Serious. As a result, risk off. Investors launch into haven assets, golden treasuries. Will we breach the record high on the u. S. Tenure 17 . President trump heads to texas as Tropical Storm harvey is set to make a second landfall. Both saying it is too early to assess damage for how high will outnumber be. That number will be. An hourss than half from the european open and what futures are pointing to, obviously we are seeing red arrows across the board with euro stoxx 50 futures dropping about two thirds of 1 , ftse futures also right there. Forre looking at the same futures across the entire european spectrum, at least the major equity indexes. Are fleeing to risk assets, i have been keeping my eye on the risk assets all morning long. Just to see how seriously the market takes this Missile Launch. It is very interesting to try and figure out how much of this is priced in already and how much concern the markets will show. Guy end of month, you have to factor that in. Ome window dressing going on there has been a Market Reaction, but i dont take it has been that substantial. Markets pricing in what is or hasng in north korea, already. Equity markets in asia are softer. Australian market down by about 1. 7 . Gold miners are recently well bid. Keeping an eye on poly metal, the russian ruble affecting its story. , up by. 3 n bid despite the fact the missile went over japan. Gold is probably turning out to be a better risk off asset. You can see that, gold up about. 6 , trading strongly this morning. Copper strongly bid, trading up by 1. 73. , yen, the usual story in terms of the risk off kind of trade. When i am watching today is to see where treasuries break, higher or if the bid pushes us below 2. 1 on the yield. Data coming out this week about the united states. Here is the bloomberg first word news update with juliette saly. Tropical storm harvey has drifted back into the gulf of mexico and is poised to recharge before crashing ashore again tomorrow on the texasthe louisiana border. Inundated yesterday and with an estimated 20 inches of rain still to come, predictions at the cost of the damage range as high as 100 billion. U. S. Gas prices are Holding Gains with as much as 30 of the refining power of the nation under threat of flooding. In the u. S. , donald trump addressed a proposal to build a hotel and condominium tower in moscow on three occasions with his companys lawyer. Told the House Intelligence Committee the Trump Organization weighed the trump tower moscow proposal from september 2015 to january 20 16. He also said he enough the press secretary for Vladimir Putin to ask for assistance on the project. The eu chief brexit negotiator has accused the u. K. Of not seeing serious about its withdrawal from the block and called on britain to be more clear about its position. Michel barner spoke as the two sides opened up a third round of talks in brussels. He announced pressing frustration at the progress so far the u. K. Leaders summit eight weeks away. To be honest, i am concerned. Time passes quickly. I welcome the u. K. Governments paper, and we have read them very carefully very carefully. Andwe need u. K. Positions to makeration issues significant progress. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Juliette, thanks very much. North korea has fired a missile over japan, reigniting tensions after a war earlier this month between pyongyang and the united states. South korea has promised a show of force in response and japans Prime Minister shinzo abe spoke with President Trump by phone and described the launch has unprecedented. The government followed the missile from its launch and was completely aware of its trajectory. The safety of the people was our main concern. This act poses a serious threat to the peace and security of the region. We have launched a complaint with the north korean regime and have also asked the u. S. To convene an emergency meeting of the can Security Council to ask the International Community to put pressure on north korea to cease its publication. Provocation. Matt joining us, Mark Cranfield, mliv strategist with reaction. Brian, let me start with you. How have japans leaders reacted to this provocation and what is the mood light on the ground . How are worried are people waking up to a Missile Launch . Brian i think people have calmed down by now. There was a little nervousness in the morning, especially in hope haida where people were wakened by alarms and sirens at don. The government has solved to assure citizens that it is aware of the situation, it made a decision not to shoot the missile out of the sky because it determined it was not headed but ill bets point is it could have if it needed to. It is also trying to assure people we are on the same page with the u. S. And south korea, in touch with leaders. We had the meeting between mr. Trump, and the government has also stepped up pressure on china and russia to take a greater role in trying to tame north korea. We have talked about the Market Reaction and there is a little bit risk off vibe in the market. Shouldeless, the market have priced these kinds of events in at this point. We have seen a gradual escalation of the story, the fact they are fired a missile overland represents the next phase in this saga. Mark december extent, you have to get used in effect at Missile Launches dont have a long impact on the market. That is partly why you dont see a huge reaction. The timing of this one just before the start of asian markets today did causing caused a bit more vulnerable. It popped the Foreign Exchange market essay asleep, dollaryen dropped a lot, the usual grab for gold in u. S. Treasuries. Unwound, itletely could be people are waiting to see what stance the United Nations take later in the day. Guy interesting to see how this ripples