From the start. Global uncertainty the most important issue for their markets as jackson hole discusses threats to growth. An hong kong protest take an ominous turn. Place drug guns and fire a shot, as demonstration turned violent again. Shery lets get started with a quick check of markets. U. S. Futures at the moment plunging 1. 1 heard this after we ended the regular session friday and President Trump escalated the trade tensions against china, saying he will boost tariffs. This coming after chinas retaliatory tariffs. On friday we saw a negative sentiment across markets. The dow falling 600 23 points, the s p 500 lower by tack and Technology Energy stocks. After chairman Powell Comments at jackson hole which raised speculation now about the fed potentially easing more in the coming months. That felt 3 . Continue to see these fears of recession. Two 10 yield curve. We saw the three 10 yield curve. We are seeing that anxiety play out in the markets. Lets see how things are playing shaping up in asia. A lot of anxiety across the markets here. Were seeing red across the board on futures as well as with new zealand trading now down about 1. 5 . Down 190 points. Futures down 1. 5 percent and a positive sentiment out of jackson hole being overshadowed by geopolitical risks here, concerns about an allout economic war. This is after an already tumultuous august. Of growthart on top concerns. Yen we sought fault to an alltime low in early asian trading at 1. 1746. The previous alltime low was 1. 14. Analysts are expecting a graduate depreciation here, as we are seeing more pressure on the chinese economy with these escalations from trump about increasing existing tariffs higher. Switching boards, taking a look at oil futures. A risk off mood we are seeing. 1. 5 are falling about 2. 5 here now. After closing 2. 1 down on friday. Oil is falling for the fourth day. This is the longest run in declines in more than five weeks. This is after already shaky global demand. Now we have the trade war on top of that. Seeing Oil Futures Fall even more. Right, thanks for much. Lets get the first word news now. The tax on Global Technology and potential duties on french wine were on the menu as the g7 wound up in derisk, france. Biarritz. Infuriating the Trump Administration pumping threats of taxes on wine imports. France says the tax does not too late target the tax does not target firms such as google, anywhere. Macron raised eyebrows by inviting the Iranian Foreign minister for lastminute sideline meeting. Meeting was to deescalate tensions with iran. The two met only 30 minutes he said the left other leaders were told in advance he was coming. The decision to fire the gun is the best option according to an officer. As clashes with protesters as later. In a briefing police said the action was necessary as protesters were charging them heard police say they have arrested 36 people following sundays protest. Included several violent classes in the western territories. Macau has chosen a prochina businessmen as its new leader, after a put a protest process that featured no other candidates. Leader be the third since the territory was handed back to china in 1999 after four centuries of role by portugal. Unlike in hong kong, this appointment caused little public converse he, highlighting the cows week public opposition movements. Macaus weekng opposition movements. Billion, for 3. 19 your final Dividend Per Share now at 24 aussie cents. Against an estimate at 12 aussie cents yearonyear. In the past three months, has plunged more than 10 . We are now seeing their net income coming in at three point 2 . Decks dictation was for a strong result because we have seen a rally the expectation was for a strong result because of a rally in iron ore prices. The focus this time will be on the outlook for the market. Also progress on new project plans. At the moment, we are getting net income coming in. 3. 19 billion, final Dividend Per Share at . 24. Our top story now, President Trump has sharply asked leaded the trade war, and is one regret. The high duties on chinese imports. Later said he is having second thoughts. The white house clarified that message, saying he meant his on the regret is not imposing higher tariffs from the start. China is not backing down either, with state media saying beijing is quote, cearley making preparations for a breakdown in relations. Ros krasnyditor is in washington. Please excite what happens. President please explain what happened. President trump said he had regrets, people initially took that to me maybe he did not want to go as hard on china, and he is sensitive to the stock market falling. But Stephanie Grisham him mount and said if anything he regrets not having raised tariffs higher and earlier. That is a worry to markets. It seems on friday trump was very much taken aback by chinas retaliatory move on tariffs, even though i think most people had expected them to make a move for a couple of weeks. And he hastily convened a meeting at the white house. Now we have seen the results. At this point people are rattled about the idea that President Trump may invoke a National Emergency decree to try to force u. S. Businesses to get out of china. That is kind of a nuclear option, i think, for the u. S. A lot of concern about that here. Seeingyes and we are beijing also take a harder stance. Tom, what has china been saying about all of this . China continues to stick to its playbook when it comes to how it responds to these trade actions from the u. S. It implemented or announced the implementation of 75 billion worth of additional tariffs. In terms of the timing, that