well for more let's bring in our wall street correspondent sophie. sophie the u.s. president is hitting the turkish economy hard all for political reasons. well at this point trump is using trade policy to achieve something completely different than any changes to the trade balance this is not about trade christopher the turkey is not a major trade partner of the united states this number thirty two on the list and the u.s. actually has a good trade surplus with turkey of one point three billion dollars according to most recent data from two thousand and sixteen so this is about exerting pressure in terms of american prisoners being held in turkey first and foremost but not only because of the detention of american pastor andrew bronson vice president mike pence has already demanded his release and now the white house is just too raising pressure on top of that is true later to charm strategy in iran and russia if trump wants to harm russia and iran iran even more with his sanctions he would like turkey to join him if they're importing most of their oil from the two

for more let's cross over to our wall street correspondent sophie sophie it was a very short tweet just eight boards and one figure what exactly is the f.c.c. looking at here. sixty one characters by the way and chris if it is not the medium it is the motive behind this tweet because in twenty thirteen the f.c.c. rules that it is not a violation of their rules to publish stuff relevant information on social media so it is more the fact that must have been communicating something to the broader public that has a huge impact on the stock price he has repeatedly complained about this prize about charts cashing out on the declining stock and yes the stock price had been hurting and this one tweet has cost a significant bump of more than ten percent so this was very obviously a way of making the stock gain and charts lose money and then christopher there's the second part of the tweet a must stating secure funding this seems to be something off even higher interest for the f.c.c. as this is giving investors the impression that they will definitely receive four hundred twenty dollars per stoc

sophie, the young girl you met at the border weeks ago with herdm grher. >> that's right. >> woodruff: separated from her family. where does that stand? >> today, judy, marks six weeks since three-ye-old sophie was separated from her family. she remains in u.s. government customy. here is s information we can ,hare. sophie'sily including her mother, who is working to het r back, they're all in california. sophie remains in a u.s. federally contracted shelter in pennsylvania. now, in the coming days, sophie's mother, with the pport of a volunteer group called immigrantamilies working together, she's planning to go to pennsylvania to try to apply some pressure and to get her daughter back. we talked to her mother quite regularly, andhe tells us every time she talks to sophie, sophie would cry and come toet picked up and she would ask when her mother was going to come. when we spoke to her yesterday, sht said sophie doesndo that anymore. ine worries that she's grown accustomed to lifhe shelter or life without her family. so she's continuing to work through the goverent reunification process. she's following the rules and submitting her documents, but she says she wants to see soph , so she's goingto pennsylvania, and she says when she leaves, she hopes that it will be with her daughter. >> woodruff: his thre

the latest on those headlines up next sophie and co talks to a nobel peace prize winner about the humanitarian catastrophe in yemen still to. come to sophie and sophie shevardnadze as former get money president killed by his once a country's civil war takes an unexpected turn. and that is well ok to. hundreds of thousands of starvation what is official hold for yemen well i asked about call karma on a famous yemeni political activist and nobel peace prize winner. the civil war in yemen has seen a new bloody twist next president saleh killed by his former allies the battle lines are being violently drawn once again what will bring to the ravaged country. an opening for peace. in the stalemate of war and the law and starving civilians have to wait before the guns fall silent. got among the many journalists an activist winner of the nobel peace prize welcome to the show it's really great to have you with us. yemen's former president has been killed by his former allies they who face the alliance between them which fought the saudi led coalition is no more sallys deaths good for yemen or is it only going to make situation worse. first of all thank you s

well welcome to sophie and co-op sophie shevardnadze and today i woke up lots to talk about in our program and. good luck little. sophie and kill him sophie shevardnadze the wall has looked its destruction in the eyes seventy three years ago one american nuclear bombs were dropped on hiroshima and nagasaki today can humanity count to gether and prevent the catastrophe from ever happening again i ask nuclear weapons to them and activist hiroshima bombing survivor. one bomb one blast and the whole cities leveled in seconds living fire and radiation in its wake the atomic bombing of hiroshima in one thousand nine hundred forty five still serves as a reminder of the horrors of war especially one coming from the survivors of the explosion what was it like to live through a nuclear attack on the stories of i wouldn't change the way we see nuclear weapons today and will humanity ever. sets go thurlow survivor of the nuclear bombing of hiroshima welcome it's really great to have you with us. you where and hiroshima in august of forty five when their nuclear bomb was dropped on the city when now we know that a nuclear bomb kill

sophie. sophie: the yen sticking below 111. the nikkei set for losses. we have seen factory activity remaining a strong point in central machine orders. they fell 2% in june. electronics makers are leading the dragon tokyo. broadly speaking, asians stocks looking next, heading lower with singaporean shares sliding lower. samsung weighing on the kospi as the new galaxy note 9 does not impress. in china, developers leading gains among chinese stocks. asx 200 up 0.2%. on lira woes weighing currencies. the korean won falling the most since july 18. the renminbi down 0.2%. stocks sliding in manila. the central bank is addressing volatility with rate hikes and the bsp is not closing the door to further action. rishaad: i want to pick up on the turkish lira story. 4.7 percent, the decline in the last session. 2008, thepest since global financial crisis. eyes will certainly be on president of one's speech tomorrow. let's bring in mark cranfield in singapore for more on the reaction here. this is amazing. what is the state of the lira right now? >> pretty appalling. colleague mark cudmore is writing. the lira is in a currency crisis. this really is a very situation -- serious situation. this speech by president of one may be highly anticipated come a but he is a problem for the lira. he is reducing dependence on the central bank. unless he comes out and categorically says we will be raising interest rates by a large margin and possibly as well introducing capital controls, life for the lira one knock it that much better. it really is very bad indeed. account to take into the fact market liquidity is becoming much thinner because so many are cutting country limits to turkey as well. they need drastic action. the chances the president will announce something on that scale is probably not that high. the lira is not going to come out of this in the short-term. you have a president who, as you say, has been impinging on the independence of the central bank and arguing for lower interest rates, saying higher interest rates [indiscernible] -- higher rates cause inflation. mark: yeah. he obviously has some unusual ideas about how to run economic holocene. assuming he hands it back to someone much more experienced on this matter, it is probably better for the country. everything he says has not been helpful for investors. foreign investors are giving up. turkey will end up being somewhere so far off the investment radar, people will stay away a very long time. flowan be cut off of the of investment for many years and that is what turkey is risking at the moment. they need drastic action, quickly. is not the only emerging-market currency to take a bit of a beating. we also have the ruble getting a bit of a roasting, too. yeah, exactly. you can see a common thread between these, though it is not entirely due to sanctions and tariffs. if you look at countries where the united states has hit them with tariffs or sanctions recently -- china, turkey, russia, iran, all have them -- all they have -- all of them have currencies that are palling. it is spreading around the emerging-market world. it is helping people focus on the major markets. at least it is good for europe and the united states. not easy to be an investor right now. rishaad: thank you, mark cranfield, in singapore. let's get the first word news. here is rosalind chin. >> philippine central bank governor as reasserted commitment to returning to inflation targets next year. that is after they raised key interest rates by 50 basis points, the steepest hike in a decade. he said he will do what it takes to deliver on his mandate, including the chance of inflation exceeding its target of 2% to 4%. >> we have not closed the door to that, but as you know, we do inspect -- we do expect that the inflation to change next month. we will have to assess that piece of information. but not only that information. >> the escalating trade war is starting to affect american companies with exposure to china. some have already moved production absurd. the beijing-based china u.s. business council says the tariffs have forced some of them to shift operations aboard, with brazil and the e.u. the main beneficiaries. washington cannot express -- expect progress while it seeks to keep its "outdated script." tougher sanctions on pyongyang, given after it halted nuclear tests and dismantled some logic women. they say the north remains willing to build trust and implement the singapore agreement. president trump's legal team says some sensitive topics will be found in the interview with mueller. comeyludes the firing of and michael flynn. rudy giuliani told foxnews the pressure probe is "a different kind of watergate." japanesed yamaha led automakers after questions about the fuel economy and emissions test. they say half of the vehicles were not properly examined. reputation for manufacturing quality has taken a beating. nissan is worried after it admitted improper testing methods last year. >> the tests were carried out by inspectors in the data was not checked by management. theealize the poverty of situation -- system is the responsibility of the company as a whole. we are inspecting for any more improper results. news 24 hours a day on the air and on tictoc on twitter, from 2700 journalists and analysts from all over the country. i am rosalind chin. this is bloomberg. rishaad: japan brings reasons to be cheerful. private consumption, business spending, all those data points above and well above estimates. saying japan is in a goldilocks moment, but perhaps not enough to trigger inflation. pool is notds strong enough to generate any inflation risk. from that perspective for corporate profits -- this is the important thing. if you look at the data, what does this tell you? an economy with balanced domestic growth running at potential, means corporate profits should be having positive upside surprises going forward. rishaad: brett miller leads our coverage of the japanese economy and he joins us now. talk us through the data first. the first thing to note is the very strong number for business investment. that was double what economists had forecast. that is a good piece of news and the data. the second would be consumer spending. consumption from regular people in japan was not really as strong as was needed. we are seeing a pattern where businesses are doing well and that should help to get through to the following quarters, but as we know, profits have not been pushing through into wages enough. the private consumption was not as much as we want to see. when we look at the inflation outlook, we see the economy growing above potential. there are prospects we could see it ticking higher, but it has a long way to go. rishaad: we could say it is not inflation orneeded much wanted inflation they are in japan. what were the main drivers? was it a case of ctch up, cyclicality, or abenomics working? brett: it is the rebound effect, we were down a long way in this quarter. we have been waiting a long time to see a decent uptick in business investment. it is very positive. corporate have seen profits rise for a long time. exports were not as strong as they could have been. one factor was in the net equation, net exports subtracted from gdp. that had to do with imports being strong in import aircrafts. there were a lot of balancing factors, but the thing to look at is business investment as a strong point. rishaad: bank of japan does it all lead them and shinzo abe, too? ♪ i think they have a long way to go when it comes to strengthening the economy. there.ore is needed with economic growth above the potential, it is moderate -- moderately inflationary for japan. there are big risks coming up for the bank and abe next year when it goes up in october 2019. last time it went up, the economy went backwards. that is the big test. we need to see business investment rising, consumption rising. it needs to be strong before we go into that tax hike. rishaad: that was brett miller, -- economistnomic joining us from japan. we will have jack loewenstein coming up, plus, asean economies. the philippine monetary policy system and the growth process. this is bloomberg. ♪ rishaad: i am rishaad salamat in hong kong. this is bloomberg markets. helping beige and benchmark past losses we had early friday. trade in emerging market policy, weighing on traders. not undue, given what happened with the turkish lira. and 4.7% in the session down nearly 10% in the last four or five trading days. let's get the jack lowenstein, cio and managing director. thanks for joining us. this is quite something. what does it mean for emerging-market assets, generally speaking? turkey may be the anomaly, but it is something. emerging markets has not been where it was at since the year began. the thing withs turkey is a little idiosyncratic. has unusual views about inflation and interest rates. is -- the question is, who cares about turkey at the moment? it probably does need economic bailout at the moment. the consequence of not taking serious fortively europe is there is a full-blown crisis in turkey. rishaad: it seems there is certainly a currency crisis. let's move away from turkey and look at emerging markets generally, which of seen weakness against the dollar coming through. this is on fears of a trade war and we seem to be in the middle of one already, or the start of one. how does that inform you and your business decisions now? do you think we have hit bottom in some of these markets? jack: [indiscernible] an emerging market country we are interested in is india, which has quite different trends in play compared to say, china. in china we only have one investment at the moment. we think the environmental market space is interesting. there is quite good value there. even for the weakness of the renminbi. rishaad: i am going to bring up a chart which tells us about aggregate financing, which is on the up slightly. it does seem we have stimulus coming through. there is the easing possibly in the pipeline as well, arguably in the autumn. does this represent an opportunity for you to get into that market? especially as it has gone down so far? guess the real concern we have in the medium-term is, is this just a case of the authorities pouring petrol on the fire? the objective in china, if you spokesman, --mber they are trying to counter the effects of this trade war with more leverage. that will be dangerous, in my view. when does the situation become unsustainable? when do the banks become very weak? at the moment, the banks are pricing in a major downturn. they are trading on price dockets of 0.7% that should be a bargain, but the fact it is an anomaly, is just a problem on the horizon. rishaad: indeed. looking at india specifically, where are you finding value there? -- ave the imf saying member of the imf said this, they see the indian elephants starting to run. jack: i think what is fascinating over india the past five years, the indian economy has been stuttering along with minimal jb -- gdp, 8% to 10%, despite any credit impetus whatsoever. that is because the bat debt crisis in government-owned banks is so deep, indian banks could not lend if they wanted to. they may not have been allowed to because of reserve bank regulatory action. now you have a situation where growth has begun to pick up. the banks are slowly recovering. what we need now in india is quite the opposite of china. we need credit growth to grow faster than nominal gdp, which it has not done for five or six years. essentially as, very virtuous cycle going because gdp accelerates, banks do well in an environment because they can start growing their acid-base again -- growing their asset base again. we can see real growth will back to 8% or 9% for quite a sustained period. remember the gdp in india is still very low by almost any standards, especially emerging-market standards. rishaad: the other thing is, it is a more domestically focused economy, so it is insulated arguably, more than other countries and is part of the world, from a trade war. very quickly, your response to that? jack: that is absolutely right. investor wen esg like to go from things not so great to better. in india there are so many things not that great that could easily get better, it is a matter of political will to get those things through. but they have the ability to control an agenda to a much greater extent than many other em countries. rishaad: jack, thank you so much for joining us. jack lowenstein joining us there from sydney. he is from more for gas at management. you can -- he is from morphic asset management. .n go to tv look at security is our bloomberg functions we talk about. currentt in the conversations by sending instant messages during programming. this is for bloomberg subscribers only. ♪ rishaad: you are back with bloomberg markets. samsung unveiling its most expensive phone yet. the company struggles to rejuvenate its flagship galaxy note 9. it will start at $1000 and max out at almost $1300. bloomberg technology sent us this from new york. >> we are here at the berkeley center in new york for the samsung launch. they launched three new products. one, the highlight of the show, the galaxy note 9. i knew smart phone with a much bigger screen, about a 6.4 inch screen with a wireless stylus. you can click a button to control presentations, take pictures remotely, and draw on the screen. it is rechargeable. the next product is a galaxy watch. it is a revamped smart watch. taking on the apple watch in terms of heart rate monitoring, functionality. the third product, the galaxy home. it is more of a preview. a very loud speaker, a competes directly with apple's home pod in terms of music quality, the amazon echo in terms of voice recognition, with its eight microphones, as well as the google home. they hope these three new products help rebound their consumer division. in addition, they announced key to partnerships. one for gamers is fortnight. there will be a new fortnight for android available on s7 phones and newer. and a partnership with spotify. the spotify ceo spoke today, planning a multi-your partnership with the technology giant and a music streaming business. apple has their big announcement where we are expecting new ipads, three new iphones and redesigned apple phones for them. bloomberg news, new york. rishaad: let's have a look at the latest business flash headlines. commodity trader noble holding a meeting at the end of the month to vote on its controversial $3.5 billion restructuring plan. it has the backing of 86% of senior creditors and more than 1/3 of shareholders, including the founder. the meeting on the 27th coming four months later than noble. chinese hospitality provider is concerned it is buying 51% of hotels from struggling hna group. they are selling the reticence stake as a global offloading of assets, in more than $70 billion worth of investments hna has made this year to lower its debt. that is soaring to the highest in corporate china. performance of legendary bond manager bill gross has been disappointing, but something he will bounce back. his global unconstrained bond fund ended july down almost $1 billion from its peak in february. the fund lost 7% this year. the ceo said growth will be back. >> the underperformance it is seeing now is challenging and disappointing to him more than any of us, but certainly to all of us. we are not where need to be. if you look across this 40 year record, that is the anomalous period. i think in time he will come back. japan going into the lunch break. pain in the crypto space, making itself felt as gmo internet tumbles. tell me a little bit about this, sophiebreak. sophie: concerns over its crypto mining business overshadowing the stock. held mainly by the sale of an online marketplace, falling after posting a loss and its first earnings report as a public company. also, showa shell dropping. and fujifilm announcing a buyback. the company's president shared an appeal to lift the injunction on a direct deal. that will begin in september. a lot going on for japanese investors. the nikkei 225 headed for a third day of losses. this is bloomberg. ♪ 12:20 nine in sydney. i am rosalind chin with the first word headlines. japan's economy expanded more than forecasted the second quarter, boosted by both private and public spending. annualized gdp was up 1.9% against estimates of 1.4%. 0.7%te consumption grew from the previous quarter and business spending, just 1.3%, doubling estimates. the lira has plunged new depths as turkey's relations with the u.s. continue to sour. saidatest fall -- sources release a refusing to detained american pastor. the

sophie and co. welcome to sophie and killing sophie shevardnadze don't trump has locked horns with his own intelligence and law enforcement how damaging can the rift between the white house and the american intelligence get well i asked him a decade ca veteran groff larsen. the american spy agencies are mired in a public scandalous political cycle with the investigation of president trump putting the spotlight but his national. intelligence agency. the professionals of the cia and f.b.i. escape the polarization of politics that is public and will therefore radically change the situation in the country. we're all from out larson former cia veteran who served as moscow section chief among other politicians welcome to the show it's really great to have you with us. now wolf the american intelligence community has been accused of being politicized many times in a bush sheriffs' to politicians use it to justify iraq now agencies are again the world in a political scandal i know you pride yourself on your colleagues for being patry atsic nonpolitical but can you really be about politics in this line of work

let's get more on this now with our financial correspondent sophie new york sophie clearly the latest ratcheting up of trade tensions between the u.s. and china there how's that playing out on wall street. well the investors here have tend to downplay concerns about these trade conflicts for the longest time and have been focusing on fundamentals and earnings but when we look at the charts out the dollar jones for example and other indices we can see subtle signs of declining optimism was freed last a few points on per se on friday it did look a little better again but it has gone all over that investors don't pay attention to terror threats at all the back and forth between china and the you as has turned into a downward spiral with neither of the two sides giving in so wall street is asking where is this going to end will trump be able to turn all of this into a win win situation or at least into america wins a situation all with china think he's taking it too far and retaliate even harder once american companies begin to suffer from protectionism and retaliation wall street cannot

all welcome to sophie and sophie shevardnadze the digital currency bitcoin once a toy for computer nerds is now storing and prized triggering a new gold rush is it just another bubble or the glimpse of their radically new financial future i ask rick. because in cash and founder of the pirate party. the new craze is making people rush into cryptocurrency investment with the digital money skyrocketing value putting it into the spotlight but aside from causing a new gold rush.

welcome to sophie and sophie shevardnadze the digital currency bitcoin once a toy for computer nerds is now storing and prized triggering a new gold rush is it just another bubble or the glimpse of the radically new financial future i ask rick. because in cash and founder of the swedish pirate party. the new craze is making people rush into cryptocurrency investment with the digital money skyrocketing putting it into the spotlight. but aside from causing a new gold rush big calling is promising to completely transform the way we use money what will peer to peer money exchange do to the global banking system what role will the world's governments be left with when bitcoin goes global and can overcome.

