is p.w. business i'm joined on in berlin welcome officially u.s. companies are now supposed to already be banned from doing business with chinese tech supplier while way but the u.s. is commerce department has again given wall weigh in 90 days take its 2nd one in a row to move about odds with the u.s. president donald trump's harsher messaging towards the company leaving many unsure of what to expect when the current reprieve and in november. when the u.s. spawn on one way it was announced 3 months ago it was a big deal for the likes of google as it meant it wouldn't be able to sell updates of its droid software to while away phones many other u.s. companies such as the chip makers qualcomm and broadcom would also be affected. but over the weekend speculation grew that the u.s. would postpone the ban on monday u.s. commerce secretary wilbur ross confirmed news of the 90 day reprieve saying it was to help u.s. companies prepare further for a time when there would not need while with some of the rural companies or dependent on more ways to agree moomaw turn to wean themselves off but there are no specific clothes and food is being granted through anything while issue has added to the comp

u.s. goods. chris garcia is a former u.s. commerce department official under president trump and he blames china for the escalation in the trade war. it comes down to who the real culprit is here who has been the bad actor in this trading relationship between the united states and china all signs point to china frankly it has been china who is engaged in intellectual property theft enforced technology transfer subsidizing state owned industries to make unfair competition really the norm between the free market traders that trade with them this is an imbalanced trading relationship that president trump has been frankly the 1st in history to try to correct it diplomatic talks unfortunately have not worked and if we look at president trump's trade tariffs threats in the past he's followed through on those terror threats and so i think it's very clear now that the gloves are off and the president will follow through on those tariff threats but frankly it's not the trade uncertainty that is leading to this this this type of negative reaction in the m

economic growth in the united states is slowing further the commerce department revising its 2nd quarter figures downwards and investment is also lagging but u.s. and consumers are hanging in there also coming up by blacklisting why waste the u.s. risks getting left behind in the race to build the next generation of pi speed internet networks and thanks to billions of dollars of stimulus and record low interest rates brazil avoids falling back into recession. underscore welcome to the program yours consumers are still buying but businesses have put their wallets away . that's the mixed message coming from a new u.s. commerce department report on economic growth here's what stands out the u.s. economy grew at a pace of 2 percent in the 2nd quarter stronger than other top economies navigating the global slowdown but much lower than the 3 point one percent of growth from the 1st quarter now business investment also fell by 6 tenths of a percent the 1st contraction since 2016 and more evidence that the global slowdown and uncertainly created by the trade war is biting into the economy however u.s. consumer spending grew by almost 5 per cent betwee

is for the u.s. department of commerce to give these special licenses to u.s. who would like to export certain technologies to huawei. both of these are going to be win-wins for both countries. china is not importing agricultural goods to the u.s., it is doing it because the citizens need them. the u.s. does not want to give special licenses to give huawei, and wants u.s. companies to have that opportunity. we can start seeing some deals around ag for huawei, it is a sign we are starting to get a final deal. paul: all right, sendhill strategy co-founder, stefanie miller. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers go to their terminal. it is available on the bloomberg anywhere app. you can customize settings so you only getting the news on the industries and assets you care about. this is bloomberg. ♪ paul: i am paul allen in sydney. shery: you are watching daybreak australia. china's leading sportswear maker is feeling the heat from the trade war as it looks to boost its prese

u.s. consumers like to buy during the holiday shopping senior. -- season. >> the commerce department has announced it isg 46 affiliates of huawei from a list of companies banned from working from u.s. businesses. democrats and republicans in congress urged the white house to maintain its hard-line stance. >> the palestinian artist has been laid to rest in occupied east jerusalem. the home from which he has been pushed away from a 1967. we have more. a small church outside the walls of jerusalem's old city, an old man has come home. 1942, hisrusalem in childhood spent in the streets and alleyways of the old city. his life and work as a leading palestinian artist marked by his inability to return. he was in beirut in 1957 when israel occupied jerusalem. remained in exile from the city that inspired him, using the geology and spirituality of christian and islamic art into his own abstract style. light hadanse of always been central to my work. perhaps it is the letter jerusalem i have been seeking to recapture all along. >> under israeli law, palestinians right outside of east jerusalem when the occupation

