Yuan down 477. Beijing sites protectionism as agriculturallt imports. Asian equities down the most since october last year. European and u. S. Futures point to another day of heavy license heavy losses. Hsbcs ceo steps down. Good morning, matt. Matt good morning. Less than half an hour away from the start of european trading and it will be a negative session judging by futures. Gold surging again back to the highest level we have seen since 2013 as investors seek safe havens. Look at the futures trade across europe, a loss of more than 1 in ftse futures. We are dax futures down 1. 3 . It looks like it could be a very negative open. What are you seeing on the gmm . Anna a very negative session essentially through the asian markets as china hits back. The chinese currency being allowed to weekend weaken through seven. China asking importers not to buy u. S. Agricultural products. This is what we are seeing in the markets in the asian markets. You dont see china itself on the gmm, its not the worst performer today. Featuring inna terms of stimulus measures. You see china featuring strongly on the ethics part of the gmm guess we have very as of the chinese currency all showing a seven handle. This is one of the big moves in the fx market, and we should also talk about the yen, a lot of money going into the japanese currency as a sign of searching for havens. On the other side, more of a haven flow, havens as portrayed hereby sovereign bonds. Money going into sovereign bonds. Eye on what is going on in commodities, because hit seeing iron ore prices hard this morning. Not quite decimated. Down 8. 2 this morning. They are considerably weaker. We will keep an eye on the start of the european trading day and what we see for mining stocks as a result. Plenty to talk about today. Our lives strategist in singapore joins us to talk us through what has been going on. How have things unfolded with the yuan through the session . Good morning. Dayas been a real frenzied when the yuan started falling. Everything sort of roque broke loose and it has been busy all day. The big flows were out of stocks and into bonds. Treasuries had a good day. Currencies were very active today. Different countries face different currency issues. Wonsouth korea, it is the tumbling and in japan some of the insurgent. Is themonality we saw authorities in south korea, japan, and korea and china all talks about seeking stability in their currencies and their markets. Even though countries face different currency issues, what they seem to have in common is that they object to disorderly trading. I think that raises a chance that Asian Central banks will intervene on behalf of of their currencies in the days ahead. I think it also shows that the fact that these Central Banks made comments, policymakers were sort of caught up in this tailwind, maybe caught offguard if you like, just as much as traders. Matt what is the big takeaway from markets today in terms of trade and in terms of the longerterm outlook . Wes i think the big takeaway is use thena is willing to currency as a weapon in the trade war, to weaponize the yuan. Knowp of that, we saw, you , that china will stop the import of u. S. Agricultural goods. We have the story on bloomberg saying that china is finally playing hardball with the United States and i think that sums it up. But china is willing to weaponize the one. The big flows weaponize the yuan. The big flows out of stocks into bonds as the trade war heats up. Anna also into gold and maybe even into bitcoin. What are you seeing in the havens . Whatever this comes up, i try to remind myself, what do gold and bitcoin have in common . The answer is that neither one of them pay interest. Fall, and the 10 year treasury yield sliced through 10 and 2 and its at 1. 7 last time i looked. That reduces the appeal of investing in fixed income securities, and gold and bitcoin gain appeal. I think old and bitcoin will draw support. You for joining us. Wes goodman. Just want to point out to viewers, we are asking the live question, which assets will suffer the most from the you want breach of seven the yuan breach of seven . You can join the conversation. And dont just say all assets denominated in you on, because that is the easy answer. We want something else. Wes goodman, from the live team. You can join the debate. Ib go on your bloomberg. Lets get the first word from anabel in hong kong. Protesters may ruin hong kong. Thats the war in warning from carrie lam. This as demonstrators moved to shut down transportation. , the trainscommute were inoperable. This is the ninth weekend of unrest. Such extensive disruptions in the name of demands or uncooperative movements have kongsly undermined hong line order. , theare pushing our city and many of use, helped to build, to the verge of a very dangerous situation. Two Mass Shootings in the u. S. This weekend. At least 30 dead and many more wounded. Wasowded walmart in el paso the target of one shooter, at least 20 killed before the suspect was arrested. Hours later in dayton, ohio, a gunman opened shire opened fire. Killed 10 and wounded dozens others. Walmart says it has no plans to stop selling guns or ammunition or change any Retail Security practices. That is according to a company spokesman. All mark says it already goes above and beyond federal law in background checks. The spokesman saying the company is a responsible seller of firearms. Confirmed media has the state has seized another oil tanker. It is the third in recent weeks. Was an iraqi it vessel but that is denied by baghdad. These latest moves and the concerns about the safety of shipping in the strait of hormuz. The uks new Prime Minister has dramatically boosted public spending since he took office. It feels speculation that Boris Johnson is preparing for a general election. Today, he will lay out the details of his 1. 