Protesters call on President Trump to support their democracy drive. And Boris Johnson pushes ahead with his brexit campaign. Eu Officials Say talks in brussels have been farcical in useless. Kathleen lets look at how u. S. Stocks ended on friday. Mixed across the board. If you put it together, basically the stoxx ended st ocks ended up. The s p 500 gaining nearly 3 10 of 1 . Dowdow up 59 points and the the nasdaq down. There was the negative news for facebook. It was nevertheless all about , temporaryte jobs jobs. Less than 100,000 strong for government jobs. Hourly earnings, wages, at 3. 2 yearoveryear. At the end of the day, jay powell himself, the fed chair in his speech, said he is concerned about Global Developments and you can see stocks ending on the upside. Futures pointing to a gain in u. S. Stocks, but how are things looking in asia . Selina after u. S. Stocks barely eke dow gains on friday, were seeing the futures market point to a muted and mixed open here. Negative data out of china over the weekend, which we will talk about more and a bit. Little to alter expectations about for the rate cuts, but we saw some positivity on friday given news that the u. S. China trade talks will continue next month. This could be the mpx could reverse six Straight Days of gains. I want to take a look at Economic Data we are expecting today. , expecting they could revised down growth numbers, treading annualized expansion to 1. 3 . Australia home loans may have increased 1. 5 in july from june. Taiwan exports may have increased 9 in august from a year earlier, compared to a contraction before. Also expecting new zealand manufacturing data. I want to break down a little bit the Economic Data we saw from china. Exports fell 1 . That is compared to an expectation from economists that it would grow 2. 2 . A big surprise. Imports expected to shrink by 6. 4 and a fell by. 6 good that left a trade surplus of 38. 84 billion, and points to the fact that there may be more stimulus in china and the stimulus plans may come under pressure. Also sales to the u. S. Felt 60 amid the trade war. Paul thank you very much, lets check in on the first word news. Su we start with the latest on brexit. He stillnson insists wants a brexit deal rather than a hard split, that eu officials are increasingly doubtful. Negotiations have occurred twice a week since johnson entered downing street. One eu official called them farcical and another said they are useless, and another said they are only there to boost johnsons reelection prospects. Iran says it is no longer abiding bite Nuclear Enrichment in the nuclear accord. The Islamic Republic is pushing ahead with advanced centrifuges in a breach of the timeframe in the deal. Iran has been stealing back compliance as President Trump abandoned the agreement last year. Flights and trains canceled in tokyo as a tokyo hit late sunday night. In tokyo as a cyclone hit late sunday night. Flights canceled, and Train Service was halted until 8 00 a. M. Monday morning. This is the 15th typhoon of the season so far. Mining towns across australia are leading a recovery in the property market. This as a record low Interest Rates and easier roles for bank lending support demand. The south australian lead smelting town saw a 71 rise in average home prices in the 12 months through august, while a steel town recorded a jump of 42 . Sydney and melbourne also saw rising demand. Global news 24 hours a day on twitter,n tictoc on powered by more than 2600 journalists and analysts in more than 120 countries. Kong, carriehong lams withdrawal of the extradition bill failed to placate protesters. Anybody looking for things to simmer down, protesters to back off, did not see that over the weekend. This weekend, protesters wanted to maintain the intensity and pace of the first 13 weakens of protests and it was no difference with gatherings held in stations and along streets in the business dichter district we had people gathered district. Pushingeople gathered for hong kong to pass the democracy act. We also have small targets pockets of protesters on sunday clashing with police, which saw several arrests and injuries. Some stations were closed because of the confrontation. This monday morning, you would not be able to tell that was the activity on sunday. Behind me, garbage has been neatly held up and graffiti is been removed from walls. You can see the shutters of this station has been raised and commuters are using it after it was set on fire by protesters. This is the cycle we have come to anticipate with violence rocking erupting alongside demonstrations. Paul what is the response from carrie lams government . The statement on sunday, the government condemns the illegal behavior of these radical protesters while not addressing the police use of force. They used been back rounds in the confrontation with protesters at sites across the city. Crime in behavior, that could drive a further wedge. There also unmet demands of protesters. I want to highlight one part of the statement from the Hong Kong