Syria. The move comes days after washington effectively okayed the operation. The u. K. Government pushes ahead with brexit, although the current eu president says there is no chance of a deal this week. Shery later in Bloomberg Technology global link, we will outline the possible rescue plans for wework and what softbank can do to save the struggling unicorn. Lets get you started with a quick check of the markets. U. S. Futures at the moment unchanged after stocks fluctuated between gains and losses throughout the session. The s p 500 was led lower by utilities and materials. The Energy Sector down as wti lost the most rampant about two weeks, 53 a barrel. Investors still trying to figure out what a partial u. S. China trade deal actually means. Acrosslots of anxiety markets. Pretty light trading. We saw about 30 below average volumes when it comes to the 30 day average. We had u. S. Debt markets close away on holiday, so pretty thin trading. The focus this week now switching to earnings season. We are taking that off with big banks. Jp morgan and Goldman Sachs reporting tomorrow. We have Morgan Stanley later in the week. Lets see how things are shaping up in asia. Sophie futures looking somewhat being castia without over the handshake deal between the u. S. And china. Ongoing protest in hong kong could cast a shadow with the u. S. Congress as it votes on the democracy bill. Kiwi stocks started the day, up about 4 10 of 1 . We are seeing a lack of conviction overgrowth in bond ankets again with trade irritant for the cycle, not a disease. The imf will lower forecasts when delivering its Economic Outlook this week. Kiwi and aussie bonds heading higher here this morning. On monday, leading the rally over pessimism which got the pound to slip, but now recovering a touch on the telegraph reporting lastminute compromise is. A quick look at your calendar this tuesday in asia. Take a look at that. We have chinese inflation, japanese factory output, as well as trade data from india and indonesia. Rba minutes are out later this morning. Haidi. Haidi a lot to look forward to. This get the first word news now. Ritika thanks. China is hesitating over President Trumps partial trade deal, saying more talks are needed before any signing can go ahead. Sources in beijing say the vice premier may lead a delegation to hammer out more details of the potential agreement which could then be signed by president xi and trump next month in chile. China wants the u. S. To abandon planned tariff hikes in december. The current president of the European Union says there will be no brexit deal before this weeks summit. The Prime Minister of finland says time has run out to reach an agreement before thursday. The news came as Queen Elizabeth delivered the traditional speech outlining her governments legislative agenda. Boris johnsons plan includes a general election on the brexit strategy. The protests in hong kong may have taken a dramatic turn with police saying a homemade bomb was detonated on a patrol car this sunday. The device was set off about 10 meters from a police car. No one was hurt in the exposure, but police say it is clear the intention was to kill or seriously injure officers nearby. Police say the bomb requires knowledge of chemicals. Retail inflation in india climbed to its highest level in more than a year, posing a challenge for the rbis aim of maintaining an easing policy. Consumer prices rose a fraction below 4 from a year earlier, higher than the estimates in a Bloomberg Survey and faster than the revised figure for august. Inflation jumped after heavy monsoons damaged onion and tomato crops. Global news 24 hours a day and on tictoc on twitter and more than 120 countries. Tika gupta. Mike live pictures of pence and Steven Mnuchin speaking at the white house right now on those sanctions on turkey. Earlier, secretary mnuchin had said the u. S. Would be sanctioning the turkish defense, energy and interior ministers. Three of turkeys minister chiefs will be sanctioned. U. S. Will general it issue general licenses for humanitarian work. Saying the licenses will allow turkey to buy fuel. Vice president pence saying President Trump spoke to president erdogan, saying the u. S. Wants a ceasefire. Our managing editor for russia, africa and the middle east Benjamin Harvey is monitoring developments. He is in d. C. Right now and watching these talks as they continue at the white house. Teeth do theseh sanctions actually have on turkey . Benjamin so far, i think these sanctions are mostly symbolic. If you look at the Market Reaction, that is also what it is indicating. The perception is the u. S. Is being much more cautious on turkey then some of the extreme rhetoric would suggest. Trump and other u. S. Officials have for some time now been morning they would take measures to absolutely destroy the turkish economy. So far, that is not what we are seeing. Haidi if you say this is largely symbolic on the conservative side, is there any will affect how much further the administration will go . Benjamin if the question is it will be effective in reversing turkeys invasion into syria, that would be no. Erdogan said no amount of pressure would prevent them from continuing this operation. They will continue with them. The question is whether the u. S. Will continue to escalate sanctions until he gets to the point where they do do real damage to the turkish economy. Shery tell us what is happening on the ground in syria because we have heard hundreds of Islamic State supporters have escaped. Benjamin events on the ground are playing out exactly as expected. Youve got turkey going in there, very quickly secured this buffer zone it wants to create in northern syria. You have the to have been abandoned by the u. S. They decided to make a deal with russia and with the syrian president assad. On the