stock market u.s., it's all deal. a a trade deal, u.s. and mexico, donald trump announced today, see the dow jones industrial average, by the close, up more than a percent, points. s&p 500 get up 22 points. nasdaq, nearly 72 points. optimism that the trade war dominos are starting to fall. lead to progress on other fronts, heidi? heidi: yeah. suppose, if you look at all he strategies, warning, don't extrapolate this deal with any sort of optimism when it comes to china and the u.s. trump saying now is not the time to talk to children on those trade issues but take a setup in asia with those record highs in the u.s., bit of positive activity through to the asian section. the moment. at percent about a half decline overnight as the safe of mood seemed to recede with a little more risk taking. look positive to build on the previous days' gains and the some , 73.49 giving back of those gains that came through yesterday.ally let's get you the first news with jessica. >> thanks, heidi. $5 farmers will get almost billion of direct government aid

u.s. markets surge of walmart.d by the only question you really need an answer to the right now much longer can america outperform? ap moller-maersk plans to spin off its drilling business on the nasdaq. matt miller live at the company's headquarters in copenhagen. air france has a new canadian pilot. will unions get on board with the foreign ceo? will passengers take flight? we are less than half an hour from the start of european cash trading this friday morning. let me show you what the futures point to this morning. yesterday u.s. markets were on a tear, driven by those amazing walmart numbers. the retail story in the united states looks very strong. the outperformance of the u.s. market. europe will do nothing today. that is the story will get at a headline level. at an individual equity level we will see a different story. we will talk about air france, ap moller-maersk, and the commodities space. outperformance yesterday from the united states was impressive. s&p up and the doubt su

the u.s. and iran, and the u.s. and its european allies. trump threatened other countries seeking to trade with iran, tweeting -- "anyone doing business with iran will not be doing business with the united states." iranian president hassan rouhani has condemned the sanctions as psychological warfare, saying last weeeek he would not begin negotiations until the sanctions are withdrawn. the first step would be for u.s. president donald trump to show he generally was to engage in negotiations to solve the problem. what is the meaning of negotiations when you impose sanctions at the same time? it is like someone pulling a knife to stab a rifle -- rival or enemy and arm while at the same time claim we should be talking and negotiating. the answer in such a case would be to say to remove the knife from the arm and put the knife away. amy: just last month, president trump said he would meet with iranian president hassan rouhani whenever rouhani wants, without preconditions. this is trump speaking at

u.s. independent oil producers alix: growing pains. u.s. independent oil producers spend more and get less as the shale development hits some road bumps. make glencore great again. record profits at glencore not enough for investors as they clamor for buybacks in dividends. and come up big growth plans. lyondellbasell's ceo bob patel outlines expansion plans for one of the largest petro-chem giants in the world. ♪ alix: i'm alix steel, and welcome to "bloomberg commodities edge." it's 30 minutes focused on the companies, the physical assets, and the trading behind the hottest commodities with the smartest voices in the business. all right, let's kick it off with "spot on." it's our analyst's take on our big story. joining me now is tamar essner, nasdaq's lead energy analyst, and our spotlight on oil earnings. good to see you, tamar. thanks for being here. tamar: thanks for having me back. alix: the big theme with enp independence in the u.s., production guidance goes nowhere. capex goes much, much higher. what was your big take away so fa

moves, if the u.s. moves into a more high key profile, there will be a vacuum that needs to be filled area working on environmental law legislation, drafting. in cambodia, or in vietnam. that is the scenario that taiwan is expected to. that is so metoo capacity building, low-key zone. that taiwan could again, engage in. last comments on good for the u.s. zynga for southeast asia, is on people to people exchange. chinese --hed china's move, there's been a huge volume of frequent people to people exchanges. whether it is educational, business to business, they are happening all the time. wideis creating a deep and web of networks between china and southeast asia. i don't think so they bad thing. time, we're not quite sure how there are people to people exchanges paying off. as, taiwan and even the u.s. is considering reaching out to southeast asian countries. the countries are saying we need more of these people to people exchanges. that is how you foster this environment or it i think it is important to

