October 14th. David we want to join mike mckee in new york. We got ism numbers. They were not a surprise and a good way. Michael they were a surprise and a terrible way. Purchasing Management Index falls more than one point. It is the biggest drop in the first contraction since 2016, january of 2016. Even worse, the underlying numbers, new orders fall of 47. 2, unemployment falls to 47. 4, inventories rise to 49. 9. 50 is the abiding line between growth and contraction. When you have inventories rising faster than new orders, there is a strong correlation with recession ahead. We are not in recession yet, but manufacturing seems to be good david when you get numbers like this you wonder why. We see pmi numbers softening. Is it because of theariffs that were just increased over the weekend . Michael that is what manufacturers are saying. It has a quote saying comments from the panel trade remains the most significant issue indicated by the strong contraction. They are saying the trade wars are having an impact on manufacturing. David we do not seem to be making much progress in resolving them. Now lets go to boston. Brian, youve been following Hurricane Dorian what is the latest . Weakenede winds have 110 Miles Per Hour which brings us to a category 2 storm. It struck the bahamas with winds of 185 Miles Per Hour a few days ago. David at the same time it slow moving and that can meet a lot more rain. What we know about the rain it is likely to bring ashore and where . Will start in northern florida and go all the way up the east coast and potentially hit areas of the northeast like eastern massachusetts and new england. As the storm goes north it will widen. It has been relatively compact. It will spread out and that will spread the wind and the rain through the eastern seaboard. David we do not have many refineries along the south eastern seaboard. At the same time we have a lot of of homes and property damage. To have any sense of how much is at risk . Brian i would say billions of dollars at risk, and in addition to the real estate you have a lot of agriculture in the southeast of the u. S. Cotton crops in South Carolina and North Carolina are hyatt rest. David thank you so much. That is Brian Sullivan from washington. Now lets go back to london and Therese Rafael. We have heard from Boris Johnson. Lets listen if we can hear him to what went on earlier. We are negotiating a deal. I am confident though i am confident of getting a deal, we will need by october 31, in all circumstances. There will be no further pointless delay. David he has been pretty steadfast in his point of view. Does he have the power to get that done . Therese he is walking a fine line. To keep to continue hopes alive they can get a deal before october 31. The key date is the october 17 european summit. That is necessary to keep moderates on board, those that do not want to know deal brexit. At the same time he has one eye on the brexit party, nigel farajs party that once a clean brexit. They have been very clear they would support Boris Johnson in an election, even with holding candidates from certain constituencies, but only if johnson commits to a know deal brexit. The way he is trying to satisfy both moderates and hardline exit years, he is trying to brexit union ishe european saying they have not seen anything new and they are not optimistic that progress is being made, but they are not closing doors either. David one piece of news that came out of parliamentary proceedings is he did lose a member of parliament and lost his majority. What does that say about the possibility of an election . People are talking about the possibility that if he loses the vote we may be headed toward a snap election. Therese even with the majority of one and election was inevitable. The question is will it happen before october 31, before brexit or after . Boris johnson now once it as soon as possible. It as soon as possible. This is a lameduck government for all intents and purposes until it can hold an election. He is writing fairly high in the polls. He has an Opposition Party with a leader that is not popular. From his perspective i think people want to get to an election. He has denied that. That is what we will see him try to do. David thank you for the trip reporting from london. That is Therese Rafael from bloomberg opinion. Lets get a check on the markets. Here is Abigail Doolittle to abigial you are right about that. Take a look down the nasdaq following losses in europe. This coming on trade concerns along with the disappointing ism manufacturing number. The dow down 1. 2 . Dow transport underperforming even more. The macro uncertainty we saw broil the market continuing into the month of september. Not surprisingly, we have a rally for haven bonds. At the 10 year yield, we will see a distinct move after the ism manufacturing number came out. Bonds have been rallying overnight, and right around the time the ism manufacturing number came out, it was said bonds had been slightly in the red with yield slightly higher. A big drop off at the lows, down seven basis points. A big rally for bonds as investors seeking haven assets in the context of the uncertainty. The uncertainty you and Michael Mckee were talking about, if we go to the bloomberg and take a look at a great chart showing the manufacturing numbers, pmis around the world, there is the case for a manufacturing recession. Pmire looking at the german in yellow, the eurozone pmi and ofe, china pmi, for a couple years we were suddenly expansion for a public these areas. Today the u. S. Is white, joining these other areas, contracting. Greece is still expanding. Nonetheless it does beg the question of whether an actual question put an actual recession could be down the road. Because this is a risk off signal, we have another area of risk asset selling off. As the