u.s. department of commerce is going to do with our private information. although the constitution provides protection for your privacy, we know that census information was misused in world war ii to wrongly incarcerate 120,000 u.s. citizens and residents of japanese descent, who were placed placed in concentration camps. that all adds up to a lot of distrust in federal government. however, like any other challenge, also comes a lot of opportunity. we have a message to every san francisco resident at they count they matter and they have a right to be counted and participate. there are job opportunities with the u.s. census bureau. i heard that mentioned unlike in 2010, if you are not a citizen, a u.s. citizen you will not be able to apply for those jobs. we need as many san francisco residents to apply for those openings as possible. it makes a huge difference. we can as a city stand up to hate and intimidation. we can call to action and energize the next generation of voters. many of whom will be eligible to vote for the first time in the 2020 election. a

u.s. department of commerce is going to do with our private information. although the constitution provides protection for your privacy, we know that census information was misused in world war ii to wrongly incarcerate 120,000 u.s. citizens and residents of japanese descent, who were placed placed in concentration camps.

is still a crackdown happening on huawei. the department of commerce added 46 new huawei subsidiaries to its blacklist today, but at least a temporary reprieve for some u.s. customers and a limited suite of suppliers. that is anid: important distinction. thank you so much. now let's go to carolyn in frankfurt. we had a report germany will move ahead, the finance ministers and 50 billion euros. what we know about what they are planning? carolyn: just a backup, we heard from the bundesbank earlier that they see the german economy potentially facing the risk of contracting in the third quarter. , that wouldarters mean we find ourselves in a technical recession. we're are also hearing from sources close to the government that the government is looking at stimulus measures that could target the domestic economy. in the past, what we have seen the government do in those situations is payout bonuses to incentivize car purchases. this time we are hearing they are looking into incentivizing more energy-efficient homes, promoting short-term work, that kind of thing. ist you need to understand the hurdles for the government is quite high. 's lower house of parliame

u.s. bond. trump: we don't want to do business with them for national security reasons. we will see what happens. i'm making a decision tomorrow. >> of this follows a reuters reporting the u.s. commerce department is days. and that's your bloomberg business flash. >> thank you so much. let's turn to hong kong where protesters turned out in force through heavy rain to march for an 11th straight weekend. more moderate leaders fought to reset the movement after violence at the airport last week. kong, our from hong north asia correspondent. stephen, we have seen china respond by showing video of troops and tanks across the border from hong kong. to give an indication of what kind of response could be forthcoming if the protests continue. have we heard anything more from china and the way of giving warning to hong kong people? >> that is what it is. likely a warning, holding over the head of hong kong. there has been no indication that the army is going to be coming across the border to quell the unrest, especially after this weekend. we had fairly peaceful protest and there were zero arrest, there was no tear gas fired. there was only one projectile fired for the police. -- part, thecart protesters a

is very small.>> meanwhile, we learn to the commerce department says the u.s. trade deficit with china fell 7.5 percent in june, two $30 billion. >>> i'm emily turner. in the wake of the trade deal, or no deal, we take a live look at the big board regency the dow jones industrial average is at about 168 points. this is the third straight day the dow has fallen. it has everything to do with where the trade uncertainty. in addition with the fed cutting interest rates,ut of uncertainty in the market. we will continue to monitor this and bring you the latest. back to you. >>> another tragedy for the kennedy family. >> the granddaughter of robert f kennedy found that. the looming questions this afternoon. >>> rocked overnight. a first look at the damage from this year morning 6.9 magnitude earthquake. >>> we are watching the skies clear after a cloudy and start to the day. shaping up to be a beautiful afternoon. here is alive look at the treasure island camera. we talk about a big warm-up heading into the weekend, coming up. >>> tragedy has visited the kennedy famil

is governed by the department of commerce. when it enters a freshwater stream, the department of wildlife. is governed by the u.s. government of agriculture. its egg is governed by the fda. omelette, made by an the fda governs it. a pizza with cheese on top is governed by the fda. as soon as you put on pepperoni, it is governed by the usda. this is outrageous. this is stupid. this is no way to run a government, and we are fixing it in washington dc, and my favorite story will prove it to you. [applause] chief mulvaney: here is why. reorganization of government ties in nicely with deregulation. that is our function of government gives you a regulatory scheme that makes no sense. the president's number one priority beyond taxes, when he sits with cabinet secretaries, he says that where yo -- where are you on dereg? hen we came into office, wanted us to take off every -- two regulations for everyone we added. instead we took off 16 for every single one. regardless of the numbers, when a new reg costs one dollar extra, you have to find another regulation to get rid of that dollar so there is no new burden. this is st

