Regime. How will be administrations decision affect the president s talks with his chinese counterpart. Investors turn their attention , willie strongta number see the Market Pricing more hikes from the fed . We will speak to ubs manus cranny will speak to its global strategist. Than one half an hour away from the european open and it is going to be an interesting trade today. Take a look at futures. Regardless of the u. S. Missile strikes against syria, we are not seeing huge drops here. In fact, this morning for a wild, some of these numbers were green. Ftse futures down. 25 . Dax futures down. 5 . You will see those moves are pronounced. They are not exaggerated this morning. Lets look at boones here. Bunds here. Investors are getting into the safety of German Government debt. You will remember that yesterday we saw pretty similar levels. Point 25 . Not a huge drop down from where we saw boones bunds before. You will see some flight to safety, but it will not be a huge one. Guy and another thing to remember is this happened in the middle of the night for u. S. And european traders. We know about some liquidity issues surrounding asian trade. It will be interesting to see how the response progresses as european and u. S. Liquidity kicks into the markets as we work our way through the morning. The russian down, ruble, one of the biggest losers on the back of this. The yen is up 2 10 of 1 . To matts point, not enormous reactions. You are seeing bigger reactions elsewhere. A little bit about what is happening in gold and oil. Gold up buying. 9 . We did see oil bid. 1. 2 , the bloomberg Commodity Index up by. 2 . We will see how the day progresses. It is after all, payroll day. That is an important factor as we work our way through the session. Lets get a catch up with the first word update with Juliette Saly. The u. S. Has launched a Cruise Missile attack against syria. Said 59 tomahawk Cruise Missiles were aimed at angers, planes, fuel tanks, ammunition storage and air Defense Systems at the airfield. The attack killed at least four people according to the associated russ. White house accused assad of using chemical gas to kill civilians. President donald trump called it an affront to humanity. The head of the u. S. Missile raid on ahead of the raid, turkey said it was ready to act against the chemical attack. The president said his country was prepared to whatever necessary without hesitation. The countrys foreign minister spoke exclusively to bloomberg. The world should know longer stay silent on this and should also no longer put forth this stupid claim that there is no alternative to this regime. The Syrian People will find people to lead them. It is enough that we saved them from assad and this brutal regime. News of the strike came as donald trump make xi jinping in florida. And trade was expected to dominate discussions. Trump said they struck a positive tone in the firstever meeting between the current leaders of the worlds two biggest economies. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Much. Thanks very lets get back to our top story. Within the last few hours, the u. S. Launched a Cruise Missile strike against syria. We are going live outside trumps residence in florida and in singapore. Let me kick it off with you, ramy, what are the details we know about the attack so far . Happened abouts 8 40 eastern time here. It is about 2 40 eastern on a friday morning. Two cruisethat destroyers set off about 50 tomahawk missiles and we have u. S. Navy video showing that, showing tomahawk missiles heading towards the syrian airfield that was allegedly launching attacks Chemical Attacks two days ago that killed on the order of about 70 to 80 people. Now some of the developments off of that, russia in particular has threatened negative consequences and said they would be halting u. S. Russian cooperation in syria. We have to remember russia has been an ally of russian syrian president Bashar Alassad in terms of the syrian conflict there. We can see a bit of a cratering in the early hours after this attack of the u. S. On syrian soil. You i havesk been following the blog since 4 00 this morning, looking for reaction, seeing it to some safet in defensive and haven trade, but it hasnt been a huge reaction. What is the outlook for Financial Markets today . Huge,be it hasnt been but it has been there before. Good quality in asia in all of the assets you might think of worried treasuries, gold, euro oil. Not only is the missile strike a risk to safety, but russias response may provide investors a reason to seek safety. Let me mention the technical thing going on for treasuries and gold, they have been struggling to rally and push higher, pushing up against the barrier for the last several weeks and just today, this rally has allowed those two assets to push above this technical level this technical bar that analysts say the move can lead to further gains. We have the fundamental factor and the technical factor for treasuries and gold especially, which are supporting those assets today. Guy let me come back to you in florida. What has been happening back in whatngton as the result of has taken place overnight and is there any affect on the china conversation . Can we talk a little about that . Line easy to draw a between what happened in syria and what can potentially happening north korea . That let me get to question first because we are here to talk about the headlines that we thought we were going to be making. The first facetoface between donald trump and xi jinping, but that has been overshadowed. We have not heard any word that there will be suspension of any talks. We are expecting those talks to go ahead over the next 24 hours. They will be talking about u. S. Jobs going into china and can currency manipulation allegations as well as the u. S. Deficit with regard to the trade surplus that