The new deal brexit rises. When it istells us the Prime Minister against the market, the Prime Minister tends to lose. Emma the biggest week of earnings season with Powerhouse Companies reporting. Better than expected cash flow which we have not seen for a long time. In the second half of the year things should pick up. We are seeing a little performance art. Emma mexicos president speaks exclusively to bloomberg. He says his countrys Interest Rates are too high but he will not intervene. If we trust, we are not just going to grow but also to develop. Emma some of europes largest banks say it is high time for rates to come up. Fundamentally negative Interest Rates are not good. Not just for the future of banks at stake right now. Emma it is all ahead on bloomberg best. Hello and welcome. I am emma chandra. This is bloomberg best. Your weekly review of the most important interviews from Bloomberg Television around the world. Lets start with a look at the top headlines on monday. Chinese authorities in hong kong finally responded to antigovernment demonstrations that have been going on for eight weeks. After a chaotic weekend of clashes between protesters and police. Ll for hong kong to punish those behind the violent protest. Follows aniefing eight straight weekend of demonstration in the city. This appeared to be an attempt to calm some of the fears that have cropped up over the last week that china could move to take more drastic action to calm the unrest we have seen. After they spoke, people seemed to take a bit more of a breath. They didnt announce any imminent policy change. It didnt appear they were going to. Stocks calmed down a little bit. Started to pare back those losses. This really looked like a move by china to say nothing is coming right now. What this means in the long run for the protest, we dont know. They are still planning to protest and opposition lawmakers in the coming weeks and and opposition lawmakers say the comments made by china were disappointing. The bank of japan has left its Interest Rate unchanged but pair to back its gdp forecast and said it wont hesitate to ease if needed. Look at those downward forecasts. How big were they . From 1. 1 this year to 1. 0 , on inflation, that is not a big reduction. How about gdp . From 0. 8 to 0. 7 . Through it all, the boj still seems to be signaling that they see a domestic economy that is mostly on track. At the same time, the baton is passing to mr. Abe and fiscal policy. At this point, the message is the dial is turned as far to the left or right as it will get and there is not much more you can do unless things get really rough. Shares jumped after hours as its revenue for the current its revenue forecast for the Current Quarter beat estimates. What are the Key Takeaways . Apple demonstrated a little bit of growth. It is pretty much flat for the third quarter. It is barely an alltime record for the third quarter. That is good news given that apple has had a few significant declines in recent quarters. We saw them pushing the narrative around the strength in wearables and services. That is a fair point. However, those two product lines are very much tied to the iphone. If people are buying fewer iphone, these services will not work. That is the conundrum in place right now. Once apple starts coming out more frequently with designs, better features for iphones, those two things will mesh together and it will turn somewhat positive. Matt china and the u. S. Have kicked off a new round of trade talks in shanghai today. It follows a threemonth hiatus and renewed accusations from donald trump that beijing is trying to rip off america. The u. S. President lashed out on twitter. In an angry tweet, he had said there has been a promise to buy more u. S. Farm produce but there is no apparent progress and said they just dont come through. China says they have come to the table. They are willing to buy more u. S. Farm goods. Obviously they have their own redline. They want the u. S. To come to the table with concessions for huawei. We know that china wants tariffs lifted on all exports. These are sticking points from both sides. It would be critical to see what kind of Movement Comes out of these talks in shanghai. David trade negotiators left early today with neither side feeling like they made much progress after President Trump set the stage by accusing the chinese of ripping off the United States. The Chinese Foreign ministry, after the fact, saying the United States would have to show sincerity and good faith before anything could get done. The pressure on both sides to get to a deal and hurry up if you will, is not there anymore. The real priority was running through the issues, seeing where both sides are and deciding on what the path is. The good news is it will talk again and meet in early september. The trade war is on hold. It will keep trundling on for another month at least. The fed, we are counting down to a decision, investors looking for the first rate cut in a decade. A divided fed cut the benchmark of basis points from 25, it ends the Balance Sheet two months early. Nothing explicit but investors may see a hint about future rate moves. In repetition of the language about uncertainties of the Economic Outlook remain. They are sending the signal that we have more rate cuts to come. They will point, as they always do, to data dependency which is keeping the expansion going. We are thinking it in the midcycle adjustment policy. Fomc decision and the statement that came with it read relatively dovish. Once chair powell took the microphone he sent a less clear message. He talked about this as being a midcycle correction but then he walked it back to some extent only to talk about the possibility of future rate hikes. The Dow Jones Industrial average swung 562 points, the most since january 4, 2019. The secondbiggest swing in the Dow Jones Industrial the year. Caroline it closes down more than 1. 