Performing. The s p lower after this data, now close to 2900 down three quarters of a percentage point. Most all company hills ,ompanies are alloy lower the 10 year yield down to 1. 46 percent today, oil and gas index the worst performer in the index. The dollar index had been exceptionally strong, still strong, having an impact on some other indices as well. Yuan, and a lot going on in britain, we are waiting for Boris Johnson. Absolutely. European equities are low as a result of that ism, and the big story over here will be what is happening with the pound continuing to sink a little earlier on fears about a possible general election. It bounced back a little bit, but nevertheless the outlook at the moment looking distinctly to the downside for the pound. We have guilds trading with a 38 basis points, amazing to see all this happening, some suggestion that they could even go negative in the event of a no deal brexit. Its all about the pound. Weve still got the italian situation developing, but frexit dominating the story here in europe. Boris johnson gets going with his speech and the question, the rebels trying to stop what is theening, which is beginning of a new parliament, and there are several options on the table. None of them particularly good. Guy no. Talking atl be around half past, and i dont think it will be just on the g7. I think he will address the issue of exit. What will happen today is the mps that are opposed to the hard brexit will take try to take control of the agenda, and if they succeed, Boris Johnson has said that he will call a general election, and that will probably happen in october. We will see these mps taking control of the agenda tomorrow and then push through an extension to the process into january, excusing assuming johnson cant get a deal, and then he will try to dissolve palma parliament and try to get a general election. Out that we are in a situation where johnson tries to call out the general election and does not succeed and has to go down other routes to try to make this happen. It is complicated. The market is basically pricing in the idea that we are probably heading for general election probably at the start of october. A for johnson it is sort of winwin situation because he has promised brexit one way or another and he has promised to renegotiate with brussels and they have even said that we are not doing any renegotiation, so johnson one way or the other is going to deliver on his promise. It may mean he is out as Prime Minister but he will still be a member of the conservative party and may go on to some other kind of career after this is over. Could end up being the shortest serving mp in history if he loses the election at the beginning of october. That is not his aim. He hopes that the polls suggest that he can generate the majority. At the moment he only has a working geordie of one, majority of one. If he were to be able to get a majority of 20, which is not inconceivable, then maybe he would be able to go back to brussels and renegotiate fit his problem is he has the boxes brexit party saying we are going to try and undermine your chances of succeeding if you dont to commit to a hard brexit. He does not want to go to that. He still says my first choice be a negotiated deal, but if we cant get that we would leave. With a that would be deal and potentially without one, but we are now getting to the point where only the general election would make him able to do that. We are in a difficult situation at this stage. It does seem as if the announcement this week may be just as a reaction from the rebels from what he did last week. It is a very chaotic situation. Vonnie the big story dominating the market is trade with chinese and u. S. Officials trying to agree on a schedule for talks aimed at attending the trade war. Its not clear that the impetus is there to end it. By a strategist in florida. What is your best case right now with the president of the United States talking about the election and how the chinese might have to deal with a new administration . Good morning. I think the markets are probably going to keep grinding as they are. As far as trumps comments today, i think he is putting that posture out there, played nice a few times and it has not worked out in his favor. I think hes committed to driving this home through 2020, through the election, so that is how we are playing it right now. Tonie are you adding positions in equity markets . Brett we just sent out communication to all our clients that we are holding the line as far as portfolios are concerned. In light of this escalation we not a goodt would be position right here to react too much to the tweets and over position ourselves into these defensive areas. We will hold the line, looking at the small midcap value areas as a safe haven where there is Great Companies in their, and all of the money recently here in these markets is really crowding that largecap passive 18 bath etf exposure. Treasuries had the best month last month since 2008, any reason why you would sell out of those positions . I dont know if we would sell out of anything right here. I think we are holding the line. We are looking forward for new opportunities in that small midcap area, but i will tell you something, and the last 45 days or so, some opportunities are out there in the mortgage ,ates with this inversion curve some opportunities and deep value opportunities per we are looking at areas