I am Francine Lacqua. This is a picture for emergingmarket stocks. Currencies are rallying after week u. S. Data. European stocks you can see flat. Pound, we are talking about brexit. 0. 83. T euro it is i want to show you south korean won because the msci the south korean won climbing to a level. Lets get to the bloomberg first word news with nejra cehic. Nejra. Nejra u. S. Prosecutors are considering a criminal charge against hsbc. Such a move would imperil an earlier deal. The doj has charged to people on banks foreignexchange this year should have resulted in disciplinary action . German Industrial Production fell by the most in almost two years in july as a suffered from subdued global trade. Production adjusted to seasonal swings. That missed analyst estimates of 0. 1 rise. It is the latest data released since uks vote to leave the eu. The u. K. Chancellor Philip Hammond will meet senior bankers later to set up the governments plan to support the economy and sound out their views
London. I have a chart here of the shanghai composite index from the last three days. It shows the weakness coming from the asian session. Around this china story. Industrial output is below estimates. All of that initially got the market thinking that maybe the Chinese Government will give more stimulus. But that be a good thing . We are now seeing some weakness coming through. It is moving a little bit lower, the shanghai composite. Lets put that into context. What does that mean for the rest of the asian trading day. Lets get to asia. A precipitous drop here. You showed the charge. Here it is again. Here is the shanghai composite. Check this out. A 3 drop and it has played out over the morning. Over two hours this point. We started the day higher on the shanghai composite and in hong kong which was at one point leading gains across the asiapacific. As investors noted the latest industrial output figure, what we realized is that this picture in china is not as strong as some may thin