Increasing pessimism about growth. More ceos than ever see a slowdown. Sophie chinas mystery virus is spreading through persontoperson contact. Hubs stepping up passenger screening. Lets turn to selina wang in beijing with australian markets coming online. Selina we did see australian markets red hot. We are now starting to see them drift slightly lower, marginally except for the new zealand up. 2 after gaining 3 since the start of this year. We did yesterday see the equities hit record highs when it comes index price and private equity valuations. So, that would be enough to ring bells in normal times but our strategists say that macro backdrop in australia is dire enough to call this rally into question when you consider the massive wildfires that are damaging their economy. With increasing focused on environmentally sustainable investing, that rally is potentially at risk. I want to check on that a little bit more with this next chart. Thelook at that rally in context of the u. S. C
Alleged phone call an apparent trade detente that was apparent flipflops leave beijing unsure of u. S. Policy. Is the first of chinas big touted by the u. S. Administration, we saw the yuan banks to report earnings. Six in terms of the senate how the trade war is affecting devaluation was the largest performance. Shery lets get you started since the beginning of august, when we saw the risk of event with a quick check up on how markets closed. Where the yuan bridged the seven level. Theintent is there from it was a wild ride, with u. S. Chinese site. Dogs paring back gains. The s p 500 finished down. 3 . If we see these levees continue to be raised on september 1 and it is a very financials leading the declines with the 10 year yield falling politically important date for below 1. 5 . He dow gave up 120 points the chinese. It is the 70th anniversary of the peoples republic of china. That is not something the chinese are willing to let slide it was a bit of a mixed picture with volatili
To that 155 mark. The lookout for any Government Action to support local currency. Given the b oj is expected to stay on hold later this week versus a still hawkish fed, likely to stay week for now. Thats the state of play for japan coming online. Yesterday we did see that kospi rebound. Today a little firmer as well. A full week slump. The focus turning to earnings, sk hyneks is one of the key to watch. Ppi raising 1. 6 on the year. Broadly the take away from that is domestic inflationary pressures are calling on south korea. The Economics Team is saying unless we see a further rise in oil prices, weakening domestic price would keep cpi inflation numbers. Paul we just open for trade here in australia as well, we have a bit of a staggered open of course. That notwithstanding, we are better about one third of 1 right now. The aussie dollar showing a little more strength. Now 64. 5 cents u. S. Crude is interesting to watch as well. We started off the day with brent exactly at 87. This is
Headlines, we have come back to matt or it the vix goes nowhere. I am looking at sterling ahead of theresa mays speech. David that is part of the morning brief. We are going to have all eyes on lawrence as recement outlines her new brexit strategy. We will hear from Esther George at 9 30 a. M. We are going to get manufacturing. At 1 30 p. M. , we will hear from the dallas fed president. Overnight, the world reacted to the escalation rhetoric between north korea and President Trump. It started with the president s speech to the General Assembly on it tuesday. The United States has great strength and patience. If it is forced to defend itself or its allies, we will have no choice but to totally destroy north korea. It only impacts those to continue to do business with north korea. If china does business with north korea, it will impact them. New measures. He i would like to offer my support. We are on notice that Going Forward, they can choose to do business with United States or with no