matt? matt: thanks very much. annext, hong kong faces earnings recession not seen in a decade, as businesses start to warn that they see ongoing protests dampening demand. this is bloomberg. ♪ ♪ we have the flexibility on moving to slightly smaller aircraft. 's,y've got the 200 essentially the same aircraft with less seats. we will do that over the next few months, take 7% of the capacity out in anticipation this will continue for a few months. matt: the ceo of qantas warning about the impact of the ongoing protests in hong kong. the island is facing its deepest earnings recession since the global financial crisis. shares on the hang seng index have lost more than half $1 trillion in value in the last three months. that does not mean the valuations are looking attractive. analysts see an average 19% slump in operating income for the companies listed in the city. joining us for more from our hong kong bureau is the chief of the bureau. what is behind this corporate slowdown? it is all -- is it all about the pro

matt: annabelle, thanks. coming up on bloomberg, i will be speaking to the german economy minister peter all meyer , or at least i am going to try to. he is talking at an aircraft conference in leipzig. i will ride down there and lobby and a couple of questions as germany prepares for the possibility of a stimulus package in a slowing economy. don't miss that, around 3:00 p.m. london time. remember, when you are driving into the work at -- into work in the morning, bloomberg is available on your radio device if you are in the london area. this is bloomberg. ♪ matt: welcome back to bloomberg markets. we are 17 minutes away from the cash trade, looking at gains across european equity index futures. of 1%.e, but about 2/10 let's get to the story of italy, a dramatic saga. the government is in the midst of another political crisis after the resignation of the prime minister. he blames his deputy for the government's fall, saying matteo sell feeney's demand for an election was irresponsible. consultations will b

matt: what do you do? obviously, you are at coutts so a lot of your assets are in sterling but does not mean you like domestic facing u.k. stocks? monique: we like u.k. assets. we are overweight sterling assets. we like u.k. equities. the survey showed us investors are macs underweight u.k. equities at the moment. they are, as i always characterize it, unloved, underappreciated, and under owned. the ftse 100 is largely made up of global companies that derive their revenue from overseas. at the moment, it has a brexit discount, but we know markets don't like uncertainty. i think you can make the case that if you have brexit on october 31, whether it is with a deal or no deal, businesses can get back to doing business as usual and dealing with whatever form of brexit that is. deal brexit, the no we are talking about on october 31 will look different than it might have done at the end of march. we are talking about a managed no deal where the government is planning for it as we saw in the dossier that was lea

lisa: matt? matt: no. lisa: the next question, em debt, buy or sell? matt? matt: i'm a buyer here. lisa: you are a buyer here. luke? luke: i cannot buy it. it is too expensive, it is dollars. lisa: jim? jim: the dollar is getting stronger and that is going to put pressure on e.m. lisa: my thanks to jim keegan, luke hickmore, matt toms. from new york, that does it for us. "real yield" is back next friday 6:00 p.m. in london, focus very much on bonds. from new york, this is bloomberg "real yield." ♪ scarlet: i'm scarlet fu. this is bloomberg "etf iq," where we focus on the access, risks and rewards offered by exchange traded funds. rising odds of recession. but etf flows show a clear disconnect between what we hear and what investors are doing. who is right? time for risk parity? alex is bringing a strategy popularized by a billionaire to an etf near you. and peso pain. an argentina etf bleeds cash as investors

lisa: matt. matt: no. lisa: the next question, em debt, buy or sell? matt? matt: i'm a buyer here. lisa: you are a buyer here. luke. luke: i cannot buy it. it is too expensive, it is dollars. jim: the dollar is getting stronger and that is going to put pressure on e.m. lisa: my thanks to jim keegan, luke hickmore, matt toms. from new york, that does it for us. real yield is back next friday 6:00 p.m. in london, focus very much on bonds. from new york, this is bloomberg "real yield." ♪ >> coming up on "bloomberg best." the stories that take the weekend business around the world. markets keep calm while global carry on. >> we'll have to see the chance to form an alternative majority in the new government. >> germany ponders stimulus as recession looms. be found.h can >> civil unrest and government pressure keeps hong kong on edge. >> we're all breathing sigh of relief that we didn't see violent cs.

matt? matt: thanks very much. investors wait for fed chair jay powell's speech today at the jackson hole symposium. will be closely watched for any clues on whether or not the central bank chief still sees july as a midcycle adjustment or possibly the start of something bigger. the chief executive advisor at allianz says and easing cycle may not be what the economy needs. >> for markets, it is really important. markets are looking for a cycle that goes at least 75 basis points. some argue even further. but the reality is it won't do anything for the economy. the reality is it may boost asset prices in the short term but increase the risk of instability around the world. have priced in a 25 basis point cut for next month. three fed policymakers have voiced resistance, saying they want to avoid taking further action unless they have to. is of those dissenters kansas city fed president esther george. >> as i look at where the economy is, it is not yet time. i am not ready to provide more accommodation to the economy

matt: i have to -- matt. matt: i have to say, i will give it to you because that is more of a global chart. you can really feel the global market angst with that type of volatility. dani burger, you win this battle of the charts. anna? anna: indeed a worthy winner. let's see where we are at the -- well, an hour into the trading day this is the picture. u.k. assets standout. we see some strength in the pound because of the news flow around those trying to block a notable exit. the ftse down -- no deal brexit. the ftse down zero point 4%. this bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. click, call or