around. Brian, what do we know about the missile . Makes this one different, in the past, north korea has fired rockets over japan on several occasions and in those cases, they were always supposedly carrying satellites into orbit. In this case, you have a mid range Ballistic Missile designed to carry a nuclear payload. That is a first. We also believe it was fired from the town that has pyongyangs international airport. There is speculation it may have been launched from a mobile launcher, from a runway, it would mean north korea has the ability to fire missiles anywhere in the country if they loaded on the back of a truck. Thing, this missile was not lofted. It was a much lower out the dude. In recent Missile Launches, this theyhe 13th this year, have been lofted to avoid air space above the countries. This, they chose a different tack. A lot more per doc provocative memo we have seen. We do see a fairly muted reaction in markets and we havent really seen a reaction from the u. S. Government. But i cannot believe people have gotten used to this. Japan says it is an unprecedented situation, meanwhile you have got an incalculable president in the u. S. , dealing with an incalculable dictator in north korea. Why arent people more worried . You just put your finger on it. The peak thing that most concerns people in this part of the world is what the reaction will be from washington and believe me, we have been watching twitter feeds all day waiting for that 3 00 a. M. Moment of inspiration in the white house. And that is it yet what we are worried about. Everyone in this side of the world wants some sort of peaceful and calm response that at least leads to dialogue at some point. Maybe not right away. The first step is an emergency meeting by the u. N. Security council. Besides that, i think it is really just a wait and see how the white house does respond when it wakes up this morning. Mark, aside from President Trumps twitter feed, what other factors are u. S. Traders going to be looking at today . There is still a lot going on outside the issue from north korea. The notably, in america, inclement weather in houston. Absolutely, and also a couple key data points this week. The inflation, one of the feds favorite indicators, followed by the jobs report friday. A bit weak, plus china pmi. Plenty of major data to keep people on their toes. Weekse leaks leading up to labor day in the united states, a day when moves can get a little out of control because there was no one around to stop it. If the treasury market is going for the two point one handle, it may achieve it because the market is thinner than usual. Thatinteresting to watch one. A lot of data out this week. The employment data, going to be moreesting to see how the nearterm, shortterm indicators surrounded u. S. Employment are affected by what is happening in texas. We will wrap it up there. ,rian fowler and Mark Cranfield you can of course follow mark and the mliv team at mliv on your bloomberg. Still to come, macrons migration summit. What was agreed at the end of a meeting of African Leaders yesterday. That conversation next. This is bloomberg. Welcome back, lets look at what is happening in europe. France, germany, italy and spain have agreed to spend migration across the mediterranean. They met with libya and niger during the talks. Workountries would together to boost the fight against people Smuggling Networks according to macron. Say this to shortterm action plan we have immediate,he most efficient answer to what we have been witnessing the past few months, which is intolerable. The fact is, certain groups of traffickers, human smugglers, drug smugglers and groups linked to terrorism have turned africa into a cemetery and the sea into a sanction cemetery are the ones linked to guy terrorism. France, the estimates pretty in line. July consumer spending, rising 2. 1 versus a year ago. Starting to get some decent data coming through from france. A monthumer spending ago is up by. 7. Lets get back to the summit. , how kernan out of paris much of a breakthrough was this meeting in reality . Call it aouldnt breakthrough, because it was almost impossible to implicate migrants through grace, because the Libyan Government is very unstable and the eu leaders know that and in fact, macron in july talked about creating hotspots in libya to protect the refugees in protested this was impossible to do because of unstable conditions in libya and the very bad conditions in refugee camps in libya. Tried to doe ecb last night was create some framework and identify with an economic migrant and refugee even before they enter libya from niger and chad, for example. This is a first step. I wouldnt call it a breakthrough because it is unclear what the zones are going to look like and how much this will cost. Macron has embarked on a big diplomatic tour. What is he trying to achieve globally . Would say it is more than a diplomatic tour, it is almost a Tour De Force for the french president to promote french interests. He had a very short summer break , and since he came back last week, he decided to meet with as many as 12 european leaders in 10 days. Tried to tackle the issue of cheap labor. Said poland did labor dumping. You had germany, italy and spain and in the next few days, he is meeting with the dutch, the belgians, the luxembourg and the greek leaders. What macron is trying to achieve role on the diplomatic stage in europe at a time when you have german in three weeks and italian elections looming next year and he is also trying to reboot his popularity back home. He has lost 20 points over the summer, his populate a popularity is now 40 , less than what the former president had at needs a period, and he fresh start because he needs to pass this labor reform. We are to have the first details the