Anna not enough progress. E. U. Ound surges as negotiators warned that the brexit plan is not good enough yet. The Prime Minister says there is a way forward. One. S unfazed by phase a partial trade deal lifts Global Equities but weaker export data highlights a risk of a full agreement if a full agreement is not reached. Bloomberg learns volkswagen is assessing options for its supercar brand including either a sale or stop listing. Such moves are unfounded, they say. There are no such plans. We are less than a half hour from the european open. Matt a lamborghini roadster joining into our offices in new york city. Lets look at the markets now. We have gold. I am looking at gold, trading at 1488. Gold has come down recently. S concern has we get the as we get the handshake deal over trade. Issues for Global Growth. Lets take a look at what we have going on in terms of futures here across europe. You have ftse futures gaining but dax futures and cac futures down. Continental futures off. 4 , ftse futures floating up a little bit. In terms of u. S. Futures, we see green arrows after the gains in fridays trade. We see continued optimism on agreement. Ake the question is how much will that carry on . What have you got . Anna it is a little quieter. We will hear the pomp and ceremony of the queens speech which is the event today. That is going to be part of the focus but brexit remains the key issue. We have got protesters because of security. What we have is a number of voices being cautious over the weekend over what progress can be made. We saw u. K. Assets surging on expectations maybe the pathway is ahead. Now we have heard about the need for caution from the foreign minister over in ireland and how tough issues remain. The e. U. Saying not enough progress was made as had been wanted. Michel barnier saying the proposals the u. K. Government are making are untested and would leave the Single Market vulnerable to fraud. These are the pushback we are getting, explaining the pressure on u. K. Assets. We are looking for any detail of this these complex negotiations with your corrupt customs. These were two sticking points when i was in dublin and they remain sticking points. They are the items being discussed in brussels as we go to the e. U. Leaders meeting. Which takes place thursday and friday. We need a deal monday to wednesday if we will see the leaders sign off on something at the end of the week and it becomes it comes back in. Lets talk about the markets. We are joined by the market life editor in singapore. We will get to the trade story but i want to start with the brexit front because i am in westminster. I know the cost of protection on the pound, protection on the was on the move. There was a lot of things when it comes to u. K. Assets. How much of it do you think is sustainable or are you like everybody else, waiting to see the details . I think it is justified. There is a clear reason for optimism but it implies volatility which will rise and has more to rise. Brexit and hase 5. 5 in july it can go higher again ahead of the previous deadline march 31. Here is far more uncertainty in march we were expecting a delay of the base case with a slim chance you might pass theresa mays deal. Now no deal brexit is on the table. I think we will not see the pound depreciation go in a straight line. Odds, and betting they are in financial markets, diversions should not be too bad. This has risen only slightly. The chance of a no deal brexit has dropped a little. That means the market is becoming more in favor of a deal, just not deciding whether they are in favor of a delay or not. Brexite will stay on until it is finished. What about the trade deal . It seems less likely than a brexit deal and seemed less likely until we got the lumps best the loads fast lovefest. Is that going to lead to something more serious because markets have rallied since then. The deal we are talking about i dont want to get into whether it will be passed or not because there has been criticism citizens of is a false start. The deal they are talking of signing doesnt do anything on the economics side, doesnt remove any on the hundreds of billions of dollars. They are talking of increasing that but the african swine flu which decimated the chinese pork heard and they need to get more soy in. The deal doesnt do much economically. They are assuming the most optimistic take that there will not be a escalation. Not preventit will the severe slowdown. The fact is it was equities will not be able to ride for long on this because if this optimism comes through, you will see haven assets, trade that will restrain equities. Expensive giving earnings are collapsing at the moment and we have got other tariffs in place. It is a positive move, shifting by shortterm relief. Is it fresh records in the s p 500 . Probably not. Matt we are only 55 points away from record high on the s p 500. We have rallies. Asian equity indexes are up 1 and more. The u. S. Equity rallied on friday and we could see gains at later onof trading today. Why not, why not get 65 points on the s p 500 . Because there is nothing that will help equities. Earnings have been decimated. Going into the weekend we saw the u. S. Rally on the hope it would be the start