Since worst month 20112012 for that group on the top. At the aussie and kiwi dollars and the kiwi took out its 2016 low and we are now for the lowest level since september 2015. Youve see ny onshore, got this chart. We have the worst month in seven years of e. M. Fx. We also have traders with the onshore yuan weaker than the official reference. David the two Exchange Rates and the fix. We will you show you the chart later on but backward looking. It sets us up in april various situation precarious situation into september. Yvonne we are still dealing with the headline risk. President trump saying the u. S. And china will renew trade calls, although he offered no details or timeline on what happens next. He spoke after beijing indicated it mauled immediately retaliate against additional increases and wants to prevent further escalation. The u. S. Is said to slap extra tariffs on 110 billion worth of imports on sunday. China vowed to strike back with levies of 75 billion of goods but said it will hold off for now on more duties for december. Joining us, jennifer hillman, council on foreign relations, senior fellow for trade. She is a former wto trade official. Good morning from hong kong. Nearer an incremental partial deal between these two sides . I think the increment is very small. It is a good gesture on the part of the chinese not to go ahead with the retaliations but you havent heard anything from the United States that would indicate the tariffs that are planned for sunday will not go on. We have not seen much of a big step. Of the two sides in your view, intractable positions . I could turn around the other way, is it politics holding this up . Jennifer no i think there is a lot at stake here and i think it will be hard to see a deal for three reasons. It is clear the chinese increasingly do not trust president trump. They are not sure they can take him at his word. They are not sure what his word actually is given he seems to be going back and forth, and that makes it hard to get a deal. Secondly, the chinese rightfully dont know what it is the United States wants. When this all started it was under the socalled section 301 report that focused on intellectual property and Technology Transfers and to some lesser degree subsidies and stateowned enterprises, particularly in and around the industry connected to made in china 2025 and get the first thing you heard out of the trump administrations mouth when they got to beijing was all about the bilateral trade deficit. China has the by more american goods. And you added in huawei whether this is a Technology War more than a trade war, then when you think about what happened even a week ago, the president says he is ordering u. S. Companies to withdraw from china, clearly indicating the real intent here is to force a decoupling between the United States and china and until and unless the United States can be very clear about what exactly their goals are and communicate those clearly to china and that those goals are achievable and attainable, i think he will be very hard to see how we get an agreement. Yvonne could we get an agreement before the 2020 elections, i wonder . A trade deal necessary for him to get reelected or is it positive for him to continue stance against china . Jennifer it is cutting both ways. You are seeing an increasing call from many of president trumps strongest supporters to stop the escalation in the war and get an agreement. You heard even today an oped in the Washington Post i the head of the Largest Business Group in the United States chamber of commerce calling unequivocally for the president to stop the escalation and urging him to get a deal. One of theoday from large, conservative think tanks, the heritage foundation, saying the evidence is clear the tariffs are not working. The tariffs are harming the American People. It is the American People, not china paying these tariffs and it is causing a lot of economic pain. I think you are starting to see a turning in the United States. The president has been trying to to the farmers, the ones on the receiving end with the most amount of pain that has been caused by the chinese retaliation, do your patriotic duty. Stay the course. This is all the means to an end and the end is in essence just around the corner, and what you are seeing now is people dont believe that. A, they are not sure there is just a means to an end and maybe in fact the end is really this decoupling from china. Second, they dont see it as around the corner. I think there is beginning to be more of a push back to say that either we need a deal now or we need some kind of clarification on where we are going and the escalation tariffs are harming and not hurting us getting closer to a deal. There is another part of his base and some of his ideological mentors and this fits into the narrative coming out of beijing that this is all done to keep china down. If that is the case, he would endure this pain and let the American People have that pain for a while if that is his ultimate objective. What is your view of that . Jennifer i dont know that i think that is his ultimate objective. The ultimate objective of some in his white house is clearly this notion of decoupling. That they want to push force his tweet a week ago, i hereby order all u. S. Companies to start looking to plot of china, even though he does not have the Legal Authority to Order Companies to a lot of china, he tweeted it anyway. It leads to the notion that maybe the goal. Anybody currently doing business in china to pull back out of china. What is the goal of doing that . I dont believe the president s goal is to put down china. I believe his goal is he wants these American Companies back home again. Company that is selling product in the