we have on the phone again, stephen engle. was speculation, no fact. at are the ramifications for protest this weekend? stefan: -- stephen: it is unprecedented, and carrie lam is evoking emergency powers to delay the legislative council elections, which were due to be held on september 6. there was speculation that this was due to the delay, the postponement would be due to the fact that the pro-democracy candidates have a lot of wind in their sales and they could perhaps take many of the seats in the legislative council elections. so there is speculation on the pro-democracy camp that this was done to counter that. ment is, the govern saying that there is a third wave of virus infections, and that is why they are delaying this. it could be up to a year, and that would deliver a severe blow to the pro-democracy camp. francine: will people buy that, that this is purely on health reasons? stephen: does it matter whether they buy it or not is the question. this is coming down from the central government in beijing. the latest headline says carrie lam says

stephen engle joins us now.we are seeing right now is young people that want to run for office are being told they cannot. that is not a democracy, is it? stephen: know, and in the basic law, china did agree that the ultimate aim for hong kong is universal suffrage, however, they have not achieved that. elections, council 30 seats are directly elected. four years ago, about six pro-democracy candidates were disqualified because of their various platforms that countered what beijing said was the basic law or that the right of china's sovereignty over hong kong. now we are getting news last night that 12 pro-democracy candidates, possibly even more, have been disqualified. that really is a blow to the pro-democracy camp here come the they're they were -- hoping to ride the wave of the pro-democracy demonstrations last year. the local newspaper here is will be ane announcement of a postponement for the election scheduled next month. tom: we will have that through the morning. it is not hong kong on the edge two, it

stephen engle, you've been wonderful to be with us.say enough that the national and global impact the edge one had. this was a one hour program about three months ago. it was so popular we decided to do it again. it is hong kong on edge two. you can see it through the weekend at 7:00 tonight. i would make note of the repeat through the weekend across all of bloomberg television and our digital platforms. this is the decades of stephen engle reporting on asia. what i want to do is wrap up the week with futures up. that barely describes a 1% move on the nasdaq we are seeing right now. the real story is yields lower, then a pause later in the morning, and we have now reaffirmed the lower two year guilt. .1093. that bears the closest of scrutiny into the weekend. there has been curve flattening until moments ago. the dollar is weaker, no question. it ebbs and flows off of 11843 euro and again 105.14. lisa, what you observe? lisa: the bifurcation between stocks and bonds. the bond yields at record lows. then you have stocks edging higher. t

francine: thank you so much, stephen engle come our chief north asia correspondent. ve plenty more from stephen throughout the day. "bloomberg surveillance" continues in the next hour. this is bloomberg. ♪ francine: high-tech -- amazon, apple, facebook, and alphabet top expectations as people increasingly rely on their products during lockdown. record slump -- france and germany suffer their sharpest gdp contractions on record. we're expecting more dismal european data later this in a couple of seconds. and bnp paribas reports a blowout performance in fixed-income trading, leading all but one of the large wall street banks. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. shrinking 12.1% in the second quarter matches the estimates that we have been speaking to. italy was ugly but better than expected, so it does seem that when you look at the overall picture, inflation, that inflation rate coming in at 0.4 percent, that is higher, a touch higher than expected. tom: this is economic data, and we need to do w

bloomberg stephen engle. m says she ordered september's slate of counsel alleges that election postponed for one year in order to ensure public safety amid a third wave of coronavirus outbreak. we had 121 new cases friday on top of a record search on thursday. democracytion pro canada not buying the reasoning. they say the delay is intended to rob pro-democracy candidates of momentum after the implementation of the highly controversial national security law one month ago. the postponement follows the disqualification of 12 pro-democracy candidates and the arrests as well the day before that of some for people who are accused by hong kong authorities of promoting self-determination for hong kong on the internet. it caps on a week of new redlines being set by the hong kong government on the level of dissent that they will allow. stephen engle, bloomberg news. emily: be sure to catch bloomberg television's one hour television hong kong on edge 2, 7 p.m. in new york and airing throughout the weekend. i want to tel

haslinda: chief north asian correspondent stephen engle in hong kong.directly in the fx interbank market. the idea reference rate is set at 14 341. the bank of indonesia said the currency is undervalued. that is it from "bloomberg markets: asia." "bloomberg debris: middle east -- "bloomberg debris: middle east" is next. this is bloomberg. ♪ >> the following is a paid presentation brought to you by rare collectibles tv. >> in 1792, as a young country in its formative stages, the united states of america needed to assert its status as a new global power to the countries around the world. as a way to firmly declare to the world that the united states of america was now an independent country that would continue to propel freedom, the first president of the united states, george washington signed the coinage act of 1792.

