Much as 2. 5 after those headlines, now back down to a healthy 1. 5 of a gain. 2925 is where we are. Etail and apparel makers tens spread doing well. The peso in argentina improving just a little bit, but still weaker buy another 3 today. On when we goter those headlines, we saw massive strengthening and the offshore yuan. We are reversing that again a slight little bit, but we went right through the seven mark and 699. 08. Guy the Trump Administration delaying tariffs, as weve learned this afternoon, on some chinese goods until middecember, including iphones. Apple rallying strongly. Buyd by having it best having a pretty solid day as well. We are joined by bloombergs mike regan. The market was feeling its way on the downside. This feels a bit like a short sweep. Do you buy the move . Reporter people are obviously buying it, with the caveat that who knows what the next headline or tweet might send it in the other direction. I think the surprise here is maybeeople were worried President Trump would get even more aggressive, that the 10 tariffs on the remaining goods would go to 25 to ratchet up tension even more before the talks in september. First we got the news that there was a telephone call between the u. S. And chinese sides today. Then the news that the tariffs are getting postponed. To pushit seems to be this past the christmas and Holiday Shopping season. Many of the goods being exempt are what would be on peoples holiday gift list. Electronics, computers, that sort of thing. The market for now is breathing a sigh of relief that at least the can is getting kicked down the road rather than it being an escalation of tensions going into september. Vonnie its interesting because we got the cpi data later this morning. It showed healthier inflation, but also if that were to escalate to quickly, it would hurt the consumer, impact federal reserve. Is that on the back burner now . Reporter its hard to say if the cpi played any role in the thinking of decisionmakers, but it certainly is an interesting coincidence. People rethinking how aggressive the fed could be when you have a hotter than expected cpi number like we saw this morning. Some of that price means coming out of the market to some degree. Guy what is the next big thing to look for . Retail sales is coming back up. That relates to the story as well. The consumer is a big factor in this. Presumably this is only going to preserve consumer strength. The u. S. Consumer is holding the world up right now. Reporter i think the situation in hong kong has moved into the forefront of peoples concerns especially how the u. S. Eventually will respond if china gets aggressive in cracking down on those protests. A lot of guessing going on about whether President Trump will stay out of that discussion completely, or possibly escalate things a little bit by getting involved and may be taking the side of those protesters. Theres a lot of risk events in the near future, but again, its august, when buying and commitment is light, so standby. We still have a few months to get through, and it could be choppy. Vonnie take us inside a board room, if you would. If you are at apple or best buy right now, your breathing a sigh of relief. Are you now making different kinds of decisions then you were literally two hours ago . Reporter there was a lot of pushing the supply chain forward, getting imports into the country before these tariffs hit. They dont necessarily have to be as aggressive with that type of decisionmaking now. That said, i doubt it will change anything too much because , granted, you want to get these imports in before the Holiday Season regardless, and there is just so much uncertainty that i imagine that notion of getting imports in before the proposed september tariffs, which now look like theyre going to the end of the year, so there could be some distortions in the thirdquarter earnings numbers caused by people pulling that supply chain forward in time to get ahead of the tariffs. Usnie it is a boon day for as well because we get to see mike regan twice today, back later on for battle of the charts. Guy id forgotten about that. Im going to be competing against him, so good luck, mike. Lets get more on the markets. Lets bring in andrew milligan, everything standards head of global strategy, joining us from edinburgh. Does this change anything in terms of your investment perspective . Stocks are up, risk assets higher, all up on the fact that trade may be isnt in the deepfreeze some had suggested. Your take . Andrew i dont think this changes much at all. We knew that investors were generally very negative, built up lots of cash. We have some good news ahead of the october 1 date for the communist party, ahead of the important prechristmas for many u. S. Companies, so donald trump and china decided to pull back a little. Weve got the issues concerning argentina and italy. Nothing changed there. It remains as ever. Guy the fed has highlighted trade as being a factor that it is worried about. Do you think this will change the trajectory for rate cuts this year . Im getting a strong sense that maybe andrew cant hear us. Andrew milligan, aberdeen investments head of global strategy, may return. We will see. Meantime, lets turn to things in hong kong. Tensions at hong kong airport with protesters forcing a Major Service outage for a second day running. This comes as the embattled local leader carrie lam warns the city is at risk of sliding into chaos. Lets go back to the airport now in hong kong. Yvonne man, Bloomberg Markets asia anchor joining us now. You were telling us earlier on the situation was getting even more volatile. Tell us whats happening now. It is approaching midnight, 23 07 in hong kong. What is the latest . Been a chaotic scene. What weve been seeing and hearing is that Police Officers arrived here after two days of this Service Disruption to the airport to try to dispel these crowds. It seems like things have deescalate it in the