that is the number of applications that reportedly went to the u.s. commerce departmentamerican companies that are looking to continue to sell to huawei so reuters was told by sources that the trump administration is still unsure whether or not it's going to grant all of these licenses because of all the uncertainty around the trade deal and i was speaking to huawei a couple of minutes ago and they said that they have no comment on this report but except to say that the company hoped the u.s. would take it off the blacklist and end what huawei has described as unjust treatment. now meanwhile, beijing is indicating that it doesn't want to provoke the white house at least when it comes to currencies the central bank for the second day in a row set the value of the yuan stronger than what most people were expecting. and going to stabilize the currency throughout the whole trade war process. >> eunice, chinese state media is also weighing in this morning and weighing in on the u.s.-china trade tensions. what are they saying now overseas >> well, you know, it's really interes

is the federal government buying huawei products, not necessarily a broader injunction on huawei being able to do business inside the u.s. economy that process is still unfolding over at the department of commerceuawei for its smart complaining about all of this saying it's unjust treatment that it's being given here by the white house. nonetheless the president is suggesting he's still pretty down on wareway. >> eamon, stay right there we'll bring in james pethokoukis, and you hear this what do you think, is it a case of nip flopping or a case of the bark being worse than the bite and other investors getting in there and changing mayor mind. what do you think? >> the president saying let's do this because i'm really unhappy about it remember, there are those in the caho this as an opening shot. >> not just in this administration there are democrats who think this in congress, too. >> for sure. that's the president's problem is if he's calling it right now that they are a national security issue if that's the case, then it's hard to come to a trade deal that doesn't -- that doesn't involve some sort of limitation on huawei. it's did, it's hard to see the end game there. >> jimmy, let me ask you

become one in the same to the extent that we last week the commerce department is basically holding passing those licenses that would allow u.scompanies huaweiore business with because trade tensions are escalating between u.s. and china. >> u.s. trying it get allies on board. is that effort proceeding? >> that's been much more u.s. tot for the achieve. had lot of trouble convincing, allies note european to use that's cheap, reliable fast. there are reportedly some tensions between india and china gear.uawei it does seem like the u.s. having some success there in india and may be moving towards something like a blacklist that has..s. the efforts to get u.s. allies europe and australian places nearly as not moving quickly. that's rowling the company -- tot's allowing the company make plans to survive. reportsve seen news from bloomberg that companies intel are banned blacklist. >> those company have said they don't believe those sales violate the condition, regulations that are in place that block u.s. sales. what they are dodge is trying to get those licenses that i mentioned from the u.s. commerce are now on those hold. comm

is slowing further the commerce department revises a 2nd quarter figures down words on investment is also lagging but us the consumers are hanging in there also calling on by blacklisting flyways the u.s. risks getting left behind in their. used to build the next generation of high speed internet networks and thanks to billions of dollars of stimulus and record low interest rates brazil avoids falling back into recession. and for school welcome to the program us consumers are still buying but businesses have put their wallets away that's the mixed message coming from a new u.s. commerce department report on economic growth here's what stands out the u.s. economy grew at a pace of 2 percent in the 2nd quarter stronger than other top economies navigating the global slowdown but much lower than the 3 point one percent of growth from the 1st quarter now business investment also fell by 6 tenths of a percent the 1st contraction since 2016 and more evidence that the global slowdown and certainly created by the trade war is biting into the economy however u.s. consumer spending grew by almost 5 per cent between the beginning of april and the end of june it is the fastest pace in almost 5 yea

is governed by the u.s. department of congress. -- department of commerce. and it's governed by the department of interior. and it has to go to the u.s. army corps of engineers. when you have a chicken -- i always get this one backwards. the chicken is laid an egg. that is governed by the f.d.a. it's broken. and governed by the f.d.a. if you put the egg in a sandwich is governed by the f.d.a. if you have a frozen pizza and it's got cheese, it's governed by the f.d.a. -- governed by the usda. as soon as you add pepperoni it's governed by the usda if you have an open face club san witch it's governed by one agency and covered by another. this is stupid. no way to run a government. we are fixing it in washington, d.c. and my favorite story we'll prove it to you. here's why. we've got -- reorganization of government that ties in with reorganization because that bizarre function of government gives you a regulatory scheme that makes no sense. the president's number one priority beyond taxes and foreign government he says where are you on de-regular? and everyone one taking it extraordinary seriously. he wants yo

