Not only words but the meaning and it its a disgrace. Should not be allowed to happen. Mark the president also said the country needs to find out who the whistleblower is because he says that person is a spy. Hong kong police fired more than 1400 rounds of tear gas and hundreds of rubber bullets tuesday. Police say protesters used lethal violence against officers during one of the citys fiercest days of clashes. Police say the officer who shot an integral protester with live ammunition did so protect his life after being threatened by weapons including an iron rod. The demonstrators is in stable condition at a local hospital. In greece, strikes against the countrys new conservative government brought very service and transport services to a halt today. A wide ranging strikes also affected public hospitals, banks, and schools. Labor unions help protest rallies, pressing for the restoration of pay scales and labor lights picked the reload and suspended during the three consecutive international bailouts between 2010 and 2018. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Shery live from bloomberg World Headquarters in new york, im shery on. Amanda live in toronto, im amanda lang. Here are the top stories we are following from around the world. Stocks around the world tumbling and bonds on the rise with u. S. Markets on track for their biggest twoday slump in two months. Job numbers are fueling fears of a deepening economic slowdown. And Elizabeth Warren unveiling details of attacks lobbying that would cost some of the biggest u. S. Corporations hundreds of millions of dollars. That conversation coming up. Theirst a quick check on major averages, we are watching aut stocks selling off in somewhat dramatic fashion, every subgroup of the s p 500 is moving lower today, materials and tech are leading the way, the dow and the s p at 5 off their record highs, this is the worst start to a quarter in 11 years. We have a big decline from the bank the faang stocks. Alone are moving higher, one of them is Johnson Johnson as it settles in ohio over opioids, there is some sense that maybe a global settlement is near. Here is part of the reason, after the wto warned of the effects that terrace will have on trade growth, they have given a victory to the u. S. Allowing 7. 5 billion in sanctions because they have determined that the airbus has been subsidized by the e. U. Its a massive number relative to other rulings, and that could slow down the economy even more when we are already looking at other signs of economic slowdown. Shery theres not much that could help sentiment, we do have the private payroll numbers increasing much less than inspect then expect that, only 135,000. This was the smallest gain in three months and we have the august numbers being revised. This coming on top of that disappointing manufacturing number that we got yesterday, with a lot of concern over the state of the economy and that focus is turning to the head the fed. We will be looking forward to that number on friday as well. We want to bring in luke for a check on the markets, when we talk to someone like you, who follows it so closely the class assets, on a day like this there are a lot of currents, economic worries, impeachment noise happening, whats your gut on whats happening to the markets . Luc there are two important things to talk about, one is that you are seeing the prime u. S. Recession expecting it to hit that the u. S. Is really in a downturn, and theres definitely a chief there. And theres also a big underperformance on names that are not as sensitive, those big and these are two elements. And what makes the class asset picture confusing is given the carnage we are seeing in equities, you would think there would be more of a bid to bond and fed futures and it reminds me of the inverse in july, when the three year yield was not moving during a great month for bonds, it was a sign of lingering optimism and the thirtyyear yield is not moving much today, which might be a sign that theres pricing and economic outcomes that are not particularly good. Shery investors are positioning for more volatility ahead. Is a fun market artifact, you can pick your poison, usually there is a reckoning of the uncertainty as there is a trending forecast. But now this has inverted and that means that people are paying extra and were expecting more volatility in the near term. If you read into that, a lot of the big market events, if you use the vix curve in college cover as your exit point, you would miss a lot of damage and the damage in february and in 2015 the chinese the dow. But also theres a lot of false , there was a shortterm bottom in the s p 500 in march. So really read it however you want. Shery and we do have earnings coming up in two weeks, what should we be looking forward to . The team has set up pretty nicely, its another addition of earnings recession prophecy, but probably will not come to fruition because of the historical rates and amounts we expect. One of the things i look forward to in this upcoming cert earnings season is software services. Its the most important industry group, weve been talking about estimates coming in and this has frequently seen upgrades. Expected of and relying upon and this can turn the market whichever way it wants. Regardless of the economic data. Shery thank you for the latest on the markets. We are watching bonds while traders saw yield curves pushed to the steepest in almost two months in a darkening u. S. Economic picture. Lets turn to our guest for