United States to make a product in the United States and i think he believes the way to get there is you build a big tariff wall around the United States and therefore the only way you can get into our market in the u. S. Is to actually make your product here. I worry about, whether the message is being received in china as the one year question raises. It isncern is whether perception and it starts to create more of an enemy relationship, if you will, for a very adversarial relationship between china and the United States. David it certainly incentivizes the communist party to look strong, as well as flex its muscles. To pick up on what you are mentioning, do you think in order to address the tradetional structural imbalances, do you think donald trump is welling to self a recession in the u. S. , or does it get bad enough before the elections that he turns around and signs a bad deal . Jennifer i think the latter. I think the idea that the United States could be in a recession and he could be reelected are not possible. He sees that really the strongest argument hes got going for his reelection is a good economy. He really does believe that his trade measures are pushing the United States into a recession, he will retreat or will do something else. It is clear already he is trying to press the fed to lower Interest Rates. They are talking about another a way to offset the negative effects of the tariffs. President isor the it requires him to actually admit that the tariffs are causing harm and that is going to be very difficult for them to do. It requires them to admit it is americans paying the tariffs and not the chinese are others, and i think it will push him to have doing knowledge that china has responded to a lot of this by exporting elsewhere, by purchasing their inputs from elsewhere, and by engaging in lowering its tariffs to everyone else in the world, which has been caused a lot of so china has not suffered to the degree that the president is suggesting they have. Tonne i want to switch another trade tension we have been following between japan and south korea. Both sides say they are following the wto rules. As a former trade official, who is right . Jennifer this is a difficult dispute and unfortunately, i fear both sides are getting increasingly dug in. The argument to koreans are making is what japan is effectively doing is putting a quota of zero, making it difficult to export some of the parts of semiconductors and other materials that japan has now put onto effectively and export control list. It has made it harder to do exports. It is a violation of the wto to bar exports leaving your country. You are not allowed to have effectively a quota of zero on any of your exports, and in that sense korea is correct. On the other hand, japan will argue there is an exception to the rules in the wto if you are doing something for National Security purposes, so japan is going to try to argue that there are rules in the wto that allow you to break that commitment that says i will not put a zero quota on exports. You can break it if you are doing it under the terms of the National Security exception to the wto. For japan is that National Security exception is fairly limited. You have to show that the goods involved involve either trading in Nuclear Material or trafficking in arms or ammunition or implements of war, or were taken at the time of war or other emergency that is somewhat akin to a war. That will be very hard for japan to say. Thank you so much for joining us. Jennifer hillman, thank you. Lets have a look at what is going on with the first word news as we head to new york and join su keenan. Globalentina, s p ratings is cutting argentinas local and foreign debt to after it saidt it will postpone payments on more than 100 billion in debt. The government will delay 700 billion in payments on shortterm local mode spell held by Institutional Investors this year and will seek a of 50ry repro filing billion of longerterm debt. Meet. K. And eu teams will twice a week next month to resolve the brexit impasse. Both sides are playing down the chances of a breakthrough. Prime minister johnsons office says they remain some distance apart on key issues and the eu is still waiting for what it calls concrete proposals from the u. K. President Christine Lagarde is offering signs she will stay on the dovish pat said by mario draghi. In her first comments on policy since winning the job, she says the bank has the tools to tackle the downturn in europe and must be ready to use them. Policy makers meet in two weeks and are expected to launch another round of stimulus. Lagarde takes the reins at the ecb in november. U. S. Prosecutors are investigating huawei over new allegations of technology theft, this according to a dow jones report. Beyond existing criminal cases against the company and features accusations intellectualaling property from multiple people and companies over several years. Huawei said it is committed to complying with laws and proper ip process. Oni cant really comment ongoing litigation and i believe related investigations. Ip theftncerned about as anyone because we hold a significant number of patents and we want to see those issues addressed, but we are a process and due handling of ip in appropriate manners. Su global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. Still ahead, Hong Kong RetailSales Numbers show we are at decade lows as tourists we will preview another week. David we are driving the path ceorofitability, the uber will tell us how the company is closer than ever to making money. This is bloomberg. Yvonne today marks two years since the new ceo took the wheel at uber, inheriting the role from travis kalanick. He faces slowing growth amid the cloudy act