It will be interesting to see what happens after the u. S. Labor day holiday and we get more bodies back in there. Lets dive a little deeper into the action with our markets reporters. Abigail lets take a closer look at a chart that we have been looking out bunch over the last week or so and especially today in different ways and that is making the point that august, the third is shaping up to be risk off. These are all futures. Manyrple, we have the futures, and yellow, we have gold futures, and white, yen futures. The month of july, all were basically flat and then after the fed meeting, stocks went lower, gold shooting higher, and bonds and the yen also trading higher. A lot of trade uncertainty in here overall, but over the Third Quarter, the s p 500 down 1. 5 . That haven has had it certainly and the Third Quarter and august, too, which is shaping up risk off. Look at workday which had a pretty terrible day and is down about 10 for the month. Take a look at this chart to look at the monthly action. This is despite secondquarter results that beat analyst estimates and amid raising the four year outlook for prescription revenue. Wheres the disconnect . Was at least one firm upgrading the stock, however, the second half of the year is actually seen as being a riskier period. This is all fitting to what we see with Technology Stocks in august. Also seeing the nasdaq 100 lower and the s p 500 infotech index and the Software Services index down. Romaine thanks abigail and renita. Still with us, quincy of credentialed financial, and sarah. The next couple of weeks, we will start to get a little bit more out of the Central Banks and we will hear some speeches next week, we have the ecb meeting, and the u. S. Fed meeting on the 18th. What are we expecting . Sarah next week, we will kick it off with the ism data, and payroll data on friday, so that will be well watched. After labor day, you would assume people will come back to their desks, so we start to see activity. We have a lot of fed speak next week. Jerome powell will give a speech over in zurich. Thatyou look at the chart abigail showed us, we saw this swift change after the fed meeting. If you look at what fed funds futures are pricing in, they are still expecting a basis cut in september and the two by december. We need to make sure the fed is actually on this pass. Joe quincy, we were talking about this kind of confusing picture. How vulnerable is the economy if trade headlines and stock market volatility feed into consumers is that a plausible way to have a slowdown . Quincy absolutely. Consumers are most worried about their jobs. See, manyntinue to of the consumers are not even in the stock market, but they continue to worry about being left out. They start getting a negative feedback loop and they will hold back spending. As they go into the next month through the market, we will be paying attention to risk on because we will have the ipos in the tech sector. Therell be a heavy package of ipos. We will see how they do and that will give us a good indication of whether or not we could be moving into a little more risk on as we head to october which is starting the best period in terms of seasonality for the market. Scarlet what kind of demand do you think we will see for the likes of skeleton o peloton or we work. Quincy that is different because we started to see pelotons financials, but i think there will be interest in these companies. No one is expecting that the economy is going to fall off a cliff, and going into the ipos, there is money set aside for it. We will see whether or not the appetite is there. Of thee defensive nature last month, the last two months, there are pocket the technology that have held up nicely. It has not been completely defensive but selective over on the side of cyclicals. Romaine pick up on that, we have had a lot of guests who remain pretty optimistic on the market. Indicators that seem to be flashing that might be an indication to buy. Weve had some note out of jp morgan that they see a little more upside. People are still pretty optimistic, but you do have to take into account that the s p is still up about 18 . The majority of people are still not expecting those gains to continue at a pace of that sort. I want to echo something that quincy just said. I was taking a look at the ipo etf and interestingly enough, this was the worst month for the etf of the year whereas for the Broader Market, may was worse. This could potentially be a signal that maybe we are starting to see risk for these riskier, young the rolling over, but still something to keep an eye on. The fed said the stock market is still pretty close to its alltime highs. Those that feel discordant with a tone that everyone is talking, because i am feeling that people are bearish, people are calling this a turning point. After jackson hole, the recession talk picked up. Is that being reflected in the market . Quincy the only way it is being reflected is it has been defensive. When you see utilities, Campbell Soup leading the market higher, you know this is a market that says lets be defensive. When you see gold doing that well, it is defensive. Nonetheless, when markets are really scared, everything sells off. There are many who believe the market needs the selloff more. Clean it out, get rid of any excesses that are still in there, and set the stage for the second half of the year and move the market higher. Scarlet is interesting that you say that the move that we have seen have gone into defensive sectors. Real estate, staples, they are definitely of the smaller groups of the s p 500. If they start to see a bid and the cyclical, bigger sectors dont, is that enough to push the s p to session highs . Quincy of course. In terms of what pushes the market higher, it does not matter what it is, but you can do it on a tilt. If you start looking on the cyclical side, investors are putting money into some of those cyclical names. They are just