of a greater deal. Over the weekend as we got more information there was disappointment. We have heard it was phase one, but when will it come . Trump made clear his tariffs are still on the table. He is talking about signing this deal next month which doesnt remove any tariffs. People have gone, this doesnt deliver anything. It stopped the escalation and but doesnt provide substantial good news. If there is no reason for equities to collapse, it is a better outcome, marginally good news but there is nothing of substance. Earnings will matter and they are looking increasingly worse by the day. Anna thank you. You are a cynical bunch on the markets live team. It is the smallest quantum of conciliation possible. Of peace is a mirage, bringing us the healthy dose of cynicism about that deal. We will continue to explore. Thank you very much. Managing editor. Is one handshake, the partial trade deal, but as greedy greeted by skepticism not just from the markets live team but economists. Bloomberg radio is live on [indiscernible] Digital Radio in the london area. More on trade and brexit. This is bloomberg. Welcome back to bloomberg markets. This is the European Market open. We are 17 minutes away from the start of tax trading. Looking at futures we see the ftse is showing gains, futures are up although the pound is down. You can see that inverse correlation. We see other indexes down in terms of trade. Lets get to first word news. We go to the end. Leeanne. Tomore sanctions in response turkeys incursion in syria. The move has pushed kurdish fighters and American Allies in the region into the arms of president assad. People are returning to the northeast for the first time. A Police Officer is in hospital after being slashed in the neck. Crowds were vandalizing shops and subway stations. Some protest groups discussing how to ease back. They wore they think it is alienating ordinary people. Wework is considering a bailout that will hand control to softbank. The japanese conglomerate is convinced it can turn around the cashstrapped company but they are looking at another option. Amorgan is leading this about 5 billion debt deal. In poland the ruling national for another fouryear in power after winning sundays election. N the to increase they are known for their duties the rejection of multiculturalism. These values have put it at constant odds with brussels. Japan is recovering after the typhoon left a trail of destruction across the country which left hundreds of thousands of homes losing power. Troops have been sent to affected areas to start flooding and rescue opportunities. For a four hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thank you very much. Asian stocks are higher this morning after the u. S. And china agreed on the outline of a partial trade deal. China is set to more than double purchases of american Agricultural Products and agreed to certain ip measures. Washington set to delay a tariff increase. Trump said phase one will be starting soon, stoning touting the possibility of a broader agreement and that it had not been signed yet. Developments come at the latest data showed a bigger than expected slump in the imports and exports, existing u. S. Tariffs contributing to a decline in imports while exports decreased 3. 2 . Lets get the latest from selena. Good morning. Break down the numbers. The latest numbers from china in terms of the trade story. Selina we are seeing the impact of the Global Growth slowdown and the trade war. Whopping and a that is worse than what economists were expecting. This is pressure weakening the chinese economy. Expectations are that thirdquarter growth came in at 6. 1 , the weakest pace in three decades. You did get one bright spot chinas trade balance which was strongerthanexpected showing money came into china then came out. That was driving the upswing in the yuan earlier today. Boost thehis trade chinag Growth Outlook for or the Global Economy . It increases risks of but most dont think of it significantly with the china growth actor or Global Growth because the risks of tariffs are in place area do have the existing tariffs, they have not been changed. There is the look at that remaining imports. There is uncertainty weighing on investments. Covers the long low hanging fruit. China is boosting agricultural purposes purchases. With currency agreements, china vague commitments so it is not enough for people to sink their teeth into with the Global Growth outlook. Thank you very much. Selina wang joining us. It will be a busy week with the trade narrative and the brexit story. These are things we are watching out for. President Vladimir Putin is in saudi arabia building ties with the kingdom, signing agreements king and prince. We will have an interview with the st. Louis fed president as we watch where the fed will swing to. A lot of messaging is keeping minds open. On wednesday we will keep an eye on developments in hong kong. Untill watch every day then but also wednesday the chief executive is going to give her annual policy address. Thursday is the start of a two day summit of brussels. E. U. Leaders are meeting to discuss a possible brexit deal with great britain. Two of thet is day annual meeting. We are talking to keep figures from across