francine: we will speak to our stephen engle. john flint is stepping down as chief executive of hsbc, unrelated to hong kong. 's departure comes after just 18 months in the top job -- his departure comes after just 18 months in the top job. the stock trading a little bit lower in london trade this morning. drawing us now is our european -- joining us now is our european managing editor for finance. what does this mean for hsbc? reporter: one of the things that will be key will be who the successor is at hsbc. has reached within its own ranks in the past. flint started as a trainee at hsbc in a decades long career. the question is whether the bank will now be reaching outside its internal ranks to find someone who can ex -- you can execute the vision the board has for the company. francine: will it be someone who has more of an angle on the u.s.? what are you hearing? could it be a big banker to focus on their operations there? big andbc has a navigatingfocus for a complex asian market, especially given rising tensions with the u.

stephen: i'm stephen engle at the hong kong airport. demonstrators are being worn they have crossed the line. paul: markets rally as president trump delays additional tariffs on china. consumer stocks lead the way with apple surging 4%. from huawei.nd income fell less than expected. shery: let's get you started with the quick check of the market close. a risk on that with the s&p 500 rallying 1.5 percent. every sector was in the green. investors had a lot to digest, from positive trade headlines in hong kong and argentina, not to mention a strong economic number. wen it comes to the s&p 500, saw the makers and sellers of toys and clothing and electronics really surge after president trump delayed that extra 10% tariff on additional chinese goods. the nasdaq also gaining almost 2% and the dow rallying more than 370 points. the trade headlines came a little bit after we got those ,urprisingly strong cpi numbers to avert the argument that we could continue to see the fed cutting rates. futures at the moment unchanged, but let's see how the

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 their sidearm and six officers pulled out their handguns. one of them who felt in threat of his life actually fired into the sky. police were here at the headquarters for hong kong. they defendant the police action saying it was necessary and reasonable. it is a very tense situation with no end in sight. much --ank you's

stephen engle is at the airport for us. what is happening now? the airport says things are getting back to normal, but i guess there is something of a backlog. stephen: oh yeah. there is a huge backlog. a lot of flights canceled yesterday. plusy pacific alone, 210 flights canceled yesterday. it was chaos in arrival hall b. was jammed with thousands of protesters. you can see on the arrival board many flights are still delayed. cathay pacific alone is saying they are likely not to see normal operations until tomorrow at the earliest. that would be wednesday. then thursday as well, 14th and 15th of august, as they get passengers rescheduled. scheduled to fly out at 7:00 p.m. and was rescheduled and that was canceled. she is now on an 11:00 flight out of macau. people have to re-juggle their itineraries after yesterday's huge disruption. this is the scene. estimated 10,000 protesters were here yesterday. it is now less than 100. protest leaders -- organizers i should say, are calling for protesters to show up later this afternoon to continue what wo

david: stephen engle's and the team at the airport. is thethe concerns rivals in the city and the main gate into hong kong is the airport among other ways of entry. have a look at the bloomberg chart. it shows the number of monthly tourist visitors from hong kong and takes you all the way back to 1990. you are looking at the total number. the visitors from the mainland is blue. the red was the dip, and the yellow is the ratio of mainland visitors to total visitors, which has roughly been stopped at about 80% for the last five or six years. what we have heard from the downsm authority is july, 26% into the end of july and you imagine august might be a little low. joining us on set and to broaden the conversation, a unique perspective, carl chun out of robert walters hong kong. he oversees financial services. good morning. you bring a unique perspective. you are on the front line of people moving out and then. all of these things happening outside have had an impact on business. >> we do see a couple of isolated cases. they are actually

let's bring in our chief north asia correspondent stephen engle. you have to wonder if he was under pressure or worrying about his wealth dissipating. stephen: three or four days ago when i was at the airport, i went on a bit of a rant on camera. the first real property tycoon to come out and say something about this protest. are these others? where are they? when the umbrella movement was on, a lot of them made statements. the city listens to these tycoons, especially one whose headquarters are right behind me in hong kong center. i guess they were listening to me. i am being facetious, of course. [laughter] but they came out with a full-page advertisement in the newspaper. saying no tot is violence. i'm speaking mandarin. love china, love hong kong. it is a plea to have a peaceful solution to this crisis. there is a lot of speculation as to why these tycoons did not come out. it took more than two months to make any sort of comment. this extradition bill is very different than all past crises in hong kong. -- sars a common enemy was a common enem

