Attacks on some saudi run oil facilities. President trump has been delivered a blow in attempts to keep his financial records private. A federal Appeals Court has upheld a subpoena to provide congress with his financial records. This means President Trump will lose control of his long private tax and business papers unless the court reconsiders the position or the u. S. Supreme court blocks it. The brexit negotiations have taken a step forward, with talks set to begin for the First Time SinceBoris Johnson became british prime minister. The pound and u. K. Banking stocks surged. Mild breakthrough in talks with the irish leader on thursday, paving the way for detailed negotiations to start the start in brussels. Worknow have a week of ahead of them, examining drab legal texts as they tried to work out a deal ahead of the summit in brussels next week. Global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton, this is bloomberg. Live from bloomberg World Headquarters in new york, im Romaine Bostick. Amanda and im amanda lang. Welcome to bloomberg markets. Here are the top stories we are following from around the world. Optimistic on an exit the eus chief negotiator is recommending that brexit talks begin in earnest, sending the sterling surging to its best two days in a decade. And as we heard, more good vibes , the u. S. And china said to have reached a partial agreement that would broker a truce in the trade war. And strong jobs numbers to the north, canada posts and surprisingly strong number of job gains. The labor market is on track for one of its best years on record. Romaine all right, and you mentioned good vibes in this market, optimism across the board here. The s p 500 up 1. 5 we were down 2 at the end of the day on tuesday. As we head into the close, or than 1 on the week. All 11 major s p sectors are higher. 1. 74 , 121r yield, basis points higher than where we were last friday. A lot of money moving around, out of the safe havens and back to the risk assets. Your two losers, the dollar and the yen. Put the pair together, we broke one point 08, we saw that last night, and we are seeing it today. 108, wels getting saw that last night and we are seeing it today. Financials getting a boost, outperforming for the first time in quite some time. The Philadelphia Semiconductor today. F as much as 3 a lot of enthusiasm there. Taking look at the Golden Dragon china index, the Big Chinese Companies weibo, baidu, alibaba, a massive bid at the height of the date. Up about 4 on the day. Amanda great to drill into specifics on a day like this. One of the other places we are watching that is the civic to the news specific to the news of the day is oil. We did, of course, learn there was a strike on an iranian tanker, and that sent oil shooting higher. It leveled off a little bit because it was contained, there was as all spill but it a small spill, but it is contained. We had increased troop presence coming to the area, to protect saudi arabia, as it were. The concern about supply is a story that will continue to move oil, romaine. Romaine lets get back to the story breaking right now, the u. S. And china said to reach a al agreement, laying in the framework for a broader deal. This according to people familiar with the matter. Now,to talk about it right bloombergs Sarah Mcgregor joining us. What do we know about what is actually in the steal . This deal . Trickling ins are about this deal that the u. S. And china are close to agreeing. President trump is expected to , but what our sources are telling us is there they are close to agreeing on a deal. China is getting some concessions on agriculture and the u. S. Is seeping willing to ge seeping willing seems willing to budge on tariffs. Story thats is a bloomberg has been right on top of, that there could be a partial deal on the table. When we say it could lead to a truce, that could be a mother lode, we see a walking back from some of the worst parts of these tensions. Is that a new thing . As we head into these meetings, there is a breakthrough that goes beyond some partial concessions . Sarah absolutely. The u. S. Has some difficult demands for china to agree to, over ip theft and forced technology transfers. If the president s can meet and come up with an agreement that tackles those hard issues, that would be a major win. Business,t now, u. S. People who watch the Global Economy are looking at the tarriffs, if the escalation will stop, not rollback. I think the tar iff issue is a big one. Tweeted the president about how this would be fast and clean, because he did not need congressional approval to get the deal done. Can you remind our viewers what the government procedures are Going Forward . Is this lighthizer putting this name on his thing and we are off to the races . Sarah unlike the usmca, with canada and mexico, trump actually invoked his president ial authority to do these china terrace. He does notiffs need their approval to get a deal past, as long as laws do not change or rates are not affected, for instance. What trump would go for is a deal where he could push it forward. He does not need the help of lawmakers who are waiting to get the usmca passed, there is the impeachment inquiry, and he has a lot of balls in the air with congress right now. Anything that he can agree with china that does not involve any lawmakers, from whether it is democrats or republicans, will be preferable for him. We have talked a lot thet these deals, a lot of work is done by people behind closed doors that do not get in the headlines. We have the highprofile meeting of leadership today. Could that be a weak point . Could the hard work by trade teams be undone when we get the executives in the room . Sarah absolutely, and President Donald Trump has been presented with deals before by his team from china, and dismissed them and said no, this is not the right one for me. If he gets in the oval office heay and does not like what hears or there is something in there that is not quite right thatim, we do not expect he would just agree to anything willynilly at this point. Keen when it is announced later this afternoon, hopefully in a press conference or a statement. What is the substance of this . What are the