Government in which it expressed regret over the reintroduction of the hong kong human rights and democracy act and allege that foreign legislators should not interfere in any form in the internal affairs of the hong kong sar. Of increasingce attention from global leaders, including german chancellor angela merkel, who was in china over the weekend and raised the issue of hong kong. Sophie kamaruddin hong kong, thank you for joining us. We will have much more on hong kong later in the day. Its rating was cut. Hisident trump abandoned plan to host the taliban at camp david. We will have the latest. Kathleen and the u. S. Payroll showing weakening in the labor market. Some details are suggesting a recession as far from imminent. This is bloomberg. Data is not bad. Goldilocks numbers. The general picture is a slowing economy. Well above what you would expect at this late cycle. Fears about a u. S. Recession are not showing up in this report. Very hard to get a recession in less than a month. You still have wages trending up. We were worried about manufacturing hours worked and the numbers are hanging in fine. The jury is out on the manufacturing sector. Uncertainty on many different fronts. Maybe there are budding signs of weakness in the employment sector fringes. The question is where it goes from here. Kathleen we have had plenty of reaction to the jobs data out last week but one thing that didnt change was expectations on said policymakers. You look at our projections chart, firmly on course for whener record rate cut they next meeting pete the probability remaining at 100 . We want to dig deeper into the with our guest. Its great to have you back. If you were in the thought stream, what would you have been saying . What would we have cut from andy to show what is important about the jobs report . Andy nsistent with a late cycle type of number. It is a number that shows relatively weak absolute gains in numbers of jobs. Employers are slowing down hiring, not necessarily in response to a weaker outlook but less availability of qualified talent. It has become really pronounce the past few years in the u. S. , especially because of an Unemployment Rate well below 4. 0 , which is historically very low. The other number really interesting and also consistent with a late cycle story is a very rapid gain in yeartoyear the biggest are thing propelling Consumer Expectations and Consumer Confidence higher. But thats not the kind of thing you see until late in an economic cycle. Kathleen lets look at another chart from our bloomberg library. Is easy to say there is a shortage of skilled workers, but you can see along the top we have the changing payrolls, 130,000 is a look so bad, but when you take off the census workers, it was low 100. The bottom line, the Services Providing jobs. If we drew a line, that is trending lower. Saying therele are is potentially less demand, manufacturing jobs only up 3000. It seems hard to explain it away in a tight labor market. Andy the manufacturing component is really interesting. Manufacturing can be a more leading indicator than services, services take a while to catch up and are not as laborintensive necessarily. I would be careful about reading too much into the manufacturing data. Most manufacturing indicators we study as economists are less canary in the coal mine and more boy who cried wolf. If you study the pmis, they have predicted 10 of the last 20 recessions, not a great track record. When youre looking at labor numbers to confirm that, it can help you. Paul in terms of things that arent pointing to a recession, there is a chart here on the bloomberg terminal points out that most recessions are preceded by a spike in oil prices and that seems like a distant prospect at the moment. Is cheap oil helping avert a downturn . Andy cheap oil, especially in the u. S. , especially where spending is driven by prices at the pump, could help in stoking Consumer Confidence. What consumers really care about at the moment is paychecks are growing faster than expenses. They are not spending at the Grocery Store and spending it all at the Grocery Store and the pump and that means they can spend on some luxuries. They can stoke Economic Growth into the future. We areou point out that live cycle but you also say it is far too early at the moment to prepare for recession, best the view expressed by many people we heard from earlier. What recession indicators are you looking out for . Andy a few recession or indicators that are more interesting to me, the shape of the yield curve will be an interesting one to study, not necessarily because it will show you exactly when a recession starts but it can tell you when to start to worry about things in several years. The twos and tens curve when inverted for a handful of days. What does that mean in terms of forecast and thinking about the ship and future of the economy . Things we have to start worrying about over the next 24 months, which is a long time horizon to think about investing but it starts to be useful. It stirs to