sophie. sophie: this is hunkering down for a protracted trade but china said it does not appear sacrificing short-term economic interests. -- hang seng adding .4 of 4% .41%. we are waiting for word on china and we did get the [indiscernible] to a surplus. policymakers will be paying more attention to the balance which is zero and the signals there is less room for currency appreciation. taking a look at what is going on with chinese bond markets, have ring at these 3.5% level as chinese stocks are looking cheap compared to [inaudible] shanghai electric sliding, this a unithe deal to buy from gcl collapsed. housing is in the space, investment policies might be providing some support. checking on hsbc, losing ground by .51%. morgan stanley and goldman adjusted the price target for the bank. sales growth slowed in july, also want to highlight tencent, and kweichow. weakness for gains for tencent. rishaad: thank you. ankara probably getting concerned about the state of its currency at the moment as we see some capital flight. that is in our first word headlines. >> the turkish is recovering after sinking to a new low over tocern over the attempt support the currency. tenure performance 20%.ed below president erdogan has vowed to respond in kind after the u.s. imposed sanctions for the detention of an american. and asking washington for relief from tariffs. the dutyr waivers from on metal imports. it says it is unavailable to cannot be made insufficient quantity. the move highlights the senior female executive. first foreign-born head of pepsico. her replacement will be the sex ceo in the 53 year history of withompany area facebook optimism that it is forging deeper ties to offer customer services via messenger. --" -- something that growth slows. facebook is tried to make messenger a communications destination with the aim of replacing email. it has faced widespread criticism about the security of data. and the gap between making music and marketing it, citigroup says the $43received 12% of billion generated by their work last year including cd sales, on-demand streaming, youtube ads, royalty from radio and concert tickets. in the complaint that record labels and tech companies are getting rich off the work of artists. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: the price surging after its first-quarter profit climbed nearly percent -- 50% fuel i a firm,ost from the vision what exactly drove softbank's profit gains? >> softbank earnings have been a tug-of-war between losses that spread on the one hand and profits on domestic telecom operations. that is what makes the first quarter interesting. the is the first time investment vehicle has started to deliver results. the lands share of the gains have come from the fund, 245 billion due to increased valuations of the card and we work. have been talking about taking softbank e.on carrier and for people wondering what that might look like from quarter to quarter basis, this is an encouraging sign. rishaad: there is news about the for itss plan to ipo telecoms operation in japan, anything beyond that? a big part of the strategy is listing domestic operations which includes run -- broadband services. the latest we hear is that the listing might value the business at $90 billion. that is one third of it which makes it a $30 billion ipo and it will be the biggest one on record beating alibaba's 25 billion dollar offering. that is something investors are looking forward to especially details surrounding debt structure and dividends and those will be the final determinants of the valuation in the end. more lightd he shed on his grand strategy? >> he sure did. he never misses an opportunity, that is what makes softbank briefings so interesting. we heard a lot of similar stuff, is go to theme is what he calls the cluster of number one strategy, the idea of taking noncontrolling stakes in andanies like uber encouraging their founders to cooperate. he put us slightly finer point on that strategy, he acknowledged the fact that for love investors out there the portfolio does not make sense. does not jell together but he said there is a unifying theme and that is artificial intelligence. for a lot of investors, that sounds like five to 10 year horizon but if you start to get quarterly returns like the ones that delivered in the first quarter quite a few investors could live with that. rishaad: let's have another look at the ipo, going for the biggest one in 2016. it has confirmed plans to begin trading wednesday in hong kong. the portion was only one on one third. third are you this pales in comparison to some of the others we have seen. about eight toso 10 times oversubscribed and we can see that this summer the deals have not quite been well received. but it is because this is a big deal and it takes a lot of money to push it up to that level but you are right. i think some of the retail investors are getting ipo fatigue is there are so many deals coming. is rather crowded. i am not sure i have the pronunciation. just tell us what the company does. drug developer, it is already listed in the u.s. it has a product unlike a lot of other biotech companies that are listing in hong kong. they are starting to trade on wednesday together with china towers. it will be a easy day for the hong kong stock exchange. be --d: who is going to bank the gong? the market is slumping at the moment. probably on [indiscernible] that i can recall. what is running it? >> we are in the busiest summer and hong kong's ipo history. this summer we have seen 19 billion worth of deal pricing so far. it is only getting of august. part of the reason is that it was the market was really booming six to eight months earlier and people saw that the deals priced in were such a success and then preparing for an ipo takes time. by the time it comes the market is no longer holding up. that is part of the reason we're seeing so many deals come at a time. am -- [indiscernible] >> they just have to go with it. rishaad: thank you. up, a look at one of the key components in electoral -- electric vehicles. that is next. this is bloomberg. ♪ rishaad: this is bloomberg markets. let's have a look at cobalt. it is seen as key for the rising demand for clean energy. is the largest sor -- source of mined cobalt. it is a critical component in the rechargeable batteries that power electric vehicles. cobalt demand is jumping by at byst a thousand percent 2040. that is what we are looking at 's.we see the growth of ev demand ising at how forecasted to grow in other areas. this is what we have it the moment. this is energy storage. command --at rising demand could face a shot. .et's speak to our guest they have been benefiting from this boom in electric cars. are progressing very well. we have a project we want to come into production with, we delivered a second of our series of feasibility studies and we are heartened by what we have uncovered and by long-term prospects. rishaad: tell me how important is it that the democratic republic of congo in all this and how important it is for your company and how salient it has been in what has been going on with the cobalt price which i will talk about in a second? sheer production, it is dominant so at the moment we are getting increased production out of the congo and it is causing the spot price to roll over in the near term but longer-term, the cobalt market remains extremely tight and longer-term, there is significant questions about the stability of these governments and the economic environment to keep reducing those cobalt units. that is not touching on the issue of the sourcing of cobalt. rishaad: is that something that will come in and i'd a lot of companies down the road and hurt the cobalt price given those criticisms? seeing a are two-tiered cobalt price. already a number of the consumers and a believe apple to be one of those, tesla is a good example have stipulated that they will source their cobalt from reputable or equitable origins. the origin is very important. i will bring up a chart of what has been happening, it is entitled cobalt, crazy run. if i take it from the beginning of 2016 much we went up to a march, you see a gain of 332%. subsequently we have come down considerably from that. what happens next in your view? guest: let me press it -- preface this by saying you have a market and your metal volumes are over 100,000 tons and if you compare that to other commodities such as iron ore you could fit the market in less than one ship in the iron ore terms. andare expand -- expanding inflationese rather -- inflationary numbers. in the last six months we have seen a rollover in the spot price. we have seen [indiscernible] predictable. the supply side takes years to come in and we know that was coming in but for us, we have come back from asia in a series of commercial visits, the longer-term forecast for kobold is strong so there is significant demand coming through from batteries and battery makers and the trading houses will be scrambling for that supply in the next two or three years. ashaad: a lot of talk about possible supply crunch, a lot of people talking about that. do you think those concerns are overstated or do you think that they are justified? it is interesting, every [indiscernible] or invent something that does not need the commodity or does the same job. it is a matter metal -- another metal. it is subject to a cycle. from our view and we have a technological view on the future of cobalt in batteries, it is difficult to do so. out the amount that goes in but you cannot eliminate it. but do ia concern think it will be a cliff? i do not think so. spikes like the one we have seen are not that helpful. we like much more nonvolatile, much more consistent product. rishaad: that brings me to the next question. in the medium-term to the end of this year, part of 2019, what do you see? and i will quote u.s. dollars per pound, i think a $30 spot price and the next one or two years is appropriate as a clearance price in the market. that will be a price that dominates as the congolese metal hits the market. longer-term there is room for upside risk on those numbers. entry way andnew a fantastic margin. you have an advantage because you are producing these -- in new south wales and people will refer -- prefer to come to you, for the reasons outlined earlier in the interview. guest: i think that is right. we offer -- first of all the sanctity of contract law has perplexed the battery industry. jurisdiction is safe and dependable. is [indiscernible] rishaad: thank you for joining us. the summitfrom taking place. manila are extending losses we saw on monday and it is arguably down to as late as inflation data which is a bit more aggressive than economists had predicted. 5.5% was expected, it was up by .7%. >> that is the fresh five-year high for inflation. by discretionary and industrial players. the latest inflation will keep investors sidelined as they wait whatore data as well as they may do on thursday with their decision. a 50t expectations are for point basis hike. data another reason keeping the pse away from the years peak at 8.7% year to date. 8600 points at the highest level that the benchmark can reach this year. markets, ainese welcome relief at the moment. >> for chinese stocks up .7 of 8%. we're seeing gains of .7 of 1% and that is being led higher by hang seng bank, we have [indiscernible] on the back of its results. up 2.6%. also want to highlight china [indiscernible] highero on the up, 3.2% this morning. rising .51% after monthly sales went up. athaad: let's have a look some of the stories that have been trending across the unit -- bloomberg universe. china'sa story on controlling the economic -- the mekong river. and on tictoc, u.s. student debt is rising and becoming harder to pay off. those stories are trending online or on the terminal. plenty more on its way. this is bloomberg. ♪ rishaad: we're back, this is bloomberg rockets, having a look at the business flash headlines. second-quarter earnings smashed expectations, operating profit was $550 million between the end of june, outweighing the 238 million seen in the estimates it had been compiled by bloomberg. undid coreng he e-commerce business, it is starting to pay off. it faces rising domestic competition coming from amazon. creditors at toys "r" us are expecting to make an opening bid for the company's operations in asia. that is far less than the $1 billion that company was touting a few months ago. court documents say the lenders would make a circle credit did using that secured notes rather than cash and when ownership of of -- and win the ownership the auction next month. the new york city council is approving a when you're cap on licenses for uber, intending to reduce traffic and help the fall in drivers' pay. it would be the first u.s. city to increase compensation. dew york has 80,000 app base in 2015.rom 20,000 prosecutors have opened a criminal investigation based on multiple complaints that its estonian division was used to launder billions of krona, dirty money. a similar investigation was launched last week. that d claimed in july anske was guilty of money laundering and related offenses. ♪ rishaad: markets generally positive. getting a bit of a lift from overnight gains in new york. the yen is strengthening ever so slightly there as well with softbank on the way up to nine-month highs. it plans to list its mobile arm. that could be something like a $90 billion valuation and iran braces for renewed u.s. sanctions. it wants compensation for what it calls, quote, decades of american intervention. this is "blerk markets." -- "bloomberg markets." rishaad: a lot of moving parts today as ever. trade friction perhaps not at the top of the agenda but other things are. earnings in the u.s. help to propel markets to the upside do. have a lot of action on the foreign exchanges. we have the turkish lira hitting record lows before recovering. the pound sending the currency down to 11-month lows. trying to make sense of it all. a look at what's going on. >> a look at what's happening with asian stocks. we have a micked picture here -- a mixed picture here. i want to highlight what's going on with philippine stocks as well. sliding here down half a percent. the stock value has sputtered in manila as inflation soars further. hitting a fresh high in july. so looks like investors may be sidelined as they wait for more economic data. elsewhere, the open in jakarta, take an eye on indonesia poultry stocks. also in the currency space. you have the yuan under pressure. the onshore rate at $6.86 against the dollar. that's after the deficit we got the first three months of the year. more weakness has been anticipated. goldman, for example, seeing a move to about $7.10 by the end of three to six months for that currency. a report out of d.o.j. was considering perhaps raidsing rates this year -- raising rate this year. take a look at stock movers of note. plenty of earnings to digest. softbank has risen to a nine-month high on its investment gains, as well as a anort that it may be seeking i.p.o. for its domestic mobile business. over in australia we have eclipse group, this after it lowered its profit growth target. rishaad: thanks so much for that. let's move to these major economic reports. we have a trio of them. could be really key to central bank moves in japan. let's start off with the philippines. we've had inflation figures. we got them slightly more aggressive than the economists were looking for. japan's labor cash earnings, essentially workers' paychecks, we saw that also jump. what's going on? and why? >> let's start with the philippines because of course they are meeting later this week. and so a lot of emphasis, a lot of focus on philippine inflation and it did accelerate. the cpi year over year hitting 5.7% in june. that's up from 5.2% in may. and it ju blew right past that 5.5% forecast. higher oil prices, a weaker peso. tax reform, strong democratistic demand, all the elements are there. of course a bank in philippine is signaling there will be a rate hike this month. at this point that green towards the right-hand side of your screen suggesting that the markets see as least two more rate hikes from b.s.p. over the next 12 months. so this is japan's labor cash earnings. on the face of it, whoa, what a surprise. the head of the bank of japan has been lamenting for the longest time that labor markets are tight. wages haven't risen but they should. and in fact we have a 3.6% year over year jump in japanese labor -cash earnings which was the biggest jump since 1997. let's see how that looks on one of our charts from our bloomberg library. what you can see is that white line, all of a sudden way up there. so what is it going to do then for those other two lines? the yellow one of course is the core c.p.i. that b.o.j. watches so closely. 0.9% year over year. a long away from the 2% target. so is the headline c.p.i. so you look at that, you still have that big gap. then you find out that capital economics, for example, points out in the wake of this release that japan's wage growth jump, this labor cash earnings, was really driven by summer bonus payments. that's great if you got a bonus payment but it's not like having your regular earnings or paycheck actual liz rising. maybe that's one -- actually rising. maybe that's one reason why household spending fell 1.2% in june atop of a 3.9% decline in may. earnings are rising due to bonuses. maybe that's not enough to give you confidence. especially if you didn't get one of those big bonuses that your paycheck is going to be big enough to help you start buying more, spending more money, and of course that's another thing the b.o.j. would like it see. the growth and inflation figures moving higher. rishaad: looking for china, foreign exchange reserves that could come out any time now. any time today. they are rather important. perhaps they would tell us what the central bank there has been doing in terms of trying to perhaps defend the currency. what are we looking at? >> absolutely. we know that friday night the pboc came out and put that 20% reserve requirement on some of the forward contracts that traders are putting in yuan, pushing that currency so much weaker. course now what we saw in june was 3.112 trillion dollars worth of reserves, excuse me in may, and now we're wondering what's going to happen in june. you can see a very interesting pattern. it really helps remind us what happened. see all those red bars? all those declining foreign exchange reserves have that stockpile shrinking. that's 2016. that's when they had to put on capital controls. that's when the yuan really took a beating. then you kind of recover in 2017, those small green bars. and then 2018, you see a couple of red bars, a couple of green bars. and so the question is, is the yen spurring capital flight? and will the pboc step in, have they already started to step in to defend it? no one knows for sure. no official announcement. no big move but that's, as you know, the reason why this report is being more closely watched than ever today. rishaad: indeed it is. that report out any time today. let's move it along. have a look at what's going on in this spat between washington and tehran. with tehran saying it's ready to talk any time to the white house. if donald trump is, quote, sincere. >> iran is taking a hard line ahead of new u.s. sanctions, demanding compensation for what it calls, quote, decades of american intervention. president rouhani says he's open to talks with washington without preconditions. but not while iran is under sanctions. he also said tehran can rely on china and russia to shore up the oil and banking sectors. sanctions are to be imposed at midnight eastern. >> negotiations and sanctions at the same time is meaningless. if someone stands in front of his rival or enemy and pushes a knife against their arm and seeks talks, the response is that he should first put the knife in his pocket and come to the negotiating table and use logic. >> greece has received the final payment in its european union bailout. after objections from germany delayed it by several weeks. the european stability mechanism paid the equivalent of $17 billion, $11 billion of which will go into a cash buffer. athens can use it to meet its financial obligations for almost two years. the remainder is earmarked for paying down some of greece's still considerable debt. israeli banks face tougher scrutiny with the securities regulator imbeding supervisors in the lenders to crack down on corporate misbehavior. staff will work inside c.b.a. and embattled wealth manager a.m.p. the treasurer says the banks need to know that if they do the wrong thing, we'll come down on them, quote, like a ton of bricks. and a coalition is ready to name a government in pakistan. the p.t.i. party says it has 174 lawmakers on its side. more than the 172 needed for an absolute majority. it expects to have as many as 182 in the end. likely to be named prime minister when the national sameably convenes. opposition parties claimed widespread fraud in last month's lection. this is bloomberg. ♪ rishaad: skeptics going to get back to the diggers and dealers. to ask if the love affair with lithium is -- [inaudible] -- long trade fight. the options available to beijing. that's next. this is bloomberg. ♪ rishaad: this is bloomberg markets. investors have been struggling to anticipate donald trump's next move. as well as china's potential retaliation. there are concerns about the potential impact of a trade war and what's exactly being priced. our next guest says given the current climate it's bruent to dial back on risk -- prudent to dial back on risk. certainly that's what we're seeing at the moment. isn't it, with this blight out of emerging markets, i mean, how long can you de-risk for? that's the question, i suppose. >> yeah. wouldn't necessarily de-risk completely. but it should, last month, since july, we had a pretty good equity market performance. actually perhaps surprisingly so. while the trade tensions were ratcheting up. so we chose to lock in some profits from those positions. and it's also about smart investing, also positions that are maybe not too riskky but that can do well in a normal environment and normal state of affairs. and also when you have things heating up so japanese yen is, for example, one such position we like. and overweight in 10-year treasures is one position we like. not very risky positions but they could do well in a normal state of affairs. if an accident happens, trade -- yeah, trade, i should also mention, because we just did the survey which is a survey of high net worth investors and especially in china and hong kong, they say this is currently the first issue on their minds, 39 and 45% say that. so we need to take it seriously. but yes, we need to work around it. complete risk of no equities, that would also be the wrong message at the same time. rishaad: i'm going to bring up something. it's the global trade leading indicator. it's suggesting at the moment that perhaps things are not as bad as all that. and that the trade actually recently is forecast by this , a product of human endeavor, to actually lift up. so tell me, is that what you guys are seeing? and -- or is it just front running before we get really hard-hitting tariffs in place? >> the latter. we also need to be cognizant that without these threats on trades, we had probably already passed the peak for asia as a region. the growth peak in exports. we had a very good recovery, 2016, parts of 2017. that's already normalizing even without trade and that wouldn't stop. so reacceleration at this point would, even leaving trade tensions aside, would be nothing that you would expect at this point. but we have indeed seen evidence and also heard it from the ground, also in china. that right now when there's no tariffs or not as many tariffs in place, you want to ship the goods, the wears, before they really hit. so i must be honest, that is very likely that we saw that effect here in the last couple of weeks. rishaad: ok. now what are your views as to what's been going on with the the china market and your views on the yuan and its lurch lower? can you hear me? i was just asking for your views -- ok. your views on the china market and indeed how the union continually weakens -- yuan continually weakens. >> we don't think that the yuan weakening was necessarily intentional or some pundits in the market have suggested this is sort of a tool to hit back at the u.s. to gain competitiveness. to us it's more a measure of sort of a currency reserve friendly way to respond because, of course, you have pressure on the currency, that's what you would expect. and we will see over the next couple of months how the currency reserves and behavior b behaves. but it is understandable if you have some pressure on the currency on the china side, allows for some of that rather than trying to defend with a mess of currency reserves and you'll get 2015 all over again. on the stock market is actually very interesting because we have done the aggregation. we looked at chinese listed companies, everything on msci. of course the american listed ones, the internets in particular are very domestic. they don't really have u.s. exposure in the revenue terms. and even the rest, so that the h shares also really don't. the north america exposure is about 2%. that's the key thing. the first round effect from any sort of terrorist would be quite minimal. it's only 2% of msci china's revenue goes to north america. so we need to really painstakingly try to find out what it could mean in the second round effect and we have tried that for all of asia. so we say a second round effect maybe with $200 billion on tariffs, you end up maybe with a slightly less than 4% on asian earnings. it's not perhaps an earth shattering number. of course it's not zero either. it's somewhere in between. we need to watch it. but that being said, the earnings impact, the actual impact, what the market is trying to price in right now, is already quite a bit higher than what we can substantiate with the current scenario. rishaad: let me put another scenario to you and what's being priced in. you see what u.s. markets are doing, close to record highs there. we're seeing chinese markets generally speaking today as an exception going down. is it an invested perception or scenario that they perceive in china that they would be the losers in a tariff war and it's quite the reverse in new york? >> if you look at it from a g.d.p. point of view, you could argue this way. of course we all know that china's exports to the u.s., the technical exports are about three times as high as what the u.s. exports. so from that point of view, you could argue that way. however, from a stockholder's point of view, equity investor, you also need to consider that you have about $300 billion u.s. worth of revenues that the multinational companies, the big i.t. companies, the big car companies, that they generate in china, as a matter of fact even though these are technically not exports, because they're produced in the country in china already, and sold there, you could almost say a trade deficit between the u.s. and china is about that difference. is about those $300 billion. so of course if there is an effect or maybe also a hit on those companies' revenue, then it is more palatable that we're also -- we'll also see on the stock side, s&p 500, a bit of a fallout. this is not our main scenario. i should say that. but certainly that is one of the levers that china could pull if they're being pushed too much into a corner. rishaad: always a pleasure. thank you very much for joining us. remember, bloomberg uses charts we use, using g.t.v. go. use them for analysis. key analysis. that's what it looks like. you can also save those charts for future reference as well. from the bloomberg terminal. ♪ rishaad: the latest business headlines. money managers paving the way for the country's huge pension money to tap china's $11 trillion bond market. that is becoming more accessible to foreign investors. brisbane-based using bond connect by the end of the year, making it australia's first money manager to use the trading platform that opened in 2017. commodities global supply will win a five-day reprieve in order to avoid a strike. filing a request to extend pay talks at the mine in chile. buying it time to reach agreement. the mediation period can be extended for an additional five days if both sides request it. hong kong trading wednesday and confirms that it is priced $43 -- 43 billion shares 1.26 hong kong. the retail offering was 1.36 times over prescribed. drug maker also expecting to make its debut in hong kong tomorrow. talking of hong kong. electricity supplies seeing profits rise in the first half. gains from australia and mainland china. earlier, we spoke to them about their company's growth prospects amid escalating trade tensions. >> we've had a particularly good first half. the fundamentals in our business are very strong. we're seeing growth here in our home market in hong kong. we're also seeing a need for further investment in australia. and we're continuing to see growth in our core growth markets in mainland china and india. we have seen a particularly good first half. wholesale prices in australia have been quite strong. but the supply and demand balance is coming more into balance. so we'll expect to see some softening of prices in australia. in china, our thermal plans had higher levels of dispatch because there was very little rainfall in china. so less hydroelectricity was produced. so for a couple of factors, our first half was particularly strong. we don't see that carrying through into the second half of this year. also, with our regulatory arrangement in hong kong, our return will be reducing from the first of october. so in the near term, we will see some reduction in our earnings compared to the first half. >> that all sounds like a gentle managing of expectations going into the next period. what about other overseas assets in are you looking for other places then to see more upside to that growth picture? >> we have a big increase in investment in our core market in hong kong. we have just had a five-year development plan approved which will see a significant increase in capital expenditure to meet the government's carb ren dux target. so over the next five years, we'll be needing to invest nearly $53 billion hong kong right here in our core market. our other two main growth markets, mainland china and india. at the moment in china, we're just bringing onstream the investment that we made at the end of 2017 in the nuclear power plant. we are continuing to grow our renewables portfolio in mainland china. and also in india. so as far as growth is concerned, we are in a pretty good place there. >> richard, looking at this through the lens of the rising trade tensions between the u.s. and china, what concerns do you, does c.l.p. have? >> any trade war won't see winners in the business sector. everybody will be exposed to some extent. one of the strong points about our business is that we have a nice degree of diversity. so with renewable energy and with nuclear power, we're not xposed to imports. whereas the coal portion of our portfolio, while we do import coal, and that may be affected by trade war and tariffs, that is only a relatively small part of our portfolio with that diverse we are reasonably well protected -- diversity we are reasonably well protected. rishaad: ok. let's get to the japan lunch break. >> earnings day. steel works are rising after ifting its forecast. there is no need for pessimism beyond the first quarter. chiba may also be under pressure as regulators have reportedly begun onsite inspections of regional banks and pioneer sinking today nits first quarter earnings statement. it warned that probablies could arise on growing concern assumption, if it is required to repay the entire amount of debt due this fiscal year. so that's a snapshot of some of the movers in japan with that earnings flood. this is bloomberg markets asia. ♪ > it's 10:29 in hong kong. philippine consumer prices rose by .7% in july. fractionally ahead of expectations. inflation averaged 4.5% in the first seven months of the year and the central bank is aiming for 2% to 4% average between now and the end of the decade. economists say policymakers will raise the benchmark rates on thursday by 25 or 50 basis points. the turkish lira recovering after sinking to a new low as concern over the diplomatic spat with washington overshadowed the central bank's attempt to support the currency. the lira fell as much as 6.7% while the rates on 10-year bonds hovered just below 20%. president erd want has vowed to respond in kind after the u.s. imposed sanctions with the detention of an american pastor. the leading u.s. aluminum producer is asking washington for relief from tariffs that are said to be intended to help. the request that the commerce department, asking for waivers from the administration's 10% duty on metal imports. three of them are for aluminum that they say is unavailable from u.s. producers two other for a metal that can't be made in a sufficient quantity domestically. pepsi could he c.e.o. stepping down. she'll leave in october but remain chairman until the early part of next year. the first foreign-born head of pepsi co and the first woman to lead the company. her replacement will be the sixth c.e.o. in the 53-year history of the company. facebook jumps on optimism that it's forging deeper ties with banks to offer customer services via messenger. that's something that could boost user involvement as growth slows on its main platform. facebook has tried for years to make messenger a natural communication destination with the aim of replacing email. however, it has faced widespread criticism about the security of private data. global news 24 hours a day on ir and on twitter. this is bloomberg. rishaad: japan closing out for an hour as they go on their lunch break there. sophiek at what's driving things currently. what's the deal? >> a few things at play here. earnings front and center when it comes to stocks, take a look at what's going on with philippine stocks. we're seeing this drop .6%. extending monday's losses. this after we got the inflation data that roz was talking about. a fresh five-year high. this will keep investors sidelined as we wait for more ecodata. of course the monetary policy decision on thursday. the print reaffirming the market expectations so we might get a 50 basis point rate hike this thursday. also want to highlight what's going on with the korean yuan. slipping for the fourth time in five days. this as investors are assessing the risk to south korea's economy. the new senior secretary to the president for economic affairs has said korea will continue efforts to diversify export markets, given its exposure to players like china. and looking at what's going on elsewhere, we have shares in hong kong and on the chinese mainland gaini

