Epstein death, attorney general william barr says that the prison had serious irregularities. He is speaking in new orleans, saying that the prison had serious irregularities. The case was personally important to him, that the victims deserve justice, and they will get it. Quite strong comments from attorney general william barr. We will get to the bottom of it, and there will be accountability. Lets get to those markets here in the u. S. Stocks are lower, as are yields. The 10 year at 1. 67 . 7. 095, once yuan at again weaker fixing on the part of the pboc onshore. At 105. 28. 1. 2508 guy the other big story dominating things, the latest on hong kong. Officials are working to reopen the International Airport at 6 a. M. Tuesday. Thousands of protesters occupied the main terminals and protests that saw the police fired tear gas and rubber bullets at close range. S asiag us is bloomberg anchor yvonne man. They want to reopen the airport. Does it look possible at this point . Yvonne we will see how it goes. They are looking to get things going again at 6 00 a. M. Tuesday morning local time here in hong kong. We are still seeing quite a lively bunch here. Theres a crowd that dwindled from thousands to may be hundreds, but we have seen nothing like this before, where a political demonstration was demonstration paralyzed to the hong kong International Airport. This is a major asia transport hub. Tumbled on this situation. Even if we are seeing perhaps some restoration of operations, we could still be dealing with symptom delays with some delays for flights into hong kong. We are not sure how long these protesters are going to stay. At this point, we havent seen any kind of Police Presence right now, but they did talk about the fact that they have not rule out using tear gas to clear out the crowds here. You hear them chanting as we speak, but perhaps police at that point taking more of a cautious approach after what was yet another violent weekend. Vonnie do the protesters feel they are getting somewhere with this . at this point, not a whole lot. We heard from carrie lam over the weekend. She came out and talked, but nothing about any kind of concessions. She said she was talking about raising boulder measures raising bolder measures and trying to fix the housing situation overall. At this rate, it seems like both sides, the protesters and the government and police, are hardening their stance. You saw over the weekend protesters blocking Public Transportation and surrounding police headquarters, throwing petrol bombs as well. Police also getting more aggressive in their tactics, ubwayg tear gas in s stations for the first time, even going undercover and infiltrating some of these crowds and arresting them. Beijing, too, ramping up the rhetoric today, saying that these are serious crimes the protesters are committing, and that they are seeing signs of terrorism. Vonnie yvonne man, terrific reporting. Thank you. Guy lets get more on the situation escalating in hong kong and the application for Global Markets. ,e are joined by Chris Watling longview economics ceo and chief Market Strategist. If you told me months ago that hong kong would be a big problem for bubble markets, i would have told you that was a oneoff event. If we were to see the situation , how big a game changer with this be for Global Markets . How big a shock could this provide . Chris it could be the straw that breaks the camels back the camels back. Theou change the nature of Chinahong Kong relationship, it could change the way the chinau. S. Trade relations continue. It is a shock at a time when the markets are very vulnerable to any sort of negative news flow. This is the sort of thing that could be that straw that broke the camels back, as i say. Guy in terms of giving us an understanding of where the chinese are, the chinese are aware of those risks and the economic implications that hong kong could provide for their own economy, yet hong kong is so important from a political point of view as well that they dont want this to spread. People in china read newspapers, they see what is happening in hong kong on the television screens. They understand how important this is. The chinese authorities at some point have to take a political decision rather than an economic decision. You wonder whether you have to fold that into the trade narrative, too. And the people in Mainland China may see that people in hong kong are getting away with demonstrations and so on, and they are not being clamped down on too hard, so they may rise up themselves. It catches and it spreads. That is a big Political Risk for the chinese. In too hard, it could affect negotiations in the economy. If you dont stop it, you end up with the possibility of it spreading to the mainland. Why is there such demand, then, for Chinese Government debt . Chris good point. At the moment, Chinese Government debt is following what the rest of the world is doing. The rest of the world is panicking about deflationary forces. It is in a risk off mode and has been since late july. It may also be that at the margin, this adds to a bit of a slowdown risking china. Personally, we think the chinese economy is rhea seller rating. I think the economy is caught up in a global move. And my mind, what weve seen in the last month or so is probably the start of a real bubble building in the bond market. I think weve talked about bond market bubbles on and off for years, but i think this should come back to the table. A lot of the pressure globally is somewhat parabolic. Theres some strange things going on in the bond market, and i think china is caught up in that. Vonnie youve also said you think the chinese economy is about to reaccelerate. Is that with or without more stimulus from the Chinese Government . Chris i think a lot of the stimulus is in. I suspect we will get more as well. If im running chinese policy, im concerned about the global trade policy and the trade war, i want more stimuli to counteract that. I think it will come, whether it is more cuts interest rates, i dont now. If you look at the leading indicators of credit growth, they suggest that credit growth should continue to accelerate in china over the next six to 12 months. Guy chris, we are going to hold it there. Chris is going to stick with us. Chris watling, longview economics ceo and chief Market Strategist, sticking with us. Vonnie in the u. S. , major indices are lower. , theve been playing around s p 500 come around the 2900 mark. The nasdaq and the dow are lower. The 10 year yield, 1. 