Stay in negotiating the terms. Manus you are welcome to daybreak europe. Mnuchin isnt too worried about the dollar. The chinese are exporting like it is 2010. Equity markets are focused on the data rather than the revenue. There is the bond market that is telling us a little more interesting. The bond market simply doesnt believe the data. It didnt get the memo. You had the gdp number which is retrospective but the bond market lost 16 basis points. That is the steepest monthly decline. Since june has had 2016. We are within spitting distance of the lows set last week. Analysts said you should be 50 basis points higher than where you are now. They said we would be at 3 but the bank of nova scotia summed it up beautifully, this is uneconomic. 1. 4 . Ality is pc, it is the fifth straight month of being below the target of 2 . If you are in the bond market, you are in the 1 . , on thee in stocks verge of 1. 2 . China delivered the numbers, the reactivation. Youve got the eighth month of gains on the msci equity index, the longest winning streak since 2007. We got the jobs report today. Singapore, philippines are closed. Yes, youve got the data versus harvey disaster, tax reform skepticism and the north Korean Missile launch but still the stoxx trade higher. The yuan continues to strengthen. The highest export orders since 2010. This is the 12th consecutive day of rally in the yuan one day short of the record set in 2010. The dollar, youve got the secretary mnuchin not too worried about the dollar. Yet the weakest tce in two years. The bloomberg dollar index, the First Six Months fly. Lets see what else we have got in store. Some cracking conversation to had. 7 00 a. M. , tune in. Lets talk about the limits of the ecb. His is a man that knows jeanclaude trichet. I would ask him is it time for draghi to really challenge the euro and we get an update on euros. In the meantime, in singapore, rounding up your week, new slope it is Juliette Saly. Juliette manus, in the u. S. Donald trump is considering a decrease in the u. S. That limit. Just u. S. Debt limit. According to two officials, the request could come as soon as today which would includes include 5. 5 million to the federal Emergency Management agency. We will be spinning to gary cohn. Speaking to gary cohn. U. S. Customs and Border Protection has selected to build concrete prototypes for Donald Trumps promised border wall. The company will build prototypes at a location near san diego. The construction could begin next month with the government paying as much as a halfMillion Dollars. Theresa may is coming under increasing pressure after the latest round of exit talks ended in a stalemate. The negotiator, Michael Barnier says britain is refusing its financial allegations. London mayor told the government needs to get its act together. I think the Prime Minister and the cabinet needs to raise their game. I have been saying they have got inmake sure they negotiate good terms with a sense of positivity with the eu. Juliette in mexico city, as second round of talks with president trumps rhetoric to take up time. He has threatened to pull america out of the deal. In a twitter post and in a news conference, the president of globalindia three news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. As manus mentioned, a few Public Holidays but the markets are rallying quite well. Nursing the nikkei rallied flat we are seeing the nikkei rally flat. We do have that betterthanexpected pmi number helping out the us trillion and helping out the australian and the msci markets. In terms of stocks we have been watching in the region, synnex coming through. Net incomeedible come through. There is concern about its debt levels. Acau leading gains this after j. P. Morgan upgraded beginning stocks on what they call a beautiful opportunity which is too attractive to ignore and cba, australias largest bank, under a bit of pressure. Internal review found billions of dollars of transactions in the u. S. , europe in u. S. , europe have not been properly monitored. A little bit of a dichotomy between the trade and also gdp. Gdp Holding Steady at 2. 7 but you are seeing the korean won depreciate against his largest export markets. A little bit of concern ahead for the south korean economy. Manus Juliette Saly, thank you very much. It got to friday. Weve got more data. Manufacturing pmi hit 51. 6. That topped the estimate. That is the third month of expansion. The Chinese State media has said the communist party is likely to begin a much anticipated congress on the 18th of october. Then, good to see you. Dan, good to see you. What will investors be watching at this meeting . Daniel the big thing on the political side is whether xi jinping signals he wants to stay on for a third time as party leader. The top three alltime is one of the most powerful chinese leaders we have seen in decades. That he stopis after 10 years or does he go on to five years. He could signal that when the Standing Committee is revealed, in the people he puts on that will show what his intentions may be. Manus what his intentions may be Everybody Loves a little bit of power and he has it in spades. What kind of policy statements do you think we can expect. A great deal has been made of his accessing exceeding to Global Status as trump fumbles around with foreign policy. What do you think we will hear from a policy front. Question appears to be whether he is serious about economic reform or he is trying to enhance the power of his communist party we have heard under his tenure, he says the market needs to play a leading role in determining outcomes but he is expanded the parties reach over companies and the economy in ways that we have not seen before either. Rift anda major policy people will be watching that to see if he is going to go toward more market reforms . Is he going to use his power to really bring china in a new direction . Or is he going to use it to enhance the parties control over the economy . Manus