reinforce the idea of a late cycle. How do you position your portfolio for the late cycle of an economic recovery . There are certain investments that are really in there to give you dry powder and protection against when the late cycle becomes a recession. Kathleen i quickly want to from in a money soundbite jay powell in the speech he gave on friday. I think it encapsulates whatever he says is a signal where we are going on rates in the september meeting. The most likely outlook for favorabley remains a one, with moderate growth, strong labor market, and inflation moving close to the 2 goal. That said, there are significant risks and we have and monitoring those, including as you mentioned, slowing global growth, and persistently low inflation. Kathleen you know, fair enough spikese oil sparks chart, what it tells me mostly is that most recessions are just about the risks the economy going down, but shocks. Right now we are in a trade war and it seems to me that is jay powells concern. Is not theecession doorstep, but the fed cant wait, isnt that the idea . Will it the us 50 basis point cut or 25 basis point cut . Andy i think the fed is an interesting position today. What we are seeing from the fed is a central bank that has historically waited for the whites of the eyes of whatever they are worried about, recession, economic slowdown. They wait for things to be visible before they respond. Responding tois worries about what might materialize in the future. Be then be good, it can way they achieve a soft landing, which is so hard as a central banker responding in a moment. But it can be dangerous. Dangerousd about inflation being stubbornly low. It has gone below the 2 target. Today isst risk a see the risk of runaway inflation. Inflationrent any watch dogs in d. C. Or at the fed, how far away will inflation get from the 2 target before somebody intervenes . Before we let you go, i want to return to the theme you are talking about, the importance of positioning for the late cycle. What do you like at the moment . Andy there are a couple of investments that play well in a late cycle stage of economic recovery. Longerterm bonds. This is a position many people have put on over the summer, i still think its a great position and one to add to your portfolio if you havent already. And longterm bonds give you duration, which is normally a risk investors try to avoid, Interest Rate sensitivity, the ups and downs with fluctuations. It is great to have in your portfolio because its the only hedge that moves in the opposite direction of your risky assets. Time when your risky assets are absorbing rescued its still a good trade to have in the u. S. In particular because even though rates have moved to down, u. S. Rates are still higher than the rest of the world. Withe not flirting negative Interest Rates on our curve and it could be a great longterm head. The other investment worthy of consideration, real estate in particular. Real Estate Investment trusts in the u. S. Are in relatively small sector and one that many investors ignore, overlook. Is one that many investors have ignored in particular because the yield is out about 4 and not that attractive relative to other opportunities. Not so much anymore. With a 1 decline in safe haven assets with safe haven yielding 1. 5 , 4 on a basket is relatively attractive. Right, thank you for joining us. Plenty more to come on daybreak australia. This is bloomberg. Im Kathleen Hays in new york. Paul im paul allen in sydney. You are watching daybreak australia p ago secret talks between the Trump Administration and members of the taliban are on hold after an american soldier work among a dozen People Killed after a bomb blast in cabell. Kabul. This was a real bombshell, the talks unknown to many people in the administration and lawmakers in washington. It seems like one of President Trumps grand gestures similar to his meetings with kim jongun. We think it may show some tension in the administration at the statepompeo department and john bolton, the National Security advisor. President trump announced it saturday but this could have come as early as thursday that the cooled off. Says itthat mike pompeo will be up to the taliban to get the talks restarted, and the is onnvoy to afghanistan his way back to washington to he has met with the taliban probably over a dozen times this year. He is coming count for now coming home for now. We dont know what is next. Kathleen what about the reaction from other sites . Sides . Politically, geopolitically. Ros there are a lot of sides. This will harms americas reputation as a reliable partner and present its political interactions as erratic. Quite a dramatic statement. We havent heard from afghanistans president , but we not very happyn with the way talks of been going to the afghani government basically shut out of the peace talks and talks to withdraw u. S. Troops from afghanistan. Even as recently as thursday he declared them as pointless after the latest taliban bombing in kabul. He is not too happy with the vence