Demonstration is planned today. Protesters will show support for a bill in the u. S. Congress that could potentially sanction some chinese officials. South korean president moon jaein is apologizing after his close confidant resigned after taking the job. He says he thought regret for causing friction for his appointment of the justice minister. Quitting tot he was improve the environment former forms of the National Prosecution system. 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. Is 1 00 in new york, 6 00 in hong kong, 1 00 in london. Im vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories from around the world we are following. 17 days until brexit. Johnsons chances of sealing a deal with the European Union are hanging in the balance once again. The bottom line for big banks. Earning sick off this week. We have a guide on what to expect. Apple is seeing higher iphone demand than expected. We will tell you what the driving that strength. All that to come but first we are halfway through the columbus day trading day. Kailey leinz is with us, pretty quiet. Kailey it is pretty quiet. The moves are pretty marginal. Flat. W is roughly the s p 500 and the nasdaq each down by 21 as investors await the prospects of a deal. Down by 0. 1 as investors await the prospects of a deal. See the big leg lower came after this morning when china said they wanted more talk before signing on to phase one of the trade deal that the see the bigpresident was excitr the weekend. We got more support on a tweet from the editor of the global ese, sounding optimistic, saying they want a final agreement. All of those there gives have left investors unclear on where to go. A lot of swings, not a lot of moves at the end of the day. One sector that is of is financials. Big Bank Earnings ticking off tomorrow. Take a look at the chart of the banks that will be reporting starting tomorrow. Between 1 and 3 in the past week. We will be paying attention to Net Interest Income and trading revenue in those reports. One risk asset that is decidedly lower today, crude. Take a look at the intraday chart of wti. Trading atone risk about 53. 50a barrel. Oil closely tied with trade in terms of global demand. Shrinking trade optimism seems to be weighing on oil today. Vonnie kailey leinz, thank you. One mover today, the pound. Sterling having its weakest day in weeks. Michelle barnier saying force johnsons proposal lacked details. Johnson spoke today after the queens speech. He outlined a plan for what he would do if he wins the general election expected to be triggered within weeks. Therese raphael joins us from london. Where exactly do we stand . Of jubilantsort friday when there was a suggestion that talks in brussels on a brexit deal were making progress. Monday felt like the hangover. There is no indication that they have made any technical progress on the big issue that is dividing the two sides, how to treat the irish border. Meanwhile, you have the bizarre spectacle of Queen Elizabeth ii taking her speech, opening parliament, setting out the governments agenda, only the government is in office but not really in power. Really, with the queen was doing was setting out the governments election manifesto, yet no election has been called. Waiting fortill some kind of concrete news about where these negotiations are headed. Wednesday is pretty much the deadline for that because thursday begins the European Council summit, which will go on for two days. Saturday, the u. K. Parliament meets. We would expect an almighty dustup on what comes next. Essentially, the next few weeks could make a mockery of what happened during the queens speech today. There are so many potential scenarios. Bear in mind, legislation passed suspendoris johnsons the parliament required him to request an extension from the e. U. Am a rather than going into a new audio brexit october 31. There will be a question whether he will be forced to do that or find a way around it. First hurdle is whether there is any kind of deal he can bring back to parliament. That first hurdle is whether there is any kind of deal he can bring back to parliament. That is what he is seeking. The two sides just seem too far apart. Johnson wants Northern Ireland to be out of the e. U. Customs union, part of the u. K. , so it can benefit from trade deals. The e. U. Says the proposal is on the table, gives rise to too much fraud, uncertainty, Technical Details are not there. Raphael, thank you. Back in the u. S. , stocks between gains and losses, marginal, as investors debate the implication of this partial trade deal apparently reached last week between the u. S. And china. For more Market Analysis is david sowerby. He joins us from detroit. Significance of any kind of partial deal at this point for investors, is there significance . David you said it best, partial. I dont know if it gets us even halfway there for removing this overhang of uncertainty with respect to trade and terrace and the indirect tax it has placed on the economy, diluting last years tax cut. It is partial at best. We are hearing handshakes, not written agreements. That is not have Portfolio Managers can manage money in that type of environment. Today, what have you been telling clients, how have you been trading . David i am telling clients consistently, what will still trump the uncertainty over tariffs, companies are still good allocators of the capital they are generating out of cash flow. We will hit pretty high tide for earnings season coming up tomorrow. 50 out of the 500 stocks in the s p 500 reporting. I will Pay Attention to this quarter because it will really set the tone for guidance on 2020. This is when companies are budgeting for next year. Guidance will say about 5 to 6 earnings growth. 