. ♪ matt: this is "bloomberg daybreak: europe." i'm matt miller in berlin. let's check in on the markets. first, a look at what is going on in asia. we have a little bit of mixed trade, but in general we see the msi asia-pacific rising. some chinese indexes are falling on trade war concerns. the japanese 10 year yield down another two basis points, yielding -21 basis points, and the yen making things not so easy for the bank of japan in terms of keeping up inflation. 112erms of the euro-dollar, is the level you are watching. s&p futures are down after a big rally in yesterday's session, and brent crude continues to fall, today another six cents. down $57.ent crude today, we are asking a question on the mliv blog, what impact would the dollar intervention have across assets? you can join the debate, reach out to us and the mliv team. this is spurred by president trump's continued complaints or renewed complaints about the stronger greenback. let's get the bloomberg business flash. for that we go to annabelle droulers in hong kong. annabelle: hundreds of jobs

matt? matt: thanks so much, tom mackenzie in beijing. vestas is falling after reporting profits that missed forecast. wind turbine revenue dropped. the danish manufacturer also narrowed its earnings guidance closer to the downside. joining us is the new ceo of vesta's -- vestas. let me ask you why you are narrowing forecast to the downside -- forecasts to the downside. is the outlook looking pessimistic? >> good morning, and thank you. , we have improved visibility for the remainder therefore, year, and we are increasing the range and guidance on the top side and we are doing it at the lower part of the range. but that also comes on the back of q2, where we had a record or intake there we have had the best service quarter in the vestas.of ve -- shape up to the fact that we are being challenged by tariffs and doing everything we can to mitigate. the fact is, they are still going up and still being introduced from various parts of the world. so that is the main reason for it. tariffs and a production tax credit being phased out in the u.s.

matt? matt: thanks very much. it's m&a monday. let's take a look at the deals driving markets and big movers in europe. joining us from our deals team is sarah syed. , maybel about ams' bid starting a price war, certainly moving the markets. painfult's been a movement to cover. the feeling was they were the only bidders around in this process. about a month ago, they said they would like to make a bid. they rescinded that offer, said they would like to do another, and pulled it back again. it's been a roller coaster ride back and forth, putting pressure on bain and carlisle, the equity consortium that made a bid for the business. matt: so do we get them coming back to increase the offer? sarah: that would show their eagerness if they do come back with a higher offer, that they have been doing due diligence. for the offer they are putting on the table, as far as their considered, it is a fair and good offer. they've also been under pressure last week, the largest shareholders came out and said they felt the bid from bain and carlis

matt: i disagree. the market will not assume that the fed knows anymore than it does more than a day or two ahead. a proactive fed helps the market, does not instill fear for more than a short-term amount of time. in our opinion, three extra cuts allows the 10-year to steepen, if some of the trade uncertainty goes away. it is hard to see below 1.5 on the 10 year when the inflation expectations have a hard time getting below that level. a negative real yield on 10. 1.5 is a key level on us for cash and on 10. don'tit's interesting you think the markets are saying what does the fed know what we don't know? certainly, the fed is wondering what the market knows what we don't know. loretta mester telling bloomberg, she may not agree with the signals from the bond market, but they cannot be ignored. >> no doubt bond investors have a more pessimistic view of the u.s. economy than perhaps the economists and i do. we have to take a signal from that. we cannot just ignore what is happening there. lisa: jim, do y

matt: thank you. yields on 10 year treasuries have fallen lower again on weak economic data out of china. the rush for cover from global risk is overshadowed by u.s. inflation data. it hit a six month high in a broad-based gain. the pickup may limit the case for an additional rate cut, but scott minor told bloomberg a half-point reduction between meetings would send a clear signal. >> given the fact that the fed is boxed in the way it is, my view is they should go ahead and cut rates dramatically by half a point, and probably do it and get it over with. matt: joubeen hurren, portfolio manager fixed income, aviva investors global service is still with us. markets are still pricing in more than 50 basis points in cuts. what do you think about the with aion they should go surprise 50 basis point cut between meetings? joubeen: i think the rationale would be that it is difficult at this point for the fed to out-dove market expectations. once it has priced in, it does not have impact on financial decisions.

matt: absolutely. dani burger was trying to make it happen like heather was trying to make fetch a thing. the sentiment i agree with 100%. when the curve inverted yesterday, it was something that ripple around the world. when the 30 year bond yield hit a new record low and went further, low 2%. that is something you can't ignore. the carnage we saw in equity markets was immediate and severe. it's definitely something that all investors have to keep an eye on. historically, it has been a fantastic indicator of a recession. that's a concern for global growth. nejra: what's interesting as well on the duration question, we have allen higgins onset with us. i asked him, would you want to add to duration at this point? he said, that might've gone too far. that's another interesting point of view. today, we are asking the question on mliv, how serious is the u.s. yield curve inversion for assets? you can join the debate, reach out to was in the mliv team on your bloomberg. hong kong is facing another threat a

