Opened. It looked like we were headed for 1 plus drop. Lets get the details on what happened overnight. Time now for Global Exchange to bring you todays market moving news from around the world. Joining us on the phone from france is bloombergs maria tadeo. From hong kong, we have enda curran. Here in new york, bloombergs michael mckee. We start in france with the g7 summit wrapping up. We just heard from President Trump and indian Prime Minister narendra modi. The highlights from this morning, and what happened over the last 72 hours . Maria the conversation here was mostly about trade. European officials were concerned that perhaps donald trump would go off stripped would go off script and could signal a recession in the trade war. Goodid he had a very meeting with angela merkel. Remember, the relationship between the two of them has been rocky at times. He also said hes looking forward to working with the european union. The other big surprise was that very short trip from irans foreign minister. The french said this was a good meeting, and Emmanuel Macron spoke with him for about 30 minutes. The president said he was not disrespected by this. It is looking good for european officials, who feared who feel this is a summit that went well. We are still waiting for that final press conference. Donald trump said hes looking forward to hosting the g7, ishaps in miami, and if that the case i will be happy to volunteer. Alix maria, thanks a lot. Now to hong kong, where trade is back front and center between the u. S. And china. A Chinese Foreign Ministry Spokesman said he was unaware of any calls with the u. S. This is echoed by the global times. Enda curran has more. What actually happened . Enda i think thats what everyone is trying to figure out. We have had a day of conflicting signals. The Foreign Ministry in beijing were not able to immediately confirm the phone calls President Trump referred to. The editor of the global times, an important mouthpiece for the communist party, made the point that whatever calls did take place werent at the level of significance President Trump hinted they were. We know that the talks scheduled for september are still meant to take place. Theres a lot of confusion about whether or not there has been an olive branch offered by either side and all of this, but i think the take away probably came from President Trumps remarks that he sees prospects for a deal being better than they have been for some time. We have commentary from vice that made ite clear china is still willing to talk through some of these problems. Perhaps there still is a way forward to get these talks back on track. It will be critical to see how china formerly responds to President Trumps latest remarks in the days ahead. Alix all of that wreaking havoc on the chinese currency. Offshore yuan hitting a record low. Walk us through the market reaction. Currency issly the front and center when it comes to these trade negotiations, as you mentioned. It was interesting to see the yuan slide offshore. When it came to the allimportant fix, it was a bit stronger than anticipated. That backed up the view that china is serious about keeping the yuan somewhat stable for now. They dont want to trigger any broader arc instability or panic caused by a weakening currency. All indications are for now, china is willing to hold it where it is. The big question becomes whether that attitude will remain so if these trade talks dont go ahead , and if President Trump goes ahead with the threatened tariffs and china retaliates. Thats wendy thats when the yuan will come back centerstage to help their economy. Alix thank you very much. Now we move to frankfurt. German Business Confidence falling to the weakest in almost seven years. Bloombergs matt miller spoke to the president of the evo institute. The situation is becoming increasingly dire. We see that. The weakness focused on manufacturing is now spreading to other sectors. Alix for more we are joined by our correspondent in frankfurt. Walk us through some of the details. Reporter indeed, there was more bad news coming from germany and that was Business Confidence at the lowest level in almost seven years. Very just heard, it is a dire reading, both expectations and Current Assessment components of the index fell. It comes on top of other bad news we had last week. The German Economy contracted in the second quarter, and bundesbank now expects that contraction will continue. They still say that probably is not technically a recession. We are still seeing just a small drop. But nonetheless, it is a worrying sign. So far, the concern has been this is just manufacturing. For the time being, the is still internally strong. Unemployment is low. This is holding up the domestic economy. This seems to be spreading inwards to the domestic economy, and that is a big question for the german government, especially whether it is ready to finally open the spigot and launch stimulus. For now, what weve been hearing from the government is that they are studying various options, but wont move until we see a crisis. Alix thank you very much. Piotr cully muskie skolimowski in frankfurt. Now with michael mckee, trying to understand the economic powers act and how it might apply in the u. S. China trade war now. Michael it gives the president extremely broad capabilities. He can declare an emergency if there is a threat during peace time to the u. S. Foreign policy or economy, and is able to block foreign transactions and currencies, securities, property, as long as a foreigner is involved in those transactions. He cant directly take companies out of china, but he can make it so difficult to do business they might have to move. It was revealed by the courts it is reviewed by the courts and could be overturned by congress, but they need a vetoproof majority. Out if this had come friday, what would fed response have been . Michael you can see it in jackson hole. Everyone was keeping and i on twitter. July real agreement that the areidents trade policies creating a global slowdown, and that Monetary Policy cant do anything about it. Carney, governor of the bank of england, put it, theres a risk of a global liquidity trap, and there isnt much Monetary Policy can do about that. Alix bloombergs michael mckee, thank you very much. Heres Something Else we are going to be keeping our ion, hong kong. Tensions escalating at the 12th straight weekend of protests. Force used Water Cannons the first time, saying it was the best way to disperse protesters. President trump says that he expects president xi to do something about the protests. We will have more on the analysis of the markets next. This is bloomberg. Alix time now for first ta ke. First, President Trump says china wants to get back to the negotiating table as World Leaders wrap up the g7 summit in france. Here discuss, vince cignarella, damian sassower, and candice gsund, fiera vice capital fiera capital Vice President and Portfolio Manager of asset allocation. First of all, friday was a mess, and it was really hard to deal with. The s p had a chance to respond last night. Huge gap down, and now trump is making whipsaws. What is this telling you . Vincent the idea that premier trump and saying he wanted to get trade talks restarted, i have a better chance of taylor swift calling me and asking what im doing next weekend. [laughter] vincent the white house keeps , andng the same script then reverses that script and goes the opposite direction when it doesnt appear that they are getting a bump or getting their way. Everyone i speak to is basically telling me they are just not buying this. The futures are up. Alix somebody is buying it. Vincent i guarantee it is not going to last. Damian the only way i can look forward into this is looking at it from a cold war perspective. Really, theres no point in not looking at the fact that the secondary of defenses comments on putting landbased missiles , this has got to be rattling chinas fences, and protests arent doing anything to help. Alix candice, what are your thoughts . Candice i think it is very characteristic of