10 some are expecting, but still a pretty good backdrop for this stage of the cycle, amid the tariff uncertainty. Stocks and hold on around this level, if we get a modern earnings season . Will investors consider it a turning point . David so far this year, the largest intrayear drop in 2019 has been about 7 . We know historically the usual intra, the your drop is more than 10 . I would not be surprised if we got more pain in the month of october. Decembery, november, are good months to be investors as Companies Set realistic expectations for the coming year. We are still in an environment where stocks are still the best bet. Vonnie at what point do you start thinking about who gets elected next time, whether the incumbent continues to be in power, and how that may impact portfolios . Have never been able to accurately predict politics and connect the dots to portfolio management. If i operate where i think politicians are typically going to do the least amount to solve a problem, that is probably rule a in managing portfolios. Will the company be a month to return to shareholders . Who is occupying the white house . Environment,of companies are doing a pretty good job of being stewards for capital for investors in this current environment that i suspect continues into next year. Are your picks these days, what kind of sectors, companies . David understand that there is a little bit of talking the mutual fund that i comanage and i will have a value buys with Dividend Growth and dividend yield overlay. Marathon petroleum is one that we have owned for a while. Elliottstarting to see reemerge as an activist in marathon petroleum, with the Company Getting split up. They are growing their Free Cash Flow. Dividend is compelling. Got upgraded from underperform to neutral by bfa. We have owned nike for more than two years. This is a company that is also grown its dividend. The valuation is not cheap, but on a Free Cash Flow basis, it is still a value that an investor ind comfort in. Vonnie our thanks to david sowerby. Tuesday, we have an exclusive interview with the jim bullard of the st. Louis Federal Reserve bank. That will be on bloomberg surveillance. Coming up, investors get an early read on the impact of the feds recent interestrate cuts and bank thirdquarter earnings this week. We will have details. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. Off earningsking season this week with jpmorgan, goldman sachs, citigroup, wells fargo all reporting tomorrow. Bank of america on wednesday, Morgan Stanley on thursday. With a look at what to watch we have sonali basak. Jpmorgan tomorrow morning around 6 45. We get a good look at what the consumer looks like and whether they are lending more money. Sachs, hear from goldman where we will hear about trading expectations. We also hear from bank of america wednesday, Morgan Stanley thursday. With that said, all of the major banks are expected to have lower revenue throughout the year. They have all been impacted by tough deal fees. Morgan stanley and goldman sachs, investment banks have been impacted most. Jpmorgan doing better with a lot of people lending over the year. That said, the yield curve has been pretty tough on all of these banks. Jpmorgan, wells fargo, bank of america revising their net interest expectations for the year. Also, treating is expected to pick up a little bit. It is still not expected to be enough to turn around the tough year. Stanleytalked to morgan earlier today and they believe the consumer may pick up the results of these banks. That see from the data actually loan growth is pretty good. We have a loan growth coming in better than what we are forecasting for the commercial loan portfolios. Over the past month or two, consumer borrowing, especially in auto, nonmortgage, has accelerated recently. Believesbviously, she lending is picking up, but Interest Rates are heading lower. Looks like they will continue to have lower. What is the longerterm trend in terms of revenue . Sonali with the consumer borrowing more, with net interest coming down, this account for more than 40 of jpmorgan, bank of america earnings. Interest rates coming down is never a good thing. It has only gotten worse the last time we heard from the big banks. She talked about delinquencies, how we will be watching those. So far it looks like at the consumer is not getting into bad debt. Sonali certainly a bright spot, that the consumer is able to borrow more. Especially all your when you see the consumer ticking the activity up at these big banks, especially when you see these corporates capping out on lending. Innie volatility picked up the fourth quarter, which is typically good. What are we anticipating to hear from the banks . Be good ifcould people are borrowed more if you are a hedge fund in people are putting on more leverage. If it goes too far, it could stifle activity. The beginning of the third quarter, it seemed like a good thing, toward the end, seems a little rocky. Theill see how the rest of year will fare. Global tensions have not gone away. Vonnie it may not feature heavily on the bottom line for the major units, but what happened to underwriting during the quarter . How will banks make that into a narrative . It was not very good. Sonali thats right. When you have equity and debt falling throughout the year let alone the third quarter, and you have these highprofile ipo flops, it will be interesting to watch the banks turn around and say how investors are buying the debt and equity of these companies, especially when it was already troubled throughout the year. Vonnie we have to look at expense controls as well. You will be looking at all of that starting tomorrow morning. Thank you. Checking on the prices of oil, brent and the vti, as you can see, we are seeing a down day for both. Down 2. 