that at least satisfied with events but at least satisfied that the peace talks could been damaging to his government. Kathleen thank you for the update. Now for a quick check of the latest business flash headlines, boeing has suspended work after a cargo door field a stress test. The Seattle Times says it went outward after a test on the ground and is part of the faa certification process. The planes have been pushed back to 2020 because of problems with its General Electric engine. British airways has counseled hundreds of flights, amid the first pilot strike in decades. A has canceled most of its 850 daily flights on monday and tuesday. The disruption will may sleep mostly affect heathrow and gatwick. Ceo will nissans resign as soon as a successor is found. He told reporters he is ready to take responsibility for scandals involving the former chairman. Blamet, however, except for other allegations that executives repaid more than entitled. Still to come, china ratchets up stimulus with a triple are cut as the trade war bites into exports. We are live in beijing next. We also have a check of the latest news and the markets as well. In australia, we have futures looking weaker by a 10th of 1 . Futures trading out of japan modestly higher. New zealand trading for a few minutes now, slightly weaker. Plenty more to come. 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. Been the interdependent world, we have the two largest economies in the world, you was in china, and you have them not communicating well. We are sitting in a plane where the two copilots are fighting each other. How would you feel when you hear on the loudspeaker that the copilots are not settling . You would buckle your seat belt, sit on your hands, probably cut off your investment, and hope for the best. Thats not a good situation to be in. It is the thing that has been inating the present slowdown a significant way worldwide. Everyone is very nervous about what could happen. Hampered they outlook for investment everywhere. On a global basis, we are clearly entering into a soft patch, likely a recession if the trade war gets out of control. Eventually the u. S. Will pay the price because they have elections next year. It depends on how much soft damage you want to do. Kathleen those are some of our bigname guests speaking about the u. S. China trade war last weekend. As they say, risks of a global recession on the rise with investors murky about the future. For some information about what to watch this week in terms of it could be another momentous week in british politics. U. K. Parliament could be suspended as soon as today, and a bill blocking a no deal brexit could become law. In a deal in addition to the u. S. China trade war, there is brexit. The ecb meeting, the policy meeting on thursday is expected to see a cut of Interest Rate and review of all options including qe come as a has been economic deterioration in the eurozone. Also looking ahead to china cpi after very weak export data over the weekend. Will be watching inflation data to point to how strong the chinese economy is holding up we will also look at up. We will also be looking at hong kong industrial data, after weeks of protests, and the Credit Rating on hong kong was downgraded with its deteriorating International Reputation cited as a reason. Kathleen thank you. The first contraction in chinas trade last month is underscoring calls for policymakers to step up the trading economy even after they lowered bank reserve ratios. Tom mackenzie joins us from beijing, and adam haigh is in sydney. Just how bad was the data, tom . Overall what we got for the month of august, youre on your data, in terms of exports, youre seeing a contraction of 1 . To give you the comparison, in july, you saw exports 3. 3 . The forecast had been growth of about 2. 2 . We got a contraction of 1 . Look at the number one it comes to chinese exports to the u. S. , down 16 year on year for the month of august. They did see some growth to the European Union and other countries, but overall, the picture was dire. There was an expectation among economists that you might get a stepping up in terms of the frontloading ahead of tariffs put in place in september. Whether or not they came to pass is not clear. Export clear is that the picture, the trade picture in china is weak. Imports fell as well by about 5. 