the Global Economy including the commissioner of valdez. We are minutes away from the trading. Ash we will look at your stocks to watch at the open including autos as the record china car slump continues. We have this nice little story on volkswagen, looking to deal somehow with lamborghini. This is bloomberg. Welcome back to the european open. This monday morning we are across the trade story and brexit narrative. Lets get the latest from around our newsroom. There were signs of progress in europe in trade talks. Looking at the latest on our Equities Team covering autos. This person focused on lets go to her first. Entire swiss the pharma industry. This on a report the u. S. May tariff swiss Farm Companies in a deficit with swiss medicine. We could see this impact the entire European Health care and pharma sector. Luxury. Jp, what have you got on cars . I am distracted by the lamborghini scoop on friday. What else is there to look at . Is a headline we are watching but there is bad news out of china again. Car sales slumped by 6. 6 . It is a 15th months out of the last 16 where car sales are going to and that is not going well for european carmakers especially in germany. Watch what they are doing. Anna i am fascinated with softbank. Take us through the latest. It is a u. K. Based business, this Security Company have been the subject of a takeover bid from u. S. Probe to equity firm bravo. It values that met three point 3. 8 billion. It is about a 37 premium from fridays closing costs. It has had profit warnings recently and brought its business around in recent months. That is where this takeover bid house come from. Another one with the weakening pound attracting Foreign Investments in u. K. Companies again. Matt thank you for that. Jp and annemarie, thank you for joining us. You can get this story by typing first go on your bloomberg and the mobile app as well. Coming up it is the market open. Futures for the most part pointing down across europe. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of Wireless Network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. All right. A minute away from the start of cash Equities Trading across europe and in the u. K. Lets take a look how the marks are shaping up. Anne marie is standing by. Anne marie we have to kick it off with the chinese equity. Still there seems be some market. The british pound seems to be down. 7 falling from a high. See sop to ou can kept schism. Under6 under 60. We are seeing the lira weaker as well. 5,200 in futures. With see u. S. Futures higher. In france nearly. 4 of a . Sapping some of that optimism. Some skepticism after that trade deal. Weve gone to 8 00 in the city of london. We have futures opening up relatively flat this morning. Its going to be a good day. We do have the e. U. Saying im not good enough just yet. It happen to be that optimisms backs them up on friday. Eurostoxx. 50, 20 the neitherlands as well. So we are seeing this European Market seems to be unphased by the phase one trade deal. We should know the deal is yet to be signed. Its a handshake deal. You can see that the british pound theyre all lower. And friday, financial technology. All of them represent that more than 50 . As well as minors and some of this technology. Im going to be looking at the farmers sector after we have is report of swift pharmaceutical. It is likely very wrist off. What do you say in individual muferse . Yeah, absolutely the same thing in terms of the individual names. 420 stocks are down this morning. And only 157 are gaining. When you look at the gainers, you do see a lot of defensive names. So you see a lot of the Consumer Staples and the things that people are not going to stop buying because of a slowdown in the economy. Yaggio. The maker of cigarettes, of course, and then you see other consumer stay bles like you or drug mackers, and byo tech. Take a look at the at the losers, the big losers here, and one of the names that uhai highlighted earlier, we have roche trading down 1. 4 . The biggest loser in terms of points on the stocks 600 so taking the most points away. And novartis down 1 right now. You also have s. A. P. Which is a little bit of because it rallied so hard on friday maybe giving a little bit of that back today and then some of the banks, barclays banko santander. And some of your local companies, its only down half of a per cent. Now, European Markets opening lower. This follows signs of progress in the u. S. China trade negotiations. But sent meant was capped as investors voiced skepticism on the according. Joining me now is max ketner. We are kept cal by nature. Some of it cynical as well. Dont buy into this handshake agreement as much as it looked like markets did in the u. S. On friday. Whos right. Question how a far can stocks go on just a handshake . That implies an answer, not really that far. I dont think its going to outclick it on a Growth Perspective and also on a investment pro speculative. People get utterly excited about these kind of things. If we sit back and say what about the necknology. What about the december tariffed. We have another one where basically were not quite sure how to enforce all the agreements that weve seen or the preagreements that weve seen so far. So