Domestic buyers. That is what we are hearing from one analyst, taking advantage of that fear from Foreign Investors and buying in, especially if your currency of choice is the won. Lets check the latest on the markets with sophie kamaruddin. It is still about north korea. Investors assessing potential risks, weighing on the down. 1 , consumer stocks among the decliners despite the discounted valuations across the kospi. Gaining, Building Momentum following that report that pyongyang may be moving an icbm ahead of a potential launch this saturday. The yen at 109 point 33, the swiss franc the rise along with gold, and treasuries catching a bit, the 10 year yield sliding towards 2. 13 , while the dollar is set for a fourth day of losses. The aussie moving towards . 80 ahead of the rba decision. We are seeing weakness for the , snapping a sevenday advance their. The offshore rate losing. 3 , halting a 14 day rally, even in the face of a stronger pboc fixing. We are seeing chinese stocks tick up momentum, the large cap up. 1 , with financials leading gains in shanghai. Asiasnghai composite is best in dollar terms. The latest caixin read has been a boost to the outlook for chinas economy. Alas look at the hang seng, gaining. 2 , snapping a three day drop as gains for developers are offsetting losses in the casino stocks. I want to look at what is going on with the yen. Demonstration show a dropping to a low, but there may be signs the currency is losing that haven a lower. 632 three, gold has outperform yen as a haven assets are 632 three, gold has outperformed the yen as a haven assets. Xi jinping was speaking to leaders of the brics summit. He called for innovations and reforms and emerging economies and offered 500 million in aid to developing nations. The latest private gauge of chinas economy saw an uptick in august with the caixin pmi hitting a six month high. The reading was up from 51 point nine in the previous month, growth in the Services Sector accelerated to a threemonth high at 52. 7. A reading above 50 shows an expansion. It is saying growth is firm, domestic demand is robust. The external demand is not very bad. I would say with domestic and external demand firm, this is the macroing environment has been quite stable and policies may not have to support it more. Bitcoin tumbled the most in two and a half years after china said i ceos are illegal. Asked for all fundraising activity to be halted immediately and said there will be harsh punishment for any offerings in the future as well as the ones already completed. Fell 14 on monday, the most since january 2015. United technologies is to buy Rockwell Collins for 23 billion. The deal his 140 a share in cash and united stock. United technologies says it is funding the cash portion through debt issuance is an cash on hand. Andof the biggest deals aviation history is expected to close by the Third Quarter of 2018. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. A says theth korea north is moving in icbm for a possible launch before saturday. Earlier, the u. S. Ambassador to saidnited nations pyongyang was begging for war. Korea live in seoul, ahead of saturday. Is it still business as usual . On the ground it feels that way, but there is a feeling that things are a little bit different this time around. The news that just hit about an hour ago is raising tensions that wein in these days have been here after that nuclear test. These reports locally saying movingrth korea has been this potential icbm during the night here. It seems to be possibly launching this before saturday. 9e significance of september is north koreas founding day. The ruling Party Establishment 10, and those were the two key days that south korean intelligence officials have been looking for. We continue to see that the faience of kim jong on, working at a faster pace than south korea expected. This a couple of hours after we got confirmation that the president moon and south korea was just on the phone with president trump, flexing military muscle and agreeing to the maximum pressure on north korea and the military capabilities. Saw that president allowed south korea to put have your weapons on to its ballistic missiles, the first time in 38 years they have lifted those restrictions as well as allowing buy billions of dollars of weapons and military equipment from the u. S. As well. As we see these two nations working together, we are seeing north korea working on the sidelines here. A markedis is difference from when president moon came into power, when he was ushered in he said it is all about diplomacy and he wants peaceful negotiations and peaceful talks. Does this mark a change in his policy here . Yvonne hes still wants dialogue. Of what we heard from the defense ministry, they had a meeting earlier this morning and he mentioned that they are still keeping this policy on the denuclear station of the korean the defenseo minister was referring to the possibility that there is some speculation they will bring u. S. Nuclear weapons to south korea, something that has not happened since the early 1990s when the u. S. With drew the Nuclear Weapons out of the area. I guess you read between the lines, that they are maintaining that policy at the moment, but we see some tweaks when it comes from the policy, slightly leaning towards military options until they can get pyongyang to start talking. They still want some type of peaceful treaty moving forward. A proposal on this dialoguebased say is based on the fact of easing military tensions in the area. To find some type of resolution in this humanitarian crisis as well. , that is wheread we see a dramatic shift from president moon, who has been against this policy before. That up to four of these antiballistic missile launchers could be deployed in the area pretty soon. Angie thank you for that. Continuing to be live in seoul, korea as we monitor the latest in north korea, the latests report citing an unofficial military source that