The protest continues for a 21st weekend. We are standing by for Election Results in argentina where the president is under pressure. We will be live in buenos aires for the latest. Paul lets take a look at how we are shaping up for the start of a new trading week. Higher. 1 . Pointing we did of course the u. S. Equity markets finishing in positive territory on friday. Earnings season progressing better than expectations. Nikkei futures trading out of chicago, stronger by. 1 and the kospi looking to be in positive territory. No trading in new zealand. New zealand markets are closed for the labor day public holiday. Lets check in on four times. Su firefighters working to contain blazes. Nearly 200,000 people. Homes in and one winery have burned to the ground. Governor gavin newsom has declared a state of emergency with nearly 3 Million People without power on sunday. The result of argentinas election is respect expected. Facing opposition from alberto fernandez. This is on the backdrop of economic cant currency crisis. Currency crisis. The government is seeking to reorganize more than 100 million. China said parts of the tax cut are basically completed. That follows the call with the chinese vice premier and the u. S. Trade negotiators. Commercedministrative said the sides have agreed to resolve their concerns. Hong kong prodemocracy activists clashed with police once again area this is the 21st straight weekend of unrest. , who haded tear gas blocked roads and disrupted traffic. Some of them threw petrol bombs at a police station. There were sat up separate clashes saturday night after a peaceful rally that had drawn thousands of protesters in the city. Hong kong warning of the potential of negative growth as the economy reels for four months. Impossible tot is rule out the possibility for your gdp will decline and is looking extremely difficult to achieve the forecast of zero to 1 growth. The impasse looks set to continue after the main Opposition Labor Party made clear it will not back Prime MinisterBoris Johnsons bid for early election. The refusal means johnson has certain to fall short of the two thirds majority. The e. U. Says it will announce by tuesday any brexit delay. 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. I am su keenan. This is bloomberg. Shery an Islamic State leader is dead. He was the highest ranking paris since, isis leader bin laden. Lets go to ros krasny. This is for President Trump . Ros it is some kind of boost, one of, may the biggest foreignpolicy achievement of his office terms of far. We could see a bump in his approval rating, he will be moderate, modest at best and possibly quite shortterm. Democrats came out and praised trump, republicans. In their praise. Most americans, lawmakers or regular people, they tend to think the luxuriant officials credit for these kind of rates. People in washington or the United States are set in their views there is not a lot of squeaking room. Around,hing to turn many views on the president. Paul how about the other side of the equation, how much of a blow is this for the Islamic State . Blow tois somewhat of a but really state, the sense is the leader is dead area the ideology lives on. In the past several years, the Islamic State has lost two of its previous leaders. The ideology remains out there. In the past year or so, there has been a number of brutal bombing attacks Islamic State has taken credit for. Not the end. S i think u. S. Officials and officials elsewhere are prepared for this. We heard from the u. S. Defense and rick perry talked about the potential for a quick defense secretary who talked about a potential for a quick rebound. It could be a motivator. Possible leaders waiting in the wings. What is the latest on the impeachment inquiry and will the latest accompanist meant have an impact . Accomplishment have an impact . Ros there are two things on foreignpolicy and the impeachment inquiry. Past,e seen this in the with bill clinton and richard nixon, doesnt matter what the economy is doing, Foreign Policy if lawmakers are pursuing inquiry along those lines. Schiff, the chairman, said today hearings are likely and they are likely served. This week we will hear from current and former officials who will testify monday on board. Looking for the public hearings before to now before too long. Paul ros krasny, thank you for joining us. Bloomerry says the shale means markets are awash in crude. The full review is coming up just ahead. Victoriaoss market fernandez raising of corporate earnings and expectations. This is bloomberg. Shery prologic is saying it will buy Liberty Property trust in an all stock deal valued at 12. 6 billion including debt. The chairman single Liberty Logistics assets are highly compliment three according to the u. S. Portfolio of it and it increases. We all stock deal valued at 12. 