The yield is trading right now and the opening markets. That will not match up with the auctions today and tomorrow. Keep an eye on the dollaryen. Kind of stuck within a bound, but we will see if there is a breakout, and you see the nasdaq, golden dragon. All the big Chinese Markets moving lower, down about 2 right now. Guy just a few headlines coming through from washington. The boss of the imf is speaking and she will be talking to tom keene later on this program. What she is saying is the Global Economy, much of which is deteriorating at the moment, warning about the impacts of the what war, and reinforcing Christine Lagarde kept saying again and again and again, the war is negative for Global Growth in that story continues. It continues in the market the stoxx 600, you have 500 up, sorry, 500 down and less than 100 up. The stoxx 600 is trading up slightly higher. Lows andith session the pound is under pressure. The brexit story is taking a turn for the worst. Vonnie we will hear from her and interview coming up in a few short minutes. To the top story, china signaling it will hit back out of the Trump Administration blacklisted eight Chinese Companies. This comes at the two nations are set the whole the latest round of trade negotiations in the u. S. To discuss that in other geopolitical risks, we are joined by jason traynor. Lets start with china and the trade talks. Everyone was expecting something positive or something not negative with the chinese. A lot of people are questioning when the talks will jump off. Jason we are all guessing. I have to go with the more common sense view is that both sides are pretty strong and could come to some sort of deal relatively shortly. China has its own internal political problems and so, imomic issues, and pretty sure no one knows anything. Im going with the commonsense view that something will be hammered out. Romaine youre talking about the two sides having political issues of their own. Look at what happened yesterday with japan and that trade deal. It wasnt a major trade deal, but at least they were able to find some Common Ground and move on. Jason i think both sides, i do think it is a misconception to believe president xi is on london time to deal with the United States. I think the experts i have ground, therehe are more pressures in china, political pressures than one might think. I think the Global Economy is slowing and is having a meaningful impact on the social fabric in china, and to some extent, and the u. S. As well. There are Political Economic reasons for both sides to come up with a deal. It is unlikely you will get the Structural Reforms people sought at the very beginning, the administration sought at the very beginning, that may be unlikely, but you make it enough to satisfy the markets. Guy jason, good morning. Do you think the next round of tariffs will go into effect on the 15th, and if so, how will stoxx react . Jason if they go into effect, it will be bad to it will be back for some stocks. There are no two ways about it. The u. S. Economy is hanging in and the u. S. Consumer is holding up the alice and the entire Global Economy is holding out is holding of the st atlas, on the entire Global Economy. The timing on the Fourth Quarter in the Fourth Quarter of this year is important for Global Growth in the u. S. Will be an fortunate. I think ultimately, both sides have a pretty strong incentive to come to some sort of deal, but if they were going into effect, i would say all bets are off. Is a hard brexit priced into u. S. Stocks . Jason i apologize. We tend to approach our work with a lot of humility and focus all focus on all the things we dont know. Jason i apologize. I am of the view that it is the unanticipated problems that cause the Biggest Issue for the markets. Anticipated problems are usually dealt with and priced in, so a hard brexit at this point is soced in after 3. 5 years or of dealing with the issue. A hard brexit may not necessarily be completely priced in, but at this point, people have moved on and understand this is unlikely to resolve itself anyway that perhaps the establishment wanted. Romaine a lot going on. Jason trennert breaking it down for us. Lets check in on the bloomberg first word news. Trumpsident donald complemented turkey a day after he cleared away for the country to invade syria. Thankede house also president erdogan. President stands put them at odds with many republicans. Pimco morning the trade war with china may push the u. S. Into recession. Emmanuel roman speaking with Bloomberg News at the bloomberg invest london summit. 2020, youst half of will see gdp dip to 1 of something. This gets worse, you may be in a recession because a consumer will use space and what is happening lose faith in what is happening. Chinas outrage against the National Basketball association is only getting worse. State run broadcasters say it will not show nba preseason games. Fromtarting with the tweet the Houston Rockets general manager. Silvermissioner adam speaking what reporters. It is not something we expected to happen. But that isunate, the consequences of us adhering to our values. We still feel it is critically important to adhere to those values. Leagueer also adding the wont help players or Team Executives with what they can or cannot say. 