rishaad: stephen engle has been reporting for us and is this a crackdown? >> it is an interesting development when you have joshua wong, not necessarily a figurehead of this movement but a key member of the umbrella movement five years ago, which this rally tomorrow was supposed to be a commemoration of the fifth anniversary of china's controversial introduction of political reform that would have, according to democrats, limited pro-democracy movement in hong kong. wong, allegedly arrested according to his movement saying he was on the way to a subs -- subway station, a private car -- that is not joshua wong. then he was taken to the police apparently on three charges. what you are seeing here is another leader. let's get this straight, we have joshua wong arrested allegedly, has been detained, another activist as well as another activist agnes chau. that other leader was the leader of the civil rights front which called for this rally yesterday. it also called for large rallies that led to anywhere between one to 2 million people marching on the streets.

let's cross over to hong kong and stephen engle's. we just had a response from china. tell us more about what they said. >> do not mistake this smaller protest today for being a lull. there is a lot of tension builds up. the big question is whether the protesters will come out in full forces like yesterday and the day before. six days in a row. the rhetoric is being amped up. we were here in the thick of it yesterday. protesters swelled into the thousands and left there contained area marked by yellow paint, and they went upstairs to disturb the departure lounge. thousands of protesters in the re. this is china's response in the last hour. china strongly condemns what it says were almost terrorism behavior. they also called them writers and said they must be punished -- they, that is from also called them rioters. fromer statement we got that theon office says protesters at the airport have behaved like terrorists. this is significant because if , thatad the tea leaves could be justification for going beyond the normal scope of activity by the pla. to that donald trump

let's get it to stephen engle. he was at the airport yesterday. he is at the business district to tell us why he is there. in front ofare here pacific place mall because the economy is hurting. above pacific place mall is the 45% owned parents of cathay pacific. and there is jw marriott and shopping. different parts of the economy , hurt by this and the trade war. we are seeing it in the economy of course. you cover the markets closely. we can bring up statistics we are seeing already as we head already more than two months of protests in this city here. gdp is under threat, possible recession according to a number of economists. ubs is saying right now it looks like it could be 0% for the full year in 2019. that is probably an optimistic outlook. stock market is down 12% since july 2. ipo numbers are starting to dwindle. 2 billion market gap has been wiped off. at an earnings conference yesterday the ceo of the hong kong exchange, we asked about how this would get resolved. this is what he had to say -- >> this is not helpful as a financial cente

i want to thank stephen engle, and you've gotten news. david: goldman sachs, one line crossing the terminal. stake applied for a 51% in a china joint venture. not a lot of details yet but the headline speaks for itself. rishaad: joins a lot of others including ubs. there you have it. goldman sachs is applying for the 51% stake in china. let's move to new york with the first word news courtesy of su keenan. su: the latest on brexit. the european union has rebuffed force johnson's demand for new talks on a break to deal, saying the irish backstop is a vital part of the current agreement. intended tot is prevent heart border with ireland but the u.k. says it leaves brussels holding all the cards. the two sides remain deadlocked with weeks to go until the split which johnson insists will happen with or without a deal. government may delay two key announcements in the latest sign it is considering a snap election. sources tell us the bank of england governor mark carney may not be named until after brexit. while there is speculation the budget

chiefgood advice from north asia correspondent stephen engle. thanks for joining us. alibaba surged in new york after posting better-than-expected earnings and revenue and that is to spite economic and geopolitical headwinds. quarterly revenue rose 42% on 15 billion dollars. our china correspondent selina wang has a breakdown of the numbers. alibaba seems to be defying the slowdown in china. 's earnings just reflect the strength of online sales in china despite these economic headwinds and trade war. chinese commerce sales jumped 40%, almost twice the rate of chinese overall retail industry sales. boosted bybaba was sales promotions as well as better algorithms to target users with, but on the other hand, they are also benefiting from long-term structural changes in china's economy that should boost alibaba's sails in the long run. the first is that in these larger tier one cities, consumers are going for a consumption upgrade, meaning they want more higher-quality goods and more of them, and in smaller lower tier cities, we are seeing fast digitization, urbanization,

paul: stephen engle, thanks for joining us. let's get a quick check of the business flash headlines. ams is offering more than $4 billion in the second attempt to acquire its struggling german rival. the offer is worth 38 euros a share. became a takeover target after a series of profit warnings. shery: this is bloomberg. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. paul: 8:30 a.m. monday morning here in sydney, the market open 90 minutes away. this is following a week in which the asx