u.s. economy cooling off even faster than incredible reported. suggesting president trump's trade war with china is weighing more heavily on the american business sector. commerce departmentoday revised downward the second quarter u.s. domestic gross domestic product gdp to 2% annualized growth rate. first estimate in july was 2.1%. that comes as the latest quinnipiac poll shows for the first time president trump was elected more american voters say the economy is getting worse. 37% say the economy is getting better is at 31%. that's a significant slide. down 14% since june when that poll showed 23% of voters believe the nation's economy was getting worse and 39% said it was improving. then this. president trump getting a major warning on his trade war from hundreds of american retailers including nike, puma and adidas urging trump to cancel his new tariffs on china set to begin sunday. more than 200 u.s. footwear companies signing a letter to trump saying his new 15% tariffs on shoes are quote job killers and his trade war is unnecessary. i want to bring in matt priest, ceo of footwear distributors and retailers of america, a trade organization advocating for the u.s. fo

u.s. is not easing up all pressure on china the commerce department has announced it's adding $46.00 affiliates of walkway to a list of companies banned for working with american businesses as both democrats and republicans in congress urge the white house to maintain its hard line stance kimberly health at al-jazeera the white house. and it's time for the sport here's joe roth thank you very much australia star batsman steve smith has been ruled out of the 3rd ashes test with concussion he wants training but has failed to recover sufficiently after being hit on the head by in the bowler joe for archer lord's it raises further questions as to why doctors allowed him to continue batting just 40 minutes after the incident on saturday monosyllabic shane eventually came on as a concussion sub and hit 59 he's most likely to replace smith for the 3rd test which starts in leeds on thursday. and in the end of the day it was a really a no brainer the. road a bit better yesterday but he's not have torm enough to to tick off everything in those today to be ready to fly or the other guys their senior playe

u.s. is not easing up all pressure on china the commerce department has announced it's adding $46.00 affiliates of huawei to a list of companies banned from working with american businesses as both democrats and republicans in congress urge the white house to maintain its hardline stance can really help at al-jazeera the white house the salvadoran woman at the center of a controversial abortion trial has been acquitted of all charges evelyn hernandez was charged with murder after giving birth to a stillborn baby in a public toilet she says she was raped and didn't know that she was pregnant and salvador has strict abortion laws and women who have miscarriages have been accused of murder in the past. year i also asked that justice and freedom be done for the 17 other women who have been locked up in similar cases my future is to keep studying and achieve my goals bolivia's president has delivered humanitarian aid to residents who fled wildfires in the center of the country billy hall for a 1000000 hectares of bolivia's agricultural heartlands been burned no deaths have been reported but the coun

u.s. commerce department is looking at these requests so far according to wilbur ross, they received 50 requests a decision is pending and it might take even longer given that china of course said they are suspending buying farm goods and president trump at the g20 says okay, we'll give some reprieve to huawei but that's contingent on china buying more agricultural goods and so the fact that china is suspending these purchases because they say that the 10% tariff on $300 billion worth of chinese goods that might go off decembes that negotiation and that agreement at the g20 in osaka. >>stuart: got it. complicated. back to joel despite the wild week that we've had i think you still think that the market overall goes higher for the rest of this year? >> we think prices are appropriately at an appropriate level. with the interest rates, there's a lot of focus a lot of concentration we're hearing from one period as we have throughout the year between the 10 year treasury and the two-year treasury a lot of institutional investors very nervous about in version, which means the 10 year rate comes below

is in beijing for us tonight. ♪ >> reporter: 130. that's the number of applications the u.s. commerc departmenteportedly received by american companies looking toontinue to sel to huawei. sources tell reuters that theis trump admation has not yet decided on whether to grant the licenses with progress on the trade deal so uncertain. huawei won't comment on the report except to say that the compan t hopes u.s. would take it off the black list and end what huawei describ as unjust treatment. meanwhile, beijing is indicating it doesn't want to pvoke the white house with its currency. a central bank setf the value the yuan stronger than expected for the second day in a row, suggesting it wants to keep it stable. separately, there's been an interesting development on the political side that could verff wellt the trade talks. just in the past couple of days ee state media h has started using a title for president xi jinping we normally don'tit see. suggests that the person has iritual authority b combining pope and president into one. people here are seeing this bad sign for a trade deal, because with

