hold at 1.25% good pmi stronger-than-expected when it comes to manufacturing in china. indian growth numbers coming up, and the all important jobs data out of the u.s. friday, and last but not least, the fallout from tropical storm harvey. haidi: absolutely. gasoline jumping for a seventh straight day. industrial production numbers out of japan and south korea, japan disappointing, south korea better than expected. no surprise from the bank of korea keeping the rate on hold. let's look at the shanghai and hong kong markets given that beat when it comes to china pmi manufacturing. sophie. economywith the chinese humming along, check out chinese stocks. .1% after0 gaining the slight fall on wednesday. the hang seng adding to

wednesday's drop, lower .6%, back below 28,000 level. seng, moving the hang telcos leading the drop down over 5%. china mobile leading the lag. financials also on the back foot. consumer staples gaining over 1%. real estate slightly higher by .1%, property stocks on a tear of late. a rally in developers after morgan stanley and city boosted forecast. let's look at the banking stocks in hong kong. given the slight losses, the big four beating estimates, but a mixed bag when it comes to investor reaction. falling almost 2% this morning. earnings watch for sunac. it did jump 10% ahead of results.

galaxy entertainment writing after profit beat. we are also keeping and i on cosco shipping after return to the black in the first half. when you look at the rundown for energy, the likes of jumping over 10%. , this stockut jumping the most in's january 2016, leading gains on the hang seng so far today. on the other side, laggards down over 2% this morning, dropping after its results. a last look at the shanghai composite, marginal gains, but telcos leading the drop there. consumer staples of .3%. discretionary stocks marginally higher after galaxy entertainment's earnings. earnings driving the movement we see for hong kong and chinese shares.

rishaad: earnings and economic data. well, indeed, let's get to first word news from paul allen. china shows stability with the official factory gate strengthening and august. from 51.4 last month and ahead of estimates. the economy showed cooling in july, but an offense from the turnout for exports and strong domestic demand. we will have the private caixin reading and about 15 minutes. president trump threatens to dump nafta. sonny perdue has been trying to convince the administration that the deal has been good for u.s. agricultural. smoothing out.s the second round of talks started this weekend in mexico city and the president underlined determination to put america first. >> mexico is not happy.

but as i told them, you made a lot of money for a lot of years and everyone left you alone. hopefully we can renegotiated. if we can't, we will terminated and start all over again with the real deal. paul: inflation rising as the ecb discusses paring back stimulus. beating the5% forecast of 1.7%. the ecb will review its bond buying program, scheduled to run through this year at $72 billion a month. u.s. regulators have approved a revolutionary new cancer treatment. will charge for hundred $75,000 for one use, but is for which arograms were only be paid if patients respond.

global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thanks for that. making monetary policy while facing a property bubble and rising debt is hard to juggle. how about gauging the economic future when your neighbor to the north has been launching missiles, rattling markets, unnerving investors, casting shadows over future growth. kathleen hays look at the bank of korea decision today. being stuck the rba between a rock and a hard place, but you do not envy governor lee. >> exactly. it was already a rock and a hard place when it comes to the korean economy. to gdp ratio very high, real income stalled, but as they

decide to keep that key rate steady, 1.25%, unanimous in a bloomberg survey. risks comes from the north. these missiles, the question of what will happen, we can't even imagine how important it is to the people of korea, let alone the central bank governor. it has rattled markets. the bank of korea cited geopolitical risks as one of the biggest uncertainty right now over the economy. governor lee will be speaking at a press conference in less than an hour from now and people will be waiting to see what he says about north korea, the impact on the economy. forecasting been gdp a 2.8%, which is pretty good. anything, next year will be a rate hike. this is 8437.