stephen engle reporting from hong kong. now let's turn to scott in new york. this crisis, this trade war between the united states and china. we see it reflected in the markets pretty profoundly. scott: the markets had to render the verdict they did not like the direction this was going. we did see a ratcheting up of tensions in the last 24 hours. we thought it ratcheted up thursday and friday. china letting its currency weaken to below seven on the dollar, which is a level a lot of people consider a key level and also with bloomberg reporting china is not going to buy american crops, very targeted action if confirmed. reportingdavid: china has made r move, although they say not so much. president trump said are you paying attention, federal reserve? you should be doing something similar. scott: we have heard this kind of thing about trump and the fed . it can be a complicated issue because trump once the fed to ease policy, which he thinks will counter the weaker chinese currency. at the same time, it is the treasury department that controls the nations dolla

paul: all right, chief north asia correspondent stephen engle, thank you. oil searches looking to resolve in proper new guinea. we will hear from the managing director next. this is bloomberg. ♪ shery: i am shery ahn in new york. paul: i'm paul allen. you are watching daybreak australia. forsearch is hoping progress in its project, which has been in limbo since the new government came to power in proper new guinea. risk of delays and political uncertainty. managing director peter botten told us when he sees a possible resolution. peter: we are engaging in discussions now. i think those discussions generally made progress. i think everybody knows where everybody is on this. there are further discussions later this week. paul: we have seen a very weak oil price recently. is that making negotiations with buyers a little more difficult? peter: it creates a dynamic. when you are discussing lng contracts, generally speaking, they are over a number of years. five, 10, maybe even 15 years, this is a long-term relationship. buyers are taking a long-term view. clea

stephen engle is with us. on what happened and what was a threat. stephen: that's right. that respite if you will from violence did not last very long. basically just a couple weeks. the previous weekend was fairly peaceful. even friday night of this weekend was pretty peaceful with that human chain across hong kong, people linking hands and solidarity to hopefully get their message to the hong kong government to meet their many demands. but things started getting more frustrating for both sides friday and when the weather turned really foul yesterday, the mood went south as well. sixavid just mentioned, different officers pulled their sidearms and pointed live guns a t protesters. one officer did discharge his sidearm into the air. now, we did have an early morning press conference with a super soon your intendant from the police -- super senior intendant from the police. she said it was justified. but it was another escalation in this tense sand and -- standoff which doesn't seem to have any solution. carrie lam is suggesting talks. stop being violent, then we can have

asiaore, bloomberg's chief correspondent stephen engle joins us. it looks like there were a bigger and different group of people taking part, and different tactics as well. , anden: that's right really bringing a city of 7 million plus to its knees. one, they called for a general strike. strike at work, strike at school, strike at commerce or the markets. all the while, keep the pressure on chief executive carrie lam to withdraw that controversial extradition bill, which kind of kicked off all of these protests because some nine weeks ago. as you mentioned, the flights have been canceled. the subway system has been interrupted. cases of civic disobedience, is what they have been calling for. on the other hand, you have the hard-core protesters just beyond me here on the other side of the central government offices. earlier this evening and afternoon, you had pitched battles between hard-core protesters and police. there was tear gas fired. we could hear it, pop, pop, pop, being fired. there were said to also be rubber bullets, as well. protesters m

we will have much more from stephen engle. up next, the government documents predict post-brexit shortages. we will discuss boris johnson next. this is bloomberg. ♪ calm.ne: keeping the white house pushes back on the idea the u.s. is heading toward a recession. derek ludlow says trade talks have been positive. german finance minister says the country could spend an extra 50 million euros to sustain the downturn. marching in the rain. organizers say nearly 2 million people take to the streets in peaceful protest in hong kong. good morning, everyone. this is "bloomberg surveillance." i am francine lacqua. the iranian oil tanker detained last month has left gibraltar and is heading toward greece. swan has been released by the it is territory after gibraltar rejected. what do we know about the vessel? >> we know the vessel has left gibraltar and is headed greece -- headed toward greece. you can see the vessel is off the coast and at the moment it is headed toward greece. the destination can change multiple times in any single jo

stephen engle is watching this. run us through what happened. stephen: it was a brief rest respit peaceful -- brief e of peaceful protests. last weekend, there were no arrests. this weekend, a very different story. starting on saturday and one district, that escalating on sunday as the rain really came moods.d soured people's there's a lot of frustration on both sides whether it is the police or the hard-line protesters. there is no plan for resolution. there are calls for dialogue, but dialogue between whom? there has been no ground given by the government to these protesters' demands. that is where we are, a stalemate that escalated with a confrontation with live firearms last night. one officer actually fired his sidearm into the air. this, as many of the protesters charged the police with steel , molotov cocktails. 15 police officers were injured. arrested overwere the weekend, including a 12-year-old. it is like groundhog day for me on a monday, recapping a similar thing that seems to get worse and worse each weekend because there is no pla