would be split between september 1 and december 15, into different trenches. That was in response to the announcement from the u. S. Three weeks previously there would be tariffs on three had a billion dollars another 300 billion worth of chinese goods. Forhave heading back blow blow, then and slice of the rhetoric. Thats we saw the state media you had the global times saying now there is seriously work underway, serious preparations for these tensions to continue to escalate, further deterioration in relations between the u. S. And china. Times,tor of the global this nationalistic but influential tabloid newspaper here saying that the u. S. Risked losing china, and pointing to not just tara tariffs but that banning of huawei, and u. S. Actions in hong kong and taiwan, other zhou put glaciers as well. Then the Commerce Ministry other geopolitical issues as well. Then on saturday accusing the u. S. Of bullying. The trade media saying the u. S. Will fight this trade war to the end. The rhetoric is ratcheting up, hitting up heading back blow for blow other than trying to overage. Paul there was also the suggestion from President Trump that it is time for u. S. Corporations to stop doing business in china. How is trump attacking Corporate America now. As noted, he may try to use obscure National Emergency power, rarely used by u. S. To putnt, to really try restrictions on u. S. Businesses working in china or chinese businesses operating in the u. S. This is something that has struck a nerve with business groups. They already were kind of thinking enough is enough, with just higher tariffs. Now they are really very, very concerned. We heard from the head of the Business Roundtable, a business on grell a Group Umbrella group. Tapping the brakes on business investment. He said the next move might be to really slam on the brakes. Businesses like certainty. They like to be able to plan their supply chains and other elements of their business or years and years, not just go from tweet to tweet. So they are very, very concerned. At one point that kind of stormed the white house to make their concerned tester concerns known. There certain to make concerns known. Economist sees u. S. Growth possibly falling below 2 on the latest tariffs. That is not a Good Environment for corporate earnings. You can see where the concern is coming from. Paul tom, you mentioned china feels at has already lost the u. S. To some extent. How seriously is going to take this threat of u. S. Corporate divestment . Very seriously indeed. Out,s ros rightly pointed you have Companies Looking to taiwan, malaysia, some looking to move to the u. S. You also have corporates continuing to invest heavily in the chinese market. Including tesla, ford, starbucks. China is having to weigh up these different pressures. It will strengthen the hands of those who have said, look, the idea, the proposition around decoupling is not an idle threat. This is now a view in the nsaid in the ascendancy Trump Administration. Therell because, you would expect for those here to see additional subsidies, for big state owned champions, for example. More support for Chinese Companies and brands. That indigenous innovation that has been accelerating since the trade war here in china. It strengthens the hand of those who have argued for more of that. You may also get additional measurements of lowering barriers for entry for companies or other countries outside of the u. S. The european union, countries like to pound as well. And then there are countries like japan as well. And then additional measures, nontariff barriers. When you talk to lobby groups, that is a key concern. Those additional lobbies barriers, blocking deals, not signing off on the opening of new offices, hindering license applications, all of these kinds of measures. Then there the there is the unreliable entities list, that china said it will publish at some point. The environment here will become much more difficult for u. S. Companies, you would assume. Even as many continue to invest in the chinese market. Paul all right, bloomberg krasny in washington and Tom Mackenzie in beijing. Fires technology and fires the amazon. We will wrap up for the g7. Shery central bankers cannot say the down their own. A look at the feds weekend meeting at jackson hole. This is bloomberg. Paul lets get a check on the markets, some of the haven trades now. We have the japanese yen continuing to strengthen against the u. S. Dollar. Spot 93. Is closing in on that 2016 low that the u. S. Dollar experienced with the japanese yen. Take a look at gold as well gold rallying once in percent, now per ounce as55 the trade war continues to flareup. You see the yield on the u. S. 30 or slipping as well. Uncertainty all the , fed chair jay powell has cautiously opened the door to another rate cut next month, highlighting the damaging impact of the es leading trade war. Surprisingly, that set off one of President Trumps most vicious twitter attacks yet. Our Global Economics and policy backr Kathleen Hays is from jackson hole. He compared mr. Powell to xi jinping, saying he was the biggest enemy of United States. But i thought the signal of easing was something that the . Resident wanted to see echo this is why they awaited is a speech. Markets signals may be down the road. When he kicked off the symposium on friday morning, jay powell went into this and then send that signal, opening the door to rate cut your you see him in the marking with mark carney, the head of the bank of england. He said as he has in the past, yes the u. S. Economy is fine now, but we have to look ahead, down the