like that. Vonnie one of the questions what are the questions youre clients are asking . Brett we been getting a lot since the beginning of august about recession, is one coming . Clients, nobody can really tell you when a recession is going to come. There are some indicators that are pointing towards potential recession 18 months, maybe 14 months out. We are holding the line right here and we dont necessarily know if even a trade deal could stop a recession. We certainly dont know if the Federal Reserve would be able to stop a recession especially after some of the comments that they dont even want to react until they see cracks in the labor market, which is concerning. We call that too late at that point. We are holding the line here until we feel uncomfortable that this trade war is not going to be resolved. Are we going to see a situation where the weak manufacturing data, the trade situation is going to lead into the u. S. Consignment Consumer Confidence story . It looks like it is becoming fragile. Is the consumer going to start to look a little bit more fragile and if it does with that cause you to reposition . Brett we have seen exhaustion with the markets dealing with it ishina trade war, but a concern that it spills over knto the consumer we got a wea number last week where Consumer Confidence dipped. The retailers out there are reporting a lot of strength with the consumer. We got a big number coming out this friday with the jobs number. We will see if the jobs market holds up, and we will take it from there. Thank you for your time here today. A bloomberg first news update. Coast iss. East bracing for hurricane dorian. The storm has been downgraded to a category three but wind is still at 125 miles an hour. Dorian has started to move towards the northwest that could bring it close to florida tomorrow. The death toll is rising from the fire off the coast of south california. The coast guard said at least 25 are killed and nine others missing. Five of the six crewmembers survived. The fire broke out while 34 people were sleeping below the top deck. That kimea reported improvings improving his arsenal. President trump has downplayed the text. Kong carrie lam denies she ever asked china for permission to quit over the protest. She also denounced a remark she made last week, and she said she tried to explain privately that it would not be an easy choice for anyone in her position to leave. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 this is bloomberg. Vonnie thank you. Headlines, according to people familiar with this matter, aramco fixed top banks for its ipo this week. It is also inviting pitches from saudi banks later this month considering structures for its ipo, no final decisions have been made according to people film a year with the matter. Finishing up a week of pitches that started last tuesday so we should have those banks later on this week potentially. Coming up, a dealmaker makes his first big deal with a new company, and he joins us to tell us all about this new deal next. This is bloomberg. Vonnie from new york, im vonnie quinn. Im guy johnson. This is bloomberg markets. Lets turn our attention to what is happening here at westminster. By a conservative mp, and i think we can describe brexiteer. D it looks like the Prime Minister will lose the vote today in which mps are likely to take control of the agenda tomorrow. He said he will call a general election after that. Is this really the only way to break the deadlock . We have a day she called me a hardcore brexiteer, and we have a hardcore parliament which is seeking to delay the outcome of the referendum result they want another extension to the 30 first of january. We have seen the impact this is having on our International Reputation and starting to see the impact on any factoring, and it is a serious issue. Most of my constituents are telling me just get on with it, leave on the 31st, deal or no deal, and that includes companies that export a lot of equipment to the European Union. They want a certainty of britain pulling out of the European Union. If these people want to take us on, and they went to fort the Prime Minister, he is the team facing going into bat the first balls from the European Union and these people want to break the bats, people always have the chance to take the first shot. putting cricket aside you dont play cricket in america, do you . Guy lets talk about whether or not a general election will resolve the issue. Do you think it would be deliver enough certainty for the Prime Minister to be able to deliver on what hes promised . I just came back late last night, summoned by my local party for election landing strategy, and we expect the election and october, if not in october in november. We want one. I think this is the most incompetent parliament certainly that i have come across in my years as a member, not inspecting the will of the british people and we need an election to break the gridlock that has developed in our country. It is very debilitating and disconcerting and embarrassing for the united kingdom. Many of my International Friends say, what is going on . Why cannot you resolve this issue . Its detrimental to our reputation. We need a general election. It is a risk. We could lose and have another Hung Parliament but i suspect the british people will rise up ,nd vote for Boris Johnson people the majority of expect a result and understand the importance of delivering it. 