3 on wti. Prices also being hit by the uncertainty over the u. S. China trade talks. Apple unexpectedly surging on iphone demand but catching criticism for sending web browsing data to tencent holdings. More on apple and its complicated relationship with china. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. Time for the latest Bloomberg Business flash some of the , biggest stories in the news right now. China may be winding down its fight with the nba. Tencent stream to give your games played outside of china, and editors have told reporters to stop emphasizing the mba issue. Tensions flared at the general manager of the Houston Rockets to get support for hong kongs protest. That led the countrys staterun tv network to quit showing nba games. Three economist from m. I. T. And harvard have won the nobel prize for economics, honored for their work in how to move people out of poverty. Digit thes include at and esther duflo and harvards echo kramer. Apple is seeing higher iphone demand than expected. The reason is falling prices and the inevitable aging of the older models. Apple missed holiday sales target last year but since then have cut prices and offered more attractive trading deals. The iphone 11 went on sale last month. That is your latest Bloomberg Business flash. Lets continue with apple now. Joining us is mark gurman of Bloomberg Technology in los angeles. There was better demand for the iphone 11. Was it a better phone, what transpired that make people buy more of it . Exactly right. It seems the price cut on the new entrylevel flagship model is really doing what it was designed to do. It is spurring sales. ,ast year with the iphone xr that was priced at 750. That is a high price point that was inferior to the previous line. Now the 11 is pretty close to functionality other than the display. Combine with that reduction in price, that is a big deal and that is for customers to purchase. Vonnie what does that mean for the next cycle . It seems like people have upgraded, and suddenly we are seeing new people come out of the corners and by this 11. Is that everybody for couple of years . There are two things going on. The iphone upgrade cycle is about four years. The average consumer it does not include me but the average consumer is upgrading every four years. That means they are coming from an iphone 6 or 6s. That was the first time they really upped the screen sizes, created multiple models. It is four years since that happened, so that is spurring a lot of upgrades this year. Apple is lucky because next year cycle, so they are getting two big upgrade cycles two years in a row. They needed because of last years predicament. Vonnie another interesting predicament, apple is coming under fire for directing some traffic to the tencent servers in china. How did this happen, why is apple responsible . This is something apple instated with ios. This is a feature that you can opt out of. If you want to go to a website, the system can tell you if it is a malicious website that will still your data. In order to do that, they need to check it against this safe browsing infrastructure. Google owns it pretty much everywhere in the world except for mainland china. In china, google doesnt have as much access, they have tencent. In some cases, they will send your phones ip address to tencent servers to conduct that communication, to receive the knowledge in that link you are going to is malicious or not. Given the past weeks of events, people are concerned about that. The concern stems from apple never publicizing the future, but its been there, and apple has responded, they are not actually sharing website links with tencent or google. Vonnie is that the workaround that apple now comes clean and says tencent is not being a malicious actor here . They are not really coming clean with anything and nobody is a malicious actor. This has been in ios a number of years but somewhat hidden. The average user would not know this until people started talking about it in light of chinas relationship with apple. Vonnie mark gurman, as always, thank you. Coming to us from los angeles. Apple up just more than 0. 1 right now. A quiet trading day things to columbus day, the bond markets are not open. The s p 500 is down about 0. 1 . This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. Vladimir putin is in saudi arabia meeting with the crown king and the saudi prince as he tries to cement political and energy ties across the middle east. It is his first visit to the kingdom since 2007. The two are likely to discuss ongoing tensions gripping the region, including saudi arabia is spun with iran, and turkeys military campaign in syria. Afghanistans president ial Election Results should be announced later this month. Voters voted in president ial elections in september despite televangelists and violence. The polling was marred by widespread misconduct and accusations of fraud. Three economist from m. I. T. And harvard have one thing the nobel prize in economics. They are being honored for their work and how to move people out of poverty. Esther duflo is only the second woman to win the economics prize. The world loses about 400 itlion worth of food before gets delivered to stores. The United Nations says 14 of all food produced is lost annually with central and southern asia, north america, in europe accounting for the biggest share. The wasted food is causing scrutiny because of the koch vision to Greenhouse Gas emissions. More than 820 Million People are estimated to go hungry each day. 