6 . That points to weakness in exports because a lot of the components that china puts into the markets here are exported out. But also weaker domestic demand as well. That is the trade picture, pointing to further weakness and more expectations for many economists that more needs to be done on the policy front to support the economy. Paul we want to bring in adam haigh. Some catalysts for the market to think about. What sort of reaction can we expect . Adam a lot of this is already fairly well baked into the market. We had expectations for the rrr cut, and the move by china to stimulate the economy. A lot of this is ari factored into prices. We saw continued weakness in the yuan on friday and we may see more of that this week. From an equitys perspective domestically, we are running into resistance on the 120 Day Moving Average for domestically traded chinese equities. It is a tall order to add to those risk positions if you are seeing the stimulus come through as expected and as people have already priced in. For broader markets outside of china, it is an incremental that might keep people wanting to add to the Risk Appetite and global portfolios. Some saying, along alongside what the fed is doing as well, a lot of expectations for further stimulus is reasonably well reflected in prices the past few weeks. Kathleen china has announced additional easing. Regarding the details of the impact, some of our analysis are suggesting they are easing more but its not that big of a push yet. Tom thats right. In terms of details, what we will get on september 16 is a half percentage point cut of reserve ratios for all of chinas banks. The new get cuts on october 15 and november 15 for commercial lenders. In total, a liquidity injection of about 126 billion uses u. S. Dollars. Those are bigger than the cuts we had in january and may, but even officials here were stressing that this is not massive liquidity injection. It is tax season so part of it will offset taxes. They say essentially liquidity will remain stable. Other economists suggest this isnt a massive takeup in stimulus or liquidity. Theres also a squeeze in terms of property, in terms of mortgages. They appear to be attempting to make sure the property bubble does not increase come while ensuring there is enough liquidity for manufacturing, small and mediumsized enterprises. Others have said we expect additional measures Going Forward, whether thats reduction in open Market Operations or an uptick in bond issuance at the government level. They expect more Going Forward because the data is continuing to point downwards. Paul Morgan Stanley made an interesting point, a lot of the risks we are dealing with now were still around this time last year but we have risk assets and equities near alltime highs. What are the chances that risk assets are getting ahead of themselves . Remember this time last year, just before we had that huge 5 trillion wipeout in equities, that terrible fourthquarter for global stocks. And indeed, the risk asset markets have priced in additional stimulus and given the benefit of the doubt to the slowing global economy, but you still have these things operating. The deterioration in earnings, and a cloudy picture for earnings Going Forward. And also manufacturing continues to weaken across Major Regions in the world. The question is whether we are seeing a bottoming in terms of the pmi and Economic Data. We saw the citigroup economic index for the u. S. Go above zero for the first time in a good while. That shows you that some positivity is being generated relative to expectations. They do point with the idea that you could get a relief rally in risk assets if you start to see a bottoming in some of the data. Not really the time to be making huge changes in risk allocation. Kathleen gentlemen, thank you for wrapping a lot of information together in one conversation. Thank you to Tom Mackenzie and adam haigh. Lets get on to the first word news. Su we start with the latest on the terror front. The u. S. Moving ahead with terrace front. The u. S. Moving had to investigate a french digital tax. Thats despite an apparent agreement at less months g7 summits. The move concerns frances plans to tax digital giants like amazon, facebook, and google. Present macron said at the g7 that he and President Trump had reached a deal. Tanker has reached for in the Eastern Mediterranean and has sold all of its cargo. The Foreign Ministry in tehran made the announcement but offered no further details. It was thought to have been carrying 2 Million Barrels of oil. The Foreign Ministry indicated it may soon release a u. K. Flagged tanker it seized on july 20. The Hong Kong Government has condemned the groups of what it calls radical protesters. This after more clashes with police. On sunday, demonstrators vandalize a subway stations and a set fires in the street. Thousandsens of marched to the u. S. Consulate to appeal for help in the bid for democracy. On saturday, 19 people were injured in clashes and police were criticized for using pepper spray on journalists. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2600 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Paul thank you. We will have much more on hong kong later in the day. Will joinnell first, or johnson continues with his brexit plan. We speak to a former downing street insider, just ahead. This is bloomberg. Paul we are looking at another frantic week in british politics. A series of actions are in play diminishing force johnsons plan to leave the European Union. Our next guest was an adviser to Prime Minister tony blair and worked in downing street in the early 2000s. I hope you never had to deal with anything as chaotic as this at downing street. Parliament legislating against a no deal exit, parliament suspended, cant even get an election happening. What is the way forward . More dithering and delays . Tension that is still to be resolved between the results of the referendum three years ago now in a lightweight 16, which the Prime Minister thinks is definitive. 