china does enjoy. Off of that, to your first reaction inut washington, d. C. And basically across the country in terms of politicians, it has been mostly i partisan support from republicans and democrats. We have seen paul ryan coming out saying this strike is appropriate as well as just. Senator john mccain as well as Lindsey Graham were the first two senators to come out saying they supported this, that this was something that needed to happen. On the democrat side, although nancy pelosi said this was something that needed to happen and senator dick durbin, the chairman of the Senate ForeignRelations Committee saying this for anything else that needs to happen, they do need to have congressional approval. You are seeing general a support across the board but now a little caution is setting in. Guy lets wrap it all up. A big day for the markets. Distraction . Is payroll the big event today . Wes i think the bond market is haveling that investors not changed their outlook for the economy or the fed based on what is going on in syria. That may explain your point about why there has been a flight but not an outsized one. The jobs number coming out, that on theform traders views course of the economy and the federal reserve. Creep toon, jobs will the top of the headline, creep to the top of the front page and push syria off a little bit and it will be jobs, it will be the story for the rest of the day. Guy i want to point out it is only 3 00 a. M. In florida. Thank you very much, indeed. Joining us in the middle of the night to give us the latest on what is happening there. West goodman joining us. Smart analysis and it is the day for it. We will be covering the payroll days events. Lets carry on the conversation. The senior investor manager at aberdeen. Put this in context. You are trying to figure out how to sequence everything out and what Market Reaction is. If us your thoughts . Is to notst thing overreact. It is an isolated incident in response to a specific event. It has already seen bipartisan support within washington. It also seems to have been risk receiving report support from World Leaders around the world. Prime minister theresa may has offered support for these actions. As it stands at the moment, i dont think we should extrapolate too far into the future. The have to treated for what it is at the moment, an isolated incident and the reactions from market is a small flight. Guy is the recent range significant . James i dont think so because it has quickly been rejected. 232 already back at 2. 30 two. I think that is because we have payrolls this afternoon. To closef we were around 2. 30, that would be interesting on monday morning. Is there anything that could push treasury yields down much further . They are already pretty low already pretty richly valued. Is there anything around the corner that could push yields lower . James yes, unfortunately. Treasuries are still way too expensive and that reflects the economic fundamentals or what the fed is guiding us towards. But as always, there are always asew clouds on the horizon, the bond guy, we are paid to look at those. Chinas policy, i think it is safe to say the cyclical recovery since the middle of last year has been helped if not largely driven by what has been going on in china and they just are starting to take the sting out of the system on the Monetary Policy side. If we saw the same on the fiscal side, that could well start to take the sting out of the Global Growth and reflation going on and matt is in europe, the potential for risk of events. I have to say giving evaluations, it feels like this you should be towards highyield. You are losing a pretty important buyer in the half second half of the year and are you still preparing for two to three rate hikes in 2017 . James absolutely. That is the interesting thing, we have seen the fed minutes and they talked about the Balance Sheet unwind and every time we hear from original fed price, they talk about the Balance Sheet unwind and we dont know how or when, but it is fair to say that is coming and the same is coming with the ecb. The markets reaction was to see treasury yields fall. Equity markets have been one of andbig beneficiaries of qe further information about potential Balance Sheet unwinding negatively does tend to the two a falling yield. That really doesnt make sense to me if what we are saying it is going to be less buying from central bank, no buying from central bank and indeed, the cousin of the way those roles are rollovers have been financed, it means more to from the treasury as well. Up to need to move reflect what is going on in Monetary Policy and economic terms. Guy plenty more to come from you, james. Coming up on the show, the u. S. President says he has forged a friendship with his chinese counterpart gigi being. But will anything concrete come out of their meeting . We will discuss that later. That is all coming up. This is bloomberg. The market open is 14 minutes away. 48 minutes past the hour. Lets get the latest headlines with Juliette Saly. Has launched u. S. A Cruise Missile attack against syria. Said 59 tomahawk missiles were aimed at hangers, planes, fuel tanks, ammunition the attack killed at least who g people according to the ap. The assault comes after the white house accused assads regime of using poison gas to kill civilians. Donald trump called it an affront to humanity. President trump it is in this National Security interest of the United States to prevent and deter the spread and use of deadly chemical weapons. That can be no dispute syria used chemical weapons, violated its obligations under the Chemical Weapons Convention and ignored the urging of the u. N. Security council. Juliette samsung has shrugged the safety andr corruption claims to report higher than expected preliminary profit and revenue. Wasating income in march 8. 