1975,ime when we lost in they had to wait for 40 years before they could go back to this issue with these people are tying to overturn the result just after three years. Want to stall that situation for each losing side demands a referendum. That would be destabilizing. Usa, markck in the franklin makes his first deal under his new company j2 acquisitions. He and his team have a deal to twoa pipeline company, point 9 billion. Now on the phone, and we also have had hammond. Let me ask you first, why this particular deal is the first deal, why this . Well, the first thing is its good to do a deal in the United States, with all the uncertainty that is going on with foreign currencies and trade wars, et cetera, buying centric, that is u. S. Thats sort of hits for us. We have been looking for a company for the last couple of years, not only fits from our valuation perspective but also checks the boxes on priorities for us, so this is our kind of business. In its sector. Se it is a leader. Awaybusiness is by far and a leader in the u. S. It is a Growth Business in terms of multiple avenues for growth, a lot of acquisitions, its got a great management team. Is a Great Foundation platform to build off of, which is why we did the deal. Macro is there any strategy here, buying a company like this because you think there will be an infrastructure plan and eventually in the United States, or purely a fundamentals acquisition . Martin i dont think we are relying on an infrastructure build or anything like that to justify transactions. Stacks up well against our comps. To the extent there is infrastructure initiatives taking place in the u. S. And inrybody knows the u. S. Is need of a lot of that kind of investment, that would be a tailwind for our business. That is an upside for us that we would enjoy, but for us it is a play. This company has 15,000 talented workers and this is a play on the macros for the u. S. Talk about the rta, when i thinkself of you guys i think of dealmakers good at acquiring companies in building these come gone lets, conglomerate s, but what do you ring to the team for this company . Martin its complement or to what we know how to do, but if you look at what they have done, its been on a small scale. They built this business, but its been multiple small acquisitions. I think we can help them in the coming years looking at larger combinations, so we would love to scale this business, if you recall jarden started off with a business and ended up with a 10 and half billion dollar business, and we have the same ambitions here. We are in it for the long term, if it will take years, we have to do have have to have this company well positions before we take those kinds of steps. This has the potential to be part of a larger group than today. Fromat is the feedback calls from this morning . This could take some explaining because it does have a diverse portfolio of assets. Martin weve got some great a lot of how to define a type of calls per there are many deals in this market like this, and Everybody Knows what the comps mean and there is a pretty good spread between how we are buying and where we think it should trade as a public company. It was worth waiting for for us, and we will have the opportunity to go out and see investors in the next couple of weeks to give people much more color on our goals with the business. It has support. Vonnie this particular transaction, it is seeing funding through a mix of cash and so on, how much power firepower is left at j2 acquisitions . What else do you have . Martin we are bringing in about sorry, if i understood your question, if you are asking about j2 acquisitions, we are going to be conservatively levered. We are going out to see we have had this in previous vehicles, and as you know i have done transactions with these vehicles over the years and bringing the warrants eliminatingor overhang in the future and to provide Additional Capital to keep a conservative posture so we have more capacity within a short amount of time. Our intention is to go out and do the same here. That will bring in another 300 million on top of the 120 or so dollars that my partners and i are contributing. Ask, thist to portfolio of existing business that you have financed in some have sprinkler systems and other businesses, what is the commonality bear . Is it Purchase Price or is it something underneath it all that links them . Martin not at all. It is not Purchase Price. Thats just an entry point. If you bought the wrong thing, it really doesnt matter what the prices. If you bought the right thing sometimes it doesnt matter what price one pays. I will tell you for us the , we back Good Management organization, businesses that are around for a long time, businesses that are amazon proof. Im trying to build longterm value. You for joining us today. Congratulations on the deal. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Guy from westminster, i am guy johnson. Vonnie from new york, i am vonnie quinn. The cohead of Global Securities is leaving according to the wall street journal, and he has also known for being a Technology Person at goldman sachs. He has spoken in the past about the feds making cryptocurrency wants perhaps consider to be a contender for the ceo role is actually leaving the company cohead securities at goldman sachs. That will lets get a check of markets now. Starks stocks slip across saw most, in asia we indexes close in the red, stoxx 600 down by. 6 and the s p down close to one percent. In the red for the first time in four sessions and being let down by energy and industrial stocks. Geopolitics at the big market driver, ongoing trade war and we are hearing that u. S. And china is struggling to find a date for the next set of talks. In Europe Brexit is ramping up which means if we switch the board can see the pound is the big story in europe today. Firstg below 120 for the time since 20 17 actually hitting a 2016 low. Some showdown between the government and the cross Party Coalition who opposed that no deal. That means that is where we are seeing global bonds rally, and we are able to see that gilts are tapping higher and we have treasuries, yields falling in the u. S. Once again. Quick look at some of the movements for you in the u. S. , bowing down, also a patchy down, look at that some 3. 5 a report in the wall street journal that the return of the 737 acts could be delayed again. We heard that revenue was down, gaming revenue was down over the weekend. I mention Energy Stocks leading the way lower on the s p 500, to you. Its time for a bloomberg exclusive. A new ceo, and also they will have a new boss of the business. He spoke to bloomberg. The actual headcount is around 600 worldwide and i think we will have to build this up a w obviously i think this is clear, fundraising, so we will have to go to the market and show what we have. It is unfortunate to have to say this because during the last two years, if you heard about faraday it was mainly about the challenges, at least thats what i heard. If you come here, and have the chance to see it today, theres so much substance here, it comes to technology and to the business model. This is what we have to communicate and make people understand that this is the most advanced companies of all of those companies. Fundraising,t up what is that situation . What funds do you need and where are you going to get them . Thats a good question. You have to understand what is going on right now in the capital market. Anothernow that i built Company Three years Boris Johnson, the Prime Minister. United,w that we are and i want to make a statement about the g7 summit. As i speak, best tracks of the rain forests is in fire on retreat,ld trade is in our oceans are being valley polluted polluted, and it is more important for us to use our voice as an agent for change and progress. Up our valuesk and beliefs that we can create the International Context for britain to prosper and make sure that this is the greatest space on earth to live and start a family and trade and invest. At the g7, i made the case for free trade as the engine of that hasy and progress lifted billions out of poverty yet the reality is that trade of the World Economy has been stagnant. In the declaration the g salmon endorsed open and fair World Trade Department determined verymplify rickets barriers. Reglet tory barriers. Britain is on the verge of taking back control of our trade policy and restoring our independency for the first time and 46 years. Exports to the united tes, i wish order. Order. Resume your seats. Order. Order. I asked the house to have some regard to how our proceedings are viewed by people outside the chamber. I will always facilitate the expression of opinion by this house. Order. Meanwhile, the Prime Minister is making a statement, and that statement should be heard, and he will be heard as well as will every other member, and of subject. Prime minister. Mr. Speaker, on the verge, and we could achieve even more in our trade with the United States by using the powers we will regain to do a freetrade president al in which trump and i have agreed that the nfh is not on the table, and unlike some in the house i consider the United States to be a natural ally. And of course for good in the world, and i recoil from the mr. Le antiamericanism speaker, i know the whole house will share my concern about the gravity of the situation in hong kong. As a nation with a deep leave in expression of freedom, we stand firm in upholding their way of life, guaranteed by one country and two systems. I welcome the unwavering support of my g7 counterparts on this matter. This could be the forefront of a new campaign to end the tragic loss of species around the world. We cannot bequeath a the tiger and the African Elephant and other systems live in the shadow of destruction, so i am delighted that the g7 accepted u. K. Proposals for more ambitious targets to halt and reverse the loss of biodiversity. That is responsible for 2. 6 quit two. 6 million square miles of ocean, and our Blue Belt Program ensures that marine protected areas encompass one. 5 million square miles, and i announced funds for this vital effort, and i also announced another amount to protect the rainforests in brazil where 40 1000 buyers have rage so far this year, more than twice as many in 2018. Written is getting to host the Climate Change conference next year. If we succeed, we shall focus on solutions that harness the power of nature including reforestation, and there is one factor about all of those major to prevent all those issues, and that is thering that every girl in world receives the education that is her right. That would not only eradicate illiteracy and reduce population pressures, it would strike a blow for morality and justice and therefore in dois endorsed the u. K. Campaign for 12 years of quality education for every