being extremely selective. That is actually very healthy because you do not want the market rising with everything rising at the same time. Beenis a market that has careful. And punishing, unfortunately they take a look at ulta, it is punishing those who are not delivering. Scarlet especially those that are flying in the safe in the idea that the consumer is staying strong. Pontak. Rosby and sarah that does it for me. Whatd you miss . Is up next. This is bloomberg. Live from bloombergs World Headquarters in new york, i am romaine bostick. Joe i am joe weisenthal. Caroline hyde is off today. Romaine we see equities close to their first decline since may. Joe the question is whatd you miss . Romaine new tariffs take a ffect this weekend. And dorian heads towards florida with potentially to be the powerful storm in 30 years. And meatless mania. The race to win over consumers. We are going to explore that trend. Ketchup,h mustard, and plastic plates will be 15 more expensive justintime for labor days. About 112 billion dollars of chinese imports will effect this sunday and i and many for this weekend. Joining us now with more is senior managing director and head of the China Research team at evercore. Thank you for joining us. Thought perhaps a real here because markets seem to like some of the noises that we got really starting with monday when trump talked about the china [indiscernible]that no one seems to think actually happened, but other signs coming from the chinese side about deescalation. Is this a little more real or is this back over the weekend we will get another more tweet and we will back to square one . Tweets are not reliable indicators of what the president is inking or what the policy will be. We think it is clear that tariffs will go up on sunday by. He u. S. And by china a deal is nowhere near to be talk is noise. That is what it is, noise. Tariffs arefar, the not having any dramatic Economic Impact. I am wondering as we get more towards october and december, and the december 15 deadline, when do we actually start to see a little bit more tangible Economic Impact . Donald you are exactly on the right point. The tariffs that the u. S. Has done in july and september of last year, and earlier this year, and the ones that will go into effect on september 1 are minor in terms of broad Economic Impact. They look like they are important, but they really are not. 1 new tariffs. Be important would are december 15, cell phones, computers, and games. That is the one to watch. Joe the schedule for those is middecember in parts of that people can get their Christmas Shopping done before that, but then it is an election year. If trump wanted to avoid a christmas disruption, is it really any better in an election year. Could you see those being kicked off further and somehow avoided once again . Donald i think it is quite the decemberefore will be onse indefinite hold. I do not think the president wants to impose these 10 days before christmas. President trump and president xi ,re going to meet in san diego and in chile on november 16, 17. That is a cool time to say lets cool this down and if they dont in december, it is highly unlikely they will do it in 2020, the election year. From the chinese perspective and the efforts that xi and the folks there have done to stabilize the economy and currency, do you think how much is sort of a runway that they have to continue these measures if they decide that they want to hold out for longer . Donald i think china has more runway than washington has. They have they have been hurt. Areglobal supply chains going to minimize china in the other asianmize countries, but the damage has not been as great, as washington portrays it, and every time we hear President Trump say, they really want to do a deal with that is moreis china sinking President Trump wants to do a deal with them. Romaine obviously joe obviously, we are talking about the direct impact on the consumers, and companies do not like tariffs feeding into margins. What about the effect into investment . The on and off an endless rescheduling of the tariffs and so much uncertainty. Over time, does that degrade business inclination to invest with a feeling of noconfidence that they will know what the ultimate set of rules will be . Donald the first point is that tariffs are taxes at the border and they are loselose. But the more important point is that companies do not know what to do. They do not know where to higher, where to invest, where to produce, where to source. A month ago, we said we would ande tariffs on september 1 december 15. That is adding another 3. 5 months of uncertainty, and cap ask is essentially being frozen likely around the world because the runway, you cannot see to the end of the runway. Donald straszheim, thank you for joining us. And hsbc arew ups moving towards automation. This is blumberg. Look at what for a stories are trending across the bloomberg universe. Terminal readers are reading about the man who sold his family 1. 6 billion solved his familys 1. 6 billion liquidity problem. Partners, andate today, they have assets approaching 1. 