there remains to be a lot of uncertainties around that if i say theres a phase one. There may be a phase three. Whats the probability of that happening . It seems to me that people got very, very excited about the hand stake and about two 55. Other the next couple of months im not sure i would waste my Investment Strategy on that. Marks good morning to you. On the trade story and on the brexit narrative. But in the immediate of after you see a loft them cover. Than maybe the political response is or the the intellectual response. Is they stay in this sort of long term public reaction if we do see Real Progress being made not just a stalling but Real Progress on the trade negative. Thats exactly the point at the moment. From a longer term perspective, for me theres no real basis for the iron man for both of their tails. Im not im going out dry. Into from a yes, perspective. Im not in favor of going its going to be absolutely fantastic. Well see this double digits. For next year, simply the expectations are too high. Its pretty likely over the next six monthwel likely over the net six months well meet again and be surrounded by zero and Global Equities. Vell active to were pretty much at when we started. Thats lengthy that well see that over the next six to 12 months as well. Lists. Eme upside capital were we have to shorter investments sort of six. And what stands to me even for example until the u. S. Particularly on the long end. You see that those are pricey, a very severe risk of a reception. Over the next couple of months, lets say the next three, four months. They will turn physical. That to me suggests in the long arm that looks like very, very nice trade forme. What do you think about, you know, tax. The big winners on the doc 600. We see, you know, sir credits. Liquid and drug. Is that a safe bet of what in the the scommi industry . Yes. How long has it been going on . A year or two. Theres a longer period. Lets say end of 2020. Still makes a lot more sense. The likes of Consumer Staples for example, even though we have though pretty heavy evaluation, of defensive effective, of quality strikes. Investors will need to accept that we have these occasional bouts in september which this short of shifts. We will have to examine but i dont see the case that theres a massive revamp of these strategys that you have go and value now, and value strategies. Its very much spill an environment if you have to see. What has made them much, much more famous. Coming up next on the European Market open. Well bring you the stocks on the move during months opening including softball. Surging after accepting a 3. 8 billion. Reporter welcome back to the european open. We are 11 minutes into your trading day. The European Equity markets feeling the pain of the lack of detail perhaps behind the handshake when it comes to trade markets. Uropean equity Boris Johnson has run into trouble after a wkend of intense negotiations. The e. U. Warned talks were still a long way from the breakthrough. And northern island, d. U. P. Has raised concerns. Max ketner at hsbc is still with us. Two weeks to go until the brexit deadline. When you look at the relative probablies of all of the areas you outcomes, what do you think is more likely to happen . That that shortterm period, whats your best case . Whats the base case. From an investment perspective its very difficult. I me, if i am benchmarked, need to hug them with regard to he u. K. On guilt or u. K. Small caps on u. K. Small caps. In august and september, the one thing that we could rely on is the sort of correlation between sterling and the relative performance between the sort of exports and equity sectors. Even that broke down in august and 1e79. So that tells me that theres really no, you know, other than being a 5050 probably, theres not many cases. The problem for me is i need to from an investment perspective reading g other than it, doesnt make much sense to me. Where do you think where sterling is going, max . We realize the negative corporation has a lot with a lot of u. K. Stocks. But a viewer is pointing out that sterling was up 1. 8 . Sterling is down. 7 of a percent. So some stocks are really driven by the pound price. Where do you see it going . I think it started working again on friday with this drastic move just do be clear. So yeah, hes going to 128 relative to the honor. Its extreme scenarios. I wouldnt from an investment perspective. Its difficult to have a longer firm. You can take from here on. Not really anything you can take. But you take a longer perm perspective. Even if there is brexit. What the problem. Is they realize, well, actually if a Growth Perspective if were talking about the fundamentals of the u. K. Economy. So were seeing that. And exposed to a slowing you yo zone economy. A positivenot really either regardless of what happens to brexit. And what do you make of guilt there for the moment . Its difficult sometimes cember spy the december spice. Its deaf cal. You known and what do you make of guilt . Look, i think its been pretty much a global written rally as well if you look at the market, government bonds since the start of the year. If you look on the short end. Well see two years and on the long end. The correlation between