those and other stories up next though sophie and co talks to a survivor about the threat nuclear weapons still pose to fix the world. welcome to sophie and kill him sophie shevardnadze the wall has looked its destruction in the eyes seventy three years ago when american nuclear bombs dropped on hiroshima and nagasaki today can humanity count to gather and prevent the catastrophe from ever happening again i ask nuclear weapons disarmament activists hiroshima bombing survivor. one bomb one blast and the whole city's leveled inside. living fire and radiation in its wake the tonic bombing of hiroshima in one nine hundred forty five still serves as a reminder of the horrors of war especially when coming from the survivors of the explosion what was it like to live through a nuclear attack can the stories of eyewitnesses change the way we see nuclear weapons today and will humanity ever get of them. said scott thurlow survivor of the nuclear bombing of hiroshima welcome it's really great to have you with us. you where in hiroshima in august of forty five one thousand nuclear bomb was dropped on the city when now we know that a nuclear bomb kills not only at th

sophie and killing sophie shevardnadze don't trump has locked horns with his own intelligence and law enforcement how damaging can the rift between the white house and the american intelligence get well i asked him a decade ca veteran groff larsen. wants the american spy agencies are mired in a public scandalous political cycle with the investigation of president trump putting intense spotlight but his national fame. agency. the professionals at the cia and f.b.i. escape the polarization of politics. public and will therefore a radically changed the situation in the country. we're all from out larson former cia veteran who served as moscow section chief along other politicians welcome to the show it's really great to have you with us. now wolf the american intelligence community has been accused of being politicized many times in a bush sheriffs to politicians use it to justify iraq now agencies are again the world in a political scandal i know you pride yourself on your colleagues for being patry arctic nonpolitical but can you really be about politics in this line of work i mean that sounds kind of like fairy tale almost i think it's a standard you have to strive for i've been a lifelong political independent for that reason that you outline that it's crucial for intelligence officers to be independent and objective and serve the country not just the president and the government but we are also all citizens. now they. are taxpayer funded they have no private sector competition appointments there are made by politicians how can all that not be politicized. actually the in the intelligence profession all of our officers are career professionals we spend our entire career inside the agency in my case i was undercover for my twenty three years in the cia living abroad for most of those years and frankly i really felt it was not that difficult to me maintain my impartiality and and i think you have to do that whether you're collecting information or analyzing it or disseminating it which is this whole mission of intelligence you have to maintain an ability to tell your policymakers the truth in other words speak truth to power so is it right for an intelligence professional to be vying for a high political office for instance the media in the u.s. are saying that director of the cia mike pumpin maybe replacing secretary of state rex tillerson singh is it steering too much into political territory. there's always a healthy discussion about the idea of particularly former intelligence professionals getting involved in politics i personally don't agree with that as a principle for the same reason for military officers getting involved in politics but peo was a representative who and often are cia directors or they are political appointees point he's and he's in a long line of cia directors who are political appointees and that is the way our system operates just like many of our ambassadors overseas are aligned politically always with the president so i don't find that worrisome or disturbing i think it's much more important that the the ranks of the intelligence officers remain professionalized how much freedom does cia have the means to sessions i mean for instance bush administration ran torture prisons and then obama came in and closed them does agency has the power to decide for itself whether it needs things like that and whether it's ethical to. that's a great question sophia i feel the intelligence community has a good set of guidelines it starts with a given set of authorities we have in other words we can conduct certain activities are we call our mission without special authority for example the mission of espionage is a core intelligence mission of all intelligence services we can do that without seeking approval when we do something like interrogation or enhanced interrogation or have prisons that requires actually what we call a covert action finding that if you have requires a a finding from our department of justice that we can do that activity as well as some very strict legal guidelines that are laid out in writing for the agency to follow and that the times when we we run afoul of that when we when we are accused of crossing the line we're held accountable by whatever standard has been laid out by our department of justice and our other authorities that are above us you know the involvement on government agencies in this presidential election someone starting from the f.b.i. role in a clinton e-mail is now the trump investigation investigating both candidates and being quite public about it. it's unprecedented unprecedented isn't it i mean why has the intelligence community taken on this risible and political role this time around. i agree with you actually i find it very regrettable very concerned about the politicization of intelligence i do agree it's happening to some extent i think the f.b.i. and the cia are still very reliable organizations that that are following their their guidelines i still have complete trust and confidence in the organizations but you're right there's the questions do arise and it's because of the highly politicized nature of our domestic politics right now between the republicans and democrats and between those who support the president those who don't support the president so i agree it's a very concerning time and i think it's going to be a time when we in a way redefine our limits you know what is the proper role of the cia and the f.b.i. in the in our domestic affairs and we've learned in our history from the past that we should stay out of american politics. and the house intelligence committee has released a republican newness report which contains allegations that f.b.i. misled the judge in obtaining permission to spy on trump's presidential campaign this report has already been branded inaccurate is it part of the blame game or is there some substance to this. personally i think it's the blame game that's my personal view the new paper in my view is a republican version of cherry picking the facts as they choose to present them and now i understand there's another version circulating the democratic version i frankly find that whole process to be regrown also not something i'm proud of as an american i'd prefer to see both parties sit down this and discuss these things not in the public eye without declassifying or releasing classified information i think all of that is not something as an american citizen that i would dorsey or say is a good thing especially with trump's election things haven't been like they used to be before like from what i understand about the american system the nation's foreign policy is largely decided in the white house and the state department and then there's a congress in the senate and they're more preoccupied with internal matters this time congress is so active in pushing its foreign policy vision on the president why. well i think that's true generally sophia and of course we also have the national security council and unlike russia and some other countries china and others that have a more continuity in foreign policy work and making we we don't do largely through the political nature of our system we were in for a year cycles for a large a large part of that which is consumed with electioneering and campaigning i think that's a weakness of our system i still of course believe in the representative government idea that we that we sacrifice this continuity of stability in our policymaking but it is it is a vulnerability or a weakness and you can really see it right now because. largely because we are dealing with unprecedented issues that we've never had to consider and we've never had such an aggressive intelligence attack if you will on the american democratic institutions and our and our election process that we just had in the previous election that has caused a great deal of this i think soul searching inside the u.s. so we've come now to the. the trump russia story you said yourself there's no hard evidence yet yet of trump straight on collision with russia so why does the public believe it to be a fax and the media in america reports that as a fact of also. i hope the american people or the media don't believe it as a fact sophie i i see it as the facts are clear that for whatever reason and i question why the russian intelligence services. attacked our system so aggressively but i think that as a fact i don't i don't think that's the nihil the question then is what did that do and what impact did that have on the results of the election and for what reason did russian intelligence conduct that activity i don't have the answers to those questions and i won't speculate because i think that would be irresponsible i think we have to determine what happened and then decide what happened on the basis of the evidence and i don't think we're there yet but that's the thing i don't know that anyone has presented the evidence and then the facts have been presented to the public by intelligence agencies and i can probably has been misled intentionally or not by its intelligence community many times like i am i'm thinking w m d's in iraq for instance since the consequences of that are still felt fifteen years or so why ev

sophie and killing sophie shevardnadze and dollar trump has locked horns with his own intelligence and law enforcement how damaging can the rift between the white house and the american intelligence get well i asked. ca veteran groff larsen . wants the american spy agencies are murdered in a public scandalous political story with the investigation of president trump putting the spotlight but his national. agency. fissions of the cia and f.b.i. escape the polarization of politics. public and will therefore radically change the situation in the country. were all from larsen former cia veteran who served as moscow section chief among other politicians welcome to the show it's really great to have you with us. now wolf the american intelligence community has been accused of being politicized many times in a bush sheriffs' to politicians use it to justify iraq now the agencies are again in a political scandal i know you pride yourself on your colleagues for being patry arctic nonpolitical but can you really be about politics in this line of work i mean that sounds kind of like fairy tale almost i think it's a standard you have to strive for i've been a lifelong political independent for that reason that you outline that it's crucial for intelligence officers to be independent and objective and serve the country not just the president and the government but we are also all citizens now that into our taxpayer funded they have no private sector competition appointments there are made by politicians how can all that not be politicized. actually the in the intelligence profession all of our officers are career professionals we spend our entire career inside the agency in my case i was undercover for my twenty three years in the cia living abroad for most of those years and frankly i really felt it was not that difficult to maim maintain my impartiality and and i think you have to do that whether you're collecting information or analyzing it or disseminating it which is this whole mission of intelligence you have to maintain an ability to tell your policymakers the truth in other words speak truth to power so is it right for an intelligence professional to be vying for a high political office for instance the media in the u.s. are saying that director of the cia mike pumpin maybe replacing secretary of state rex tillerson saying is it steering too much into political territory. there is always a healthy discussion about the idea of particularly former intelligence professionals getting involved in politics i personally don't agree with that as a principle for the same reason for military officers getting involved in politics but peo was a representative who and often are cia directors or they are political appointees point he's and he's in a long line of cia directors who are political appointees and that is the way our system operates just like many of our bastards overseas are aligned politically always with the president so i don't find that worrisome or disturbing i think it's much more important that the the ranks of the intelligence officers remain professionalized how much freedom does cia have the means to sessions i mean for instance bush administration ran torture prisons and then obama came in and closed them does agency has the power to decide for itself whether it needs things like that and whether it's ethical to. that's a great question sophia i feel the intelligence community has a good set of guidelines it starts with a given set of authorities we have in other words we can conduct certain activities are we call our mission without special authority for example the mission of espionage is a core intelligence mission of all intelligence services we can do that without seeking approval when we do something like interrogation or enhanced interrogation or have prisons that requires actually what we call a covert action finding that if you have requires a a finding from our department of justice that we can do that activity as well as very strict legal guidelines that are laid out in writing for the agency to follow and at the times when we we run afoul of that when we when we are accused of crossing the line we're held accountable by whatever standard has been laid out by our department of justice and our other authorities that are above us now they involve government agencies in this presidential election someone starting from the f.b.i. role in a clinton e-mail is now the trump investigation investigating both candidates and being quite public about it. at some president it unprecedented isn't it i mean why has the intelligence community taken on this risible and political role this time around. i agree with you actually i find it very regrettable very concerned about the politicization of intelligence i do agree it's happening to some extent i think the f.b.i. and the cia are still very reliable organizations that that are following their their guidelines i still have complete trust and confidence in the organizations but you're right there's the questions do arise and it's because of the highly politicized nature of our domestic politics right now between the republicans and democrats and between those who support the president those who don't support the president so i agree it's a very concerning time and i think it's going to be a time when we in a way redefine our limits you know what is the proper role of the cia and the f.b.i. in the in our domestic affairs and we've learned in our history from the past that we should stay out of american politics and the house intelligence committee has released a republican numinous report which contains allegations that f.b.i. and let the judge in obtaining permission to spy on trump's presidential campaign this report has already been branded inaccurate and is a part of the blame game or is there some substance to this. personally i think it's the blame game that's my personal view the new paper in my view is a republican version of cherry picking the facts as they choose to present them and now i understand there's another version circulating the democratic version i frankly find that whole process to be regrown also not something i'm proud of as an american i'd prefer to see both parties sit down this and discuss these things not in the public eye without declassifying or releasing classified information i think all of that is not something as an american citizen that i would endorser or say is a good thing especially as trump's election things haven't been like they used to be before like from what i understand about the american system the nation's foreign policy is largely decided in the white house and the state department and then there's a congress in the senate and they're more preoccupied with internal matters this time congress is so active in pushing its foreign policy vision on the president why. well i think that's true generally sophia and of course we also have the national security council and unlike russia and some other countries china and others that have a more continuity in foreign policy work and making we we don't do largely through the political nature of our system we were in for a year cycles for a large a large part of that which is consumed with electioneering and campaigning i think that's a weakness of our system i still of course believe in the representative government idea that we that we sacrifice this continuity of stability in our policymaking but it is it is a vulnerability or a weakness and you can really see it right now because. largely because we're dealing with unprecedented issues that we've never had to consider we've never had such an aggressive intelligence attack if you will on the american democratic institutions and our and our election process that we just had in the previous election that has caused a great deal of this i think soul searching inside the u.s. so we've come now to the. the trump russia story you said yourself there's no hard evidence yet yet of trump straight on collision with russia so why does the public believe it to be a fax and the media in america reports that as a fact and also. i hope the american people or the media don't believe it as a fact sophie i i see it as the facts are clear that for whatever reason and i question why the russian intelligence services. attacked our system so aggressively but i think that as a fact i don't i don't think that's the nihil the question then is what did that do and what impact did that have on the results of the election and for what reason did russian intelligence conduct that activity i don't have the answers to those questions that i won't speculate because i think that would be irresponsible i think we have to determine what happened and then decide what happened on the basis of the evidence and i don't think we're there yet but that's the think i don't know that anyone has presented the evidence and the facts have been presented to the public by intelligence agencies and i can probably has been misled intentionally or not by its intelligence community many times like i am i'm thinking w m d's in iraq for instance since the consequences of that are still felt fifteen years or so why really

well welcome to sophie and co-op sophie shevardnadze and today we're got lots to talk about in our program and our guest is. good luck little. slow but. some people simply will. not. use indigenous people as you know we that the speed in. the trees. mostly you should say that's only behind but the other kids. and all of a sudden the man just. simple be there joey was. i said i would enter it even if they would not allow me. even if they will shoot me. i'll. really wouldn't. if i'm not the menominee been thought to be shabby don't panic i'm feeling on my own that i think i meet ok i'm in the economy are you. in the philippines city of angeles when the us military moved out the six tourists moved in. and now a whole generation of fatherless children is growing up here. my dad and i've been in one month of compass them. my very day in sudan like i wasn't i knew no young. son. sorry it isn't the first time the t.v. crew fuse you on and takes you for no don't answer is wrong bet no one that it's true or. that's it the better you want my god it's. a victory you can take the delivered just can't

how to balance room welcome to sophie and co i'm sophie shevardnadze and today i woke up lots to talk about in our program and our guest is. little rock little. oh. oh. oh. oh oh oh oh. oh oh oh oh oh oh oh oh. oh oh oh oh. oh oh oh oh. oh britain's home secretary admits that more needs to be done to tackle the forced marriage of women and teenage girls of asian and middle eastern descent in the u.k. . there was not some office coming from india that there were people waiting to come over for a visa to use me and take it like peter fox right past midrand terrorists who all think one thing coming in you know as a victim we don't want them. as democrats and republicans aggressively campaign to win seats in the local and congressional midterm elections we look at how both parties have been using the image of president trump to get their message across and. slow down. their. one palestinian killed in over two hundred injured and further on rest of the israeli occupation of palestinian territory. this is our to international coming to live from the russian capital where it's just turned tw