u.s. arms transfer policy. we are excited to have the ambassador with us to give us remarks on that at a stellar panel after that. i will begin as we always do with our obligatory security announcement because we have thought about what to do in case of an emergency. we want to let you know we have plans and if something were to happen, i will be your security guide and let you know where to go, either out the way you came in or in the back, depending on what kind of emergency might arise. what we do not expect that today. i also want to thank sponsors who make these events possible, including general member support, which has a big role to do with today's event, and our sponsor who helped us make it possible to do today's event. i want to thank our friends at the state department very much for supporting us. and being able to talk about this topic. i think it is timely. obviously change is afoot. you are seeing dramatic growth in the level of the dollar value in the u.s. arms exports, and

u.s. stocks. nejra: we are talking about the boost overnight but also asian equities today on the resumption of these trade talks between u.s. and china. perhaps you also want to take a look at the respective yield curve of the u.s. and china. if you look at the same curve in china, we are approaching 80 basis points. if those yield curve's anything about economic activity, what we are going to see is chinese equities looking well-positioned to outperform their american peers for the rest of 2018. some interesting dynamics. anna: quick word on those futures. this is what we see on u.s. futures right now. s&p futures and negative but not by much. let's tell you a little bit about something exciting that is coming up on the program. the ceo of guatemala mac is going to be joining the team for his first interview of the day. that will be just after 7:00 a.m. london time. we had the bloomberg school overnight talking about the drilling unit of this business. could it actually be spun off rathe

the u.s. does. and later this hour, our interview with warren buffett, always the berkshire hathaway chairman and c.e.o. turns 88 today. it is 19 minutes into the trading day in the u.s. blarg's abigail doolittle has the latest on u.s. markets. abigail: we are look agent very small moves. mixed action, too. you can see the tech-heavy nasdaq higher, putting in yet another all-time high. but the dow and the s&p 500 at least so far not joining in. we've had a string of bullish days until today for both of those indexes as well. it will be interesting to see whether they turn with the nasdaq. in fact, let's look at a five-day chart of the s&p 500 to see the rally we've had more recently. last friday, of course, fed chair jay powell, the marks had a dovish reaction, pushing up stocks, and that seemed to continue right into this week. but today, the slight, slight decline. but again, the nasdaq has turned. but when we go to the bloomberg, you look at what's happening sector-wise, it is bearish. this

the u.s. and mexico have come to an --eement, possibly something the few sticking points left. the mexican peso is rallying at 18.6765.y romaine: the dow, s&p and nasdaq taking off, as well as the russell 2000, seen treasury yields steepen pretty heavily as well. both the two and 10 year back up to 2.84 on this news here. this would be a big day. we have to see how canada falls into the mix. vonnie: we were anticipating this. there was one sticking point left before the countries could agree. now that sticking point has been resolved. let's get to one of our trade experts, who is michael mckee back from jackson hole. we were anticipating a nafta agreement between the two countries. but it is not a nafta agreement until canada gets involved. michael: that is correct. mexico and canada agreed they want a trilateral agreement. the u.s. has reached an agreement with mexico on local car or truckmuch has to be made in the united states? 75% seems to be the working assumption, although we don't have

in terms of u.s. and north korea relations, they have to bring back to their own people that they brought about tangible results. as for donald trump, he has to go back to the american people declaring there is no longer a credible threat from north korea, justifying the need for declaring the end of war, and telling them that north korea is fully committed to a deep -- denuclearization. for kim jong-un on, he needs to go back to his own people in north korea, telling them there is no longer a threat from the u.s. counterpart, saying that it is ok to denuclearize and no need for them to use a nuclear weapons defense second some -- defense mechanism. ramy: that is an unwelcome problem for seoul. mike pompeo will not be lying to north korea until the so-called problems he claims with china are resolved. it has created a difficult situation for moon jae-in, the south korean president who is in the driver seat, to keep this alliance with the u.s. with the inter-korean summit coming in september, a lot of

u.s. of california say they saved a populated area from wildfires that are squeezing across the north of the state fire was diverted from the city of clear lake into the national forest at least six people have died and seven more still missing since the fires broke out more than a week ago and they've destroyed more than eight hundred homes and displaced thousands of families. and that story is up next a season. reaching out to teheran donald trump says he's ready to meet iran's president any time and with no preconditions so what's behind this sudden off and how will trump and gauge iran when he's trying to build a regional alliance against this is inside story. hello and welcome to the program. u.s. president donald trump has extended an olive branch to iran just a week after he threatened the country now says he's ready to meet iranian president hassan rouhani any time and without preconditions but his secretary of state quickly backtracked from statement adding a few caveats to any po