shery: stephen engle, thank you so much. our chief asia north correspondent from the streets of hong kong. our next guest knows better the most challenges facing the hong kong police. ceo of corporate risk consultancy. thes also a former head of royal hong kong police criminal intelligence bureau. great to have you with us. thank you so much for your time. do you see any chance of a resolution here between the protesters and the hong kong government in beijing? government isthe not inclined to negotiate at this point or to enter into discussions. i disagree slightly with your previous presenter in that i think the reason things went so violent last night is that the numbers are down, which makes demonstrators feel they need to be more active, more proactive, and more violent. what happened yesterday, there were movements around town, rail race stations -- railway stations. i think in the longer term, the movement -- the government's policy which i do not approve of, but the policy of sitting on their hands and hiding behind

stephen engle joins us. is there amain, but window of opportunity opening up? stephen: that's what people are saying, there is a critical six-week period between now and the 70th anniversary of the founding of the people's republic of china. there will be a big military parade in a chance for china to celebrate. what they don't want is unrest, especially violent unrest in hong kong, to spoil the party. , pro-, butlishment moderate lawmaker in hong kong has suggested on bloomberg television yesterday that this is a golden window for both sides. in particular, for the government of carrie lam, who did offer a bit of an all of brent yesterday, saying she will set up an independent, or facility, if you will, a way to hear from all walks of life in society, the complaints. she will set up a platform for dialogue, basically, and investigate complaints against the police. i might add, shortly after she made those comments, the main group leading the protests rejected that offer. they still want these key demands. chinese -- when asked whether this was enough of an all

stephen engle -- let's cross to hong kong and stephen engle. a gloomy prognosis for the city. stephen: that's right. that is the bold -- limit carrie lam yo use -- the bold steps. -- that is the language carrie lam used -- the bold steps. whos mostly going to those have been hit hard by the drop in retail sales and small to medium-sized enterprises have been hit. it increases personal income that is tax-free. extra payment to social security recipients. subsidies to primary and secondary students. electricity surcharge. subsidy, i should say, worth $260 u.s. that is for citizens alone. gdp numbers are out today, likely to confirm the numbers of 0.6% growth. weo quarter-over-quarter, are expecting 0.2% contraction. we have not had year-over-year contractions the third quarter of 2009 in the depths of the global financial crisis so this is hurting the hong kong economy. interestingly, paul chan did not want to link the protests to the stimulus package. i will get into the reasons why but let's hear from him in just a second. or right now. whethere might ask these measures are in

we will be joined with stephen engle later this morning. nejra: welcome to "bloomberg daybreak: europe." concerns around trade tensions, let's get to glencore numbers. 5.94.the estimate was glencore.miss for first-half net debt stands at 16.31 billion. these are some of the headlines from glencore. the first half adjusted ebit softer than market expectations. manus: when it comes to a return on equity, it looks like they .atted it out of the park 20% return on equity, operating profit of $1 billion. , they do likeit the billion number in this company. general deliver their numbers in a few moments. first-half profit after tax, $874 million. german industrial production, good, bad, or indifferent? nejra: it is worse than expected . yesterday we got factory orders, but industrial production year on year dropped, the exploitation was a drop of 3.1%. 1.5%. a decline of joining us for the furniture onset withel wilson us here in london. thank you for joining us. manus broke some headlines. i am looking at one that says you are prepared for a ful

stephen engle joining us with the latest on hong kong. coming, jp morgan says the recessionary risk trigger needed to drive treasury yields toward zero has gone off sooner than expected. we will discuss that next. traveling to work, tune into bloomberg radio on your mobile device you can access it anywhere in the world. if you are in the city, tune in on dab digital radio in the london area. ♪ nejra: this is "bloomberg daybreak: europe." matt: let's check on the markets in asia. surprise, most markets are lower. we see a turnaround in u.s. futures and chinese authorities added a bit of liquidity to the system. the nikkei started the day down by over 2%, currently down 1.3%. you have the asx 200, one of the worst performers with a big drop in energy shares dragging on the index. we had employment numbers out of australia which were better-than-expected area also a lot of money going into australian bonds today. the yield on the tenure falling below 1% to a record. the csi 300 faring better than some in the region. a little bit of upside

