alix: good afternoon. war withrade latest trade war escalation. 12:00 here in london at 1:00 tariffs on chinese imports went into effect yesterday. p.m. increasing risks of recession, we will get more on december 15. i am anna edwards. where our wealth managers looking to put their money? joining us with more is david the trump administration matt miller spoke with the chief chief executive as it officer at ubs. chinese $120 billion in manager of bluebay assets. good afternoon. let's talk about the hong exports. kong/china tray narrative and -- we have the latest on brexit. they talked about whether the how investors should be -- trade trade war as it stands now is hurricane dorian, one of the priced into equity markets. narrative and how investors should be perceiving all these most powerful storms to hit land i think that the current risks. hong kong is a major financial anywhere in the atlantic. sector and it is getting more maneuvers have been priced in we assess the damage. but the risk has increased. difficult to see a way out of that story, also getting more difficult to see a way out of a very good afternoon to you. the trade narrative. tariffs toward trade talks are meant to happen watching a special edition of consumer goods in the united this month. bloomberg markets this labor day. , much of the u.s. states, we have a concern that china and the u.s. escalating over the weekend. some of the manufacturing slow how do these things end? down could shift into the wider consumer economy. how should investors be viewing the next six months? market is absent. let's have a look at the markets are risks that are not yet the s&p is looking good, bonds . about a great month, talk me this is where we are on the priced in. european equity session. through the narrative. david: i do not think it is a 100. .6% on the ftse narrative where you can say how matt: what are your expectations both of those risk catalysts for an outcome? do we see talks?

doing very well, up by .4%. will play out. is thiso think it means .7%.an see pound down by would a trade truce make you happier or a more aggressive investor or do you think this is if we look at the sectors doing something that is going to take uncertainty around global trade well. -- even though we see longer, possibly past the 2020 and trade policy is going to persist. it is not just between the u.s. elections? truce would a trade and china. markets up, we shouldn't we still have overhanging europe risk-on. that as too at the margin make us more the potential for auto tariffs and we have gotten quiet on aggressive as investors if it that. i do not think that should be was a real truce and not just completely taken off the table. we have other uncertainty some agreement to talk. so that is a look at some of the associated with things like that the tariffs are moving brexit. markets. let's look at the other side of is -- isuggests to me the markets, dollar index. the dollar just a touch toward consumers, there is the stronger. we have seen the dollar up for economic risk but there is also the risk of escalation beyond like to be long chinese rates. the chinese government, the tariffs. beijing authorities, i think it the chinese response be very measured to was probably too complacent the sixth consecutive day. this point. let's check in on the bloomberg the question is, if they started about how big the impact will be first word news. >> good afternoon. to have companies slow the of this trait escalation, this one of the strongest atlantic tariff escalation. storms ever recorded has ability of u.s. companies to do business in china or if the u.s. more easingill get devastated the bahamas. hurricane dorian came ashore is more aggressive on some of the tech transfer, then the with 180 mile an hour winds. out of beijing sooner or later. a storm surge that could top 23 need tohink investors

conflict would morph beyond the tariff issue. feet. try to look for areas where they dorian has tied the record for saw the yield curve the most powerful record -- are not going to be so subject powerful hurricane to hit inversion and i want to draw to logging in, taking your anywhere in the atlantic. your attention to this chart on the bloomberg which shows if you dorian could hit florida a further up the coast later on bloomberg and seeing a red flash this week or not make landfall look at the collective bonds and about a trump tweet on trade. at all. yield for u.s. 10 year, u.s. that is a difficult background china is retaliating for the trump administration's new , theyar and u.s. 30 year at the moment for emerging emerging-market tariffs. are the biggest drops we have 110 billion dollars of chinese imports yesterday. seen since 2008, the financial currencies will be there, cnh crisis. beijing retaliated by imposing will be there, and if you are does this mean we are looking at tariffs. a potential recession in the talking about people speculating that will go to 7.5 -- if that u.s.? means that think it happened in a short time that would be bad news for most people. in argentina, president macri guy: back on holiday. a recession is on the horizon yet. it is september. we would say the chance of a seeing a massive market for bonds. recession is around 25%. has imposed capital controls equities do not have that bad of a month, but it was bad. saying they are containing the what it does show is that there country's financial crisis. is no expectation for inflation, it could've been worse. what do i do? exporters have been ordered to that the global falling yield is i am a portfolio manager. repatriate foreign currency within five days of the sale. beid: first late, i would impacting the u.s. markets as well. that is why we think it is a good environment to be in credit wary about chasing duration. a warning from iran on the trades and to be looking for if you do not have that earlier