we are joined by bloomberg's chief north asia correspondent stephen engle who has stayed up until midnightong kong time to join us. we are so grateful for your time. the level of exhaustion and frustration on the ground level in hong kong? stephen: among the pro-democracy camp, they are frustrated. keep in mind, a year ago carrie lam was on her back feels with millions taking to the street and demonstrating for more rights and the scrapping of the extradition bill. that led to overwhelming victory for the pro-democracy camp in district council elections last november. what a difference a year makes and what a difference the backing of beijing has given carrie lam. a year later, carrie lam is quite forceful and today postponing those legislative council elections, which the pro-democracy camp had high hopes for having a similar victory like they had in district council elections last november. that is all for naught because they will be postponed within a year and it comes within 24 hours of 12 legislative council candidates pro-democracy -- pro-democracy candidates disqualified for various

stephen engle has delved deeper into these issues. >> i honestly feel that at the end of the day, atare like an airplane with a lot of turbulence. everybody is holding on waiting to land. in most cases, the plane lands safely. >> or waiting for it to crash. >> or waiting for it to crash but i honestly feel that this airplane is not going to crash because china needs hong kong, an open hong kong. they just want to keep it safe. they want to make it stronger. >> beijing surely does not want a stronger pro-democracy camp. pan-democrat lawmakers had been accused of using disruptive and filibustering tactics. to the cards, similar ones the u.s. put out an iraq during the gulf war, have been circulating here. ofthere will be a lot scaring tactics. many people are being scared away. they want to defeat you without using any force or even without waging any wa that is the wayr. -- war. that is the way the chinese played a game. >> if i say i will never be arrested, were you born yesterday? you lived under communist rule. how dare you say that. i've never said that, even in 1997. but neither

coming up, thunderstruck by response of wonderful effort by our team in hong kong to help stephen englethe edge. we are doing it again. on the crisis on the hong kong. >> i feel at the end of the day, we are on an airplane with turbulence. everyone is holding on, waiting for the plane to land. in most cases, the plane lands safely. >> for it to crash. >> i honestly feel this is not going to crash. china needs hong kong. they need an open hong kong. they just want to keep it safe. they want to make it stronger. does not wanting a stronger pro-democracy camp. before the national security law, lawmakers were accused of using filibustering tactics. cards have circulated, singling out the faces of democracy advocates, including the human rights lawyer, the ace of hearts, albert ho. >> many people are being scared away. they want to defeat you without war. force or waging that is the way the chinese lay the game. >> if i sit here and say, no, i will never be arrested -- were you born yesterday? you live under communist rule. how dare you say anything? i have never said that. even in 1997. nei

stephen engle delves deep into all the issues around the national security law.the second part of our series, hong kong on edge. here is a preview. >> i honestly feel that at the end of the day, at the moment, we are on an airplane with a lot of turbulence. everyone is waiting for the plane to land. in most places, the plane lands safely. this is noteel that going to crash because china needs hong kong. they need an open hong kong. that is not going to change the mode. they just want to keep it safe, make it stronger. >> beijing surely does not want a summer pro-democracy camp. before the passage of the national security law, democrat lawmakers have been accused of using disruptive and filibustering tactics. playing cards, similar to those the u.s. government but out in iraq during the second gulf war, have circulated here, singling out the faces of pro-democracy advocates, including the human rights lawyer, albert. the ace of hearts. >> there will be a lot of scaring tactics. many people are being scared away. withoutt to defeat you using any force or even witho

you could hear the emotion the other day of our anna edwards and stephen engle in conversation with lord patton. this has been a surprise, moving from what we all witnessed 20 something years ago to now this abrupt change in hong kong. it is a change of beijing, indeed of taiwan, indeed of washington. but nowhere more than on the streets of hong kong. from central square in mandarin down to the east, sophie kamaruddin is on the street. what do the streets look like in this initial hours of protest under new law? sophie: over the course of the day, we saw more and more people gather seemingly without any real direction as police were out in force to dispel crowds from assembling, raising a new purple flag, warning people moving against the new security law targeting secession or subversion -- subversive activities. the neighborhoods we have walked through, we have seen people milling about trying to find each other, really, to unite. [indiscernible] some minorbeen altercations between police and individuals. we have seen the deployment of water cannon, tear gas, water bullets -- rubber bu