is a verdict. we are hearing used the commerce department will allow certain u.s. a waiver to keep working with huawei. seems like trump wants to tie all of these issues happening at once with china into a nice, neat little bundle he can negotiate at the same time, keeping investors and the chinese government on its toes. it is a confusing strategy, to be honest. the huawei one is interesting because it is either a security risk or it is not. you could also say the same about what has been going on in the markets. president trump saying he is now mark.g, exclamation we know the president uses what is happening with equities as a barometer of his success. isaac: it feels like the huawei situation is a lot of people in the national security community really do believe huawei is an important national security threat. for trump he is willing to use that line when is effective to him for his greater economic and trade war goals and otherwise he is willing to be more flexible with huawei. it is very political. paul: on the subject of bargaining chips, are we seeing hong

is sarah mcgregor. let's turn to u.s. economic data. sarah mentioned the growth figures and decelerating in the second quarter by more than initially reported. the commerce departmentevised gdp growth downwards to 2%. spending topping all forecasts. take us through all the data, sarah house. she is joining us from charlotte, north carolina. we got a revision but it was just they very small revision. all told the report is quite decent, wouldn't you agree? sarah: i would agree in terms the fact you are looking at a great quarter in terms of final sales. revised toending was the strongest pace in about four years. we continue to see strength and resilience coming out of the consumer sector and offsetting the headwinds we have seen in terms of the capital investment environment. amber: could you make the argan at the consumer sector, while the best growth we have seen in some time is lagging. when you look at business investment, which struggled for any material growth over the past year, it's a forward-looking indicator that could spell trouble, perhaps even recession down the line? sarah: it does tend to lag but it's also sizable in terms of its share of the economy

is bloomberg. vonnie: thank you for that first word news. the commerce department announcing this morning the u.she huawei waiver for 90 days. companies can continue to do business with huawei. this coming despite president trump calling the company "a national security threat." we also had china revamping the way it calculates the price of credit, and reports of china considering more stimulus overnight. we are joined to discuss all of this by damian sassower, chief emerging-market credit strategist for bloomberg intelligence. overnight, we had this decision on rates which we were expecting, and also reports of more stimulus. is china getting a little concerned? damian: extending the restrictions on huawei 90 days isn't really much of anything, but liberalizing their interest rate regime and trying to refine the transition mechanism, allowing short rates to impact the longer end of the curve, the way china does it right now is they said a one year rate. what they are trying to do, they are trying to do away with that entirely, set the shorter rates with this new benchmark rate, set the front end

reuters and the wall street journal report the commerce department is planning to extend a reprieve to allow huawei to do business with u.scompanies. the current agreement expires today and yesterday president donald trump said he didn't want to do busiss with huawei for security reasons but he said he will make a decision today. more are sounding the alarm about recession. 38% of economists believe the u.s. will tip into a recession next year and another 34% believe it will be 2021 and experts are concerned about the impact of the trump administration tariffs on u.s. trading partners. >>> a new box office winner this past weekend and which film was on top? >> reporter: the comedy good boy topped the box office. the first letter are rated comedy to top since the office. good boy took in the highest box office receipts this weekend. the lion king was third with almost $12 million. >>> the time is 5:39. >>> straight ahead, there is an app for everything now but some say this goes too far. the weight watcher program for 8-year-olds. >>> i'm tracking clouds and fog and even drizzle this morning and through the afternoon we wi

he's pushing back on reports that the commerce department is poised to renew the license to buy u.s.y, we don't want to do business with huawei for national security reasons. we will see what happens. i making a decision tomorrow stop >. >> let's bring in our guests. the firm has 332 billion dollars management. clearly keeps the downside risks which reinforces sentiment in one part of the world. >> where do you hide? >> in bonds. [laughter] >> where in bonds? >> most of the market has been and the yields, so evenbe attractive, the likes of india, malaysia, and china. a place to hide is still stuck. we still find various attractive opportunities across the world and in asia, given the relatively lower yields that we have. i think it works well for us. >> do you agree yields are on a one-way bet? down? can't rule out or ignore the risks, that they have a sudden improvement in the trade tensions. you might see some other which couldsk on turn it slightly higher. but broadly, given the macro outlook, we do feel that there are much greater chances going on from here. do you think that thi