6 billion including debt. Up around 40 this year. The fed is expected to lower Interest Rates this week. Major names will be reporting. We have google and facebook and others. Is one of the busiest weeks. Lets get to the snapshot. Deals oil and bond deals group. Semis have been better, Semi Conductor scott stocks outpacing. This is the nasdaq, the purple. Better than 40 year to date. Be all tech names will the more in focus. Lets look at the names reporting. We have got facebook, amazon, apple. You are looking at the year to date performance which has been strong with the exception of netflix, going into where they ended friday ahead of earnings. Facebook and apple will be reporting later in the week but apple reporting later monday, joined by at t, walgreens and tmobile. There is a whole other sect of marquee names we will see later in the week. Tech not just the big names, 146 s p 500 companies presenting results. What are we expecting . Results,ave got oil ge, all of these likely setting the tone. Bige take a look at the names, you know this will be a big driver. Apple and facebook, likely in the spotlight. Apple is up huge going into these earnings. The air prods are set to launch and coming off of the washington hearing with the ceo, beijing aboutere he got wary the relaunch. It will make for an interesting conference call. Paul thank you for keeping an eye on that. The chief Market Strategist, victoria fernandez with us. We had her giving us a rundown of earnings season. What can we expect to come . Strong or is this Company Specific . Specific verypany we have had 50 of s p market cap already report, 80 feeding on the bottom line. Surprises coming in solid, over 4 on the upside surprise. We have had good numbers. I dont think we can go all in on one sector based on earnings we are seeing. Intel and Texas Instruments and semi, great example, Texas Instruments not as well as intel and the stocks reflected that. You have to look at the companies. We will see amazon with aws. That was a drag for them compared to reviews quarters. Ou had azure we will have to dig down and not just look at sectors as a whole. Paul we spend a lot of time macro outlook, trade difficulties. Results speakese to a strong u. S. Economy or can a lot of this be packed at the door of the fed . You are seeing across the board we have the economy going on whether it is the fed right now where you are seeing very hawkish numbers, dovish members and some info middle. It is a split fed. We have seen that with the dissenters. We are seeing the same thing in the economy, soft data not really painting as rosy a picture as our data. At some point a lot of the uncertainty driving this dichotomy will have to filter through. We will see them start to come together more. The question is which way will it be . Rosy picture and lifting the markets or will things filter through into the consumer side that has been support for the economy and take a hit in the market . Have seen apple hit alltime highs. You have added your position, not to mention a couple of others. Give us your reasoning. We like to do a fundamental approach and take a longterm investment approach with our clients and portfolios. Apple is a name that has longevity, positive things going forward. We like the management they have. When the stocks came back a little bit over the last month or so, we took the opportunity to add to apple and with cocacola as well. One of the newest names is in the housing sector. That is a place we think there has been opportunity. We added that name, added lennar to our portfolio. Housing is one area that continues to do well. Housing numbers coming out this next week. We would Pay Attention to that sector. Shery what about the tech sector in general . We have seen growth start to lag. This trend all of a sudden has stayed, something which is sorted a couple of months ago. Is this a rotation we could continue to see . Spoke last, we had started doing a shift towards value. You have to have that tech component in your portfolio. We did up apple holdings a little bit to bring it more in line where the index is. You canm investment, look at these without trading on the headlines. Namesadvantageously you can put in your portfolio. Dont trade on every headline. That will get you caught on the wrong side of trade more times than not. Take the longerterm perspective for tech. You mentioned the consumer earlier. I am wondering what your feelings are on consumer stocks because we had a miss from amazon, ebay suggesting this quarter could not be. Anything you like . Currentlyt own amazon. Amazon was hit with the shipping charges that came through. One day shipping was something they had to put a lot of money into to develop that, extra warehouses to make it happen. You will see it happen with other companies where they are trying to get one day shipping or two day shipping, walmart and target. They are holding their own. We will have to read watch as retail numbers come out and see if the consumer continues to be strong. For now it is a great ways to be. The consumer is the foundation, recovery we are in. We anticipate they will continue to do so especially with the labor market as strong as it is. Shery thank you so much for that. You can get a roundup of stories you need to know to get your day going in todays edition of daybreak. Putin dayb on your terminals go to dayb on your terminals. You can customize settings so you only get news on industries and assets you care about. This is bloomberg. This is bloomberg. For thefficial results president ial election are expected. This is on the backdrop of. Conomic crisis what is the latest . Argentinian