No more work for wework boss adam neumann, he is quitting a ceo saying it is in everyones best interest. Kathleen lets get a quick reminder of how u. S. Stocks ended the day. It was all about politics. Geopolitics. The dow jones losing a half percent. S p 500, nearly a full percent. Drop pointl, the 10 in Consumer Confidence in the u. S. Our people worried about the trade war . Yes. Donald trump increasing the downward pressure on stocks when he gave his speech at the u. N. General assembly and started talking about wanting free trade, reciprocal trade with china. Criticizing him for heavy state subsidies and more. Social media platforms that hit the tech stocks, stocks across the board. Bonds down sharply. Tuesdays market volatility came to a head when news of nancy pelosi would launch a formal impeachment inquiry as she made that official moments ago. Speaker pelosi the actions of the Trump Presidency revealed of the president s betrayal of his oath of office, betrayal of our national security, and betrayal of the integrity of our elections. Therefore today, i am announcing the house of representatives is moving forward within an official ms impeachment inquiry. Paul Congress EditorAnna Edgerton joins us from washington. We are awaiting word from House Minority leader Kevin Mccarthy at any moment. As we wait on that, what is the latest and what has been a very busy day of developments . Anna the latest is the announcement from nancy pelosi. We are trying to figure out how different this will be from what they were already doing. There are six house committees already invested getting different aspects of the trump residency including his personal finances, business dealings and associates. Now that Speaker Pelosi has said they are doing these formal impeachment hearings, it is unclear if that will be a continuation of what committees are already doing orbit moves into a new phase. We will be looking for if this ends up in a house floor vote. The house will be gone for two weeks for a two week long recess. When they come back, some movement on whether or not the full house will vote on articles of impeachment. Kathleen this gets tricky to watch if you are not in washington and not doing what you do because we know the dish very chairman in the house jerry nadler has said his panels inquiry is an impeachment investigation. What has nancy pelosi done to really step this up and move it forward . Anna it was confusing to watch in washington as well. Some of the semantic parsing has been difficult because they have been giving mixed messages. Nadler has been calling this a formal impeachment proceedings. Other saying it is an impeachment inquiry. The basic line of reasoning is you have to conduct the investigation to know whether or not you have the material to backup and impeachment. The Real Movement is a political position for nancy pelosi. She is getting out in front of this in a way she has not before , for she was urging caution saying we have to follow the facts and bring Public Opinion along as we proceed. Now she is saying this is a formal investigation like chairman nadler is already saying. We expect to see a bit more Political Support for this process from the highest ranks of democratic leadership. Kathleen one of the reason she held back, they look back in history and see when impeachment proceedings against former president bill clinton that it seemed to help republicans in their subsequent races . Anna when pelosi first started talking about appeasement, she had aligned that you should not impeach for political reasons but you should not impeach for political reasons. Kathleen that is a good reason for me. Anna edgerton, thank you for joining us. We are now hearing from House Minority leader Kevin Mccarthy in washington. They have been investigating this president before he even got elected. They have voted three times on impeachment on this floor. Word they voted before one the mullah report came back Mueller Report came back. Our job is a serious job. Our job is the focus on the american public. Our job is to make tomorrow better than today. Our job is to legislate, not to continue to investigate something in the back when you cannot find any reason to impeach this president. This election is over. I realize 2016 did not turn out the way Speaker Pelosi wanted it to happen, but she cannot change the laws of this congress. She cannot unilaterally decide wan impeachment inquiry. What she said today makes no difference on what has been on. G it is no different than what nadler is trying to do. Its time to put the public before politics. Thank you. On. It is no different than what kathleen House Minority leader Kevin Mccarthy responding to House SpeakerNancy Pelosis decision to move ahead with impeachment proceedings against President Trump. Mr. Mccarthy saying we have already voted on this three times. Once even voted before the results of the Mueller Report came out. Nancy pelosi, saying the election is over. Anna edgerton, our washington Congress Editor. Very brief statement. He made a point did not care to elaborate. Is there any reason . Anna exactly like we were discussing before he came on. We are trying to parse the semantics about this. What about pelosi said today is different from what the house is already doing . They have these Committee Investigations open. Pelosi even set in her remarks that we have these six committees working on this. That is mccarthys point. They have been dragging out these investigations, as he characterized it. Until they have an actual vote