the volatility in the market and the fragility of foreign investor sentiment. Watching trade headlines day by day, friday to monday, it is a complete different story. In our view it is sort of shortterm pain, longterm gain outlook. Fear versus fundamentals. We will be watching closely, but nonetheless we expect cooler heads to prevail later this year. Alix who is actually trading on these headlines . Vincent there are people trading these. Cant actually trade the quick news because the machines will take it, and you are either in it before the news happens or after. You cant actually react to it as it happens. It is just too quick. Thursdayith a trader when first news hit. Basically i said, this is all im hearing. This goes back to the conclave hethe beginning of july when told this group of the most influential leaders in china weve kind of had enough. We are tired of being bullied by washington, and this is what we are laying out. Either all tariffs in the ban on huawei are removed, or we are not going to have a deal. Trump walk that back. He said the ban on huawei would just be from the government and pushed the tariffs to december. I think what washington thought was this was going to appease china, and then they would come to the table, and the response was, no. You are not listening. And all tariffs, and i think we are in that situation. Weve not walked it back very much. E are still in the same spot china is really not going to come to the table, at least from what im hearing. Alix i spent my whole week and brushing up on International Economics and emergency power that. I was just trying to understand, if you Ban Companies from doing business in china, how does that even work . Do you ban Foreign Direct Investment from china into the u. S. . How do you even think about doing Something Like that . Candice its the same story with us. Itare trying to navigate is a case of noise. We are trying to look through , trade headlines front and center. Both sides have take a harder line approach. This will extend to uncertainty on the trade backdrop, but as i mentioned previously, a global trade war is really in the best interest of no one, including the u. S. Resolution. A it wont be easy, but in the tradeerm we believe the uncertainty wont be sidelined. Damian look at the move index. Bond vol has soared. Im sure a lot of it is accentuated. Point because of liquidity, these are getting to levels where the fear is dipping into investor sentiment. I think today is going to be an interesting open for the markets. We will see what equities have in store for us. Alix this morning s p futures were up, but the bond market wasnt buying it. It wasnt until about an hour ago i started to feel a difference. The bond markets seem to be ahead of equities. Damian and look at the mexican peso, look at some of the stuff overnight. A lot of data from asia this week, ip out of singapore. A lot going not in asia that i think is going to drive Market Sentiment as we get to the end of the week. Vincent and south korean exports absolutely the harbinger of what goes on in asia in the falling of a cliff. Its the whole nine yards with all that is going on in asia. Said, you talk to businesses and they dont know what to do the only thing they do know what to do is bring in money as imports now prior to the year if they can because they expect the tariffs to go up in december. All the talk now, it is going to be really interesting to see what happens january to april of next year to see what growth does then. I think things are a little bit skewed in 2019. Alix that was the backdrop to jackson hole, which turned out to be not the lead for the market. We got a read on how they are looking at trade and Business Investment. Heres a look at what they had to say. This trade war is triggering other actions across the world taylor it could easily across the world. It could easily get out of control. I saw businesses become more cautious. The drag on the economy right now is Business Investment what is holding it back is Business Investment. What is holding it back is trade policy. Business leaders express concern about knowing where export markets are going, and what their opportunities are going to be. We have to keep monitoring whether firms are going to continue to react the way they have, and whether caution will be able to avoid spilling over into their confidence plans and into the consumer sector. Alix candice, is it starting to spill over . Candice where you are seeing the fullfledged impact is largely in the factory sentiment channels, whereas the Services Sector has been so far fairly immune. That has given us comfort that the Services Consumer side of the Global Economy is Strong Enough to withstand some uncertainty on the trade front and from the central bankers as well. Alix which i feel like is what we said about germany a few weeks ago, and now the story is like, i dont know. Are seeing some flowing into the Overall Services industry. Vincent construction in germany is running at full capacity, so how do you inject fiscal stimulus alongside the monetary if it is actually going to work . This is what we are seeing broadly across emerging markets. If that can be tax cuts,. Overnment spending vincent but it is a confidence issue. One thing i think central bankers arent saying is they dont want to be tied to what happened in the 1930s, which is where you had a trade war and tight Monetary Policy, and we know how that ended. Central bankers very much want to err on the side of caution. Worst case basis, the world gets and they chase like. Chase flight. There needs to be some kind of coordination. Is that it . Candice absolutely. We are running out of room on the Monetary Policy front. Think about the ecb. Damian think about the bank of japan. That a great time for the rotation to fiscal expansion, but ok. Cignarella en bloombergs vince cignarella, damian sassower, thanks for being with me. Will bebangsund sticking around. You can check out all of the charts and more at gtv. This is bloomberg. Gtv. This is bloomberg. Renita a big transaction in the pharmaceutical business today. Celgene has sold its psoriasis drug. Bristolmyers squibb had previously said it would divulge it as part of its deal with celgene. The trade war boosted demand for gold come arising more than 20 this year. The price of silver is also up. Apples reliance on china is looking like its biggest handicap. The worlds most influential Consumer Electronics company lost 44 billion of market value on friday. That happened after the u. S. And china escalated their trade war. Almost all of the worlds iphones are made in china. It would take years for apple to removeuction production or move it elsewhere. That is your Bloomberg Business flash. Alix thanks so much. It would take three years to move about 20 of iphone production out of china. Heres Something Else of the caught my eye taylor that caught my eye. An upcoming shift in investment would end up funding chinese investment. Senators marco rubio and Jeanne Shaheen sent a letter wanting to reverse investment into the ms ci all country world index, which includes several chinese firms. Talking about part of an issue when it comes to china. Coming up, the u. S. And china are sending mixed signals about the future of trade talks. We break down what is coming. Ext hits a recorduan low. In the markets, we are back from the brink of what could have been a brutal selloff. European stocks getting a nice boost after he will expect ential auto boosts potential auto tariffs. This is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. 