the contrast between u.s. high-yield or u.s. equities is relative to emerging-market equities or emerging-market fx or credit. it's extraordinary. if you have any bit of faith the issue will get resolved without too much trouble, the value of these assets is extraordinary. jonathan: the way people are thinking is the u.s. was the best house on the street. the economy looks strong. do you see as entering a bit of point where you can get a policy tailwind from everywhere except the united states? mary: exactly. we saw a decent about a spread widening in june versus u.s. high-yield. we have nothing jumping up and down about valuations in the u.s. high-yield. they have been in a quite tight range this year and we expect that to continue. when high-yield bond widened out close to 150 basis points versus u.s., we started to cover some of that underweight. we have not got to neutral because besides trade there are other things in emerging markets where he could see potential for volatility, the weekend to agree there is -- we tend to a

the u.s. plan when it comes to iran hurt the economy hurt the people forced the government to agree to change much of its foreign policy the policy is not regime change but we definitely want to put maximum pressure on the government and it's not just to come back to discuss fixing a deal that's basically not fixable dealing with the nuclear weapons aspect we want to see a much broader retreat by iran from their support for international terrorism their belligerent military activity in the middle east and their ballistic missile nuclear related programs all things around is unlikely to agree to still the partners in the nuclear deal are urging dialogue we really just encourage and united states to start talking to its partners in iran in order to be able to find a route forward the european union is trying to protect its companies taking the unusual step of issuing a blocking statement that says european companies should ignore u.s. sanctions but still car companies drug manufacturers and many

u.s. economy vulnerable? italian bond investors run for cover ahead of what is potentially another month of political turmoil. we start with the big issue. pain in emerging markets. >> emerging markets has been hit quite hard. >> global liquidity is actually on the retreat. that will definitely leave traces in emerging markets. >> some of them are in good shape, some of them are not. they are all being tarred by the same brush. what that means is investors who are careful about looking for the nuggets are going to find some really good opportunities. >> we do see some selective value there. what has hurt the emerging markets has been the strong dollar and the fed tightening and higher u.s. interest rates that has caused capital to move out of emerging markets into the u.s. but the point is that a lot of the dollar strength, most of it, who knows when the dollar will peak but a lot of that has happened. >> we will see points in time where investors start splitting their interest between the

u.s. sees evidence of change. hurtng says tariffs everyone. a very good morning again and hello to all of the global viewers. looking at what has happened the past 24 hours, there is a trade for pain, and there is a trade for earnings. we saw that pushed back and forth in terms of equities. we started low but ended up mixed. we seek we don't know it is when -- where it is heading. a lot of central-bank action out of the bank of england. in terms of what is happening, the central bank is trying to figure out the drivers that are trying to come out from wall street as well. this was surprising. maybe we will get another rate move out of mark carney. you spoke about the pain trade. if you look in -- listen to wilbur ross, he said putting beijing in that position of pain hopefully from his point of view, the trump administration's , they will get them closer to economic reforms. that is a long-term game. they the question is if could relate debt there. let's get you caught up with what has hap

japan realizes -- but the u.s. if the u.s. decided to leave the region, what japan can do is very limited. also why japan is not , so frustrated, sometimes described as an isolated partner of the united states over north korea? the reality is actually that what japan can do to the north korea is lenient. and what japan cannot see in the negotiation between the u.s. and north korea is to extremes. -- two extremes. one extreme is war. or conflict, military conflict. japan is afraid of the other extreme. too much competition by the u.s. the starting of a nuclear --. and the starting of a nuclear arsenal. even such a scenario realized, alternative for japan to take. what japan is trying to do is maintain ties with the united states and try to favor international liberal order. that is probably several things. very interesting. [indiscernable] which i belong to has been working on the promotion of -- exchange between japan and --. [indiscernable] and promoting asian nation stability and prosperity. and in that context, a very inter

the contrast between u.s. high-yield or u.s. equities relative to emerging-market equities or emerging-market fx emma or emerging-market credit is extraordinary. if you have any bit of faith that the trade issue is going to get resolved, without too much trouble, the value in these assets is extraordinary. arethan: the way people thinking about it is the u.s. was the best house in the street. see it centering a bit of an inflation point where you could get a policy tailwind from everywhere else except the united states? >> exactly. when i came on the show, we saudis and amount of spread widening in june in emerging markets versus u.s. high-yield. been jumping up and down about valuations in u.s. high-yield tiered they have been in a -- a tight range this year. we expect that to continue. widenedh-yield bonds out to close to 150 basis point versus u.s., we started to cover some of that underweight. tohave not gone fully neutral. besides trade, there are a couple of other things in emerging markets to see some potential for volati