landmark nuclear agreement. yield. this year, i would be wary about tehran will "take a step away matt: where would you find adding further into taking on from the deal with global yield? where is the best place to look? powers." igin europe we still like the duration within the once a way for crude portfolio. investment grade or you have i still have a bias towards oil. that ecb support. we also like u.s. dollar better quality. denominated emergency -- i like to still be close to global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 emerging-market sovereign bonds. potential bank liquidity, which countries. means i do like euro credit. that trade going to i liked some of the european this is bloomberg. start looking crowded? bank debt. anna: the trade war between the it sounds a great idea but isn't i like the periphery. u.s. and china is heating up. everyone else doing that as well? say asourse you could i have seen a big rally in btp. the u.s. slapping tariffs on you just pointed out with yields i think that still carries on. chinese imports on sunday. one of the aspects of being at a historic low, these trades donald trump still sounding are crowded but particularly, close to central bank liquidity, optimistic about a resolution. isen that the u.s. economy >> we are talking to china. in particularly the ecb is that the meeting is still on. if you get an escalation in the trade tensions between the u.s. we will see what happens. and china, some of those will be unlikely to ramp up from here, we can't allow china to rip us we have the stimulus and now we hurt by a risk off sentiment. off anymore. we can't allow china to take that will be mitigated by the are seeing tariffs come through. pickupt see the kind of fact that you have the ecb $500 billion a year out of our theying there and i think

country. we can't do that. in economic growth that will it yields start to run away from --a: president trump us. will deliver a wide-ranging matt: do we see package. guy: getting back to the trade story. bloomberg's president with the latest on trade. i am a portfolio manager. good to have you with us. opportunities for european companies out of this trade war? i have run for safety. in terms of looking for say i've bought some duration inflection points, whether expect in the simplest during august. terms that when the u.s. and china get into slapping tariffs i have the trade situation not proper talks take place in improving and i have the dollar september seems to be one of the on each other, europe can take getting stronger. underdog issues. advantage of that. >> that is one of the key nothing seems to be changing in questions. these multinationals seem to be you hear the president sounding very multinational. a positive direction at this point. optimistic about the state of are they too interconnected in those talks but you don't see any evidence. order to be able to benefit? do i sit tight? the trump administration has do i lighten up, do i get into been talking about officials would come to washington here we mark: europe is kind of caught cash? in the middle because of that it is hard to see where i get are in early september and there is no date yet. anymore safety. there is a widening gap between reliance they have on exports. does gold continue? the portrayal of these talks and the actual talks taking place. i am sitting here in september. you will see some uncertainty i've just had a massive august continue about whether the trade and i'm trying to figure out what i like. war is getting de-escalating or escalating. david: certainly within reddit anna: we don't have any confirmation from the chinese as to whether these talks will take strategies, we have been adding place. in the meantime we have seen

-- within credit strategies, we this escalation in the tariffs. have been lighting up on risk including across a number of what are the editorials of the emerging markets and building up chinese newspapers talking about how this is an inflection point in terms of our cash position. underweight in european equities for the u.s. economy. versus the u.s. and versus japan. the largest cast position within europe has had a great run this year despite earnings we are seeing tariffs being imposed on consumers which is expectations which are not as those strategies. strong as the united states. anna: that was the ubs wealth there is a limit to how long you management cio. closer to the voter. coming up, a coalition catching a break this weekend. can sit on the sidelines. do you think this is an we have a look at what is next as they try to hold off the advance of far right populists. this is bloomberg. ♪ inflection point? right populists. this is bloomberg. keeping from running euro ♪ strategies will cost you close brendan: the chinese are trying to make it an inflection point. to 15 basis points in terms of something about president trump having a deposit with your settlement account. is shooting americans in the foot. i think what you are seeing is as well as the opportunity cost every time trump turns the of the carry. beijing,th tariffs on i think you try to get relatively safe terry. you avoid -- relatively safe beijing gets even less willing to do a deal. carry. the effect at this stage that he you avoid the cyclicals. stop that will benefit from is trying to have this tough approach is not working. things where you might have high conviction. anna: trump making those i do think there is some value comments we saw also going on to is chinain his view it within emerging markets. the macro backdrop who is paying. i keep seeing assessments to the is less supportive.