the developing markets. Thats been the keas for guilt that it was a globally driven rally. From a more structure perspective. It tells you when i compare the guilty to buttons. We would be trading where they are relative to government. Then thats not to say over the next months thats the massive buy from a tactical perspective. And develop market government deaths. From a structure sperspers active, it doesnt make stones me why they bowl so much myer relative to the german government. Max, thank you very much. Max ketner. He stays here on the program. Emily has been choosing some good ones today. Shes got the latest for us. Emory . Choose of movers to the true. Information is live. They have a ton of bravo agrees o buy a 7 40rks shares as well. Demands up more than 3 this morning. Says if i follow a cyber attack, the company with normal ice the infrastructure. She can get across a lot of these domestic ux we are seeing them unravel a bit today. Matt, anna . Up next, we have lambeau in limbo. Were considering operations for the luxury brand. Well bring you the details next. This is bloomberg. S is bloomber. Reporter welcome back. This is bloomberg markets. If european open. We are 20 minutes into the the g day and looking at dow. Sometimes a little more. I will point out that we had a pretty awesome week. I mean, if youre long socks. But dax was up 4. 2 last week. One of the best weekly games that weve seen since like 201. So it was a very strong week for continental indexes. Volkswagen will reach a market of 200 billion. But a sail or i. P. O. Is currently off the table. Join joining us now. Elizabeth what sort of obstacles stay in the way. We know he wants to do something with these assets to unlock the value, right . Whats stopping him . Yeah, very good question. And if history is in the guy and any moves on lamb ber guinea and will be a long, drawn out process. What weve seen from that review so far has been sometimes piece males. Sometimes a little bit more. But with that folks wagon as a economy. And then the portion appears to have a huge say in decisions. And lets remember, i was something close to your heart. They aboarded the sail of the ducati motorcycle. If we think back to the i. P. O. , that was put on ice at the very last minute after a twoyear process or even a bit longer to put his scaring tonight be back and so anything to do with something another brand splint r splitting off. Hat will take a long time. In de. Been oes he and youve saying they have to ambitious target how theyre going to deliver that . Yeah, i think this is part of a push to to really reshape the economy and not have it not spread itself too thinly. Interestingly, herbert dean was giving an interview over the weekend to one of the german newspapers. He used exactly those words. He doesnt want to spread them oo thinly at a time of new competitors, aut tom moss cause. They will likely getless love in terms of funding and attention. I would like you to be the mathematics professor. What are the other kind of deals that we could see here, snells anything in the pipeline . If youre looking for broadly, and theres a massive changes sweeping through the industry. And part of that its definitely the mood weve seen around fiat and and nissan as the third partner. But apart from the headline deals. How theyre doing that right now. There have been circulation among analysts quarters. Joining their combat active agent to help save money. And also secondly combining some soft the smaller cars where returns are lower. Or some comments are current rivals and they urge each other to stop working together. Thank you very much. Thats all our plans. Msbc. Ner at i think about the state and the German Economy in particular. What about scotty right the way that weve seen spreads coming down for peripheral dead. And asking how long that can last. Ive been hearing about greece and italy. Is that something that you think is sustainable . Its much more a needs to be driven story. Much more policydriven trade at the moment. Rather than a growth griffin trade. And preversely stay in this limbo of where we are right now. If we stay in the situation what we dont only see the german. Onomy slowing down into 2020 as whole. That probably opens the door for even more speculation about even more e. C. B. Action. I suppose that traded farther. And yet, this can go a lot further even though probably because o that slowdown. That sounds. Of will spend more sort speculation. Erall theres still a lot of more. Weve got more to go with max iaction strategist. I want to give you some headlines, bad news if youre a cattle on separatist. The leader has been given a 13year prison term according to lle espanol. Bad news if youre any other kind of separatists in spain. They have so many. Certainly for the cattle on this is a problem a very interesting news. E leader giving us a 13year term. This is bloomberg. This is bloomberg. Matt 30 minutes into the trading day, lets see your top headlines up the bloomberg terminal. Not enough progress. Pound volatility surges as eu negotiators warned that Boris Johnsons brexit plan is not good enough yet. But the Prime Minister says there is a way forward. Stocks unfazed by phase one. A partial u. S. China trade