matt: it's amazing. in fact, i was just talking with john roe, i asked him what if we took the traded tweets -- trade tweets and just put them aside and tried to trade without the noise. he said it would be impossible, because that is what is moving the markets. the certainly proves his point correct. we are waiting for u.s. gdp, i got my screen up your you can type the ceo go on bloomberg -- type eco-go on the bloomberg. quarter over quarter, we are looking for 2%. from theittle bit down first reading of second-quarter gdp growth which was 2.1%. the question is, if we actually beat the survey, this is the question of the day, what happens to fed rate cut expectations? if we miss the survey about that also could move the needle. 2% is what we are looking for, but is interesting to see if we go on either side of that trade. anna: let's leave the market checking there for the moment and get back to politics. boris johnson has thrown down the gauntlet. the queen granted his request to suspend parliament, gi

matt: all right, thank you. and you this reported second-quarter operating profits that missed estimates. the earnings were squeezed by higher freight costs and cheaper pricing. joining us now is the ceo of adidas, kasper rorsted. you talked about freight costs and i want to get you to detail what you are flying in for why these costs are hitting the bottom line? kasper: sure. if you look at our numbers, we are 100% on her forecast. we have confirmed the annual outlook, so there is no change of the outlook. we said that we have a comply constrained situation and that .eans that we are flying in 14% and china growing their online business growing. you talk about a less favorable pricing mix this time around. what is driving that? kasper: we are seeing the consumer demand is coming from the market. , we area different mix seeing a very large demand from consumers across the world. whichever market you go into. matt: we have been talking about the fact that it is your anniversary and that is a little shameless plug

matt? matt: thanks very much. annabelle droulers in hong kong. president trump's advisors spend the weekend talking down threats to the u.s. economy. they did the rounds on american talk shows, saying economists and bankers were marking up their forecast for the remainder of the year. think of america boss brian moynihan stuck to the script. the president held a conference call with him, jamie dimon, and michael corbat. two days later, the bank of america ceo is painting an optimistic picture of the economy, speaking it's closely to bloomberg. turmoil the recent is driven by issues outside the country. economy,k into that and we see good things. it has been increasing over the course of 2019. what do we see? we see it based on consumer spending. when i talk about consumer spending at bank of america through august wealth, $1.9 trillion was spent by consumers written, $1.9 trillion. that is up year to date through august 12. 8.5%.as up about you see an almost 6% growth. that means consumers are spending a lot of money, and they are doing it across

matt? matt: thanks very much. yields on 10 year treasuries have fallen lower on weak economic data out of china. and in the annual fund manager survey, traders were most bullish on rates since 2008. but the rush for cover overshadowed data. inflation minus food and energy. that might limit the pace for additional fed rate cuts, but a guggenheim partner told bloomberg that a quick reduction would send a clear signal. >> given the fact the fed is in, they shouldd- cut rates dramatically and do it and get this over with. matt: a senior multi-asset strategist at state street is still with us. -- interesting to see him call for a cut from the fed between meetings. previously, he thought the fed should raise rates in this economy. what is your view? our view is a little bit more benign. we believe the economy is not entering a recession. we see labor markets and consumers being strong. the economy is not collapsing, and he is probably looking at u.s. economies. they do not need rate cuts for however, there are external

matt: good morning. matt here in berlin. we had a slew of fed speakers yesterday that pulled back expectations for a big rate cut, if any at all. that really changes things in markets. nejra: you saw adjustment in pricing in terms of futures. have we just heard from the hawks? what is jay powell going to do? is he going to push back from -- we know historically jackson hole speeches can give signals of monetary policy in the future. matt: interesting we continued to see gains in u.s. stocks. the s&p 500 closed down a little bit, but it was not too bad. now we see futures pointing to gains at the open this morning as well. look at the bloomberg dollar index. we have seen the dollar index .overing around 1290 it is climbing further as expectations for cuts are less than. talkingd adrian orr about no need for rate cuts there. they had their surprise cut last time. now you see the new zealand dollar also gaining in u.s. dollar terms. a lot of green on the screen. nejra: the 10 year treasury yield has been rising the past three d

matt? matt: thanks so much. olivia hows in london with your business flash. argentina suffered the second-biggest market selloff of any stock market globally since 1950. that was after an unexpected result in the country's primary with 90% of the ballots counted, the main opposition candidate to nearly 40% of the vote to 38% for the sitting president mauricio macri. the peso tumbled as much as 33% to a record low 60. 48% inck index lost dollar terms, the most in intraday trading. our managing editor for global emerging markets is justin carrigan. i wonder if this kind of market punishment can move the needle at all in terms of voter sentiment. depends ont really how the two main contenders play it. saying this isri what you get if you vote for populism. you can see how it is graded internationally and it is not being greeted well at all. on the other hand, you have fernandez saying mr. macri, all of this is your fault. the market is selling off because they don't trust what you are doing so go and fix it. that is the kind of deadlock we are in now. it is a ve

