Participation rate rising. When you drill down on these figures, very encouraging, and perhaps to encouraging, but does reports the trend we saw and may, doesnt it . Haidi given the strength in the expectinglar, we were it. Hike say the rate wanted, didntdy ask for, didnt act on. The aussie dollar nudging closer to . 80. We started off a few seconds ago at 79. 5 cents. As you are saying, that rba ms. On tuesday where they said the cash rate was around 3. 5 , that set us off on a run and was pricing in. 25 rate hike without hiking the rate. Haidi absolutely. E getu said, maybe w back to jawboning and see if that works. Thats the direction from sophie. Discussing,ou were that pop in the aussie dollar, climbing for a third day, but softening somewhat. ,tocks on the mainland in China Hong Kong opening. The hang seng adding. 4 , extending and eightday rally, but on the mainland, it is ready much flat so far after a two day rise. Today, the pboc fix of the yuan slightly weaker. We do have the yuan extending its drop amid speculation that the sevenday advance we saw previously was effective, and as u. S. China talks get off to a rocky start. Ae yuan retreated from ninemonth high, and the offshore rate is lower for a second session. For a quick check of what is moving in shanghai, i. T. Stocks and health care leading gains, the shanghai composite slightly higher. Miners on the back foot, down. 3 come the segment that really the shanghaist to composite yesterday, seeing it rise over 1 on wednesday. Full up the screen to show you some stocks we are watching in hong kong. After the switch up in the wandasunac deal. Jumping on was 8 this morning there. Wanda and sunac also rising. 10 , adding over 28 gain on wednesday. Rishaad thank you very much indeed for that. Sophie was talking about washington and beijing not getting along particularly well, to put it mildly. Lets get to first word news. Rosalind talks between the worlds two biggest economies off to a rocky start as the u. S. Criticized china for its trade imbalances. Wilbur ross complained about the trade gap in unusually blunt terms. Both sides canceled scheduled news conferences in response. The open criticism is a change from the past. The two sides normally pledge cooperation. The u. S. N the gulf say and you can put forth a proposal to end the diplomatic isolation of qatar. Include the groundwork for direct negotiations based on the accord that result in earlier dispute in 2014 and new measures to counterterrorism. Of supportinged extremist groups, something it denies. France has raised the stakes on brexit, putting a figure on this socalled divorce bill the u. K. Will be expected to pay to leave the eu. The economy minister said london must hand over 100 billion euros , the equivalent of 115 billion, to walk away. It comes after the u. K. Find acknowledged it will have two meet its obligations to the eu. The uks top diplomat is in japan to discuss postbrexit trait with an economy that has played a vital role in british manufacturing. Horse johnson will meet investors and businesses who employ thousands of workers who market british plans. They are hoping to persuade them to stay in the country despite the uncertainty of rigs it. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Despite the uncertainty of brexit. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Chinas largest property deal has taken a twist, stepping to buy some of the hotel assets that wanda was planning to sell to sunac. This comes with wanda under scrutiny and how it is financing an acquisition spree around the world. We have a look at this. What reasons behind the deals structure, well, it is getting very confusing at the end of the day, so many changes. It is mainly because the original deal drew criticism. After the deal was announced, it already raised questions among investors and analysts, saying is that right for sunac to buy such a big asset when the companys debt levels are already so high . The original deal makes sunac one of the most in depth chinese developers. This week, the share price of. Unac and bond price dropped reported thatia chinese banks were reviewing sunacs credit profile. They restructured the deal and r f. Ed in our and rishaad is it a surprise to see f joining hands with wanda . It is not surprising. R f and wanda announced last year the development of 25 commercial products in china for the next five years, so they are kind of let close friends. They know each other well. Haidi this statement from one wanda saying everyone comes out winners. A little bit less pressure when it comes to financing . Right. They arey for wanda the obvious winner because they will receive a lot of cash, then it will reduce debt levels significantly. According to the chairman, the proceeds from the deal will mostly pay off debt, so that helps a lot. For sunac, even though they pay high premiums on the wanda projects, it is like half of the original deal size, so it will help their liquidity, and also they dont need to put up a lot of debt for such a deal. Haidi prudent given what we have seen what is a pretty hard crackdown on overseas deals and how they can offload existing assets they have. Do expect developers and to start seeing a lot of these domestic deals being passed back and forth . Willthink definitely we see more upcoming deals, unexpected announcements from conglomerates, because most of them need to consider to improve their liquidity. Thats why i would not be surprised we would see more offloading of assets. Thank you so much for that. Coming up, i looked behind australias latest labor market numbers. Nomura joins us. This is bloomberg. Haidi this is Bloomberg Markets asia. I am haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. Said to havey picked frankfurt has its European Union trade headquarters in the postbrexit world to relocate some of its broker business to the city, while moving part of its assets to dublin. 