terms . Is there a chance in the current political climate, where between the u. S. And china right now tensions are fraught, is there a chance this will last or is there a chance that trump could tweet over the weekend and potentially role the whole thing back . We need to see what the substance is. That will be really interesting. Amanda all right. Great to have you with us on bloomberg, Sarah Mcgregor. Thank you so much for that. This is bloomberg. Romaine this is bloomberg markets. Im Romaine Bostick in new york. Amanda and im amanda lang in toronto. Romaine the u. K. Pound having its best two days in a decade after signs of a possible break the deal are emerging for the First Time SinceBoris Johnson became the u. K. Prime minister. Detailed negotiations with the eu set to begin. For more on brexit and on a lot of things affecting the business, we want to bring in john neel, here with us in new york on the set. Welcome, sir. John well, how are you . Romaine lets start with brexit. We know the was requiring insurance companies, brokers and other companies to make sure any european policies they had were moved onto the continent am fashioned by the time we got to continent in some fashion by the time we got to brexit. All of our European Business is actually being written in Continental Europe in 2019. We have assumed that break has happened already. Hasink most brexit happened already. I think most Financial Institutions in europe have addressed it in advance. Romaine not only when you look at your business, but the Financial Sector as a whole, in the u. K. , do you think everyone is prepared for the us ability possibility that if a deal is not worked out, everything will go as planned . John i do. It will be bumpy, 25 of the industry is Financial Services. But any uncertainty creates a bit of problem for the customers. It will be bumpy, but in terms of the mechanics in being able to connect to europe out of the u. K. For Financial Services points of view, we are ready. Amanda i want to drill into some of your numbers, your combinedohn, ratio. 98. 8 at recent readings, pretty high. What is putting it there and how do you get it down . John that is a great question, amanda. We had a very challenging 2017 and 2018 and we put a lot of work into Performance Management in the next 12 and 18 months. We begin to see improvements in those numbers, actually. We can see a little more control around price and selection. It will take time to come through in the p l, but direct expectation, all other things being equal, is that it will be slightly better by yearend and continue to improve through 2020. He . Da what drives that claims would be that . Claims would be a big risk here, but what else in the industry . John we have 25 years of data, probably the best data set in the world. We would legislate americans in the u. S. That we saw in 2017, the typhoon that you are seeing coming to japan at the moment, and we set aside 10 of the premiums to deal with that type of loss. It is not that that is necessarily the problem, it is where you see change in litigation, law, those attrition and rise up. Row up for us, it is about getting the right price for risk. That is how to get performance back on track. Romaine you laid out a financial vision for the company. Part of that was getting costs under control, particularly when it comes to a lot of comprehensive Business Insurance plans. I read a stat, Something Like 40 of that premium is basically the costs that you shoulder. What are you going to get that down to and how . Is to modernize the market base. Our intent is by the end of 2020, we will have enabled a digital connection for all our insurances, whether they are complex or commoditized, to be taking place. We do business in over 200 countries in the world, so that is quite a task to execute. Do that successfully, and the cost base comes down from 40 to 30 , and by managing the claims more effectively, we can get it to 25 . There is more to do after that, but that is a start. Romaine in addition to the financial challenges, there are some cultural challenges lloyds has been dealing with. When you consider the attention that has been put on the behavior of folks involved in your business, what is changing right now . How are you changing to make it a more comfortable environment . John we are touching on all three things that are important to us. If we do not get culture and talent right, we will not succeed in the future. We have announced some changes literally in the past three weeks. We will manage tender equality to get a better balance in our marketplace. We talked about an appropriate business that should be set up, and the culture clash. Romaine we will have to move, treasury secretary Steve Mnuchin speaking in washington. The president is concerned about the ongoing military offensive and potential targeting of civilians, civilian infrastructure, ethnic or religious minorities, and also, the president wants to make very clear, it is imperative that turkey not allow even a single. Sis fighter to escape again, i want to emphasize at this point, we are not activating the sanctions, but as the president has said, he will provide very significant authorities based upon the continuing efforts. So he will be signing this, they will be active, we will be working in consultation with the department of defense and the department of state to monitor this fairly quickly. We are putting Financial Institutions on notice that they should be careful and there could be sanctions. Again, there are no sanctions at this time, but this will be the broadest executive authorities delegated to us. Spoke to the president , was there any concern about the action he took that led to this . Also, what would it take for you to actually activate sanctions . Secretary mnuchin no, i do not think he thinks his actions are what led to this. ,t is a complicated situation it is a situation that we are all concerned about in the humanitarian situation, and i think there are discussions going on between the department of defense and state departments i just got off the phone with we finance minister, and will be communicating specifics, but we are not going to telegraph them. Can you give us