u.s. economy and it is not on a you pick your spots more carefully. , but it does seem to be dollar --ias towards damage being caused. i still have a bias towards brendan: it is a slow grind. dollar sovereign credit. guy: the fed will be a big feature this week. it is not chunks of gdp being to quarterly economic powell will be making a speech friday. any indication that the fed is indicator numbers. not going to deliver will be a it is a slow tightening of the noose on consumers. massive issue for the market. we have 75 basis points priced you will continue to see as more tariffs are applied. in. still a lot to go. the next deadline is october 1. powell has continued to deliver. is he a safety net? again, there's this slow grind downward. david: you are right. tohad the opportunity anna: brendan murray with the latest. meaningfully push back on market let's get the next on trade expectations, at least for the september meeting, and he did brussels. not do so, despite the fact that around jackson hole we had hawks you.to speak to we were talking about the importance of establishing talks who -- i have some sympathy with that view in terms of the u.s. taking place.

economic fundamentals. is that the next milestone to they are going to deliver 25 basis points in september. look for on the tray conversation? right now, the market is pricing starts. been many false more. it is hard to be optimistic i think that gets taken as a disappointment. about the likelihood of any the problem the fed and the ecb development in september. is someone is already in always good to hear they remain on speaking terms. the price. it is always been a game of who it is a meaningfully -- if they meaningfully disappoint, then as will blink first between china and the u.s.. , theyr from both sides you have said, the market reaction will be such that they could be forced into doing even more later. wait longer to get to those when we have had hawks on the ends. the situation in the u.s. is not ecb side pushing back, i'm not that bad in the moment. in china, there's been a sure they realize that if you pushed back too hard, and weakening to the economy. the pmi showed some resilience. pushback against the market, the anna: live from london, i am market will simply up the game. anna edwards with this special it will double down and say you they want to push through and edition of bloomberg markets on do need to. get as much as they can out of this labor day. next time it will be even bigger these negotiations. let's talk european politics. bang at the next policy meeting. the clock is taking her next angela merkel's coalition caught the need to regain control over taking.will be in -- is a breather this weekend and the market expectations, i think party may suspend a search in that will probably be easier for

powell that it is for draghi. next year we will be an election the form of -- year. guy: stick around. here with the details from david riley is sticking with us. we will see. berlin is chad solomon. at the moment, we have not let's get a first word news elections, what update. atlantic the strongest reached the inflection point already. significance did this have for the broader story of german storms ever recorded is almost all imports to the u.s. battering the bahamas. politics? hurricane dorian came ashore are subject to higher tariffs. with 180 mile-per-hour winds and were they were polls that we have the worst case scenario out just before the election 2.5 feet of rain. already. we need to see what will be the showing that the populists were the winds have downtown slightly set to possibly win in one if impact on u.s. come assumption. but now it is a storm surge that not both of these elections. may be the real danger to life. -- u.s. consumptions. the fact of the social democrats the threat to the u.s. is managed to hold on in uncertainty. it could hit florida or up the you say thisting brandenburg. brandenburg is the state that -- was ablerlin and is the worst case scenario. coast later this week, or it the percentages could go higher. could not hurt the u.s. at all. about the damage to the to hang on. that gives a bit of breathing germany, angela merkel's room for the coalition at the chinese economy. national level. coalition got a break in recent election. the two parties turned back at that seems to be well documented of course merkel is in a challenged by the far-right, . we co-pmi numbers. coalition with the social what about the damage to the democrats. which may stave off a deeper u.s. economy. political crisis in the 17 month we have a chart that is one way old coalition government. a warning from iran on the of measuring assessment -- landmark nuclear agreement. recession risks. had both of those parties lost