deal lifts asian equities, but europe starts the day deep in the red as skepticism grows about the extent of the agreement. And lambeau in limbo. Volkswagen is assessing options for its supercar brand, including either a sale or a stock listing. But the company says such moves are unfounded. For speculation about such moves. Good morning, buckham to bloomberg markets. I met im matt miller in earl and. Im matt miller in berlin. I am in rainy westminster. I dont think it is the rain that has cap the protesters away, probably the security, because it will be a day of pageantry and the usual ceremony that we get with the queens speech. We get the queen delivering the legislative agenda for the government of the day. It usually happens every year or so. But to d but today does not feel like every other queens speech, because the government has been calling for a general election. We know the backstory as to why that has not been allowed to happen. We find ourselves with two weeks to go until the brexit deadline and still in the midst of discussions in brussels about whether a deal can be achieved. The latest voices seem to be raising a degree of caution, skepticism about whether a deal can be reached. Friday was characterized by optimism about the possibility of a deal. Today looks different. We spoke with the foreign minister. He was cautious, saying tough issues still remain. The brexit negotiator has said some of the u. K. s propositions remain untested and some of it would lead to single margaret would lead to Single Market vulnerability. Complexity there, and also to the veto, which the Northern Ireland parties will or will not have proceeding from here. No answers just yet as where the story goes next. It will be a busy week on the brexit front. Lets get a first word news update. Reporter thanks, anna. Boris Johnsons Brexit plans are not good enough. That is according to eu negotiators. They told the cabinet that a deal still can be reached by the end of the month. This comes as both see both sides hope to finalize a deal. Meanwhile, the u. K. Government will layout its plan in the queens speech later this morning. President trump says he is ready to go with more sanctions on turkey. That is in response to its incursion into syria. That comes after the u. S. Withdrew troops on the north of the country. The move has pushed Kurdish Forces into the arms of assad. The son of joe biden has broken his silence. That is after unsubstantiated allegations of corruption from President Trump. Hunter biden is stepping down from the board of a chinese Equity Company and is promising to forgo all foreign work if his father becomes president. Hunter reiterated he never discussed his Business Activities with his father. Apan is recovering after typhoon left a trail of instruction across the country. It killed at least 40 people, with hundreds of thousands of homes losing power. Over 100,000 troops are being sent into affected areas to fight flooding and rescue survivors. It is the most powerful storm to hit japan in decades. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt . Matt thanks very much. Leanne garin with your first word news. Asian stocks are higher this morning after the u. S. And china agreed on the outline of a trade deal. More than double purchases of american Agricultural Products and agreed to certain ip measures. Meanwhile, washington has pledged to delay a tariff increase that was due this week. In a tweet, President Trump said, phase one of the deal will soon, touting the possibility of a broader agreement as well. The developments come as a latest data out of china shows a bigger than expected slump in the companies imports and exports. Tariffs contributed to an 8. 5 decline i and imports, while exports declined 3. 2 . Running us is the bloomberg editor in singapore, and birkhead of Greater China bloombergs head of Greater China economics. How firm is this deal . Do we still have to wait for something to get signed . Remember at the beginning of the Trump Presidency how everyone wanted to psychoanalyze Donald Trumps handshakes . They are supposed to be really firm and gripping well . That handshake grabs the whole world economy. This is a handshake deal between the u. S. And china at a very senior level. There is a lot to put down on paper, and both sides sign them. There are phases to an iiib on that with all the really hard stuff to go. Let me remind you that this is not a deal to ease in a substantial way. This is a deal to avoid making things worse. This is a deal where the americans take off a terrible escalation and the chinese resume buying products they were buying before the trade war started. About new talking ground, we are talking about putting the most basic things into a handshake and giving a truce either. Giving a truce breather. The optimistare and you are looking for the positive and you say, maybe things do not get worse from here if we believe that handshake and there are words behind it and paperwork behind it. We are not going to see this tariff escalation. That has been at least delayed. What are we looking for next, apart from the detail and the actual paperwork behind the handshake . Derek a heavyweight boxer things not getting hit in the face anymore is