lam there.e stephen engle joins us for the latest from hong kong. we have been witnessing fairly violent clashes once again between protesters and police. >> that's right. some of the more violent clashes have been up in the north in areas new the border. right now, it is a big crowd gathering in china, in fact, all around the central government offices, which houses the legislative council, and mostly students, but i can see people of all ages now in black shirts. i cannot get a good sense of how many, but it is standing room iny in the main part of town front of the admiralty subway station. i'm looking down below hard court road, which is a 10-lane highway that bifurcate's the central part of hong kong, and it is filling up fast with black clad protesters, and they are here supposedly for a peaceful protest, but many of them are not happy with what we just heard from chief executive carrie lam, remaining quite defiant this morning. -- i how is all of this mean, we could certainly expect canceled flights to hurt the economy. i would assume that fe

stephen engle joining us out of hong kong. coming up, signs of life in the london housing market battered by brexit asking prices. they show their first annual increase in two years. we will dig into the moves with the court-martial director. this is bloomberg. ♪ welcome back to "bloomberg markets." this is the european open on a day when we are seeing markets rise substantially to kick off the week. ftse up 0.9%, 62 points. you see the dax gaining even more right now, 107 points. in thethe continent and u.k., we see decent gains. i want to focus in on the city of london. this month, asking prices for london homes showed their first annual increase since 2017. the latest report shows new seller prices are up 1.3% from last year. a shortage of supplies are helping underpin prices with a number of new sellers down almost 11%. joining us is the commercial director at right moves, here to discuss the august house price index. that youoes this mean think prices have bottomed out in terms of london, in terms of the brexit concerns

stephen engle is at police headquarters. what's the latest? hen: i was at police headquarters most of the morning where we are expecting another protest later this evening. it's hard to tell exactly because the protesters have taken on a flash mob approach to the road tests with a don't necessarily announce where they will be. they pop up where they feel they will get the most impact and keep police on the chase as they try to crack down more swiftly. the protests have popped up again out at the hong kong international airport where there was a peaceful sit in protest for the last three days on friday, saturday and sunday. it is now monday. they have extended that invitation for another day, a fourth straight day. we are getting reports from our colleagues at the airport and on the hong kong express railing that it is standing room only on ast hong kong express train well as tens of thousands. there is no official number yet. a vastknow it's building, but apparently i have seen the pictures. ofas safely say, thousands lacqua had protesters hav

>> stephen engle joins us now from hong kong's airport. what's the latest on the airport? >> it seems like nobody is backing down, both sides firmly entrenched, even though there was that multiple thousands of protesters at the airport that managed to shut down the airport. they did withdrawal late last night but many have come back. the airport has not been shut down but it is filling up with more protesters, calling for people to come back at 1:00 in the afternoon -- it is now approaching 3:00 in the numbers are increasing. we heard from the airport authority that they have limited train frequency to the airport, to use that as a crowd control measure, but they are vocal and chanting and they are not heeding the warnings that we got from carrie lam this morning. you heard her comment about the threat of falling into the abyss but she also repeated her pledge and said we cannot have dialogue with the protesters until the violence stops. there has not been violence at the airport -- a few skirmishes here and there, but for the most part a peaceful protest. i will reiterate

[laughter] nejra: thank you for joining us, stephen engle. let's get the bloomberg first word news. >> in argentina, s&p global ratings have cut the country's credit rating to selective default after the nations that it would delay payments on more than $100 million of debt. s&p says this constitutes default under their criteria, but since terms for short-term debt, in immediately, s&p will upgrade its rating today. johnson's suspension of parliament will get an early test today. two courts are challenging a ruling on opponents who say the decision is an affront to democracy. while these rulings will give a sense of the legal issues involved, they are unlikely to be the last word. the case may end up in front of the u.k. supreme court. the u.s. could face resistance bonds. ultra long steven mnuchin floated the idea, but it probably will not get the backing of the elite group that advises the treasury secretary, who previously recommended not issuing ultra long bonds. ministers will meet in helsinki to keep the iran nuclear deal alive. officia

nejra: our chief north asia correspondent stephen engle. thank you so much. but skip the first word news -- let's get the first word news. >> argentina's opposition has grabbed some momentum in primaries this weekend. took it 47% toez 32%. that gives them a lead. he might have a trouble overcoming a margin of more than seven. least 32 people have been killed and 16 missing after a typhoon struck china. it struck the -- an eastern coastal province toward shanghai. more than a million people were evacuated as the storm approached. the damage could be over $2 billion. jeffrey epstein was found dead in jail this weekend. the former financier was accused of molestation and sex trafficking. his apparent suicide prompted outrage among those seeking justice for his victims. the deal he was being held as down the target of tubing separate investigations. u.s. attorney general william barr says his death raises serious questions. prime minister boris johnson is being accused of rush spending promises. the institute for fiscal studies said it is a little reckless to com