in those elections, that would tehran says it will focus -- it the one i am looking at is the have created more discussions in will take a strong step away the coalition about whether they difference between a conference would continue one at the from the deal. board measure and a university national level. that if europe does not offer of michigan measure. we have been hearing from party iran new terms by the end of the this is cigna cling something leaders today. that could indicate recession. week. the country once a way to sell there are many indicators out everyone saying this has to be a wake-up call for these parties its crude oil on the global market. there. u.s. actions have stopped those that are in the government and sales. poland hopes for an agreement on at the moment we have the leader >> the u.s. economic engine expanding the u.s. military presence there by the end of the of the christian democrats remains consumptions. year. monitor a lot what is happening the president of poland and vice on the consumptions side. speaking and we are likely to president mike pence discuss the hear more from her this issue. afternoon on the way forward for resilienten a very her party as well. in june, president trump agreed anna: just in the last few to send more u.s. soldiers to u.s. consumer. poland. that is seen as a sign of we have seen that the impact of saying, the cdu's leader pushing back against russia. global news 24 hours a day, on the trade war has been in the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more corporate world. than 120 countries. they did not meet the expectations. pmi and this will also done in thoses. even in favor of they take these results very this is bloomberg. guy: thank you very much. seriously. breather for them in the coming up, factories from europe physical environments. governing coalition as you say to asia feeling the pain under corporate is and the u.s. trade war. because may be rise of populism, how german and u.k. maybe it is not gathering investing in the economy. momentum as quickly as it had manufacturing took a turn for the worse this past month. been but we see a very big .he buyback their own shares

populist presence in germany in all of the data looks grim right now. we will go through the numbers, these elections. at the moment, we acknowledge remind us how quickly this next. this is bloomberg. ♪ phenomenon has appeared. recession risks have increased. chad: this was a party that was we are still not seeing a recession unfolding in the not present a couple of election coming month, as long as the cycles ago and now the fact that u.s. consumer remains resilient. they almost won in both of the states is a real wake-up for market.ob these parties and if we look at the social democrats, they were recognizings into governing in brandenburg. consumption. also looking at the sentiment of if you look at how they did in the u.s. consumer towards what sexton east, they scored less than 8% of the vote. is happening in rushing 10. that was their worst showing in -- in washington. a state election in the postwar where pew research -- we have history in germany. research. certainly the social democrats while they did squeaked by, anna: ok. there is going to be a lot of discussion within the party in the coming months about their vincent you ends, he six with us. way forward as well. coming up, boris johnson warns they are said to have a review later this year. of revenge on any tory who votes against his government. this is bloomberg. this will all be part of that

♪ discussion. anna: thanks very much for the update, chad thomas. us, thank you for waiting patiently with us. i want to ask about the weaknesses and problems of the german economic model. it has been well documented, the way it is kind to global trade. regardless of the politics, is there anything the german government can do to take on these trade winds they have blown toward the country. ? theefinitely talks about possibility of a solution in ,urope, not only germany whether they do it or not will depend on the agreement in the coming months but that is definitely part of the solution.

away for the car industry and a way to put more focus on consumers and the fiscal stimulus in germany has the means to do so. you see that the most recent muchout of france is better out of germany. guy: from london, i'm guy johnson. bloomberg markets. -- to meet -- let's talk about the markets. over to emma chandra. emma: global stocks mixed. [indiscernible] we are not getting the full picture because it is the labor day holiday in the u.s. these are probably the area s&p futures did climb ever so where germany should look for briefly into the green, but it was fleeting. down .3%, mirroring what we saw , we havehis trade war happen in hong kong, closing down .4%. not solved our own trade disputes with the u.s. and europe staying in the green. .5%.toxx 600 up by europe is negotiating with china

as well and we should have an agreement somewhere in 2020. the real story in european stocks is in the u.k.. if the trade situation is going 100, we can ftse to stay with us for some time, we need to redefine in the see how that is climbing, meantime. monetary policy could be part of the equation. climbing for the fourth straight we will see next week with the day. anna: live from london, i am ecb meeting. this is a reaction to what we have been seeing in the pound anna: we have seen a bit of falling .6%. pushback from some northern ecb anna edwards. officials as of late. this is a special edition of there is that inverse correlation between the two and bloomberg markets. we will see what fiscal policy it is all largely to do with the boris johnson's plans to take brexit drama that seems to be can bring us. written out of the european coming to a head this week. union with or without a deal will be tested in a time crunch it means we are not as focused in parliament. vincent is staying with us. tomorrow the opposition labour on good trade narratives in the party will present legislation we will tell you how to make of $47 billion in lease market. will -- which will force the let's go to a chart that shows u.k. to delay brexit. you where we are now. the redline, where we were liability. this is bloomberg. if an agreement has not been ♪ --ched, boris johnson has before, the tariffs added on september 1 is the greenline and these are the tariffs we expect to get in december. we should get a better picture emma chandra. of the market reaction to that tomorrow. boris johnson will be speaking tomorrow. finally, if you want an we can expect that. indication of the market, we