polling booths have closed. Local networks are saying early trends suggest opposition front runner leading in the results. Determine if there is a second round vote or david the possibility of a second vote around march, something we are watching out for. Other key things to watch out for . The margin between the top contenders, outright, fernandez must win with 45 Percentage Points or with 10 points ahead of the leading candidate. If he is under 45. From the august primaries, there would need to be a higher turnout. The president would have to be involved and fernandez would have to lose some of the votes he had in the previous. Shery the argentinian board will hold a vote this sunday evening. We have seen the peso plunging after the august primary. What are the market implications . They are huge, not just for markets. Vote, leading up to the argentines looking to buy dollars. To safeguard their savings especially in the plunged in the peso after the primary round. They have expectations there could be tighter capital controls monday depending on the results. Bondholders looking for signs of any next steps in the negotiations. They wanted to extend the payment. Paul thank you for joining us. We expect to see results from that election continue to come over. Firefighters working to contain blazes across Northern California that have forced the evacuation of 200,000 people. David baker is on the line from san francisco. What is the latest . We have fires throughout the state, mostly Northern California. In the midst of a very powerful windstorm. These things if you have not lived through them, there is not a cloud in the sky now. To wind gusts have been up 145 Kilometers Per Hour in the upper elevations. They are causing all of these fires that were either already burning to get larger or sparking new ones. We have seen a number of pop up threats throughout the day today and firefighters raising to get to new ones. , we have seen these shutoffs largest deliver it power shutdown. Power shutdown. What do we know if they are working . Ofwe have had a number Deadly Wildfires caused by power lines getting thrown around, blown into trees were backed to the ground. Those wildfires we have had the last couple of years drove pg e, the Largest Electric utility, into bankruptcy. Pg e and the states other utilities are trying to get ahead of this by shutting off the power to large swaths of the state when they see the winds approaching. But we have a number of fires popping up, the biggest one of these, burning in the wine country north of san francisco, appears to have started next to a pg e transmission line which experienced some equipment will function and went offline before the fire started. It is possible even though they are using this tactic, the fires are popping up anyway. Paul when are the current lack of likely to end . Blackouts likely to end . Shery the answer david the answer is unpleasant. They will taper off tomorrow morning. There is another one in the forecast coming in on tuesday. Pg e sent out a notice a couple of hours ago saying they will try to turn people back on back in between the storms, but they might not be able to. A lot of areas that will get hit by the next round storm are experiencing it right now and there is a strong possibility the people that have no power now are not going to get back for several days. Paul thank you for keeping an eye on these situations in california for us. On businesscheck flash headlines. Offering nearly 18 billion to tiffany co. In what could be the biggest purchase ever by the french owner of louis vuitton. It values them at 22 premium on fridays closing price. Sources tell bloomberg the u. S. Jeweler is evaluating the deal and there is no guarantee one will be reached. Biggestcy bc led the lead for stables thirdquarter earnings and Economic Growth continues to slow. 5. 8 increase in profits with net income rising to 11. 8 alien dollars. 6. 1 to 8. 4e billion. This one reported 2. 4 billion. This is bloomberg. En paul a mild and pleasant morning. Market open 30 minutes away, futures pointing higher by a one third of 1 . In closing in the green at the end of last week. I am paul allen in sydney. Shery i am shery ahn. You are watching daybreak australia. Lets get to first word news with su keenan. Su President Trump calling on the world to continue fighting Islamic State after announcing its leader is dead, following a u. S. Military raid in northwest syria. He becomes the highest ranking terrorist leader killed or captured since Osama Bin Laden back in 2011 during the obama administration. President trump said the u. S. Is targeting his likely successors. Profits earned by chinas biggest industrial firms are falling as the economy slows and factory deflation deepens. Profitsws industrial dropped 5. 3 in september, the fastest decline from the month before. The pressure on pricing continue to weigh on profits and debt servicing ability. The Chinese CommunistParty Central committee is expected to meet later monday for the First Time Since february last year. It is the longest stretch without any meeting in the decades since china started its reforms. President xi is expected to pick up where he left off, solidifying control over the ruling party including reshuffling key leadership roles. Than a week long state of emergency will be lifted at midnight. The country has seen its worst civil unrest in decades with thousands arrested and 18 people killed. The president as planning a cabinet is planning a cabinet reshuffle. 