an improvement. I would think of it in that sort of way. In actual terms, it is probably not that much. In relative terms, you are not getting hit in the face anymore. That is one of the things you have to look for in this. What are we looking for next on deliverables . I am looking for a deal. I am looking for an actual deal on paper with things that are spelled out in a way that i can control and see what my provisions are, and we can check these again against imports. I think you are looking for chinese import figures. I think you are looking to see what they buy in terms of soybeans and other products. I am looking at where the u. S. Is, where Donald Trumps rhetoric is. This is one of the times i might dial up and antitrump tweet on bloomberg, reset the alert, have it read out to me, and really look for the word china here, because i want to check and see if the rhetoric is going. I want to see if the handshake is holding until we get to that pen to paper point. Us about the economics behind what would drive china to make such a deal. Derek mentioned the import numbers shrinking we saw the export numbers fall. That is the point of what donald trump wants to do, right . He does not want the u. S. To keep buying so much from china and not sell enough to china. What are we seeing from the china side . Derek is, as usual, right. This is about china not getting hit in the face quite so much. The thing to remember about the trade war is, especially for china, it has got less to do with the numbers and more with the confidence in fact. That it the confidence effect. That is hard to measure. If we look at the trade data that came in today, what we can see is imports are continuing to fall faster than exports. While sending stuff to the rest nothe world is bad, it is as bad as the domestic economy and the decreasing demand that is filtering through. It could be the case that china is dragging on the rest of the economy globally rather than the other way around. Thanks very much to both of you. Thanks to derek wall bank and jeff, for the latest on what is going on with china. There is a lot of talk with the china narrative, some of it having an impact on the markets. But European Equity markets are taking a dip. We have yet to see the paperwork behind the truce. We will bring you the stocks on the move this morning, including the french pen maker slumping after cutting its for your guidance. This is bloomberg. Welcome back to the European Market open. 45 minutes into your trading day, this is the picture across the European Equity markets. 43 minutes and. We have the ftse 100 down. Even the ftse is falling despite seeing weakness coming through in the pound. Some cautious voices over brexit. A discussion weighing in on stocks. We need to talk about what is going on at wework. The country is considering the company is considering a bailout. The start may run out of cash as soon as next month. There is also a debt package led by j. P. Morgan. Joining us is our opinion columnist, who has been covering this story. Is the decisionmaking process he is going through here when deciding whether to step in and save this unicorn . Is already in for a penny and in for a pound. They have already invested somewhere close to around 10 billion u. S. That is a lot of money. But the vision fund has 100 billion dollars, so it is only around 10 of the funds. The question is, does he go deeper into it . Does he invest more money in equity or debt and bring the vision from investors into that. Bail it out and keep it going long enough to turn the company around. Or does he cut and run . But there is a third option being considered, not only to buy more of a stake, but he the controlling shareholder. They could be the ones running the company, which is not the normal thing they would do. That is what the vision fund is set to do. That is what a private equity fund would do. They take over a company, renovates its, does a better job than current management, and assaulted off for a profit in the future. That is a different kind of vision fund to get into. Matt the markets clearly like it. Weworkto show a chart of bonds that are here in blue, compared to uber bonds and tesla bonds. They were yielding almost 13 , bid, thes investors yield comes down to just over 10 . Still a Pretty Healthy yield. N if the smartest managers even if the smartest managers take over this company, is it possible to achieve the kind of vision that you think softbank was once buying into for wework . I am not going to say it is impossible, but no matter who runs the company, it is a major renovation that needs to be done. Also, the Business Model itself, it is not a prison a proven Business Model. Various things they are on the hook for, if you look at the pnl, they will have to pay for staff cuts. But they have longterm leases. This Business Model is to arbitrage long tom leases , renting a desk out or a Small Business space month by month. That is how they are supposed to make their money. If they are going to renovate their pnl and find a way out of this, they may have to cancel some of these lease deals. That is the kind of thing they will have to look at. Surely they would be up on costs. Maybe they need to buy their way out of leases. Whether