80 in pound boost to nhs. Followsers this infrastructure spending. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you very much. Up next, flint out. Just 18eo leaves after months in the job. The chairman saying right now on a Conference Call that current u. S. Returns are not acceptable. That from the cfo. We will talk about the future of aspc. Remember, luber radio is live on your device doesnt Bloomberg Radio is live on your device and london radio. This is bloomberg. Welcome back to Bloomberg Markets, this is a european open. You are looking at live pictures of hong kong. Riot police repairing preparing for, or participating in the protection side. The unrest continues. The city faces shutdown really from widespread strike action. We already see it happening in terms of airlines and in terms of rail travel and reduced tourism. Definitely a concern from an economic standpoint as well as from a human standpoint. Down asnt is a stepping the ceo of the Hong Kong Shanghai banking corporation, hsbc. His surprised up archer comes after just 18 months in the top job. This after a Share Buyback of up to 1 billion. The stock is trading lower in hong kong. Joining us is the senior banking analysts from bloomberg intelligence. Jonathan, as i read through the story, it seems like the flint track, henk back on achieved the positive john just jobs a ratio jobs a ratio. Why is he also resigning . I wouldnt say its back on track, its been a multiyear effort. This is just one quarter. But the numbers are good. I think stepping back, the apples the outlook has changed. You have u. S. China trade tensions. They need to sort out the Investment Bank because that was a bit weak. The going to miss a 6 return on capital in 2020 in the u. S. I was just talking to anna. He was 30 years in the mold of stuart gulliver. Going to go to a u. S. Investment bank and get a heavy cantor heavy hitter. The world has changed. Anna thats an interesting point. We have the call with analysts taking place at the moment. U. S. Chinaing the tensions aggressively impacts the outlook. This isnt just about what is happening in the global picture, is it . , i suppose linked to that, its about finding the right person for changing times. Jonathan exactly. If you go back five years, this is a restructuring story, they shed assets and now it is a by backstory. More recently we returned to growth. Had they managed the growth opposed to growth and caused. But if revenues are going to fall off a cliff or struggle, the game has changed. His is about efficiently efficiency. There are two areas where they are some par. Anna the cfo saying they are not on track for u. S. Turnaround. Matt what is the outlook . Jonathan relative to most banks, pretty rosy. You can see the share price is down less than the market. People are taking this well, and it is a good set of numbers. Important and. Is the margins are more than 10 basis points. Hong kong was flaccid but it will come back down. The outlook is, youre going to get revenue cuts, i expect, that is not as if you have a shrieking revenue pool, 5 or 6 . You will have to trim costs in slow investment. Anna to your point, they continue to caution on the u. K. In particular, yet its a global business. Jonathan but it has an enormous balance sheet. 7 u. K. Mortgage market show. Had they refinanced, they tens of billions of deposits they had nothing to do with. They are the most aggressive in the mortgage space, and one of the areas of loan growth outside of china. Its very important for them. But the u. K. Is a horrible place to do business. Anna thank you, jonathan. Our senior banking analyst at bloomberg intelligence. Lets get a business flash. E is an adult rulers annabel you ruler central hong kong. Last quarter, Berkshire Hathaway sold 1 billion more in stocks that it bought. Thats the biggest net selling since the end of 2017. The companys cash hoard is now a record 122 billion. A mergers looking into with fiat. Court a 42 ing to stake in the japanese partner. They would need approval from france, which owns 60 of her know. Renault. Heathrow officials and Union Leaders have agreed to talk with mediators over a pay dispute. Security guards, firefighters and engineers had threatened to walk from midnight sunday night. Some flights at already been canceled. Hazlitt is bringing back the free and unlimited supercharging perk. Back theis bringing free and unlimited supercharging perk for the model s and model x. It had been removed as part of costsaving measure. Elon musk described the superchargers as key to sales. That is your Bloomberg Business flash. Matt thank you very much, anabel jewelers in hong kong. Lets take a look at futures ahead of a market open that could be down 1 or more. Ftse futures off 1 . Dax futures down 142 . Markets, drop in asian concern about trade not only hurting equities last week, but it looks like it will continue this week as well. Definitely looks like it will be a very risk off session. We are minutes away from the start of cash trading, about 10 minutes ago until the opening bell. We will take a look at your stocks to watch at the open. Just eat is one we will focus on, the Food Delivery Company has agreed to combine with takeaway. Com in a 6 billion deal. This is bloomberg. Welcome back to Bloomberg Markets european open. Eight minutes to go until the start of the equity trading day. Thats get your stocks to watch. Ourrger is looking team is here. Lets talk about combinations in the food delivery sector. What is the story . We have just eat and takeaway. Com. It will be just eat takeaway. Com. They agreed on a 6 billion deal. T each shareholders get it get about 58 just eat shareholders get about 58 . Startupsfend off other in a crowded food delivery space. Takeaway. Com, and they will control the majority of that company. Ers . What is the news on min it is not good news for miners. The trade war, u. S. China trade relation is causing iron ore the fall. It had risen quite a lot this year and now some of the drivers are falling away. Also copper is falling, partly because of trade. Recently everywhere you look for miners, its a down day. Anna iron ore down by 8. 