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. I am su keenan. This is bloomberg. Shery we are seeing u. S. Futures higher by. 1 after the s p 500 briefly topped its closing record friday. Now seeing sydney futures also as the asx 200 is at the highest level in three weeks. Nikkei futures in the green despite the fact the nikkei is in overbought territory. We continue to see it gaining ground for a bit consecutive session. Looking at the cosby which is also higher. We might see a higher open as we go to the open in south korea. We are awaiting export numbers on friday as we continue to see south korean shipments falling in the last 10 months. To more on what we should be watching as trading gets underway in asia. Adam haigh joins us. The latest bout of strength for equity markets against the backdrop of average volumes. Is this depressed activity a lack of conviction . It is a surprise because you have this flurry of activity, but you have not really seen the real pickup in the underlying trading activity for u. S. Markets. One way to gauge that is using which follows the s p 500. It shows volatility and trading activity levels back to the lows from july. That comes on the backdrop of the Earnings Results that have been unbalanced recently. You get a sense this week there is a chance volume can pick up. It is a fed decision on wednesday, nonfarm payrolls friday and if the flurry of earnings continues with all that and oil names, there is a potential alphabet and oil names, there is a potential for the high to push on. Absent of an update in trading activity and volumes, it will be difficult to see meaningful moves. A lot of it hinges on what powell tells us. Shery is the rate cut a done deal . Markets think so. Adam they do but they are coming off of a position which was pricing in a lot more aggressive rate cuts than what Market Pricing is suggesting. 25 basis points is a done deal for wednesday. The sense is that, will Jerome Powell offer any assessment, we are at the end of his midcycle adjustment, the last of the cuts in this cycle. You still have the potential for the fed to go once or twice, maybe next year. That is what the market is looking for and the commentary around his press conference role. Interim time of the last few weeks you have had this kind theasing of the store in u. S. China trade tensions but also significant repricing of the no deal risk in brexit, largely moved off the table which has helped the uptick in risk assets. That is why we are testing the 2019 highs. All eyes are on call. As we have earnings coming out, that will shift the dial. Shery thank you so much. You can find his charts on the gtv library on the bloomberg. In brexit limbo after the Opposition Labor Party rejected the Prime Ministers call for an early election. Hays isditor kathleen here. We know the labour party had an effective veto. If we get that vote monday, will this be Kathleen Boris johnson is pushing hard to get the security, to secure the majority he needs in parliament, in the house of commons to ensure a snap election. Why does he want one . Because he doesnt have a majority even among his own party. He needs to sweep up enough votes. He is hoping he will pick up labor people and from the Democratic Unionist Party even though they oppose what he is proposing to do for Northern Ireland when it comes to his plan. He accused the Opposition Labor Party of holding u. K. People hostage. Done isay to get brexit i think to be reasonable with parliament and say if they genuinely want more time to study this excellent deal, they can have it, but they have to agree to a general election on december 12. Kathleen Jeremy Corbyn speaking over the weekend. He opposes an early election. He wants to make sure any chance of hard brexit is off the table. This can only be because he figures if they can defeat Boris Johnson on this early election, what if they dont . Boris johnson might be free to move ahead. No deal off of the election, we spoil the election. I have been calling one the country needs one to deal with all of the social injustice issues. No deal must be taken off of the table. Kathleen the odds would appear to say if the labour party doesnt support Boris Johnson, there is no way this snap election, early election will go through. Force johnson once it on december 12. Bloomberg news has learned the e. U. Which is going to announce its plan, what it was willing to do tuesday, and ahead of that Bloomberg News obtained a draft opy of the envoys of the e. U. They are talking about you can have a brexit delay until january 31 next year. If you are ready to vote on it sooner, you can vote on december 1, even by new years. This is something Boris Johnson may not want to see because it gives his opponents more time to look at what he has proposed, proposed changes and make sure they have control over this. Paul away from the vexations of british politics, it is a big week for central banks. What is the latest outlook for the fed on wednesday and we have the bank of japan thursday . It is not so much what the fed does on wednesday. They will keep it 25 basis points that is expected because so many top officials signaled they want to keep the expansion going. It is what they signal for the next meeting, the last in december, when jay powell has his hourlong press conference after. What does he say . Lets jump into world Interest Rate projections. You will see for the october meeting the odds of a cut our 89. 