5 billion. Bloomberg. Com has the story on madalyn, the gatekeeper to u. S. Donald trump, who resigned. The president had learned that she had shared details during off the record discussions with reporters. Might save the. Merican law Industry Stores are keeping up with the tech savvy generation by using digital discounts, customization, and embracing secondhand clothes. You can follow all of these stories on your terminal on bloomberg. Com and tikto< on twitterk. So bringing in the robots in an effort to make the process more efficient. The old days when i would have to pick up the phone and get somebody who would match me up with another buyer or seller, those days are gone. You had to pick up the phone and you had to figure out whether those people wanted to buy the bonds, and now is instead of making five calls a day, you only have to make three or two. Romaine this is the algorithm that helps joe pick out his thighs . I think of it as tinder for bonds. Like a matchmaking service. Attempting to bring automation and electronic trading to the bond market, but this is not new, but nothing has really work that well. Sonali in forever, right. Joe people have been trying forever. Sonali a lot has changed where people are making very big pushes. All the folks out trying to buy the stocks Trading Market are now moving over to fixed income, and you cannot do everything. The liquidity profile is different. There are a number of things you can do. Fixed in the bank is very broad. It is a broad subset. Romaine we mentioned two, but we know most banks and in the u. S. And europe as well, they have been making a lot that is less about the financial folks and more about engineers, and folks who can create these black boxes. Sonali exactly right. Take Morgan Stanley because it is one of the biggest efforts they are making to make this electronic. Their stock trading business is what made the number one in the world by focusing on the electronic aspects. Romaine do they know you are referring to this as the tinder . Maybe it is like eharmony. Sonali i just thought of it. Thank you soli, much. Lets get a quick check of the latest business flash headlines. President lashing out at general motors. On twitter, the president called for the automaker to quote, start moving back to america again. Gm has about 46,000 unionized workers. Int is 2000 less than it did 2009, and 9000 less than ford. Ford is firing the latest shot in the battle for dashboard dominance. They plan to increase the size of the touchscreen and the f150 by nearly 50 . The new screen is going to be as displayigger than the and the chrysler ram pickup. Tesla has won an exemption for 10 auto tax and chinese sales. The company today also raise prices by 2 in china as trade tensions weigh on the countrys currency. Joe just how clean is clean energy . The new issue of Bloomberg Businessweek takes a look at the Raw Materials used to build the batteries that will Power Electric vehicles, and their green credentials. The 20th century was the age of the internal combustible engine, the 21st century was belong to the battery. My 2040, the majority of cars will be powered by batteries. Use farl miss far fewer pollutants than gas guzzlers. Lithium is a water guzzler. Cost. Not be worth the the industry would likely opt for pumping saltwater underground to extracted. Boosting Energy Density to let electric vehicles travel faster and farther. In indonesia should keep a steady stream. Cobalta presents an ethic problem, but there are terrible conditions for miners in congo. Some of the workers are as young as four years old. That story is part of a special double issue of Bloomberg Businessweek that explores why the 150yearold periodic table of elements is more important than ever. And now the connection between the elements and business is getting stronger. Coming up, bracing for dorian. Florida prepares for the monster hurricane expected to hit over the holiday weekend. We will discuss the latest. 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. Lets get the first word. Florida is bracing for dorian. Has expandedntis the state of emergency 270 counties. 70 counties. In the gulf of mexico, they have started evacuations from two platforms. The National Hurricane center upgraded dorian to a major category 3 hurricane. It is expected to make landfall in the state as a category 4 storm. Who wasg activist vowing to keep fighting. The protest organizer spoke today shortly after being released on bail. And ishall not surrender, urge International Communities tosend a message president xi, sending troops are using emergency ordinances is not the way out. Wong and fellow activist are due back in court in november. They along with a third protest leader were arrested today. Police warned that more arrests may be coming. March on banned a mass saturday. Hasyork Governor Cuomo signed a bill that takes on predatory lenders. States court system to seize assets from Small Businesses nationwide and prohibiting the use of judgment against individuals and businesses located outside of the state. U. S. Consumer sentiment has fallen to its lowest in six years. July buyingom electronics and other Household Goods fell to a fiveyear low. The Economic Outlook is down to its lowest since january. Global news, 24 hours a day on air and tiktoc on twitter powered by more than 2,700 journalists and analysts in over 120 countries. This is bloomberg. Romaine thanks. As she mentioned, Hurricane Dorian expected to make landfall in florida as a category 4 storm, with winds reaching 140 miles per hour. The National Hurricane center updated dorian to a category 3. Joiningf meteorologist, us now by telephone. We have this upgrade to a category 3. There is concerned this could be a category 4 storm of the time it reaches landfall. What do we know about the path and timing of this hurricane right now . Ian we do know that it is likely to be a category 4 storm, and i actually think that it could get there by this evening just looking at how it is strengthening now. It is continuing to move generally off to the west, and the real trick and this is going to be the upper level ridge clearing it up to the north, how quickly does that weaken . It does look like it makes landfall just north of palm beach and then it takes a turn north of the florida peninsula, but there are computer models that say the ridge wea kens sooner, so this track is not set in stone, but everyone in florida has to be prepared for the worst just in case, but that is the key driver, how quickly does the ridge weaken and allow the turn to the north. Before happen landfall are after a landfall monday evening . Joe from an economic perspective, how reliable are dollar a damage estimates at ths point . How much will those get refined in the days ahead . Brian