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 extradition, the protests moved on to other issues. That is the momentum that i see happening here. Theres just no one to talk to to figure out a way to defuse the situation. Escalation ofn the situation in hong kong today and a deescalation of the trade source. Are these two things related . Marty i dont think they are for thatt all, except the chinese leadership has a number of things they have to deal with. The trade war with the u. S. , civil unrest in hong kong. It is part of the atmosphere of challenges that xi faces, but i dont think they are linked directly at all. Vonnie what does it mean for the likes of taiwan . Im sure taiwanese are watching this closely as well because if china were to make some sort of stronger effort to tamp this down, that could spell trouble for taiwan. Marty you know, its not Rocket Science to point out that whats happening in hong kong is of unbridled interest to the taiwanese, who have been thinking about Stronger Political links. Vonnie i just want to point out that we are seeing pictures at the airport, others are live pictures. Bloombergs chief content officer Marty Schenker stays with us. Guy lets bring another voice into the conversation. Joining us on the phone is , to give us a sense of what is happening here. We have an escalating situation at the airport. The chinese clearly are watching very carefully as to what is happening here, and what we are all trying to figure out is, what does beijing do next . What is your best guess . Stephen i think the ball is really in the court of the Hong Kong Government. I think it is important to remember that we are talking about one country, but two systems. I think weve lost sight of that here. The Hong Kong Government is a different system than the peoples republic of china. Under the guidelines of the systems aree two given relative autonomy as to how to operate. Carrie lams government has not done that, and thats what this protest is all about. She has refused to permanently withdraw the extradition law, and she has not allowed for an investigation into Police Actions, which are ongoing right now,. There is a lot of concern amongst the hong kong population about the nature of the Police Actions and reports of injuries and other aspects of brutality. Until the Hong Kong Government steps up and utilizes the discretion it has granted to of onethin the construct i thinkand two systems, the problems will intensify and im very worried about the ultimate outcome. Beijing has its own set of concerns about stability. They have always felt that is the huge priority for them. Guy you say you worried about the ultimate outcome. What you think that could be . What is the worst case . Stephen the worst case is there is a total breakdown of any semblance of law and order in hong kong. Chinese officials have clearly sent warnings and there has been of military activity with the pla. It is hard to know how credible those reports or intentions are. Obviously, in the face of a total breakdown of any semblance of law and order in hong kong, there would be an escalation and probably an intervention from the pla, which would be hugely and veryto hong kong damaging to china. That would most likely cause repercussions from the United States and the rest of the world. Vonnie hang on one second. Marty schenker are, i will bring you back in. Something stephen said is important. This is obviously a breakdown of law and order in hong kong. Right now, this is one part of the airport. It is an obvious and embarrassing place together. Of the citizens of hong kong support this and much would it be ok with and they would have to do something about it . Marty china will work in what they consider to be the best interest of china. It is very difficult to organize in support of something as it is to organize the in opposition of something. It is hard to tell whether a majority of hong kong residents support the protesters. There is no mass rallies of support for carrie lam. Far be it from me to support stephen roach, who has been following china for decades. He is absolutely right. The worst case for china as them being forced to send in the pla to restore order. That could be have repercussions for china and for hong kong for a long time. Vonnie Marty Schenker are, our thanks to you. Stephen roach, Yell University senior fellow, let me come back to you. If you were advising xi jinping what would be the end game that would be amenable to the most parties, if not all . Stephen i have no advice for the president of china other they are at their seaside retreat right now. Plateave a lot on their with respect to the u. S. Issues, the hong kong and their own domestic reform agenda. It is a balancing act for the obviouslyd they are watching the developments in hong kong with more than great interest to be sure. Risk thatul of the china faces should they move with haste, which they have not past a very difficult point of no return from their point of view. I give china credit right now for exercising a good deal of restraint with respect to the chaos in hong kong, but ultimately they have their limits as well. Guy let me ask you how the u. S. Could end up dealing with this situation. I find it fascinating that the day we get deescalation of the trade story, we get escalation in hong kong. Systems