200 are going to frankfurt. Haidi the softbank boss finds he has green fingers. 200vision fund is leading a Million Dollar investment and a company that has perfected the growing of crops indoors. It is his first array into agricultural and has the potential to boost Food Production around cities and can improve equals quality of life. Rishaad spotify being sued over by frankiectices valley and the four seasons owners of rights. Capital over the years without ensuring copyright holders are paid appropriately. Pay are saying they should 375 million for the enduring infringement. Haidi lets get back to those jobs numbers out of australia a few minutes ago, the implications for Monetary Policy direction with a strategist at nomura australia. Always the fund data released today from australia. The headlines pretty normal. The fulltime jobs number jumping by 62,000, unemployment falling by 48,000. What is all of that about given how technology is restructuring the nature of jobs growth . Had three months of solid numbers, and to boot, solid fulltime within that. It is difficult to square with all the other data. The economy appears to be growing at a moderate taste. The market data it looks quite good come housing data looks lower, but overall all, the economy is running at a moderate taste. There is no doubt this labor market data is pretty impressive. To whethernt to get that changes your assessment of what the rba will do. You can also overlaid the Household Debt leverage data point over this and makes it even scarier, but the wage growth issue is going nowhere. Inflation is still pretty anemic. Where does the rba go from here . Our todays numbers a not to give it a push to the hawkish side . Maybe, but not substantially. Wage data is interesting. We can go back to the Labor Force Data that showed fulltime employment up, and total employment up, but also the ns recordedustralia as unemployed is also up. Unemployed was up 13,000, and the unemployment picked up to 5. 6 from 5. 5 , so there continues to be Spare Capacity in the labor market, so that is one factor that keeps wage growth low, and we can overlay some of the structural factors that have been spoken about in competition, competitive pressures, outsourcing of labor as factors holding wage growth down. Haidi the aussie dollar has been on a tear. Were you surprised by the way the market some would say misinterpreted those minutes . I think this has been an interesting story. Hawkish. As not it was balanced. The minutes come across more of the in terms of domestic and Global Growth outlook. I think that is fair enough. I believe the market has over interpreted the comment about neutral rate. I think the rba is firing a warning shot across the about to borrowers. I dont think its a clear Monetary Policy cigna coming from the comments about where neutral is. The rba might be talking about the ultimate destination in a perfect world. They told us nothing about the starting point or the speed at which we might move comes of the minutes were more of the. The comments about neutral rate are overstated, but finally and quickly, the rba has the perfect opportunity to clarify their thoughts over the course of the next week because we have the speech from the Deputy Governor tomorrow and the rba governor phil lowe speaking next wednesday. Haidi does it make you feel like the rba should be getting more guidance . Not necessarily. My sense is that many of the g7 global Central Banks micromanage and find 10 messaging a little too much. The rba philosophically is a different beast. Historically they dont mind giving the market a bit of a surprise from time to time, and i think that approach is probably better than the one that could create a bit of hazard by trying to overdo things. Andrew, just having a look at what has been going on in australia, unemployment is not, well, not universal. We have different commonwealth actually having quite different unemployment rates. This is what i want to bring up here. This is South Australia how it compares with the rest of the country. 