85248 percent result. 5248 result. Executive tension with parliament. How this plays out with a political personality and figure like Boris Johnson who, shall we say, is looking to make the political whether, is a populist, and has spent the last 10 days or so looking to shut down parliament, looking to force through legislation. Shall we say, it is all action. Paul the expense of the past three years suggests the alternative path was no more fruitful. We had an attempt at getting agreements and consensus on what a deal would look like and that went nowhere as well. It seems there are divisions not only in the tory party, but Jeremy Corbyn was a longtime euro skeptic and divisions in the labour party as well. Nick significant divisions in the labour party. Brexit is more than just a policy problem, its a lot more than a political problem. It gets to the heart of britains role in the world and britains culture. What we have got in Boris Johnson is someone who sees things in binary terms. We will either be dominant or submissive. This is a common trait for a former colonial power. They yearn for the day when britain was not submissive. Submissive to the europeans or anyone else. They want to be dominant. That was then and this is now, we live in a different world and a different global economy. And yet he is appealing to the english exceptionalism. We will see how politically salient that is when we get a general election, which i think will becoming pretty soon. Kathleen had you expect the general election how do you expect the general election to play out . Give us some detail on that, because the system of elections in the u. K. Is a little bit idiosyncratic. Give us a little bit of structure so our audience can understand how this will work. Nick i think we can say the whole british constitution is pretty idiosyncratic. Bewe were in 2010, it would easy for Boris Johnson or any other Prime Minister to hold a general election. There were be no requirements to get a majority in the house of commons. That is not the case now. A order for him to get general election, he must get a two thirds majority in the house of commons. It is interesting to me, as someone who has taught Public Policy and worked in government, as to why that is. Its because David Cameron through his arrangement with the venerable democrats in 2010 to secure power in the coalition government, said yes to the parliament act, needing a super majority. You have to get two thirds of the members of the house of commons to support you for this to happen. A different been past three years, would i even be sitting here if David Cameron had taken the same principle with regard to the referendum and had a super majority for economicr, political, change, this divorce between britain and europe to take the referendum forward . Is not a simple majority, we need Something Like 6643. That was not done. Had it been, we would be in a different world. What happens in the general election matters will it matters. Willie resolve anything . Will it resolve anything . A key question is if Boris Johnson can get there before the deadline of october 31, which allows him to have the narrative that he could stand up to europe with a deal or no deal. 31 asgoes beyond october the labour party and others want it to come i think hes in a very difficult position in terms of how he takes forward the deficiency needs to take before october 31. It is so hard to predict. Kathleen it seems like whatever foundation he has crumbles under him as he tries to move forward. Secretary resigning, accusing him of political vandalism. It seems like every day, Boris Johnson digs his whole a little his hole a little deeper. Nick what is his foundation . He hasnt got any Political Capital derived from a general election. His Political Capital is solely from the members of the conservative party and appeasing the house of commons. Few weeks the last not making many friends and making a lot of enemies. They go across the board. He has essentially sacked former, very senior conservative members of parliament and senior cabinet ministers, even philip hammond, who was in the job just over five weeks ago and is no longer part of the conservative party. Hes been told hes no longer a member. Kenneth clark, the longestserving member of the house of commons. Very Effective Health minister under the thatcher government. These people have all left the conservative party. He doesnt have a foundation there as Prime Minister. What he is banking on is that by being boris and a Big Personality and making the political whether, he can cut through in a way that paul described. Its not technocratic or complex, we can just leave. Well, wishing it to be simple does not