north korea is preparing and moving and moving in icbm ahead of saturday for a possible launch. Lets check the action on the markets right now. Lets start with safe havens. We saw gold and yen maintaining gains. Which haven assets of the ones to watch at this point . Be extremely to popular, having a very good run. Gold is outperforming the yen as a haven of choice. To some degree that is not surprising because the north korean dispute seems to be going into new territory. Japan is one of the countries who is close to the action, so why the yen should be such a strong safe haven does not make so gold is taking away some demand from the yen. We have also seen the chinese currency performed pretty well, so it is not the obvious havens in the past. The u. S. Dollar is not performing that well either, so it seems to be a mixture of things. People are choosing a variety of currencies to hold, including gold, may be not just picking one as they had done in the past. Interesting that the yuan is becoming a safe haven play, but with the pboc strengthening and widening that trading band is it going to be a oneway street until the Party Congress in october, so should investors be wary of that move . Today withseen that the fixing between the dollar and the yuan. The pboc seem to put the brakes on it a little bit, maybe concern that the yuan has strengthened to quickly and the last few days, so they slowed it down today with todays fixing, but it does not mean they want to weaken the yuan. Is still based on strong fundamentals in china is going in the right direction, so they may slow down the pace and be happy to see it on the strong side and probably will remain so right through a over. To makehe rba expected its Rate Decision, forecast to remain on hold, but should we expect hawkish signals . It would be brave of the rba to turn to hawkish now. They will probably just be neutral. Mark cranfield, we will leave it there. You can follow mark and all of his colleagues and our ,onversation there on mliv and there is commentary and analysis from bloombergs expert editors. Do check it out, mliv. We will talk more about the latest tensions. We will be joined by an investor who says stocks are headed for a big selloff. Later on in the show, we look at digital token sales, which have raise billions of dollars globally, but why is china putting a stop to that we ask whether other countries will follow suit. This is bloomberg. Getven as World Leaders more alarmed with the nuclear tests, they are not aligned. There are many forces who do not want direct conflict. They are looking at the fact it will be no conflict, just more sanctions, so they are getting along with the traits that will are in them some money. The tensions have clearly risen and are potentially a black swan risk for china equities and global Asset Classes over all. Part of the reason why the market has not reacted as much as people audit might is because notle realized that it is in any parties interested to behave in an irrational manner, so the markets are betting that nothing will come of it in terms of actual combat. It wouldere to happen, be incredibly negative, but the next thing we have to watch for are the chinau. S. Relations. We have been down this road before. The risk sentiment to return, and that should play favorably into the dollaryen trade and the short yen position would benefit from that. Isthis kind of situation lyrical noise. It will not affect the , growthtal economics and the prospect of markets and the profitability of companies comes of this political noise can give an investor the opportunity to do bottom fishing. What are we talking about more specifically . Tipsbelieve the market has and we can buy into it, for example, tencent, some of the sop reforms stocks, as well as domestic consumption stocks in china. E reform stocks, as well as domestic consumption stocks in china. Angie with me is that head of capital dynamic markets. You have some cash burning a hole in your pocket . It is costly to hold cash at this level. Holding it in u. S. Dollars, or which affects are you preferring . Come at when it comes to currencies, our cash levels are much higher than the neutral levels we have. It is costly to hold cash, but it is a relative value game. Havet think markets priced in any uncertainty, so on the currency side, we have started to hold more u. S. Dollar. The pessimism, it is amazing how we have on from extreme optimism at the start of the year and now everyone sees the u. S. Dollar going down. Im not saying we are right in the market is wrong, that when sentiment make such a uturn and underneath things are not as bad, i think we are adding to our u. S. Dollar exposure at the ,xpense of emerging markets fx which is a hedge against a potential market selloff. Of the day,e end you do have the Federal Reserve staying fat on the rate rate increase, but everyone is still point about the global economy. Why do you the markets have not seeing aswhat you are a meltdown of Global Equity markets and moving away from this asia story, this long bull run we have been seeing . Fundamentally, i agree. Things are starting to look better, but Global Growth is synchronized for the First Time Since 2007, but the equities markets is not always correlate with stronger growth. When we talk about a correction, im not talking about an end to the bull market. Im talking about corrections we have not seen for 12 months. Look at the fundamentals underneath u. S. Equities in particular earnings, we had a strong earnings quarter just recently. If you look at the market response to every company that beat expectations versus companies that disappointed, it was quite lopsided. The markets punished the ones that missed more than rewarding the ones that the, so that tells already pricing in the good news. We have seen a massive rise in Metals Prices on the back of demand, which is good, but also supply concerns around china. With the lag, you look at corporate profits, costs going up, prying power still low, so this will cause margin pressures until Pricing Power increases and cpi comes back in. On the earnings side, there is room for disappointment. You bought gold, but at these levels, very expensive. 