sophie and co i'm sophie shevardnadze as former again money president killed by his once a country's civil war takes an unexpected turn. and that is while a saudi imposed book a threatens hundreds of thousands with starvation what is official hold for yemen well i asked karma on a famous yemeni political activist and nobel peace prize winner. the civil war and you see the new bloody twist with president saleh killed by his former allies the battle lines are being violently drawn once again what will bring to the ravaged country. an opening for peace. in the stalemate of war and the law and starving civilians have to wait before the guns fall silent. got among the many journalists an activist winner of the nobel peace prize welcome to the show it's really great to have you with us. yemen's former president has been killed by his former allies they who face the alliance between them which fought a saudi led coalition is no more sallys death good for yemen or is it only going to make situation worse. first of all thank you so fans for r.t. for. inviting me to this program. it's a really tragic and the x. rays event highly son. and we. are young and we didn't wish this and for him we made a great peaceful revolution and forced him to leave the authority peacefully we gave him immunity we gave him also we all know him to have the money billions of dollars that he toke from the also duty during his thirty three years so we need to him to leave the authority with this money but unfortunately he choose to have allianz with the militia often who see and as he always do he is dancing with the with the snakes and now the snakes kill the him now the question the very important question what is next after are the sun the deaths this is a very important thing the situation in yemen well due to the rate will this who will continue will the wall will continue this answer should be this question should be unserved by the yemeni people yet many people should be now the one who handled the solution the one that they stop the war and the one who'll stop that coup how come it's there is a lot of you know solution and yes who is that the many people should be will she talk about this in detail to our call so i want to be back to president solace as a nation now that he is that. his loyalists have no more leader do you think they will start fighting each other and fight. for power. here is we still who we are in the won't you know into the rule and also do you know room so the world isn't stopped this side yemen and also inside yemen so if it will be worse than that. then what had been to now nothing was that that done what does it have been in the now it's how can we stop this was how can we stop the spiting between yemenis and also between saudi emirates and iran in our country and that it's a lot of things so let's not do and this is done to speak about the past let's talk about future how can we prevent any attempts in the possibility to kill you prevent the of this conflict. ok of the escalation i understand for for example one scenario is what president hadi is proposing great now right he is backed by the saudis and he has at that he will declare amnesty for anyone who stops fighting. do you think this promise could end the war. no of course not i'm calling president teddy i'm cool with it with who is the visit him it's president i'm calling to the. government to open that dialogue to start to making because she think with me the show for those who see with all parties of him and they have to find solutions for yemenis they have to stop cuckoo and also they have to stop the world. and when we are within dialogue it's now we are now in the. other stead after the death of charlie son so there is a lot of chances now to make peace in yemen so brizard into how did i end this it demented new government should start a dialogue with the forces but also also who says no has to declare that they are redy to hand over the web as to then is it to me to also duty former president reached out to the saudis calling on them to lift the blockade on yemen with salis death now is there no more hope for the end of the locate. it's a bit and this is this is the duty. of the saudi and emirates allianz none some do and emits indians and then they are held hell being of the visit to me to boot is a dent on restoring his also tedium and they can then that and they are they said that they are with the legitimate other thing with the president teddy but the kid the reality unfortunately the they are cuba in yemen they are to cuba gooding the. about the most important parts of this event to bursa it also liberated. prevents is the good the bad the posts. i did the airports and also they are the curious thing i did the militia. you know the yellow to to then special to him or its they are polish and has had young men under blockade for too we are so ready and the saudis say it is aimed at preventing arms smuggling to they who threw up poles you want to saying it is creating an imminent catastrophe with cities running out of fuel clean water four hundred thousand children starving why are the saudis more afraid of arms smuggling that causing this huge despicable humanitarian tragedy that is through yemen now is suffering from a huge flow from the worst humanitarian crisis is because of war because of who because of. that is a really justified that is a real. suffering from yemeni people in many people all know suffering from disease from hanged good from teh mean from local phoenix to city local food to cation like off axis to. yes we are suffering from old this thing and this suffering should be staub should be and yes lou good to have this look at should be lifted now then this is that look then there are one just then there's another question imagine the blockade is lifted right now imagine and the aid is flowing to those who need it but what if that also opens up routes to yemen for more weapons and yemen will be over flooded with even more military weapons. what is the solution that we can we are calling for so if somebody and him and it's revealed they are really with yemen and they are really want yemen to go. to seoul to experiment and to face the truth and this is a very subverted the legitimate president they should alone i want to brizard intended to return to yemen to rule yemen. inside the city there since provence is that is liberated that is very important so this is the bad deal with the army can make you know the solution all on controlling you know i would visit that you know that is that is that how it's isis sent received for all. we need for with the host is and with all you know grooves it's a very important the most important thing now is to hand it to do with drove the weavers from militia so we should as him and these help others were selves we should solve ai with problems and we can do lives of people i mean how can you solve their own problems how can you solve you your own problems as you have a nice if you're under a bloke eight and you're always three can't solve the problem fully by yourself because a lot of pencil saudi arabia right now and i know you're calling for this location bill if it missed me this did it must be lifted but my question is and my question is lifted who do you think saudis will listen to your calling for the leave to other. you know public speakers and women and men who are actually for peace are also calling on saudis to la louve to split case you and it's calling on the saudis to lift blockade other humanitarian organizations are actually calling on the saudis to lift the blockade they're not listening to anyone. what tale or dialogue are you talking about as there is no i'm fortunately there is no enough brush or. four years old and in merits i want to hear the international community should do that they international community should as saudi why do they lose do like that i think now it's just a statement if they've made some statements the something and by the way you are asking me about the blockade that is led by saudi and in it but you don't ask me about the blockade that is by the by this is backwards from here on they are sister cells at fourteen they are on makes easy in being in being in big government at this mission and does so now we are real the yemeni people suffer from to locate internal rules could look at it there is a special but are led by cyber by by a militia for hosting and the like and home of the blue kids were led by by saudi and immunity and this one took a look at should be lifted now while i was brzezinski now under. house arrest in. his in the house like a house of justice is we have one our president how did didn't return to london why it's a limits city why is it cool buying the most important. lands i learned the parts of the airports in the south and in the seventy percent of fear many liberated going to his wife why do they carry it to me she does. why so many of them as i throw the enemy now i called out of one nation i know coalition they had to buy soda and in minutes then we should let our bridges of the return to ident and to rule and then from yemen. ok total goals how are we going to take a shot of that great right now i did important we're going to take a short break right now if you don't mind and when we're a back we'll continue talking about this we'll continue talking to tom cole carr manet yet many political activists who won the nobel peace prize and we'll talk more about the tragedy and unraveling in the country statement. how can. that. not be out of the mouth of the money that they let actually. this was a good time to. try to move there i'm a mom. finally get a little money now why not. why exchanging in the old people we believe this will be the end. all of my kids i don't want them up a son johnny the moment on a mother how to make you sound a little on the way can not be old enough to want the. most the mother while letting. you know provision out my back on it i wanted to. ask but i. owe. you for your hydro alaska's buskers i just got the. resources you know just like any program on a month although she doesn't but that's honest i don't mean that it's really about . showing us as you know part of is you're not. you're not just i mean what almost what a lot more people have sped up are really difficult to read in the i remember the lord because they don't. give it up as well i must admit that he feels i just don't get off on getting the rest but those were the old vilest beatle songs those people are going to respect damn all of this but i was just this well is one of these i will ask him i want my family fancy car bomb i just got that already yes equestrian he thought of getting up there calling us implemented. yeah but a lot of problems just going to go. over when you are in charge of. your financial transactions or so. they were back when to tell of our mon yemeni activist and the nobel peace prize winner talking about the civil war and humanitarian catastrophe in the country so i will call on now you are a noble peace prize laureate you got the prize for your role in the twenty eleven revolution in yemen five years have passed and the revolution hasn't brought any peace your country is being devastated by war a power struggle which all started five years ago was it all worth it. it's worth it absolutely yeah many people started a peaceful a great peaceful revolution in two thousand and eleven millions of fear many people left their weapons more than civility million piece of wood bins in their houses and went to the street with roses in front of all the violent or highly southern. forces so yemeni people did a great work on stop listening in you country based on democracy based on human rights because the only rule of law we did the great work in the transitional period we gathered only in many parties even with the militia for who's the even with that without any solace allianz in one table and we did a great national dialogue outcomes and we wrote a great draft of could a situation we were just a step forward making putting this constitution for a friend but the cool head bent the killers had been so the coup the chaos the order isn't the result of the peaceful revolution is the result of the counter revolution and it is the result of conflict that is you know conflict so it is not our fault but still we are in our revolution and we will you know that continue i wonder where and dream for change and we will when absolutely no you have blamed the hearses for this crisis. amongst others who are and they're fighting for one side in this yemeni conflict but you also speaking against the saudis who are fighting this is for the sake of president hadi is there anyone inside yemen you would want to work with. do you think that yemen is divided between a group backed by iran whether by somebody and. emits no yemeni people they have they are they they are their own best their own district easy they own vision floated someone to see if i want to continue for democracy if i want to continue full piece of our country for human for didn't if i want them to so it does not say that. it is not under challenge to be with this part to read that's a plus look you've been exe exiled from the who see occupied parts of the country but what's stopping you from going back to the areas not controlled by them after all you've sat yemenis not just divided between a part back with iran another part that's backed by saudis it's all about yemeni people so why don't you go back. as i told you seventy per cent of the liberated. prevents is human from the brazilian the booted from the coup led by horses and the former president allison that is controlled by saudi and interests and i am against them and they are creating militias and that. prevents is and the other i'm sure if i were will return to to that of a provision says it's the said that they are. the same things like the militia for which the both of them are the same both of them they don't want my country to do to be democrats what both of them they don't are our peaceful revolution thirty when. and if you also there is this other progress is that it isn't. with. that with who sees and also with the saudi and iran like for example murder but unfortunately i will not be able to go there because there is no plane that can make me you know free on my movement outside yemen for pressure and for yemeni freedom and for telling the world about our you know issue tackle i've seen you give many speeches and receive honorary doctorates in the west so it's good to see the western audience informed about the situation how exactly are you helping the yemenis themselves right now i mean do you have contacts on the ground through whom you can do something for the people. yes of course you know i yes i am in exile now but the still am in yemen a lot of people in yemen who i'm working with inside yemen everywhere in yemen the people is there the peaceful people that if we should have people is tell then the people who are against the cube ational few minutes and so he is there and the people who are against the cool of militia for who see the previous signal bryza that allison is there i am with them inside and i am with them outside and the most important thing that i carry the hope and the dream of people for making peace for my cancer is now back in twenty eleven you spoke out against the out for interfering in yemen's affairs but according to a cable leak released by wiki leaks you secretly arrange meetings with a saudi official back then and ask for help i wanted to ask you directly is that true. yeah of course through of course through i don't i i and it's true but then we can this didn't lead to said that i also visited the russian embassy and also i visit that i want to get in to see and i visited that british embassy french embassy cut to the embassy kuwaiti embassy on monday embassy i visited all the embassies in the security council in new york calling them to see to the yemen and to to know a lot about in yemen peaceful revolution and to help me in many people on facing the stated idea of the last sunday and to listen to a number say you also said that the leaders of the saudi coalition will be prosecuted for the crimes stay committed in yemen how do you imagine that happening when the coalition is backed by arab states like you said and that they're also backed by their western allies so who will prosecute saudis i call for the international justice to follow all those raters of the crimes against humanity all over the wound so i call the international criminal court to full all those perpetrators against human rights. that the one who are committed to the crimes against humanity so yes i'm i'm calling international theater criminal court to do its work and unfortunately the international community didn't do its work its duty is to responsibility. with those people who suffered from their dictators from their rulers who are suffer from the massacres not just in yemen and in yemen in syria in may on mount or in every really any where around the world as one coalition is fighting a rebel. and the rebel in itself is fighting its own allies at the same time al qaida has been given an opportunity to take advantage of the chaos does yand then in your opinion risk falling to the jihadi s. while it's busy fighting al qaeda and any terrorist group if you want to really do face of them to fight them it is not just can by the security solution not just done by the weapons there is another solution the other solution is supporting democracy. way supporting peaceful movements supporting the development supporting the just as that is very important so in yemen people are you know facing all this is extremism extremists see both during his son experience or if they will appear you know this time but also there is another solution for that how can we face them remember sophie when we made i want peaceful revolution in two thousand and eleven during two years of peaceful missile two years there wasn't one spot almost died so we give the alternative which is peaceful the struggle this whole movement the struggle of build the hatred the small strokes of the love that says citizen bibi being set up. in front of the voice of peaceful people a voice of chanting the blows of peaceful sacrifice for freedom. do you saying there should be a military intervention in your country can i un peacekeeping mission save the day . of course no of course no i'm calling. i'm calling god willing in many ways to start solving their issue by themselves and yemenis against this wall and eyes as i said before with the how can we stop that's the thing and other things that is go out of correlation saudia and images should that equal basis in yemen and they have to let's i want president to return to yemen and that you will help me and many to to to to to to build their country witho

sophie and co i'm sophie shevardnadze as former gammoning president killed by his once country civil war takes an unexpected turn. and that is while a saudi imposable kate threatens hundreds of thousands with starvation what is official hold for yemen well i asked karma on a famous yemeni political activist and nobel peace prize winner. the civil war and see the new blood of twist president saleh killed by his former allies in the battle lines are being violently withdrawn once again what will the new realignment bring to the ravaged country. an opening for peace. in the stalemate of war and the law and starving civilians have to wait before the guns fall silent. among the many journalists an activist winner of the nobel peace prize welcome to the show it's really great to have you with us. yemen's former president has been killed by his former allies they who face the alliance between them which fought a saudi led coalition is no more is sally's death good for yemen or is it only going to make situation worse. first of all thank you sophie and for r.t. for. inviting me to this program. it's a really tragic and the x. rays event highly son. and we. we didn't wish this and for him we made a great peaceful revolution and forced him to leave the authority peacefully we gave him immunity we gave him also we are low home to have the money billions of dollars that he toke from the also duty during his thirty three years so we need to him to leave the authority with this money but unfortunately he choose to have our lives with the mini shelf and to see and as he always do he is dancing with the with the snakes and now the snakes killed him and now the question the very important question what is next after i the son the death this is a very important thing the situation in yemen well due to the rate will this coup will continue will the wall will continue this answer should be this question should be unserved by the yemeni people yemeni people should we now the one who handled the solution the one that they stop the war and the

welcome to sophie and co i'm sophie shevardnadze as former gammoning president killed by his once a country's civil war takes an unexpected turn. and that is while a saudi imposed locate threatens hundreds of thousands with starvation what is official hold for yemen well i asked about cold car on a famous yemeni political activist and nobel peace prize winner. the civil war and you see the new bloody twist with president saleh killed by his former allies the battle lines are being violently drawn once again what will bring to the ravaged country. an opening for peace. in the stalemate of war and the law and starving civilians have to wait before the guns fall silent. got among the many journalists an activist winner of the nobel peace prize welcome to the show it's really great to have you with us. yemen's former president has been killed by his former allies they who face the alliance between them which fought a saudi led coalition is no more sallys deaths good for yemen or is it only going to make situation.

zero zero zero zero zero welcome to sophie and co-op sophie shevardnadze and today we're got lots totalk about in our program and our guest is. little rock little. hello and welcome to crossfire for all things considered i'm peter lavelle is the corporate mainstream media fuel america's cultural wars do they magnify political differences it would seem so how else could it be if the only topic that is discussed and argued over is donald trump or journalist infected with trump arrangement syndrome. cross talking trumped arrangement syndrome i'm joined by my guest rob talban new york he's a political pundit and journalist contributing to the huffington post also in new york we have lionel he's a legal analyst and a news decoder at lionel media dot com and in plymouth we cross to patrick endings and he is a journalist and writer and founder of the news website twenty first century wire dot com all right gentlemen crosstalk rolls in effect means you can jump in anytime you want lionel let me go to you you're also referred to on this program as fella my first question is here does the do t

sophie kamaruddin. seems like japanese stocks leading the gains. sophieet for a sixth day of gains, the longest winning streak since october. the nikkei 225 could be heading for a high. the yen the back foot trading at about 111 517 against the dollar. when it comes to what is helping boost the sentiment in japan, auto related companies are among the best performers, tracking gains. trade uncertainty may be tempered by the u.s.-mexico packed, although jeffrey scott from the peterson institute earlier told us that caution should be had as the deal is a big morning flag for japan. , and nissana, mazda have operations in mexico, which has helped make japan the biggest investor. korean automakers also rising as the terror of risks are seemingly resolved -- as the tariff risks are seemingly resolved. that might make it difficult to build new car plant in mexico, giving those with existing facilities a leg up. kathleen: plenty of tailwinds when it comes to the u.s.-mexico trade deal. stabilizing onso monday following news the pboc will take extra steps to suppo

well welcome to sophie and co-op sophie shevardnadze and today we've got lots to talk about in our program and our guest is. good luck little. slow but. some people jump on leap. indigenous people as you know we've that the speed in the oil the trees. most politicians say that's the only feeling but yes the kids. and all of a sudden the man just. simple be there joey was. i said i win then three it's even if they would not allow him. even if they will shoot we. are all along a million million indeed on the market no new nominee been taught to be chubby and you don't mind if you're not man enough. i think i meet all that i mean because. this is. a church secret indeed catholic priests accused of sexually abusing children can get away with it quite literally i like to call this the do a graphic solution so what the bishop needs to do then he finds out that the priest is is a perpetrator is simply moves him to a different spot were the previous standards not the highest ranks of the catholic church conceal the accused priests from the police and justice system to that end of that's known as t

welcome to sophie and co i'm sophie shevardnadze as former again money president salih killed by his once their country's civil war takes an unexpected turn. and that is while a saudi imposed book a threatens hundreds of thousands of starvation what is official hold for yemen well i asked about called karma a famous yemeni political activist and nobel peace prize winner. the civil war in yemen has seen a new bloody twist with president saleh killed by his former allies the battle lines are being violently withdrawn once again what will the new realignment bring to the ravaged country is some less an opening for peace or a new page in the stalemate of war and the laundry and starving civilians have to.

sophie long is here. sophie, fast—moving investigation. what is the latest? raneem oudeh, who was 22, and her mother, khaola saleem, 49, were both stabbed in solihull in the early hours of yesterday morning. neighbours said they were woken up by the sounds of shouting and screaming outside just after half past midnight. in the last half hour or so west midlands police have released more information on the two women. we know that both were born in syria, and the younger woman had a two—year—old son and the older woman was the mother of six. as you say, a huge effort under way to trace this man. his name is janbaz tarin huge effort under way to trace this man. his name isjanbaz tarin and he is 21 years old. as you say, he is the former partner of raneem oudeh. we have now been told by west midlands police he is an afghan national who was here in britain. rates have been carried out overnight in birmingham in areas of the city and they are appealing directly to janbaz tarin, asking him to hand himself in. they say it is vitally important they speak to him immediately, but they are also appealing for public help tracing him as well and they say anyone who has any information on his whereabouts are being urged to contact the police immediately. inspector caroline caulfield is leading the investigation and she said if there was anyone out there who may be shielding him they should be aware they are committing an offence and will be prosecuted —— detective inspector caroline corfield. we will keep you updated on this throughout the day. thank you, sophie to demand the restoration of devolved government at stormont. there has been no assembly in place since the power—sharing arrangement between the dup and sinn fein collapsed in january last year. today, the dup accused sinn fein of blocking a new deal. protests against the lack of governance began on social media, as our ireland correspondent emma vardy has been finding out. ..that we have no clue what's going to happen, and nobody properly speaking up for us... it started with a facebook rant. so i suppose i want to try and do something about it — i want to say to the politicians, "you know something, enough is enogh and we deserve better," and... after dylan quinn vented his frustration at northern ireland's lack of government, he began to get thousands of responses. so wedeservebetter really grew out of a video that i did, outside my house in fermanagh, and it was a call really for people to join me in some sort of campaign event to mark the fact that we were going to end up withou

old palace room well welcome to sophie and co-op sophie shevardnadze and today we're got lots to talk about in our program and our guest is. little rock little. that offend somebody. you. know. come across like we're all things considered i'm peter lavelle to remind you we're discussing american exceptionalism. ok david you know ever since trump entered the the oval office a lot of it's been trying to understand if there's a rhyme or reason to his foreign policy and i think that even on this program it's kind of coming together it seems to me it's kind of like going back to the nineteenth century great powers competition without all the values that they were pushed since the second world war it just it's just really kind of brute power and advantage and looking for competitive advantage and it's very brusque and it seems to appeal just as interesting pointed out to us in the first part of the program it does appeal to his base go ahead david yeah i think you know it appears to be all donald trump but just as you know reagan and gorbachev came out of the meeting and were told by their