should take a look at gold. we can expect the labour party we are seeing the gold price and other opposition parties to launch some kind of legislative rise to around $1500 an ounce. attack on the government. this chart showing gold etf paint a picture. inflows. emma: mp returned to parliament they have risen the most since tomorrow after their long summer 2013. european -- guy: recess. what we saw on the past week is that parliament will not be suspended again. factories extending their slump in august. the german manufacturing sector a lot of mps especially those who oppose a no deal brexit took contracting for the eighth straight month. issue with this idea of a long the headline measure for the u.k. dropped to its lowest suspension. level. reaction in the pound on that one. we are back with david riley, what we are expected to see is for them to say legislation will be introduced across party mps chief executive strategist at bloomberg asset management. big.aid the ecb will go who oppose a no deal brexit to try and prevent boris johnson how much of that is priced into buns and how much is priced into taking britain out of the -- david: there is still a lot of european union without a deal at what we are hearing is they will coalesce around a law that will uncertainty around the nature of the package the ecb is going to require boris johnson to seek an deliver. extension if he cannot reach a a lot of uncertainty about the deal for leaving the european size of the rate cuts, whether they introduce tearing -- union by the current deadline is

october 31. a lot of back-and-forth this tiering or not, whether qe be weekend. a group of opposition mps and some regulatory mps try to take immediate, and around the nature of the forward guidance. control of the parliament in whether they say we will buy 30 debate this bill to prevent -- billion euros per month and see how things look or will they to require the extension. tied explicitly to a convergence of an asian towards their targets. still a lot to play for. anna: emma, thank you so much. we saw pushback from ecb hawks let's get back to our guest. on friday. that gives me more confidence we will get a package. talking about brexit. today we see the pound is weaker. looking at some research that they are pushing back. talked about technical strong david: exactly. pound this week because they see i do think -- how much of that some of the politics playing in is priced in? the rebel direction. clearly a reasonable amount is what is your assessment of where the pound goes from here? priced in terms of a rate cut. anna: live from london, i am something like 13 or 14 basis points. vincent: very uncertain. more than 10. anna edwards. ere is a chance they do 20 timeframe bloomberg business flash.

we really at the moment don't -- time for a bloomberg business bps. want to take two directions. flash. >> casino revenue in the world's either on the balance on u.k. ande likely to do tiering, assets. biggest gambling house fell for if they do it opens up the we need clarity. the second month in a row. likelihood to go further into negative rates. we are long-term investors. revenue declined almost clearly part of the rally has 9% in august from a year ago. we think itas been qe related. happens in a week like this. they are facing headwinds from those protests in hong kong. i do not think that is all in the price. we would be afraid to take two also regulatory uncertainty. if you get a period of relative bold bets. london's cutting down withlity in italy combined data -- we had data outside role in the global insurance industry. sovereign qe -- on the manufacturing weakness in as much as $75 billion of business is shifting to rival guy: that is a hard combo. the u.k.. david: that will be hard for it can be tempting to draw a line between that and brexit but i think good company. financial centers in the european union. investors to avoid. guy: standing here now, do you i have a chart that shows the weakness in the pmi story think the most likely trade is alongside other areas of the you want to buy btp's? bloomberg has learned that dubai a big liquid market. world. how much weakness is being inflicted by brexit? has stopped working one of the you get that plus qe. world's largest airports. construction activity has been business investment, consumers? i think we could go back halted and finances for where do you look? vincent: the u.k. was one of the expansion have been frozen. towards heading towards 100 this --economy grew basis points in terms of the