1349, surging to high. That safety haven play Commission People still buy in at these levels . I agree. You look at cold at these levels and by itself it looks expensive , but if you do the same chart, gold versus s p 500, you will see on a relative performance basis that cold is not as expensive as the s p 500 if you normalize that over a time horizon. If you look at the late stage and commodities prices as a a hedgend gold is benefit against geopolitical tensions. Very quickly, 20 seconds, if the market does meltdown, 30 cash, how will you put it to work . I would continue to work towards sectors like energy and financials. This is a move from quantitative reasoning easing to quantitative tightening. Angie very good. One feature on the bloomberg we bring to your attention is our interactive tv function where you can see previous interviews and dive into the securities are functions we talk about. This is for bloomberg subscribers per check it out at tv. This is bloomberg. A check of the business flash headlines. The head of the worlds secondbiggest Online Travel p is open to acquisition targets in brics countries. They must be number one or number two in the market. Are disciplined in terms of investment strategy. We all three criteria. Related toe closely our core business, which is travel. The second is the verticals we are looking in, we always invest in number one or number two bank. We try not to invest in number three are number four. The further criteria is that valuation needs to be reasonable. We are still looking for could potential deals that fit that criteria . Yes. Japan postal announces plans for a share sale as early as september 11. We are told the ministry of finance plans to offer between nine alien dollars and 12 billion 9 billion and 12 a. M. Dollars by the end of the month. Founder and former chairman has been barred from serving as the Company Director and hong kong for eight years. He wasrt ruled that involved in misconduct related to the running of the former solar giant. Directors werent banned for between 34 years. He briefly became chinas richest man in 2015 before hne gy shares plunged 47 in one day. Blackstone has received bids on its 10 shopping centers. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Korea has started moving in icbm for a possible launch before saturdays Foundation Day holiday. A report cites an unidentified intelligence official. South koreans military is mulling various options for what it calls a realistic solution. The u. S. Ambassador to the United Nations said kim jongun appeared to be begging for war. September 21 may be the date that Prime Minister theresa may gives the much anticipated brexit speech. Is due to give a follow up to the january speech on brexit with negotiation stalling and the government having lost its parliamentary majority. The u. S. House of representatives will vote wednesday on hurricane harpy relief though that one contain language aimed at staving off a default on government debt. Republican leaders are for now battling to demands of conservative members and wont combine legislation which would raise the u. S. Debt ceiling. The harvey bill would provide almost a billion dollars in aid. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Sophie a check of the markets, asia. D session in the nikkei leading losses when it comes to the laggards. Nikkei 225 deepening declines as the dollar yen trade set a new intraday high at 109. 22 or dollar. The u. S. 10 year yield closer to 2. 13 , while gold is trading 1336. 130 a pickup when it comes to the risk momentum. One analyst saying that while jitters will likely , geopolitics has not determine the markets when it comes to koreas performance. Is under pressure despite a stronger pboc fix this morning. Financials and china leading the advanced there. Aussie shares extending the drop on monday, but the aussie dollar is knocking on . 80 a dollar there. Not jawbone the aussie lower this afternoon in the session. Angie thanks. Chinas Central Bank Says initial coin offerings are illegal, asking for all related fundraising activity to halt. Bitcoin tumbled on the news come although now it has leveled off. We have also got to guess with us now. Cover and why ban is it happening now . All icos callista so now you can no longer raise icos or continue trading them. Banks have been prohibited from offering services. If you have already phrase money through an ico, you will be asked to refund it, so you have to liquidate and return funds. We saw that happened today and late yesterday, so it is a comprehensive hand. The timing coincides with the icos of scams related to. China accounts for about a fifth of all the icos globally, about 2 billion, and i think that activity has been increasing, so the authorities decided to step in now before things got even ,orse to slow the market down so for now the market is frozen. Angie lets bring in our gadfly columnist here. Unsuccessful. Is why du suppose china is doing this now . Is it to protect the stability ultimately of peoples expectations when it comes to investments . I agree. It is about scam alerts. Thing raisedicos in china and around the world are not necessarily scams, but projects that will go nowhere. It is like a vc funding model. Someone has an idea and they want to raise money to build that project, so instead of going to vcs, they are using this as another funding method. Most will go down the tubes. Not because they were scams, but they were projects that did not have any longterm viability. That happens a lot. We accept that. The problem with icos is they are so unregulated and china is concerned about stability as more money pours into this system, so there is concern a lot of people could be lo