matt: exactly. i will say from personal experience, driving along the autobahn, it is construction site after construction site, and we never see anyone working on those construction sites. they really need more people, i guess would be one more to put it. thank you. a reminder that there is still no trading on the ftse 100 and the ftse 250 due to a technical glitch. the stock exchange says it is investigating a trading services issue. partition three is still operating as normal, but 51 minutes into the session, there is still nothing going on in terms of german shares trading. you can see at the bottom of the screen, the lse is going to u.k.e the market at 9:15 time, 10:15 here on the continent, in terms of what is going on with the ftse. next, we will bring you the stock movers that are moving, including imcd. the chemicals maker is sloughing after reporting first half earnings. this is bloomberg. ♪ to "bloombergback markets." this is the european open. we are almost an hour into the trading se

lisa: matt toms, luke hickmore, and matt toms is with us. when is your take on negative yields and the attractiveness? do you take a signal that reaching peak negative yields from the german bondreaching pes from the german bond auction? >> i don't think we are, bearing in mind september ecb, we are looking for a 20 basis point cut. that will take us to a 60 negative dpo rate. getting into a 70, 80, 90 number could be quite easy from here. of people areot buying these assets for capital appreciation and direct appreciation in there for leo's. if you are u.k. investor buying assets, you get a positive pickup from the foreign exchanges. still plenty of demand around. we will get a wave of new issuance from corporate's in a couple of weeks. it will get taken down very well. t, what is your perspective when we look at the incredible amount of negative yielding debt out there? are you finding it attractive, going into those areas with negative yield? do you view this as a bubble? how do you reconcile this with the history books? matt: if you need

matt: good morning. i'm looking at the euro in pounds this morning as some for fair for -- repair for european vacations. we are almost at the highest level we have seen since the financial crisis. that -- this goes back to 1975, quite a long ways. this is 2008. this is the highest point on the chart and we are getting back up there is my point. watch that closely. looking red, but not as bad when you look at the green we saw yesterday. klos -- across equity markets. the cac was at more than 2%. a loss,res pointing to but nothing compared to the gains yesterday. what do you see on the gmm? anna: volatility seems to be back. overnight in the asian session, we see very risk on -- risk off signs as a result of that huawei news. the white house holding back on approvals. that is leading to risk-off moves. in the asian equity session in general, higher on the asia-pacific, so that is one reason to have oil prices remaining quite resilient. we have weaker iron ore prices. weakness coming through. aussie bonds

att/, met --- m -- matt? matt: a former top fed official, in fact, the vice chair until last year, suggested the central bank should reject interest rate thwart donaldto trump's reelection bid. , he saysed policymakers should not quote bailout and administration the keeps making bad choices on that keeps making bad choices on trade and an argument they should get involved in the election. in response, if that spokeswoman said political considerations play absolutely no role in monetary policy. don't look behind the curtain. joining us is our executive editor for economics, simon kennedy. it seems to me this is kind of on something that even politicians have suspected for decades. when you have got someone who works for nine years in the fed and just spent a weekend in the discussions will central bankers around the world at jackson hole saying it is time to use monetary policy for political purposes. what do you think? simon: i would push back slightly. he is independent of the fed now, a point they want to n

matt: thank you. boyng up, italy's beach launches his bid to become a country's next prime minister from the seaside. we will hear exclusively from the league leader on his election plans next. this is bloomberg. ♪ ♪ nejra: this is "bloomberg: daybreak europe." matt: let's check in on the markets in asia this morning. juliette saly is standing by in singapore. we have nine markets close in asia today, including japan, but we have been watching strong movement and the japanese yen, higher against the dollar or a fourth session in a row, pre-much on haven demand as we heard the commentary from president trump that perhaps the next round with stocks -- of talks with china might not go ahead. also the iron or and gold space is affecting the fx 200, having a big drop in singapore and morgan stanley saying the flight to gold stocks has been overdone. 300 looking good in late trading china. the pboc setting the yuan six sayer, and most analysts this shows that authorities are keen to make sure this is a

matt ? -- matt -- matt? matt: u.s. futures dropped as investors remain cautious in the face of trade tensions. joining us now is the head of fundamental strategy at ubs. let me first ask you, with regard to the escalating trade tensions, there is no end in sight -- it does not appear there will be an easy fix to the broken relationship between the u.s. and china -- are we at an inflection point for markets right now? >> you say that and that is absolutely fair and true and that obviously creates a number of ripple effects for markets. at the same time, we are at this point where it is not cost-less for other side to just go all in and start pushing ahead with the conflict. you have seen signs of definite escalation. equally, the chinese policy action with the currency has shown that these paths are not exponential. in this kind of a set up, you need to be very aware that you don't chase risk down. you find ways of trading this tactically. come of theto that most clear implication from all of this is that to caution --

matt: i am matt miller in berlin. shares of general electric tumble the most since 2008 after a prominent financial examiner working with a short seller has accused the company of fraud. raised concerns over bernie madoff. ge is increasing reserves and immediately saying the company is hiding a loss of more then $9 billion on its hughes asn baker's well. nejra: the claims have been called market manipulation plain and simple. he added that he wrote a paper but never talked to company officials goes to show that he is not interested in accurate financial analysis. stanley said he purchased ge shares on thursday. the idea that they are engaging in a intentional fraud is ridiculous. this is one of the most read stories on the bloomberg and it is interesting particularly given ge's history and the challenges up until now the company has been facing. matt: the history of ge is murky. notable murky financials. taking part in bringing out bernie made off. but so many big names are purchasing shares here are not just dropped