weciates the have within its own country. Thus far it has shown restraint. Nevertheless, there could be a point where the worst scenario is the pla coming in. At that point you think washington rescinds the special status hong kong enjoys . Stephen the Trump Administration yesterday did put out a noninvolvement statement. It is a classic statement saying this is an internal matter for china and they are hopeful it can be addressed. Besense is that should there an explicit intervention by the congress will take the lead in exercising its own sense of indignation and pass a bipartisanh would be , a rare bipartisan action that would impose some form of sanctions on china that the Trump Administration would then go along with. We are a long ways away from that. You keep asking me about what china should do. The real discretionary point in this situation still resides with the government of hong kong and with the chief executive operate within the structure of the two systems by under theis granted framework of the one country, two systems notion. Opportunitye the for solution lies. , with Marty Schenker that, things down with that calm things down it carrie lam were to come out . Weve not heard from carrie lam. Stephen that is part of the problem. I will be right back. Vonnie marty, would one speech do it . Where is she . Marty she did give a speech overnight in which she cured up about the issue of the chaos in hong kong. The protesters have various demands. One is that she step down. The other is the permanent root rescind the extradition proposal. She could do the latter without ,uch impact on her own tenure but actually stepping down is something she would need to coordinate with the mainland chinese. They seem to support her. , she has aroach said lot of discretion to try and propose things. My issue is who do you propose them to . Who is in control of these protests that could bring the tensions down and essentially declare victory in this situation . There is noems concrete thing the government ,an do to diffuse the situation it has gotten so intense. Vonnie stephen roach, let me ask you, do you know how this protest is being organized or is there indeed somebody who might be a point person who could be spoken to . Unlike the umbrella demonstrations of several years ago, there are no prominent leaders in the current protest. Lamn assure you, if carrie were to seize the initiative and make very concrete proposals in addressing the extradition law and addressing an investigation into the Police Actions, you would see a response in terms of diminished protest activity and there would certainly be some individuals who would then emerge in more of an overt leadership capacity than you see right now. This is a different strategy than the socalled umbrella revolution of a few years ago. Notable for prominent individuals taking the lead, but a much more massive outpouring of sentiment from the hong kong population then we saw back then. This is a different dynamic that requires a far more aggressive stance by the Hong Kong Government than we are seeing right now. Think carrie lam is capable of delivering that . Do you think she is still a credible lever . The a credible leader . Issue the person to do that job . So farshofar stephen her actions have been disappointing. She is obviously operating under huge amount of pressure. The situation is extremely difficult. Opportunityarly an for her to step up and perform in a way that would address this crisis. Thus far, her actions have been very disappointing in that regard. Guy pictures from the hong kong airport. Continue to use lasers to maybe defeat some of the facial recognition software. Stephen roach will be sticking with us. Lets bring in bloombergs bill faires. The white house and the u. S. Government is saying it will not take part in this, this is the chinese issue in the chinese need to resolve it. Is that credible . At what point does that change . A lot will hinge on how the developments we are seeing play out over the next few minutes and hours, whether we see an escalation in violence. If that happens, there will be enormous pressure on the white house to make some sort of a statement on the record. Arewe have had so far or background comments. I think you will hear from members of Congress Speaking out. We have heard from the Democratic Candidates for president , but it is notable that the violence coming from official sources, all of that will have to change quickly if the situation spirals out of control. Vonnie at what point will the u. S. Be forced into doing something . We are in the middle of tense negotiations with china in which we had a development the tariffs were going to be put off until december and will be another phone call and a couple of weeks. This is all messing up the trajectory of these talks. Can the u. S. Demand something or make a statement without having that happen impact on trade talks . Bill you are right. The delay in these tariffs gives a little bit of breathing room to both sides. They are not under quite as much pressure with that september 1 deadline as they were even yesterday. Whether that i think the white house is watching this event right now with alarm and hoping it will somehow fizzle out or calm down. Professor roche was talking about a number of ways carrie lam could help address this, take