first strike on september 12 and macron wants to pass this labor reform by the end of september before the next eu summit in october. Matt caroline, thanks very much. Caroline conan in paris talking about the big summit. Polands foreign minister saying the countrys judicial overhauls are consistent with eu standards. He adds the blocks criticism of the democratic track record amounts to harassment from brussels. This comes after the European Commission sent a warning letter last month. It says polands law compromises Judicial Independence and will take legal action. We are joined now on the line. What more can you tell us about this response . At least it was made by the deadline, right . It appears to admit the deadline, though some argued it should of them piled on saturday. Nevertheless, it is there and in brussels, and being analyzed as we speak. Probably no imminent response from brussels in the next days. What younteresting is mentioned already, semantics. Language from the foreign minister, brussel amounting to harassment. There is not much new in this conflict, meaning poland is not changing its position and appears to have believe that escalating the conflict is reaping political benefits. Thinks it isrnment getting benefits out of this. What is this question mark how does this get resolved, if at all . A trickyat is question, of course. As i said, government appears to believe that escalating the conflict is building a support for its power at home. Support isnteavy declining. In the you, the dispute as fundamental value because it is about a key member, the largest Eastern European nation and it concerns fundamental values. While sanctions arent really ill requirethey w consent from all eu members, including hungary, he is not going to subsiding anytime soon. It is about building european order on consent, and both sides seem to be quite determined to stick to their positions. The thank you very much for update. One to watch if you think about the compatibility of the various eu nations right now. Lets talk about the market open, safe haven actions assets catching a bit. We will look at those and the open. Plus, we will look at what is happening with the reinsurers, Tropical Storm harvey causing more devastation. Likely cause even more after that and we will look at the numbers for them. He opened his seven minutes away. This is bloomberg. Guy weve got four minutes to go until the european cash open. A bunch of stocks to talk about. Insurers saying it is too early to see the numbers around harvey. The hit u. S. Has taken. The weather continues to be inclement in texas. We will watch what the story is going to be. You have seen the hit over the last day or so, but that is probably not this. P keep an eye and easyjet, builders reporting they will take over the asset of air berlin. Polymetal has well. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. One minutes ago until cash open in europe. My ftse is back today, but looks like we will be seeing down as well. Matt, we have not seen in new high for the s p for three weeks now. We have not seen the euro going above 124 and a while. Some tradersred by a possible reversal point. Watch this. Typically, people grab for the dollar in the yen. Very interesting to watch as we go into the open. You can expect it to drop down a little south. Stock 600 expecting to be posting similar numbers. One of the credit of things critical things is the eurodollar through the 120 mark. Of what a question level will the euro again to impact the investment. You mentioned some of the insurers. Were just waiting for them to come through. We have a conversation with royal london and he was saying these are the second time this may have only seen it on comesump victory and it now very often. Aversion. Risk you can see we are off the highs of the year. December is the front month for the market. Ec u. S. Treasury futures hit a ninemonth high. He see this overall risk aversion. ,heres a lot that has changed even though dollaryen is nor near as it was earlier in the year. Question is whether we stand or go Rex Tillerson line down the discussion road. I know you will talk more about that. Thank you very much. A mixed bag in terms of in terms of the index point of view. Jumping on wealthy running through the markets. Let me take you to the other side. And gold is trading up holly metal is up with numbers. It is up by 1. 22 . The numbers were a little bit of a next. Im looking at the eurodollar which is fascinating on its own. First time we have seated cnet since 2014. It has obviously been a while and we have been waiting for this. Point ine reversal traders along the euro, they are short the dollar anyway. You would think that Something Like a korean Missile Launch would have them grabbed four grabbedyou grab four dollars an interesting move in this parenting it is really not just a pair. We see dollar weakness across the board. What is going on here with the greenback . The u. S. Dollar under severe stress across the board. If you look at the expectations, they continue to plummet so we are off around 10 the last month or so. Think that is probably a little too low. Maybe we need to new to see better data and i think it is the past path of least resistance. We have seen the euro make good gains at the backend. Now, at least the path of 120 or 4050. Nce is before we get to your reaction to the Missile Launch out of north korea which is a substantial event, why the strength in the euro . By theders encouraged united front being shown in brussels when it comes to negotiations and is and not disturbed by the challenge out of warsaw . Iscertainly the challenge put against some of the resilience of the euro, but now at least the path of least resistance is the euro game. We will look to see that aint further demonst