9.5 hours to go to the latest boe decision. to doarney not expected anything, but pronouncements well worth looking at. 35 hours from the most important data point, u.s. nonfarm data payroll report. data out of australia, trade data there, and let's get more. what have we got? paul: a disappointment. the surplus was expected to narrow, but narrowed more than expected. the trade surplus 856 million australian dollars, looking for 1.8 billion, so a big miss, down on the previous month, an impressive number. rose look at imports, they 2% from a month earlier, exports month earlier as

well. it is important to remember that june did coincide with the week's price for iron ore so far this year at $50, $55 per ton before recovering to $65 a time later in the month and coincided with the beginning of this strength in the australian dollar. of the austrian dollar, it is slipping, though not enormously so. a bit of a miss for the june trade data, $856 million. rishaad: thank you so much for that. that's get it to sophie at reactionlooking to that and the pmi number. the dow puts in an all-time high and it is acting as a headwind. we are seeing investors shrugged off enthusiasm. equities and currencies under pressure and the region. , ande stocks falling .2%

pressure on the aussie dollar has not subsided given that data out of sydney, falling .5%. chinese stocks extending wednesday's losses, down about .1%. snapping ang three-day rise, down .3%. we are seeing investors curb enthusiasm as the rally in hong kong could be due for a pause. we do have the dollar rebounding slightly from a 15 month low, weakness and other asian currencies. check out the onshore and offshore rates for the yuan falling after a week or fix from the pboc. back footocks on the this thursday, check this out. the shanghai composite could be testing 3300 level for the first time since january 2016. it has made this attempt three times since november, but there

has been consternation about whether we see the rally continue in asian stocks today. i want to check a stock in hong kong. ,his is standard chartered falling the most since november 2016 in hong kong, tracking the slump in london after the ceo sounded alarm bells over growth prospects. showing you what is going on with the hang seng, earnings underway. waiting on c.k. hutchinson, gaining .5% ahead of those results. .e are seeing weakness a last look more closely at aussie shares after the june trade data, falling for a second , coming off session lows. elsewhere, tech shares in pole buttion come up .8% among miners and material stocks remain in the doldrums given weakness in commodity prices,

and telcos the worst performing sector, down .5%. rishaad: thank you so much for that. sophie kamaruddin there. moving to the downside come the hang seng at two-year highs. let's get you caught up with first word news headlines. samsung's fact robust jay y. lee rejected accusations that he okayed the payment of bribes to south koreanf the president in return for support in a key merger. has been in detention in february as part of an investigation into corporate influence and a government earlier this year. doubling, lifted by investments and revaluations, the equivalent of $425 million, than theling, 97% more same time frame a year ago. dropping 12%, mainly on

a lower contribution from projects in singapore, essentially partially offset by developments in china. moving to the downside in singapore by .8%. we will talk to the chief executive later in the program. 12:30 in sydney. the dow jones at a record and tim cook within reach of a performance bonus worth $44 million. ,e will collect 280,000 shares the total shareholder return of her three years beats two thirds of the s&p 500. hislans to donate most of fortune to charity after paying for his cousin's college tuition. 8%, 7.4% in up over the after-hours session, the

company burning through cash at a record pace. efforts to bring the new model three to market. negative free cash flow more than $1 billion in the second quarter, twice the first three months of the year, even so less than the analysts prediction. almostel three has 500,000 reservations. >> nirvana is that we can make the car and pay for the car before we have to pay suppliers. the faster you grow, the faster your cash position grows. that is the promise land right there. rishaad: more on tesla earnings. bucks being spent and ramping up battery output and expanding customer service. he was calling it hell. what does it all tell us about the electric vehicle him ev

market -- vehicle, ev market? >> it was better than expected. it is a decent outcome. the picture overall for electric vehicles is getting better. alternatives are getting worse at the same time. we heard in the last couple of weeks that the u.k. and other european countries are trying to phase out diesel and gasoline vehicles by certain years, so the tide is turning towards ev's . this year, we expect ev's to exceed one million sales for the first time ever. that is a tiny drop in the bucket in terms of the overall car market. there are 1.2 billion cars on the road today, so one million in new sales is a tiny amount of that. we have a ways to go before see adoption on a large scale. rishaad: it has got a lot of people running scared, hasn't it? >> absolutely.