the initiative. There are probably a lot of people at the white house hoping she does take advantage of the opportunity to try to diffuse the situation and from the u. S. Side, help this problem go away without having to resort to anything stronger that could put the broader trade talks in jeopardy. Frankly, much of that, or all of that, is out of the control of anyone in washington. I think people are watching these scenes unfold just like we are. , at whattephen roach point does this impact the markets . We see a tiny dip in the hong kong dollar, but it is pretty stable. Much more action in terms of any other peg. Does this impact markets . Hong kong is the fourthlargest stock market in the world. It is five times larger than singapore. The size of double the market capitalization of germany. 50 larger than that of france. We saw yesterday when the chaos broke out overnight that the market got hit very hard. Today the market is rebounding on the u. S. Trade tariff concessions. Hong kong is a very important world financial center. It is chinas window into world Financial Markets. It is absolutely critically important. I do not see any jeopardy right now, but it is a very destabilizing force in Global Financial markets if the chaos continues to intensify. Guy if it does, professor, if we were to see that worstcase scenario you talk to us earlier on about, i. E. Chinese forces crossing over and being used by beijing or the Hong Kong Authority to quell this protest, how big of a market event is that . How big of an event without beaver Financial Markets . Weve already seen some affect, but im wondering what does that worstcase scenario look like on the s p . Stephen im not going to venture a guess. It is not a development that is even remotely factored in to the valuation of the u. S. Or other Major Financial Centers around the world. Qualify as one of the darkest of black swans we have seen in a long time, its the pla were to move in to the streets of hong kong. Let us hope that does not happen. Right now i think the important thing to keep in mind is that the Chinese Government, the beijingbased Chinese Government has exercised great restraint in the face of these actions. Was in theirty overall administrative and governance purview falls into then theyanarchy, certainly would have to consider altering their posture. The consequence of that, depending on what they do, could be serious. Bill is still with us in washington. Who will determine the u. S. Response . Well be the president or will congress have a voice in this story . Bill certainly the president is going to determine the official White House Administration position with advice from people like mike pompeo and john bolton. I do think, depending on this how depending on how the situation develops, there will be increasing pressure from congress and when i say that i mean both republicans and democrats who will be watching the situation with alarm. You have seen more hawkish foreignpolicy types in the Republican Party like marco rubio of florida already saying that chinese involvement in hong kong at the airport, sending in these ride police shows the true nature of the Chinese Government. He has long been antichina hawk in the Republican Party. He is also someone that President Trump listens to. I think those voices will be ascendant if this situation spirals out of control. Ive seen some reports from our bloomberg colleagues in and around the airport that a few police have been seen leaving. It is not clear from that whether it is a lot of police, a significant number, or just some of them going back. Everyone is waiting to see what happens in the coming hours, given this is the second day of these huge protests at the airport. Our state department correspondent, thank you for joining us from washington, d. C. I want to get back to stephen roach. This could happen impact on markets if it continues for a protracted from tell of time. What would be a Tipping Point . If we have the chinese leadership finish up on their retreat, at that point skew Things Get Serious because they are no longer out of the public eye, they are back in the public eye and we need to come up with something public to say about this . Stephen i do not think the fact now they are meeting right is going to limit their ability to respond, either through direct statements or through actions. This is not a holiday. , andis a working period they, like the rest of us, are in a position to react to the circumstances as they unfold. Shutting down asias major airport is unacceptable for hong kong. It is unacceptable for china. It is clearly a huge problem for pan regional traffic and shipping that has spillover asia, if nots east further. This is a situation that needs to be addressed in one way or another. Guy how much responsibility does the u. K. Happen the situation . Stephen in terms of the handover . Guy yeah. Stephen i would not want to go back and redo history here. That was an agreement negotiated for a long time and thethe u. K. Peoples republic of china and other major powers had a say in the framework that Deng Xiaoping agreed to of one country and it does go systems. Two systems. Y and yearhandover the 50 period of the handover was put in place for good reason, recognizing hong kong is very different than other areas in Mainland China. Vonnie i was