last couple of minutes because they were able to retrieve the man that the protesters had tied down earlier. We were talking about this man that protesters alleged was a mainland Public Security officer. They tied him down, he was beaten up, and they were dragged into the departure hall here. Firefighters and ambulance were trying to get him out, but protesters squeezed him here for hours, until finally Police Showed up. They were not wearing riot gear, i have to stress. And negotiator came and started talking to protesters who initially were trying to block Police Officers from coming in. It seems like with the help of medics, as well as even journalists, were able to help escort the man out. We are still seeing some commotion here today. Take a look at the departure hall at the moment. Most flights have been canceled. ,he arrival hall downstairs meanwhile, a lot of people have left in the last hour or so once they found out police were coming in and it was getting a little too riled up upstairs. That is the situation in the moment. Vonnie indeed, a very disturbing develop at that protesters would get physical with this man that they say is a Mainland Police officer who was pretending to be one of them. That was the pretext for their moves on this man. But the idea that it lasted for hours is quite disturbing. Who is organizing the protesters . Do you get the sense that it is a very centrally organized and wellrun protest, or is it becoming a little bit out of hand . I would say tonight, it was pretty intense some moments here. We were sitting here for hours, not sure what was the next step because they were continuing to crowd this area, climbing up the walls here, using umbrellas to cover the security cameras so that airport staff would and see what was going on. Even foreign journalists were trying to stop these crowds, and they were pushed out. At this point, things are looking a little bit better, but this certainly is a ratcheting of escalation. We will see what happens with beijing. The fact that this was allegedly , only allegedly right now, a Mainland Police officer, certainly the fact that he was tied down this way is not going to give beijing any type of solace here, and perhaps could be the Tipping Point to mobilize some of the mainland forces. We havent seen that yet. Weve seen some videos they posted this week of apparent military forces along the border in shenzhen, not far from hong kong. So far, they are still backing the Hong Kong Government and the chief executive carrie lam. Talk tonne, when you protesters, is there a sense yvonne be careful, be careful, be careful. Sorry, i missed your question. Guy i think that highlights some of the risks you are facing. Lets leave yvonne there. Im starting to be concerned about her safety. Are you ok . Vonnie we will get back to her shortly. That is yvonne man, our Bloomberg Markets asia anchor. No flights in or out, and protests generally into their 10th week now. Definitely escalation. It is coming close to midnight in hong kong. Meantime, lets check those markets because we did have that surge after those headlines that there was a call between the u. S. Trade representative and the vice premier of china, and that some tariffs would be delayed until december. That has stocks in the u. S. Rallying. The dow is up 1. 7 , the s p up 2 , the nasdaq up almost and theres they reaction in europe, too. Not as much, but we are seeing some nice bounces in european stocks as well. The story would have been in bonds if it wasnt for the trade story, because right now the two ten basis points. Yuan below seven, 7. 1216. Ow at still ahead, we will speak to steinhoff ceo louis du preez. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on Bloomberg Markets. 23 15 and hong kong. Lets get back to the 23 15 in hong kong. Lets get back to the hong kong airport with yvonne man. Quick check while we made sure you work ok you were ok. Are protesters they are trying to provoke hong kong . Riot police now look like they are fully kitted up, and riot police have arrived. Is this what they have been looking for . Yvonne im not sure this is what they were looking for. Certainly we have seen the various panic here in the last couple of minutes or so. As soon as they were able to remove the gentleman that these protesters say was a mainland Public Security officer, these protesters ran outside, tried to block the ambulance and police cars from moving, so they have been using these barricades to try to block them. All of a sudden, we saw a riot gear. You are seeing it right now. They are using trolleys to try entrancesome of the from Police Officers coming in. We did see several of the men riot gear marching in. They tried to step in a couple of steps, and then they eventually retreated. At this point, it is looking to be quite tense. We havent seen the next moves yet, but we have seen protesters getting on guard. Vonnie clearly an escalation with hong kong Police Officers. We must underline that it is hong kong Police Officers who have begun an operation. As you say, they came in after that man that was purported to have been a Mainland China security officer, purported by the protesters, after that man had been brought out, and officers went in. Do we know who ordered the men . Do we know who ordered them in . Do we know what they are trying to accomplish inside the airport . Yvonne i think at this point, what weve been seeing here, perhaps they are trying to disperse these crowds. We are still trying to confirm if this man that came in was in fact a Mainland Police officer, but he was undercover, some say. He was pretending to be a protester. Someone spotted him really close to where the airport express entrance is, just over there, and ended up dragging him over. We are not sure what the motive was at this point, but we have seen Police Officers themselves use more aggressive tactics here. They are wearing black tshirts and going undercover to infiltrate these