at this point in time, we cannot put a whole lot of faith in them, if are no other reason, uncertainties on the exact track. The southern half of florida, the east coast West Palm Beach south word is way more populated than areas further to the north. If it were to make landfall a little to the south, the numbers go up significantly if it does take the turn north before it makes landfall, the numbers go down. Talkse there have been about the idea of the storm could linger and that would create heavier rains or at least more potential for flooding. So can you give us a sense of what we can expect their . Expect there . Brian one thing that is overlooked is the rainfall thread. Florida has seen a live rain, so it will not take much to cause flooding issues. It does not look like a scenario where you see a stall for several days a la harvey in houston. I think the storm will turn north and it should be quote, by of floridas hair tuesday evening, early wednesday by the latest. Joe what about the rest of the Hurricane Season . Maybe it is too early to talk about that, but how are forecasters in your own work looking at further risks down the road . Brian we are getting close to isk season, the peak september 10, so there is still plenty of time. It is unlikely that this is the last threat that we are going to see. There is not another feature out there right now that we are tracking, but still plenty of time to go. Last threat wee will see, but the last one for the next couple of weeks. Romaine thank you. Bespoke weather chief meteorologist, brian lovern. Joe so losing a dry run election on the record loans in International Monetary fund. We will discuss the country in crisis, next. This is bluebird. Bloomberg. Lebanon central bank has secured up to 1. 4 billion in fiveyear deposits from private investors overseas, boosting the countrys dollar reserve and easing pressure. Lebanons Central Bank Governors spoke to bloomberg in an exclusive sit down in beirut. And theentral Bank Lebanese government are maintain the link between the dollar and the british yan. Central bank has of the deposits with the nonprivate with private, nonresident in thetions whereby second half of august, our reserves were up by 1,400,000,000, to reach 38,600,000,000. Are private nonresident money and not the government money. Course, reassured the markets but also improves our balance of payment. Funds orse are mutual are they nonresident, lebanese x factor lebanese ex patriates . It is not one deal. The total of the deal has this increase of 1. 4 billion. So it totals and how much . In how much . Theiscernible] will central bank be stepping in to say that and will you be trying to roll it over, do you expect the government to repay some of the money the central bank has put out maturing bonds in the past . Inon the issue of maturing november 2019, we have already prepared the funds to be repaid in cash. The policy of the central bank is to back the solvency of the state because it is of the interest of a lebanon and the interest of the la monetary stability. It is like our commitment to the peg. Joe that was Lebanons Central Bank governor speaking exclusively with bloomberg. Now, argentina with markets president fter the lost to the opposition in the election. The countrys bonds have yet to find a floor. They came to a head on wednesday when the government proposed a debt reprofiling. So joining us now is dan. Thank you for joining us. What is the next thing, we have seen every way that you could measure the argentine market ,ompletely tumble, the peso trading on the dollar, now the country intellective default whats next . Is there decision out there from the imf, what are we looking for . Is chatter about whether they need to impose currency controls or some kind of control to get to today until untilrst round election october 27, so a long way to go. They are bleeding reserves. Yesterday, it fell about 900 billion. Who camesly, macquarie into thousand three arguing against control and then lifting controls once he one, it would be very ironic if you had to impose those before he handed over the government. Romaine we know the imf has been on the ground there. Out 5e supposed to dole billion or so off of the previous package of 56 billion. What is the status of regards to imf funding at this point . Brian they have handed daniel they have handed over about 44 of the 6 billion so far. The delegation this week met administration. That they wereid to disperse another 3. 5 billion next month. That is in jeopardy. One of the things that argentinians president promised to do was restructuring the payments of 2021, 2022. Joe what is the Opposition Leader fernandez doing while waiting in the wings . Few dayst took him a to see how to respond to the debt plan. Clearly, fully supporting it could embolden the former, and totally going out against it could aggravate the situation. Today, fernandez spoken interview and ripped it apart. He said he would not depend on the imf approval to do whatever he wanted if he came into government and that clearly is not going to calm down the markets. Romaine daniel cancel, thank you so much. Lets get a quick check on the latest business flash headlines. India has scooped up more gold for its reserves. It is a part of a wave that is helped support crises that have jumped in the highest levels in the last six years. Raising only 5. 2 and the year that ended in june. The ongoing protests in hong kong are hurting tourism and retail industries. Saysong kong tourism board last month, 5. 