our thanks to stephen engle for that.stlearned can does province is laying out plans to reopen schools. mandatory masks for teachers and students. schools that feel they can, can be open five days a week. it's a less clear picture across the u.s., but the american federation of teachers has approved what they are calling safety strikes by its members. randi weingarten is president of the american federation of teachers. the place i want to start is what you want to see. when we talk about this issue of safety, what do teachers need to see to feel safe? randi: i wish we had a committee in government. day, thed of the canadian government, german government, danish government, , all triedovernment to, first and foremost, tackle starteds, and then doing the safety guardrail that are needed in terms of reopening schools. even though there is not a one-size-fits-all in the united states or any of these places, what we need is to tackle the virus so that there is very little community spread. you need to have a system of testing

stephen engle delves deep into these issues in our series.end of the day, at the moment we are on an airplane with a lot of turbulence. everyone is holding on, waiting for the plane to land. in most cases, it lands safely. >> or waiting for it to crash. >> i feel that this is not going to crash. china needs hong kong. they need an open hong kong. they will not -- they want to make it stronger. >> beijing doesn't want a stronger pro-democracy camp. before the passage of the national security law, democrat lawmakers have been accused of using disruptive tactics while fostering anti-china sentiment. playing cards, similar to those the u.s. government put out in a rack during the second gulf war, have circulated here, signaling of the faces a pro-democracy advocates including alberto. >> there will be a lot of scaring tactics. many people are being scared away. they want to defeat you without using any force, without waiting anymore. it's the way the chinese play the game. >> if i say, no, i will never be arrested, were you born yesterday? you li

joining us with more on this from hong kong is bloomberg stephen engle, bloomberg's chief north asiadent. been a chille has in hong kong and the one-month since the national security law from beijing was imposed and that squashed the appetite for protests. there has been real optimism among the pro-democracy camp that those september 6 legislative council elections, there would be wind in the sales of the people who were dissatisfied with this imposition of that national security law, that that would propel the pro-democracy camp to victory. the chief executive has postponed that election for a year, citing the fact that you -- citing the third wave of coronavirus. there was a record number of new cases yesterday. another 121 cases. she says it is not safe to hold such a big election. the pro-democracy camp says we especially when it comes within 24 hours of 12 pro-democracy candidates being disqualified and four activists arrested under the national security law for allegedly promoting self-determination. what we have seen this week is redlines being put out by the government in hon

bloomberg's stephen engle dove into the issues in our series, hong kong on edge. a preview of the second part. being on anke airplane with a lot of turbulence, everybody hanging on and waiting for the plane to land. stephen: or waiting for it to crash. >> or waiting for it to class, but this is not goin to crash because china needs hong kong. they need an open hong kong. they want to keep it safe but they want to make it stronger. stephen: beijing shirley doesn't want a stronger -- surely doesn't want a stronger pro-democracy camp. protesters were accused of fostering anti--china sentiment. playing cards similar to those put out by the u.s. during the iraq war have circulated here with the faces of pro-democracy advocates, including the ace of hearts. >> there are a lot of scare tactics. many people are being scared away. they want to defeat you without using force or without waging a war. that is the way the chinese play the game. no, ii sit here and say, will never be arrested. were you born yesterday? you live under communist rule. how dare you say such a thing

stephen engle on hong kong. up next, 5g come back.ull-year earnings guidance with a 5g plan on track. we will hear more from the nokia ceo. don't miss that interview next. this is bloomberg. ♪ welcome back to the european open. right now, 44 minutes into the trading day. we are looking at some slight gains across european equity indexes. in nokia.for shares that after the telecom equipment maker bumped its full-year earnings guidance higher. the company cut costs. in theh up with rivals markets for fifth-generation generation wireless network. joining us to talk more about behind the ceo transformation of nokia. our bloomberg intelligence technology expert was telling us that this could be one of the company is that is really leading the technology resurgence in europe, taking advantage of the 5g revolution. how much of an improvement do you see as a possibility for the aares? clearly, nokia is sliver of what it once was 20 years ago. rajeev: yes, thank you, matt. of course, that was a different business. i think we are winning more a

stephen engle has investigated the ramifications.now with a look at what is in store for the opposition after. it is a big blow to the opposition. they have 12 over there candidates and potentially even more to be disqualified. this is national security law. it is a blow. it is one of the biggest disqualifications. it is the biggest disqualification of the candidate. six candidates were disqualified. i will let you decide the merit on those this qualifications. >> i honestly feel that we are on an airplane with a lot of turbulence. everyone is hanging on, waiting for the plane to land. in most cases, the plane lands safely. >> or waiting for to crash. >> i honestly feel this airplane is not going to crash. china needs hong kong. they need an open hong kong. they just want to keep it safe. they want to make it stronger. >> beijing does not want a stronger pro-democracy camp. the for the passage of the national security law, lawmakers were accused of using disruptive and filibustering tactics while fostering anti-china sentiment. playi