absolutely. one of the interesting things is is the largesta ev market in the world and overtook the u.s., more than 30% , more than 41%, of all the new electric vehicle sales in the last year to lace in china. in 2040, we are looking at a third of that coming from china. 1% club in the sense that two of the world's largest car markets, china and the u.s., as well as european countries that have reached that 1% threshold, meaning 1% of new car sales are in electric vehicles. it is an interesting milestone, but still a ways to go. have this chart, btv 7920 exemplifying what is going on here. you are being conservative with

his forecast. >> what is interesting is that after we put out this forecast, a number of other companies also raised their forecasts come including opec, which one can say is not the most friendly group. line is the turquoise the line when it comes to internal combustion engines. these are ev's and white. there we go. the acceleration of electric vehicle sales over the next couple of years. that couldwo things hold back electric vehicle sales. one is the number of charging stations available. that number is growing rapidly, but it takes longer to charge the car than it does to go to a gas station and fill it up, so you need more charging stations to meet that demand. also, people are having trouble finding of business model for

charging stations. it is hard to make money on charging stations. we will see if they can make a model that works in terms of public charging stations. the other issue is range anxiety. rishaad: this model three, flabbergasted some people by its range? miles is the estimate for the range of the model three. rishaad: range anxiety is still an issue? >> it is an issue. we can cite all the numbers about people driving 50 miles a day, but people want the option of driving 200-300 miles before a charge. a lot of them models we see will reach that. rishaad: that is the point. we talk about batteries. is there enough mining capacity? i guess you have to get the stuff out of the ground as well. it is so slow how much batteries

have increased in terms of their performance compared to say chips. >> absolutely. the batteries are rapidly expanding area of manufacturing. half of the world's batteries are manufactured in china. battery manufacturing capacity in china, south korea, japan, and the gig a factory in the u.s. to double in the next 4-5 years, so people are rapidly ramping up battery manufacturing capacity. the battery that is dominant now is not the best battery in terms of the performance and efficiency, but it is the one that is cheaper and the when people are putting their money on in terms of betting where it will be. in terms of the materials, the good news is yes, there are enough metals and minerals than the things that go into the batteries in the world, but the

production of these materials need to increase 100 fold by 2030 to reach what we need for the battery capacity come and that is a lot of investment needed, so we need to watch the space closely. it will be more activity needed to keep up with the pace for electric cars. ok, coming up, shinzo obvious big shape up. can the prime minister reverse his fortunes. we had to tokyo, next. this is bloomberg. ♪

rishaad: you are back with bloomberg markets. i am rishaad salamat in hong kong. aig shares had a good session, especially the extended one, the estimates on second-quarter operating profits. net earnings at $1.52 a share.

driven by again said its consumer division. this is a win for the new chief executive who shook up aig's management team. aig still under pressure in its commercial insurance operations as margins get eroded. trade,jumped an extended and estimate be there as well. its much anticipated watch will debut in time for the christmas period. sales dropped 40%, but that of than forecast. fit it facing increasing rivalry from china's xiao mei and the apple watch. dalian won an da the expects a net loss in the second quarter compared with a

$24 million profited year ago. north american box office sales of $11.2 billion this year, down 1.5% from 2016. we should be getting these pmi numbers out of china. it is the china composite pmi figure from caixin. july nonmanufacturing as opposed to 51 .6 in june, so slightly weaker than that june figure. there we have it at the moment. with what isn line going on and continue to build this picture of momentum for the chinese economy and that momentum continuing. right, the political spotlight abe shakinghinzo up his. they could spark a leadership challenge and could herald the in of abenomics. kingston.er and jeff