the white line, debt to gdp, turquoise line real average income, meaning adjusted for inflation. it has turned even lower. if you want to hike rates and slow things down, you make the cost of servicing debt higher. this is the question they face, now north korea as well. there are new property regulations that will hit construction and housing. government spending picking up. exports growing. so it is no surprise they are holding steady. the press conference will be extra interesting just because this question of north korea is so big for the korean people and for the direction of their economy. theaad: tell me about stronger growth than anticipated in the u.s. with the revision of second-quarter gdp, will this embolden the fed? >> at the least, it will make

them less nervous. to 3%-quarter gdp revised from 2.6%. tosumer spending revised up 3.3%, the most since 2016 in the second quarter. we saw business investment boosted to 7%, software spending, boosting growth and corporate earnings are 7%. first quarter only 1%. it looks like growth is spreading to the broader economy. can it last? this is what the fed has to ask itself. vince reinhardt says he thinks it will help the fed feel more confident about normalizing later this year. first half growth that 2.1%. the fed looks at potential gdp at 1.8%. ? will this boost inflation the august core pce, the fed's main gauge.

it is expected to fall 0.1% to that five months in a row it has pulled away from inflation. looking at average our earnings of 2.6%. 4.2%,mployment falls to maybe that will embolden the fed. the moves and markets today, dollar coming off the have suggesting investors got more confident after seeing that gdp report. now we have to wait for the inflation number and the big payrolls on friday. rishaad: nice one, kathleen. let's look at the floods in texas. why? they have halted shipments of liquid todd -- liquefied gas. ben sharples has a look at the fallout. >> harvey has gone global. it is rippling through. rishaad: could we be faced with

lpg shortages? asian buyers have to look for alternative supply. you're seeing that through the market at the moment from gasoline to lpg. means buyers have to find alternative sources of supply from the middle east. the question is how long these refining operations will be down and how long the shortage will be. that is the next big test for about 23% of refining capacity off-line at the moment. are talking about possibly 30% off line. see howwaiting game to long those operations come back online and start feeding the market again. rishaad: let's move to oil and oil products and look at gasoline. eight days now of gains for gasoline, but there is a

divorce. wti is barely down anything. >> the eight days of gains is 2013, andt run since prices this morning rose over two dollars a gallon. on the flipside, you are right here at crude has not done much. crude is used in those refining operations to process and make that gasoline. one other effect you are seeing are alsone pipelines closing down because of the rains in the flooding. hases like florida, which not seen a drop of rain from harvey, affected also because there are shortages and gasoline. haidi: how long will it take for harvey to come up for the markets to get ahead of harvey and start looking at the fundamentals, the supply and demand situation in the u.s.,

particularly as we get past the peak season? >> it is a good question. some refineries are restarting at corpus christi, initially affected on friday. the fundamental situation looks pretty good at the moment. we saw another decline in crude stockpiles last week. data will be skewed by harvey, but we saw the biggest august drop in stockpiles in 30 years. a cumulative effect there. u.s. crude production is steady, still around 9.5 billion barrels a day. the big test for the market is to see whether that demand will carry on outside of that seasonally strong period. haidi: thank you for that. our energy reported there in hong kong. to payg news, kia

compensation to workers, the ruling we were expecting when it comes to base pay. this is almost close to a best even then, impact seen as limited considering the chief i relations on kia. to includers ordered regular bonuses and some incentives as part of that base wage according to a ruling that has come down from the central district court on the back of 27,000 workers who filed that lawsuit in 2011. we just have that judgment coming through now. coming up, safe haven flows and uncertainty. we will look at where the dollar goes from here. this is bloomberg. ♪

♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong as we check in with the business flash headlines. uber's incoming cheek executives -- chief executive saying an ipo should happen in the next 18-36 months. the new ceo was introduced to employees by travis kalanick. he is seen as a man of principle with little ego. one of his first tasks will be to rewrite uber's ethical code. haidi: bloomberg has been told that apple is waiting into the battle for toshiba's memory business. aat is in companies with group that includes western digital and kkr. flash memory on from toshiba and its iphones.