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That has changed now, and we are a little bit more risk positive. Up about 3 10 of 1 . No real shakeout from that. Also giving up some of its steam in the twostens spread. Everylly we are flat single day. Even commodities getting a boost. If it isto wonder trading on headlines or fundamental hope that there will be a trade deal. Lets get to it. You had a tariff punch and counterpunch friday. President trump said china called and wanted to talk. Pres. Trump china called last night are great people and said, lets get back to the table. So we will be getting back to the table, and i think they want to do something. Theyve been hurt very badly, but they understand this is the right thing to do. I have Great Respect for it. This is a very positive development for the world. Alix 20 me on the phone is rufus yerxa to National Foreign trade council joining me on the phone is rufus yerxa, National Foreign trade council president. How easy is it to walk back what has happened the last 72 hours with trade . Maria rufus this isnt the first time theyve gotten back together, but in the meantime, weve actually probably gotten further from a deal because we had tariffs go up again, retaliation by the chinese. We are all hopeful. Business is hopeful that this is a sign they are going to get back and talk, but the reality of the negotiating table is we are no closer, and may be further from, i deal they had several months ago. At the same time, we have this increase in tariffs on both sides. Alix we also have this overhanging thread of the International Emergency powers act. If that was understanding, and terms of china and trade, how does that even work . Lots these give lots and of authority to the president. They do have provisions which allow congress to review a president ial determination. If never been used for some kind that preventsict all American Companies from even operating in a foreign market. They are used in much more discrete situations, usually for problems of terrorism or rogue states or Something Like that. It is very important to you cant just tear the worlds biggest economies apart without traumatic injury to both sides. China is important to u. S. Companies not just because of the supply chains that serve as exports to the u. S. The president is very focused on bringing companies exporting home here. Remember, many big American Companies have huge markets in china. China is the second largest market for many of our big multinationals. U. S. Companies arent going to do as well in their profits and sales and in their Growth Without having access to the worlds secondlargest economy to prevent American Companies ed and chinanvest would be a huge selfinflicted wound on the u. S. Economy. Alix is there Something Like it, but not as extreme, perhaps looking at China Listed Companies here in the u. S. . Is there a watereddown version of it we need to start thinking about . Candice they talked about doing it rufus they talked about doing it for National Security reasons on certain kinds of technology, where concerns that too much chinese control of a Critical Technology in the u. S. Would present a National Security threat. Ents forinly have preced using our own laws for that kind of purposes, but lets say we are going to convict them to convince them is pretty crazy. Alix thank you very much. Really appreciate that perspective. Now we want to take a turn to the china angle. There were lots of different stories this morning and it comes to that supposed phone call between the u. S. And china. The foreign minister tweed, from what i know, the two sides have been keeping contact at technical levels. It doesnt have significance. Hat President Trump suggested with us now is george magnus, Oxford China Centre associate professor. What are the chances china wants to come to the table to talk . Nus as far as i know george as far as i know, im not privy to the conversations the white house they are may not have had, but jinpingsesident xi senior negotiator, basically has made some comments which are consistent with what they said before, that the chinese think the trade war is bad for everybody, and the situation remains that they are open to negotiations. So i dont know if theres anything specific about what the president is saying or has heard , but i wouldnt get my hopes up too much. Options china the has considering at some point they run out of u. S. Goods to tax . Citi had an interesting note going for all the possible ramifications like imports of rare earth materials. Potentially longer processing times for licenses for companies , consumer boycotts, more regulatory screening. What is the order of likelihood of what we will actually see from china if they need to to ampt they need if they need to amp up their response . George when china announced retaliatory measures to the president s decision to implement his tariffs from september again, the punitive tariffs, china announced higher tariffs on 75 billion worth of u. S. Goods, but about almost 1 5 of those had already been subject to punitive tariffs, so what the chinese have done is basically to double up. The tariffs on products. Riffed beyond that, i think they must be weighing the curve really they have theuse their own intoof the list of companies that they target with chinese interest. Of course, theres redtape intrusion into the activities of u. S. Companies, something which is also very commonplace. Alix to wrap it up, as the market expert here, dollarsyuan. How high can we go . How low can the yuan go . George im sorry, once more . I couldnt hear the question. Llaryuan, where do we get to . George i think last year the to thet a sevenyear low u. S. Dollar. I think people in china are just letting it go incrementally as the tariff war kind of heats up. Ultimately i think theres going to be a significant depreciation of the yuan, maybe to four beyond eight. I think that will not happen in the near term because it is far too stabilizing for china to do that, but eventually the compatibility of chinese Monetary Policy and the reserve cover of the Financial System i think will actually bring this about. For the moment, i think we should expect to see the peoples bank of china continue ratet the yuandollar slide. It fulfills an important messaging system for them. Alix thank you so much, george magnus, Oxford University associate of china centre. Economy andGlobal Markets have increased following renewed escalation in trade sentiments. Still with me, Candice Bangsund of fiera capital. How do you deal with the event risk . Candice in the near term, theres lots of volatility. More ontrying to focus the fundamentals backdrop. Needless to say, things have escalated and it is a major risk to our base case, but if you look through that, youve got Central Banks in full on stimulus motocross the world for an already fairly healthy Global Economy. So we think if these trade tensions subside as we suspect, the global fundamentals will start to matter again. Bond markets will start to reflect that. Alix putting aside trade tensions if we can, you are still lookingat a stronger dollar you are still looking at a stronger dollar. I wonder if it is not a good idea to have the dollar index lower. The u. S. Dollar is countercyclical, so if we do see trade tensions subside, the Global Economy recalibrate, then we would see a decline. But giving safe haven flows has been causing the strength. Of mobile growth, the u. S. Dollar is we can is weakened. Candice is there a risk alix is there a risk there, the n . Candice structurally, we expect we are not going to see a huge pop in inflation you would expect even rockbottom unemployment levels. You think it is going to be a slow grind higher, but already you are seeing trends in the u. S. ,owell mentioned it last week inflation nearing target, accelerating. These were development on the trade front. Candice, thanks. Now renita young is here with first word news. President Trump and shinzo abe have agreed in principle on a new trade deal, hoping to sign a treaty next month. It should help American Farmers heard by the trade war in china. Meanwhile, the u. S. Will hold off on imposing new tariffs on japanese cars. Frances president Emmanuel Macron pulled a massive surprise on his g7 guests by inviting irans foreign minister. The two met for 30 minutes. President trump said he supported president macrons decision, but said it was too soon for him to meet with the iranian official. Former illinois congressman joe announced a primary challenge for the republican nomination against President Trump. Walsh was a one term congressman who now hosts a talk show on the radio. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im renita young. This is bloomberg. Alix thanks so much. Coming up, the race is on to be the banker for the worlds biggest ipo. Global bill makers make their pitch to saudi aramco. More on that in todays wall street beat. This is bloomberg. Renita this is bloomberg daybreak. Coming up in the next hour, francisco blanche, bank of America Merrill lynch head of commodities research. Now to your Bloomberg Business flash. Shares rose to a record today. Activist shareholder dan loeb reportedly is building a stake in the french italian maker of rayban sunglasses. Thirds said the firm point is still buying shares. Last month, women gained 16 seats on the boards of companies in the s p 500 index. They now have a 27 share of directors fees. 19 companies increased the number of women on their board. One of those was copart, which previously had an allmale board. Im renita young. That is your Bloomberg Business flash. Alix so youve got more board members, more money, and that means more female advisors. Ubs and Morgan Stanley are also adding more women to their advisor teams under pressure from female clients, who are living longer and making more money. We turn now to wall street beat to cover three things wall street is buzzing about. First up, Deutsche Bank and ubs waived andedly alliance. And ben jerrys challenges jamie dimon. Urge him to walk the walk if they are serious about a new way of doing business. Joining me are sonali basak and brook sutherland. It was a whole weekend where we didnt have a story about Deutsche Bank, and now it seems like with us. [laughter] sonali ive this love this story. The head of equities at ubs came from Deutsche Bank, and was at this meeting and said it was kind of earlier this year. No . so that means sonali its a really tough one. The idea was to merge them so that ubs Equities Division could shine. Like i was saying, why wouldnt you just take the talent . Obviously Deutsche Bank is getting rid of most of its equity Trading Division at this point, so it sort of shows how desperate they were, that they were willing to talk to everybody and anybody. Whether this happens is unlikely. Alix lets talk about saudi aramco, the biggest ipo in history. Everybody wants a how part of it. So now it is the secondaries we have to be into . Have lazard. Ready if aramco does get what it wants, one hundred billion dollars in proceeds, potentially to trillion dollar valuation, it would be a big coup for a lot of these banks. There was a story that banks were not sure whether it was worth the pain. I love that this is so big that you have to have some banks to underwriting, and supervise the other banks. I love when you called it the hunger games. Can you imagine if you are jp morgan or Morgan Stanley and you are not on this ipo . Talk about the pain if they yank it away once again. Got to try to get your name in there and get a piece of this. Sonali ever core was on before. Really, jp morgan, Morgan Stanley working on the bond marketing for the last set of potential ipos that didnt happen yet. It is tough to not get it this time around. What are your views now . Do you want to be on this kind of smaller retainer for a deal that is delayed for so long . I think theres a great hope now that this will happen on the timeline that they say it will. Alix i love this. It is basically ben jerrys versus jamie dimon. Thatgoes to the roundtable was not just about shareholders, but the culture and everybody, and ben jerrys says ive been doing this for 30 years. Brooke that was the initial reaction when this came outcome of that was mostly fluff. Ceey said a lot of ni things, but there were no commitments to specific actions. I think people are wondering exactly what this meant, pointing out that if you really mean this, you can convert into a benefit corporation, which does legally in trying some of the things you are talking about. Not really seeing concrete steps or any type of action on the part of these companies. Sonali i know we think of ben jerrys as the maker of Bernie Sanders ice cream, but remember, they are also owned by unilever. It is not that is just some random, oneoff company. Its ben jerrys. Its patagonia. Its lemonade. Its a smaller insurance company, which is not thought of as socially responsible, but it is showing that even big aspanies can have divisions part of this. Brooke institutional companies are now competing with these upstarts for employees with the likes of google. So i do think they have to seriously look at this come about what they are ultimately willing to do with the question. Alix really appreciate it. Thank you both so very much. Check this out. Investors may not getting the whole story on how much these actually make. Many executives make a lot more. Orville says it was paying 190 million. How about 335 million . You have pay deals that can multiply the number of shares, plus a strong stock market. Worstsup, hong political crisis in dictates in decades. If you are heading out, tune into Bloomberg Radio on your car , sirius xm channel 119 or on the Bloomberg Business app. This is bloomberg. Alix today we are looking at hong kong. Joining me is bloombergs vince cignarella. How are traders looking at hong kong . Vincent we are approximately one month away from the october celebration in china of the 7 party. R of the communist the concern is that the streets need to be cleared before that takes place. What i am hearing is watch for it to happen about two weeks prior. The real fear is we will not see the Chinese Military go in. This wont be the Peoples Liberation army, but rather the swat teams, which would give a little bit of a backdrop of saying this isnt a military operation. This is a civilian operation. It is no one elses business. This is not something any president in any situation would do to having riots in a major city. Have isity that traders that trump should have waited if he was going to do anything until that time because now it looks like president xi reacting to what he did, not the other way around, so we lost a little bit of an edge. Alix appreciate that. Vince cignarella from bloomberg. Coming up, Marc Chandler, bannockburn four x managing partner, will be joining me for the hour. Dont miss it. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Pres. Trump i have Great Respect for the fact that china called and want to make a deal. I have Great Respect for president xi. Alix President Trump says china wants to talk, and any deal will be transformative. We are joined by nathan sheets, pgim fixed income chief economist. Losses andre President Trump talks up a trade deal while the worlds biggest wealth manager turns bearish. And the g7 triggers a japan trade deal and a surprise visit from irans foreign minister. Welcome to bloomberg daybreak on this monday. Chandler, marc Bannockburn Global Forex managing partner. Get ready, this guy talks even faster than i do. We are seeing equities up by 5 10 of 1 . Still seeing some buying in the bond market, but yields down only two basis points. It was down by eight or nine earlier. Even crude is getting a nice rebound. But can it really last . Your chart of the morning, dollaryen, which doesnt necessarily say good things about that. Marc know, but it is amazing when markets first opened in asia, the dollar took out recent lows. Year,t new lows for the even below that january flash crash. Then we snapped back, basically back towards the high that we saw before the weekend. This is really going to some new lows for the year, almost a new three year low, back to no change. Alix it makes you wonder. Marc and also shows you still that everyone is talking about how strong the. Dollar is. The yen is stronger how strong the dollar is. The yen is stronger still. Alix and good thing we have auctions to drive that lower. For your morning headlines, President Trump saying the prospects for a trade deal with china are better than they have been when talks started. Pres. Trump china called last night our trade