sophie kamaruddin. sophie: after that bounce we saw on monday from mainland markets, we are seeing a bit of a subdued start to the tuesday session. large-cap gauge edging tightly -- higher. check out the china small gauge up 2/10 of a percent perhaps tracking some of the gains we saw in the u.s. listed chinese stocks like alibaba, which gained ground overnight. also, the hong kong dollar. this is after the html intervene to defend the currency for a fourth time this month. ocbc thing the hong kong dollar weakness is likely driven by carry trade activities with apple liquidity looking for more. taking a look at the offshore yuan, back above 6.80. taking a look at some stocks, we are keeping an eye on, we are seeing early movers. chinese automakers continuing to climb. this is after we got robust stocks from chinese adding to the 15% jump on friday.the bmw venture remains intact . we are keeping an eye on other movers like tingyi, climbing over 5%. chinese baby related stocks thet be on the move as daily news reports in china that policy makers may be considering are moving a family planning policy from law. a milk powder maker gaining 1.2% at the start of the session. lastly, we are keeping and i on banking stocks ahead of second-quarter results. you have icbc due to report on august 30. we are expecting pretty decent numbers from this space when it comes to the second quarter as we are seeing slight expansion and lower credit costs as well as improvement when it comes to npl ratios. haidi: thank you. let's stick with the chinese banks. the head of earnings do. let's go to our china correspondent tom mackenzie for what to expect. what are you going to be watching for? particular lee interesting, given the change in the credit environment in china. starting to feed through gradually from the trade tariffs and trade war with the u.s. that's why we are focused on these banks. we are talking about the big four. the bank of china, icbc, agriculture bank of china, china construction bank. the results are expected to be relatively positive, particularly as a result of this place by policymakers to see more lending pushed out to the infrastructure sector. that is expected to have played into some of these earnings potentially of benefit.we have a deleveraging campaign and tighter rates earlier in the year. those are starting to soft in. the big banks also benefit because they have a massive number of branches. that is something smaller banks can't benefit from. that's a positive for them overall. we have seen assets up year on year by about 7.5% ruggedly in the sector. liabilities also rising a little over 7%. in capitalt's bring director of asset management , alex wong. why are these -- we have a return on equity of 18%. 5.2.f this is dirt cheap. look at ccb. this is replicated across the essentially. do people not trust the balance sheet? >> yes, people do not trust the balance sheets. rishaad: but these are just screaming by. >> you have to think about the risk. you are not confident on the returns. they probably yield extremely low returns. think people are very concerned about the efficiencies of the landings -- lending. you think that the bad loan provisions they put into place, you think it's looking quite good? but is a bad loan a bad loan? and where else can you hide a bad loan? >> yes. and i think another factor is the deleveraging process later on. they are delaying that process. that may lead to a return to play later if the situation improves. we have seen the impact of deleveraging because of the sector in china. think -- right now, the trade were actually gives china relief , but the people think if that can resolve -- it can be another painful process in deleveraging. haidi: to that point, i want to start this chat. this is the deleveraging campaign in one shot. the ups and downs. we know the starts have shifted to loosen monetary policy. be aow deleveraging, i'll targeted to begin with, is taking a backseat now. it comes down to the policy when it comes to the banks' earnings? >> that's true. people like the deleveraging process at the beginning of this year. people still think if they go for the deleveraging process than they would clean out the mess in the debt in china. right now, think people don't keeping liquidities and delaying the deleveraging process. will come back to the previous scenarios. we have seen this in china over 10 years. time to time, they lose -- listen, then tighten again. haidi: the scrapping of the foreign ownership laws when it comes to foreign banks, shareholders are not loving these. what foreign bank would be incentivized are inspired to buy a chinese lender? all,think first of gotteners actually have out of those eventually. people would be willing to buy into smaller the major problem is the opening of branches. you have to operate a huge network. reporter: in terms of the general economy, we have seen indicators with a further slowdown. pmi friday expected to see that soft in slightly -- soften slightly. what is your view on the trajectory, given the sentiments war, ande trade broadly some of the pressure points starting to rise to the surface? >> i think we will probably the situation in china. right now, the pboc is just getting people a little comfortable for the renminbi. i think people will still be very cautious. --hink actually are you expecting additional policy steps from beijing to support the economy beyond the ones we have already seen in terms of infrastructure, tech stocks, bonds, provincial governments? >> i think eventually they will do something in fiscal policy. that probably may be the last they could get to. thank you so much for joining us today. alex wong from ample capital theseg us to go through banks and general market conditions, joined by our china correspondent tom mackenzie. some headlines coming through at the moment with regards to nafta. a mexico trade deal. this is what we've got on the moment. hope fort offers no china. that's currently what we have coming through here as well. we've got trump and trudeau, unfriendly words being exchange between those two. they are at the moment continuing productive trade talks. at honda. a look canada.ufacturers in larry kudlow suggesting they ifld be hit by tariffs things do not work out with a trade deal with canada. biggest ones are ford, fiat chrysler, and gm. let's get back to sydney. first word news courtesy of paul allen. paul: thank you. germany and france say they are working on financing solutions to sidestep u.s. sanctions against countries such as iran, including a potential role for central banks. the discussions also involve the u.k. and there are signs europeans are getting serious about the level of independence from america. the french finance minister said you must be a sovereign continent, not a vessel. france is preparing contingency plans for a no deal brexit. the government will present a draft bill in the next few weeks that will include measures such as looking after british people already living in france and assuring what it calls fluid border control after the u.k. leaves the single market. london and brussels had hoped to reach a deal by october, but it's increasingly clear the deadline will slip. the lira slid again after a week --relative calm with markets and extending recent losses as the u.s. trading session got underway. currency swings jumped past 40% after dropping during the holiday last week. the lira has been battered in the past month with u.s. sanctions and concerns about turkish monetary and economic policy. too go private drama may have overshadowed signs of progress on the model three. bloomberg's tesla trackers suggest the production of the important car may have exceeded the target of 5000 per week of much of this month. to week, buty week indicate tesla may have actually topped 6000 cars a week for late august. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. haidi: thank you. coming up, china seemingly unstoppable, continuing to boost developer profits. the booms and the bubble theories, next. this is bloomberg. ♪ rishaad: we are back with "bloomberg markets: asia" in hong kong. i am rishaad salamat. here in sydney. several chinese developers have reported first-half profits, a number of them seeing high profit margins as home prices continue to rise. bloomberg intelligence analyst patrick long joins us. should we expect this to be continued in the second half? reporter: i think the situation is going up, but interestingly, the momentum is strong. the problem i think is more on the margins. the first half, we see lots of -- margins still in year, overhalf, next the past two years, the margins coming down. it could be a major concern. haidi: what are the biggest risks for the targets? so far thisthink year they have done well in terms of achieving the targets. of course, the problem right now lack countryn that garden, the safety issues. they need to slow down in terms of the progress of transition. that could also apply if the situation gets worse. i think country gardens story they fight forbe the higher market share on one hand, but on the other hand it could be a challenge for them to maintain such momentum in the next two years. rishaad: we like to see the same thing from ever grand come out with them later. reporter: i think the results are coming out soon. interestingly, i think -- on the other hand, the problem is they all have high leverage, over 100%. that is a big problem p or the funding cost is going up this year. going up this year. when you compare it with others, it's only 4% to 5%. rishaad: thank you very much. we will look a little bit more at ever grande as one of the movers. evergrande seeing a little space, up about 7/10 of a percent. on the other end of the spectrum, country garden down about 2.5%. when it comes to evergrande, we could see gains for the stock. the results on the radar very much. i want to highlight another thing i have in seeing make moves here. chinese solar power related stocks gaining ground. we have a few potential headlines that could be sparing gains for the sector. there's a reuters report that the eu is set to end chinese imports in september. there are rumors among trade magazines that china may be putting up 10 gigawatts worth of unsubsidized projects on line. also when it comes to the outlook for energy generation, bloomberg intelligence saying clean power will be the fastest form of production over the next two years. haidi: thank you so much for that. coming up next, we will take a look at apple. is this an upgrade or just another s year? we will look at the features of apple's new upcoming three iphone x's. are they exciting enough to grow back the market share apple has lost? this is bloomberg. ♪ rishaad: let's take a look at -- let's take the opportunity to look at the stories trending across the bloomberg terminal. a new trade deal with mexico that the united states has pursued to replace nafta. on tictoc, on twitter, how the toek island is gearing up run on a completely -- completely on renewable energy.that's trending at bloomberg.com. we will take a look at the upcoming phones, as applicable down on last year's flagship design. a look at those stories trending on bloomberg, online, or on the terminal. theseg about the iphones, three phones will be launched said to be keeping the edge to edge screen design of last year. peter elstrom joins us from tokyo. how different will the new devices be, and why three of them? reporter: hello. that's right. they are going to take this iphone x design that they introduced last year and they are going to bring it to three different models. it will be that edge to edge screen as you mentioned, a very distinctive not at the top of it. also, there will be a large sized phone and two smaller sizes. two out of the three will have oledspri -- screen. have somewill different price points to choose from in this new selection of iphones. internally, reporters dug out tons of great information including the codenames for all the different funds from the d 33 and d 34. internally, they discovered apple employees are talking about this as an s model year, meaning it's mostly internal changes and less significant design changes. apple is planning more significant changes next year. who would likely be supplying the new models? that is detailed within the story. willaiwanese company continue to be the -- helping of.with some the phones you will also see taiwan semi conductor continuing to be the main semi-supplier of the processor for the phone. then you've got others that supply the camera. apple is very famous for putting on its phones that these are designed in california. they of course are made in asia by suppliers scattered from taiwan to mainland china to japan and other places. it will continue to use that extended. supply chain dave got throughout asia. . -- extended supply chain they have got through out asia. rishaad: what is the growth strategy at the moment? reporter: that's a good question. the smart phone market went through growth for many years, and that has changed. we saw a decline in the number of units sold last year for the first time. it will continue to be modest growth for the industry overall. apple is not immune to that, but they have shifted their business model in a very interesting way. than 1.3have more billion active users on their network. they are able to capitalize on that in a number of different ways. one, you have seen price points from apple that nobody else has really tried. the iphone x started at $1000 and went up from there. you will continue to see high-priced devices. in addition to that, they sell services to these customers. it can be content like music and movies. they also use itunes to offer other services like apple pay. that has been very successful for them when you are able to spread that across 1.3 billion people. there are a lot of opportunities to cash in and make it issued money. apple's polling that lever to boost profits, even if the number of smartphones they sell each year isn't necessarily increasing at the rates we saw in the past. you so much. thank peter elstrom, asia tech managing editor, going through the latest apple offerings we know of. let's get a check of the latest headlines.ash to your to has confirmed it is expanding its alliance with uber for half $1 billion of new investment in autonomous car's. the deal values the right here billion. $72 they will make vehicles equipped with the self driving technology. a third-party will operate these, although that entity will is yet to be identified. boeing is said to be in a delivery bottleneck with a dreamliner. the all things 78 seven blog says supply problems are affecting at least six planes and production of two more is being impacted. hainan airlines has requested a delay and the dreamliner for air china is sitting in storage for unknown regions -- reasons. haidi: jetblue is the first major u.s. carrier to raise the cost of a checked bag to $30. the five dollar increase came into effect on monday.the charge for a second bag goes up by the second amount to $40. a third bag rises to $150. jetblue is facing weaker revenue, rising fuel prices, and other increasing costs. now southwest is the only major region -- u.s. airliner that doesn't check for additional checked bags. taking a look at emerging-markets, the mexican peso up on news that mexico and the u.s. have reached a yet unnamed trade deal. it is not nafta, it is something else. also implications for canada, of course. expectations canada will come back to the table. given up some of the earlier gains, but the broader sentiment is still there. rishaad: taking a look at the carmakers who may be affected hereby a tariff on canadian made cars into the united states. at the moment, investors are shrugging all that off. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. reading across the screens, the region is rising. president trump's post-nafta trade deal, trump hailing a great deal. -- ae on an optimism renewed optimism, but that is not moving china. i am rishaad salamat at -- hong kong. this hour, noble shareholders backing its controversial rescue plan, but after years of losses, is there anything less -- left to rescue? this is this is bloomberg. -- this is "bloomberg markets: asia." positive sentiment, could there be a breakthrough in global trade? deal between the mexico and the u.s., it was a last-minute announcement and certainly the door remains open for canada to rejoin. president trump saying it is not nafta, it is something better but not a great deal of detail we know about it. still, pretty bereft of data points in asia. u.s. stocks hitting a record high for this part of the world -- spreading to this part of the world. rishaad: the hang seng, .75% up. this is the singapore market, up nearly 1%. australian sector doing well. it is a case of the clasping three-quarter school -- full. deal with mexico and calling on candidate to get on board or risk being left behind. at an ovala deal office event with his mexican counterpart, joining by conference call. >> i will terminate the existing deal. when that happens, i can't quite tell you. timetable withhe congress, but i will be terminating the existing deal and going into this deal. negotiating with canada relatively soon. they want to negotiate very but one way or another, we have a deal with canada. it will either be a tariff on cars or a negotiated deal. rishaad: our senior international editor is joining us. does this mean nafta is dead? or is it just nafta 2? >> it depends whether canada joins. not join, it is a deal between the u.s. and mexico. it is not a renegotiation of nafta. become clear once we hear what canada is likely to do and canada has some real problems with some of this, including protections for its dairy industry. it is between the u.s. and mexico, then it likely has to go back through the u.s. congress because it is a different deal. it is a bilateral deal and it is a midterm election year. they don't want to stick around too long. a want to be on the campaign trail, so it will be interesting to see if they get quick approval and the longer it waits, there is a question of getting approved. also, it is ame globalized supply chain and the auto sector has been a sticking point. what do we know about the terms? jodi: they were able to reach an agreement on autos, which is important because that was a major sticking point. they basically agreed to allow regional content, auto content, to increase to 75% from 62.5% under the current deal. the u.s. softened its requirement that the deal should be looked that every five years to every six years. that was important, as well. again, there are some big issues with canada so we will have to see what happens there. interestingly, this does not necessarily result in more manufacturing jobs in the u.s. or protects those jobs in the u.s., which of course, was what started with canada. going toed he was renegotiate, get rid of nafta because he wanted to keep more manufacturing jobs at home. this doesn't necessarily promise that. haidi: and it doesn't necessarily bode better when it comes to u.s.-china trade ties. his report from ing in asia saying the deal with mexico offers no more hope than we had yesterday when it comes to negotiations with beijing. beingdespite the market excited about this right now, ais really doesn't seem to be conduit for a deal with china. the president says it is not time to talk about an agreement with china and there are many different issues with china, more complicated issues. it would show that if this goes through, president trump is willing to make trade deals but again, they are a long way from getting this deal done and it would be a very different trade agreement with china in any case. u.s. managedying to bash into shape this deal through sheer negotiating muscle. maybe not an approach that would work so well with beijing. jodi schneider in hong kong. let's keep talking about implications for the markets. clearly positive, we see the looney climb and the mexican, as well. did the market come off of low expectations? rally.s more of a relief in general, the feeling of relief that we haven't had a situation where trump throws up his hands and says that is it. we are just going to can nafta. instead, he's showing this was about being able to win something from it and it might almost end up that what he wins is the capacity to say "i am canceling nafta. i am terminating nafta," and we have to wait for what it means for six months until we get a new congress and they can actually say something. it has taken some of the heat out of that. what about the outlook for the canadian dollar and the peso, too? the peso isll, looking a bit stretched. it has gone up very quickly, almost 6% at one stage. just this half. there are some concerns about what the new mexican government will do and just where the mexican economy will really that strong -- be that strong in the wake of this partial deal? the looney, which has held up pretty well despite the fact from theda is excluded deal, it looks like it may have further to go because the bank of canada is expected to raise rates in the coming months and the canadian economy is actually looking slightly in better shape than a mexican one. . rishaad: thank you for that. mliv strategist with us. you can follow more on that story and all of the day's trading. go to mliv and you can do a market run down in a ingle click. there is commentary and analysis. your moneyd out how is being affected right now. moving on, let's get to the first word news and paul allen. u.s. farmers will get almost $5 billion of direct government aid to compensate for losses backed by the tit-for-tat trade war with china. andean will get 3.6 million another two on the list with 209 million. alson't con producers will benefit. payments start next month ahead of the harvest and the crucial midterm elections. germany and france are working on financing solutions to sidestep u.s. sanctions against countries like iran, including a potential role for central banks. u.k. andns involve the are assigned european powers are getting serious about independence from america. france said europe must be a continent, not a vassal. china is hitting back at international criticism of its belt and road trade infrastructure plan, saying it would assess doubts in an objective and rational way. aims to linkoject china with central asia, the middle east, africa, and europe. some question the cost and feeling it is a covert attempt to extend beijing's influence around the world. >> effective financing and valuable assets have been created for relevant countries and their people. economic development has been boosted, as well. no debt trap has been created in this process. quittingm turnbull is frontline politics. abc reports he will resign from parliament this week, triggering a by election. till lastfrom 2015 week as prime minister when he lost a vote of no-confidence in the liberal party. turnbull leaves politics trailing in the polls. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. haidi: still ahead this hour, white -- when he might not to rent in this e.m. rally. we are joined live next. this is bloomberg. ♪ rishaad: we are back. this is "bloomberg markets: asia ." looking at emerging-market horriblet has been a year with tightening dollar liquidity and rising interest rates. global trade tensions. there are signs there could be a turnaround. capital assetst management. let's conceptualize -- or contextualize what has been going on here. here are emerging markets. the question is whether there are signs of a potential turnaround for emerging markets. yes, conditions could be pointing in that direction. as you can see from this chart, since mid-april when we saw a resurgence in dollar strength, we saw emerging assets that took a hit. currencies, stocks, but with dollars taking a breather overnight, you saw e.m. stocks clocked the biggest jump since june and em currencies the most since january. tuesday,altering this mexican peso giving up gains overnight, joining the lira on the weekend of the em spectrum. the dollar picking up a touch this tuesday. chinese stocks are fluctuating. crowght be too early to and ite em story is back is opined that the balance of risk suggests while one can enjoy the current balance, he is warning not to herald the episode as a start of a new bull market. with that context, let's bring in our guest to look into whether or not this might be the case. you have this chart that describes the pain of e.m. markets the course of 2018. you must positive signals on the trade front and support for policymakers like in china. could this be the start of a new episode for e.m.? >> first off, it has not been a good year, but we have been around for 20 years. i would not call this a horrible year to start with. throughout 2017, there have been so many discussions come -- relating to geopolitical risk. 2018 is we seeing in are getting into action so what markets have been telling us, of course, investors might be worried about the implications ,n companies and corporate's but what we are seeing when we are observing this very closely and monitoring these companies we invest in two, so far there has been little impact and when we are listening to the people who are telling us about e.m. guidance, they are not really worried, either. we do not think this is basically the case where you have to price in a real big issues in terms of major slowdowns. opportunity for investors to enter or reenter emerging markets. sophieof risk, there is some optimism to be had around the em space and companies aren't necessarily being hit as hard as they can be from trade concerns, but given the risks posed by monetary policy, what the fed has projected for itself, where could challenges persist for e.m.? is now ahe issue question of sentiment, and we keep hearing risk on, risk off. yesterday was risk on, when you are a long-term investor, you a long-termk with perspective and we are saying right now, the situation is a bit uncertain because any day, you could wake up in the morning and there will be a new announcement, which is swinging the market. rishaad: or a tweet. karine: indeed. chinesey, the reintroducing this countercyclical factor for the yuan. nafta deal, no more. now called u.s.-mexico trade deal. so we are in a situation where there is a lot at stake in sentiment and that means that in some markets, you have missed pricing and that is very good. sophie: you mentioned the yuan. haidi: i want to throw up t

sophie scimansky in new york. sophie, thank you.t is gametime this week in the german city of cologne. hundreds of thousands of gamers flocking to the world's largest event of computer and video games. are reporter dived into the crowd which was anything but sedate. reporter: bang, and you are inside the game. not just on screen. the recent megahit fortnight breaks with tradition. playing is free and has attracted 125 million people in one year. >> the community is why the game is so successful. even things like nuits -- like new emotes or skins explode. reporter: these features are what players play for. -- pay for. others every state point where they get paid -- have reached a point where they get paid. hard-core gamers were at the heart 10 years ago and is still our. but esports has bought -- brought them from the basement to the statage. >> we used to be happy to get a mousepad or hardware, anything, really. now if you plate in the national league it is up to two euros per month. you can make up the five digits. reporter: it is

let's get more on market reaction and do a market check, and bring in sophie kamaruddin. sophiey friday. we have stocks opening lower on the board. the nikkei 225 snapping an eight day advance. investors in japan will have industrial output and job data today. it is a heavy date of line of best data lineup. you have china tmi a major highlight. it may point to stabilization. you do have the offshore yuan, trading below the 687 handle against the dollar. this as trump reiterated his stance that china is trying to devalue the currency. we also have korean sector activity. check out the jump we see in the korean won. it is now trading above 1114 against the dollar. the cost be also on the back him up by a third of a percent. the mood is still down for the kiwi dollar, as well as then bx 50. this after we saw the set from new zealand. the testament falling to a two-year low. this is confidence sinking to the lowest levels in a decade. the yen has seen benefits from this risk off movie. we have trading back below the 111 handle. the best month since february after trump said the eu o