commodity complex, off the lows. The bloomberg Commodity Index down. 6 . Oil down 3 . China, the Worlds Largest users of natural resources. Not only do we have week pmi numbers, but the trade war weighing on commodities for the first trading day in september. Entered the democratic primary with the perfect resume. Why isnt Kamala Harris catching fire in the 2020 race . We will talk to joe crowley, next. This is bloomberg. David this is balance of power on bloomberg television. We turn out a ritika gupta for bloomberg first word news. Tika Hurricane Dorian is getting weaker, downgraded to a category 2, but it is still battering the bahamas. Dorian is moving slowly toward the northwest. Forecasters say it is likely to head up the u. S. Ease most and it could move dangerously close to the florida coastline. President trump telling china he better get a trade deal done before next years election. The president tweeted that if he wins, a deal would be much tougher for beijing. He said the u. S. Is doing very well and negotiations with china, although he gave no specifics. In hong kong, carrie lam denied she ever asked chinas permission to quit over the protest. The leak ofounced demand she made last week to business people. She said she tried to explain privately it would be an easy choice for anyone in her position to leave. Global news 24 hours a day, on air and tictoc gupta. Tika this is bloomberg. David the next democratic debate is just over a week away, and this time the stage in houston will be a lot less crowded. They may be 10 people at the debate, but people are realistically starting to think it is down to a four person race. We welcome joe crowley, former congressman from new york. He is now a senior policy advisor and he joins us from washington. It is good to have you. Mr. Crowley great to be with you. David obviously joe biden is in, Elizabeth Warren is in, Bernie Sanders is in, and Kamala Harris is usually included. Wise and she doing better . She seems to have why isnt she doing better . Mr. Crowley what she is suffering from has been the size of the field itself, having so many candidates has confused many voters. I think now, as the field is narrowing, this next debate will have fewer democrats on the state. Kids are back to school, moms and dads are back from vacation and starting to Pay Attention. I think there is still time for Kamala Harris to move forward. She is a very polished politician, a good elected official, and she will make her case. I would not discount her entirely, yet. David how important is it to the Democratic Party she remain a viable contender. If you look at those four, you have Elizabeth Warren, you have Bernie Sanders who thought to be progressive, you have joe biden who is more of a moderate. It is, harris the alternative joe biden if something happens to him . Mr. Crowley it is a great question. I think Kamala Harris has had more of a centerleft record as a progressive, i think she is a progressive. The reality is she hit joe biden hard at those debates and so whether or not she inherits any fallout from biden is yet to be seen. I think it is narrowing and i think she will be right up there with Elizabeth Warren. It is important for her to be there. For women, having lost senator gillibrand and the issue she was bringing forward unknown in the military on women in the military and equal pay and reproductive rights. Senator warren will be bringing that up, senator Vice President biden and Bernie Sanders will be talking about those issue. I think it is good she is doing the race. David polls indicate trade seems to be an increasing concern of voters. There was a poll just last week that said as trade tensions with china dominate the headlines, confidence in the economy is slipping. The people who think the economy is getting worse rose by double digit in june and four in 10 voters blame the president s policies. Does that represent an opportunity for the democrats . Mr. Crowley i think it does. I also want to be careful not to conflate the issue of trade with tariffs. It is a tool the president is using, i think wrongfully, in terms of pushing china. We need trade agreements and that is why we need to see the usmca past. Smart trade agreements. These tariffs are hurting consumers and farmers. There is an opportunity for democrats to step in and say we recognize that some of the trade policies in the past of ben hur for workers, hurtful to farmers. We have a better plan. Hurtfule past have been for workers, hurtful to farmers. We have a better plan. David as far as trade becomes an issue, is a risk for democrats . The president could turn that on a dime with a tweet or two. We talked to david wu from bank of america, and this is what he had to say with what the president could do to fix the trade issue. I am still reasonably optimistic there could be a deal. As time passes, there will be incentive to do a deal with china to minimize the risk of recession when he is seeking reelection next year. David if part of the problem is the president s hostile chance hostile stance with china, is that a vulnerability . Mr. Crowley that is true. He can. I think the American Farmers and manufacturers, workers in manufacturing and autos in other fields, they are tired of being used as pawns. I think theyre great americans and great patriots. They are willing to sacrifice if they know what the end game is. They do not know what the president s game is all about. That is part of the problem. This empathy from democrats as it pertains to policies toward china and trade has been going on for decades. The way the president has exacerbated that in a tumultuous economy to begin with and adding to the top of discussion of recession is troubling many americans. David thank you so much. Always helpful to have you on. That is former congressman from new york joe