an update on the china trade negotiations . Secretary mnuchin i did not think anyone would be asking me about that. [laughter] get tot possible that we the end of the day today with no news still agreed to, or are we definitely secretary mnuchin in advance, i was not talking about china because i did not want you to think i was calling a specific china meeting. We have had a productive two days of discussions. Ambassador lighthizer and myself with the vice premier and others. We will be meeting with the president shortly and updating the president on those. He will then be meeting with the vice premier. I would not be surprised if, like usual, he decides to invite a few of you in, but im not going to make any comments in advance of meeting with the president. The stuff market is very optimistic at what they see about what they see stock market is very optimistic about what they see at the ustr office. Do they have reason to be . Secretary mnuchin the stock market is always right. [laughter] said,ary mnuchin i have we have two more days of discussions. We will be making announcements after really with the president we meet with the president. Far, turkey has not been dissuaded by anything this administration has done or the president has said. What makes you confident that the announcement you just made is going to change turkeys mind . Secretary mnuchin i do not agree with your premise. I am not going to comment on specific confidential discussions that have been going on on different levels. Do not think that is a good premise, but again, these are very powerful sanctions. We hope we do not have to use them, but we can shut down the turkish economy if we need to. How does the threat of these sanctions helped the u. S. Allies who say they have been abandoned . Isretary mnuchin again, it a complicated military situation that is ongoing. Here are discussions i think the president has had very specific discussions as i said, the department of defense, we have expectations. This is a way of making sure that we protect the humanitarian issues and the other people on the ground. Has anything planned changed . Is president everyone still visiting the white house president erdogan still visiting the white house . Secretary mnuchin i am not aware that anything has changed. What kind of consultations are you having with lawmakers like lindsey graham, senator van hollen, who have been very critical of the pullout of u. S. Troops in syria . Secretary mnuchin secretary pompeo has been speaking to them daily, i have been speaking to the secretary multiple times a day. I know people were contemplating sanctions. We are on top of sanctions. The president will use them when necessary. Thank you, everybody. We were just listening there to u. S. Treasury secretary steven mnuchin, speaking at the white house about potential sanctions against turkey by the u. S. He said that President Trump was ready to sign a sanction, an order of sanctions on turkey, but said they were not imposing them just yet. A little bit of activity in the turkish lira, but Steve Mnuchin basically saying that they are onking to sign an order sanctions on turkey. Those sanctions, not activated yet, but they would be very powerful. Isnda romaine, it interesting, obviously. Mnuchin had telegraph that this was not a News Conference and about a potential deal with china, but he said more will be said about that after a meeting today at the white house. Interesting to note, the sanctions signed but not imposed, and one of the questions that will be asked in the days ahead, and we will start asking the right now, what are the conditions that would lead to imposition . Not a single isis fighter release, but it is not clear what other terms of this tension these sanctions will be in place that could trigger this. We will be back with more. This is bloomberg. Amanda this is bloomberg markets. We are watching one market move. The canadian currency is on pace for the strongest day in more than a month as the country posts strong job numbers today. There have been some complaints there are a lot of government jobs and fewer private sector jobs. But overall, a strong number. That is right. The 54,000 gain when it economists are expecting to 7000 created in september is quite surprising. Over the last year, youre looking at a job market that has consistently surprised to the upside when compared to expectations. Romaine explain the secret sauce. Why do we continue to see the strength in canada despite the fact you have so many issues going on around the world right now. A lot of it has to do with immigration. When you go through the data, you will see a lot of it is immigrants, whether immigrants coming within the last year. We do have an immigration rate of 1. 4 yearoveryear, the fastest since the 1990s. That is helping some of the increase. The strength is something we have not seen. If you look at the first nine months, that is a job been a 360 thousand. That is the fastest pace since 2002. Amanda we will leave it there. Our thanks to erik. From toronto and new york, 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 an eligible phone. Call, click, or visit a store today. I am Mark Crumpton with bloombergs first word news. President trump is threatening to slap more sanctions on turkey. Steven mnuchin just wrapped up a News Conference where he said turkey could face powerful sanctions. The move comes as president his decision to pull back some American Forces in Northern Syria which clears the way for turkey to send its forces into the country and attack american allies. There has been a breakthrough in u. S. China trade talks. Bloomberg has learned the nations have reached a partial agreement that will broker a truce in the trade war and lay the groundwork for a broader deal later this year. As part of the agreement, china would agree to some agricultural concessions and the u. S. Would provide some tariff relief. It is tentative and subject to change as President Trump prepares to sit down with chinas top negotiator today. A powerful typhoon could drop as much as 30 inches of rain on tokyo this weekend. Damaging winds are in the forecast as well. The government is warning residents to stockpile necessities