's popularitybe rise, and does it matter? ityeah, rish, the answer is doesn't matter and probably won't rise. the market is stable. we know what the new lineup will be. most prominent change is the foreign minister slot. he will step down and be replaced. is not toreal aim shocked the nation and somehow boost himself in the polls. he wants stability, something that will carry him over, consistency, a trustworthy cabinet that will care him over polls ae next big year away. rishaad: what other objectives

could the prime minister have? there has been a whispering campaign against him and the hint of scandal. >> he needs to ride out this domestic noise over the ga is ffs's cabinet has made. that's what he wants a reliable. those coming in have not have a problem in the past, so he is aiming to hold steady. the removal from the cap net, that was his choice. he has his own faction and wants to be free to challenge for the leadership job of the ldp and elections held a year from september. one of the date stories we will be watching is how mr. abe does

over the next several months. much forthank you so that, brian. we continue the conversation with jeff kingston on the phone from tokyo. what are you making of all this? what is your take away? imploded in the polls, going from 60% to 26% in one of the polls, so clearly he was eager to get a bounce out of this cabinet reshuffle, but it is a ho-hum, yesterday's sotovers, sort of reshuffle, it is unlikely he will get much of a bounce in the polls. i agree with the former commentators saying this is a safe hands, but he will not

convince people it is new and they are exciting and can adopt a new policies. he wanted to demonstrate it is more inclusive, some members of his own faction have been pushed out and he has tried to include other faction members, but the public will be unimpressed. his scandalgave legs with his botched testimony last week. well, he does not have an effective opposition. you and others have described it as being, well, weak and incompetent at best. main threat is from his own party, is it not? and also, and nascent party after the loss in the mayoral election as well. >> the opposition is in disarray, and the opposition

leader is in great favor by suddenly resigning a couple of 's botched abe testimony when the media here was pummeling him. she gave him a welcome distraction. is come yes, abe there is the potential for rivals, but they are week. abe is concerned the poll numbers are low. d there haswar perio been only one prime minister to recover from the death's own below 30%. this is on his mind following the drubbing in tokyo and the public is not warmed to his agenda of constitutional revision. need moreeff, does he than a reshuffle, to throw down the moment and go to the country? is a huge gamble. a lot of members in the ldp are hoping he won't pull the trigger be may feel he

needs a new mandate and to remind everybody that there is no alternative. i am still the boss. problem is he wants constitutional revision very quickly. he can get the two thirds in both houses, but is not likely to win a majority in a public referendum, so he needs to renew his mandate. talking toff, great you. jeff kingston from temple university there. coming up, trumps america, lloyd lang find talking about life under the current administration. this is bloomberg. ♪

♪ you are with bloomberg markets. in honghaad salamat kong. hsbc saying possibilities are endless in china as the

government opens up the economy. speed bumps between beijing and washington, the bank says the potential for two-way trade and investment continues to expand. the banks u.s. boss saying china's transition to a consumption-based economy offers boundless opportunities. >> you have a tremendous amount of growth occurring in china itself, greg 6% to 7%, and the u.s. growing also, albeit slower . if you look at the amount of interest both countries have, that interest in the other's business is growing, strong, so from our client face, we see almost an unlimited amount of growth in the next few years. rishaad: for more on what is going on in the banking industry , lloyd blankfein brushing off fixed income business and not panicking because it is working

on changing its mix of products and client base. >> we tend to be overly weighted to a client base, a terrific client base we will never abandon, but disproportionally evolved to trading clients who trade with hedge funds and other things. again, we are an investment bank. the more corporate banks have more business with corporate's than others. that is something we should have fixed. it getld not have let that disproportionate, but it did and we will fix it. rishaad: generally we are seeing declines. part of the reason is we may well have had a record for the has not followed through because part of that lift up was down to apple. factored into the session yesterday in this part of the world. we are looking at the hang seng, just under half an hour trading

gone, and there we go, was at two-year highs. we will be talking about the qatar with doha banks group chief executive. ♪

♪ >> from our studios in new york city, this is "charlie rose." charlie: "the washington post" reported on monday night that president trump personally dictated a statement between his son and a russian lawyer that claimed the meeting had primarily been a russian adoption program subject. this was later shown to be misleading. joining me now from washington is philip rucker, the white house bureau chief and analyst -- at the washington post and analyst for msnbc news. phil, tell me for those who did not read the story, who did not get their daily briefing from