crowds, trying to [indiscernible] we have seen protesters and Police Officers hardening their stances here. Tellingpoint, they are people downstairs to try to seek safety, maybe start leaving. We are seeing that people are still landing here in hong kong as we speak. It is not a complete standstill at the moment, although we see some canceled flights leaving hong kong, but people are arriving here at this moment. Guy the traveling public are getting mixed up in this. Is that what is happening here . Yvonne yes. In fact, we have seen frustration and confusion from many travelers coming in and out of hong kong. We saw at one point today when protesters were standing in unblocking the departure gates, protesters were blocking travelers from getting through. There were tourists as well trying to climb over these protesters to make it to their flight. It is getting a bit heated here, as well, but at this point we are not seeing a whole lot of travelers. I think most of them have been told to leave the terminal. The Checkout Services were closed as of 4 30 this afternoon. At this point, it is mostly protesters here. We still see some people coming in with luggage, but they have been told to contact their respective airlines. Take a look at that right now. You can see theyve used trolleys to try to block these entrances into the departure hall here. They were quick to move. Thats why we saw so much commotion at the get go here. We seen them do this in the past. Theyve used barricades and things to try to block police. They are going to try to make it back into the departure hall at this moment. We have not seen any Police Presence here in the last five days that protesters have sit in. We saw the people that were herding around this one man, and at one point it looked like he was unconscious. Ambulance and journalists were trying to tend to him. Dozen riot police has stepped in, reaching that lament to step in with force. We have not seen any kind of tear gas at the moment. That would certainly be a sight to see, if there is tear gas in the airport. They are taking more of a cautious approach, but at this moment they are coming in. Vonnie yvonne man, bloomberg anchor, there in the hong kong airport. There were loudspeaker announcements, so we will figure out exactly what they are trying to get done at hong kong airport, whether it is in operation by Hong Kong Police or just an evacuation of the airport. Lets bring in bloombergs Marty Schenker for the bigger picture. It does look like there is escalation to these protests, and at the same time, i. E. Huge effort to not let this get out of hand. Police,eeing hong kong nothing from Mainland China, apart from this man who may have been a spy. Marty thats part of why the situation is so dangerous, because of miscalculations on both sides. None of these people have a vast amount of experience in either protesting or responding to a protest, so there is always the danger of overreaction. You can see it there in very dramatic video. It is important to remember this is a video of a small area of the airport. The rest of the airport may be completely calm. You have to put this all in some context, but it is obviously a very difficult situation for the mainland chinese leadership. Guy marty, what are they going to do . Weve all seen the pictures of Security Forces on the border with shenzhen. Thats got to be the fear, right . Marty as we and others have observed, it is a very tough choice on the part of the mainland chinese leadership on how to respond to these incidents of economic consequence. On the one hand, china would love to see these protests just dissipate on their own. They are trying to negotiate a very fine line between firmness and letting these protests work their way through. Personally, it is my belief that the chinese have shown remarkable restraint. Vonnie right, because you believe the story that this man they found and alleged was a mainland security officer, and it is quite disturbing because the crowd apparently set upon him, hurt him, held him for hours, according to yvonne man, and just now able to get him out of the airport. That is quite disturbing because at that point, it is not a peaceful protest anymore on the part of the protesters. Marty thats right. And again, this could be miscalculation on the part of both sides of whatever that incident was. I dontturn out would be verye surprising if the chinese were in the vicinity, at least observing what is going on. So until we know the facts of what exactly took place, i wouldnt make too strong a conclusion on what it means. Tuesday,y, it is nearly wednesday in hong kong. This weekend there are the understanding at the moment is there is another massive protest being planned, one of the bigger ones. Far . E going to get that do you think the chinese will let that protest go ahead . The weekend seems to be getting more and more violent this week to seems to be getting more and more violent. Marty there have been no attempt to restrict these protests in the past. Whether the chinese try to figure out a new way of addressing this issue, it would have to come within the next few days. I suspect the chinese will again try to do their best to keep it it may, as this incident at the airport shows, it is very difficult to keep the control dials on such a volatile situation. Vonnie carrie lam obviously is in a very awkward position. On one hand, this is her responsibility. On the other hand, she is probably closely listening to Mainland China. Do you think they are speaking right now . Yvonne whether there are marty whether there are direct discussions, they are definitely commuting in some for definitely communicating in some form or another. Shes also tried her best to acknowledge the issues that the protesters seem to be raising, while at the same time pointing out to everyone the economic and political consequences of their willns, hoping that that calm down the protests. Every time when they withdrew