background of that, Islamic State prisoners who have been held by the kurds are either being released or escaping. This has all been predicted, including by Donald Trumps advisors. What is a surprise is the speed with which it has happened. This has unfolded over the course of six days. Haidi in terms of the investor reaction, we are seeing continued pressure on emerging markets equities as well as stocks. Turkish assets coming under pressure. Is this likely to be muted a little bit given the moves were not perhaps as aggressive or hawkish as people were expecting . Benjamin so far, that is the perception. That it is definitely not worst Case Scenario for turkey. That said, there is some damage already being done. The lira has weakened fairly significantly. If this continues, you could have a situation where people talk about the stability of turkish corporate debt. You have the central bank that is looking to cut Interest Rates to revive the turkish economy. They will probably have a harder time finding the justification to do that now. Haidi benjamin, thank you for your time. Our managing editor for russia, africa and the middle east. The lira continuing to be the worst performer in the emergingmarket basket. We are getting more lines ebbing out from Vice President mike pence speaking at the white house. Saying trump spoke with frances men well micron emmanuel ma cron, saying the sanctions imposed on three senior ministers is just the beginning. They will continue those sanctions until turkey agrees on the ceasefire. We believe that story for now but it is continuing to develop. Lets go to china where the country seems to be pretty paused on President Trumps mini tree deal trade deal. Treasury secretary Steven Mnuchin says there are plans for more negotiations. Tom mackenzie is watching all of this in beijing. We were cautioning yesterday against to much euphoria in the markets for this day one mini deal. It seems like beijing is pouring cold water on these developments as well. Tom absolutely. Our sources telling us negotiators want to return to washington, potentially led by the chief negotiator of the chinese aside, the vice premier, to iron out some of these details before they plan to sign this potentially at the apec summit in november. They want to get more of these details locked down before they put it in front of president xi jinping to sign. There is reason for that caution. May 2018 was one example when the chinese came back from negotiations with the u. S. , thought they had some kind of deal. It looked very much like the phase one deal we have now. Then, trump did a uturn and they were left looking rather humiliated. You are seeing that in the language being displayed here, as well as the fake media is reporting. They are talking about substantial progress but they dont want to be touting something that maybe ripped up before their very eyes in the next few weeks. They want to avoid that humiliation. The other thing our sources tell us, the chinese are pushing for the potential tariff icon december. That is not going to happen. They are pushing for the same kind of action from the u. S. On december 15 as well. By the way, in terms of how committed china is to this deal, watching the yuan, according to the likes of capital economics. They say we should be watching for signs of china may be supporting the currency as a goodwill measure to try to appease some of the concerns in washington. Shery pretty flat for the last 15 trading sessions or so. We continue to see violence in hong kong. We have heard trump repeatedly bringing the hong kong issue up, saying president xi should actually meet with the protesters. Does this tie into the trade negotiations at all . Tom there is the concern that hong kong ends up being a factor that both sides have to contend with. In fact, President Trump in comments to the vice premier, says it looks like things in hong kong are calling down. The evidence suggests that is not quite the case. We have had reports of remotecontrolled explosive device potentially targeting police in the city. Violent protests as well as peaceful protests have continued in the city. It seems like trump once to keep hong kong as a side issue. Affect not want it to the trade negotiation. Members of his own party, like ted cruz, in the city to show support to hong kong. We have the legislation going through the motions in d. C. Bipartisan support for legislation that could see this annual check in terms of Hong Kong Special trading status. All of these things are moving forward and it could be the timing forces hong kong to become an issue when it comes to these trade talks. That is another concern for markets. Haidi tom, thank you foso much. Tom mackenzie in beijing with the latest on trade. Still ahead, Malcolm Jeffrey takes the global temperature with a look at what businesses are doing when it comes to hiring, firing and expanding. Pulaski saysjake expect positive market catalysts this quarter. We will have his analysis just ahead. This is bloomberg. Shery i am shery ahn in new york. Haidi im haidi stroudwatts in sydney. U. S. Stocks ended slightly lower as investors weighed the partial trade deal that President Trump been touting as well as reports china wants more negotiations before president xi jinping will sign the deal. Tpw Investments Management jay pelosky sees progress ahead. He joins us from new york. Great to have you. I want to start out with this chart that illustrates the mood we are seeing when it comes to Equities Trading at the moment. We are seeing bulls try to set up the highs. Within 1. 