anna, matt? matt: thanks very much. up next, an olive branch to tehran. donald trump floats a meeting with president rouhani. are we on course for another north korea moment? we will discuss next. remember, bloomberg radio is live on your mobile device, anywhere in the world, or on dab digital if you are in the london area. this is bloomberg. ♪ ♪ to "thelcome back european open." 16 minutes until the start of the european trading, and things look mixed. some catch up to do after yesterday. it is expected to be a little weaker, factoring in some friday losses on wall street, and yesterday's moves we saw at the start of european trading day, which were negative. elsewhere, more positive, cac 40, flat to positive. donald trump could be about to change his position dramatically on iran, making his most expensive offer yet to meet with president rouhani, saying he would do so if circumstances were correct. the comments echo trump's initial outreach to north korea, but face-to-face talks with tehran could be much more complicated. joining us is jody schneid

good morning, matt. matt: good morning. less than half an hour away from the start of european trading and it will be a negative session judging by futures. gold surging again back to the highest level we have seen since 2013 as investors seek safe havens. look at the futures trade across europe, a loss of more than 1% in ftse futures. we are dax futures down 1.3%. it looks like it could be a very negative open. what are you seeing on the gmm? anna: a very negative session essentially through the asian markets as china hits back. the chinese currency being allowed to weekend -- weaken through seven. china asking importers not to buy u.s. agricultural products. this is what we are seeing in the markets in the asian markets. you don't see china itself on the gmm, it's not the worst performer today. featuring inna terms of stimulus measures. you see china featuring strongly on the ethics part of the gmm guess we have very as of the chinese currency all showing a seven handle. this is one of the big moves in the fx market, and

matt: good morning. yesterday i was talking to a market guest and i asked if they could put the trade noise aside and run his portfolio. he said, no way. this market is driven by every tweet from donald trump. it looks like he was right. nejra: it is a very interesting question. what a month we have had. what a week. big moves on brexit. the italian coalition. european politics front and center. now we get the latest trade news, which is giving risk assets a little bit of a lift. matt: we see that across stoxx around the world. this after president trump yesterday said the u.s. and china were actually talking. said he hopes he will get a good deal. nonetheless, the chinese decided not to retaliate immediately. asian stocks rising. euro stoxx futures rising as well. i put the japanese here is a little bit of a warning sign ahead of today's trade. you have the bloomberg dollar index up. the dollar is holding at a two-year high. traders are buying yen as a safe haven hedge, even after the bank of japan did

matt: i disagree without. the market will not assume that the fed knows anything more than it does a day or two ahead. a proactive fed helps the market and yield curve, does not instill fear for more than a short-term amount of time. in our opinion, three extra cuts allows the 10-year to steepen, if some of the trade uncertainty goes away. it is hard to see below 1.5 on the 10 year when the inflation expectations have a hard time getting below that level. that would mean a negative real yield on 10. 1.5 is a key level on us for cash and on 10. lisa: it is interesting you say you don't think the market is thinking, what does the fed know what we don't know? certainly, the fed is wondering what the market knows what we don't know. loretta mester telling bloomberg, she may not agree with the signals from the bond market but they cannot be ignored. ms. mester: there is no doubt bond investors have a more pessimistic view of the u.s. economy than perhaps the economists and i do. we have to take a signal from that.

matt: i disagree without. the market will not assume that the fed knows anything more than it does a day or two ahead. a proactive fed helps the market and yield curve does not , instill fear for more than a short-term amount of time. extra cutsion, three allows the 10-year to steepen, if some of the trade uncertainty goes away. it is hard to see below 1.5 on the 10 year when the inflation expectations have a hard time getting below that level. that would mean a negative real yield on 10. 1.5 is a key level on us for cash and on 10. say: it is interesting you you don't think the market is thinking what does the fed know , what we don't know? certainly, the fed is wondering what the market knows what we don't know. loretta mester telling bloomberg, she may not agree with the signals from the bond market but they cannot be ignored. ester: there is no doubt bond investors have a more pessimistic view of the u.s. economy than perhaps the economists and i do. we have to take a signal from that. we cannot just ignor

this is bloomberg. ♪ matt: "bloomberg daybreak: europe," i'm matt miller in berlin. nejra: i'm nejra cehic in berlin. estimate wasr net 929, so a bead on second-quarter net for socgen. second-quarter revenue 6.8 billion euros, estimate 6.24. a beat on the top and bottom line and the banks, strengthening its cet1 ratio to a target of 12%, ahead of schedule. the increase might alleviate concerns among analysts who have suggested the bank may need to raise capital and basically the boost of the bank's capital the outperformance of most trading suggests the restructuring is starting to take shape. societe generale ceo frederic oudea spoke exclusively with bloomberg in paris. frederic: we are posting this updating our and projector re-taking into account 2019-2020.io in cash when you look at the figures, there is no reason to cut the dividend. >> is this sustainable beyond 2020? frederic: yes, because we are able to absorb the capital impact. it is the same amount we have communicated to two years ago. we are confident to be able to do that with this policy. revenues havi