665 right now. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy in london, im guy johnson. This is the european close on Bloomberg Markets on Bloomberg Markets. Quest for fulls control of italy has started, and started on the beaches. Hes calling for swift elections that would likely at this point hand the majority to him and parliament. Joining us from italy is bloombergs maria tadeo. Vini once elections is bloombergs maria tadeo. Salvini wants elections. Is he going to get them . Maria we dont know the timing of this because this is happening in summer. Everyone is trying to assess what are the best options. I spoke to salvini yesterday, who is in full Campaign Mode herein sicily. This is an area of the country that many would not vote for the league. There is a divide between the north on the south, and salvini says he wants to bridge that. He says there is no plan to quit the euro or take italy out of the European Union, but the market does worry about Political Uncertainty that could come, and they worry about the lack of clarity in terms of any future date. We are waiting to get a noconfidence vote that would eventually put an end to this coalition. The Italian Government is still standing, antiseptic onto and and giuiquant to still very much in power. There is a planned tax hike for 2020, and that is politically tense. He spoke topeople yesterday, and i was on the ground to hear what was really a marathon day for salvini, many voters touched on migration, on national security. In the psyche of many italians, they feel that the migration crisis was poorly handled. They feel they had to do all the heavy lifting, and the European Union did not help. This is an area where salvini is good. He talks and speaks very tough. He says he wants to reduce migration and cut taxes. That sounds goods for many italians and southern italians, who a few years ago would never have voted for a man of the north. But it is unclear whether the timing works in salvinis favor. Speculation is that perhaps he called this snap crisis a little election and that as we go to an election at the end of the year, that momentum may fade away. Vonnie bloombergs maria tadeo from sicily, thank you for that. Lets get a check of Global Markets with abigail doolittle. Abigail it is a risk off monday. Take a look at Global Equity indexes on this board. The s p 500 and the nasdaq down for a second day in a row, down about 1 . Pretty serious declines. 1 stoxx 600 down tenths of down 4 10 of 1 . Investors moving away from risk. There doesnt seem to be an exact trigger, although around headlines, webarr did take a led lower take a leg lower. That plus trade tensions and Economic Data out of Europe Clearly weighing. That has caused a rally for bonds. Lets take a look at a 12 day chart for the 10 year yields. Only a few updates over this losing 42 basis points over a very short period of time, a little more than two weeks. The 10 year yield now at 2. 166 the 10 year yield now at 1. 66 . Bloomberg to see what is happening here, first of all, all 11 sectors lower. The bottom of the financials being weighed on by falling yields. Lending activity expected to not be as strong. It is helping out the defensive sectors. Those tend to have higher dividends, so when yields falls, those look more attractive. On those financials, the worst too,r in the u. S. Is true, to some degree in europe. In europe, Deutsche Bank and commerzbank, the european banking woes continuing. We are seeing it in these shares. Guy commerzbank at a record low today, amazing to see. Thank you very much indeed. Lets turn back to the argentina story. Their assets taking an absolute beating following this weekends political event this weekends this political event. Losingnt Mauricio Macri in a prior election in a primary election by more than expected. With us still is Chris Watling. Things have moved really quite aggressively and argentina. Is this an e. M. Event or an argentina event . Chris i think it is an argentina event. Weve gone from a guy who is good at controlling the money supply, seems to be attempting to get the economy back in order, we know from argentinas problems from decades and decades, we will probably go back to the left wing stuff, the creation of money, and that is why the currency is also much and the market as well. It is not really surprising. Guy its another return to populism. Its a theme that there are dots you can join here. Chris thats a fair point. Em orats not just an western thesis. That is a global thesis. Really, you can pin it down to one clear event. It is a guy and power who is no longer going to be in power, and leftwing policies are going to come on the back of it. Vonnie but we are seeing some contagion. , afterlook at currencies the peso as the worst performer, the colombian and mexican peso, too. Chris there will be knockoff impacts across south america because argentina is one of the bigger economies in that region. Clearly there is impact on the latin american region as a whole. Those economies pick that up. I think emergingmarket currencies in general, certainly they have been very weak in recent weeks. I suspect