Futures started dipping down. They are worried carrie lam is not going far enough. One opposition lawmaker, says. Oo little, too late another says the protests will continue because there are still four more demands. She had already suspended the extradition bill two and a half months ago. She stated steadfast in her demand of not officially withdrawing it. Why withdraw it now . We are getting much closer to the october verse day holiday in china and xi jinping does not want anything like this on the streets of hong kong marring their 70th birthday party. David terribly important. One of the demands there be an independent investigation into the situation. Where is carrie lam on that issue . Stephen that is another reason the activists have dismissed todays statements. She rejected those calls for an independent commission or an independent and query into what the activists say was Excessive Police brutality. She has already put in a framework, a panel led by the police and she says that is a framework she wants to bolster with International Participants as well. She will fully act and fully consult with the findings of that panel. The activists say how can we happilyut the complained about the place to a panel led by the police and get a fair judgment . David thanks so much to Stephen Engle for great reporting through the day and night in hong kong. Withe turn to emma chandra her own drama in parliament. How does this end today . Will they get a vote on the new legislation . Emma we should see a vote today. Mps in westminster debating this legislation, this bill on whether they can force Prime MinisterBoris Johnson to ask for an extension to brexit should he not be able to get a deal ahead of the october 31 brexit deadline. They are currently debating that. There will be amendments we will get later. We are expecting votes on this bill from about 7 00 local time this evening. We then have to get it then has to go to the upper house of lords for approval. It looks like it does have the numbers to support at their, but there are attempts to to support it there, but there are attempts to filibuster. It could take time to get through the lords. Any changes have to be brought back the commons. We could go back to this next week before it would get royal approval. After the vote in the commons, we do have Boris Johnson bringing his own motion to parliament to call for a general election. There will be another round of voting. Expect a long night in westminster. David talk about the possible election if there is a vote for it. One of the concerns is that perhaps the opposition might take over as Prime Minister. Wheres the financial and Business Community on that question . How they feel about a new election and Jeremy Corbyn . Emma it is very interesting. For a long time the Financial Markets have not liked the prospects of a Jeremy Corbyn government. He is a socialist. He believes and policies seen as very antibusiness, but we did hear from a couple of banks, citibank and deutsche bank, saying he may be the lesser evil because he said he wants to assure this legislation to prevent the no deal passes and that his policies would automatically included no deal would be better the conservative government which could be ready to no deal. We are seeing a little bit of a change in terms of what the Financial Market and the currency markets think. They were by no means certain that a general election will happen or will happen soon. Boris johnson will bring this motion tonight, but he needs two thirds of mps to bring a general election. The labour party has been calling for one, but there are political games to be played about whether or not they want to acquiesce to the request of Boris Johnson and whether it is politically expedient for them to have a general election right now. David thank you so much. That is emma chandra in london. We will be watching as this develops. Now we turn to Brian Sullivan in boston for a report on Hurricane Dorian. It was devastating what happened to the bahamas. We do not know the extent of the damage. What is going on off the coast of the United States. Has droppedns wind down to about 105 miles per hour. It is rushing by florida but we will see the largest impact in South Carolina and North Carolina overnight into tomorrow. We could see up to a foot of rain in eastern South Carolina. This is that a bad time, especially for commodities in South Carolina or North Carolina , because a lot of things like tobacco, cotton, and corn are getting close to maturity. You will have these fields with sir on the verge of being harvested hit by heavy winds and heavy rain. You would see a lot of crop damage. After that, dorian might actually make landfall in North Carolina before it sweeps up across the midatlantic and off of cape cod in massachusetts over the weekend. At this point the storm will probably turn into a hybrid, and that might bring devastating effects to cape cod in massachusetts. We might see a Strong Capital storm situation even though the storm has turned into a super storm at that point. Fascinatingmake a point. It was not larger grow we were worried about the orange groves in california, now we are worried about the crops in georgia. Any sense what kind of damage could be done . We see upwards to a foot of rain and some forecasts. Wind,ll also get a lot of which for cotton in particular is damaging because it knocks the bulbs off the plans and ruins them. It is going to be a touch and go situation through the weekend. David dorian keeps on going. Thank you very much for the reporting in boston. Ballots find out what is going on in the market with abigail doolittle. Abigial the dow, the s p, and the nasdaq all solidly higher. The nasdaq leading the way, up 1 . August range we had in that took stocks lower, continuing. Trade concerns and factory concerns, manufacturing concerns. Weighing today, investors looking past that. A little bit of a fullback for bonds, but not matching the pullback stocks. Where we have a clear rally, which was down yesterday, is oil. The intraday chart of oil is pretty incredible. Your best day in two weeks. Not on fundamental news, but this is showing you the degree of sentiments which. This is showing you out of risk assets on Global Growth fears. Today they want back in. This is influencing the sector composition. When we go to the bloomberg and use the imap, we will see most sectors are higher. 