with all that in mind, let's get it to sophie kamaruddin. sophiethe marketplace. asian stocks mixed. japanese stocks. gaining ground the nikkei 225 -- japanese stocks gaining ground. the nikkei 225. the fed will raise rates as long as the u.s. economy stays on track. take a look at what's going on with aussie assets. we do have aussie stocks looking fairly resilient. up.a x 200 -- asx 200 the aussie has been taken on a ride, trading just above the 72 handle against the dollar. we are set for a third day of declines. as we digest the latest from canberra, we have high volatility on the move for the aussie dollar. we do have this picture then, guys, of putting rba rate hikes further off the table, potentially. soph, thank you so much for that. let's go to the latest in canberra, just past high noon. the deadline for the liberal party to decide who should be the next prime minister. lots of drama, lots of misinformation as well. paul allen is joining us. over the past few days, you haven't been able to write half the stuff has -- that has been going o

of that and other claims last time check in with our financial correspondent sophie szymanski she's on wall street for us sophie seems like investors have lost faith in the latest. all these have been too tough we've the plan was to make everything is their protest such a take away the pressure of being a publicly listed company judged by quarterly earnings short term profits numbers improvements in the performance as an automaker while for a month it is more about the future and about changing it it's about the vision the expensive fortune and so it's not easy to find investors who stick with you while your company is still not making any profits at all so now you want to into all private but people start to believe that he doesn't have the money to do that the saudi arabian front seems to be looking into a competitor as we just heard and then investors are also on top of that concern for mark felt he tweeted something as late at night this weekend and the board seems to be thinking of a number two to help him out and then huffington post for honorary and i have friends who tweeted he should get some sleep and

sophie scimansky in new york. clearly the latest ratcheting up of trade tensions between the u.s. and china there. how is that playing out on wall street? sophie: investors here tend to downplay concerns about the trade conflicts for the longest time and have been focusing on fundamentals and earnings. but when we look at the chart on the dow jones, for example, and other indices, we can see subtle signs of decline in optimism. wall street lost a few points on thursday and friday. it looked a little better again but investors don't pay to tariffs at all. the back-and-forth between china and the u.s. has turned into a downward spiral, with neither of the two sides giving in. wall street is asking where this is going to end. will trump be able to turn this into a win-win situation, or at least an america wins situation, or will china think he is taking it too far and retaliate even harder? once american companies suffer from protectionism, wall street cannot ignore the possibility o trump's trade policy harming the companies they are invested in in the long term, but there are a lot of distractions at the moment like earnings, the market cap record from apple. the s&p 500 and the dow jones rose on friday. helena: sophie scimansky in new york. thanks for that, sophie. amazon founder jeff bezos could be falling behind in the private sector space race. there are signs that his firm's heavy rocket set for liftoff in 2020 may be falling behind schedule. his company faces stiff competition from none other than elon musk's spacex. reporter: just a month ago, amazon founder jeff bezos' rocket company successfully pulled offff its m most importat testst to date. but reports are saying the 2020 liftoff date may be moved back. engineers are still finalizing details on the heavy launch rocket. bezos has stressed that the timing depends on perfecting vehicle safety. >> and touchdown! >> this vehicle is going to carry humans. we will make it as safe as we can mamake it. we are going to test it. we are not going to take any shortcuts. we will put humans on this vehicle when we are ready and not a second sooner. reporter: the reusable relaunch of vehicle will be used to transport satellites. it will take tourists in

sophie is here with indexes opening up. sophie: we have the regional benchmark seeing gains up .1%, but a mixed picture and we are seeing the yen gaining ground. thent to highlight kiwi-dollar back below 67 u.s. cents after the core dataset we got out of new zealand. home owning approvals fell the most in over three years. the aussie dollar, back below 73 after the miss in building data and falling home approvals. fell second quarter capex .9% on a quarterly basis but australian firms plan to spend 102 billion aussie dollar through, 2019, slightly better than forecasted. korean assets shifting gears, up one cost be -- cospi third of a percent for a 10th day in gains. bond yields are jumping ahead of the policy meeting friday. other moves in the bond space, you do have jgb yields nudging slightly higher ahead of the boj's bond buying plan for september to be released friday. it could be a matter of time before the 10 year yield of rises above the .2% level. treasury yields are keeping fairly steady. moves in commodities. metals falling, copper also under pressure. i want to look at steel stocks of note given trump's latest commentary around tariffs on steel and aluminum. exclusions were granted to korea and brazil. cosco game 2%. moon-based, rising 30% in seoul. we have steelmakers in china gaining ground. we have seen the possibility for steel producers on the mainland to tick higher, higher than a decade thanks to capacity cuts pushing fuel prices to a 2011 high. overcapacityel being tampered down. you so much.k let's continue the conversation. the bigointed out movers, especially in south korea on the back of the latest trade story. steel tariffs, donald trump mentioning this earlier on about 60 minutes back let's bring in jody schneider -- jodi schneider. south korea is now exempt. jodi: it is unclear. the president came out late in the u.s. day saying tariffs would remain except south korea and brazil are exempt on steel. argentina is exempt on aluminum. it looks like he is trying to make these carveouts and gain leverage in future talks on what happens with the tariffs. otherwise, the terrorists remain in effect. it seems like he is making a point, saying we continue to be tough and will be tough on trade. stephen: meanwhile, dealmaking continues when it comes to canada. we are calling it the post-nafta deal. the latest isdi: they are talking. the canadian foreign minister is having a whole series of meetings. the u.s. is imposing a deadline. robert lighthizer wants to tell congress on friday they have a deal and president trump saying he knows canada wants to make a deal. canada is saying they would like to make a deal, but the right deal as justin trudeau says. the foreign minister who is there for the talks says there is still a lot of hurdles. one of the big ones we've talked about before is their insistence that the language in the nafta agreement remain in any new agreement about having panels, resolution panels for anti-dumping disputes. that is hard and fast. there is watered-down language on that in the agreement with mexico. that appears -- someone will have to blink there. dairyare still hurdles on production, which is key to this economy. you so much, jodie snyder. our bloomberg senior international editor on trade. our next guest says the u.s.-mexico agreement can have hope for all sides. laura, great to see you. is it overly optimistic to extrapolate these cautious developments between the u.s., mexico, and canada to say this means it is a more conciliatory type of attitude from the trump administration across trade, generally? i think we can look at it two ways. essentially, it is a little naive to think that while agreements can be made elsewhere, china will be the difficult one. we know when we saw the brighter spots between europe and the u.s. a month ago, it would end up that he would be making good relationships with a number of other countries and that would be leaving now china. that does seem to be a theory out there and right now, the events of the last week could support that theory because we are waiting for some positive developments rate -- relating to china and september will be a good month for that. at the same time, we could step back and think maybe this is his approach. he have had a lot of noise about nafta and here we are suddenly on friday may be going to have a new deal. maybe this does say something about trump and the way he is approaching this process. there is a lot of noise and controversy at the beginning but at the end, a pragmatist who may be does get stuff done. that is still to be seen, which is correct but it is something markets are watching very closely. haidi: cautious optimism. this chart is pretty simple in correlation growing to record high correlations when it comes to what the yuan is doing. the impact in the correlation with global stocks. you can see the correlation play out for the commodities index and other fx, which isn't pictured on the chart. in terms of sentiment in asia when it comes to emerging of ats, is the yuan more -- than the u.s. dollar? laura: overall, the moves on the yuan have been certainly a bit destabilizing. it has been a very big move. overall for us, the u.s. dollar remains the key funder and we have to remember that for all parts of the globe but certainly did she she she we have seen on the -- depreciation we have seen on the chinese currency the last month has caused a lot of issues in terms of the outlook for the dollar in the near term. what happens on dollar china is very important now. it looked like we would stabilize around the 680 level. it appeared a 690 was too much and we saw the authorities in some sense step in there. that message is clear, but we are excited to see it growing up again. when you think about the dollar's weakness against other the canadianke dollar, the british pound, relating to those deals, it seems like at this stage, the dollar-china story could be heading in a different direction strength continuing is a concern for markets. david: you are right in the middle of all of this. i am curious, do you think markets play a bigger role in the foreign exchange rate? laura: there are certainly levels that the pboc are watching. overall, when they see the market push too high, they will take a step then. we are seeing a number of levers deployed in china. when you think about the fiscal stimulus, writes over there and it seems like the currency is another tool they can use. so far, they have been successful in doing that but we worry if you try to do all these different things at once, the policy objective at the end of the day can become confusing and may be a difficult thing to maneuver over the next few months. if they don't get the results we want and we don't see data picking up over the next couple of quarters, you have to think they will step it up in 2019 and that is something our economists are trying to focus on. limited be more stimulus than the market thinks but we will have to see how successful it is over time in achieving the objective. david: the data has certainly pointed one direction so far despite the levers being pulled down. laura fitzsimmons, we will be back with her in a few minutes. in the meantime, paul allen has an update of the first word news. special counsel robert mueller has asked for more time to consider whether to retry paul manafort. he does notsays have information -- sufficient information because the lawyers haven't filed motions. paul manafort was found guilty on a string of charges last week. the jury couldn't decide on 10 more counts. turkey has reintroduced borrowing limits for overnight transactions in the interbank money market, effectively tightening liquidity after two weeks of unrestricted funding aimed to contain the euro crisis -- lira crisis. 7 billion u.s. dollars, looser than the before augustrced 13 when unrestricted funding was allowed. india's plan to weed out black adding high denomination notes hasn't seemed to work. billion repeat circulation, about 70 billion was hidden illegally to avoid tax. the r.b.i.'s annual report says more than 99% of the notes have been handed in, suggesting there was hardly any cash wealth unaccounted for. amazon made its biggest gain in --r months and is in with a within touching distance of the magic trillion dollars valuation. the stock surged 550% since the end of 2014, adding $880 billion in market cap and making jeff bezos by far the wealthiest person on the planet. apple became the first u.s. company with a 13 digit capitalization, crossing the line for the first time on august 2. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. haidi: coming up, we will get more with jpmorgan's laura bondimmons, looking at investors considering italian hedges. talkingso, we are chinese headline -- airlines. are they taking flight or are they grounded? we'll bring you earnings into focus. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i'm haidi stroud. --id: i'm debiting glass david english. europe may be relying on hopes of a new round of government bond purchases. rome had reached out to the ecb about the new program to fund its -- protect its debt from speculation and a downgrade. let's bring back laura fitzsimmons from jpmorgan in australia. anoticed your college has chart of the bund futures. we talked about italy. those yields have an -- have gone up and not quite to the levels of a couple of years ago. why is italy important and what does it do to the spreads in europe? laura: it is an interesting day because we are about to have the first real test of the italian bond market in terms of the supply coming. we are getting a decent amount of duration that will hit the market and it is the first time since the end of july, before the selloff in the btp's and in italian debt generally around some of the latest headlines back at the beginning of august but still, the market hasn't been tested in terms of supply at the curve since then. that is why it is important goay to see how demand does at the auction. it is important because the btp-bund spread had been running pretty elevated and overall into september, italy will be a real focal point. is clearly not sounding very good from that corner at the moment if they go to the ecb looking for more qe2 protect them. pretty nastyo get and today's appetite will be watched very closely because if it doesn't going well -- go well, that could move things quickly and we could see more widespread the against germany. at this stage, it is a little too early to call, but we will be watching it closely tonight and overall, as people think about the fourth quarter, i think european markets may have to contend with this more than they would like to. david: i am looking at a schedule. 5:00 p.m. hong kong time, the option of five and 10, italian debt. you, thee i talk to treasury curve significantly flattens from the last time we speak. how would you describe demands for shorts and treasury now? -- in in treasuries now? data, we wouldee argue against that. some of our metrics suggest that market is not as short by any stretch of the imagination. a lot of shorts are basis trades against physical bonds, physical treasuries. we have to be careful when we look at treasury future shorts in the march it -- market because it is something to be aware of. maybe people looking too much for something that is not quite there. haidi: i want to and closer to home. we are seeing the kiwi dollar and aussie veer -- be the punching bags out of today's fx session. part of that leads to unfortunate numbers for both economies. consumer sentiment, business sentiment. the with the likes of -- raising morgan rate -- mortgage rates, are we pushing out to when we see a moving the rba? laura: we haven't had hikes and our forecast from the rba for the last cycle and really, this does suggest to us the situation can continue because we are going to have out of cycle mortgage rate increases. yet to see whether other banks can follow, but there is a good chance they could. one of them, at least. beenof the data have better in looking for gdp next week. some of the components had been looking better until today, then the number was disappointing versus market expectation. it is worrying, but means it is -- the rba is probably in no position to be doing anything anyhow, but this will give them more reason to be cautious. as you mentioned, the new zealand numbers very weak. asiness confidence falling to 10 year low and people were hoping that today's number might see that improve a touch. the retail number was a little better. the government is trying to work with businesses on that problem but at the same time, it feels like we are very much creating new lows every time in confidence levels. them dovish and new zealand rate markets very volatile. haidi: laura, thank you. inra fitzsimmons jpmorgan australia. it looks like we may see a new australian government before we see a rate hike in the rba. you can catch up with all of our interviews using our interactive function, tv . you can watch us live, dive into securities with the bloomberg functions. this is for bloomberg subscribers only. this is bloomberg. ♪ david: this is bloomberg markets. david ingles in hong kong here. revenuece offered forecast that beat estimates, signaling strong demand for its cloud-based app software. sales in the current quarter will be as high as 3.7 billion dollars, about $400 million above the average in a bloomberg survey. salesforce also raised its full-year revenue forecast $13 billion. haidi: facebook is going international with watch. youtube.hallenge to content makers in five countries will be eligible to take a percentage of the ad revenue that comes from material around the world as long as their videos on watch are popular enough and meet facebook standards. david: the company that brought us milk chocolate, and rocky road ice cream now says it is worried about our health. nestle is joining the trend for personalized nutrition with dna testing and the modern up session with photographing your food. the program is launching as nestle pivots toward consumers who want to improve their health . asia's two economic powerhouses appear to be slightly closer amid trading tensions with the u.s.. finance minister is expected in beijing today for talks with his counties -- chinese counterpart. we go to james major for more. what is this about a new agreement between beijing and tokyo we hear? fors: the big centerpiece today and tomorrow is the fx swap which expired a number of years ago during the period when there were tensions over the islands in the east china sea that both nations claimed. there was a swap that expired. they are deciding how to renew that. china is bringing a delegation of officials to discuss debt management, how to deal with an aging society, certain areas japan has a lot of information on and can share it with china. more broadly, the countries are looking to improve relations. there was a long period of a very bad relations up to 2012 and they have gradually gotten better. we have seen a number of japanese mps and deputy ministers coming through beijing in the last week or so. abe is set to come in october. relations looking up, the fx swap will be the main deliverable, but it is a sign of improving relations. better discussions and more discussions between the world's second and third largest economies, especially as countries have a number of trading disputes with the u.s. right now. david: david ingles --james mayger live out of beijing. thank you. sophiewatching what is happening in japan into the lunch break and the big movers there. sophie: nikkei gains fizzled out after a seven-day rally. movers in metals, the stainless steel player losing ground. the outlook for korean steel players, suzuki is falling after releasing production numbers for july. yodo grouphlight bunk gaining ground. i also want to highlight data demonstrating foreigners have continued to shun japanese stocks. net sellers for a fifth straight week. you can see that chart in the gtv library. a quick look at jgb yields. a slight pickup in the 10 year yield above .1% for the first time in two weeks after a no trade reported on tuesday. this has markets are trying to its -- ss the boj's policy tweaks and we are waiting for bond buying plans for september do from the boj. . friday there might be nervousness ahead of that as there is speculation to what the reaction to the policy tweak may mean when it comes to efforts to push long and yields higher. yields.and that is a