crowley from washington. Still ahead, the u. S. China trade dispute has hit American Farmers hard. Ceo,lk with the cobank who banks farmers in the midwest. That is next and this is bloomberg. David you are watching balance of power. I am david westin. The United States and china are still figuring out whether theyre meeting this month or not while tariffs on imports went into effect this weekend. One sector hit has been agriculture. We welcome cobank ceo tom halverson. Cobank provides Banking Services to American Farmers. Thank you for being with us. Farmers had good cash flow and growth when Commodity Prices were high. Net farm income, even before the trade war over the last 18 months had already come off substantially and was 50 lower than it was before. The combination of adding to that through tariffs, and we can talk about the details of how that is constraining arm income and agribusiness, but also bad weather circumstances people are familiar with this year, which is also having an effect. Are theow specifically tariffs hitting American Farmers and which farmers . It is not equal across the board. Tom we are a tremendously productive agricultural country and we make a substantial contribution to our export balance which is positive through agricultural exports. We export about 20 of agricultural commodities. Some we export substantially more than other. Years welast 20 to 25 went exporting zero soybeans to china to exporting more thans 40 of all the soybeans to china. That is an important example. The chinese, as a result of tariffs and retaliation for our tariffs have stopped buying u. S. Soybeans. We have built a large Soybean Production complex with the supporting infrastructure and so forth and now we are not selling any soybeans to the chinese, and they are changing their own tariff structure to incentivize and make cheaper and easier for people like brazil and argentina and other producers to replace u. S. Farmers in the chinese market. David we saw the brains are by far the the grains are by far the largest hit. You say income is down. Delinquencies are up. Is that your experience . Tom it is. Our customers are predominantly agricultural coops. We lend money to form associations who lend to farmers and ranchers in 23 states. Clearly the stress among and ishin the Producer Community being manifest. The Balance Sheet strength and the cash flow of farmers is significantly softer than it wouldve been three or four years ago. David lets talk about what that might mean politically. If we look at important swing states like wisconsin, they tend to be agricultural states. You see wisminnesa, iowa. Our farmers forgiving the president , are they staying with him, are they starting to say we are getting nervous . Tom farmers are like everybody else. You ask 10 people and you will get 10 different opinions. Each is nuanced. As congressman crowley said a few moments ago, rural americans in general and farmers in particular are patriotic people. They want to do the right thing for the country and they will make their own judgments as to whether the shortterm pain is worth the longterm gain, and i leave it to them to determine what they think is the right answer. David the federal government has stepped up and given some subsidies. How much of the shortfall is that making up . Tom that makes a meaningful contribution. You have to realize it is a blunt instrument. The market will determine certain outcomes for every producer and every commodity and the mechanisms that are available to you to take a pot of money and distributed distribute it across the economy is a pretty crude instrument. He will not get it to the same people in the same quantity that the market would have delivered. It is somewhat random but they try to be controlled and equitable about it. It is a blunt instrument. It will not make everybody whole, nor will it get to the right people, sometimes he gets to the wrong people in the wrong quantities. The ultimate answer is for Agricultural Producers as well as everybody else to be able to sell their products into an efficient marketplace that involves export and domestic sales at a level of prices that can sustain them in the long run. David when we started on this about 18 months ago, it was perceived as a temporary thing. Some people think it will not be resolved for the election. Does theire come a point when dumptynot put humpty together again . Point, but the later it depends on the commodity. Lets take soybeans again. The answer is they are not buying u. S. Soybeans right now. They are buying brazilian soybeans and argentinian soybeans in a market we spent 25 years building has dissipated. Even if we could region agreement that would involve them making substantial purchases for the next season, that does not correct the long term access to that marketplace, which is what farmers and ranchers in the country need, whether it is soybeans or whatever other product. David thank you so much for being here. That is tom halverson. Coming up, the United States says it has an agreement with japan, but what is in the agreement . We talk with tobias harris. If you have a bloomberg terminal, you can check out our charts online and interact with us directly. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. David this is balance of power. We go now to riddick him. Ritika United Nations says within 68,000 people in the bahamas will need food after the devastation left Hurricane Dorian. The red cross says they may also face trouble finding clean drinking water. Officials say about 45 of the homes on grand bahama island in your the neighboring about go island was severely damaged or destroyed by the hurricane. Worse johnson has lost his majority Boris Johnson lost his majority. Senate lee left the conservatives to join the liberal democrats which opposes brexit and wants to remain in the european union. Johnson has vowed to leave the bloc on october 31 but his local enemies are fighting to stop him from doing so without a divorce deal. Tonight is the first of a series of key votes in parliament. A ringing oil tanker has turned off its track near syria, leading to a speculation it is headed to syria. The ship is carrying more than 2 Million Barrels of a ringing crude worth about 130 million will stop officials believe iran is china hide where it is delivering the oil because of the u. S. Sanctions targeting irans energy industry. Bangladesh is try to shut down Cell Phone Service in camps where hundreds of thousands of Rohingya Refugees are living. Officials say it is a matter of National Security and that some phones are being used illegally. In recent months, more than 40 rohingya have been killed amid concerns some refugees are involved in smuggling illegal drugs. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more 120 countries. This is bloomberg. David co. President trump and president abe of japan announced they agree to printable to a trade ill. A today we learned that additional corn will be purchased for the u. S. Tobias Harris Clinton as senior Vice President , served never house of the japanese comes to us from washington. Great to have you with us. Lets start with the g7. We can listen to what President Trump had to say. Pres. Trump at this moment, no. It is one of the reasons we made the deal. But not at this moment. It is something i could do a later date if i want to, but we just want to be treated fairly. David tobias, that sounds pretty tentative. How solid is this deal we are not releasing yet, as i understand it . Think a lot of questions have to be answered. If you read between the lines from what President Trump said and premised are abe said, desk Prime Minister abe said, what exactly has been agreed so far and what work remains to be done i think most importantly. I think theres a lot of political interest in both countries, both governments to get something done by the uns general assembly. The will is there. The question is, can they bring it over the finish line . Can u. S. Give japan a not that abe can go home and sell it . David there was announcement overnight, this corn, 2. 5 tons, is that in earnest payment . You have seen these kind of negotiations in other contacts with the trump administration. It is certainly not clear how exactly this is going to work. My understanding was it might just be moving japan might move for some purchases that it might do another time to relieve u. S. Farmers. It is obviously not part of the main body of the text. This is a sort of site agreement. I am not too focused on this in terms of this is not necessarily going to get things over the finish line. I think it is expression of goodwill by japan, but im not thinking it is more than that. Does japan want from the United States in return that we might be willing to give them . I think there are a few things Prime Minister abe needs. The big picture that look, japan is giving the u. S. A better deal than it gave the Obama Administration when they were negotiating that was signed back in 2015. Abe is going to be going back home. He is going to go home and say, i made this bilateral deal with the u. S. And you need to ratify it. You are already starting from a point where it is not as good of a deal as japan got back in 2015. And so the u. S. Has to help abe out. That the say, it might not be perfectly reciprocal, but we are willing to present industrial tariffs. Those are the absolute minimum. Abe has to go home and say, look, trump put in writing he will not raise these auto tariffs and that threat has been lifted. He has some sort of vague oral commitment is not going to be enough for abe. He needs political coverage. David they also have it turns out with south korea, what has been festering for some time. Announcements overnight about for the reduction. There is a lot of trade back and forth between the two countries. I understand japan sales japan sells more than the reverse. It is a trade issue but a larger political problem and that is these are two countries that seem to be in a process of longerterm disengagement, and as we saw with south koreas decision to pull out of their in terror intel sharing. This is a longerterm drift i think between two u. S. Allies that really had a hard time coming closer drawing closer over the years. That process lose is likely to continue. It predates this summers spat. There honestly important tourist, but i think changing the atmosphere around that as well. David when you talk about the trade and National Security intersection, i am mindful of a report on bloomberg today, shortterm missile tests in korea may redesigned to have missiles that can penetrate the japanese missile defense. How big of a problem is that . I certainly think japan has not shared the was a administrations approach to these shortterm missile tests. They are in violation of u. N. Resolutions regarding missile testing. But also, you look at whatever the rae t are, it is improving guidance systems, improving targeting, theyre building to launch under different circumstances in different conditions all of which i think are reasons for japan to be concerned. There are been some questions about, well, south korea and the u. S. Mightve had some trouble tracking these as they were launched, and i think that is very concerning to japan. And it raises the risks of the end of the intel sharing agreement between korea and japan. If the intel being gathered by japan is not going to south korea or south korea is not showing intel with japan as these launches are happening, that is a concern for japans National Security. David it raises the question of what the u. S. Role should be with respect to u. S. These two allies. The United