more. Its great to have you with us. The economic picture is darkening, as we say, can we expect the manufacturing slumped to be contained in that sector as we saw back in 2015 and 2016 . Or are the payroll numbers Something Different . The isn has, over the past 10 times, buted a few this feels different. Why . We are 10 years into this extension. We are starting to see a major slowdown in the pace of job creation and you are starting to see the metrics in the bond market that we track closely like the inverted curve, the 10 year reald yield real yield is close to zero. And we have the lowest level of yield today. These metrics combined with the fact that the economy is late stage and fragile makes me believe that more attention needs to be paid to whats happening on the manufacturing side. Shery the market amanda the market was jittery with the number, what are you looking for in jobs data when we look at a question of whether this is a manufacture only resection or if we could recession or could we see it spread to the consumer . What are we watching . The employment number is an important metric, its the most important data point, in my opinion, heading into the october meeting. And what we are going to be watching for is if there a headline change in payroll. To see if theres a corroboration of the trend we are seeing in the decline of job creation over the course of this year. And the other thing i would be watching closely is the wage number. The wage number is important because part of the reason we have seen a very robust consumer is because we are at close to full employment and theres been hourlyt amount of wage, earnings have average for a good portion of this year. As long as people are getting paid they are spending and Consumer Spending is a key and gauge for have the economy is doing. Thats what i would be focused on going into friday. If we see a week number does not mean we are going to see an outside rally in treasuries . I think so. I think the risk is asymmetric in some respects. Theres a good headline and people might differ due to the fact that there so much uncertainty. But we do get a good headline will see more you steepening as the market start to price in more rate cuts. And october i would say is fully on monday october was a coin toss. A 50 probability. I think thats what we are heading towards. We will see what comes out on friday. Amanda what could change that . There are some geopolitical elements out there, trade is a big one, the fed has acknowledged that, watching and waiting. We are starting to see the data and the ism was the weak spot, when with the fed have to consider more seriously a real emergency move . Thats a good question. The rate point has moved 25 basis points, and genuine generally the fed thinks of the rate cut as an insurance rate cut because they did see a meaningful slow down, typically they would see 50 basis points cut in a short period of time. Thats not what we are seeing. I think what the fed is doing is walking gingerly. Trying to figure out how weak the u. S. Economy is given the fact that the data points that we got in august and september, with the exception of manufacturing this week, has been relatively good. I think the committee is divided on what they should do as far as rate cuts are concerned. About half the committee does not want to cut rates. The data really needs to guide them towards a rate cut, and a week number on friday might do the trick. Amanda its good to have your thoughts. Thank you. Next, canadians had to the polls in a few weeks, Prime MinisterJustin Trudeaus liberal party is looking to stave off opposition conservatives. Canada count down is next. This is bloomberg. This is bloomberg markets, im shery ahn in new york. Amanda im amanda lange in toronto. We are working our way towards the canadian federal election on october 21, Justin Trudeaus bid is currently intact despite being rocked by a brown face makeup scandal last month. The incumbent liberal party will do their best to hold their parliamentary seat from closing fromervative party the closing and conservative party. Our guest is joining us to discuss. Evan, its interesting to see the polling did not move on the blackface scandal but is moving now. When canadians ask who they would like to see as Prime Minister, for a long time Justin Trudeau had a walloping lead, thats no longer the case, whats going on . No one can really punch through and so its a nice night in the phone booth. Whats common across the parties is that the word deficit barely appear. This is like going to a restaurant where they have everything on the menu, chinese food, japanese food, british and lebanese food and you think they cannot do all of this well, can they . This is what the platforms are like, its a smorgasbord, nobly seems to care about whos going to pay. Nothing has coalesced and nothing has moved the numbers. Thats why everyone is focused on the debate. Cannot change the deadlock between the conservatives and theliberals on top and greens and m. V. P. In third place. We expectingt are when four federal leaders take the stage in montreal with the Prime Minister . This is the first debate with the Prime Minister, its a french language debate, there is one more french and one more english debate. Is like rolling ohio michigan and florida into one thing. You need this. This is on the electoral menu to win. But its canada so our preiser putin, with cheese kurds, and gravy. Justs important to not watch whats between the two front runners, but we also