>> the u.s. decoupling continues, but it is a and probably the second half of next year, i think the decoupling will have stopped. this is broad, forward growth and not long-term structural change. raises the question whether you want to actually play that and apply it to a trade which is a wider spread. the u.s. can continue to decouple for a lot of reasons. it is about timing of when we read couple. while you are waiting, they are not going to blink, they have a lot of treasuries up -- treasury supply. given that it is a bearish sentiment, people do not think it is sustainable. if you really press people, people will say is a temporary growth the story. what if it is not, that is where the pain really lies. jon: express that in the market, what is the trade, how the put money to work if that is your view? >> higher price overall being sure to make sense. and wein this nomad land are in a tug-of-war. we coming to the third into september where everybody is back in their seats, and this is not go

u.s. president his attorney general in a move that would fire robert mueller for constraining is russia probe. welcome to surveillance. let's check in on the markets. after a mixed session in asia, we saw the index trading that overall, we are seeing modest gains in europe. the stoxx 600 up .25%. u.s. futures, pointing higher toward the end of the week. i want to show the two-10 curve. to flattening has taken us 20 basis points on that. focus ahead of jackson hole. a some fed officials have shown concern over yield curve flattening. something to bear in mind. we are keeping an -- keeping of the g10.fx out a touch of dollar weakness, crude oil on the 68 handle. perhaps dollar weakness fitting into that. strength following the data out of the u.s. earlier in the week. throughout the day, live coverage from the jackson hole gathering of bankers. the fed president's of st. louis, dallas, cleveland, atlanta. first, i first word -- a first word. >> in australia, the treasurer scott morrison will

u.s. sanctions mean that as a u.s. company knight cannot supply shoes to players in the iranian national team at this time sanctions applicable to have been in place for many years and are enforceable by along with the us threatening further sanctions even more american and european companies appear unwilling to deal with iran and that's despite the fact that since the trump administration sanctions announcement e.u. officials pledge to support and protect european businesses. as the european commission we have the juicy to protect european companies so we know me to act the law. we are determined to fight so that the decisions taken by the united states have no repercussions for the french businesses that invest and have invested in iran top e.u. officials even wrote a letter pleading with the u.s. to exclude european companies from the penalties in the state department's response it's our way or the highway we are asking every nation every nation who is sick and tired of islamic republics destructive behavior to join

iran's president cautioned the u.s. that a war with iran could be the mother of all wars trump shot back with an all caps tweet warning tehran to never threaten the u.s. again. then last week president trump stirred the pot further with a surprising proposal. thank you very much thank you i would certainly make with iran if they wanted to meet i don't know that they're ready yet to have a hard time right now. but i ended the arendelle it was a ridiculous deal. tehran hasn't directly replied to trump suggestion. but some international media report a meeting might happen in new york at the next general assembly of the united nations. president hassan rouhani is expected to go on national television later today to give trump his answer. ok let's get some analysis now with correspondent eric randolph joining us from tehran eric good morning to you all what kind of response can we expect from iran when the new sanctions are announced later today well the. k.g.b. they don't want to give the impression that the sanctions are g

u.s. and mexico but will it to replace nafta and will candidate be left out in the cold we'll get the latest from wall street's also coming up next a makes millions from the water it pumps in many bottles from wells in north eastern france but the source is running dry for the residents of detail so whose border is it. base is your business update i'm allan humphrey in berlin glad you could join me the trumpet administration and mexico have reached a preliminary deal to replace the north american free trade agreement that's according to the u.s. president now donald trump has been a harsh critic of nafta calling it a job killer saying it encourages u.s. companies to move production south of the border to exploit low wages when it comes to the new deal trump says it will help manufacturers and farmers on both sides of the border. donald trump welcome to overhaul the twenty four year trade pact as he suggested a new name for it if canada is not included in this thing. he says to do they used