sophie is looking at the markets. sophie: quite a few catalysts to keep an eye on. asian stocks lower while the dollar is gaining ground, the bloomberg dollar index up one third of a percent supported by losses from oz a's -- aussie. this is being felt by the political turmoil in camera. the kiwi dollar on the back foot and we have the yuan also retreating. at 680 6.20 against the dollar as u.s. china trade talks have resumed. they want to maintain some of the weakness for the currency. in equity markets, the 100 down. andes could -- for korea china stocks have been fluctuating, as well as hong kong. some movers, qantas, the most in two years highlighting concerns around fuel and plane cost. also tbt telecom, gaining ground amid speculation it is mulling talks to verge with vodafone in australia. that is boosting singapore. me --a check on sound since ipo, trading above 18 hong kong dollars. it has been a rocky road since its make -- it made its debut. a mixed picture when it came to that income statement. thank you so much for that. breaking news out of australia, watching the leadership crisis. australia's lower house has voted to suspend parliament. parliament is adjourned until september 10 amid its crisis. there is a two week break there before parliament. the prime minister could still resign. we could see the emergency meeting, a vote on the leadership happen today, tomorrow, or sources say as late as monday. looking at other pressing top stories. time, a fresh tariffs land from the u.s. and china. the trade dispute has dominated conversations on bloomberg today. >> if we simply want to have less of a deficit, that is not as hard to achieve and china can do that, but finding more long-term solutions will be much more difficult and i would say more difficult by ourselves. >> there is a growing level of concern that unless both sides do something differently, this -- or this dynamic between the united states and china can endure for some period of time and costs start to go up with each passing month -- month. on inotiations going china and the u.s., now in washington this week, helpful and we believe a solution will be put in place and will limit the implications of the trade war. we are joined by a chief asian economist. affecting what you are predicting for the global economy and what happens in asia? how visceral do you think it will get? we are having to take a very hard look at all our forecast numbers. growth been trimming the numbers across the region. some places, a bit more than others. we have been taking the ask to some of our fx -- axe to some of our forecast models. it will clearly have a big impact. how big depends on how far this keeps being pushed. if it is $50 billion each way, we can all somehow absorb that. when it starts getting into the 500 billions, the magnitude is many times the expansion of the scope of the tariffs. rishaad: the tariffs themselves, probably won't do too much but what would do more damage is the uncertainty that comes with them and the delaying of investment and capital expenditure decisions. robert: and we have already seen that. the tariffs themselves have barely been in place a month and that limited levels, as well. what we have already seen is some softness in the china data and in the labor market, where it has clearly had a deterrent effect on employment. prettys of gdp, china is well placed absorb this by throwing money at it. more fiscal stimulus, more currency weakness, more liquidity just to keep things propped along but it does still hurt. xi putse goals president in place, the deleveraging, getting rid of excess capacity. that is the real pain rather than a hit to the gdp for china. haidi: that is it, isn't it? the window for structural reforms was already small and the impact was already going to likeinful, and it feels with the trade war and the slowdown, that is pretty much a story that is over, right? robert: well, it certainly has been kicked into the long grass. it is one of those cases where you make hay where this -- while the sun is shining and the sun is no longer shining. it has been confined to the shelf until better times and most sensible policies can be read implemented with more vigor. spoke earlier about china's propensity to throw money at the problem. they can do that, right? have belt and road, assets, things in place to potentially offset the impact of a trade war. kind of expansion of trade relationships outside the u.s. make up for that at all? i think that is an interesting point. does. long run, it it is easy arithmetic. there is more of the rest of the world than the united states, if you know what i mean. the united states is still a big player globally, but not more than half of it. if you start opening your trade to all that is left, you can have a world with more trade with itself, just not with the united states. one of the reasons a number of people our -- out there are saying who wins and loses in a trade war? more people are swinging around the idea that if there was a relative loser, it might be the united states. haidi: thank you, ing chief asian economist. we want to continue this in a moment but in the meantime, the first word news. with rosalind chin. russia is attacking u.s. sanctions as senseless and unproductive. the talksputin said were helpful but continued action against moscow is not helping restore relations. the trump administration added new sanctions tuesday, adding two companies. >> sanctions are counterproductive and senseless, especially in regard of a country such as russia. american partners will realize the uselessness of this kind of politics and start constructive or -- cooperation. of the british public now thinks the country crash out of the union without a deal. 64% of respondents say the chances of an accord is unlikely with many planning to cut their living cost. he further found that if there is no deal, 70% think prices could rise and a similar number said they would reduce spending. says 4 million people may have had their personal information misused amid the fallout from the cambridge analytic a scandal. is trying totwork tighten security around user details and be more open in its communication. facebook has now removed 400 apps it said are fake or are attempting to influence public opinion. apple and google are facing a growing result over taxes of their app stores. companies are saying they are charging too much to connect consumers to products. netflix are among those who have complained and are trying to bypass the system. satisfaction is set to undermine a digital gold mine for apple and google. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. rishaad: thanks very much. next, we are still with robert, talking about the rate trajectory. the central bank symposium in jackson hole. haidi: later this hour, can the resumption of trade talks boost begone he and other -- boost the yuan? we are told why we shouldn't be expecting too much. this is bloomberg. ♪ rishaad: the latest fed minutes, policymakers are ready to raise interest rates as long as the economy stays on track. investors seeking more clarity from jay powell at the jackson hole symposium. it will also be something where he can take -- get his take on emerging markets. kathleen hays is in wyoming. she gets around, certainly. set the stage a jackson hole, kathleen. kathleen: one thing we learned his confirmation of what markets expect, fed watchers expect, september rate hike is all but a done deal. another rate hike would be appropriate soon when it comes making people conclude the federal reserve is headed that direction unless something really dramatic happens. jay powell, chairman of the federal reserve in that role, the fed chair typically kicks off the official opening of the sessions on friday morning in jackson hole. the kansas city fed in posey him and often uses the speech to send asap -- a policy signal. will his word reinforce what we got from the minutes and make more sense of the neutral rate and whether or not you should stop when you get to neutral. how much will these tensions and emerging markets play into discussions being held where you are? kathleen: well, there are two kinds of discussions and the name -- the theme of the changing market structure and the implications for monetary policy. this is more about things like amazon and retail giants and how they dominate pricing, make it harder for businesses to raid prices -- raise prices, etc. but there is an unofficial set of topics. trade tensions did figure into the minutes that were just released from the august meeting. emerging markets had really picked up when the fed was meeting in august, so maybe jay powell could throw us a bone, give mention of that in his prepared remarks. when it comes to the other topics, it will either come in a q&a from the audience, a lot of central bankers and economists, or conversation interviews we conduct in jackson hole. kathleen, thank you very much for that. kathleen hays our global economics and policy editor in jackson hole. -- don't miss her interview with esther george. back with the asia economist from ing, robert carnell. what do you think of the feds minutes and what do they tell us that his new? -- is new? robert: as usual, not very much new. they will beaid, hiking in september. that we expect it, so did everyone else. the one thing i thought was beggarly interesting was the talk about trying to find the right time, when policy was no longer accommodative. i think the market is already there. i think there will be a point for cause and reflection -- pause and reflection. there will be a point they can slow things down a bit. manus: i will bring a chart up from our gtv library. seeks --ing the course core pce, showing that we are pretty much at neutral now or near neutral. that, ande idea from when you look at financial conditions at the same time, we see financial conditions improving and against this background of rising interest rates, as well. do they really need to go? robert: not really. i mean, 25 here or there, they don't really do anything ever. thethe perspective of market right now, a 25% basis point rate hike when you have everything above 2% would seem like a prudent thing to do. it is what comes after. december march of next year? that is when it would be a good time to sit back and look around and see what is happening. all the political turmoil engulfing president trump at the moment, the potential that the midterms might turn out quite differently, are you looking at the impact on policy? if the entire trump trade unwinds, the impact on treasury markets, what the dollar does and tax cuts, as well? robert: it is certainly worth thinking about. all the turmoil, we are not anticipating any great changes. i think there is some speculation the house of representatives might swing out from under republican control. that could be interesting. that could make trump's political balancing act that bit more difficult. but we are not anticipating much -- massive sea changes in the policy stance. haidi: i want to throw up a chart to talk about the state of -- chaos in australia with two leadership challenges in as many days. , 27all it the lucky country years of uninterrupted growth. seehere a danger we could tougher times ahead because of policy paralysis? it is a danger. australia has had a fantastic longer you go along with that uninterrupted great period, the more people think about when will this end? there are issues worth looking at. the unwinding of the mining issues. that seems to have largely come to an end but this is in economy with a huge amount of household bank find central again impossible to respond in any way. i think it is -- if you look at the futures markets, it looks as if the expectation for very slight tightening from the rba in the months ahead but i wonder if we should start thinking of the other way as a possibility? haidi: on hold for two years now, right? -- robert carnell, covering the gamut of everything going on at the moment. you can catch up with our interviews at tv on the bloomberg. you can watch us live, dive into functions. this is for bloomberg subscribers only. this is bloomberg. ♪ rishaad: let's have a look at the latest business flash headlines. reporting $104 million with underlying profit of $217 million. --has agreed to buy a white the rival quadrant energy for $2.1 billion. it will raise reserves by more than a quarter. santos shares, on an absolute terror in sydney -- tear in sydney. haidi: -- after posting a 16% jump in full year profit. stronger commodities prices offset a rising production costs. --petitors like bhp and real rio in line with estimates. we will hear more in the next hour of bloomberg markets, asia. qantas shares down over 5%. all of this coming as investors get concerned about rising fuel prices. chief executive alan joyce saying he is hedging the risk. outlineve given an based on current pricing with the effect of hedging what our oil price will be next year. it will be 690,000,001st and last year. we were able to buy just the 200 million and improve profitability by 200 million. for the invested of market, we could more than cover the increase in oil and isernational, our hedging ahead of a lot of competitors so they are seeing a bigger fuel increase. u.s. carriers don't hedge at all, and we are seeing the peoplebeing disciplined doing what they can to recover oil prices and that gives us the confidence we could substantially recover on international the oil prices going forward. we also outlined our forward revenue up by 6%, a good indicator of why that confidence is there. >> we do have to talk about what is happening in canberra. said qantas should stay out of things, legislation happening in the capital. with the second challenge, there is the possibility this might happen. dunn you welcome a peter premiership? relationshipsd with all sides of politics and all individuals with the politics. i want to have a good relationship with peter. don't't pick sides, we pick individuals. we are the national carrier and need to continue with those relationships. every prime minister has told me they view qantas as an important part of the economy. it is an important strategic asset. they want to see a successful qantas and i think any future prime minister will be in the same boat. >> we still see government flip-flops when it comes to energy and tax policy. what would that mean for qantas and australian businesses? alan: as i said today, businesses are frustrated at what is happening in canberra. they want reliability and .onfidence despite all of that, we are seeing a strong australian economy. it is performing across the board really well and there are good signs the resource sector is rebounding fairly well, which is important for in economy. for that -- an economy. to that to continue, we need bring certainty to corporate tax policy, to make sure we have a tax system comparative to the rest of the world. we need certainty on energy policy and making sure people can invest and know the policy going forward. ist vacuum in canberra concerning the business community. it is frustrating us and we hope that can be quickly resolved and certainty brought back to monetary policy. haidi: japan heading off to lunchtime break. sophiet's look at what is moving in japan. be fasthe movers would retailing, gaining ground 2.5%. this as the nikkei reporting it plans to double to about 400 stores by 2022. we have triple revenue from the region with plans to open stores in vietnam and ambitions to open in laos and myanmar. japanese tacos are rebounding after the selloff on reports. 1.5%.p about the nikkei 225 looking for a third day of gains. this is bloomberg markets, asia. i'm all about my bed. this mattress is dangerously comfortable. when i get in, i literally say ahh. introducing the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize air flow to keep you cool. hello bed of my dreams. order online we'll build it, box it and ship it to your door for you to enjoy. sleep on it for up to one hundred nights and love it! or you'll get a full refund. returns are free and easy. i love my leesa. today

sophie as well. sophie is looking at signs that could point to more appetite for onshore bonds. >> yields elevated after being driven higher by the deleveraging campaign. we have the yuan being compressed over time. foreign buyers have stayed the course for 17 months straight, even as the spreads have narrowed. after the trump overnight in the yuan, on this chart you can find in the gtv library, jumping the most since 2011. is this a bump in the road, or have we turned the corner? i want to pose this question. in the forward curve, three-month and 12 month, are they still looking cheap, or would this make you rethink your view? >> in terms of forward curve movements yesterday, that is interesting. market forces have driven it up. the past five years, we are near the lows. , there is still fair amount of optionality for hedging costse are at the cheaper end of the spectrum. you could put it can dollars. if you believe valuation is sufficient and seven is a big psychological handle, that would imply valuations are nearing attractive levels. >> this is why foreign investors are still looking to buy in. we have seen a pickup of 34%. >> outstanding has increased over the past few years. that is where we see the most interest in terms of the flow. the fort outstanding is 6% 2%,all, and that number is 3% higher compared to the prior year. , thelk about the offshore onshore hedging costs of the fort curve is negative. thatvestors have access, is potentially attractive for investors to consider. >> where are you finding opportunities? >> we look at it from a total return context come one of the key expertise that we have. in terms ofun lower the strategy, which makes sense that you do have a federal reserve that has continued to hike. the conviction is on the lower beenor us, but china has one of the most interesting duration positions. that is one of the more attractive opportunities. 6.88 94, the reference rate against the dollar. tell me about that. it is in line. reference to yesterday's close to provide a guidance towards the fx rates. it is within our expectation, so on the stable end of the range. have 6.93 intraday. >> yes. if you were hedged on the investors side and look at renminbi year to date, it has declined 5%, similar to europe. most asian currencies are down by the same percentage, so we are seeing regional pressures. renminbi specifically, if you think you have an investment thesis where it does not break seven,think you then it is somee should consider for investment purposes. rishaad: the thing is sweet to have a currency caught in the crosshairs, yuan -- euro weakness coming dollar strength, and that is where it is caught. >> it does sound like you are in a negative perspective or spot. from a total return context, chinese government on's in the first half have returned a positive 2%. in the first half have returned positive 2%. asian indices come up bond indices, are down over 4%. china bond investments don't come across as that negative to me. you get outy can if of the sovereign and hit the corporate space. especially outside of the aaa comfort zone. ,> over all, generally speaking default rates on that segment nominally sound high come that in the context of china gdp is not that high. we tend to focus more on the cbg's and the policy banks. it does not change the way we look at those. from a somatic perspective -- a perspectiveee magic -- we started to see interesting developments about fine-tuning or selective policies that adjust to segments of the economy. plus credits and so on and so forth. what we are seeing is fine-tuning within the overall bond markets. rishaad: what happens looking ahead? we won't get cuts come a we will perhaps,y easing, rrr a bit on the fiscal side. how does that affect credit? >> has liquidity easing or rrr cuts continues, the easier the liquidity function, the better it is for the environment. credit growth and deleveraging don't sit hand-in-hand together. is that factore at play. at the same time, as liquidity easing measures come through -- for example, we have is that see onshore plus credit spreads tighten. most rate markets onshore have come down significant late -- significantly. the overall liquidity measures to provide some degree of easing benefit towards the credit segment as well. that is something we should acknowledge. over time, if you expect additional rrr cuts, it will eventually find its way into the credit markets. rishaad: we have seen this policy where the regulator, the authority, allowed the currency to weaken, depreciation taking place. seven is a psychological level, not technical. given how they have been sanguine, does seven matter? >> it matters for onshore investors psychologically. it is not a hard level from a technical context. that is something we acknowledged. you can see there has been they arel measures considering since we broke the 6.9 level. rishaad: such as? >> the fx forward 20% requirement was introduced on sure. there was the news about the free trade zone adjustments for onshore yesterday. of perspective, there has been increasing adjustments by the policymakers. seven isthe danger is at these levels where we start to see capital flight, and that is the danger. >> generally speaking, you could look at it where there is a significant degree of foreign reserves that china can engage to intervene in the currency. you could say there are risks, but if you look at foreign reserve data, it has not come through in a meaningful fashion. that is not a function we should look to closely at. rishaad: what is the question you are asked the most i clients currently? >> on renminbi, where do you think it goes? that one will come up frequently. as i mentioned, you have the optionality. use that to your advantage. that his critical. you can engage in currency, if you want. the hedging costs are still relatively cheap. hedge, it is not bad to fx exposures for the china bonds. basically the capital gain potential and the carry on the duration side of cbg's and you are stripping the assets, that is how i would think about it from an investor perspective. rishaad: thank you so much. have a look at what is going on. talking at the moment, reserve bank of australia governor talking about 2% to 3% inflation is the right .lace in quotes it does not see an argument for changing targets currently. he expects the voluntary job turnover to increase. that is what we have. remember bloomberg users can interact with the charts using gtv . catch up with key analysis. save charts for future reference. ♪ rishaad: you are back with bloomberg markets. the wealthiest families are $11 billion richer today. boostingales, surging, the fortune of the walton family. they collected $163 billion. to improve products, and also this drive into online orders, which came in higher. bricks and mortar under threat from amazon and others. sayingng earlier losses, soft july sales have picked up the pace this month. higher expenses there. investment in technology and logistics could affect profit for the year. the net loss is searching to the equivalent of $320 billion in the quarter through to the end of june, eight times more than analysts expectations. gloomy forecasts and greater than expected demand for chips used by crypto miners. third quarter should come in at $3.25 billion, $100 million short of the estimate. nvidia had expected increase sales. , the total was $18 million. a look at the upcoming trading day. here are the companies we are looking at. hang seng premarket up 1%. all china ftse futures .8% higher. the yuan's recovery taking place. 6.85. onshore, 6.88, so gradual strengthening. a couple of companies in the mix. swine fever could hurt this company. still 1%. ,encent after a toward week 2.8%. a miss by king -- ♪ xfinity mobile is a new wireless network designed to save you money. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you get xfinity mobile included with your xfinity internet. so you just pay for data -- by the gig or unlimited. saving you hundreds of dollars a year. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. rishaad: it is so dark outside. technology modern these cameras have. 9:29 in hong kong. counting you down to the last trading day of the week. having a look at the action. the yuan making a comeback against its american counterpart, strength after recent weakness, but is it the calm before the storm. ..13 for a yuan -- euro 100 1087 for the yen. the yen.7 for theave relief elsewhere in part of the world. emerging markets still in bear terrain. that is from the peak to where we are. the shanghai open is upon us. the screen after a four-day decline for large caps, but still set to lose 3.5% on a weekly basis. some prospects of talks on trade talks at the end of the month between the u.s. and china. we are ignoring the dismal weather, the hang seng rising 1.3% as tencent set to snap a five day slump, gaining 3%, but one broker cutting their view on , whichck to add from buy lowered its price target. that brings the tally for the stock to 49 -- an good doctor gaining ground. we will be waiting on the impact of the jd.com loss. and one others company. in the currency space, the offshore yuan at that level, strengthening and adding to that overnight trump. this after the pboc set a lower fixing. rishaad: thank you for that. sophien. let's talk about the weakness for the yuan with our guest from blackrock, head of china equities. those this affect coverage are looking at equities in terms of other asset classes? >> the currency is an important driver in terms of performance. people have weak memories from the 2016 episode. when there is a market move within a short time for the see cny, people have more bearish views. in this case, we are in a different situation because i don't think the economy is that bad. a lot of the movement is about risk premium and not necessarily about where fundamentals could go if the worst case scenarios play out. rishaad: nobody knows what the worst-case scenario is. just seeing the implications here. i got this chart from our gtv library, ford's pointing higher because we have tighter liquidity. they are trying to open these gates of liquidity. i suppose they will have more rrr cuts looking ahead. there seems to be a short squeeze taking place, perhaps. that could settle things dow

sophie barton never existed in a world without harry potter, with themed birthday parties, to those horn-rimmed glasses. sophie and her parents are what you would call potter-heads. >> we're huffing puffing. >> and to celebrate sophie's 11th birthday, the same age as harry when he got the infamous letter, inviting him to hogwarts, the whole world came to the world of harry potter at university of studios orlando, the parent company of nbc universal. >> i got my dream to get my letter from hog warts. >> in the last two decades fans around the world felt the same magic. over 500 million books sold in 80 languages, eight blockbuster movies, theme parks and most recently a broadway show. the franchise now worth a whopping $25 billion. >> i read one through four probably like 15 times. >> i remember sitting on my bedroom floor when my mom read me the first book. to think that was 20 years ago and now i'm here. >> kids putting down their phones and losing themselves in a world their parents love, too. >> it's really special family moment to share those kind of things with your kids. >>> isn't that what every parent hopes for? seeing your children absorbed in a great book? we appreciate you spending part of your evening wit

sophie. what is atmosphere like? sophie: we certainly have some excitement here. we had seen a cooling off of ipo markets, and the debut of a pharmaceutical company here today is bringing a lot of excitement. we did see the share price jump, and on the trading floor, you are hearing excitement. .ishaad: indeed this is a historic moment, the rules being changed, to other companies which normally -- to debut here in hong kong. , crystal.ng at this what do you make of this? kristol: it like you said, it is very important for the hong kong stock exchange, because it is the first company to be successfully listed in hong kong. before we came to the studio, a newctually announced drug application with the china fda, for hepatitis. these kind of companies are extremely sensitive, it is new to everyone, including importers, the investors and the exchange. for this to trade while, it is extremely -- for this to trade well, it is extremely important for hong kong. rishaad: sf was are going to find out how many shares were actually on the table, and if it was oversubscribed there, sophieos tend to oversubscribed, sometimes by as much as over 100%. sophie: that hasn't been the case, but the majority of offerings have failed to generate enough retail demand. pharmaceutical for example, we saw 90%. --o the point about china's crystal, i do want to ask you, with this backdrop, what does it mean for the outlook for the hong kong ipo market? i attempted to draw in more listings and more applicants? ascletis pharma is definitely the first case for biotech companies, and we are seeing a very healthy pipeline. in fact, they are already about five or six companies that have filed, sometime within the next six to eight months. but in terms of china rising, it can come literally any moment. we don't have any information on , noretail performance yet do we have information on institutional subscription. the management is in the u.s. with the bankers right now, trying to price this, which could be bigger than alibaba. rishaad: we just had another reporter saying that the ipos retai

business conducts their daily comma i want to talk more about this now with sophie szymanski our correspondent on wall street now sophie many people say that the success of apple is down to the fact that it can in force high prices basically we're addicted to all phones so how long can the company keep that up. well the i phone or really any apple product has always been more than just a laptop or a phone it is still after that day a status symbol and design is playing big role as well f one has had the reputation of the number one visionary in the industry with the steve jobs even more about in the past fierce competitors have caught up and offered just as advanced a product for less money and in some quarters the numbers have shown signs of slowing demand for i phones maybe not every consecutive quarter but cook is getting the company ready by focusing on services and turned them into a more important source of income but then again according to the youngest earnings consumers are just the swelling as ever to purchase high priced products so maybe the psychology is still working for apple here and maybe let me quote

of that and other claims last time check in with our financial correspondent sophie szymanski she's on wall street for us sophie seems like investors have lost faith in a long lost course the latest. all of these have been to tough weeks the plan was to make everything is their protests to take away the pressure of being a publicly listed company judged by quarterly earnings short term profits numbers improvements in the performance as an automaker while for a month it is more about the future and about changing it it's about the vision the expensive version and so it's not easy to find investors who stick with you while your company is still not making any profit that also now you want to all private for people start to believe that he doesn't have the money to do that the saudi arabian front seems to be looking into a competitor as we just heard and then investors are also on top of that concern for marc harrold he tweeted something late at night this weekend and the board seems to be thinking of a number two to help him out and then huffington post founder area and i have thing tweeted he should get some sle

sophie was sent to pennsylvania, angelica went to california while the government processed her asylum claim. sophie's mom was in the u.s. legally with sophie'sicials said they could not return sophie to her even though she had the paper work proving guardianship. maria villarreal spoke to the pair in mexico before they crossed the border. angelica told her they were escaping from drug cartel violence. ths of m tru are officially united states citizens and they used a program that's repeatedly come under criticism from president trump. victor and amelia from slovenia. took the oath in new york city yesterday. a lawyer said mrs. trump sponsored their green cards to obtain residency and that would mean they used family based immigration during the legal immigration process. >> the president refers to that as chain migration and has repeatedly railed against it. >> we do not want chain migration. we have to get rid of chain migration. >> we are going to end chain migration. >> chain migration is a total disaster and provides a gateway for terrorism. >> we have to do something with chain migration! >> how about chain migration? how about that? so

easy road but what does the future hold for the premiere of cryptocurrency sophie and co digs into the. oh i'm just so sophie shevardnadze that digital currency bitcoin once a toy for computer nerds is now storing and prized triggering a new gold rush is it just another bubble or the glimpse of their radically new financial future i ask rick. because in cash and founder of the swedish pirate party. the new bitcoin craze is making people rush into cryptocurrency investment with the digital money skyrocketing value putting it into the spotlight but aside from causing a new gold rush bitcoin is promising to completely transform the way we use money what will peer to peer money exchange do to the global banking system what role will the world's governments be left with when bitcoin goes global and can overcome its unstable nature to bring about a radical financial revolution. yeah welcome to the show it's really great to have you on our program now you predicted bitcoins thousand fold increase back in two thousand and eleven and indeed from one dollar in february twentieth i would hit a record high of almost sev