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. Welcome to bloomberg markets. China throws cold water on trade optimism. The country wants more talk before signing to president trumps phase one deal. The risk on rally fades. Brink ofon the rink imposing sanctions on turkey. The latest on the escalating tensions. Wework is analyzing ballot options to a debt package from jpmorgan. Lets get a quick check on the major averages. We are seeing stocks fluctuating between gains and losses. Investors trying to work out what a chinau. S. Partial trade deal actually means. Down a tent. P 500 sources say china wanted to iron out details before signing on to a trade deal. Utilities, Consumer Staples leading the declines. Oilgy also down as we have heading down to 53 a barrel. Secretary mnuchin putting a positive spin on it, saying he expects there to be a trade deal. This may be welcome news for china. Secretary mnuchintheir septembes did not look good. Exports decreasing 3. 2 from a year earlier. Imports, whether in dollar terms or yuan terms, both seen significant declines, imports dropping a. 5 in dollar terms in september. This would be the ninth month of declines in 10 readings, as we see more evidence of the economy slowing in china. 18 months of trade tensions. Fussing over phase one of that trade deal, china says it wants more talks to hammer out the details of that truce. President trump touted the deal last week that sources now say president xi wants more talks before signing it. For more, lets bring in Sarah Mcgregor from los angeles. She leads our team for economic policy. What do we know so far . Is a trade deal likely to be signed at the apec summit next month . Be a there seems to mismatch about how the deal is being spun by both sides. We have the Trump Administration coming hard on friday saying this is a partial deal, step one, just a few more details to iron out come and we will have the signed next month. That left a lot of people scratching their heads and even china about the solidity of the deal. The devil is in the details. All along, even if the u. S. And china could agree to parameters, overarching goals, it was when they tried to get it down on er, which it is not yet that things would start to unravel. It is concerning that china is coming out saying we need more talks, we are not necessarily going to just signed a deal and say its delivered for november. We still have work to do. Shery we have the influential timesr of the china saying, basin what i know, u. S. China talks made a breakthrough last week and a two sides have a strong will to reach a deal. Theinitial statement of chinese side is moderate, but this does not mean that chinas attitude is not positive. We have seen this reaction from china before. When the u. S. House a breakthrough, we have seen china be more measured. Being its more measured self as in the past, does this point to a lack of trust, given that we have seen breakthroughs in the past fall off and not go anywhere . Is a absolutely there history of donald trump and his administration overstating the success they have made. I think a lot of distress. Trump before has said tariffs are off, back on. To me, what this amounts to is, this trade deal announced on friday, at first there was a tentative up arrow, the markets even went up. People thought we had made progress. Today, people are digesting the fact that uncertainty is still guaranteere is no that there will be something to sign in november. That is reflected in the markets, now that people have a moment to sit back into what they heard on friday. Businesses thinking can we plan for this, is this something we can put into our Business Plans . Not yet. This be a political shot in the arm for president trump, given we are expecting those agricultural purchases . I would say probably for those agricultural promises. Farmers on the ground are feeling this every day. It will be a matter of whether they see those orders come through at this point. The uncertainty right now is the killer for businesses, farmers who need to know what to plant. Everyone is probably holding their breath a little bit. No one Will Champion it as a deal until it is signed, those purchase orders are in for soybeans, pork. Sarah mcgregor, thank you. The latest on the u. S. China trade. For more on this and the economic fallout, lets bring in numerous securities lewis alexander. We have seen what could potentially be a trade truce. I wonder, how much will this mini trade deal help with the Global Economy, given we have already seen significant weakness in parts of the Global Economy. This chart on the bloomberg showing you the manufacturing slump around the world. I think it will be some help. Taking a step back from further escalation is a good thing in and of itself. Is the u. S. Point economic relationship with china is off track. I dont think the deal goes very far into turning that into a positive direction. As long as the countries are pulling in different directions, the uncertainty that exist remains, and that is the drag on the Global Economy. Moment, we are seeing this decoupling happening between the u. S. And american economies, whether on trade, tech, so many different fronts. Lord are the implications of that for the u. S. Economy at least . Lewis we have seen for example, just last week, the u. S. Putting a number of additional Chinese Companies on this export list, even while they are trying to negotiate the deal. That is an indication of the tensions pulling the countries apart. This will be a drag on u. S. Business until this is settled. If you are a major u. S. Corporation considering investment, it is hard to do that until you have a clear sense of how this will go. I will note, the relationship with china is the single most important source of that, but not the only one. We are 14 months away from a president ial election that will have a big impact on economic policy. It will be very hard to lift the cloud of uncertainty. Shery it is not just because of uncertainty. There are businesses directly hit by the tariffs. And we still expect the december tariffs. This is what the ceo of the american footwear and Apparel Association had to say. Not much of a relief at all. Look, we are thrilled, beyond thrilled, that everyone went to had a goodhey meeting, they are on track, talking. That is it usually for everyone concerned. Honestly, we didnt feel like we got anything out of this. What did we get out of this . 