people, and said lets get back to the table, so we will be getting back to the table. Theyve been hurt very badly, but they understand this is the right thing to do. I have Great Respect for it. This is a very positive development for the world. Alix a top newspaper editor in beijing is questioning the president s version of events. Meanwhile, the leaders of the u. S. And japan announcing a tariffs onto slash American Farm products and japanese cars. Former illinois congressman joe walsh has launched a longshot challenge against President Trump for the republican nomination. He told abc news the president is erratic, cruel, and incompetent. Amgen has agreed to by worldwide rights to seldens psoriasis celgenes to psoriasis drug. Joining us for everything on the market is nathan sheets, pgim fixed income chief economist. It has been a wild couple of days. You are smiling. You are in a good mood. So where are we . Are we in a place where u. S. Companies can no longer get into china . Where are we . Nathan i thick it is a better time to be in economists than a big is this man then a businessman. The president introduced significant uncertainty into the u. S. Economy, and businesses and markets are struggling to drag struggling to digest it. On the china call, i would interpret that as President Trump saying hes ready to get back to the table. Thats my expectation, that if there were enough stress between the markets or in the economy, that we would find a way to make a deal. Give. S. Now has some the big challenge in negotiating with the chinese is weve got huawei, currency manipulation, and tariffs. There are things we can given this negotiation, so it wouldnt surprise me if things move forward. Its not imminent, but if we get a deal in the next four to five months marc where do we think this endgame is going . Is it going back to the status quo, or are we headed someplace else . Nathan i think it is probably a new place. It is not all of the reforms that the administration would like, but i think we will get a few of those. I think there are still folks inside of china that recognize that a Better Business climate would be advantageous to the chinese economy and to china standing in the world. It wont be the quantum leap that the administration has advertised, but a moderate step forward. Maybe im too optimistic. Alix you do sound very optimistic. Marc what about another scenario, that the u. S. And china are heading for a cold war, and that this is beginning a disengagement process where, even if the president doesnt enforce his order, they have a coolingoff effect and we see u. S. Businesses rely less on china, china rely less on the u. S. , and that the endgame is the disengagement. We have a cold war, a chinese and a u. S. Block. Nathan we will be proceeding along a new track. I think businesses have got the message that it is risky to be to integrated with the chinese. I think we will be moving along a different path with less integration. , the u. S. He long run is the largest economy in the world and the chinese are the secondlargest. Over the long run, weve got to interact with each other. Economysee how you have over decades where the u. S. And china do not have meaningful interaction. Alix i was looking over the emergency economic powers act. How would that apply . Certainly you cant say no companies can be in china, but there would be pressure to move out of china, and theres are not necessarily easily reversible once you make that decision. Nathan i agree. This is what i was saying about things being along a different track than they were before. I think five years ago, we were seeing deep integration between these two economies as being the most likely outcome, and now it is more like moderate integration. Our the u. S. And china in lifetimes ever be integrated as the u. S. And europe are . Under the circumstances, i doubt it. But by the same token, the u. S. And u. S. Businesses i mean, china is a huge market. For chinese businesses, the u. S. Is a huge market. We wont be able to entirely ignore each other either. Alix what i find interesting is when you have an offshore yuan at a record low, if that headline had crossed three or four years ago, we would have been seeing down triple digits for the dow. Is that reflective of what nathan is talking about . Marc it will be interesting to see what you think. On one hand, you have emerging markets as a whole getting hit by this global slowdown, partly triggered by trade tensions. And china seems to be willing to allow more weakness than maybe it would have otherwise. Nathan i think that is exactly right. The fundamentals are pushing toward a weaker chinese currency. Are thendamentals softer underlying chinese economy and the implications of the trade war. But on top of that, in this context of a trade war, the pboc is less willing to spend its reserves defending any given level of the currency. Alix lets wrap these two points into, im a business, i a fed official, what do you do . We spoke to loretta mester, bank mester, fed bank of cleveland president. Heres what she had to say. Loretta we will have to see how businesses react, whether that spills over into hiring plans and into the consumer sector. Alix i feel like the story is we are totally fine, but then the german ecoconfidence tells us maybe not. What do you think . You still look so happy. [laughter] nathan lots of risk out there. Again, its a great time to be in economist. Theres a lot to talk about. But theres also a lot of risks facing the u. S. Economy, the Global Economy now. With the trade war and the way it is playing through global trade and manufacturing leading the way. On the one hand, the underlying economy in the u. S. Continues to perform ok, but theres lots of crosscurrents in the data, as jay powell has said, and lots of downside risk. So there is a case for some further monetary accommodation. That tradeu think has taken a hold of Monetary Policy . Both times the tariff troops ended, the tariff truce we saw what happened. Powell basically kept with the midcourse correction, and within hours, we have an escalation of trade tensions again. Is this taking back Monetary Policy . The Federal Reserve has essentially had Monetary Policy taken from it, being dictated by trade policy . Nathan one of the challenges jay powell and his colleagues face is a vicious moral feedback loop, where as they cut rates and give monetary accommodations, that gives the president more scope to pursue his trade war. Alix is it fiscal . Thats the next conversation. Trade, trade,s trade. Highlightingpowell significant risks to the u. S. Economy. How the burden now shifts to fiscal policy and the interaction between the two. This is bloomberg. Alix modern monetary theory is no longer just for the fringes of economists in the world. You have people like stanley fischer, Larry Summers talking around the idea of fiscal and monetary stimulus working together. I spoke with the former treasury secretary friday. Heres what he had to say. Where i part company with modern monetary theory is in believing that it would be good to never change Interest Rates, to believe that somehow we can do it all always with zero to believeney, and that nothing about budget sustainability matters in any circumstance. Alix still with me, Marc Chandler of Bannockburn Global Forex and nathan sheets of pgim fixed income. Nathan there is scope for good fiscal policy in the United States. Alix working together . It would cut down time andy lack for fiscal stimulus. Lag for fiscal stimulus. Policistse way typically thought of it was that it was slow, and then Monetary Policy response to incorporate the economy. Unless the government was prepared to delegate fiscal policy to the Federal Reserve, which i dont see happening anytime soon, i dont know how youd achieve this realtime coordination of monetary and fiscal. Think there really is scope for fiscal expansion in the u. S. Given the tax cuts we just had andy 1 trillion budget the 1 had and trillion budget deficit . Nathan i will stick my neck out and say yes, provided it is very good, highquality