing nearly 3% look at the tech-heavy shenzhen. this is not an index you hear much about but you need to pay attention to it today. it's not only filled with technology companies but also relying on trade the shenzhen down nearly 6%. shenzhen is the third busiest port in the world. the dax is off more than 1.5%. all the major indexes here are in the red with the ftse 100 down 0.6%. oil, another big story oil is lower right now, despite some output cuts from libya because of fighting in an oil region in that country we'll get more on that concern over global growth taking its toll as well as the possibility that opec may dial back on its planned production increase more than expected. the opec seminar starting tomorrow the formal meeting and production decision will come on friday there is talk that maybe opec will dial back on those cuts a little less than expected. there is your setup. now to the news that is moving the markets. late yesterday president trump dropping the

the shanghai stock market has entered bear territory the shanghai composite index is now at a two year low having fallen by one point five percent in wednesday's trading at more than twenty percent since a high in january markets across asia also fell the gravitational pull from the shanghai exchanges fall with the hang seng down the percent the shans and composite index also fell by one point eight percent.

index, seng, shanghai financial, msci emerging markets.he key recommendation. >> talk to us about treasuries. where do you see them? >> we did it for the tlc. our clients had flexibility to buy futures as well. it's pretty for the fed flight deflation when the government is increasing debt. debt ultimately leads to deflationary forces. it has good for trade. we will probably stay long trade without a month or two. we are just looking at 30 year and 20 year. we like to look at long-term versus short-term yields. advisors. the thank you. our is having its best day in four years. more is taylor. >> this really is a north american story. they are finally showing some ground again. americanee the north finally rebounding after three quarters of losses. they're having a best quarter here in about five. adidas out of germany was starting to make some ground in north america some analysts are really happy a are starting to come back in a north american market area. well, analysts said that foot locker is an easier way to play the nike story, a che

the shanghai composite the most oversold since 2013.he offshore yuan, the slump stalling after 11 straight days lower, but now study. we -- study. while the pressure on the yuan is expected in the near term, you will see negative outlooks for transportation, utilities, and materials. stay defensive on offshore chinese stocks given this is the advice. rishaad: looking for the key reference rate and a short while from now. in forith china stepping support when the currency approaches 6.7 to the dollar, 1% the current level, nearly 6.63. richard frost is with me now. talk us through the findings. do you see the government stepping in and at what level? 6.7 is what the majority thought would prompt increase intervention from the government, daily fixing, could strengthen it more than people would expect, which would send a strong signal. directly byntervene getting state banks to be buying the yuan, and they could take dramatic steps, which is what we saw in the last fee years, stepping up capital controls. rishaad: jefferies looking at dol

shanghai composite is below 3000 for the first time since 2016.h to see if the national scene will set in this afternoon to stem those losses. has fallenthe psc lower by 2%. moving closer to a bear market amid fears of a weaker currency. early this morning, the central bank says it is ready to adjust rates further as needed. haven assets,on the yen below 110. ng. treasuries are rallyi the u.s. 10-year yield pulling up below 10.9%. losses,are extending trading near the days lows dropping 0.8%. a quick check on stock movers. i want to highlight some movers in hong kong. beijing capital airport plunging on a change in refund policy. that stock off by 23%. is plunging after the u.s. senate voted on a defense bill that would reimpose penalties. s areinese tech share lower. wh group leading losses on the hung saying down n early 7%. rishaad: let's kick it out to the chinese telephone maker. thehe mainland, the csrc, regulator, says it postponed a listing scheduled for today. xiamomi was a said to be among the first of the companies to get cdr's what is

shaping the world order china host the shanghai cooperation organization as. canada russia is also a major player in the eurasian group of eight countries which include some of the largest populations on the planet so how much power does the organization wield this is the inside story. of the program of the peron i'm at the top of mixed messages from russia and china appears to be drawing ever closer in an anti us alliance they're at the forefront of the two day shanghai cooperation organization eight countries seeking to expand economic and strategic links with some of their neighbors well president vladimir putin's already announced new trade and investment agreements with his chinese counterpart xi jinping is calling the russian leader his best friend reports from beijing. a friendship medal for russian president vladimir putin awarded for what china says is putin's outstanding contribution to china's development it's a sign of ever closer ties between the two men and the two countries both announced several business deals including a joint investment fund

chasing the world order china host the shanghai cooperation organization as g seven canada russia is also a major player in the eurasian group eight countries which include some of the largest populations on the planet so how much power does the organization wield this inside story. welcome to the program of a problem at the top of mix messaging from donald trump from russia and china appears to be drawing ever closer in an anti u.s. alliance they're at the forefront of the two day shanghai cooperation organization eight countries seeking to expand economic and strategic links with some of their neighbors well president vladimir putin's already announced new trade and investment agreements with his chinese counterpart xi jinping is calling the russian leader his best friend reports from beijing. a friendship medal for russian president vladimir putin awarded for what china says is putin's outstanding contribution to china's development it's a sign of ever closer ties between the two men and the two countries both announced several business deals including a joint investment fund in p

dimity music festival in shanghai mainstage thousands of music fans are cheering for us so a b. from germany the band from rostock can hardly believe it the german singing alternative rockers have never been celebrated by such a big crowd. their music has brought the five self declared village idiots from mecklenburg for common in northeast germany to shanghai one of the biggest cities in the world. i catch myself thinking look what we've done here it's been unbelievable really. i think it's the coolest thing we've done together tightly or something so. with its eighty thousand visitors china's media music festival is comparable to germany's rock. music manager got wind of the group and work them into a top spot. we went to the first agent oh yeah this is quite big but our manager said no the one behind it there was a second stage and this one would have been the biggest stage would ever played on the set again you know the one behind it and the so we went around and there was something i would never have guessed was this day because it was so big it was one and a half kilometer