road. And tradelobal growth uncertainty and muted inflation. List below one of his key statements. The Global Growth outlook has been deteriorating since the middle of last year. We know that is not going away. Trade policy uncertainty seems to be playing a role in the global slowdown. He says its showing up in week manufacturing, Capital Spending in the u. S. Inflation is still below target. After this he went on to say that the federal act is a appropriate to sustain the expansion. That has been seen in the past as a sign there ready to cut rates. That got the stock market rallying. But apparently it did not impress President Trump just we thought might of thought. Because he came out fasting jay powell with us tweets blasting jay powell with tweets. Lets take a look at this, first of all he seems to have been confused about what this meeting was. He starts by saying, as usual the fed did nothing. While this was not a fed meeting. Maybe confused jackson hole with upcoming policy meeting. Andave a very strong dollar a very weak fed, and the u. S. Will do great. My only question is who is the bigger enemy, jay powell or chairman she. Xi. That trump had tweeted traders coming. A tough day for stocks, but the fed part did not help iver. Either. Clinical, so much for independence of the fed. What was the reaction political independence of the fed. What was the reaction . Kathleen aghast. Concern. What does this mean, it is undermining the fed as an institution. The concerned that fed independence is being threatened. Saidn, everyone i talk to the fed, even though we are not perfect and do not know is make perfect decisions, that independence of the Federal Reserve is absolutely critical for the american economy. Kathleen and for the Federal Reserve, lets remember. This does not seem to affect the rate debate, it is how they view the economy. Pat harker says he is on hold for rate carts rate cuts. Jim bullock says you have to run invert the yield curve. Cut in 50 basis point september. The governor of the reserve bank of australia seems to be reacting to this his speech on saturday he said Central Banks cannot do everything with Monetary Policy, when politics and political disputes and geopolitical ventures, brexit, hong kong, et cetera, are weighing down on economies. I think he must have had something about trump and the text attacks globally on several banks in mind when he said that. On Central Banks. Paul plenty to watch on jackson hole and the reaction to it. Lets bring in our guest Diana Mousina economist, Amp Capital Investors one of the highlights was phil lowe, rba governors speech. He made a good point, there only much Central Banks can do in the face of so much political instability. To steady the ship. Thank you for having me on. That is not anything new we have seen from the rba governor paid we have seen in recent commit occasions, the rba saying that fiscal policy probably needs to play more of a role here. We have seen that from Others GlobalCentral Banks. Mario draghi as been suggesting we need to see more fiscal policy as well in europe. Thatpose it comes down to Interest Rates are at prevent zero in australia they are moving toward zero. So you are the lower bound of what Monetary Policy can do. Those central bankers are at a loose end. They cannot simulate the loot the economy any further using stimulus of Monetary Policy. It has been a matter of getting the government to act on that physical fiscal policy need. Paul the jobs market in australia has been the focus of the rba the last couple of meetings. Is that about to be supplanted by this increasingly hot trade war . We think so. We see the rba cutting Interest Rates and month, and september. In a few weeks. That is the market consensus at the moment. Is interesting you say that jobs in australia, it will be the key reason why the rba is going to move. We thought in the minutes of this months meeting that the commentaryy toward the end was that they are probably looking at a more broad state of affairs in the australian economy and globally. Even of the jobs market is holding up, the Unemployment Rate is trading higher. Not so much so that other issues plan more Important Role here. And trade is obviously important to australia and the rest of the world. And the impact that has on sentiment and on global many factoring, we can see that Global Manufacturing consistence conditions are at recession like areas. We think the trade war will be one of the key reasons why the rba decides to cut rates in september. We think will get another cut in november. Shery in the meantime we are not seeing earnings performing that great. That could be a catalyst for why the rba may feel compelled to move. Where are seeing these downgrades and they aussie earnings environment. The earnings season this time around has not been too bad. We track the number of companies expectations. The number we have seen it come faces been over 30 expert 30 . Overall the earnings upgrades have been in the resources sectors. Commodity prices have been strong nostril out. Relying on commodities like iron ore, those are not taking a turn though. Iron ore and coal prices are weakening a lot. And quite drastically. The outlook for the resources dr. Is not a strong. Other areas of the resources sector is not a strong. Constructionntial activity we have seen developers follow over in australia. That is in line with our view that Construction Activity particularly in residential continue to weaken in six to 12 months, because we have had a boom in the Housing Market that is continuing to unwind. Homeis not to say that prices have not found ab