going to bring in Damian Sassower to the conversation. Respond to what the professor was saying and im curious about the currency. The professor saying it will hold. I know there are people who say no, this will be the end. What are your thoughts . Damian i have to agree with everything professor roach has said and this is a serious incident. This spirals out of control, china might have to get involved , and they might be justified in terms of the markets perception. In so far as the hong kong concerned, the Hong Kong Monetary authority has all the tools necessary to maintain that over the medium term. What is interesting is i went back to my desk. It is a very fluid situation. This. Ality is up the back of the trade on the part of the u. S. , the china yuan basis hase completely reversed. For the last week it was the opposite. Risk reversals, the curve has flattened. People are no longer demanding protection, demanding dollar protection. There is less demand for it and it has flipped on itself. This is very fluid between what has gone here with the u. S. Retracing on trade and with the riots in hong kong. A very fluid situation. Difficult to stay on top of. Stephen, let me get your thoughts on the china trade situation and the yuan. Think the u. S. Move to declare china guilty of currency manipulation just ratese the bilateral cross appears the 7 threshold vonnie we have to cut you off for a moment. We have to get to President Donald Trump who is speaking right now in new jersey. Trump a good talk yesterday with china, very productive. I think they would like to do something dramatic. I was not sure whether or not they wanted to wait until a democrat had a chance to get in, hopefully that will not happen. The economy would go to hell in a handbasket very fast. They would like to make a deal. The call was very productive. Im not sure if it was the tariffs or the call, but the call was very productive. So far they are disappointed me. They have not been truthful. We had a very good call with china. They have a problem in hong kong , but they would like very much to do something. Could you say delaying tariffs further past december . Pres. Trump were doing this for christmas in case some of the tariffs could have an impact on u. S. Consumers. So far they have not had weve collected more than 60 billion from china. In case they might have an impact on people, we have will not beo it relevant for the Christmas Shopping season. [indiscernible] he is a man who is a big trump follower. He is respected. Bill barr wants to do an investigation. What happened has been going on for a long time. The epstein episode. I know it is under investigation by attorney general william barr. The retweet, which is what it was from a very respected conservative pundit and. I think it will be fine. [indiscernible] Conspiracy Theory . Sayingrump what we are is we want an investigation. I want a full investigation. That is what our great in turkey general is doing that is what our great attorney general is doing. [indiscernible] trump the hong kong things a tough situation. Well see what happens. I have that works out for everybody, including china. [indiscernible] trump it is a very tricky situation. I think it will work out and i hope it works out for everybody, including china. I hope nobody gets hurt. I hope nobody gets killed. Optimistic now that there is a chance for getting a deal with china on trade . Pres. Trump i am always optimistic. My only question was whether they were willing to wait until an election to get someone who is weak and ineffective who does not know what he is doing like we have had in the past. This could have been done 25 years ago, 10 years ago, or five years ago. It shouldve been done a long time ago. It should have been done by obama. China is taking out 500 million a year, much more than that. What i am doing should have been done 20 years ago. [indiscernible] ought to be a different home on the statue of liberty . [indiscernible] trump i do not think it is fair to have the american taxpayer paper people coming into the United States. What i have done was institute what took place many years ago at our founding. I think it is long overdue. I am tired of seeing our taxpayer paying for people to come into the country that immediately going to welfare and various other things. I think we are doing it right. [indiscernible] trump i think that what chris cuomo did was horrible. His language was horrible. He looked like an outofcontrol animal. He lost it. He spews lies every night. I do not know why anyone would defend him. Chris cuomo is out of control. I watched it. I thought it was terrible. I do not know who is defending him. Maybe they did not see it. One who saw quiz chroma who saw chris cuomo would say that was a disgrace. You would never see me do that. [indiscernible] trump i think chris cuomo was so out of control i would not have wanted to see a weapon in his hand. He talked about it, but he did not do anything. Chris cuomo was out of control. [indiscernible] trump anthony was a guy who worked for me who do not have a clue. He worked for 11 days. Statements tole people who worked in the office. I think youve heard it talked about in great detail. Anthony did not support me at the beginning, use with somebody else, and they went to somebody else. The only supported me after it