10 of the 11 sectors are higher. On the bottom, the more defensive sectors. In a funny way, that is bullish, because investors are moving away from the defense sectors because they want in on growth. Tech, energy, earlier energy had been the top sector but at this now tech and tech is an even growth your sector. As for the sectors, pdh up 8 , that is the clothing company. It is thought the ceo is buying stuff. Western digital, the price was taken higher. That is also true for micron. Deutsche bank defending micron, saying of trade eases, that should help micron. Ge up 4. 7 . Citigroup is defending the shares, saying the early stages of the turnaround promises. These are the best stocks for the s p 500 on the day. David ge could use it. Thanks a much to abigail doolittle. The fed says it is data dependent, but which data is it depending on. We talk with Tiffany Wilding of pimco. That is next and this is bloomberg. David this is balance of power westin. Am david mark Hurricane Dorian is menacing the u. S. East coast. The storm is lashing florida after ripping through the beatingin a two day that cause damage that may cost the island billions. Dorian has weakened but is still packing winds of 105 miles per hour. Forecasters say it could make landfall as a category 1 storm thursday. The European Union is warning businesses and people likely to be hit by brexit to prepare for the possibility that britain might leave the block without an agreement next week. As. Officials have released checklist for companies to use. They will minimize disruption to trade. The Commission Also wants to make Funds Available for those hardest hit by a no deal brexit. Hong kongs chief executive has made an aboutface that may help ease tensions after months of protest. Carrie lam has withdrawn legislation to allow extradition to china, but she knows that may not be enough. After more than two months of social unrest, it is obvious to many that this containment extends far beyond the bill. It covers political, economic, and social issues. Mark withdrawing the extradition bill was just one of the protesters five demands. Civilians have been killed in syria over last four months. That grim statistic provided by the United States human rights jane. Officials say the majority of the airstrikes were due to attacks by assads allies. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. Bloomberg. David . David President Trump worries about the trade deficit, but neither the tariffs he has imposed or a temporary freeze and those tariffs seem to help tariffs seem to help much in july. U. S. Trading goods with china continue to climb. This narrows the u. S. China trade deficit but remained at 30 billion. Here to take us through the numbers, we welcome Tiffany Wilding, u. S. Economist at pimco who joined us from newport beach, california. Welcome back, great to have you here. We look at the trade numbers. Do they give us any indication of how the u. S. Economy is doing . Tiffany thanks for having me. The most important thing to remember about the numbers is they happened before the most recent announcement of further tariffs on the last wrist of chinese goods the last list of chinese goods. The president announced that in early august. The most recent trade data was out of july. I think why that is important is what we have seen ahead of the tariff announcements and actual implementation is that companies have tried to frontload imports in order to try to cut down costs, at least somewhat. The most interesting trade data will be in august, and then in september when some of the tariffs are implemented, to see what happens. Tariffs are, these disrupting trade flows. We have seen a significant decline in imports as well as exports to china. The trade deficit has been much less changed. One of the main reasons for that, and it is important to remember the stuff the u. S. Exports, we have to import products and import components in order to make the things we export. It is not as easy as just putting tariffs on things and reducing imports to get growth higher. David the one thing they seem to be accomplishing is china, which had been our largest trading partner, is plummeted, it is gone down 13. 