9 . People see it as a slamdunk. For the next meeting in december it is down to 28 . As high asen seen 80 . Progress on the trade deal is one of the reasons people figure not that they would not cut in december but they will move slowly and be careful. This is on the heels, governor the governor of the bank of japan leading his troops. Even though he has been getting the ball rolling for additional stimulus, one of the last meetings in september, cut back your view of inflation and growth but dont the economy is folding in how inflation is below target, better to wait and see. In terms of the key numbers there are several big ones. Lets start with chinas purchasing managers index. We can move on to china. It is coming in for the month of october. The last manufactory number at 49. 8. It will be interesting to see if manufacturing weekends or starts starts weakening. We are looking for koreas exports because the 20 day palu knowle preliminary numbers showed a decline, the 10th month in a row. They are a bellwether not just for themselves but all of asia. Europe, five nations reporting pmi. You see a lot of downtrends. They are wondering how they can get their economy going. , octoberon friday, big employment report and the imf manufacturing index, the purchasing managers index. Below 50. Len wednesday. Ts on on friday giant numbers potentially, if they coming in weaker than expected, it is something the fed will not have in its pocket. They got to make their bets which is another reason why they wont say for sure what they will do in december, they will leave the door open as the previous meeting. Global editor kathleen hays. Global markets are awash in crude thanks to a surge in u. S. Oil output. The boom will continue according to the energy secretary. He told us why this will continue to drive the countrys energy ambitions. Irrefutableology is from the standpoint that it works. I think it has been safe. Allowing the world to have access to lng in particular that they never had before. Am hearing, here is the message i hear if i am a european, someone in the emirates, that there is an individual, a group of individuals basically saying we will not allow you access to a you that can free potentially from other sources of gas that might have strings attached. We will make your energy more expensive. I am not sure that is a good message to try to be running in a political process where people are supposed to like what you are saying. In terms of the structure of the market in the u. S. , we have had this major independence flourishing across the shale business. Do you think consolidation is the next thing to unblock the blockages . The market always addresses supply and demand. Reporter you think it is a part of it . It has always been. Consolidation always happens. People say i can make all of this money and do all of these things. Then they get in, maybe not as good as i thought. Reporter a year ago we saw mr. Trump tweet, getting ready to go to opec, his disdain for what opec was doing. A year later getting ready to go to opec again. Do you think we are pushing against uphill because there is so much american crude . I dont have a problem with that. The world has changed. It has been turned on its head the course of the last five or six years. 15 years ago they told us without all of the oil and gas there was in the world. Now we are awash if you will and the United States happens to be the ones that develop the technology. What it into place, we are reaping the benefits. The world is put it into place, we are reaping the benefits. Cheap energy is good for the world. Finally the right balance where those that can produce it can make a go of it. Keeping prices the consumer enjoys. Reporter if i look at the construct of opec, it is not the cartel it was in the 1970s. General barkindo has extended an invitation to the u. S. Can you envisage any level the or joiningipating with the opec plus at any level . Not really. I dont think it is a part of the future. David u. S. Energy paul u. S. Energy secretary rick perry. You can find indepth analysis on Bloomberg Radio, broadcasting live from our brandnew studio in hong kong. You can listen by the app, Bloomberg Radio plus or bloomberg. Com. This is bloomberg. We are calling for regulation. We are going to need stronger regulations to protect our privacy, to protect data from being used to exploit us. It has been bad to be big. Big tex is big tech is struggling. Popular. Regulation and innovation are not friends. A starter for the world is businesses building the exciting new ideas, whatever regulation there is, we would want there to be room for innovation. Shery some of our guests on bloomberg tv talking about growing global scrutiny for a big