he has a u.s. military camera and his aunt. the u.s. military issue went to the u.s. and they tried to bury it. he took his own camera home and did a slideshow for his friends. his friends freaked out when they saw it and they reported the newspaper the first broke the story. and it validated the worst assumptions of what americans are doing in vietnam. most soldiers behaved well. but my lai will suggest to many that every soldier , every marine is a baby killer. it really hurts the american cause in vietnam. any questions? >> we can see how the u.s. and salt me it would -- and were they in shock or more supportive? >> that is a great question. the north, is a communist dictatorship. how do they treat information? they control everything. as far as the people in the north are concerned when they read newspapers, we scored a huge victory. we lost three soldiers. we killed. they are inflating the numbers. they are never reporting their own casualties. whenever they report somebody died it's usually to say, he denied killing 20 americans and protecting with his body 50 o

the u.s. sanctions against iran which should just come into force have seen a spike in oil prices with analysts predicting the upward trend will persist with the u.s. preparing to impose yet more sanctions the iran's second largest trading partner has shown it's ready to protect european companies doing business with tehran. we are determined to protect european economic operators in legitimate business with iran this is why european union's updated blocking statute enters into force under seven of august to protect e.u. companies doing legitimate business with iran from team pact of u.s. extraterritorial sanctions we believe that it is and it has to be up to. the europeans in this case to decide with home to trade while the first round of sanctions prohibits iran from using american currency and push restrictions too on creating precious metals and also includes limiting rainy and currency flows as well as constraints on the car trade smear a car looks at the kind of impact u.s. sanctions hav

and the u.s. and china have slapped a new round of tariffs on each other both targeting sixteen billion dollars of goods u.s. and chinese officials are holding talks in washington to diffuse this escalating trade dispute. this is deja vu news live from berlin thanks so much for being with us. how would you like. a guy with data to sell them to any is thinking about possibly buying i need to. compete he explains that. each time we are on line we need behind trances which say in the us about i'm not interested and i wish to agitate as it is is that any escape. to borrow to do next. enter the conflict zone with me should sleep on. this week on conflicts the limits of school to expose you not secondly follow. minister to gary has been among the politicians searching for a common you approach on the question of law migration as a compromise has been found is a fair deal for everybody conflicts. in sixty minutes. lehman brothers ten years on a story of ambition greed and megalomania. we are so clever th

the u.s. says it's not cutting all funding to the u.n. agency that helps palestinian refugees. hello and welcome i'm giving a holiday you are watching al-jazeera live from london also coming up next in the lockdown often explosion at a cafe kills the leader of the russia back separatists in eastern ukraine plus. tributes to the queen of soul as detroit bids farewell to aretha franklin at a star studded funeral and. why it could soon be summer time all year long in the european union. so the united states said it's cutting all funding to on that's the u.n. agency that supports palestinian refugees this comes a week off to the trump administration cut more than two hundred million dollars and economic aid to palestinian refugees the move for will and decades of financial support that is used for health education food security and other essentials. and the statement the u.s. state department said the administration has carefully reviewed the issue and determined that the united states will not to

new u.s. sanctions on iran are in force there the first round of measures against iran after president donald trump rene exam the two thousand and fifteen nuclear deal iran's president is accusing washington waging psychological warfare of sanctions are likely to weaken iran's currency which has been in freefall since trump's decision but also blocked iran from getting access to american dollars the u.s. has stopped imports from iran including food and carpets the sanctions also limit iran's ability to buy raw materials like steel and coal as well as precious metals in november more sanctions will kick in they'll include measures for civically targeting the oil sector and foreign banks that do business with iran kimberly healthcare reports from washington d.c. . the united states says iran is a threat and it wants to punish the country's government by isolating it from the global financial system starting tuesday you. u.s. sanctions will be reimposed to target a range of sectors blocking iran

the u.s. and china countdown to tit-for-tat tariffs. we will see billions of dollars of goods on both sides. washington is warned against further escalation. ramy: i am ramy inocencio in new york, it is just past 7:00 p.m. on sunday. markets set forth a mixed and muted start. traders looking ahead to the meeting at jackson hole. elon musk says this is the way im and rejects calls for him to change and the way his company operates. ♪ ramy: good morning, happy monday. looking ahead to this week, the biggest events is what will be happening with the trade tensions and negotiations happening between the u.s. and china, we have low-level ministers from both sides, as well. they are potentially paving the possibly inmmit november. yvonne: everyone expecting that maybe not so much a breakthrough, if we can get some illumination of further tariffs. the u.s. has threatened more for later in the year. we mentioned also jackson hole, the central bankers meeting on the break. it will be interesting to s