daniel, thank you very much. Jenna me now, jeffrey you. Welcome to the program. The hearty congress, we have a core leader, that is a most deity in my reading of it. Will it be about serious reform a what do you think the emphasis will be on the 19th. Geoff it is a companies of things. We talked about the future of the party where what direction fourth. That has gone in terms of policy as mentioned earlier, what is the role of the state in particular. China is going to be the test case. It is a strong state of national champions. Compatible with the market economy. Can you have a strong state presence and have a Market Driven framework . The west we talk about the denaization tionalization . Will china showed it can succeed . Manus i had a guest that talked about the one built one belt, one road. It is 12 times larger than the marshall plan. This is his legacy. His living legacy in terms of the driver of the chinese growth story. One by one road one belt, one road has died down a little bit. Geoff is invoked when it is in vogue is one china is in power. I think that Economic Needs to be taken into account. Manus maybe i jumped into late. A little more data, have we . The starkest export data since 2010. The numbers are strong. The numbers underpin a global conversation and the Global Support for the equity markets. Is that a fair judgment . Geoff it is a very fair judgment. Expectations, look how you are leading indicators and you look at the mnb versus expectation. Surprising to the upside is it sustainable . Manus you are very good guest. You let into the turnover of the leaf. This is the offshore yuan and it has been cracking offshore and onshore as well. Many analysts are moving to a stronger estimation for the yuan by the end of the year. The question is is the pboc really treading water until he gets october out of the way . This market looks stretched by a number of factors. Overall, if there is demand on the back of it, the fundamental justification on the back of exports, there is more especially there is more demand for buying because of the assessment. . Hy shouldnt it be strong the question becomes as a Monetary Policy indicator when it comes to managing inflation, china has been tried to reflate for a while. Does a strong you one suit chinas situation . Manus they have a challenge in terms of what the fed does. He strength in this renminbi it hasnt really affected the numbers thus far, has it . Geoff if you look at it on a trade weighted basis, it is offset the weakness of the dollar. Emerging market economies have been doing well. Overall, not too much concern but once the reflation numbers or indicators start to roll back, the pboc will need to do a double take. Manus geoffrey, you stay with me. What can on daybreak, you expect from the latest jobs data . We will tell you what to watch, the consensus numbers. Has the market delivered for trump . This is bloomberg. Manus a live shot of singapore. Msci asia pacific, 100 cc 1. 11. 161. 11. We have eight months of gains, the longest winning streak since 2007. What happens in china and the United States perhaps underpin emerging a market story emerging market story, as well as asia. These markets are strong. The data is getting stronger. Juliette saly is doing very much. She is in singapore and always brings a ray of sunshine. Juliette Southwest Airlines is working to ensure a steady supply of jet fuel after Hurricane Harvey shuts down pipelines along the gulf coast. Jerry kelly said i do not expect any problem but this is an evolving crisis. The rush to guarantee the fuel after record rainfalls. Shares in lululemon have jumped after it reassured investors that the Athletic Apparel trade is not dead. The Company Posted a secondquarter profit. It delivered a forecast for the year. The indian billionaire is it seeks to grow its aluminum operations overseas. Shares of consilium jumped more than 8 to close its highest level in two years. For a group did not immediately reply to eno queries. That is your Bloomberg Business flash. Manus thank you very much. To an economy that is growing at a moderate base matter it moderate pace, the u. S. Jobs market continues to shine. It is a number for august, the forecast on your bloomberg, 180,000. Michael mckee has more on what we can expect. Michael government and private data suggests the u. S. Data market desk u. S. Jobs market is still u. S. Jobs market is still healthy. Jobless claims remain near record low. These adjustment problems as the summer ends and school year begins. Just how many jobs were created in the month back of payrolls have come in below consensus for six years in a row. While the headline numbers will get the headlines, it is the Unemployment Rate and earnings with will grab the attention of traders and Federal Reserve officials. Fed policymakers still expect a falling jobless rate will eventually trigger higher wages which will push up inflation. That will affect if, when and how much the Central Bank Raises rates. What will not be in the august report, any impact from harvey. Michael mckee, bloomberg, washington. Manus lets get geoffrey yus thoughts. 