543, the prime minister, malcolm turnbull, has called socialistralia a paradise, saying it lacks the country when it comes to employment itself and has the largest doublet sector by capita. Is this a microcosm of the countrys future . What are your thoughts they are . Of course it is a big country with different resources and industries in different parts of the nation. I think the question for policymakers of course is dealing with lunt instruments that impact across the nation. They have to smooth out strengths and weaknesses in different parts and think what is best in aggregate. Over the mediumterm, i expect we will see different trends across different states reflecting some of those things you are talking about. State has guess every its own challenges. New south wales and also areoria, property prices insane. How does the rba deal with that . Surely it can be done on a statebystate level these reforms . The strongest Property Markets are in major capital cities, sydney and melbourne, and these are the areas where investor activity is the greatest and the space with the largest rates on population growth. To date haves instituted a number across the , the large the banks private sector banks, have introduced lending rates to investors and interest only loans. So they are acting at the aggregate level. Somethingey produce at a base level is an interesting sort of question. I guess that is possible, but not very likely. Rishaad how much is the Property Market being driven by foreign buying . We got some data on this from the freedom of information rig west. The State Government increased additional stamp duty transactions, taxes on warned buyers, so the rate is a couple of percent, and victoria is hike to two. O. It gives them an additional incentive to scrutinize transactions more. South wells, 20 of the buying of the past 12 months has come from foreign buyers, and within that, about 80 of that 20 has come from china, so foreign buying has been a material force acting in this market. Rishaad great talking to you as ever. He is a rate strategist at nomura. Froman giving us his views on how the Donald Trump Administration should be addressing the trade in balance the United States has with china. This is bloomberg. Rishaad the new dialogue between the u. S. And china got off to a difficult start as United States publicly rebuked china over a trade balance. The Trump Administration may need to rethink how it addresses its issues with beijing. Put pressure on china and organized the g20 countries and others to pressure on china on this. I think there are forces in that the understand overcapacity is distorting their economy and something they have deal with sooner or later. With aluminum for example, we challenged the subsidies china has provided their aluminum financingin terms of and other inputs, and the Trump Administration has not followed through on that case. Hopefully they will do that, but it needs to be an all out effort by the u. S. And the Global Community to underscore for china how they have to take allow Market Forces to play a greater role, including areas where there is overcapacity. Some expect to get indication of this administration on a path forward on steel. What we you be looking in that document from the trade representative and the secretary of commerce . The Trump Administration is using a rarely used trade law that says we have a National Security threat because of our lack of domestic pacitti for too many imports. We can stop those imports. Most of our imports of steel or of them and them dont come from china, but from canada, mexico, south korea, turkey, brazil come at some of which are military allies of ours, so it will be interesting to see how they make the case that these imports from these countries represent a National Security threat. Instead, i think we need to find afterto go overcapacity. Emailed today from the new u. S. Trade representative saying he expects nafta negotiations to run from 1628. What can you tell us about the longtime staffer at the trade Representatives Office and how do you expect this process to unfold . Been running the latin america office, western hemisphere office, for some time. He is a career civil servant. He is experienced and knows the issues. I am sure he will work well to execute on the renegotiations. The document the administration issued on monday that laid out negotiating objectives is interesting. Quitee areas, it is general, but in many respects, it tracks the Transpacific Partnership negotiations we did with mexico, canada, and nine other countries and areas like labor, environment, state owned enterprises, now we will see whether they follow through on digital economy, intellectual property rights, and others. Can canada and mexico agree to those concessions with the 90 states without benefits of getting access to japans markets are other benefits from tpp . And what will we provide mexico and canada and return . There isnt much we can do because our markets are already open. From our studios in new york city, this is charlie rose. Charlie we begin this evening with health care. President trumps ambition to repeal and replace the Affordable Care act was dealt a significant blow last night. In a surprising turn of events, mike lee of utah and jerry moran of kansas came out against the bill. Their defection left gop leaders at least two votes short of those needed to begin debating the bill. Earlier today, Senate Majority leader Mitch Mcconnell conceded that his partys efforts would need to take a new direction. Senator mcconnell we will have to see what happens