girl in the world. I suggested new funding so that these children in countries formed by conflict where girls are twice as likely to as boys to be out of the classroom get the chance to go to school and is well as my g7 colleagues i was delighted to meet other who i was struck by my colleagues to strengthen my their relations with this country whether on trade, security, science, and technology. Mr. Speaker i was also able to use the g7 to followup i conversations in berlin and chancel chancellor askel on brexit as well others. To othernce spoken leaders and i was able to make clear to them all that everyone in this government once a deal. Wants a deal, but it is the reality that the agreement was rejected. T is why order. I look to you as a distinguished elder to set an example of good we need thed now calm of the house. Am setting outi our arguments by any future agreement must include the abolition of the antidemocratic backstop. Which is by the way we have also been clear that we need changes to the political declaration to clarify that our future relationship with the e. U. Is based on a freetrade agreement and giving us full control over our regulations, our trade and foreign and defense policy. This isra tory is making it more straightforward in the last few weeks i believe the chances of a deal have risen. This week we are intensifying the pace of meetings. Our european friends can see we want an agreement and they are beginning to reflect that reality. President macron said, and i mr. Speaker, they do not want to hear these words. They dont want to hear about any progress we might be make it ming. Order. I want to hear everything said. Order. Order. I never had any difficulty hearing the Prime Minister, but it it is necessary for him to speak up, i am certain order. Order. I am certain he will overcome his shyness to do so. I think they are closing their ears to reality that our friends and partners are increasingly seeing the possibilities of an agreement. I quote president macron, if there are things he did that was part of negotiations that can be adapted are in keeping with the objectives i have mentioned, things that we all support, we should identify them in the coming months. Is that that negative state . No, it isnt. And speaking of berlin, the onceellor of germany said we see a possible outcome, this could be a possible arrangement. This backstop is a place holder which is no longer necessary, and that is a positive thing, which they are not hearing on the others of the house today. There are indeed solutions. They do not want to hear about solutions. They dont want to hear about solutions. They do not want to hear about any practical arrangements to avoid anyone putting infrastructure on the irish border. Say these could involve measures such as transit andisions, frontier zones, many others. Recognize , we and i advised these members to Pay Attention to what is being said. We recognize that for reasons of agriaphy and economics, across island of ireland. We are recognizing this reality providing it enjoys the consent of all parties and institutions with an interested we also are discussing it with the e. U. And i will be discussing it in dublin on monday. Mr. Speaker, it is simply wrong to say we are not making progress. There is a lot to do in the coming days as things are moving. A major reason for that is that everyone can see that this government is determined to leave the e. U. On october 31, what may without a deal if myessary for that is why friends have been leading the efforts to accelerate our National Preparations for this possibility. We will have a statement on that subject shortly. Has made all of the necessary we have already reached agreements with our partners to rollover trade deals of exports and imports and secured Services Agreements around the world. We have increased the capacity bolstered our capacity and worked with detail to ensure the supply of critical goods including medicines. We will be ready. We will be ready. Mr. Speaker, i returned from the g7 with momentum in these discussions. Return from the next deal thatsel with a this house can debate and scrutinize and endorse in time for our departure on october 31 good mr. Speaker, there is one step that would jeopardize the progress that we have made in the g7 and around the capital of europe. That is if this house were to decide that it was simply impossible for us to leave without a deal. To make that step illegal, to force us if thats what they , to force usrmine to beg for yet another delay. If that happens, all of the progress we have been making would have been for nothing. Yesterday at mr. Speaker a deal was published, a bill that the leader of the opposition has spent all summer working on. This is not a bill in any normal sense of the word. It is without president s and our history, it is a bill that if passed would force me to go to brussels and beg an extension. It will force me to accept the terms offered and destroy any chance of negotiations. Indeed it would enable our friends and brussels to dictate the terms of the negotiation and that is what it does. Theres only one way to describe this deal. It is jeremy gordons carbons surrender deal. It is jeremy it is Jeremy Corbyns surrender deal. It means running up the white flag. Toant to make this clear, everybody in this house, there are no circumstances in which i would ever accept anything like it. I will Never Surrender the