2 billion people visited and only 1 more in june. That is that we result for july since 1997 when it dropped more than 16 after the u. K. Handed over control of the city to china. And an account compromised. Twitter ceo jack dorseys twitter account sent out a stream of tweets this afternoon. The company is investigating the account breach. Joe, i know you are incredibly prolific on twitter. How does this happen . Joe i dont know. It is pretty weird, it is and theyg for the ceo, were up for like 20 minutes. I would assume the people at twitter headquarters are also on twitter a lot, so the fact that they kept coming and the first ones came around 3 55 here time, and they just kept coming. Romaine and it looks like based on reporting not by bloomberg, this happen by a Third Party App of some sort. I remember a couple of years ago, zuckerbergs other social media accounts were also hacked, and that seem to be tied to some sort of thirdparty hack. You would think that head of the social Media Companies would have a lock. Joe it shows how hard it is to hygiene good security if the head of the companies cannot do it. Romaine should i change the password for my account bloomberg 123 . Joe yeah. Beyond the trend. We discussed potential plantbased protein, including a ceo fueling innovation in the space. This is bluebird. This is bloomberg. The alternative meat market getting a lot of attention. Race car driver that is the latest to jump on the bandwagon as a vegan, and has invested in joint that will offer a variety of meat free and dairy free products. Mcintyre joins us today. Joining us right now from boston, thank you for joining us today. We talk a lot about this, there is a lot of attention with the ipo of beyond meat, but there are so many countries right now that are appearing to work on some alternative to the way that we normally grow and process animal based foods, and im wondering, what is the actual consumer that we are aiming for here, because this was originally pitched as an idea that is appealing to vegans and vegetarians, but it seems a much Broader Market at play. Absolutely. This movement is greater than just an individual pocket of people. I think there are actually four factors that are really driving this opportunity. Factors,r first, vegan, it is growing and attracting a lot of people. Two, there are people verily interested in knowing how their food is made, and what is its impact on the environment. People have become very aware of the agriculture and Animal Agriculture has a big drain on the environment. Interested inare eating more plantbased foods because they have been told that it is healthier for them and that they should include more plant based products in their diet. Four, with any other trend that occurs in the Food Industry, it has become cool. We would call it value. It,le want to be seen doing they know other famous people are doing it. Foodypothesis at motif works is that those are all great movements but what also has to occur as products have to continue to taste better, and become more affordable. Products, many of the are priced at a very significant premium, and those are things of the Food Industry requires. Joe talk to us specifically about the motif. What is your role in the whole process and what kind of clients weyou work with . Jonathan are in ingredients innovation company. Our objective is to use technology to discover and Pioneer Development of new food experiences specifically to improving the taste, texture, and nutrition of plantbased foods, and to do that by using science and technology to understand how food is structured, how those structures affect the taste and other properties that lead to sensory experience, and be able to do that in no way that improves the experience for the consumer without using animalbased ingredients. Romaine what type of companies are you working with . Jonathan we would be working with all of the majors and minors. Lets face it, everybody wants to get into the space. The growth in interest is incredible. Without naming names, obviously we are talking about most of the major food companies, but we are also interested in working with smaller guys. My experience tells me they will move faster, they will do a launch and learn approach, and those brands and those ideas will often be the starting point by which other bigger companies, in and expand those and develop those even further. We are going to focus on working in both areas. About want to ask you sort of i do not know if it is an ethics related question, but you identified several big trends of working in plantbased proteins. And maybe proteins that do not have as much animal cruelty or environmental impacts. Oflive in a time of a lot suspicion about big tech and algorithms, and to not really knowing what is behind the scenes and the products of certain stuff. Should people be concerned of some of these ideas now moving into the food space or something is served up to us, but we really dont know what it is. If i get ground beef at the store, i know what ground beef is. I may not know everything, but i know it ground beef is. Veganet some sort of ground beef alternative that was made in lab with ingredients that were developed from peas and yeast, should i feel totally secure of what is in it . It is really important that the Companies Working in this space are transparent. And that they are being very clear about the ingredients, the processes, and how they are making their food products. There is no substitute, a consumer absolutely has the right to know what is in their food and to know how their food was prepared, and what are the constituents. Believer that the first conversation between us and the consumer should be about creating trust in that we will be transparent and tell you exactly what we are doing. Romaine jonathan mcintyre, thank you for joining us, ceo of motif food works. Fed chairman paul rom chairman Jerome Powell discusses Monetary Policy in zurich next friday. Joe and a new jobs report for next friday. Romaine that is all for whatd you miss . Blumer technology coming up in the u. S. Joe this is bloomberg. I am emily kane in San Francisco and this is bloomberg technology. Another round of tariffs on china to hit sunday, and how it could impact electronic purchases and the rest of tech. Companyta storage transitioning its new model as m a. We will be joined by