on the house floor, this does not count as formal impeachment proceedings. He seemed to hone in on the procedural element of what counts as impeachment and what is not quite yet and impeachment process. Paul all right, Congress EditorAnna Edgerton in washington. We will have plenty more on that developing story throughout the morning. For now, lets see how things are shaping up for asian markets. Lets go to Sophie Kamaruddin in hong kong. Sophie we are bracing for a down day for asian stocks in u. S. Futures are dodging with Parliament Text politics in play. With politics in play. Looking at the u. S. Japan trade agreement when trump and abe meet on the sidelines of the yuan general assembly. Auto terrace remaining a point of contention. After the overnight jump in treasuries. The u. S. 10 year yield jumped as much as nine basis points. The yen this morning eyeing the 1. 07 handle. The u. K. Parliament reconvening on wednesday as Boris Johnson disagrees with the Supreme Court ruling. In asia, it is a busy day on the calendar. We will get prices from japan and the boj july Meeting Minutes which comes after governor kuroda expanded the virtues of negative rates. We have figures from new zealand and inflation for malaysia. And thailand expect it to hold on rates after last months surprise. Paul thanks very much. Lets check in on the first word news now. Ritika thanks. Stocks and oil fell as President Trump took a hardline stance against china in his speech to the u. N. Futures felt in new york as he ruled out accepting a bad deal and accused beijing of manipulating the u. N. Out of stealing intellectual property. His pessimism comes less than two weeks before trade talks are due to resume in washington. The u. S. Had earlier welcomed positive comments from china. President trump the American People are absolutely committed to restoring balance to our relationship with china. Hopefully, we can reach an agreement that will be beneficial for both countries. Clear, ihave made very will not accept a bad deal for the American People. President incoming of the European Central bank says he is confident the Global Economy will dodge recession, although there are still substantial threats from protectionism and the trade war. Christine lagarde takes the reins of the ecb at a precarious time for the Single Market and the wateider world. Growth estimates were weakened to the lowest pay since the financial crisis. It is not in the baseline to have a recession. Mediocre, it is growth. At risk because of, essentially, one major threat which is the trade war that we see. Minister. K. Prime boris is bowing to deliver brexit next month, remaining defiant in the face of the countrys top judges. Saying his suspension of parliament is unlawful. The Supreme Court said the advice johnson gave the queen to shut the legislature down was wrong and prevents elected politicians from doing the democratic duty. Johnson says he disagrees and will deliver brexit next month regardless. Lets be absolutely clear. We respect it is very in our country fiduciary the judiciary in our country, we respect the courts. I think it was entirely right to go ahead with a plan for a queens speech. Ritika brazil is dismissing what it calls media lies about the fires in the amazon, saying the rain forest is not burning down. The president told the United Nations the fires occurred naturally in dry weather, although he agreed some have been set intentionally. Last month, the Brazilian Space Agency said the number of fires in the amazon increased 84 in the first seven months of the year. The amazon is not being devastated, nor is it being consumed by fire as the media misleadingly says. Ritika global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Paul thanks. Still to come, wework founder adam neumann steps down as ceo, vowing to take pressure off with an ipo on the line. What happens next . Kathleen the drama in washington since stocks lower as political turmoil. President trumps criticism of china affect the market. This is bloomberg. Kathleen i am Kathleen Hays in new york. Paul i am paul allen in sydney and you are watching daybreak australia. Lets get back into what was a wild ride for u. S. Stocks. The impeachment drama was only one issue to pressure the markets. Faang stocks slumped on President Trump social media comments and weak Consumer Confidence added to the gloom. Su keenan joins us. About 24 hours ago, markets are looking for a catalyst. They got one. Su they got a lot of catalysts. Big was one of the areas that took a big hit. Trump appeared to be in the middle of all of it. Lets go to the snapshot. The bonds had a wild ride. We have the dollar lower. Energy taking a big hit. Energy related stocks. If we go into the bloomberg, trump impeachment odds surge. That was one of the big stories hanging on the market. Lets go to one of the big movers because several comments throughout the day that led to gyrations. One of them was about his criticisms of big tech. You saw the faang stocks take major hits on a lot of the tech stocks. You also had the wework charismatic but big spending ceo moved to the sidelines. Interestingly enough, Goldman Sachs and jp morgan the big investment banks that have a lot to lose if an ipo does not happen took very big hits as well. Very big story on wework and bank ties. Kathleen totally different side of the spectrum, great news for nike today. Su nike apparently not taking any hits from the trade war surprisingly. Take a look at how it is moving after hours. They come out with strong