it is an existing there are a lot of things that need to be done. In the end, it wont matter which management is there to do that. My concern is that would take away from the Softbank Vision Fund and their management, and the 82 other companies they have in their portfolio and the investment they need to put into those companies. Matt tim, thank you for joining us. Our opinion columnist out of taiwan. You can get his work by typing opin on the bloomberg terminal. Lets go to the biggest carmaker in the world. Volkswagen is looking to review options for one of its sports car options, lamborghini. That is as volkswagen seems to reach a market value of 200 billion euros. A sale or ipo is currently off the table, according to the company. That kind of speculation they say is unfounded. Joining us is the global head of Automotive Research at evercore isi. Wants tof volkswagen get to 200 billion euros from roughly 80 billion euros today in market cap. How does he do that without monetizing lamborghini, bugatti, bentley, porsche . Doesnt he have to do that at some point . Not justlkswagen is the biggest oem globally, it is also the company with the greatest brand equity. Brands, the ones you mentioned, theche, audi, they carry highest value, and it is hidden within this valuation, and obviously i think what he is is to lifthere i the value within volkswagen. You can do this by raising the cash flow of the group, but i think you will always be a victim of very low valuations through the sector, or you try to create a real volkswagen Holding Company and underneath that Holding Company you would have partially listed entities. Today, we talk about lambo, but we could also talk about other brands. Anna good morning. We want to unlock the value in the things you own. Thinking about lamborghini, how difficult is it to put a value on this type of business . Arndt i think at least we now have a low point with the valuation of about 1. 7 times revenues, and we have a high point with ferreri, which is trading at about 6. 5 times their revenue. That is a huge bandwidth. I would assume that lamborghini sets somewhere in between. But it will not be easy. We do not know the earnings numbers. 10 ink it is an 8 to margin business right now. Martin is losing money. It comes down to the specifics of lamborghini, and what else they might add to a potential ipo or sale of being mentioned here. Matt what about porsche . It has always been the most profitable carmaker in the world. Markets would surely salivate at the chance to get a piece of porsche. Alone would be worth more than all of volkswagen. Of porsche . 20 arndt we have been discussing this for many years, obviously. Porsche is by far the biggest asset within volkswagen. It is a business with 27 billion euros in revenues. It is highly profitable with 17 margins. It would be worth 150 billion euros. It is pretty straightforward. But what is also clear, there are still legal liabilities and lawsuits within porsche, and lawsuits within volkswagen. So valuating these assets at times when both Country Companies are still at court, it airs risk. It bears risk. But creating a true Holding Company and having these huge underneath that holding while still controlling the assets, i think that could list a huge value for shareholders. Anna thank you very much. Horst, head of Automotive Research at evercore isi. Violence escalates in hong kong. We will get the latest from the city next. This is bloomberg. Anna buckham back to the european open. Six minutes, five minutes until the top of the hour. A negative trading day for europe. It was another weekend of a violent unrest in hong kong. Inolice officer was slashed a neck after a confrontation in a train station. To our asia government reporter in hong kong. How has the latest violence affected the city . Been just one more weekend of unrest here in the city, the 19th straight weekend we have seen disruptions to the subway. We have seen clashes between protesters and riot cops. This weekend, oddly enough, even though there was a Police Officer stabbed in the neck, the protests were actually smaller than they have been in previous weekends since october 1, when Chinas National Day saw a violent unrest with a protester being shot for the first time. There was a weekend of intense clashes last weekend. This weekend, we did not actually see things get that bad. There were scattered groups of protesters. They were smaller than last time. I think people now are starting to think that protests have entered a new phase. Things are getting a little more violent as protesters try to maintain momentum and keep themselves in the headlines. We are not sure what is next, but there is a speech from the hong kong chief executive this weekend. There will probably be more protests than as well. Matt thank you for your time. Iain marlow is the government reporter out of hong kong. We are headed to radio. Up next on tv is surveillance. 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. A handshake seals a partial china trade deal. Not good enough. The eu says a brexit breakthrough is still a long way off. Respondsas president to the turkish incursion by sending troops to the region. 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