2 . We are seeing the worst day, the biggest move in the s p 500s may 31 2019 we are off by 1. 1 . Romaine we got the rate cut but not clear why or what was next. You saw that reflected in equities and bonds and commodities and the fx space. Bank of england is keeping rates on hold. Governor mark carney says he is less confident amidst the risk of a no deal brexit. U. K. Economic outlook will continue to hinge on the withdrawal. The appropriate path for Monetary Policy will depend on the balance of the effects on demand and supply for the exchange rate. What do you think the next move will be for the central bank, a rate hike or cut . I dont think he knows, i dont think we know. That will depend on what happens on the exchange rate. We have seen sterling weaken a lot. If it continues to weaken a lot more than the bank wants, that reduces the likelihood of easing. They are getting it through the Exchange Channel and increases the odds a little bit of tightening. I do not think those are high. I think tightening is a ways off, only if the currency fell out of bed and they have an exchangerate crisis. President trump abruptly escalating the trade war with china, announcing he would have a 10 tariff on the 300 billion of imports that are not subject u. S. Duties. T is after set President Trump the 10 is for a shortterm period, i could do more or less depending on what happens with respect to a deal. Yesterday, the white house put out a statement that the trade talks in shanghai just concluded were constructive. For them to turnaround hours later and say we will raise tariffs caught a lot of people by surprise. Caroline the s p 500 off by 9 10 of a percent. To think we are up more than a percentage point today, how a tweet can change all of that. Scarlet we also have a peek. For decades china has taken advantage of trade versus the United States and versus countries in asia and southeast asia. It is time for that to stop. President trump has said we will fix this. To fix this requires determination, i think that is what you saw this morning. The president is determined to achieve his outcome. President trump until there is a deal we will be taxing the hell out of china. That is all there is. [applause] if these tweets become policy on september 1, taxes will be going up on u. S. Consumers as well. Our view is any impact on u. S. Consumers is minuscule. We think the economic burden on these tariffs has fallen most heavily on china. They had to slash prices to offset tariffs. That has damaged their profitability and growth. I really think in terms of the american story, our economy is quite strong. Unfortunately, in terms of the china story, i think their economy is quite weak. Counting down to the july jobs report. Youre looking at an estimate of 165,000 jobs to be added. Economists nailed it. 164,000 jobs created in july and unemployment unchanged at 3. 7 . A lot of ongoing uncertainty. I keep coming back to that. 164,000 new jobs created. That is on pace with the year to date trend. This is down from we had been seeing job growth over 200,000 coming into the year. I think we are seeing some evidence that companies are getting a little more cautious on both the investment side and the hiring side. It is a direct result i believe of the uncertainty that they face. Emma still ahead as we review the week on bloomberg best much more on Monetary Policy. In an exclusive interview, the mexican president says he wishes his central bank would go with a dovish flow. The ceos of a major european banks speak about the headwinds facing the Financial Sector and the Global Economy. Next, investors spent the week pouring through earnings reports. Highlights from the results. We have a machine writing lots of cash day in and day out. Emma this is bloomberg. Emma this is bloomberg best. I am emma chandra. It was a whirlwind week for earnings. With closely watched results from tech, energy, and financial. Credit suisse was the first of several major european banks to report. Credit suisse has wealthy clients, adding 9. 5 billion swiss francs in new money in the Second Quarter. The main trading units also outperformed peers. Earlier, i spoke to an executive and started asking him if Credit Suisse could compete with american rivals. I think in the main businesses where we generally measure, for a Second Quarter in a row we could come out around the top of the table. I think that is a good performance compared to u. S. Banks. Bnp paribas has outshone its rivals in fixedincome training. The unit posted gains for a Second Straight Quarter putting the lender is ahead of wall street and european peers. We accelerated our Transformation Plan. Basically, it was on that acceleration that we started to see the benefits. In fixed income, there was a pickup and a strong contribution in the First Quarter which was confirmed in the Second Quarter. When you look at equities, if you look in the Second Quarter they remain still a bit lackluster. We had that on top of that a Strong Quarter a year ago. That is the dynamic. Yes, we feel comfortable about the exhilaration of our Transformation Plan is bearing fruit. Ing has