matt: thank you very much. annmarie hordern, you are looking at the dramatic risk of reaction to the global markets. marie: the selloff is severe and broad it. hong kong's hang seng is down more than 2%. really see here how the moves have been so dramatic. in foreign exchange, the currencies are down. bonds -- all green. a rally in bonds. asia yields coming down. australian five-year and japanese five-year. let thedities, do not fool box on brent crude you. yesterday, oil was hammered, the worst in four years. a concern over oversupply for next year. yen -- this morning, this is where people are going for safety. the yen is acting as a haven. markets have been severely hit this morning. matt: thank you for that. annmarie hordern in london. and our reporter out of mumbai. let us get to the bloomberg first word news and for that we go to debra mao in hong kong. debra: an escalation in the u.s.-china trade war, president trump announcing another 10% tariff on $300 billion worth of chinese goods starting september

i'm anna edwards alongside matt miller. matt: today the markets say, this is not over. asian stocks fall along with u.s. equity futures. the cash trade is less than 30 minutes away. anna: no second thoughts. the white house says president trump's only regret is not raising tariffs higher. amid calls for calm escalation. pricing in more pain. stocks take a hit across the world. 10 year treasury yields fall to the lowest since 2016. in violent weekend in hong kong seeing equities on a slide the most this year. watch for luxury stocks at the european open. matt: thank goodness you are back. so good to see you, even if it is via satellite. pictureing at a 30 day of treasury yields. you can see starting on friday when the trade war was escalating, the chinese put tariffs on 75 billion dollars worth of goods and donald trump came back with more. we saw investors run to treasuries, buying the paper and pushing the yield down. far away from the one spot 31 eight, which is the all-time low. take a look at futures. you are not trading in great britain. you have a bank holiday for

matt: tough times ahead. rbs awards a special dividend but warns it is unlikely to meet profitability goals. >> because of the whole uncertainty in the rate curve. that is the driver of the 12%. of one.us, a majority leads -- boris johnson's is cut to a thin margin. is his brexit strategy under threat? good morning, and welcome to "bloomberg markets." this is the european open. i am at miller in berlin alongside anna edwards in london. normally, we check the individual movers, but we have put up the map of european equities as a whole. it seems the individual stock story is being overwritten by the broad tensions around trade. u.s. saying they will put further tariffs on and the chinese are saying they will retaliate. the destruction that is having on the european equities space. interestingly, it is not the periphery that falls furthest at this time. the ibex and the portuguese market, all of these down by more than 1%, but not as much as we see in london. -- the cacund falling by 4.2%. it is not just the hi

matt? matt: thanks very much for that. the u.k. is planning to suspend parliament until mid october, according to the bbc, which reports the government will ask the queen to agree as soon as today. the pound is falling on the news. joining us now is alice lilly, senior researcher at the institute for government, a u.k. think tank aiming to improve government effectiveness. still with us is kamal sharma from bank of america-merrill lynch. alice, let me start with you. prorogue, what does that mean? basically what it means is that parliament takes a bit of a break between each session, and then a new session of parliament, you have the queen's speech to kick off the session. what is obviously very unusual about this is that timing. we are actually overdue for a queen's speech. we have not had one for a couple of years. the fact that this looks like this will happen just a couple of weeks before the eu means --t it looks very much before the u.k. is set to leave the eu means that looks very much harder for -- to set a no deal. it will

joining us is matt. i make point to president trump's tweets for thanking the fed for doing a big nothing and saying it is unclear who the u.s.'s bigger enemy is, jerome powell or chairman xi. very strange tweet. atmagine that's a topic jackson hole people are talking about. the president's influence on members of the fed. is becoming an issue? matt: i think that will be a topic. everyone was used to the fact that president trump had been tweeting about the fed almost every day complaining that interest rates are not lower. this rhetoric out of these most recent tweets is definitely stepping that up in a way that will be concerning for a lot of people here with the personal attacks. if you look at fed funds futures, they rallied quite a bit after jay powell's speech pushing interest rates down. it was perceived as dovish. they are rallying harder now after the tweets from the president. certainly interest rates are going down today. vonnie: we are getting another line for the president. i will respond to

>> again, matt is okay, dad is okay. that's some -- i'm saying dad is okay because i want to laugh at something. no, no, he's okay. that was definitely not grandma. >> grandma and the wolf? that's what you're saying? "little red riding hood"? >> not by the hair of my chinny chin chin. you're not getting me today. how do you fight off a wolf? >> that is true. when he's protecting his family. but i mean -- taking on a wolf. >> that's a scary situation. >> thankfully he is okay. very scary. i'll stick to glamping. even though i don't do that. >> she doesn't even do that. >> no. >>> so you guys, listen to this one. a new survey about underwear is something for "that's nasty" file. >> that's nasty. nearly half of americans say they don't change their drawers -- who put that in the prompter? do they know i'm southern so we say drawers down there? they don't change their drawers for two days or more. an informal poll by clothingmaker tommy john found 44% of respondents had worn the same pair of underwear for two days. more than