is remarkably u.s. strong economy. paul: to your point of the first 2 years of the economy, this week the commerce department revised totatistics upwards for 2017 and especially 2018 where it looked like more people were getting more raises in personal income and that's feeding the strength machine in consumer spending in the job market. >> having wage growth is obviously one of the most important aspects of, you know, economic growth, i mean, for a politician to be be able to brag, if you don't have any wage growth, you know, people feel like you are really not helping them much. but i think one of the big problems here as we inch up part of business cycle, normal recession, people are looking around and saying, okay, what can the government do and because government, not just u.s. government around the world have new stimulus spending, you know, and gone to extremes in terms of fiscal budgets to spend to deficit spend in order to get economies going, they don't have that bullet in the chamber and, you know, the fed is also -- has very low rates right now, so it doesn't have so much room either to play with. paul: one

u.s. is pushing against that, everybody knows this makes no economic sense. this is a political move the president wanted to hit china they want to prepare the way for the department of commerceo call china's currency manipulation a subsidy, to use counter veiling trade mechanism -- >> it's not a concern about u.s. intervention in the currency markets, it's more what the u.s. could do if that's categorized as a subsidy >> the commerce department is setting up to do that. >> are you surprised the chinese appear to have stepped back as quickly as they have in the past 24 hours >> i don't think their intention was to blow this out i think they wanted to test 7 -- >> they wanted to test 7, a stick in the eye to say we can do this. >> as i said many times before, it doesn't make sense for the chinese to pull out of the talks now. they get more by doing just enough to appease the president, extending this on. they need to worry about huawei in the short-term. the temporary general license expires august 19th. they have to worry about tech companies, this blowing out to 25%. it's not impossible september 1st that we see 25% tariffs on september 1st instead of 10% >> is it good or ba

u.s. economy, $500 billion a year, not million, not million -- billion. with a "b." we've made it clear that the theft of american jobs and american wealth is over. dagen: joining us now, former u.s. commerce departmentinancial ceo, chris garcia. what do you make of the president's remarks? there's a lot to talk about, just in the snip pe the snipspee played. >> if we don't handle china properly it's going to be sunday morning coming down for the next decade. i want to paint an illustration. it's like not paying your electric bill, not paying your water bill, not paying your mortgage, not paying your taxes and saying i don't want to pay the bills that are past due and in the future could you meet me halfway. the chinese foreign ministry said we want the united states to meet us halfway there is no halfway. either you do it or you don't. it's kind of like going to your meter and trying to adjust your meter with the way china's been manipulating the currency. everybody knows what's going on. everybody knows what's happening. the president is the first one in decades to stand up to china to actually get them to play by the rules. that's all we're asking for. dagen: i've said this repeatedly since presid

is heidi koster with the latest live in washington d.c. we are going to stay with the story we're joined by chris. because financial and former u.s. commerce department official under president trump and he's also joining us live from washington d.c. thea good to have you with us on al-jazeera so president tried to balance thing more fatalities 3 tabs but will he go through with them do you think especially if they hurt u.s. consumers the economy which he is relying on to get him reelected. well that's a great question to ask because really frankly it comes down to who the real culprit is here who has been the bad actor in this trading relationship between the united states and china all signs point to china frankly it has been china who is engaged in intellectual property theft enforced technology transfer subsidizing state owned industries to make unfair competition really the norm between the free market traders that trade with them this is an imbalanced trading relationship that president trump has been frankly the 1st in history to try to correct it diplomatic talks unfortunately have not worked and if we look at president trump's trade tariffs

u.s. commerce department under president trump he blames china for the escalation of a trade war between the world's 2 biggest economies. it comes down to who the real culprit is here who has been the bad actor in this trading relationship between the united states and china all signs point to china frankly it has been china who is engaged in intellectual property theft in forced technology transfer subsidizing state owned industries to make unfair competition really the norm between the free market traders that trade with them this is an imbalanced trading relationship that president trump has been frankly the 1st in history to try to correct it diplomatic talks unfortunately have not worked and if we look at president trump's trade tariffs threats in the past he's followed through on those terror threats and so i think it's very clear now that the gloves are off and the president will follow through on those tariff threats but frankly it's not the trade uncertainty that is leading to this this type of negative reaction in the markets it's the fact that really we're not getting any support from the fed which is which is supposed to be acting in the u.s. is in