5 , whereas mexico has gone up, japan has gone up. It is hurting china in terms of bilateral trade. Tiffany thats right. It looks like we got a boost in some of the activity with china ahead of last september when the first big tranche, that first big round of tariffs was implemented. We had a boost of activity in trade ahead of that and then it appeared to collapse after. The broader trade balance and trade flows have been ok. Happening is be there is substitutions. U. S. Producers and consumers are buying goods from other places around the world, and not only china. As the costs of the chinese good increase. Just a question of how we are doing with china and trade, it is a question of how strong the u. S. Economy is. Yesterday we got a number we hope was an outlier, but it was disappointing, the ism number for the United States. We will put a chart up that indicates the ism number is correlated with jobs and employment as we look forward to the jobs numbers. How concerned should we be that this downturn in ism should reverberate into the Employment Situation . Tiffany i think we should be reasonably concerned about that. Is indicative of broader activity in the manufacturing sector. Whichlow 50, its the institute of supply management considers a contraction. If you look at the production data from the federal reserve, which we consider hard data, that has been in contraction for the last two quarters. What happens is labor markets continue to lag growth or lack activity, which completely makes sense because if you have businesses that start to see a contraction in activity, the first move they have is they cut hours, maybe overtime hours, or they stop the pace of hiring. Then, as the slow down progresses, than they actually start workers. We have not seen those pots start yet those cuts start yet. Certainly labor markets are slowing down. We are seeing that in the data already. We are concerned, this is something we are monitoring. It is important to monitor not only payrolls, but also hours worked. Businesses can reduce that as well. This all feeds back into the fed. We have heard a lot of fed speak. Than sixhave no fewer members of the fed speaking. Friday we have chairman powell speaking. What should the fed do . They say their datadependent but i am not sure which data they are looking at. We do not want to tell the fed what they should do, but looking at the data, the weakness in the manufacturing sector, the fact that that is starting to spill over into labor markets, not only goods producing sectors. Sectors and services tied to global trade, which has been declining like transport, warehousing, wholesale and retail goods, though sectors are also decelerating according to the labor market data. In that kind of environment we think it is warranted for the fed to further ease Monetary Policy. At the jackson hole symposium a ago, the kind of messages we got from chair powell confirmed they will ease by cutting the Interest Rate again at the september meeting. They did not go as far as to suggest that more aggressive steps are warranted. I think the reason for that is used of a range of views on the committee. On the one hand, you have president harker suggesting no further easing might be necessary, but on the other hand you have a reserve president who is saying a 50 basis point cut might be necessary. We think the message from jay powell is very similar to what came out of jackson hole, given these divisions. David you do not want to tell the fed what it should do. What about why . Lets talk about mr. Doubly, who has a new piece out in bloomberg trying to clarify his prior peace. This is we need to take into account the political ramifications in the trade ramifications. That does not mean we are motivated. Is that a distinction that works . Tiffany the fed has a congressional mandate at price stability and maximum employment. There is flexibility around how they achieve that mandate. There is the mandate nonetheless. Ultimately, that means other policies, other government policies, whether it be physical or otherwise, the fed has to take as a given and adjust Monetary Policy as they see appropriate. I think it is very clear cut in terms of that. Should the fed or what the fed take Political Considerations into account . Absolutely not. They are focused on the economy. David thanks so much, always great to have you with us. That is Tiffany Wilding, u. S. Economist at pimco joining us from newport beach. Still ahead, starbucks slides. The coffee chain following the most in seven months after signaling a downturn in Profit Growth. We look into why in our stock of the hour. That is next and this is bloomberg. David breaking news. Will name Ross Stephenson they will be charge of deals around the world of a shakeup of ubs bank. Ubs is down just a fraction on the news. A big shape up in the Investment Bank at ubs group. We will brave you will give you an update as it develops. Starbucks is one of the worst performers in the s p 500, dropping the most since january as the companys outlook signal a slowdown in Profit Growth. Kailey leinz will explain it. Kailey starbucks is saying into 2020, Profit Growth will be below the 10 plus range it has been in. They are not signaling any macro headwinds, basically what they are saying is it is because of one of things that will end in the next fiscal year. One of them will be a tax break that will end in october. They are also normalizing their share buybacks so you are not getting the consolidation that is boosting eps. That is why you are seeing the stock, the lows as investors realize this is major this is not major headwinds, but the stock has run up 50 and you are seeing a tinge of prepricing. David it sounds a little like timing. They have two big pullers, United States consumers and china. Does it tells anything about the growth in china Kailey Kailey . This forecast seems to be separate from that. They are still competent in their forecast to focus on those categories and focus on china, where theyre opening a store every 15 hours. They want to have 6000 sites by 2023. They are focusing on the expansion and they saw strong samestore sales in china. Not much of a signal that will change. You have to keep an ion trade, the chinese economy, the chinese. Onsumer david nothing like getting one point one billion chinese to switch from tee to coffee. Be sure to tune in tomorrow with my interview with kevin johnson, starbucks ceo.