Macro Economic backdrop. He explained to bloomberg how uber plans to whether the headwinds. The consumer in the u. S. Is very strong. We are a Global Company and the majority of our transactions are outside of the u. S. , so we look at Global Growth to the extent Global Growth slows down, that could be a negative for us. If Global Growth slows down, we will have more driver partners wanting to come off the platform because we expose very flexible opportunities. The growth of the company is beh that we are going to relatively resistant any macro slowdown and we are not seeing any slowdown with the u. S. Consumer yet. What his plan b if we are in a fullblown trade war . We heard about investing in vietnam or brazil. What is the backup plan . Dara we are an asset like company so we dont have to go out and buy companies. And make surey that our driver partners can source vehicles in an economical way. Many source vehicles through so idhand, used vehicles dont think this trade war we havent felt it unless in small parts of the business where we are importing bikes, for example. There butome expense it is not having material effect and we are comfortable with our growth the next few quarters. Scarlett youve got a food delivery business, trucking, ebikes, scooters, flying cars, health. Dara transportation of every kind. Youve asked for people to think of it as the amazon of transportation but amazon was a bookstore for a long time before they did this other stuff. What if now is in the right time to do this other stuff and the right time to focus on the core . Ridesharing and maybe some food delivery . The weve been in ridesharing business for a long time and that business is developing and its profitability is developing. We are the top player in every andle market we compete in we are taking share in those marketplaces. We have a core business that provides a framework for us to build multibilliondollar opportunities and it would be criminal if we dont take advantage of that. You are seeing more and more apps and companies that are building ecosystems. Uper apps, so to speak tencent , dara absolutely, the super apps are winning. We can be the super app of transportation, so to speak. T allows us to choir acquire customers and keep them because we have a deeper relationship with them and longterm if you can acquire customers and keep them longer, that is the winning formula. Emily uber eats is 20 of the business, 30 . Ara yes, and growing we are the Largest Global player out there and we continue and the category food we believe can be as large or even larger than the ridesharing category. We love that business. Rishaad bloombergs Ceo Dara Khosrowshahi with emily chang. A hong kong activist is under arrest. Details as the unrest stretches into a 13th consecutive weekend. This is bloomberg. Yvonne some breaking news in hong kong. Three of the citys protest leaders have been arrested before this weekends rally that has been confirmed by a police spokeswoman. She didnt immediately comment on the report, but the 22yearold served time in jail for his role in hong kong 2014 occupy movement, detained around 7 30 a. M. Local time this morning. Two other activists according to reports have been arrested. A spokesman has not responded to the report but we are learning three of these hong kong protest leaders have been arrested. Wongs arrest was tied to the police raid of the headquarters in june. We will watch that but a big weekend here. That will drive a lot of people we wont seeully, more violence. David reaction will mainly come thick and fast. Lets turn our attention to south korea where the press conference is ongoing. Rates at 1. 5 , in terms of inflation moving to zero level for a while, part of the statement. At the degreeng of policy accommodation will remain accommodative and supportive policy stance. It was not unanimous. Two members called for a rate cut and you look at where economists see the rate going, that will happen october or november. Rishaad , against a backdrop they mention cpi will move around 0 for a while and they are seeing Downside Risks in cpi which would give more wiggle room to cut Interest Rates. The twos suggesting members called for a rate cut. And the decision was not unanimous. Bloomberg for the clients, track the story on live go on your bloomberg terminal. Where our expert editors have been chiming in, pouring through the statements and we will be reacting to every important phrase that comes out of it. Yvonne it wasnt unanimous. Two members calling for a rate cut so they mean that be done when it comes to easing may not be done when it comes to easing. Saw it asmists efficient to talk about the shortterm risk share and play into some of the structural issues with the economy. We have been watching the kospi, bid onng won catching a the trade optimism between the u. S. And china. Up 1. 75 . We saw samsung turnaround helping the benchmark, and no on strengthening. 4 . Stocks, oners, bank is surging after we heard Morgan Stanley put it as one of its top picks when it comes to the energy majors. Watching Samsung Electronics up 1. 75 . This is bloomberg. Su it is 10 29 a. M. In hong kong and shanghai and 10 29 p. M. In new york. There seems to be no agreement on territorial disputes in the south china sea. This despite toplevel talks in beijing. President xi jinping met his philippine counterpart as the two failed to reach an accord. Consensus on oil and gas exploration. A range of deals were signed for a new project on the island. Most u. S. Companies will ignore president trumps socalled order to leave china and will continue to work there. China Business Council says 87 of responding said they have neither moved not plan to move operations out of china. The survey was condu