5 that was going to hit us in a couple of days not going to hit us. Nothing about nothing. Shery is it nothing about nothing . It is small, particularly for the retail sect or. In big issue are the tariffs december. Those are a bigger deal in terms of their direct impact on consumers as well as inflation, all of those things. The real question about this many deal is, does it affect the is that those higher tariffs will go into effect in december . It is our judgment that some progress has to reduce the probability of those tariffs going into effect in december, but we think it is more likely than not. That is the thing to keep your eye on. Shery will there be a Material Impact on consumption . Lewis we think so. Look at consumer surveys asking about buying conditions, in an environment where employment is strong, income is strong, you see consumer starting to say buying conditions are deteriorating for bigticket items. We think that reflects the fx of previous tariffs. One of the places where tariffs is on is washing machines. We tend to forget because there have been so many different tranches already. Lewis 6 we think you can already see some impact of that on the consumer. I think there is some risk associated with that last straw. Shery what does it mean for the fed when they cannot know, like any of us, where this is headed . To makehey have decisions about where they think the economy will be in the future. People talk about 6, 12 months for auditory policies to have their full effect. That means they have to make a judgment about how they think this will go. Toiously, its not their job make trade policy, they will not talk about that directly. But this uncertainty which is weighing on the outlook, i think it has to be something that is going into their decisions. Until they see some real resolution of this trade policy uncertainty, that will continue to weigh on the outlook and push them in the direction of providing further accommodation. Shery and it is not just u. S. China trade tensions, it is with japan, usmca going on, europe, we dont know where that is heading. This chart on the bloomberg showing this declining trend as a world percentage of gdp. Can there be a meaningful recovery without trade being in the picture . Lewis it is not completely impossible but very hard. It is such an important part to the way the Global Economy works now. Is hard to imagine a strong Global Economy that does not include a recovery in trade. The u. S. China relationship is the single most important part of that. To the extent china slows, it affects the trade that china has with other countries as well. You are absolutely right, there is a whole list of u. S. Trade policy issues that are right behind it. European autos. The relationship with japan. Usmca, we think wills probably still get through. Shery congress is not getting there yet. Given the toxic environment, you cannot take anything for granted. Even if you solve the relationship with china tomorrow, you would have other issues. Shery which we are not expecting. Lewis alexander, thank you so much. Gnome ors from securities. The Trump Administration moves closer to sanctions on turkey as the u. S. Ally kurds looks elsewhere and endless the help of an american foe. We would get the latest next. This is bloomberg. Shery this is bloomberg markets. Im shery ahn in new york. Poised to pose sanctions on turkey as soon as today. The reporting comes hours after treasury secretary Steven Mnuchin said it was not too late to impose penalties on president erdogans government for its offensive into syria. There are reports of atrocities against the kurdish allies who are not listing help from syrian president bashar alassad. Basedin harvey is usually in istanbul, but today he joins us from washington. Great to have you with us. What can we expect in terms of sanctions coming from the u. S. . Benjamin we are hearing the earliest round could be targeting a broad range of individuals and the defense sector. If you take your cue from the mark is about what this means for turkey, the lira has pared its losses, the expectation is the u. S. Will proceed cautiously here despite rhetoric about destroying turkeys economy. It doesnt look like that will happen, at least in the initial stages of the u. S. Imposing sanctions. Shery what is the situation on the ground . We have reports that hundreds of thousands of Islamic State prisoners have escaped. Benjamin things are happening in syria as expected. Turkey has gone in to syria, has created this border area that it wanted to create. The kurds, having been abandoned, have sided with russia and bashar alassad, and Islamic State prisoners are either escaping are being set free from prisons where they have been held. Surprisingy thing is it is happening so quickly. Only six days that this has unraveled. Now withe current syria. We are hearing the Government Forces are pushing closer to the border. This war has been going on now for eight years. Benjamin this leaves russia as the main power broker in syria. The kurds have made a deal with the syrian regime. This is what Vladimir Putin wants. His priority is territory integrity in syria, to have assad eventually regain control over the entire territory. You expect the turkish government and the russians will come to some agreement about their presence in the area, which will be the only area not help either regime david shery how significant of a political maneuver was this for president erdogan . Benjamin it is two sided. On the one hand, he has a conflict his military objectives on the interior quickly. The next up is he wants to go in and send back refugees. About 4 million refugees inside turkey. He wants to send them back to the area in the north, to resettle them there, and also to push the Kurdish Forces away from the turkish border. On that side hes been successful. On the other side, it depends on how much damage he suffers from u. S. Sanctions, if they are coming. Shery we have seen the turkish market sinking, the lira breaking past that 5. 