toronto braces for -- tehran faces for new sanctions from the u.s. the u.s.'s top of the matt -- top diplomat says iran must start acting like a normal country. six arrested in venezuela after an attempt on the life of nicolas maduro, who escaped unharmed when jones targeted a military parade. ♪ anchor: we begin in indonesia, where the tourist island of lombok has been devastated by an earthquake. 92 people lost our lives when the earthquake struck. people fled to high ground as the damage forced hotels to close and medics to treat patients in the open. an operation currently underway to evacuate some 1000 or so people from the neighboring islands of gili, with visitors at the height of the tourist season there. reporter: emergency services continue the search for victims of the earthquake in indonesia. relief workers have not worked some of the affected areas and they have been hampered by electricity blackouts. the quick left thousasands of homes and bubuildings damaged, rcing 20,0,000 people into temporaryy shelters, with others forced t to camp outside.

when then that u.s. president bush watched his war on terror with an ultimatum to the world either you're with us or your with the terrorists will fast forward to twenty eighteen u.s. president donald trump today posted a tweet hailing his campaign of economic sanctions against iran and it included an ultimatum of sorts reading anyone doing business with iran will not be doing business with the united states a message clearly written with europe in mind either you're with us on this or you're with the arrangements well this is not a trompe an axis of evil in the making nor is it a coalition of the willing in fact while u.s. sanctions and economic pressure may force many businesses to exit iran most countries do not approve trump's withdrawal from the iran nuclear deal and these new sanctions do not enjoy any degree of international support and tonight's tehran and washington when it comes to say missions and negotiations are about as far apart as it gets. first up would be for u.s. president donald trump

what u.s. officials tell me is that they are refueling saudi ts that go from saudi into yemen, and they're alsoig providing intece on what not to hit. don't hit this building because it's a hospital, don't hit this building because it's the u.n. secretary mattis was asked many tis about some of these criticisms. he said, look, nothing's perfect,ut he did say that e saudis hadn'troved. >> we've had pilots in the air who recognize the danger of a specificd ission anclined to drop even when they get the we have seen staff procedures that put no fire areas around eas where there's hospitals ors. scho we recognize every mistake like is is tragic in every way, but we have not seen any callous disregard by the people we'reh. working wi >> woodruff: so, nick, there is evidence that the saudis are proving their targeting? >> some evidence. the people who i've spoken to who have worked wie saudis say they've come a long way, actually, that thgee tarng with originally was with commercial satellites. some

u.s. commerce secretary threats hit chinese assets. the u.n. is set for its longest weekly losing streak in a quarter of a century. may's drive to win over eu leaders as mark carney adds further rate hikes despite brexit risk. apple becomes the first u.s. company to breach the 13 digit mark. shares rose 9% over two days. will amazon be next? good morning everybody. 6:00 here in london. we have some breaking news for you. we've got a host of companies reporting earnings this morning. let's start with allianz. this is the german insurance business. second quarter upward profits, 3 billion euros against an estimate of 2.8 9 billion. they are concerning their outlook -- to meet their operating profits target, delving into the numbers a little bit, looking for any news more broadly, or specifically on pimco. that to you.o get operating profit, 3 billion euros against an estimate of 2.89. we get intome line, the statement a little bit, miss forestimates -- a estimates. they have stuck with their

what it really links to the u.s. economy the u.s. is still the biggest and most important economy in the world to assume a certain extent we all have to dance to the u.s. is chewed the trade issue is much bigger than the sanctions issue we worry over here in europe a lot about trade wars of course we're in some thirty percent of our g.d.p. from exports the u.s. it's some fifteen good news is the u.s. and e.u. seem to have seen signed some kind of truce since the younker trump meeting some two weeks ago now we have to focus on the u.s. china issue latest news there is there's no real progress so we could see some more escalation of the trade war between the u.s. and china that will be tough for markets to deal with. bearing that bank in london well saudi arabia does not take kindly to being lectured on human rights by other nations canada recently plunged into a diplomatic spat with riyadh over the release of saudi activists from detention in germany stands to lose out on new critics business contracts in the kingdom following critici