u.s. commerce department official on the president charm and he blames china for the escalation in the trade war between the world's 2 biggest economies. it comes down to who the real culprit is here who has been the bad actor in this trading relationship between the united states and china all signs point to china frankly it has been china who is engaged in intellectual property theft in forced technology transfer subsidizing state owned industries to make unfair competition really the norm between the free market traders that trade with them this is an imbalanced trading relationship that president trump has been frankly the 1st in history to try to correct it diplomatic talks unfortunately have not worked and if we look at president trump's trade tariffs threats in the past he's followed through on those terror threats and so i think it's very clear now that the gloves are off and the president will follow through on those tariff threats but frankly it's not the trade uncertainty that is leading to this this this type of negative reaction in the markets it's the fact that really we're not getting any support from the fed which is which is supposed to be acting in the u.s.

is one of those democrats who are pushing for a vote. so we'll see what happens on that. in terms of the u.s. versus huawei, the commerce department applications from u.s. companies for licenses to sell goods to the chinese tech giant. this is according to reuters. the flood of applications coming just two months after president trump said some sales would be allowed. cleat, your reaction to that? >> well, this is something that is a difficult issue where the u.s. i think is trying to balance national security with the economic issues. and i think you're going to see that continue to happen and that is a difficult issue. we talked about this before. i do think there's a nuanced way forward. but this goes back to -- i want to just take a moment, go back to working with allies. this is an issue where we need to work together with our allies, where there were conversations at the g7 and we need to build on how do we work together on all of these china issues and one that i think is critical, you talk about huawei, i also want to talk about the wto. president macron and the statement that he made coming out of the g7 talked about how

financial and former commerce department official under president trump is joining us from washington d.c. thanks for speaking to us on al-jazeera so president trump is saying that the u.s. is in a strong position but we also know that china has now officially said it is going to stop buying u.s. our group cultural products so with farmers in the u.s. now losing one of their biggest customers that is china how does this all bode well for the trumpet ministration. right so firstly i'd like to state that it's the intention of this white house that's the intention of this administration certainly that of the united states to reach an amicable deal with china but that deal has to be a fair free and reciprocal deal what we're seeing is china did not in fact come through with the promises that were negotiated back in may we found that they were i believe 995 percent of those concessions that china had agreed to agreed to and at the last minute they pulled out there was $100.00 page document and then china pulled out 50 of those pages which were all of the structural changes that were requested by this administration china then promises at the g 20 summit that in fact we will

official who spoke to the commerce department said we're not opens are now about putting more tariffs on the u.s. and retaliating, let's start talking about taking the tariffs off, that is what got this rally going. how about asian markets? that's right. we're seeing a lot more green on the board. the markets were being held hostage to what they were waiting for next and it turned good news." that china is not going to immediately retaliate. we are reversing some of the losses from yesterday. we do see the asx 200 on it third straight day of gains. yesterday, we saw the health-care sector leading. switching gears and taking a look at what is on tap on the economic calendar. a very busy day. we will be breaking a lot of these numbers later in the hour. want to focus on that japan factory output. industrial output probably rebounded according to bloomberg's economics forecast with analysts projecting a gain of .3% in july after a decline in june. on that bank of korea decision, we will be expecting that benchmark to be mostly unchanged, monitoring that july 25 basis point cut. paul: thanks very much for that. jessica: u.k. and e.u. teams will meet at least twice a week ne

u.s. down 12% year on year. exports to china down 19%. that's according to the commerce department. then of course, there's the eu. the president isnouncement at 1:45 so we will be watching but on july 2nd, the u.s. proposed new tariffs on goods from the eu of the $21 billion of goods that the u.s. said in april would be subject to tariffs. then of course, mexico and canada. there was some hope when the tariff border issues were resolved back in june and that a quick passage of usmca would at least quiet things down on that front, but not a resolution just yet. canada is the u.s.'s second largest trade partner so something to worry about. mike pence said he hopes the passage is going to happen this fall. the democrats, though, dragging their feet, still pushing for certain improvements in the fine print. august is typically a slow period for stocks. things tend to pick up in the fall when vacations are over and it's back to business. the hope now is that a lot will get done in september and that certainly adds a lot of pressure. neil: thank you as always, jackie deangelis. how you doing? let's go to charlie gasparino on this. we h