180,000 is the consensus estimates. It is all about wages. Growth are you surprised with the durability in the numbers . Warned in january about the sustainability of adding these jobs and we have on average added 184,000. Still a durable expansion. We think unemployment is going to go to 4 . People are still confident about the economy and there is still some agree just still some degree of investment still some degree of investment. Signs of aed see tight labor market on a numbers front is generating and upwards squeeze in wages, unless they see that, they are going to be as cautious as possible. Manus when you talk about wages, a chart, no writing on the charts everybody. I want everybody to pay special attention. I havent scribbled in it but i am focused on wages. Rolling over, we are adding wanted to 84,000 jobs come almost as much as we did last year. Squeeze. Ot felt the that is the issue, conundrum, paradox. Look at how many papers on phillips curve is being they are as confused as anyone else. U. K. We say theres a productivity issue. You really have to segment in a different size. Artificial wage restraint. We have a meeting in germany throughout the last 10 or 15 years. Manus the bond market, i did this at the start, the bond market traders didnt get the memo. I talked about virtues of gdp. Let me show you. Talk about a strong u. S. Economy, can you sustain 3 . If you are a bond trader, bond markets simply dont believe that the ability of this market to perpetuate. If you are in bonds, you have had north korea, you have had a whole variety of thinks. North korea will blow over but bond traders really have seen a tty big drop in terms of should that concern me more . Ill year 2001 in stocks. Geoff it will concern many people in terms of growth. At our forecast for example, this year, it is about consistency rather than shooting for the moon in terms of numbers. It talks about 2 for this year, so i think the focus, the expectation have changed somewhat into rather than from the administration, rather than aiming for higher numbers and letting that drive wages, lets just make sure we dont get a downside. Harm. If you do not harm, you make sure thinks tick along nicely and you generate conditions. Build up a savings buffer. If you become a savings economy, which the u. S. Seems to be doing now. Manus economic risk that something jolts the americans into sitting more. Geoff has it been people being scarred from the experience of 10 years ago . They want that cash buffer. People will say on the positive side, number no more leverage in the system. On the negative side, have to revise lower. Manus a revised lower trend growth, however the cio Office Linkedin which was about you do assume a reduction in tax. My issue with the tax reduction, give me the levels that you see. A quick progrowth a quid pro quo for growth. Geoff what you do with a tax reduction . You need not only the cash incentive, you need the regulatory incentive, a comprehensive package. Manus not to spend it on dividends and buybacks but to spend it on investment. Geoff we cannot repeat . 90 of every dollar went into buybacks and evidence. Manus we have more to talk about. Bloomberg, we will have a great conversation. Team at 2 30ns the u. K. Time coming up on the show. As brexit talks hits a stalemate, what is the message from the mayor of london . We have the message. This is bloomberg. Manus tokyo, 2 30 in the afternoon. Did they achieve anything . Buying for my time more time in the brexit negotiation. The dollar a little behind in the yuan a little lower. Lets check in on the markets because things are moderately healthy. Equities are fair. By asian equity index is up. 8 . The gains you see in asia, were waiting for the jobs report, 180,000 is the consensus. The philippines are closed. Remember the remember, geoff yu is beside me. The strength in renminbi is there. It doesnt seem to have repeated the growth story. Theres dollar down, that is yuan. Youre looking at a fairly strong run on the yuan. Youre looking at one of the strongest runs on the yuan in a number of years. The new find my fact of the day. You are also seeing a new addition. It on the mobile. Lets take a look at some of the stores that are making the front cover. Losseslar extending its while he did late into the evening it we managed to turn around ever so slightly this morning. The dollar index is just traded at 92. 73. It has turned around since we wrote this. The judgment on the front of it is steven mnuchin. He is the treasury secretary and he said a weaker currency somewhat battles the u. S. Trade. Somewhat batters the u. S. Trade. Lets ask a geoffrey yu about his view on the dollar. A little irony in the dollar, isnt there . I think every treasury secretary has grappled with the notion of needing a strong dollar policy. Versus the fact that having a weaker dollar is reflationary. Put into context, that is 45 of s p 500. That is a healthy number but compare with the likes of japan, the reflationary aspects of the u. S. Is less. 77 of the u. S. Economy is consumption at the end of the day. That increases the purchasing power. He has to balance this out. Manus he has to balance this out. The affordability in housing, that is going down. The second story involves harvey. Hurricane harvey which has now turned into storm harvey. This is the second one in the fallout is going to continue. Daybreak reports that u. S. Has made its first emergency draw of the strategic reserve. The storm could keep as much as 3 Million Barrels a day out of the refining system. This is when we begin to not only help the cost and the human side in the human side but also the squeeze in gasoline prices. That has been aggressive. In terms of the assessment of Hurricane Harvey at ubs, what is the thinking . Geoff our colleagues, 25 basis points. We really have the split of 15 basis points from unemployment, loss of employment and 10 basis points from trade. It is spread out over two quarters but there will be a recovery process. With natural disasters, things spread out over time. A very careful in looking at inflation until we get a night a nice upside from energy prices. Those are not the kind of reflationary or inflationary things you want to look at or desire. Manus the bond market will look through that. The fed will also look through that. The final story focuses on the u. S. And on the debt ceiling. President trump is considering attaching an increase in the u. S. That feeling for disaster funding u. S. Debt ceiling for disaster funding. I suppose this is one of those moments really where a horrendous personal and human raise the trump debt ceiling, at some disaster funding and maybe even remove the wall issue from the agenda. Been talkedhas about and i dont think markets really putting on any assumptions yet. As a sayof volatility in treas