numbers. Doubledigit growth in china. Take a look at some of the numbers that are impacting their earnings. Really came out, beating analyst estimates. Sending the stock to an alltime high and extending trading that will likely go into the regular day. It puts it in the rearview mirror. How the trade war will impact things and seems to be dissipating and china Growth Continues gangbusters. Kathleen it is a mixed bag. Thank you so very much. Joining us now is managing director of capital markets, sylvia. You are a new mom, just a couple of weeks old your baby so thank you for taking time out from junior to come in. I know you are watching everything happening so closely. Some of the trade you are looking at our semiconductors, robotics. We had President Trump come all he had to say was tightened up on some of the Big Tech Companies and that is one of the things that the nasdaq fell about 1. 5 . Sylvia su gave us the doom and gloom of todays comments earlier. The reason why i like some of the sectors is also a frame of reference. I like these sectors for shortterm trade. Overall, a lot of investors are looking to diversify portfolios and loantovalue and late cycle performers. There is somehow foot to be made so semiconductors, look at the top stocks. Macron up to 60 yeartodate. It fell off a little bit today but the story is the same. Data center is growing, gaming is going. Dram memory trips are growing. That is a massive performer that will continue to grow whether or not we have a deal with china. Kathleen tech stocks for years, think back to the nasdaq bubble of the 1990s. Tech was impervious to oil, Central Banks. Now people see tech is very cyclically sensitive. Are certain tech sectors or companies immune to the trade war . Sylvia i dont think they are completely immune but i do think there are spotlights within indexes. You look at the tech sector as a whole, look at a name like microsoft. Microsoft did a 40 billion repurchasing. They have this 365 commerce Dynamic Growth where they are getting a lot of amazons cloud business. That is a name that is poised to grow well. Do i think the faangs are at risk . They are risky and volatile. If you look at the top names in the sector, some of those things are millennial trades, a. I. , global robotics. I think there is some memento and good names to look at for alpha. Paul just turning to politics for a moment, nancy pelosi seemed to give markets a favor by not making her announcement until after their close. Are you expected to see much of a reaction when things get going again . Sylvia for me, not being a political analyst or expert, just looking at the markets and what happened before when came up with president nixon. There was a bear market, we continued with a bear market. With president clinton, we had a bull market ended continued. We have a bull market. It is a bull market that is often affected by headline so i think that will continue. For me, the Biggest Issue is whether or not we get a trade agreement and what happens with the fed. The fed would like to sustain growth in the bull market and we would like to enter looking forward to some kind of optimism around the china trade deal. Maybe this pushes the president to get that done more quickly. For me, this inquiry of impeachment is something that will add volatility to the market in the short term but not longterm in the markets. Paul there is no shortage of uncertainty around. We take a look at this chart, we can see investors have been piling money into gld. I know you see gold as a shortterm trade. How short . Do you have a sense of optimism through all of this . Sylvia i think investors are nervous. I mentioned it before. I think globally on a macro level, investors are starting to derisk their portfolios. They are starting to add some value overgrowth. In the shortterm, i do think investors react to what is happening in the market. Looking for alpha, tech semiconductors, robotics. I think in terms of positioning for a hedge, gold tends to be the safe haven. We have seen a lot of flow into the gold etfs and into energy. Down today but also the reduction of the saudi oil supply. I think there you got an alternative asset class as well as gold. We have seen a lot of flow into there right up because of uncertainty. It is a safe haven for investors that tend to deliver when bonds right now are returning next to nothing, 2 right now. Equities in gold. Kathleen we had such a big run in the bond market as stocks traded off today. You mentioned the fed. The Federal Reserve is effected maybe to do another cut this year. Global Central Banks cutting rates. Is that a little bit more background for stocks now or when you look at the s p 500, once again alltime highs, is it a necessary ingredient the Federal Reserve maintain an accommodative stance and maybe makes it more accommodative . Sylvia if we look at the s p 500 now, we are hovering around alltime highs. Minus the volatility today. I think the trade war with china is a major issue. Many of the stocks in the s p 500 have a lot of exposure to china. They manufacture a lot of their goods in china. Some of their products are purchased in china. Not having that essentially affects Global Growth and global gdp aground the world. If we dont have that, we sort of need the fed i would say we need the fed to essentially help the bull market going. The more the fed cuts right now is sort of what the market is looking for, what the Market Risk Appetite will depend on. Kathleen that is why they call it insurance rate cuts. Sylvia exactly. Paul all r