spread. best-performing if not the best last year at the slowest pace that is where we could get to. performing economies in europe since 2010. that is your bloomberg business have quite an active for brexit. flash. anna: thanks very much for that. a fast-growing purveyor of overweight in btp's. shared workspace going public, clearly a lot of this is brexit. uncertainty is killing. at different times we have the filing shows some important insights. we see business investment but how to make sense of the $47 also retail spending bit of data billion in lease liabilities lightened up a little bit. spending quite low. that wework disclosed ahead of you're supposed to be disciplined and take profit and its ipo. then look for a reset. the uncertainty is quite huge. tourists coming less to berlin, i loved fundamentally, right now, that is a place where i would like to europe. your piece on the program be. places like greece, i think some level of uncertainty for because there is nothing more that we like than to talk about -- a lot ofs which there is still room to rally balance sheet liabilities. wework takes on the debt so that . guy: talk about european equities. their clients don't have to. what encourages you to buy european equities? it is flattering, the if the ecb does this, how will brexiteers agree on one point is that brexit would be difficult balance sheets -- it help the economy? david: that is a profound >> a bit of a complicated tale for the british economy. skepticism being reflected in but it boils down to this. pricing, in the performance of the euro, the flattening of the wework's prospectus contained whether or not this will be yield curve. if the market was frightening qe long-term, but it is for u.k. very large numbers of rapidly coming. you can -- short-term we see the growing revenues but also

damage already. rapidly growing losses and cash burn. -- was pricing in qe, we should brussels.are in a chief reason for that is it see breakevens. signed up to a number -- to a we should see a steepening of i wonder, your assessment on huge number of leases. the curve. we have not seen either of whether we will see any change those. in tax from the eu 27. money it has to spend on rent in the coming years. there is a catch and it is a whether there is a chance of a potentially helpful one for the market pricing is coming, wework and its clients and it is deal? guess the latest but we do not believe it will work. that as of this year, all official opinion we got on that companies around the world are on that basis, i would personally not be invested in was during the g7. having to start to disclose on european equities. their own balance sheet their guy: stick around. we need to talk brexit. european leaders really lease liabilities, things they -- theed convictions of we have not talked about the u.k. much yet. have rented that traditionally david riley be sticking with us. this is bloomberg. is likelye agreement used to sit off the accounts is ♪ now coming on their balance companies ask to change. , their emmanuel macron themselves do we want this because it might start to make some of their key metrics look bad. wework highlighted the fact that meeting. eventually, short-term leases i don't expect europe to really change much. won't be part of that. you movepulation when that might be a good reason to sign a wework lease and is something that wework's rival it all surveys about whether or not the eu should be more open for

has also been talking about. the: give us some sense of negotiation and really give the mandate for european leader to size of these liabilities on the wework balance sheet. change dramatically. i know you put them in some perspective along with big names europe wants to avoid a hard from businesses that have been around for decades and yet this brexit. there may be some last-minute upstart has managed to concession. accumulate large debt of this it will be difficult to find a variety in a short space of solution. time. >> indeed. irish prime minister you expect large energy saying there are two possible companies, retailers, armor see dates with meetings with boris johnson. we will wait and see. chains are very large for lease liabilities but wework has come vincent stays with us for a little bit longer. amassedd very quickly still ahead, dorian is devastating the island of the bahamas. ubs says the storm will cause an in norma's amount of debt -- $25 billion. enormousma's -- an the human cost could go beyond that, of course. more of that on bloomberg. ♪ amount of debt. it is inherently a big risk because they signed up releases yet many of the customers -- they signed up for long leases

yet many of the customers signed up for short leases. the effective -- they effectively take the balance sheet hit so their clients don't have to means that more customers might be tempted to sign up for a short lease and therefore wework is forced to disclose these liabilities but the customers don't have to. anna: it is fascinating to see how wework is trying to reinvent the sector. we had a business in the u.k. called regis for a while. to re---s trying now it has become something of a darling. we will see, i suppose as you head up to the ipo. >> yes indeed. guy: from london, i'm guy iwg, -- the spotlight johnson. this is "bloomberg markets." time for the bloomberg business flash. deutsche bank's ceo is making has shown on the sector. iwg's valuation, much smaller good on a promise. he will invest 50% of his monthly net salary into bank

than the sort of numbers they shares. talked about in relation to that started with a $24,000 wework even though it is investment on august 30. revenue. it remains to be seen whether launched deutsche bank's that kind of impact will be felt. anna: thanks very much. largest overhaul in years. a fascinating insight into wework and that sector. it involves job cuts. norwegian air struggling to stay coming up, we are joined by the alive and aloft. delay.count carrier -- a ceo and chief markets are to just at longview economic. we will talk trade. ♪ norwegian is offering landing and takeoff slots in london's gatwick airport and -- the airline has been selling off air lines, raining in expansion plans. that story about the takeover as we work our way. that is your bloomberg business flash. let's take a look at what is happening with the pound. under pressure. today, less to do with what is happening in parliament, which kicks off tomorrow, and more to do with the data. investors are bracing for a big week. show down tomorrow between rebel