fiscal, and particularly infrastructure. The argument is look at where Interest Rates are. Are there Infrastructure Projects in the United States that would have a higher return than the government securities . By perhaps an order of magnitude. Get out on the roads and the airports and bridges. I think the answer to that is emphatically yes, but its got to be good fiscal. If it is not good fiscal, then its very dangerous. Marc but good fiscal is just which side of the aisle you are on. We got Corporate Tax cuts. We talk about indexing capital gains, talking about other tax cuts making the middle class tax cuts permanent. What are good tax cuts in an environment where the economy seems to be growing around trend . Stockmarkets a few percentages off record highs. Nathan good fiscal and good projects are ones that will raise the productive capacity of the economy. I think that as a technical matter, we could go out and find some of those projects, but i think that getting the political system there is going to be the dairy is going to be very difficult, if not impossible. We need more infrastructure, which leaves one in a pessimistic place about even though there are opportunities that would pay for themselves many times over, whether our political system can actually deliver it, and that is where the risk with these kind of theories is. Alix so if we get good fiscal, Interest Rates could help us, right . Does it change this chart on my 51030 yearch is breakevens. Does that fix it . Nathan the argument goes that if we have good fiscal, it could raise the underlying productive capacity of the economy. If you raise the underlying productive capacity of the economy, it is reasonable to believe in that world that you have a higher neutral interest rate, and that helps lift the Interest Rates along the entire curve. I would say that very likely would tend to lift the long end because you would have more of an effect over time. The long end more than the short end, it would help reverse the inversion. Also going to help put upward pressure on Inflation Expectations. Marc i think the five year breakevens, and my work, i find it really attracts a really tracks oil prices. Alix now youre talking my language. Marc so how will fiscal spending really address Inflation Expectations when it is so much driven by oil prices, which is more or less out of the control of any government policy . Nathan i have to say im very aware of that correlation and have no idea what it means. [laughter] nathan i think oil does have some impact, but when you look at those relationships, its way too tight. It makes me wonder whether there arent other factors influencing both oil prices and Inflation Expectations. I do believe we can work on Inflation Expectations through channels over and above oil prices. Alix let me ask you this, marc. We get good fiscal policy, low Interest Rates in the u. S. It can help boost Inflation Expectations. What does that wind up meaning for the dollar . If we are doing that, europe is not doing that. What is the implication . Marc i find in my work the best policy mixture of currency is tighter monetary, looser fiscal. I dont think we are anywhere close to that, but i think in europe, that is the other side of the equation. Part of the reason our bond yields are so low might have something to do with 16 trillion of negative yields overseas, primarily in europe and japan, looking for a home. In europeyield debt at negative yields. Marc i thing i saw negative danish mortgages. This is an incredible world, so that also helps trigger it. Qe, perhapsdoing having germany loosen up on fiscal policy. It is doing nothing for yields, which keeps money coming to the u. S. Nathan i think that is broadly right, that if we have good fiscal, that should make the economy more efficient and mean that there is more demand for u. S. Assets. I think these dynamics in markets about what is happening abroad just serves to reinforce that. Alix so how low can the yield go in the u. S. Based on that scenario . Nathan well, im really hesitant to make too bold a statement about rates. Longterm Interest Rates in the United States are probably one hundred basis points or more lower than i expected they would have been a year ago. I think what weve learned is that there are powerful dynamics working at the long end of the yield curve. We talked about inflation. We talked about for inflows. Central banks still have a lot of duration on the balance sheets. Commercial banks have huge demand for treasuries. Honestly, i dont know where the floor is. I think the best economy is Strong Enough and inflation is high enough, we wont see negative yields or zero yields in the United States. But jury is still out where this thing is going. I gear from now, what i be surprised if yields were at 2. 5 . No. What i be surprised if they were at 50 basis points . No. Alix really thoughtful answer to that unfair question. You, Marc Chandler of Bannockburn Global Forex. Nathan sheets of pgim sticking with me. This is bloomberg. Renita this is bloomberg daybreak. Amgen is getting a chance to buy a blockbuster drug just as some of its big sellers are starting to fade. They are paying 13. 4 billion for celgenes psoriasis drug. Celgene is selling the drug so it can win antitrust approval for its merger with bristolmyers squibb. Gold hit its highest level since 2013. The trade war boosted demand for the traditional safe haven. Gold has risen more than 23 this year. The price of silver was also up. Enjoy discussing politics at work . Dont take a job at google. New internal rules present a shift away from the internet giants famously open culture. They discourage employees from debating politics and having other disruptive conversations. Google warned workers they will be held responsible for what they say at the office. That is your Bloomberg Business flash. Alix that was an incredible story. I just couldnt believe it. This will be an interesting chat on google floors, and it has to do with mark carney talking about Digital Currency maybe replacing the dollar. Why we should embrace change to come, we shouldnt swap one currency hegemon for another. Nathan i think a lot of people thought carney said something new. I dont think he did. The u. S. Wanted the dollar to be the premier currency. I think carney dug up ban kcore. Alix does it have legs, though . Will it change the game in the next couple of decades . Marc maybe in the long run, but not before our time horizon expires. It is not going to happen anytime soon, for the same reason it wasnt accepted at bretton woods. The u. S. Might not be Strong Enough to impose a new bretton woods, but a Strong Enough to one set up against it. Alix the lack of nationalism rises going to change the game. Marc it could, and you are already seeing more erosion. Not beingde is maybe done so much in dollars. But generally, the dollar is still the hegemon. Alix coming up, well rebounding, but still under pressure from the cherry war from the trade war. We will discuss with francisco blanch. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Alix this is bloomberg daybreak. I am alix steel. Equity Futures Holding on to the green on your screen. European equities are flipping into negative territory. Autos holding up as President Trump seems like he does not really want to impose tariffs on german carmakers. Everyoner yuan is what seems to be watching. Up. 3 . The spread is turning positive. Now it is wider. One basis point. We have the data dropping for durable goods for july. Strong. Goods orders over 2 . If you backout transportation, it is weaker, down. 4 . If you backout nondefense and backout air, it is down. 7 . Pockets of the economy doing well, others are not. Chicago fed National Activity index coming in negative. 