control of our negotiations in the way the leader of the opposition is demanding. Mr. Speaker, mr. Speaker order. However long it takes, the statements will be heard and the response to it will be heard. That is the reality. We promised the people we would get brexit done. We must do so. Enough is enough. The country once this done and they want the friend him respected. We are negotiating a deal the referendumts the done. I am confident of getting a deal, and we will lead by october the 31 and there will be no further pointless delay. Never befores voted to surrender such a crucial decision to the discretion of our friends and neighbors overseas. What this deal would mean, unless we agree to the terms of our friends and partners, they would be able to keep us in the e. U. For as long as they want on their terms. I urge that for this house to reject this so we can get the right deal for our country, deliver brexit and take the whole country forward. And i commend the statement, mr. Speaker. Order. The reason they vote on the bill, there is a vote for a motion, and i say this simply because these proceedings are important, and im sure everybody on all sides of the house will recognize this. Corbyn,ition, jeremy thank, thank you. With him in recognizing the great human suffering of world war ii, the bravery that took place during that war in that awful conflict which began 80 years ago, but was essential in defeating the disgusting ideal aji of the net ideology of the nazis. At the g7,eetings the Prime Minister struck a optimistic note saying the chances of a deal were in his words in probing. His optimistic were improving. His optimism was not shared by those who were at that meeting. Jeremy corbyn, wild boars johnson was speaking, the house changed quite significantly. This morning johnson had a majority of one. During his statement and mp from the soviet party walked to the other side of the house and joined the liberal democrats, 1 to 1. S him from ideacan only hasten the that may be a general election is forthcoming. Lets get a sense of what is happening here and get a sense of what happened during that statement. Emme joins us from london. What did you make of what just happened . It, almost the biggest headline came from outside of that speech when we saw the government losing the majority across the floor and joining the liberal democrats in terms of what was happening while johnson was making his address to parliament. First of all it was an extremely raucous house that we saw, but i thought it was interesting how vigorously Boris Johnson denounced this motion from that cross Party Coalition of and some mpss within his own party to take control of the agenda. He used a pretty expressive term calling it Jeremy Corbyns surrender bill and saying he would Never Surrender to the European Union and the way that this bill as he put it encourages him to. He says it takes away his negotiation power if the prospect of no deal is taken off the table. That is what he was very forceful with at the end of the address to the house of commons, take the u. K. D out of the European Union, what may on october 31 and that he would never accept his hands being tied in terms of not being able to perceive a no deal brexit if thats what he considered to be the only way to get out of the European Union by october 31. You mentioned that as well, with the change in arithmetic with the strength of what Boris Johnson just said there, the prospect of a general election is more large. Defection, which had been anticipated for quite some time, reddening since Boris Johnson became leader, threatening since orens the factecame leader, that this has now happened and she makes a general election more likely and this perhaps is 120the pound has been above since this incident happened. It makes the general election likely and you could argue that given that bourns johnson promised to deliver brexit one way or another that a general election is more in his interest. This could be playing right into his hands even if it means it is to scale. True,t would certainly be this tips the scale in terms of a general election. We know worse johnson to be an extremely competent campaigner. If he says he does not want a general election, there are many people that he that thinks he would relish the opportunity to go back to the country and campaign. Idea of his winning in a general election, i suppose that is the concern that he has a mandate for no deal, and of course we know the markets dont like that prospect. Wille coming up, we speaking to a currency market expert, and he will be at westminster with the guy and we continue to follow the moments deciding the next step in brexit. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is 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. Click, call or visit a store today. In theinutes left european trading day. I am guy johnson. I am vonnie quinn. This is the european close on bloomberg markets. Take a quick look at the pound. It has been all over the place during the session. We saw the pound trading below 120, we have moved back above it. Johnson losing his majority in the house of commons. He started the day with a plus one and now has a number of minus one as a result of mps defecting to the liberal democrats. This increases the chance of a general election. Vonnie in the u. S. The is the isnfeature manufacturing data, below 50 and many elements were poorer than last month