this is just an acceleration of that trend. To whatso curious as your broader thoughts are on a Global Economic slowdown. One . E close to chris i think weve had the slow down, and we are in the trough of that growth slowdown. It has been centered in manufacturing into global trade cycle. It is not helped by the u. S. Chinese trade war. Monetary policy was tightened throughout 2018 and much of the world, and only now we are seeing the final effects of that come through. Central banks are now going absolutely the other way. The world is easing, and you can see if you look at global gdp waited growth, it has been turning up the last few months. That should lead Global Economic activity. Guy the dollar has traded at extremes because the rest of the world isnt growing, and the u. S. Consumer has been the only real agent of growth. As the rest of the world reaccelerates, as soon as the dollar goes down. I have to say, some of the normal relationship has been a bit distorted in recent months by this trade war. Em should have already been outperforming dm, along with the gold price. Guy if the trade war gets worse , are you still confident that the reacceleration process will carry on. Chris i think it will. Guy sections go on in september, then get applied more aggressively. May be the total levels go up. The chinese respond, rare earths, i dont know. But lets assume the escalation continues. Chris the base case is we are in an ongoing trade war that is not going to go away very quickly. Ows, so ive ebbs and fl think that is the base case assumption. I think in that, you get more stimulus globally, so equity markets can benefit. Guy chris, stick around. Chris watling come along view watling, ceo chris longview economics ceo and chief Market Strategist, stays with us. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on Bloomberg Markets. Saudi remco is making headlines today saudi aramcos meeting headlines today, taking a 20 stake in Indias Reliance Industries oil and chemicals unit. Net profits fell to about 47 billion to two lower oil prices. The company held its first ever Earnings Call today, preparing to go public as soon as next year. The boards at cbs and viacom worked through the night to try and determine a price for their longawaited merger. Determine chairman would be sherry redstone, whose family Investment Vehicle controls both companies. Viacoms ceo would lead the new company. Shares of Germanys Commerzbank fell to a record today. That cap they roller coaster ride that saw the stock more than double after that capped a roller coaster ride that saw the stock more than double after unannounced turnaround plan, although stocks have fallen over the last year and a half. We are seeing some earnings reportsd analyst waiting on retail data this week, specifically from china. Guy european stocks initially climbing this morning, but fading as the day has progressed. We are trading very close to session lows at the moment. However, i will put a caveat on that, and that is that volume is quite low today. This time last week, not the case, but now it definitely feels like august. We are seeing very light volume on this side of the atlantic. We will be back with more detail on what is happening with these markets. We are heading towards the clothes. This is towards the close. This is bloomberg. 30 seconds until the end of regular trading in europe. Does not look like much is happening. The spanish market down more than most. Everything else is flat lying. It did not start off that way. This morning it looked like european stocks would catch a decent bid. Higher this morning. As the morning progressed, the story faded. Most of the session has been in a very tight trading range. Not a lot of action for european equities. Volume light. Today feels like an august monday. Lets take a look at what has been going on with the individuals. The ftse down. 2 . Minors are weaker. The dax absolutely flat. Exchange, theck banks getting downgraded. They are under pressure. Spain feels like that story. Lets take a look at where the sector story takes us. Notot you can do dos a lot you can deduce. Chemicals trading strongly. Into the chemicals sector, five of the stocks are doing well. Utilities trading higher. Health care kitching a bit but the numbers are nothing to write home about. The bottom of the market a little bit more exciting. We are seeing the market rotating away from you have the banks trading lower. Banks on both sides of the atlantic not having a great day. Commerzbank hitting a letter hitting a record low today. The Mining Sector down. Retail is lower, but the banks doing the damage in the session. Very tight range. A few individual names were focusing on. There has been a little m a in europe. Ms making a bit for oz ram. Osram has a deal with private equity companies. Ams is trying to get in on that deal. Osram trading to the upside. Follow oil a standout tullow oil a standout story. Having a solid day. I want to highlight the airlines. We see what is going on in hong kong. Down 2. 45 . Some of the other European Airlines have been trading down as well. Im not sure you can directly correlate it to what is going on in hong kong. Very quiet market. A tight trading range throughout most of the afternoon. That is look at the european close. Vonnie in the u. S. We are seeing yields lower and stocks lower as well. The s p 500 dragged lower by banks and energy companies. And the twold 10 spread just above eight basis points. Topped 60 ae peso little bit early. We are back down to 55, but it is still weaker about a fifth of what its value had been versus the u. S. Dollar. Lets take a look at stocks being on the move. You have a deal being outed viacomcbs. Viacom down and cbs lower fractionally. The terms of the deal we are hearing about would give cbs a slight premium. Cbs shareholders