States essentially withdrawn from the role when it comes to south korea and japan . I think the u. S. Has been slow to play a role but i also wonder given the domestic political drivers in both countries that have led to this dispute intensifying, im not quite sure what the u. S. Could do in this situation. I think would require a much harder stance to both countries saying, look, there are more important issues. Fundamentally, i think you have in a administration and south korea, conservative in japan, and they view the nature of the relationship in fundamentally different ways. I think they conceive of their interests as far as the other country is concerned quite differently. That is not something the u. S. Is necessarily going to be a list say, look, you have to be able to sit down and talk. , going to be able to say look, yet to sit down and talk. We have bigger issues to talk about. You have to be able talk and get over some of these issues. That clears the way for at least a tentative agreement between President Park and Prime Minister abe on the history issue. That is harder to do when you have administrations that are colored the way they are in south korea and japan. Different u. S. A administration, i think that would be hard to do right now. Harris, thank you so much, senior Vice President at teneo. He ran the u. S. Budget and the state of indiana, now runs at a university. We are joined by governor Mitch Daniels next. This is bloomberg. David you are watching balance of power. Mitch daniels served as the budget cheap and for two terms was the governor of indiana and now now he is the president of Purdue University. Welcome, governor. I want to start where you are and that is at purdue. It strikes a lot of us you have held the line on tuitions, got a budget in there now that i understand will go in the eighth onr of holding the line tuitions. How are you doing that when honest nobody else is . We just made student of portability our priority. It is one thing on campus where widelys happily diverge on all caps of questions. It is one thing everyone agrees with, we want our university to be accessible and affordable for young people of all backgrounds. And so we have a condom i swear we can. We have a condom i is where we can. As you know, a topline cures a lot of ills. It has been a combination of decisions large and small. Just a matter of sustained priority on trying to remain a place where any student who can be our standards can come. David of portability on the flip side of debt. Student debt has been increasing and increasing. It has been a political and economic issue. Do you have any sense of what perdue, for its students have meant, the debt they have taken on . Total debt among our students is down by at least one third. We have one more year of data that will soon come in, probably grow that number. 60 of our most recent graduates left with zero debt, which is another thing we keep an eye on. It is a pretty good measure of progress toward this affordability goal. David you are doing our part to help produce students. Talk about a national problem. We will put up some numbers that indicate a lot of the debt is fairly small debt will stop i think that is because a lot of people go to Community College for a while and then drop out and never actually graduate. Thats right. The numbers can be misleading. Aall debt can still be in possible debt if you dont having income or much. The students in the worst shape, and that is a huge number, are ,hose who went to college tallied up some debt, and did not finish. The data show they dont get credit for partial college experience. Is that especially since the federal government nationalized to this and took it over about a decade ago, an explosion of this that recently they come clean it is going to cost at least 300 billion added to the National Debt over the next decade and much more after that. It is both an economic problem, a huge contributor to our fiscal worse thanbut maybe that, a blight on the individual lives of hundreds of thousands of young people. David and their ability to go buyand get mortgages and houses and raise families and all sorts of thing. Campaigntice theres a started already for presidency for 2020, and some people think we should nationalize it all, maybe guaranteed free college tuition. What do you make of that as an educator, someone who runs purdue . Illadvisedt is an idea. We dont have the money in the first place. But more to the point, it is incredibly unfair to those students and graduates who have lived up to the obligations they assumed. A the university am default rate among our graduates is less than 1 . What an unfair thing to do to those people to now suddenly excuse others who would rather not pay it or did not achieve enough educationally to make that easy to do that i just think its a terrible moral lesson to teach the country at a time when personal responsibility in every domain ought to be reinforced, not undercut. Thed you mentioned deficit, we cant afford it i think were the words he used. Lets talk about the deficit. Theres a number there was a time when you serve in the concerned. T you are ,hat do we do to correct that if you agree it needs to be corrected . Of course i agree and history agrees that societies that pile up unmanageable debts come to grief. It can happen in a variety of ways. But mathematically, it is sure to be a big problem for us economically in terms of our ability to do those things publicly, which we really want to do, defend this country, take care of those people who are in genuine need through a safety net that does not implode. And have some money left over to do all of the other discretionary things we want the federal government to do. Those things are all in jeopardy. David, it is getting away from the numbers for a minute, it is a test