36. It speaks to these areas of weakness in the country. Marc chandler of bannockburn, how do you think about the separation between some areas doing well, some areas not, how long does that last . Marc it looks like it is the private sector that is suffering. I have to think boeing has something to do with that. Boeing accounts for that is the story. The durable goods ordered does not change the impression. The consumer seem strong, Business Investment is still lacking. Alix that was exactly what the tax cuts were supposed to do and that is what we are not seeing as the shipments slump. Lets get to what this beads for the commodity sector. Oil feeling some of the pain from the trade war. China announcing it will impose an additional 5 tariff on crude oil from the u. S. Sayingnt trump gave hope the country wanted to discuss a deal. Oil is rally. Still with us is Marc Chandler of bannockburn and nathan sheets of p jim. Francisco, great to see you. Wild had like. When i thought i said this was bad. Is it bad . Francisco the u. S. And china are not traded much as it relates to oil or other commodities at this point. It is not a huge impact. The issue is it is a bit of selfharm in the sense you are making your domestic refining margin business worse. You are having to buy crude elsewhere. What you are doing is deteriorating the position of your unrefined exporters. Now these guys will be in a worse position relative to other refineries around the world. Position china in and in a position in i ammo 2020. These changes will favor light sweet crudes over other grades because of the way the acquisitions will worse to reduce warfare on the high seas. China is hurting itself by doing this. I wonder whether this is desperation or it shows that chinas threshold is quite high. Ands one of the two, markets are try to figure out which is which. Nathan if china is not importing a lot of u. S. Oil, why would this be affecting chinas refinery capacity and their margins . This will make oil cheaper relative to international oil. We are seeing that already, which means refineries around the world are more competitive. Thining margins are very and refiners always work on tight margins. By putting up a tariff on a commodity when you are a secondary processing unit, you are hurting your own market. It does not make a lot of sense economically, but of course the impact on day one is not that big because china has not been willing to buy u. S. Lng or u. S. Soil and theyre holding back in hope of a great deal. China saying to its providers and producers, disengage and the u. S. Oil, a disincentive to buy u. S. Oil. It a time when the u. S. Is trying to boost its Global Market share. Francisco they are. It is not the same thing to impose a tariff on a commodity versus a manufactured product. When you oppose a tariff on a manufactured product, you break down the price of the global good. Ways, you are enhancing your domestic welfare. That is what the u. S. It has been moving along the optimal tariff structure because we rarely have tariffs in this country, 1 in the last 30 or 40 years. Now we are moving higher. That is why youve not seen impacts on u. S. Markets that much. At some point this will hurt. We are reaching the limits of how the trade war impacts the u. S. Domestic economy. Your frame that this moves represents desperation from the chinese and they do not have tools to bring to bear in the trade war. Low painepresents a threshold. It highlights the strength and weaknesses of the china position. Let me throw your question back at you. How are you interpreting the relative importance of those two factors . Francisco go back in chinas history. We know the chinese have a high pain threshold. I do not know specifically what the pain threshold is of the communist party, but historically, china, we look at the great leap forward, they have a high pain threshold and they have a long time horizon. I am always skeptical that we will see both sides come to the table over the next week or two and resolve this trade war. Rising andna is challenging the status quo. They will be pushing. Also conflicting pain thresholds. On the one hand you have china higher, but the u. S. Producers pain threshold is not. It is getting lower. Is that part of the equation . Francisco i think it is. The u. S. Trade war has three angles. Angle,mercial economic National Security, and domestic politics. If you can hit domestic politics hard, maybe you have a chance of changing the dynamics on the trade war. I think that is what china is trying to do. Soy has been a great example. If china lets u. S. Soybeans rot in storage for the next few months, farmers will remember that message come the election in 2020. That is a little bit what is going on in the background. If u. S. Oil prices relative to the world are more discounted, maybe there is a message to the u. S. Midwest, texas, and oklahoma, the republican home base. Alix basically they can do what opec has been trying to do and has not been successful. We were having a debate about oil and inflation breakevens. What is the correlation . Francisco one thing we have noticed in our work is going back the last 50 years or 70 years, we have noticed changes in tariffs are highly correlated to changes in inflation. Higher tariffs mean lower inflation. There is a cyclical channel that higher tariffs affect inflation through. Thatlieve there is a risk if inflation keeps going up, we end up getting weird Inflation Numbers like never to percent like 2 , 3 . We are rewriting the rules around free trade and because we are doing that we do not have bubbles we have gone through. The Major Economies have not gone through a trade war in so long it is hard to determine the outcome. It is difficult to see how we end up with something for castable with something forecastable given what is happening in the background. Nathan i think that is the point jay powell was making in his jackson hole speech is that the Federal Reserve knows how to analyze the economy and have a view on underlying drivers of consumption, but trying to predict what the next week will be from the president and how this trade war will evolve is an example of what economists have called mining and uncertainty. It is already known it is a known unknown. Fed is in a better plate maybe a worse place than most other institutions to thing out those things. Francisco which is why people keep buying gold and u. S. Treasuries. I look at the latest cpi numbers and see goods prices rising. That is where we have most of the deflation. Then i look at the corporative cpi. Three months annualized, 2. 8 . Inflation, kept at bay, is creeping up. Francisco and this is the interesting part of the trade war. It has not hurt the u. S. Economy that much so far. I think part of that relates to this idea that the u. S. Has too low a tariff relative to the optimal tariff structure for the Worlds Largest economy. Now we are forming up and that is not impacting the economy broadly. It may at some point. Ist is why i think everyone obsessed with what the s p 500 is doing. For the time being the u. S. Economy is in a good position. It has a lot of domestic levers to stabilize. My feeling is that through mechanical channels, you are absolutely right. I am worried about the uncertainty we were discussing, and i think that is leaving it signature on confidence in the Business Community and in Business Investment. I think that so far, maybe it is limited, but we are seeing lots of risks on the downside as a result of these uncertainties. Alix also, you brought up soybeans earlier. If you mess up your supply chain and go somewhere else to get it, you may not just go back. If you diversify out of the u. S. Into brazil, they will stay there. They will not go back to u. S. Soybeans. Is it the same with oil . Francisco china is the Worlds Largest oil importer, the second largest oil consumer. It is difficult for china to stay away from the world market because the u. S. Is now the worlds Number One Oil producer. They could stay away from u. S. Oil. One of the key risks we highlighted in our research is that the chinese escalated the situation enough to say we will not follow through with u. S. Actions and start buying iranian barrels. That is a pretty scary scenario. Obviously one that brings a host of new geopolitical dimensions into the equation. At that point, the u. S. Will have to decide whether they want to allow oil to move from iran to china. Alix such a great conversation. Francisco blanch from bank of america. Nathan sheets, it has been a pleasure. Marc chandler will stay with me longer. Coming up, a titfortat on trade taking a bite on apple sale prices. How impending tariffs could impact the iphone maker. Goods if you back out to fans and air, it was not great. 