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. Im viviana hurtado. Guy thank you so much. Director isging currently speaking at an event in washington. We will tell you what she has been saying. It may warrant a bigger fiscal response. The imf cutting Global Forecast growth in 2019 and 2020. Later in this hour, bloombergs tom keene is going to sit down for discussion with a new imf madam director, and we will get more insights into what her views where the economy is headed. This is bloomberg. Live from new york, im Romaine Bostick. London, im guy johnson. This is bloomberg markets. Details varyhas emma trade tensions fueling a tweet on both side of the atlantic with europe and the red, down by more than 1 , with the stoxx 600 and the dax looking at a loss of 1. 3 for the s p 500. The best optimism about the trade talks are happening later this week and are really evaporating as we did get as we get different headlines on the white house, strengthening markets in china. The s p 500, looking at every sector in the red. If we switch of the board, we can look at how the s p 500 has performed. We see that klein over the last two days we see that klein over the last two days we see that climb over the last two days. China betweenith officials with the nba is fueling news can individual stocks. We are seeing it head to it were state and the month. Between the nba and china feeling concerns about a consumer looking at alibaba, falling significantly. Aboutare concerns restricting investment in Chinese Companies impacting them, corroding impacting them. This is the slide of the 10 year since his most recent high 17 days ago. Guy thank you. The pound under pressure today. A brexit deal impossible. That is what Boris Johnson told the german chancellor Angela Merkel earlier. Wants the e. U. To drop the robert for more. Sorry, i got it wrong already. [laughter] guy what will the Prime Minister be saying today . This moves us towards where we want to be and where we recommended where the country is, which is a clean break brexit. Improvise clarity and the only thing now it provides clarity and the only thing now is when will we leave . We will not be leaving on october 31, that is for sure. Guy are we heading for a election . You have suggested a fact of the conservative party, however, Boris Johnsons job as a conservative party leader is to conserve there. As to be a danger if you split the brexit vote and deny Boris Johnson the capability of splitting the e. U. The way he wants, if he did that, he would not be able to secure a working majority. Richard on both sides of the. Ivide, there is a split offer. An open, generous they rejected it. The reality is the only way to get a thumping majority to deliver a proper brexit is there tactical voting. But when will there be a general election . You have a situation where you have a Zombie Parliament in an opposition that controls more seats in greater numbers than the government, yet they are refusing to have a general election. It may not be until next april or may. Romaine do you think a general election would resolve some of these issues . Richard without question. If there is a sensible alliance, where we could argue, we could deliver a sizable majority between 1600 seats, which in the house of commons is a workable majority, and that would get on great to deliver it. The right way to deliver it is a clean break, which means we leave. Then, we immediately advance trade talks with countries like the u. S. , where the president there knows our leader nigel for roche really well, get an appetite for a quick trade deal done. Say you dont have to do an allencompassing trade deal. You can do a partial trade deal that you can agree on. Stuff you canhe agree to quickly. Romaine the Political Climate in the u. S. Will make it hard for any trade deal for any partner, no matter how closely aligned you are with the u. S. I wonder if you are worried about the time element here . Forget october 31 area there are a lot of timetables. Are you now worried about that . Richard to be honest, no. At the moment, every country, whether it is the u. S. Or the u. K. Has fiscal challenges at the moment, but there was nothing like a sizable, working majority from which one can negotiate from a position of strength. And yes, we would all benefit from a trade deal between the u. S. And the u. K. But lets focus on what can be done. In the meantime, us in the u. K. Has assessable trade surplus with the u. S. And we enjoy the fact that we respectively are the largest Foreign Investors in each others country, so there is positivity. Guy do you not worry if Boris Johnson and the conservative party, regardless of what you do, win a sizable majority . Does that take the pressure off Boris Johnson to deliver a clean break in the way that you want . Get a sizablennot majority without our assistance. He is under pressure. Takewhat majority can he with a clean break . Richard without a . , you cannot do a clean break. Guy we will leave it there. Thank you, richard. Romaine still ahead, we will hear exclusively from the ceo of pimco who spoke with us earlier dairy that is coming up next. This is bloomberg. \ guy romaine live from new york, im Romaine Bostick dairy guy im guy johnson. This is bloomberg markets. Lets talk about what is going on in london for the bloomberg invest conference. N micklethwait shot down set down with manny roman. Picture is very simple. You have a trade war with china and we dont think it is fixed in the near future. The best parallel you can think improvements, contagion, there will be ups, downs, and so, it will be interesting. Do you see two economies