. >> stephen engle thank you so much forever that joining us the ground of the international airport in hong kong. andcontinued protest there also political incertainty in argentina, both are putting stocks. on u.s. luxury good makers and corn futures tumbling. both are reasons tied to china. didn't see much in terms of positive use that could have market.he >> it was absent economic news and earnings which we'll get week.in the that put greater focus on the signals age which recession maybe looming. bonds following the rest of the are surged here. we did see that push the yield tenure 10 basesnt you points. let's get into the billing movers. that has to do what we're seeing and all crops, strategist say are tied to the conflict. notice american airlines down. the airlines that continue to be hurt because of the grounding of the max jet. shares rebound if they win a leem victory if their fight with the unions. look at the luxury goods makers. lot of the luxury good makers market in china and biggest consumers and across the board. a very big hit. anotherem to have casualty in the tra

stephen engle was there on the ground. hong kong on edge again as protesters take the unrest to a ninth consecutive week and there is no end in sight. they called for a general strike across the entire populace. here, handing out errors -- handing out banners saying to strike at school, work, and commerce. the hardliners took to the street and there were pitched battles in many places around this former british territory. yes, there was confrontation with the police. the police firing multiple they wouldeargas have these pitched battles with police. earlier today, they were behind government, confrontations, but then the protesters moved further east including causeway bay and northpoint. there have been other battles in parts of the territory. this is their strategy, to continue to cause unrest. lam, she had a press conference. first time she had addressed the people of hong kong in two weeks. she said protesters are trying to ruin hong kong. offered many say they no new solutions on how to end this nine week standoff. th

david: stephen engle -- , thank youen engle for updating us. speaking to the former hong kong chief executive secretary. 10:40 watching us in sydney. but signs of future family feuds at the g7. we will break down headlines from europe. this is bloomberg. ♪ ♪ ongoing tensions between the u.s. and china as we see escalation with president trump announcing more tariffs on top of china's retaliatory tariffs. what will be the impact of this latest escalation? >> is very concerning at least to the other members of the g7 that had hopes to convince trump to take a more rules-based approach to engaging something in china. the g7 shares the u.s. concerns about the free market access in , even the role of soe's intellectual property theft but one a different approach from the u.s. and think a generalized escalating trade war is not the way to go about it when the g7 is teetering on the edge of a recession. trumps not appear as if has come any closer to changing his mind on china. if anything he has become more bullish with the idea he may even invoke

shery: thank you so much, stephen engle, our chief north asia correspondent. plenty to come on "daybreak: asia." this is bloomberg. ♪ paul: this is "daybreak: asia." hathawayrkshire increase in -- appears to be increasingly bullish on amazon. warren buffett company boosted its stake by 11%. su keenan has the latest and we know they have a big bet on apple. how does this compare? su: apple remains one of its biggest holdings and amazon is a billion dollars smaller. what we are learning from these snapshot,alling for a a sneak peek into the holdings in these portfolios is that his deputies are increasing the tech --dings and shifting away the way berkshire looks of them. they're filing shows a $1 billion share of stake as again the june 30 filing come a we don't know if they have increased or decreased since then. warren buffett again viewed as the value icon for many hedge fund managers. streety the main investors like to follow this, but also one wall street, close attention is paid to what he is holding. if we take a look at one of the bank ofings, he has a

stephen engle joining us from hong kong. another essay getting wrapped up in the trade war overall is commodities. receiving 7% 1%, last week. bank of america had a note up friday talking about the impacts u.s. tariffs on china could further we can oil demand by 650 -- 650 to 50,000 barrels of oil a day. could be hit by an additional 1.5 million barrels of oil a day. andre joined by bob brown paul sankey. what is your base case? extra tariffs? have been calm about next year's demand, but we have always been low. global forecasts from agencies have been coming down and down, and now we are starting to stare at will we go under a million pounds of demand growth? million -- 7ing $7 million barrels a day of supply growth. the balances have been getting concerning for 2020. the other big issue we always follow that i don't hear often mentioned is the dollar. it is a very simple reverse correlation between the two. essentially 90% of world oil trade is in dollars. if you get a strong dollar, you see lower oil prices. alix: we have