make it simple. I would ask all of your viewers to think that even if you have a no deal outcome on october 31, do you think that ends it . Or does britain still have to , economic, ande some form of positive political relationship with the European Union . I think the answer is of course it does. But the difficulty of negotiating that without a whole agreement, and a lot of agreements that need to take place, will be extremely complex and do very little to build any confidence in britain or the british economy. Paul what is your sense of peril . It is hard to map it, there are so many possibilities and outcomes and inflection points of where this could go. In six months, where are we . Nick i think theres a sense in britain that people just one it to end. They are tired of brexit. How amusing it was to hear Boris Johnson say he wanted brexit to be over. There is a sense that we want this to end, but how will it end . Even a no deal outcome raises so many more questions. Will a general election within the incredibly febrile environment be too much . Its difficult to predict. I think were looking at something that will go on and on as long as the whole cornwall debate in the 19th century. It will not go away no matter how much we might will it. Kathleen one more thing, and im sorry to have something so specific. Irish backstop. Have Northern Ireland and the republic of ireland, country again, but that seems to be a problem that is not solvable. Do you see any way to tie the knot and still have a kind of brexit horse johnson wants . Boris johnson wants . Nick u. S. For a direct answer and the answer is no. Boris johnson has into dublin. There is no substance to those negotiations, a lot of rhetoric over the top, theyre saying we cant have the backstop. But the essential tension of having a border between the Worlds LargestSingle Market and the united kingdom, united i be in commerce of the moment, that raises a numerous problems anyway. But when you have a border that has been so highly contested and youve had Political Violence comparatively recently, you have the good friday agreement negotiated by tony blair, who i worked with, which has held firm despite the tensions, i think we have a political and policy challenge that is almost irresolvable. And hence the backstop is buying time. That was agreed to by the eu, the irish government, and by former Prime Minister theresa may. Boris johnson things he can do better. Show us the details. One politician said she sees precious little evidence that there is serious evidence going on in relation to the negotiations. That makes me think i can see how it will be resolved. You so much for joining us and trying to explain the inexplicable. You can watch us live, see our past interviews on our function tv. Securities andto bloomberg functions we talk about and become part of the consecration the conversation by sending us messages during the show. Check it out at tv. This is bloomberg. Kathleen im Kathleen Hays in new york. Tall allen in sydney, youre watching daybreak australia. Lets get a check of the business flash headlines. Wework is lowering its ipo valuation even lower. Jones says it is talking to underwriters about how to attract sufficient interest in a share sale. Some investors are pushing for the ipo to be delayed. They could besays worth 65 billion. Kathleen the city of San Francisco has offered to buy equipment from bankrupt utility pg e. This days before the company is filing a restructuring plan. Pg e dismissed the offer and said it would not be in the best interest of customers and stakeholders. It was forced into bankruptcy in january over liability from a series of ride fires wildfires. Paul one of indias yoga gurus has won approval for a is is takeover bid. Hes a prominent figure in politics. He is part of a Consortium Offering more than 60 million for a food company. Haves in the company slumped this year. Kathleen plenty more in the next hour on daybreak asia. Kathy mitsui gives us her reaction to the latest figures. Paul we will have all of the action in a moment. Including the latest news and a check on the markets. Stay with us. This is bloomberg. We call it the mother standard of care. Its something we take personally, and believe in passionately. Its the idea that if our mothers were diagnosed with cancer, how would we want them to be treated . Thats exactly how we care for you. With answers and actions. To hear your concerns, quiet your fears, lift your spirits. With teams of cancer experts and specialists, delivering advanced Treatment Options and compassionate support every step of the way. All here in one place, with one purpose. To fight your cancer, together. Thats the mother standard of care. This is how we inspire hope. This is how we heal. Cancer Treatment Centers of america. Appointments available now. Paul welcome to daybreak asia. The worldwe are at headquarters anyway. We are counting down to asias major market open. Paul still no slowing for the mainland economy. Violence returns to the streets of hong kong