7 . That out, down not a lot of spending on equipment. Bloomberg users palm interact with the charts shown on gtv. Check it out throughout the program and save the charts as well. This is bloomberg. Renita coming up the next hour, lori calvasina, Rbc Capital Markets head of u. S. Equity strategy. Shares of rose to a record after the shareholder is reportedly buying a stake in ray baron sunglasses. Reuters says the third point is still buying shares bankers are heading to saudi arabia to make their pitch for the worlds biggest ipo. Bloomberg has learned that starting tomorrow, deal makers representing Advisory Firms will go to saudi aramcos head orders to compete for a role on the share listing. Moreompany has invited than 20 firms from the United States, europe, and asia to take part. The drug industry make it a sign of how much it will cost to resolve their legal liability for the Opioid Epidemic in the United States. Rulelahoma, a judge will whether Johnson Johnson created a public nuisance by duping doctors into overprescribing opioid based medications. Oklahoma has sued for as much a 17. 5 billion to recover the cost. I am renita young and this is your Bloomberg Business flash. Alix time for bottom line. We will take a look at three company stories worth watching this morning. Today we look at the trade war and how is impacting economies. Wasiksmith and sonali join us along with look sutherland with brooke sutherland. Tesla is looking at raising prices on cars and china along with the yuan hitting 11 year low. This is problematic for tesla because tesla has yet to produce any cars in china. All of the production is taking place in the u. S. Those tariffs hurt that much more. Tesla does have a factory in the works that is set to be producing cars in shanghai later this year. In the meantime, this is problematic for a carmaker that is highly dependent on china for its next big source of growth. Alix thanks to bloombergs molly smith. The Second Company we are looking at is apple. There interesting stats on what apple could be hit with on these new tariffs. Sonali even after losing 34 lion on friday allowed, with apples reliance on china, you have dan ives of wedbush saying it would take three years to move just 20 of the production out of china. Meanwhile you also have apple competing with huawei in smartphones where theyre trying to get more chinese appeal with china being the second largest market. Company we are looking at is boeing. Brooke the stock was actually up last week because there was optimism that the 737 max 8 may finally get back in the skies. Interesting developments there. Boeing gets a huge chunk of its revenue from china. It is one of the number one companies you think about any patient s an s anytime theres an escalation of trade tensions. Any type of agility you see will reflect back on going. It does have a Completion Center in china it said it is committed to. It wants to work with the local air producer in china to maintain that. It will be interesting to see whether it will be able to do that when you see President Trump coming out with these threats of forcing u. S. Companies to remove all of their production work in china. Alix in contrast to apple, boeing stocks are up today. What is the thought process. Becausei think it is up of the optimism around the 737 max. There was thought this would be a neverending saga for boeing. We have seen incremental developments in boeing hiring workers to get the planes ready for delivery. Developmentsntal are overshadowing the trait factors. Alix that makes sense. When you take a look at the importance of china to boeing in terms of revenue and all of that , where does it sit for boeing . Brooke it is their second biggest source of revenue after the u. S. That becomes a greater share of boeings business as you go forward. U. S. Airlines are not buying a lot of planes. A lot of it will be coming from china. Boeing has been in negotiations about the big china carriers. As you talk about not only , it alsoe 737 max back has to think about revenue down the road. Isht now the 737 max overshadowing this. If you longterm investor, thinking about boeings prospects, you cannot be comfortable about the way these trade conversations have turned. And the lovely tweet from President Trump that great American Companies are hereby ordered to look for an alternative to china. We talked about this earlier. When you shift the supply change , you will not change it when you shift the supply chain, you will not change it back. Marc another point is if i was in china i would be thinking about how attractive airbus looks compared to boeing. If im right about the disengagement, it makes sense that that is what china would do over time reduce their buying on boeing. Brooke eventually they want their own homegrown carrier to be a force that can rival airbus and boeing. They are not there yet down the road they are thinking about that. Why not go to airbus until you can get your own homegrown champion . Alix regardless of the industry youre in, they want their own company, they just need time. Brooke sutherland, thank you very much. Coming up, i did not make him say this, oil is what Marc Chandler is looking at your he is actually looking at it. It means for investment and the economy war. On what we are both watching. If youre jumping in your car, turn on Bloomberg Radio and the Bloomberg Business app. This is bloomberg. Alix here is what marc and i are watching the Baker Hughes Oil rig number. We got it on friday. I know i i care. Why do you care . Marc i do not care about the oil market per se. What i think is investment in rigs and in the oil field is the key that has been driving investment. We have seen investment numbers, it is not because the oil sector has not been performing. What ive seen as the oil recounts falling. That has been another drag on Business Investment. There,f you back out that is what happening. Myc in the shale industry, understanding is you need to have new holes being drilled because the shale is absorbed very quickly. You keep having to replace old rates with new rigs. We are not doing that. The rate count is the lowest the rig count is the lowest since january 2018. Huge surge of production may be losing momentum. Alix how you relate that to employment and wages . You saw a lot of high wages in the oil district. How does that trickle out . Marc we are already seeing weakness in the manufacturing sector. , oftenilling, mining picked up by the manufacturing sector. We see weakness come in. We are already seeing that. I am watching this is a sign of the overall strength of the economy and a part of the economy that is doing well, the energy sector. Alix such pleasure letting you spend this hour with me. Marc chandler of bannockburn. Ill be seeing you tomorrow. Thank you very much. That wraps it up for us. Coming up on the open with jonathan ferro, lori calvasina, on a date that could have been a lot worse. You have equity futures up. 6 . Unchanged in europe. The dollar still getting a bit. This is bloomberg. Jonathan from new york city for our audience worldwide. Im jonathan ferro. The countdown to the open starts right now. Jonathan coming up, President Trump says china once a deal. Beijing has yet to confirm any talks. Heightened uncertainty following four weeks of losses as World Leaders wrap up the g7. Central bankers leave jackson more. Nder pressure to do here is your monday morning price action. Futures positive 20 points on. 75 . P 500, up the euro weaker. 1. 11 12 is where we change. Yields unchanged. One point 1. 1112 is where we trade. Yields unchanged. One top one comment at the g7 was all talk to a market that had been on its knees
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