anna, matt? matt: thanks very much. selina wang in beijing. ray dalio's flagship fund is missing out on the rebound that some macro managers are enjoying. the alpha fund at bridgewater associates has tumbled 6% through august. others fared even worse. this as the msci world index was up 13% in the same time period. bloomberg the losses were fueled by bearish wagers on global interest rates. joining us is a bloomberg opinion writer. it's not just ray dalio, some really big names have made wrong way that and lost out this year. >> yeah, but bridgewater is one of the absolute biggest. that he orsting alpha fund has taken such a large bet and got it so wrong -- has takenlpha fund such a large bet and got it so wrong. almost a record short out there. so this is fighting against the tide. this is a story about u.s. treasury particularly, but bonds in europe as well, have been fighting against what most think is an illogical move lower. they have looked at this and gone that this can't be right. the market will right itself, and it hasn't, it has kep

i am matt miller. in hong kong, the 12th straight weekend of protests and violent clashes erupted between police and protesters on sunday evening at police drew their guns and an officer fired a warning shot. dozens were arrested as violence increased, water cannons, tear gas and rubber bullets were used . stephen engle is watching this. let -- lead us through what exactly happened and has this been the worst level in terms of violence? stephen: after a brief respite last weekend when we had demonstrations for 11 consecutive weekends. they were fairly peaceful. we thought maybe this could be the beginning of a dialogue but that ended pretty quickly this weekend as the weather turned hot and extremely rainy. people got a little more frustrated. the protesters really frustrated at the local government says it wants to talk but it is not offering any concessions to their main demand. they are really fighting a political battle. this teargas, now water cannons. now notaid, they are hesitating to pull out t

matt: david, you will stick with us. david owen is the managing director, cee, jefferies international. i want to give you the latest pmi from spain. 48.2 the forecast was for 48. we are tracking european pmi's. .hey do not look so fantastic spanish pmi's at the beginning of the year were well above 50. 56 to kick off the year, and they have fallen steadily down. it looks like this one day euro graph as well. let's get to our top stock stories, 70 minutes into the session. upsident to start on the . guidancehe earnings for france, and they reported twice the growth that analysts expected in the second quarter. this is yesterday after the bell. siemens down 4%, europe's -- they are wearing their automation and energy unit will make it hard to reach their financial goals, really sounding the alarm there. profits came in less than expected. than dutch shell down more 4.5%. natural gas prices hit another big oil major, all fell into the same trap. they missed estimates there, and for shell they are focused on natural gas. i

matt? much.thanks very we have breaking headlines coming across the ticker on basf, the german chemicals company. you are selling its colors and affects the business to a for 985 million euros. the fx and color unit is going to japan's dic corp. let's kick off the show with what is going on in the u.s.. steve mnuchin says issuing altra long u.s. bonds is under very serious consideration. this move could mark a historic revamp of the $16 trillion treasuries market. treasuryerview, the secretary said they would only issue 50 or 100 eurobonds quote if conditions are right, which is good to hear, because it would be bad if they issued them when conditions were wrong. to some, these comments may have been an attempt to drive yields higher, that did not work. joining us as our guest host is the chief economist at behringwerke and the chief investment officer at barclays investment solutions. what do you think about altra long bonds -- ultra-long bonds? i would take advantage of them if i were a g

. >> matt: the tight end swings and misses. >> rich: yep. >> matt: on the backside. didn't get the seal. >> rich: nice job by rasheed green. >> beth: it will be fourth down from just inside the 4. peterman. they'll run butler off the left side. touchdown raiders! >> matt: good call there. >> rich: yep. >> matt: they spread them out, got a light box and they ran butler right up the left side. >> beth: impressive eight-play drive, 55 yards, just over two minutes. and running right off the backside of lester cotton, the fir fist pump. and here comes the 2 to tie it. flags flying. movement up front. >> referee: false start, offense number 76. five-yard penalty. >> beth: tyler. >> matt: had a nice block on the touchdown run. >> beth: branden jacksonively. so the two-point try is from the 7. four-man rush. peterman in trouble. and down he goes! sacked by jackson! >> matt: they only brought four this time. he just got beat off the top edge. jackson was able to win. >> beth: two-point advantage for the seahawks. 1:43 to go. the raiders do finally get the touchdown, can't get

eric: matt, you were here one year ago. i predicted that some of the products had a 30% chance of being approved by the end of this year. you said eric is understating that. it is more than that. i revised down. i also think the sec has pr worries about approving. i'm more 15%. where are you now by the end of this year, which would include that october decision? matt: i would love to give you an exact percentage, but my lawyer is sitting on my shoulder would not let me do that. , a lot has happened in the last year. hunter mentioned this but things that happen that are important. jane street has come into the market. susquehanna has come into the market. spreads have come in. now custodians have huge insurance policies from lloyd's of london. a lot of concern that the sec has lined up in january 2018 when they articulated why bitcoin etf's will need water review have been solved, not by hunter and i and the rest of the team at bitwise but just by the market maturing. 15%, i guess we will see. 15%, i guess we will see. [laug