tech. Joining us now is the chief Market Strategist david garrity. Great to have you here. Lets get started. We have seen in the markets the faang stocks have been outperforming. This chart showing exactly that. Really reaching the record level since last year. All ofcontinue to hear these concerns over regulation and congress trying to do something against the big tech giants, is there a chance we could reach those levels again . You will have to have concessions on the part of company management, risk regarding facebook. Facebook raises concerns on multiple fronts including news from reuters saying facebook has been sharing data with huawei and lenovo and other oems. On users but users friends. Gets the gress gets to talk to Mark Zuckerberg and when investors do, wednesday after the close, people will be asking what are you actually doing to protect users information and privacy . The first thing facebook could do is when it comes to the next election cycle weather in the United States, they will square off political advertising. Swear off political advertising. I dont think it would be enough though. Seems like the big narrative last week was nobody really trust facebook, whether it is libra or how they handle the political election cycle. How much of a cost will this be for facebook and their business . I would argue it is raising and the of compliance cost of other forms of Government Relations going into 2020. This year facebook has been a good stock, 35 , 37 . Going forward things would be more difficult. If there was any hope splitting off libra, it is dead on arrival. Nothing is happening. The other thing more broadly, looking at the text and price action is even though we were , volumeto new highs levels were 50 of what they had been before. It is not a rally off of the earnings we see investors or the market buying into heavily. That is something that is intonary mark going alphabet results goings into alphabets results and the jobs number and the pmi number at the latter part of the week. Facebook ands of libra, how do you see the timing of this . Is it wiser to set the idea aside and focus on regaining trust . Clearly. If you want to be involved in the cryptocurrency market, you might have done better to work with a partner who has had strong regulatory relationships worldwide like j. P. Morgan. They made an announcement in coinary this year, the gpm which is seeing adoption from a wide range of banks and financial institutions. Paul in terms of the tech sector, how much do you feel the companies that have complex supply chains . David announcer we only started hearing the noise about the trade war in the last 12 or 15 months. You cannot realign Global Supply chains in that short a time. There is an impact relative to cost. I would argue that is how things have played out. Bruntrands have felt the of that including chinese consumers pushing back. There is a cost hit and revenue hit. Shery we see Corporate Cash flows at a time when we continued to see the fears of recession. Flows are fairly good. One thing we start to get concerned about looking broadly is looking for triple and double b spreads. We have seen substantial buildup in corporate Balance Sheets using highyield debt. What has come out recently is an article saying the Credit Rating agencies in the u. S. Have started to become easier in terms of the terms of highyield issuers which starts to raise the question, risk being mispriced . Reddit rating agencies not doing their job, didnt work out well in 2006 and 2007. Shery something we have to watch closely. We see fears of recession and the fed cutting rates. ,avid garrity joining us today the chief Market Strategist. If you missed any part of this conversation, tv is your function. Catch up on past interviews and watch us live and dive into the functions or securities we talk about, become part of the conversation by sending us instant messages during our shows. This is for bloomberg subscribers only. This is bloomberg. This is bloomberg. Quick check of business flash headlines. Indian bank stocks in focus later after this bank posted lower than excited secondquarter profits because of a onetime income tax adjustment. Net income fell 28 . On friday the state bank of india jumped the most in a month after it posted a bigger than expected secondquarter profit to 424 income tripling million. Paul china is allowing unsure investors to buy dual class shares in hong kong. This rule goes into effect monday giving access to the likes of xiaomi and others through the Stock Connect Program between hong kong, shenzhen and shanghai. The latest move from chinese authorities to find ways to keep Tech Companies and home. The newing the york debut of its education arm. They rivaled with rising content costs and will compete with Tencent Music which raised 1. 1 billion in the december ipo. We will get all of the action on daybreak asia. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Good evening, i am paul allen in sydney. We are under an hour away from the market of it in japan and south korea. Shery welcome to daybreak asia. Shery. Paul our top stories this monday the biggest political xiding in china as president leads the coming disparities communist parties. Be prepared for nega