sophie kamaruddin. looks like a pretty quiet session, but you have been focusing on japanese stocks, the biggest exodus since 1987. sophie: the biggest annual exodus since then. at the start of 2018, the nikkei but withng for 24,000, foreign outflows of $35 billion year-to-date, momentum has been derailed. you can visualize that on this chart. as we have observed, overseas investors typically take cues from yen performance, but this year strategists cite everything from trade to anxiety over next year's sales tax increase. strong corporate earnings in the u.s. has kept investors there homebound, and sean darby writes political risk and the boj slowing etf purchases. at goldman sachs, mixed economic data highlighted, and concerns about sustainability of corporate profit growth, but they predict foreign interest will resume by year-end, citing abe will likely claim victory at the election in september. also citing prospects for earnings, and increased buybacks and dividends. onhave seen attention japanese stocks at the end of the year, but she points to a light at the end of the tunnel by the end of 2018. yvonne: thank you. on the japanese markets, what the setup will look like in asia today. of course, we have been focusing on the tech sector. president trump has a stark message for google and other social media companies, accusing them of liberal bias and warning them to be "very careful." >> google and twitter and facebook, they are really treading on very troubled territory, and they have to be careful. it is not fair to large portions of the population. yvonne: joining us now is our bloomberg tech editor. the president saying this is a serious situation. are his criticisms fair? >> it is certainly true these big internet companies have to be careful, maybe not for the reason the president was talking about today. in general, these internet platforms are under a lot more scrutiny compared to five years ago, for instance. they have a lot more reach now, a lot more influence on what goes on in the real world, not just online. so from that perspective, they do have to be very careful. yvonne: we have heard the president bring up this issue time and time again. how serious is he in really implementing some kind of change, or is this just an isolated issue? alistair it has certainly been a common theme that president trump has used over the last two years, really. the general idea's that these internet companies are, according to him, too powerful and they have a left-leaning slant when they are picking what content to show people, what content to rank. specifically today with the google criticism, he was saying that the google news service publishes or distributes news stories from what he called liberal publications. generally speaking, what has happened recently with google, they were criticized for spreading some actual fake news, foreign manipulation, and they did crack down about a year ago, started focusing on news sources that were more traditional, more established, than some of the blogs and online opinion sites. that is one page that has maybe -- change that has maybe make the more open to this criticism. ramy: larry kudlow earlier this morning in washington did say the white house would look into this. but really, can the government do anything about this? alistair: not really. i mean, in the u.s., there are pretty strong first amendment rules that protect free speech and protect what publishers can say, and really what internet companies can do. one particular thing is the internet sector in the u.s. has a lot of protections against what users can post on their service. if a user posts a video on youtube, technically google can't be held liable for that content, and that applies to news results on the internet, and on the facebook feed as well. some of those protections have been whittled away at the edges this year, but generally speaking, especially for things like decisions on what news stories to show on a service, those things are very well protected. ramy: alistair barr, our bloomberg tech editor, coming to us from san francisco. thank you. staying in tech, but going to the digital streaming world. amazon is said to be in discussion with at least two major hollywood studios. about now cofinancing movies. we are told they held sony asory talks with ton well as paramount pictures as they look to offer more films on its streaming service. our reporter lucas shaw has more from los angeles. why is amazon interested in the rights to these movies? what do we know about the conversation so far? more goodzon wants programming to put in front of users. sounds simple, but when you think about the big streaming services you think of the original tv series they come up with, but movies have been very important, especially for retaining customers they already have. people show up to netflix to watch house of cards, but basic around for the movies they licensed from disney. amazon doesn't have some of behind and, first run -- some of the high-end, first run movies, so they are trying to bring them on, either by bringing on movies not shot yet or getting movies that have been shot that the studio doesn't want to release. ramy: the libraries on netflix and amazon, i have both but i tend to go to netflix. it seems there's more options there. but from your perspective, your research, is that true? lucas: i would say hbo has the best, netflix is next, amazon is kind of a murky spot, because you can rent anything on amazon, which is a great feature that i love. but in terms of the movies that come included in your amazon's of scripture and, that are free -- amazon subscription, that are free in instant video, it's not a great selection, which is why they want to do this. they haven't had as many output deals with studios as netflix and other streaming services. ramy: and given that disney has said it will pull its movies from netflix, why would studios then willingly sell their movies to amazon? lucas: partially because they need money. even though disney has said it will pull movies from netflix, you have seen a studio like paramount celso movies to netflix that they -- so some movies to netflix that they don't think they can make money on in theaters. netflix has made no secret about its desire to basically swallow the entertainment business. amazon has been a little more amenable. whereas netflix pushes movies into the streaming service at the same time they are in theaters, amazon is willing to hold them back, let them have a theatrical run, something theater owners really want. so there's a belief, although amazon is scary, one of the most powerful companies in the world, it is more of a partner perhaps then netflix. ramy: bloomberg's lucas shaw in los angeles. with amazon possibly getting more content for its streaming service. thank you very much. coming up, more on trade, and the idea china is playing watch and wait. former ambassador max baucus shares his views with us next. this is bloomberg. >> by far the largest single source of our trade deficit with mexico, autos. so we think that will help mexico get more business back from southeast asia, and we hope it will help the u.s. to do the same. >> this is a complicated agreement. there's lots of things in here that are all-new. i would think canada would be very much on board with stronger intellectual property, stronger protections, modernizing agreements, so i'm hopeful the open issues with canada can be resolved quickly. >> canada should look at it on the economic basis. if we tear up our agreement with our northern and southern neighbors, we will take a hit. 11 million jobs, some say 14 million, hinge on this agreement. >> i think the president thinks the united states has the leverage, because he's willing to do a deal with mexico. however, at the end of the day, congress has to approve this deal, and if congress is putting down markers that canada needs to be in the deal for congress to vote yes, then perhaps canada has more leverage than they think they do this morning. ramy: all right. whiteard from some of the house and former trade officials, on the ongoing trade talks between the u.s., mexico and canada, all here on bloomberg television. taking a look at where those voices are, a couple of them are clearly skeptical on anything really happening here. we also saw what was happening, in terms of at least the mexican peso, some investors not really boy and, i suppose -- buoyant, i suppose, because we saw the peso fell 2.5% today in u.s. trade, with regards to this possibly getting through congress, especially with the midterms coming up in about 69 days. yvonne: wendy cutler said it pretty perfectly. congress wants a trilateral deal, so that could pressure president trump to make some concessions here and allow canada to rejoin the talks and rejoin the deal. let's take a look at the currencies. you mentioned, the moves we saw when it came to the mexican peso, really failing to hold those gains we did see the day before. it could be a good sign or a bad sign, you could say, for the canadian loonie. we have seen this pick up in the canadian loonie of i think 6% since the low in june, so certainly that is going to be a big focus here. news pricedhe good into the currencies already, and can the canadian loonie hold onto those gains after jumping to the highest in two months, $1.29 against the dollar now. that will be a focus, what it means if the u.s. makes a deal with the north american hemisphere, does that mean hopes of a u.s.-china deal also fade? ramy: there has been breaking news lines, of course, from the foreign minister, that at least the will is there. let's just say, from all sides, just coming out of the ustr's office, saying it is constructive, optimistic looking at what may happen in terms of future meetings later this week with mr. lighthizer. let's continue the conversation. the trump administration is putting trade talks with china on the back burner, at least for a deal as they focus on with mexico and canada. national economic council director larry kudlow has some advice for beijing. just say yes occasionally. >> with china and trade, my advice is, just say yes once in a while. you know what we are asking. the list has been put down on paper. we have had a number of meetings. beijing, washington, back to beijing. why not say yes? --my: our next guest says s has seen the issue both ways, as a senator and recently as u u.s. investor to china. max baucus joins us from bozeman, montana. you heard larry kudlow saying to china, please just say yes. how optimistic, or pessimistic, are you that anything could happen through the midterms, let alone through the end of the year or beyond? max: we are in a difficult spot. first, president trump is focusing on mexico, and nafta. frankly, i don't think there will be a deal between mexico and the united states without canada, any agreement between the u.s. and mexico has to be approved by the congress, and i don't think congress will approve unless canada is on board. economic interests, farmers, ranchers, businessmen in america, canada, mexico want a trilateral agreement. that would be a bit different from what we had in the past, but by and large the same. .eantime, china is waiting it is very clear china has played a long game, being very careful, not making any rash decisions. they are think going to wait for the midterms, in part because they don't know what president trump once --wants, because he changes his mind frequently. after that, there's a disconnect between him and the administration. he might say they reached something that his administration is saying another approach. and i don't think this administration has a good, long-term plan. when i talk to people who work with the administration, they ask, what his plan b, they don't get a response. bey say, there will be a plan if the tariffs don't work. ramy: with the u.s.-mexico trade breakthrough, some analysts say that this will embolden the hawk s who are apparently on the ascendancy in the white house. to what degree do you think this, these hardball tactics really a quite -- equate to winning for the white house, embolden them to push harder against beijing? max: i am a little skeptical about that. president trump likes bilateral agreements, not multilateral. he thinks american power can get a better deal for america with a bilateral. that's why he did that with mexico, and he will now be i think forced to work with canada. when he approaches china on a bilateral basis, that tends not to work either, because china will work with other countries the on the united states, find markets elsewhere. they will play the united states. i think trump is mistaken when he thinks multilaterals are a bad idea. in my experience, they are good. we had tpp all lined up to pass, the transpacific partnership, a huge mistake for president trump to pull from that. it means the u.s. is less engaged in asia, it will be more difficult to trade, not only with southeast asia but ultimately with china. yvonne: i wanted to cite something marion lovely mentioned, earlier on bloomberg television from the peterson institute. she said the issues not just about china, but also the national security case for auto tariffs, which she thinks is still in place even after the u.s.-mexico deal. take a listen. >> we see the option to just say, we want to do that, we will pay a 2.5% tariff. if that is all facing you if you don't conform to these rules, they really don't have any teeth, so what this deal is signaling is that this administration is going to go forward with a 25% tariff on autos. yvonne: elaborating more, she's arguing that mexico's jumping through these hoops because they want to avoid a large terrace. do you think it's likely that we will see president trump actually slap these tariffs on autos? max: i don't think so. i think he's going to huff and puff and not followthrough. there's a general trend with donald trump. hit someone pretty hard, big body blow, strong statement, and after a while back off. look at the wall, mexico for example. he's finally backed off on that. nafta, the degree to which he criticized nafta, nothing close to the complaints he had when he was campaigning not long ago. i don't think there will be a 25% tariff. yvonne: when it comes to china, do we need a president trump and president xi summit to really hammer out this deal? max: the singapore summit with kim jong-un, i think, is instructive. that didn't work for a well, because -- work very well, because there was no prior groundwork laid. singaporequence, the summit was just a handshake for the world media. president xi and president trump, if they were to meet, i worry there would be the same unless there was a lot of groundwork laid. it has to be done not with public tweets, more with hard work, negotiators on both sides being private about it, working together, trying to find a way to deal with the basic u.s. concern, technology transfer, work onaps, ip theft, that. i think china will want to give on those issues a little bit, not very much. china 2025 is not far away. but on the margins, xi jinping wil want to keep a strong trade relationship with the united states. that helps him keep the economy stable. in china, they'll give a little to come out with an agreement in the end were both sides come out ok. u.s.e: max baucus, former and bassett or to china and senate finance committee chairman. you can always find in-depth analysis on the day newsmakers on bloomberg radio. bloomberghe app on radio plus or access it on bloombergradio.com/. . this is bloomberg. ♪ yvonne: we are counting down to the market open in japan, south korea and australia with about three minutes to go. we expect a lackluster session, certainly the summer lull days. we have seen u.s. markets eking out gains, records when it comes to the s&p and nasdaq, but pretty modest at best. nikkei futures up 0.1%, flat for korea. asx 200 futures up 0.1%. we will discuss the trade war's impact on currencies with a guest from the commonwealth bank of australia. what does it mean for the mexican peso after failing to hold onto the gains after reaching the trade deal? is that a signal to canadian traders on where to go when it comes to the canadian loonie? and we preview autos. short interest given china opening the auto market, so a lot of questions to ask. that market coming up -- market open coming up next. this is bloomberg. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. yvonne: 8:00 a.m. in hong kong, live from bloomberg asian headquarters. i am yvonne man. welcome to "daybreak asia." the top story, asia faces a quiet stock after u.s. stocks founder much of the session. crosses the s&p 500 2900 for the first time. the canadian jumped on optimism of a trade deal. ottawa says progress has been made in initial negotiations. >ramy: i am ramy inocencio in nw york, where it's just after 8:00 p.m. on tuesday. emerging-market currencies rise for a third day in a row. we will check the outlook. hitser hits the -- toyota the gas on car production in china. it has fallen behind major rivals like volkswagen and g.m. ♪ yvonne: ramy, it certainly feels like summer. we can see u.s. markets geeking gains, but nott a lot of action when it comes to the trade front. we saw the u.s.-mexico trade deal, but a lot still has to go on when it comes to canada rejoining the trade deal, as well as what happens with china. ramy: it seems from what the foreign minister out of canada has been saying is that the will, they have those, but whether they have the way, whether the policymakers have the time to get this all done possibly before midterms, possibly sometime in 2019, appears to be a big question. if the house flips in the united states congress that adds a different complexity to the poetical calculus of this going through -- political calculus of this going through. yvonne: before that, check on what the market is doing now, with sophien. pretty slow going. sophie: we had the lackadaisical run in u.s. stocks. looking for direction today, we might not have much in regional data. japanese consumer confidence for august, vietnam inflation and trade figures. when you take a look at the start of the wednesday session, you have gains for regional major markets. nikkei 225 extending gains. kospi on a ninth straight consecutive gain. asx 200 adding 0.1%, which could be a fourth daily advance. when it comes to earnings, samsonite and citic among those reporting. we will wait for reaction to china's banking giant later. when it comes to trade optimism, we are keeping an eye on the mexican peso, flirting with the 19 handle after reaching that overnight. the headlines have come and gone on that front. e.m. space, concerns argentina might slide into a second recession in three years, and moody's downgrading several turkish banks. yuan flirting with 6.80 as u.s. officials suggest more tariffs might be imposed on chinese exports. w

sophie on wall street for us tonight. could this spark an oil crisis? sophie: it depends on how serious iran is on blocking the street. they have threatened to close it and they have done it previously. the straight is a crucial conduit or global energies across and the narrow passage in the persian gulf facilitates the movement of 30 to 35% of maritime trade. the conflict around ran has -- around airan. president trump and rouhani are choosing very bold decisions. it could trigger an escalation. the exercise is in response to rhetoric from the u.s. so some say this is rouhani targeting the united states with the newly imposed sanctions and tariffs. >> they have made the threat before. it is a strong bargaining chip that they do have. what is the likelihood they will use it? sophieat is hard to say from here and at the moment, it certainly is a bold threat. as we mentioned before, they have only talked the talk so far. it was more about psychology how it seems spirit it is a familiar refrain. the tough rhetoric if more than likely to be followed up by more mild retaliation attempts, maybe such as harassment in the straight. olli rehn has made the threat before, it has never followed through since shutting down the straight would be a drastic move. if investors believe it poses a real danger, the oil price would be rising. brent: good points there. thank you. to an interesting city now i visited recently where the second world war won't the proper long time. >> the japanese city of hiroshima is remembering the victims of the world first atomic him attack 73 years ago today. people gathered in the hiroshima peace memorial too pray, in putting - -- including prime minister shinzo abe. hiroshima day is met locally with calls for peace and nuclear disarmament. on thi

sophie is taking a look at the markets. sophie: this, despite the gloomy weather we are seeing. asian stocks mostly higher, up by about 1.2%. tech shares and energy among the biggest gainers. in china be large gauge extending for a third day. petrochina among the biggest boost. we are seeing fletcher's for the yuan. onshore -- fluctuations for the yuan. it does not seem to be derailing positive sentiment for emerging currencies. also want to highlight the aussie dollar, just above 73 u.s. cents. attempts to unify. assets getting grounds. chaebol reform efforts are getting a shot in the arm. korean yuan trading around 1115 against the dollar. the yield falling by nearly 10 basis points. when it comes to the commodities complex, we are seeing a mixed mood for metal. steel falling in shanghai while aluminum and copper are gaining ground. oil under pressure. about $68 a barrel. we saw oil see his first -- looks like some sentiment is coming off this monday. haidi: thank you so much for that. let's get more on the yuan. the pboc coming in with a countercyclical -- another strong session for offshore yuan after the big surge we saw. everyone is wondering if this is sustainable? >> we had originally been hearing conversations about seeing where the yuan was going to go, how far the pboc was going to allow the yuan to go. almost 6.9. seems that is about as far as the pboc was a -- willing to allow it to go. the moves they made on friday certainly had an impact. a doublertainly seeing impact with the jackson hole commentary from the fed on friday as well. also driving down the dollar, which is also supported for the yuan. is offense is investors were looking for a little bit of stability in the yuan. so that is also helping with markets today. haidi: what about other interesting currency moves? watching the turkish is that market gets back online. we'rethe turkish lira, coming back from a holiday break in turkey, so we will be watching with the turkish markets will be doing. mexicomentioned earlier, and the u.s. are expected to have some announcement on a nafta deal today. we are also seeing a bit of a pickup in the peso. we are also seeing movements and other currencies as well, yeah. haidi: leslie to sentiment was very much dominated by politics. moreweek we are looking at of a macro set of indicators in central banks as well. eric: there is a lot to look forward to. u.s. gdp figures are coming in as well as u.s. jobless figures. on friday with -- we will get a bit of a data dump. we are expecting japanese jobs and chinese pmi. it is a packed docket for investors this week. haidi: back to the bread-and-butter. thank you so much for that, eric. let's get you the first word news with rosalind chin in hong kong. rosalind: all right. i will bring you the first word news. the u.s. and mexico are said to be close to resolving their differences on nafta. bloomberg is told his sides have achieved significant breakthroughs in the last few days on auto and energy, paving the way for the opening of the door for canada to rejoin talks. president trump tweeted saturday there could be a big agreement with mexico soon. arabia'sxpects saudi budget deficit to fall below 5% gdp this year. that will be the first time in will have done so since oil crash battered their finances. a forecasted deficit to narrowed on4.6% gdp in 1.7% by 2019 better collection of a new value-added tax. an expiry of handouts and higher spending. italy says it is prepared to veto the blocks budget over illegal migrants. minister saidme italy will look at all measures concerning the single market finances and will pose -- oppose anything not convenient. they are increasingly year traded other eu states refuse to accept the migrants that reach italy by sea. shinzo abe has lost a bid for a historic third term as party leader, hoping to put scandal behind him and become japan's longest-serving prime minister. the announcement kicks off what is expected to be an easy campaign. a recent poll shows he has the backing of 77% of lawmakers. the party votes on september 20. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still coming up, more trade loom as u.s. china talks go nowhere. we will chart the possible outcome. next, a boost for the world' top refiners. this is bloomberg. ♪ ♪ haidi: this is bloomberg markets: asia. chinese oil stocks are gaining ground after record first-half earnings. sophieay of the land. sophie: we had chinese oil stocks rising. gain since may 31. petrochina due to report results on august 30. profits expected to look healthy. and dissipating may report and 82% quarterly jump in profits for the second quarter. also expecting and may surprise with special dividends in the first half. c have goodpe prospects with shareholders. much forank you so that. a senior analyst is joining us. pretty impressive set of results. what were the highlights for you? >> the refining. we saw a record margins. so, despite the increase in oil sinopecwhat we saw was able to continue to deliver very strong margins. helped by strong demand we are seeing in china. chemical demand was also strong. sinopec really benefiting from strong underlying demand in china. haidi: in terms of the upstream business, is this a turning point? neil: i think we're getting close. there is still, a slight loss. it is also a big improvement on where we were a year ago. we are still seeing oil product

sophie and goes through it. all welcome to sophie and sophie shevardnadze digital cameras a big korean once a toy for computer nerds is now storing and prized triggering a new gold rush is it just another bubble or the glimpse of their radically new financial future i ask rick. because in cash and founder of the swedish pirate party. the new big cool increase is making people rush into cryptocurrency investment with the digital money skyrocketing value putting it into the spotlight but aside from causing a new gold rush between is promising to completely transform the way we use money what will peer to peer money exchange do to the global banking system what role will the world's governments be left with when bitcoin goes global and can overcome its unstable nature to bring about a radical financial revolution. yeah welcome to the show it's really great to have you on our program now you predicted bitcoins thousand fold increase back in two thousand and eleven and indeed from one dollar in february twenty level hit a record high while most seven thousand eight hundred eighty dollars last week that had a plunge and