the u.s. dollar. it fell as much as 3/10 of 1%, now off by 1/10. we are also watching italy, because it is not just having movement today, but over the last three sessions of 27 basis points higher. as we are looking at a meeting between the finance ministers there and the company does it government -- the country's government. david: they don't like to think that they are even meeting, let alone a green. it's jobs day in the united states. at 8:30 a.m. eastern, we will get the change in nonfarm payrolls for july. ,e will get composite pmi data then brookshire reports its second-quarter earnings. for bloomberg first take, we are joined by carl riccadonna and sarah ponczek. this is sort of the consensus. nonfarm payroll, the consensus is $193,000. you are? carl: $223,000. david: they say it is going to take down to 3.9%. carl: 4.8%. i think we are at a point where we will see more legal pressures -- more labor pressures, enticement to draw workers back into the labor market. as labor force part

then a u.s. content require in the automotive rules of origin, trump was never going to get that, he has given up on that, and then buy america, and you don't hear more about that any more now the north american content requirement for rules of origin, 85%. he was never going to get that i predicted from 62 to 67.5 to 70 they're changing the formula how to calculate it. the increase to 75 is more like increase to 70 every part of this predictable still many issues with mexico haven't been resolved, and of course canada has to come in >> stay with us. joining us, former united states trade representative carla hills that negotiated the original nafta agreement. ambassador hills, from the news we're getting out of d.c., your view of this updated agreement once known as nafta between the u.s. and mexico? >> well, i'm certainly hopeful we get a good agreement, the agreement is 25 years old and needs to be upgraded so i have my fingers crossed that we've done a good job and are going to get to nafta 2

the u.s. sanctions, then there will be a lot of speculation and perhaps more volatility. that's almost inevitable when we report next time in the middle of september, we will be six weeks away or so from impositions. we'll have a clear impact at to what the actual level of oil exports from iran will be, as opposed at the moment we're speculating, talking about it. the exports have not fallen dramatically so far, though there have been fewer purchases by european customers. we have to wait a few more weeks and see what the effects of the u.s. diplomatic effort to persuade foreign countries and companies to cease purchases from iran, then we'll know where we stand in the meantime production from saudi arabia and russia and other producers still has scope to increase further. so it's effect we'll have to wait and see a few more weeks before we can be clear >> neil, what are your expectations when it comes to saudi arabia's ability to increase output. they signaled they would assist with supply co

doesn't enter u.s. corporations and particular don't enter like africa and we're going to talk about african the second half so they're looking at places that the u.s. is not already powerful and like mexico like canada you can't really compete with those united states there. you know so they're they're they're building and they're executing their trade deals in places that like for a long africa these are not places that u.s. corporations are very active in but this is a way for them to continue to build their technology their innovation their you know first mover advantage of course the extractive industries like mining minerals energy were a what drove the debt and financial revolutions of the past few decades but we're entering now into a purely digital economy so these. areas that you mention there like sri lanka ok there's nothing to extract from the. core of the earth and run away with but they do have brains they have people and they are connected to a global network and they will be part of chi

and the u.s. support their intelligence logistics weapons and things have been in place for some time but what the u.s. and the u.k. can no longer continue to support is the ongoing full of civilian deaths and human rights violations which of course is happening on both sides but i think what we're hearing both from secretary mess and from the u.k. as well is that the modest unconditional support for this at least publicly is now changed to modest conditional support for the time the lawyers representing iran in the u.s. are at the international court of justice for a third day of hearings for tehran is challenging washington's sanctions iran says it's the victim of economic strangulation and argues the sanctions violate a french treaty that the sides signed back in one nine hundred fifty five the u.s. argues the court has no jurisdiction to even hear the case lawrence lee is following this case at the hague. for the iranians the task at hand is to try to answer the very serious points that the u.

that is nowhere close to the 600 39 million cube meters in the u.s. >> in the u.s. model, it is like a factory, a flat plane, as many as you possibly can. >> with hopes to meet increasing gas needs, they have cut the resource tax on shale by 30% and have a subsidy. but there is uncertainty if that policy will continue. >> in terms of the government role, it is pretty backseat i would say. the subsidy is important, but they don't really seem to be doing a great deal. they are saying it is time for you guys to walk in here. >> if shale drilling is going to take off in china, it will be because of lessons learned here in the country's southwest. it is the largest shale gas plain outside of north america. >> it is very important in terms of a laboratory. it is where they learned the trade. in terms of all the new techniques they are trying to learn, and how they improve shale gas production, feeling it is crucial. >> china's energy giants are pouring money into it. they say shale gas investments will reach over 1 billion yuan by 2020. leading the charge on the ground is