emerging . We were talking about this this morning. Do you see two internets, two supply chains and a much more regional economy . U. S. Will slowe down and you want to maintain is that the first half of 2020, the gdp dipped to 1 of something in the u. S. If the rhetoric of the trade talk gets worse, you may be in a recession somebody because the consumer will lose faith. What are you more scared up, brexit or Jeremy Corbyn . Thank you for this question. [laughter] are you saying you cannot get both, by the way . [laughter] thats funny. We think obviously that a full on Labour Government with the program they have would be very bad for risk assets. It somehow remindsit somehow ren 1981, [indiscernible] they had to do a 180. I came to think the government is good at running things. Matter how bad things are. D. C. Jeremy corbyn would come in do you see jimmy corbin would come and do you see Jeremy Corbyn coming in and causing trouble . And would that have an effect on brexit . Manny we like the u. K. Bank. A lot in the [indiscernible] what you need is resolution at this stage. Limbo andk we are in being in limbo was not not a good thing. You have a situation where the politics, government, the house, the voters, it is so fragmented and so convoluted. I dont have to tell you this, but you need a way to get to an outcome, and a hard brexit is better then two more years of this. Were nothing gets decided. Where nothing gets decided. For the time now Bloomberg Business flash. Postingelectronics Quarterly Earnings that beat estimates. There was Strong Demand for the Samsung Smart note 10. Softbank and uber could cost for mitsubishi. Having a rough humans, trying to turn the Telecom Operator into an investment conglomerate. Shares down 30 back in april. California start up backed by actor ashton kutcher. One sought to change the way securities were sold in the bond market and now it is moved into networks. Bloomberg obtained a memo from the ceo, telling employees funding did not close last week. That is your business flash. Guy . Guy lets take a quick look at what is happening with the u. S. Text right now, especially those companies that may be affected by the portfolio story we have been focusing on. Alibaba is trading down. That is all you need to know. Coming up, we will have a conversation with the new imf managing director still in and. With a new imf managing director, Kristalina Georgieva. Georgieva. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its 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. Call, click, or visit a store today. Romaine live from new york, im Romaine Bostick. Guy and from london, im guy johnson. This is bloomberg markets. Lets catch up with bloomberg first word news. Viviana the Trump Administration is find the later shot in the trade war. The u. S. Is moving ahead with talks on restricting capital flows into china. There is a focus on limiting chinese stocks for the pension fund. In september, one measure of the wholesale level falling by the most in more than four years. Last month excluded food and energy and Producer Prices fell. 2 . That is the smallest increase in two years. The key inflation pressures is keeping the Federal Reserve more leeway to lower interest rates. Over to california where bankruptcy utilities pg e announced a warning, saying they make cut power they may cut power and 30 counties to avoid fires. Basing 30 is million in liabilities. Invest ina green to virgin atlantic. It is preparing to find customers into space next year. They say their relationship will be a collaboration aimed at shaping the future of space travel. 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. Hurtado. Na this is bloomberg. Turn now to what has been going on in emerging markets. Big news having to do with turkey and we are seeing weakness in other countries, including brazil and across latin america. Damien is here with all of his wisdom to tell is everything going wrong with emerging markets, and may be what is going right. I saw an interesting statistic yesterday. Isht now, total net inflows 85 million for the year. We were at 18 billion as of march. I dont know who said that was the trade of the decade. [laughter] nom my perspective, there is markets reprice currency risk in the current environment. Across thetral banks globe cutting interest rates. It flattens the curve and flattens the front end of the curve. That is compressing the forward curve, compressing the costs. You take with the mortgage gives you. We always talk about this. If the market is saying is cheaper to check your current risk, you go into emerging markets. We have been advocates of investing in local currencies. You wont get the high the nominal yields. But you could get a pretty decent yield more than what you cant expecting in u. S. Treasuries today. Damien, they are continuing to weaken today, trying to figure out what washingtons policy is toward northern syria. We are trying to find out what erdogan is going to do in the market is feeling jittery about it. If we see escalation of that conflict involving turkey and a more meaningful way, do you have any idea how much turkish assets are likely to move . You make a great point. Talking about the mid east geopolitical risk. It wasnt as big as the markets were expecting it to be. It has gotten washed away. This is a big deal. Has been long considered in terrorist organization and is responsible for one third of the oil reserves. It is an oil rich area