of the maturity of our democracy. The skeptics through the centuries about government by consent of the governed have always said, yeah, cute idea, but eventually demagogues and others who promised things that cant be delivered will buy things today with money they dont have, trying to hand the bill to the future generations, and the project will come undone. I would like us to be the country that proves that is not true. But right now it is in some doubt. David it just right and theres a different phenomena at the governors level, the mayors level, but that does leave us to the question, is something broken in our political process . It is not just people dont get elected who really espouse cutting things, they dont even run. It is not on the national agenda. I dont hear anyone saying we have to cut the National Debt. It is true and Neither Party has stepped up to its responsibility. I have recently speculated in a column i wrote that ultimately if we if we are going to solve this problem, avert disaster as a country, it will be more likely a democrat who leads us there than a republican. Just given the nature of the stereotypes that surround both parties today. I really dont care who brings it off, but i hope someone will soon speak to america about the risks we are running, about the real unfairness to the students on this campus from which i am speaking and all of their counterparts in the younger generations who are going to be upded bills they did not run for spending that does not benefit them. But is a real menace to their future prosperity and security. David we have yet another deadline coming up, september, the end of this month. If you are back in washington, would you advocate shutting down the government to try to get arms around this problem . No, that is never the best answer. This is dealing with the barn after the horse is gone. This is paying bills that have already been run up. It has to be honored. I dont think these exercises are ever very fruitful or productive. David Mitch Daniels, Purdue University president , a treat to have you on. Thank you for joining us. Coming up, trade in china is hard enough. Running gambling and china may be even harder. Disappointing numbers out of macau. This is bloomberg. David i am david westin. It is time for the stock of the hour. When resorts is one of the worst performers in the s p 500, dropping more than 4 after data shows a gaming slowdown in macau last month. The stock is heavily exposed to macau. Oxley, very significant. Whatever happens in locale, it is very sensitive to it. In august, the news was pretty bad. You can see this chart showing the growth gaining revenues. 8. 6 in august. The worst decline with seen this year and far greater than analysts were expecting. There were only expecting a 4 drop. The b of the revenue down about 27 . Broader economic uncertainty. Layer the uncertainty in hong kong, the airport shut down for a number of days, a lot of uncertainty with this ongoing protests and that could have weighed on International Gambling as well. The inverteds yield curve . Theres not a lot of signs in of those narratives are going to change in the near term. You can layer on top the fact theyuan continues to weaken. If you go meaningfully path that second level. Downgan actually took their fullyear guidance for growth between negative three 1 . David Discretionary Spending that this is a larger perspective. You talk about chinese trade. The president tweeting this morning fairly aggressively. In addition, he had a weak manufacturing i is some number out of yes data. You are seeing how all of these ongoing uncertainties is maybe showing up in the harder data and sing pmis rolling over. The off the lows but still seeing that same rush and a safe haven bonds will stop 10 year is up. The yields are going down meaning bonds are rallying. You are seeing a lot of safe havens that play weighing on things like the financials. Defenses rising. Beeninancials already have under serious pressure because the bond rally just continues. That is what you just spoke to as you have these ongoing certainties. David which raises the question, which is the u. S. Consumer. Iso mckee said the higher numbers, it is because of china traits. A where is the consumers . With the jobs report on friday, that is interesting. We still watch for signs of inflation but now they will be paying attention to is the consumer going to have a lot of spending power . That is really the only thing upholding the economy right now. We are seen spending consistently if you see those wage numbers start to come down, i think that is what everyone is going to Pay Attention to. It comes back to Discretionary Spending. David thank you so much. Great report. Sign up for the balance of power newsletter to get the latest on Global Politics in your inbox every single day. Remember, bloomberg users can gteract with the charts using tv. This is bloomberg. To the first get world news. Hurricane dorian is getting weaker. The storm has been downgraded to a category 2 but it is still battering the bahamas with windup up to 110 Miles Per Hour. Lifethreatening storm surge. Thean is slowly moving to north northwest. Forecasters say it is likely the head of the u. S. East coast and could move dangerously close to the florida coastline. Hong kong and democracy activist joshua wong in taiwan, urging people to hold on demonstrations as they face growing pressure from china. He has been a central figure in hong kongs ongoing protest. Beijing has been sovereignty over taiwan since the two separated during the civil war in the 1940s. He is urging taiwan to let hong kong protesters sick political asylum. Another hurdle in its bid to set up a government and avoid new elections. Numbers of the fivestar have more than 115,000 voting members. But typically only about half of them