they were celebrating matt's daughter gia's 11th birthday. >> yes, matt also revealed some new ink featuring all of his daughters' names. "alexia, isabella, gia and stella" as well as wife lucy's. >>> speaking of cool dads, backstreet boy brian litrell is definitely one. >> yes, he is. his boy baylee is actually opening up for bsb on tour, and i caught up exclusively with the proud father and son backstage. what's your favorite song? >> i usually say "larger than life." that's definitely my favorite because somebody wrote on that and that was a great one. ♪ larger than life >> okay, so just how did 16-year-old baylee get this gig on the backstreet boys' "dna world tour"? his proud dad played some of his music for his boy band mates. ♪ everything didn't go quite >> they were like, who's that i was like that's my son baylee. >> "e.t.'s" watched brian's minime grow up. ♪ i'm so into you darling if you want me to ♪ >> what advice did you give him about the frenzy of being a cute guy? >> baylee just went through a pretty serious breakup, and that's a tough one. we've translated that into

i am matt miller in berlin. nejra: the global economy is heading toward a recession which assets will outperform. you can join the debate and reach out to us. ib+ tvgo on your bloomberg. corn plunged by the exchange limit of 6% yesterday after the u.s. agricultural department said american farmers planted more than estimated. futures capped their worst day in six years as the agency said u.s. yields and production would be bigger than forecast. cathay pacific tumbled to a tenure low yesterday on the news of hong kong ongoing process. the airline extended fights after the carrier canceled more flights. hit out last week after employees joined anti-beijing protests in hong kong. 40,000 restaurants is not enough for some. yum! brands is looking to grow even more. the owner of kfc and taco bell is looking at partnerships and investments to be even adding any restaurant chain, that is according to incoming chief executive david gibbs. the company announced he will take over the top job generate first. cvs and viacom

thank you, matt schlapp. social media bias against conservatives is also on the rise and getting out of control. what can be done? charlie kirk on that next. [♪] judge jeanine: the gop this week went to war with twitter over mitch mcconnell's reelection campaign account being frozen. it's now been reactivated. but twitter froze the team mitch account after they posted videos of protesters just outside his home that included violent threats against the senator. joining me, charlie kirk. let's talk about social media and what's going on specifically with mitch mcconnell's house. >> this is extraordinary. senator mitch mcconnell had a couple visitors that came to his private residence. they were potentially violent protesters wishing harm and some wishing death upon him. they were using very colorful language. senator mcconnell's team captured that on video and put that video on his personal twitter account. guess who got banned? senator mcconnell got band. he appealed the decision and twitter doubled down. af

matt? matt: thanks so much. japan said it is going to cut its purchases of benchmark bond this as yields near record lows. we are seeing the september 5-10 year jgb auction size reduced. been 300-650,000,000,000. so they are lowering the buying range under the september plan. let's kick off with the latest on the trade war. the first of september, new u.s. import tariffs on thousands of chinese goods take effect. china has said it won't immediately retaliate. meanwhile, the trade war is hitting american companies. abercrombie & fitch is racing to reduce its dependence on chinese suppliers, saying the trade war will hurt profits. joining us is the founder and cio of latitude investment management. , let me get your take on where we stand. yesterday, trump said the u.s. is already talking to china. now, we hear the chinese will not immediately retaliate. are we getting closer to a cease-fire? freddie: it is so hard to tell. this is clearly part of trump's tactics to confuse us. it does seem to me it's dragging on,

but what did matt just get tattooed on his arm. >>> and "e.t.'s" exclusive with a back street boy. >>> and inside an intense beauty treatment. >>> closed captioning provided by -- oh thaphenomenal!, that's unfair. that's so unfair. c'mon jay-bo. let's go. let's go. woahh! try my $4.99 bbq bacon double cheeseburger combo. only at jack in the box. ♪ try my $4.99 barbeque bacon double cheeseburger combo. ♪ >>> matt damon and the bonus hemsworth -- that's chris and liam's older brother luke, riding in the front car of this incredicoaster at disneyland. they werdae cehter gia's 11th b. >> yes, matt also revealed some new ink featuring all of his daughters' names. "alexia, isabella, gia and stella" as well as wife lucy's. >>> speaking of cool dads, backstreet boy brian litrell is definitely one. >> yes, he is. his boy baylee is actually opening up for bsb on tour, and i caught up exclusively with the proud father and son backstage. what's your favorite song? >> i usually say "larger than life." that's definitely my favorite because somebody wrote o

. >>> plus, we'll tell you why matt lawer is smiling wh his ex. >>> and liam looking good post miley. >> i'm not off the, hoo. i feel like i'm running. >>> then, britney doesn't look like this anymore. her hooking new do. >>> as matthew mcconaughey turns real life professor. sign me up. >> all right, all right, all right. >>> this is "entertainment tonight." >>> welcome, everyone to new york city. brad pitt is just a pond jump away in venice. in full-on movie star mode. but that is not what has everyone buzzing about brad today. did he just shade angelina jolie with his new ink? that's brad mobbed today in venice. the star posed for selfies, waved to fans and made casual look cool. denim and a new t. look closely on brad's right bicep. the 35-year-old got a new tattoo next to the one he got with ang lee. it's of an image of a tall man standing over his shadow. could be a reference to brad's role in "the curious case of benjamin button." for his new film "ad astra" brad heads to outer space. who helped him prepare? his pal george clooney. his film gravity premiered at venice in 2014. >