the u.s. political system about impeachment, if the american public's trust away in one way or the other and it really strangles tumor conference, then it could have an effect. in order to draw the line between impeachment and capital markets you have to connect it was something -- it could be confidence. haveu could argue that we already gotten the benefits of the trump administration in the forms of lower taxes and deregulation. what i worry about more is what happens in 2019 in terms of the impeachment narrative in the markets. we have a very low rates. 2019 revenue growth 5% or less. then things don't look quite so robust as they do this year. about 2020king elections as well. i don't think it is an issue right now but it is an issue in 2019 area >> sentiment could be , we will not see the 26% crash that we saw back then? ofif we did get the roiling the markets, treasury yields will have to come down. the safety net will be there. the americanto how people feel because you have been poring

u.s. and turkey are plunged into crisis over the tension of american pastor andrew brunson washington imposes sanctions on two senior turkish officials and ankara is threatening retaliation. hello i'm terry martin welcome to the program election authorities in zimbabwe are urging people to keep calm the statement comes after an opposition rally yesterday turned by island after the army shot dead three unarmed protesters the opposition alleges the ruling senate p.f. party of president emerson has rigged the results of monday's elections the election commission denies any wrongdoing. soldiers firing live rounds and zimbabwe's capital. the army into the streets of harare midafternoon reportedly at the request of the police. the country's justice minister said the military had been deployed to maintain peace and tranquility and accused opposition supporters of going on a rampage however the protesters claim they didn't start the violence. it was going on. i just want to emphasize the demonstra

u.s. equities after that payroll print number came up on friday but a weaker session for asian he equities overnight. chinese equities leading the decline with the shanghai down more than 1% on further trade exe rhetoric but an extra $60 billion worth of tariffs so that set the tone in trading overnight one hour into the session already. but i should tell you that as far as earnings are concerned about 70% of companies in europe reported so far and they're showing growth of 5% and an eps level up from 0% and from here onwards we have other stories at driving some of the performance but you see the big declining this morning with germany down 24% or so. about 50 points. that is the major underperforming index. it's been hit by the corporate earnings that are coming up. switching to sectors to see where leadership is coming from and you can see today we have oil and gas leading the charge up about .25% and it's continuing to rebound after softening of tone. tariffs between the u.s. and eu no

the u.s. is not ruling out further sanctions if the u.s. prisoners are not free the end game is to have turkey release pastor andrew bronson. as well as eleven other u.s. citizens who are in jail on political charges and three foreign service nationals that is three turkish citizens who were working for u.s. embassies now some people feel that because it is. the administration here has put so much emphasis on bronson as opposed to the other prisoners and because evangelicals of which pastor bronson has one or is such an important part of president trump space that word turkey to release brunson that would defeat use the immediate crisis between the u.s. and turkey now it would not diffuse turkey's current economic problems but that's a separate issue and on that no i want to have these events playing domestically for to an end he's pointing the ping the finger you know for me outside his board us but of course there are very much economic problems. anyway right you're very right about that he's got a very loyal base and he was just reelecte

doesn't enter u.s. corporations and particular don't enter like africa and we're going to talk about african the second half so they're looking at places that the u.s. is not already powerful and like mexico like canada you can't really compete with those united states there. you know so they're they're they're building and they're executing their trade deals in places that like for a long africa these are not places that u.s. corporations are very active in but this is a way for them to continue to build their technology their innovation their you know first mover advantage of course the extractive industries like mining minerals energy or a what drove the debt and financial revolutions of the past few decades but we're entering now into a purely digital economy so these. areas that you mention there like sri lanka it is nothing to extract from the. core of the earth and run away with but they do have brains they have people and they are connected to a global network and they will be part of chinese in

the u.s. has announced a new foreign policy initiative aimed at changing the behavior of the regime in tehran secretary of state mike said the white house is holding a task force to coordinate and run its policy on iran speaking to reporters at the state department he talked about the new initiative our hope is that one day soon we can reach a new agreement with iran but we must see major changes in the regimes behavior both inside and outside of its borders rosen jordan has more from the united nations. the u.s. secretary of state mike pompei o has unveiled what is being called the iran action group trying to make certain that all parts of the u.s. government are working on a strategy to compel iran to give up its nuclear weapons ambitions as well as to stop its efforts of supporting groups such as hamas hezbollah the who these in yemen and other such organizations that have been listed as terrorist groups under u.s. law even though this effort is now being unveiled the administration is deny