74 billion. Rising demand for memory chips helped fuel a rise in sales. Those are your latest bloomberg headlines. Die and that . About an hour before the u. S. Missile strike against syria, donald trump was sitting at dinner with president of china in their first facetoface meeting. The time, trump suggested a relaxed tone, telling reporters we have developed a friendship. Still with us, the Senior Investment manager at Aberdeen Investment management. James, what do you think about this outcome if president xi isnt offended at being overshadowed by a Missile Launch on syria, is this a positive outcome . James to be honest, i have no to believe these guys arent pragmatic about how they approach these discussions. Mutually assured economic destruction, to coin a reagan phrase. What is that for one is bad for both of them. There is no reason for this to get fractious at this early stage. Im sure they have concerns and would be happy to raise those anyerns, but i dont see reason that should become a nasty discussion or should be detrimental to either of their economic futures. Xabsolutely expect this to be seen externally as a positive event. Guy this is the guy that was on the campaign trail and pretty antichina. Why now . James this is a conversation you just had you and i had just now. Trump the campaigner and trump the president dont seem to necessarily be the first same person. That doesnt surprise a great deal. They are always different. Responsibilities as a leader are frequent, numerous and heavy. I think the syria response is another example of where the rhetoric that we heard from mr. Trump the president ial campaigner and the rhetoric we have heard from him in the early stages as president and then andons and the behaviors policies being put together, especially now that the cabinet is in place, certainly seemed to be more] and softened around the edges. Without throwing out core themes and believes. Guy gents, we will be back with you in a moment. Next, stocks to Pay Attention to and the open up trade in europe. That is seven minutes away. Some commodity stocks surrounding this move. Gas higher. You are seeing a similar story elsewhere. This is bloomberg. A role friday. Some of the stocks that could be on the move. Watch the miners. We have seen reaction to the missile strikes on syria. We will wait and watch. The most exciting thing about that chart is the one year turn in stocks that are pretty sensational. Matt amazing returns. I want to come in with a breaking headline from the chinese news agency. They are saying donald trump has accepted president xis invitation to visit china. Friendshiprming a according to the president of the u. S. And now the president of the u. S. Will travel to china to visit president xi. More on that when we come back. This is bloomberg. Guy welcome back. Minutes away from the let us talk about where we expect stocks to go today. We are not expecting big movements. If you had showed me this, and syria had not happened, today is payroll day. Stocks, not going anywhere in a hurry. Ftse down by 0. 1 . Not exactly major moves when it comes to the european stock open. Do olds. As going to i was going to look at gold. It would be interesting to see if people are piling in there as a safe haven trade. The 10 year yield, coming below the 100 day moving average. This is more interesting. Is 7480 seven. It is one to save and study. 7487. S chart is it is went to save and study. Let us look at treasuries. This is the picture. Light is likening ening up a little bit. The cac is waiting for payroll. Let us see what that number is and whether it changes anything significant. Let us see if it confirms the adp number. Ftse, down by 0. 2 . A we thought today would be dominated by u. S. Trade. But also a geopolitical risk being felt in some asset classes. Not necessarily in asian equity markets. This is the shanghai composite, at the close coming in at positive territory. Making gains in the asian equity session. We are expecting to see, a little bit of a weakness in the european sessions. Down 0. 3 for the european equities generally when you look at the stoxx 600. In of the gains overnight asia, the oil price. And the broader commodities. The oil price moving higher on the geopolitical risk putting Energy Stocks higher. Thegest loser come biggest losers, material stocks. Checking in on fixed income market. One of the geopolitical trades has been money going into fixed income markets and yields coming down. It has not been all that pronounced. We have seen a little bit. That continues with the gilts market. When will we get below the one preset number. What does that tell us about the reflation trade. Rightly or wrongly, we did see some reaction in markets in the Asian Session but some of that has been wound back. Whether you look at gold or the yen or the oil price. We did see an initial reaction, certainly in the yen the we have made back some of that ground. Thing attention to that one. C what has been going on. Here is some index points. Rio. Glencore. The miners are softer. Bhp is in there as well. Gold haseen up and been up. That is where you see the dispersion in the physical sector. Andgold is trading higher. Bae systems, the Defense Supplier may be of interest this morning. Nevertheless, the miners are up. The gold miners are up along with the gold stocks. The industrial dental stocks are trading the industrial metal stocks are trading lower. Expecting we were to talk about today was the meeting between President Trump and the chinese president. We are getting more headlines now out of the chinese news agency. We are learning that the chinese president is urging more chineseu. S. Trade quad operation. More infrastructure and Energy Cooperation according to the news agency. This is the kind of thing that the markets like to hear and were looking forward to especially when coupled with th