have this other party in quebec qois. D bloc Quebec Quebec they could steal a lot of seats, and so the liberals and conservatives and and the p have to look at this other party and m. V. P. Have to look at this other party to read they could steal the shows on issues like immigration, bill 21 in canada, the Quebec Government has a lot about secularization, that Government Employees could not wear any religious symbols. Its been very controversial, and climate change. But this is the gravy and you have to watch out for this party. Its unique to this debate. Shery thank you so much for that. U. S. ,re in the president ial candidate Elizabeth Warren unveiled details on a tax on lobbying that would cost some of the biggest u. S. Corporations hundreds of millions of dollars. With the latest from washington, wendy benjamins and wendy. These businesses will have to pay hundreds of millions of dollars come at the end the day they are selling products u. S. Consumers, what are the chances that it will be the public having to end up having to pay for these costs . Ultimately the public does pay for these the plan Elizabeth Warren laid out sets up a 35 tax for any lobbying done between 500 thousand dollars in a million dollars. And thats in washington, maybe one week of lunches. And it goes up to 60 and 75 over a billion. The National Association of realtors spent 420 5 million on lobbying last year, 425 million last year. So what do companies do with that if they have to pay hundreds of millions of dollars in taxes they will not stick it to the shareholders or their members, they will stick it to the consumers who will pass on the cost. That is what will happen. She believes she will use the money to fight even more corruption in washington with the revenue. Heart, which gets to the her goal, arguably a laudable one is to remove the influence of business on politics which is and in normas influence in america, more than most countries in the world, is there a better way to go about it . It will feel like attacks a tax. Is there another way to do this without acting like a tax question mark tax . Im not qualified to come up with alternatives to warrens policy position, business does influence a lot of what goes on in washington, and affects the rest of the country. And the anticorruption move is a very good goal. And a tax might reduce the amount of lobbying, or it might change the way they lobby. I think its hard to tell whether it would achieve the goal that she wants to achieve. The other goal i think she wants is to show that she is willing to stick it to the big corporations. And i think this tax will do that. You with the thank latest from d. C. Coming up we will continue to watch the markets as we continue to see the major indices at sinking at the s p 500 is moving at 2 . We talk about tech and energy leaving the client leading the decline. We will discuss our next guest coming up. This is bloomberg. Amanda this is bloomberg markets. Shery for more on how Debt Economic data is weighing on the market, lets bring Michael Mckee. We are now seeing the s p 500, the dow, the nasdaq falling 2 at the moment. All eyes on what the fed will do. Rule, selleet has a first and ask questions later. We have seen many false signals, three since the last recession ended in 2009, the adp numbers are not that bad. If we are not hiring because we cannot find workers, then it is not the same problem as Companies Cutting back. And there are no areas in which we saw big cuts and jobs except for Oilfield Service workers. We knew that was coming because of the price of oil and lack of business investment. People are still adding jobs, not just as many. His economy slowing or is it harder to find workers . It is not definitive proof we will get a recession as wall street has decided is happening. Amanda i want to bring in michael feroli, you heard from Michael Mckee that there is a glass halffull way to look at this. Is there a possibility of a shock showing up on export data with trade tensions . We been concerned about the economy for some time. Thent think the isn is greatest predictor, and its interesting that it is something the market has latched onto. There are other reasons to be concerned. Weve seen slowing and job growth over the past few months. If that trend builds on itself than i think we would have good reason to be concerned. Unfortunately we have to leave it there. You foru to both of watching and we are continuing to watch the markets. We are seeing declines heading back to session lows. President trump is holding a News Conference at the top of the hour. We will have that for you here on bloomberg, carrying those remarks live from toronto. I am Mark Crumpton with first word news. Issuedena will be related to president trumps dealings with ukraine. The Oversight Committee chairman says he has no choice but to issue the subpoena because the white house has shown what he calls a flagrant disregard to request for documents. The subpoena request 13 separate bath separate batches of documents related to a july phone call related to the ukrainian president. Scott morrison denied that he was pressured by president trump. Morrison said that he only asked for contact within the australian government, to help with the inquiry. Mr. Morrison has come under fire from opposition politicians at home, who question rather he granted special favors to president trump. Running ason now planned for a new Brexit Agreement and his first keynote plans johnson warned the European Union to compromise