stephen: i'm stephen engle at the hong kong airport. demonstrators are being worn they have crossed the line. paul: markets rally as president trump delays additional tariffs on china. consumer stocks lead the way with apple surging 4%. from huaweiand

stephen engle is following that development. last week we were talking about how protesters had turned peaceful, that the violence stopped but it seems to have returned. the respite did not last long. friday we had a fairly peaceful human train -- human chain. that went off without a hitch. it was quite something. then saturday and sunday last night, quite violent again. six police officers had to draw sidearms. the superintendent defending one officer's decision to actually higher a round into the air because the officer's life was "in great danger." the government is saying these violent acts pushed hong kong to a dangerous edge. another 36 arrests on sunday on top of two dozen saturday, 15 officers according to the hong the,police were injured in if you want to call it a mealy -- malay -- call it a melee. a full an had charged officer with metal pipes and other weapons including bricks and molotov cocktails. wereally friday protests peaceful. saturday and sunday, far from it. what is the latest reaction from beijing? interven

our chief asia correspondent stephen engle is in hong kong. we have seen the hong kong economy starting to contrast -- to contract already. how bad is it getting? stephen: where we need to start looking is forward. the last couple of months of this unrest combined with escalating trade tension between china and the united states and china's decision to allow the yuan to weaken, because many hong kong companies get their revenue from china and that weakening yuan is pressuring them. analysts on average are seeing a 19% slump in operating income for the full year 2019. it would be the biggest contraction since 2008. of course, the trade war, as i mentioned, the week yuan, and these mounting or i should say prolonged protests with no end in sight. amber hill capital saying the third quarter could the potentially worse and the downsides of prices have not been fully reflected in share prices. one stock that was hammered yesterday was hong kong and china gas company. one of the single-digit stop stockhere, three is the code. it fell 5.3%, as much a

on the brief today, from hong kong, stephen engle on continuing disruption over there and scott lemon on the escalating trade war. stephen, thank you for sticking around. what has happened since we talked last in hong kong? stephen: these flash mob protests have been moving all around this former british colony. earlier this afternoon it was fairly peaceful in front of the central government offices and the offices of the embattled chief executive carrie lam. battlese there were between protesters and police that involved the firing of tear gas and now we have seen the protesters move their flash mob protest to different parts of the city to keep the police off guard. right now we have the local television

live pictures with stephen engle on the ground. to globalo go back trades, we have been trying to figure out whether chinese money goes into europe as the fight rages with the u.s. it is not as simple as that. miranda: you are seeing different elements. the trades of europe and other asian countries has improved. this realignment of flows and investment flows. in the last year, you have seen european investments in china go up 75%. people have to check that number. hang on. surely it cannot be that big. china has loosened foreign ownership restrictions. u.s. investment has plummeted by 20%. the european side going in, japanese companies investing in china and the u.s. is in danger of potentially being isolated on that aspect. you're getting other countries cooperating at the same time as the u.s. is trying to throw wrenches into the global supply chains. francine: thank you. coming up, china urges hong kong citizens to stand up to protesters. we bring you the latest live from the region. this is bloomberg. ♪ francine: don't under

matt: i am here to talk to the cfo stephen engles. the bank has said the full-year profit targets are ambitious. this has become code in german , therate speak for, well fact they may lower them soon. saweast that is what we last year and from other german companies, saying the targets are ambitious. sort of the precursor to a profit warning. what they need to do to hit those targets and to strengthen the bank further. and what we're -- what we were talking about with themos, economic growth in germany is difficult because the government is not willing to boost spending on things this country needs, like infrastructure, which is not helpful for a bank like commerzbank. anna: right to months of the fiscal side of things will be part of the conversation -- right, the fiscal side of things will be part of the conversation. let's map out some of the policy moves. new zealand shocking with a 50 basis point cut, india cutting by 35. thailand cutting-ists -- cutting it's interest rates. we see a move in the dollar that stands out as fairly s