8 of a high for the s p 500. We are looking at this range bound backandforth session at the moment. Is this just the fact we are seeing the old playbook of avoiding the growth sensitive stocks, growth sensitive currencies . Buying bonds. At the end of it we are at the end of the cycle. Jay i think you are right that markets have been range bound. For us, that is one of the four factors that makes us bullish and looking in a risk asset rally to fall. Markets have chopped a lot of wood. There has been a lot of negative issues in the last months. Equities are only 1 or 2 off over the last three months. Bonds up 1 , 2 . That is one. The second is we believe Global Growth is bottoming. Pmis are starting to bottom. In autos and semiconductors, two main parts of the industrial complex, are also trending up. That is the second factor. Our third factor is we believe geopolitics are finally stabilizing. This has been an overhang of uncertainty for markets all year. Yet, i believe we are at the point where Everybody Needs a win. President trump could use a win. President xi could use a win. Force johnson could use a win. The eu could use a win. Fourth, and most importantly, the policy mix has changed very much for the better. In our own work, we call it the global risk this. Policy over the last 12 months, where we are today and policy versus a year ago a lot of people were talking about that q4 would be the same as last years devastating q4. For us, policy is much better placed today than it was a year ago. Our outlook for Economic Growth has really turned up. For us, we are positive. We think risk assets will rally through the course of the fall. Haidi is it really the second part of the year thesis that will drive any breakout . If you look at the trade, potential brexit deal, notwithstanding there is very Little Details about what or when we might get out of these negotiations. It is one facet looking at the downside pressures on the u. S. Economy and growth. Jay you are absolutely correct. The way im starting to think about it i think we are in one of those rare periods where good news is good news for risk assets, and bad news is good news for risk assets because it brings more of a policy response. Everybody is concerned about global recession. Everybody. You will hear from the imf, world bank, everybody. Bad news today is not bad news for risk assets. It is actually good news because it will bring more of a policy response. We have seen that with policy bank easing. The only bad news is the status quo where there is really no change. To your point, we need a catalyst and the catalyst could come from clear signs of global Global Growth bottoming which is significant implications for Asset Allocation and signs of improvement in the geopolitical front. Shery re nearing the front where bad news will simply be bad news . The bloomberg chart showing the manufacturing slump globally. We are talking about the u. S. , china, japan, there was own all under 50. In the u. S. , we have seen this transmit in the manufacturing side of things. Jay i dont think so. We are of the view that the Service Sector will hold up. If you look at the developed economys unemployment rates, that is record lows translating to record High Consumer confidence which suggests robust consumer spending. You highlighted it. The pmis have a repeat. Jp morgan has done a lot of work on this showing you move from an under 51 and declining manufacturing pmi to an under 51 and rising pmi, the shift in return can be four to five times greater when you move when you start to inflect upwards. We believe that is where we are. If you look at jp morgans work, and hasi is turning up been up for the last two months in a row. We want to start to position for that. Shery does that factor in potentially more tariffs coming up in december on chinese products . It could potentially steal christmas from u. S. Consumers. Jay lets hope not. I have kids. Stealing christmas is not a good thing any parent would want to have happen. The tariffs in december all right open question. Im surprised that was not really addressed in the talks last week in washington. We will need to see how that plays out. The pmis bottoming means you need to shift from bonds to stocks. You need to shift from the u. S. To nonus. You need to shift from growth to value. And, you need to shift from defensive to cyclical. What we are trying to tell our clients, and we said in the monthly piece, what we are trying to tell our clients is it is time to start moving a portfolio in the direction of this. Because the downside is limited. And, the upside when the shift comes, it comes fast and hard because everyone is positioned in bonds in the u. S. , in growth and defensives. Shery we are too bearish at this point. Jay pelosky, very optimistic at the moment, tpw Investments Management. You can get a roundup of the stories you need to know to get your day going in this edition of daybreak. Go to your terminal. Also available on mobile on the bloomberg anywhere app. Plenty more to come. This is bloomberg. Haidi this is Bloomberg Technology global link. Alongsidestroudwatts shery ahn and taylor riggs. Lets take a look at the top global tech stories from today. Taylor apple is under fire for setting rousing data including ip addresses to tencent. The Foreign Company struggled with how to work in china. It is part of an iphone and ipad security feature that warns users if a website is malicious. Apple checks addresses against a list of sites known to be problematic. That list is maintained by tencent for china and for google by other regions including the u. S. Uber has fired 350 more employees and what it says is the last wave of staff cuts. The terminations affect several divisions, including selfdriving Car Development and food deliveries. Ubers stock is about 30 since the ipo in may with investors concerned about rising losses and slowing growth. Is closenn tech outfit to securing 2 billion of new financing from investors, including softbank. It will be split equally between values it debt, and at 16 billion