2 . Elliott is taking a stake here, and they are known for making demands and they are making a few. Already making a few. They want a more aggressive buybacks program from scout 24, as well as fully separating out auto scout 24. Their stake is higher than 7 , called higher maybe because they say these reviews will boost shares to 65 euros. Currently trading at about 50 euros per share. Much fornks very joining us. You can get the latest stock stories from our Equities Team by going to first go on your number terminal or on the mobile app. I want to look at bonds. This is going to be one of the haven trades many are rushing into it jim into. German bunds falling down to 53 basis points. The french 10 year down. The spanish tenure is still positive so you get some sort of return on spanish and italian debt, 1. 4 there. The market open and futures pointing to a very negative open. We could see drops of 1 or more. We see drops of 2 or more in asian stocks. Last weeke we saw continues in equities on todays trade ticket golf the start of the week trade to kick off the start of the week. And hsbc is losing its ceo. Anna after just 18 months. The stock down in hong kong, which is outperforming the broader market. The Asian Session has been very negative, 2. 9 in hong kong. We will wait for a negative start to the trading day in europe and then we will bring you the big movers and anything related to trade tensions as a focus. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Grexit minute to go until the start of cash equities trading. Another start for the cash equity trade. Weve seen heavy selling in the equity market session over in asia. This is part of the story building, part of the retaliation coming through from china as well as stopping agricultural imports from the u. S. , also allowing the currency to weaken through that seven mark. The iron ore price, a little bit weaker a lot weaker in fact, in the Asian Session. That could be an important factor with whats going on in london. Thats all to do with the latest in the trade tensions. As money goes into bond markets, haven, also safe going into the yen, bitcoin, gold. We also see weakness in the futures story. We had s ps s p futures showing weakness and this is what we expected to see in europe. Real witness for the london market, the german market, and also expected in paris. A host of factors to add in, but they all have a very similar source, and thats ongoing trade tensions between the u. S. And china weighing on Commodity Prices very heavily, iron ore, oil. It has weighed on equity markets, pushed money into this safe haven assets and brought down yields. A lot of movement in these markets driven by similar news flow. Lets put numbers around some of the things i just mentioned. The ftse 100 down by just over 1 this morning. Sometimes they been talking about the movement in the pound and we see once again pound weakness, Dollar Strength today. Sometimes that cushions what we see on the london market, but not today, though. The ftse falling with the rest. The dollar index is showing a little bit of strength this. 1 . Ng as we see it up by lets have a look at things on a sector breakdown. Just like friday, theres not much sector news to talk about in the sense that this all in tide is dropping all of these boats. You can see the consumer discretionary. Greensee one area of coming through on staples, but essentially, we are weaker across these european a can markets, financials, health care, all of these sectors in negative territory. This is a day where there are individual movers, but its a big picture around trade tensions in retaliation from china back to the u. S. That is really dominating the news flow. Matt absolutely. We see as a result, the stoxx 600 falling right now. Only 37 stocks are up to minutes into trade. Stocks on thegest stoxx 600 is the only or the big gainer that i can see here. Here are other gainers those are the utilities that are but one ofainers, the only big stocks is helping to boost the stoxx 600. On the losing side, you have pretty much everything else. Lvmh, we saw this last week, the Luxury Goods Companies tend to fall on a day like today, and you can see lvmh down 2. 5 percent. Rio tinto down almost 4. 5 right now. Anything even remotely related to copper, but especially those that mine it are going to hit get hit today as you saw the drop in copper. Luxury stocks losing. As well as some of the other oil stocks down, too. Bp falling right now. Royal dutch shell falling right now, being a big weight on these indexes. European markets opening lower. This comes as trade escalated between the u. S. And china, spurring the biggest selloff in asian equities since october. Joining us now, the head of macro strategy for india at state street. Not great news if you are long the markets, i suppose, but we see European Equity markets opening down by just over 1 . Give us the context through which you look at the latest developments. I have heard some suggest we need some kind of Circuit Breaker between the u. S. And china. Whats your thought . I dont know what that Circuit Breaker is going to be near term. If you work of the belief that a lot of this was trump electioneering such that he could get positive results at some point ahead of 2020 elections, does not really look like that is happening, or if it is, a Circuit Breaker is going to have to come soon enough. I think this is a continuation of what weve seen over the last 18 months. Really, we have probably been speculating about some resolutions in that we are not in these rooms. We are not s