they want the continued supply so it is not dependent on rival samsung. rishaad: expedia naming finance chief as its new ceo, quickly filling the job with the n-terminal canada. -- in terminal candidate. sent expedia stock lower on news of the departure. don't miss our interview later on, bloomberg markets america, :30 p.m. u.s. dollar bounced off its year-to-date lows in that stronger-than-expected gdp and jobs number. bloomberg dollar index extending gains against all major g10 peers. waiting for thursday's

monthly inflation number for further direction. friday's jobs numbers as well will be key. let's bring in an executive director from the bank of singapore and fx strategist. point wherear at a we are going to see a rebound? -- i think there is a chance of that happening. we have been looking for a potential dollar rally. the dollar could be on the decline and that impression has been reinforced by the strong trend. if you look at the dollar itself , our view is that it is largely trading in a sideways pattern. we are at the lower end of the range right now. for a dollarntial rally. two fronts i am looking at, tax andrm is to pessimistic

there is a chance for a surprise and the upside. data, the terms of are veryons unrealistic. haidi: what about the debt ceiling woes? will that be a catalyst to drive the dollar lower? >> possible. out,ics never commenting and this is why there is also a danger we could see a lower dollar, especially if safe haven currencies like the yen, even gold, but the issue is played out over the next one month. term, more than one month time horizon, largely the dollar is still in a range and probably at the lower end of the range, and therefore there is room for a mini rally.

rishaad: what are investors really interested in? what are they looking for an excuse to do with the dollar? we have so many short positions out there. could they be wrongfooted? >> high think potentially yes. especially against, if you look been soldlar, it has off across the board. especially against the euro, so potentially the euro looks frothy in the short-term. we could see some pullback in the euro, especially the recent strength of the euro may be hitting the ecb's pain threshold. rishaad: let's turn to the recente yen, even with geopolitical events strengthening the yen, we have seen it come back and erase some of those, well, gains. , we aresomething here

and arrange 109-111. the will it take for well currency to break out of that? >> on the downside of course is of whether the government could shut down. that could see a brief spike lower in dollar-yen. where that is where the risk is being skewed. we could see the economy to do well and reinforce the message to move gradually with the tightening path. there is a risk that if inflation starts to pick up, , cause thereinforce repricing of the fed expectation and support the dollar.

if it breaks 111, we could see 113 quite soon. is quiteoh, well, that a call. thank you indeed for that. the executive director and fx strategist for the bank of singapore. apple set to unveil major iphone changes. we will reveal what is ahead of the launch. this is bloomberg. ♪

rishaad: this is "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. apple preparing for the launch of the iphone eight in a few weeks. our tech reporter talks us through the radical changes to the new phone. >> it is almost iphone season. apple is preparing a big launch

for september where it will release its new iphone. this year, there is a twist. three iphones, two models that replace the iphone 7 and the iphone 7 plus with better cameras and faster processor. there will be a top-of-the-line, premium model with a bunch of new features. the phoneaking smaller, chopping off the bottom and top and making the sides thinner. you will get a bigger phone, about the size of the iphone 7 plus screen of 5.5 inches and an a form factor and body size of the iphone 7. that means people who want bigger phone but don't want to carry a big device in the bag or pocket or in their backpack will be able to get that bigger phone without compromising portability. it is an exciting time for apple. two thirds of the company's are based on this product. it is their cash cow.

they will the debuting three new phones along with upgraded apple tv's that can stream four k content. you get to leave the phone at home and take your apple watch with you and download apps and use it like you normally would. sounds like it could be a game changer with the new iphone eight. a quick check of the markets in rebound rally continues after a third session of gains on wall street overnight. tokyo up .6%. in sydney, a little bit of , the asx seeing gains up .5% despite declines in oil. rishaad: looking at the picture in singapore there, glorious day . .5% of, joining in the asian share rally. resilience of the american and

chinese economies underpinning all of this. the hang seng not playing ball. it is down .6%. this is bloomberg. ♪

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