93 level per dollar. All apply pressure for erdogan to back off . Benjamin unlikely. He said earlier today that nothing will stop them, that they are there to a cup push their objectives, and will do in the matter what pressure they receive. It seems unlikely the u. S. Will be able to reverse this with sanctions. Ironically, the one thing that could perhaps reverse this is russian intervention. Shery which is now emerging as a power broker in the region. Benjamin harvey, thank you so much. Faces a bigework decision on how it will address its cash problem. We take a look at their options next. This is bloomberg. Shery this is bloomberg markets. Im shery ahn in new york. It is time now for the Bloomberg Business flash, some of the biggest stories in the news right now. Johnson and johnson was ordered to pay a billion dollars for wrongfully pushing doctors to prescribe antipsychotic drug. Now if you get worse. They face 100,000 lawsuits alleging injuries from baby powder, opioid painkillers, and other products. Analysts say the costs of resolving those cases could reach 20 billion. J j reports earnings tomorrow. An indian startup is close to getting to billion dollars in new financing. Investors include softbank and others. The funding values them at 16 billion. The company is indias top Online Financial Services firm. That is your business flash update. Wework is running out of cash quickly. Has that considering a bailout that would give control to softbank. Another option they are considering is a 5 billion that package with jpmorgan. Here with the latest is michelle davis. Great to have you with us. We have two options here for wework. Do any of those options work better at this point . Michelle at this point, it is whatever option that can come together the quickest will work best for them. Wework is facing a cash crunch. Bankers, investors have determined that if they dont get cash in the next month or so, they will run out. If softbank and get it together first, that will be best for wework. It just comes down to who can get this first. Shery softbank is already weworks largest shareholder, so how would this work in terms of them getting more control of the company . Michelle what has been talked about so far is, softbank has invested more than 10 million in the company. The investment would result in adam neumann no longer having much of a say what happens in the company. He already languished a lot of control when he stepped down as ceo of the company. Now softbank adding more money, quo pro would be, we want more control. It would be unusual to see a major investor coming in to call the shop. Shery do they have the capacity to do this . He has his own issues with his second vision fund. Michelle that is why he has an incentive to make good on this investment. As he is marketing for his vision fund, it is in his best interest for this company to improve and have its finances shored up. Shery what would be the other option, jpmorgan . Michelle we reported last week that wework had higher Jpmorgan Morgan to refinancing talks. We understand 60 housing finances have been looked at. The total could package 5 billion. The breakdown is still up in the air. At this point, it looks like it would be a 5 billion that package. Shery last week, as we saw the news breaking, their bonds jumped to a record. Michelle when a news came out of they were facing a cash crunch, bonds plummeted. Bonds have been trading at distressed levels ever since the ipo was pulled. When the news came out that they were looking at a 5 billion debt package, that set the bond soaring. That meant the company was not go into bad territory. That are investors, banks have an incentive to help his company turn itself around. Fails, that is bad for more than just wework. Shery when do they run out of money now . Michelle as soon as thanksgiving is when they need to get things sorted out by. Shery michelle davis, thank you for the latest on wework and the different options they are weighing on right now. You can catch all of the interviews on the bloomberg at tv. If you missed any of the interviews, you can also dive into our security functions that we talked about. Live from new york, this is bloomberg. Mark im Mark Crumpton with bloombergs first word news. Into effect ongo turkey in response to their military defense in syria and atrocities against the kurds. Bloomberg has learned of the initial round of the tariffs will be aimed at a wide range of individuals. Sources tell bloomberg the department of state, defense and treasury worked over the weekend to draft the terms. Problems for Boris Johnson and his brexit plane. The European Union warns of that talks are a breakthrough. Ministersrime political allies are distancing themselves from his plans. Proposal forhae breaking the deadlock over the irish border does not have enough details. The new session of parliament was opened by Queen Elizabeth. My governments priority has always been to secure the united kingdoms departure from the European Union on the 31st of october. My government intends to work toward a new partnership for the European Union