beaten estimates with underlying pretax profits in the Second Quarter. Coming in at just over 2 billion euros. The group did miss estimates on Net Interest Income. Do you expect Net Interest Income to still keep being under pressure given the lower for longer rates environment being signaled by Central Banks globally including the ecb . You call it low for long but i would imagine you could call it negative for long Interest Rate environment, given where we are now in the cycle. I think were looking in terms of other strategies beyond what we are doing now to mitigate that particular impact. Diversifying for example our business geographically to noneurozone country, better Operational Efficiency and more digitization of processes and customer journeys. Indeed more pressure from savings margins. Chinas huawei has reported a 23 rise in firsthalf revenue to just over 401 billion yuan. That is 58 billion in Todays Exchange rate. That is as the privately held Telecom Giant tried to withstand u. S. Efforts to curb its business. The company says there is difficulties ahead. Pace seen in the previous quarter. Remember huawei is a private company, it does not have to report financial details the way publicly Held Companies do. You are seeing a little performance art. Huawei is coming out talking about what their financials are. Because they want to signal that they are still growing. They want to signal it will fight against u. S. Sanctions and u. S. Blacklisting and continue to supply customers as best as it possibly can at this point. Shery Samsung Electronics sees a second half recovery in chip demand amid what it called external uncertainties. Net income numbers beating expectations. A bit of a mixed picture when it comes to mobile numbers and chips. The big story has been the industry challenge in the chip industry. They have been facing lower demand from these data centers as well as lower demand from the decelerating smartphone industry. But we are seeio they say in the second half of the year, things should start to pick up. This is all good. On the smartphone front facing challenges and huawei is a doubleedged sword. Even if they benefit from smartphones they could struggle from component sides with slower sales to huawei. General electric shares rising today after secondquarter earnings topped expectations. The manufacturer gave better than expected as its cash flow betterthanexpected earnings as its longsuffering division showed signs of improvement. This has been a turnaround story. What signs did we get today about turnaround . We have heard nothing but bad news out of the Power Division for two years. Today we saw a minor, modest, organic growth. We saw better than expected cash flow which we have not seen for a long time. They paid down another settlement. They raised cash by selling a small stake in a division. Things on both sides are starting to budge to the positive. Bp has bucked the trend set by other European Oil Companies last week. Its cash flows reached 8. 2 billion in the Second Quarter. The highest since late 2017. Let me to let me talk to you about the price. The iea is predicting a big oversupply next year. Are you concerned with Global Growth issues, are you concerned about oversupply . A lot of uncertainty in the market. We are planning bp around the 55 per barrel. We are above the planning range. You have big downside issues, potentially with venezuela, iran. A lot of uncertainty there. Crude coming on and supply. Chinese demand, right now, the first half of the year a little bit of softness in demand but it is coming up. Hard to predict, but we will be fine. Shells quarterly profits has missed estimates after the price slump. The volumes slipped 3 year on year in the third half, but the first half, but despite weaker than expected earnings shell will continue the 25 billion buyback program. The iea is predicting a big Oil Oversupply next year and numerous signs of a slowing Global Economy. Will those things converge into a Lower Oil Price next year . There is a number of factors at play. I do not think at this point in time it is the longterm fundamentals at play when it comes to the oil price. It is much more sentiment and shorter term aspect of fundamentals. What we are seeing at the moment is a weakening of the macro environment. A slowdown, a trade war. All of these effects have a direct effect on the growth of oil demand. And also on the sentiment around it. Rio tintos shares take another hit despite the first half strong results. And announcing a special 1 billion dividend thanks to a windfall from an iron ore rally. We have the machine writing lots of cash day in and day out no matter the market conditions. The track record is a testimony of that. The outlook is very important. The key market, china, the outlook is positive. Yes, as expected the chinese economy is slowing down. I have no doubt in my mind they will put a stimulus package in play. Therefore the demand for steel and iron ore will continue to be very strong. Emma you are watching bloomberg best. I am emma chandra. This week, bloomberg editorinchief John Micklethwait traveled to mexico city where he sat down for an exclusive interview with mexican president , Andres Manuel lopez obrador. More commonly known as amlo. The president says Interest Rates in his country are too high. He hopes mexicos central bank will bring them down to stimulate growth. One thing is what is to be desired and another is what is possible. I would like the central bank to not only work on controlling inf