. >> stephen thanks very much. stephen engle at the hong kong airport. now risk off momentum is gathering pace, the yield on the u.s. long bond has grossed an all-time low -- has brochin long time all-time low. events in hong kong and argentina over the past 24 hours have added to the negative sentiment. the yield on the 10-year note depth as well. at one point it was just five basis points more than the two-year. that is the flattest that the sinceends curve has been 27th 2007. ubs has dropped its forecast for the 10 year treasury yield from 2%. this china's tenure sovereign bond yield fells for the first time since 2016. china's many data has not helped sentiment. growth back to the slowest on record. let's look at the drop in long bond yields in the u.s. first. had goldman this week turning neutral on global bond duration after the recent rally. would you be's making this a movie? >> if you look at what is going on globally, growth is slow and slowing. inflation is nonexistent, the momentum in the economy is downwards. after that some jeep -- that som

let's bring in stephen engle. he is live outside of police headquarters in hong kong. there could be another protests. they're calling for seven: 30 tonight. -- 7:30 tonight. that could be the next step. there also calls for the peaceful sit in at the airport could be extended today and beyond. that is where the mostly peaceful protests, and in large numbers. even though it is a battle on the street of hong kong, they got more violent than people have shown us. police firing canisters of tear gas on the street. at least two subway stops in hong kong. more video proof of the police using a lot of force to quell the violence on the street, and not wasting a lot of time putting up the black flag and the troops, the soldiers, i'm sorry, the police, i have to be careful with my words. and quell the unrest. that is the guideline from the government. they are taking a hard line. that is building up further antipathy between the hardliners taking to the streets and the police. is this ae question, political situation being resolved by the security forces, the police? whether t

stephen engle is live outside the building here this morning. more gloom for the city. do you think these measures are going to work? aephen: well, it's not small stimulus package. the big question is, will it be put to the right uses to stimulate the areas of the economy that are suffering the most from the trade war? of course, as well as the recent protests. even though i might add the financial secretary said this stimulus package is not in relationship to the protests, upheaval of the economy. we all know it is, but he probably doesn't want to link the demands of the protesters, who want to hurt the hong kong economy, with these coming from the hong kong government. this is speculation on my part because i've been following throughout. we've heard from carrie lam, the chief executive, saying the damage from the economy is like a tsunami. definitely, the government here is worried about those numbers you were just talking about. this is an economy that has not had year-over-year growth contractions since the third quarter of 2009. so, in the throes of the global fin

stephen engle is at the hong kong airport. tom mackenzie is in beijing. start with you. we have seen travelers really get affected in hong kong. when will operations return back to normal? stephen: it seems like it is back to normal right now because i was just up in the departure hall and i was looking at the board for departing flights between now and 1:30. all the flights are listed and i counted nine cancellations. that is not bad for an airport that handles 1100 flights per day. i am looking at the arrival board and i do not see any delays. when i arrived at the airport, i did the numerous planes landing. a problem.t anybody who checked in before 4:30 yesterday afternoon, if they could get through the gates which were blocked by protesters, north and south, if they could get to the gate and were checked in before 4:30, they could have left. everything after that was pretty much canceled, but arriving flights still continued into the evening even though this arrival hall and the departure hall was packed with heating amounts of amounts of-- heaving protesters, blocki

paul: chief north it -- north asian correspondent, stephen engle. u.k. prime minister boris johnson made his first public attempt to renegotiate the brexit deal. he is telling the european union he wants to explore different ways to prevent hard border in ireland. let's head over to fx reporter david. it is a noble goal. what are divorced johnson's chance of renegotiating the irish border? david: it seems tough if we are being honest. it is the most contentious part of the agreement, a legally binding commitment not to do any checks between northern ireland and ireland. and the eu perspective, they do not want a hard border. they also have another issue. the eu wants to make sure every agreement is in place that will secure the borders after the u.k. leaves. they do not want groups coming across from northern ireland to southern ireland that have different taxes and import duties. the eu will say, we need something specific to stop this problem. what boris johnson said his vague. eluding alluding to -- to technological solutions. that is why we have the

engle,ring in stephen chief north asia correspondent who will go through a long list. stephen: i've killed a few trees printing this out but we've also comment from the hong kong government about tourist arrivals down 26% in july year-over-year and those numbers continue to fall. move back toters the airport today and through the weekend, disrupting or at least holding rallies there to plead their case to the international community as they come in and out. we are also hearing now, 22 countries have issued travel warnings to hong kong including the united states. that is the backdrop. we know close to 10 weeks of unrest. let's get through swire pacific, one of the oldest trading houses in hong kong, talking about stronger headwinds, net income fell 41% in the first half. arecally, they fundamentally confident in hong kong and have been here 148 years. the company, which also owns cathay pacific, is seeing headwinds. this is a company in retailing and airlines. sectors that have been hit hard by protests. here is the chairman of swire pacific as well as swire properties