anna: live from london for this u.k. lawmakers in the conservative already and boris special edition of bloomberg markets, i am anna edwards. johnson. boris johnson potentially making one of the biggest business stories in the news. a statement in the house of >> good afternoon. commons tomorrow. we will monitor all of that. the papal is trading down .1%. another sign that norwegian air downe cable is trading struggles to stay alive. repaying.delay and .1%, sending the ftse higher. this is bloomberg. in exchange norwegian is ♪ from the couldn't be prouders offering two flights at london's airport. they line has been raising new equity. american airlines has joined other carriers and removing the boeing 737 max 8 from its schedule. american has canceled 140 daily flights to september 1. -- reportedly complained that boeing hasn't answered questions about the modifications. flash. your business

anna: hurricane dorian hit the bahamas with record strength winds devastated the chain of islands. whether it will hit florida is uncertain but dorian has been tied as the most powerful atlantic storm. joining us is brian sullivan who can give us some insight into from the 5am wakers, the trajectory of the storm and to the 6am sleepers. the expected strength. everyone uses their phone differently where is it now expected to make and in different places. landfall? if it does on the mainland. that's why xfinity mobile created a wireless network that auto connects you to millions of secure >> that is up in the air. wifi hot spots. and the best lte everywhere else. what the storm is doing is xfinity mobile is a different kind of wireless network slowing down to a crawl which is designed to save you money. bad news for the grand bahama save up to $400 a year on your wireless bill. island because that is where it is sitting over right now. plus get $250 back when you buy an eligible phone. northeast of click, call or visit a store today. freeport, bahamas and 120 miles away from west palm beach.

anna: that is where it is at the moment. what is potentially in its path as it hits the florida? brian: the thing meteorologist are looking at is speed of dorian. it is crawling at one mile an hour and that is good news for florida. of course it is bad news for the bahamas. what that means is the forces that have been pushing dorian to the wait did we just win-ners. across the atlantic are weakening and collapsing. everyone uses their phone differently. this means that dorian will that's why xfinity mobile let's you design your own data. probably start to creep up to the north and run parallel to now you can share it between lines. the coast. mix with unlimited, and switch it up at anytime this also doesn't mean that so you only pay for what you need. florida is out of the woods. anna: it is 1:00 p.m. in london. it's a different kind of wireless network designed to save you money. you don't have to have a direct save up to $400 a year on your wireless bill. i am anna edwards. plus get $250 back when you buy landfall in still have quite a good morning and good afternoon. as the trade war heats up, china a new samsung note. .it of damage click, call or visit a store today. trying to downplay the new round of u.s. tariffs on chinese imports. with custom gear.s us motivate our students we discuss the fallout. we love how custom ink takes care of everything we need anna: let's get to the focus on so we can focus on the kids.

the insurance side of things. - [spokeswoman] custom ink has hundreds of products what is bad news for the bahamas u.k. prime minister boris johnson calls a meeting of his to make you look and feel like a team. cabinet is a crucial week for and better news for florida in brexit begins. upload your logo terms of the path? or start your design today at customink.com ons it have an impact insurance businesses? >> definitely. in terms of economic losses and welcome to the special edition human life and what is happening with the bahamas is awful. perspective,e loss of bloomberg markets for the labor day holiday in the united states. enjoy the holiday if you are celebrating. the insured values are not very high in the bahamas. this is the picture we see on european equities, up by half a percent. minimal. the worst case scenario, a the ftse 100 doing even better. direct hit on florida seems to we do have a list of defensive guy: from london, i'm guy be off the table. some of the higher -- not going stocks doing well this morning. johnson. let's get a bloomberg first word it is not a very risk on news update. >> in the bahamas, authorities morning. to come to pass. call the damage from hurricane dorian devastating. we also should point out that the pound going along with the island with of the ftse 100. anna: the latest on the direction of harvey and the 1% pound down seven sense of 180 mile-per-hour winds and dumped 2.5 feet of rain in some expected trajectory for the -- 7/10 of 1%. surge couldorm storm in the latest on the devastating impact already having on the bahamas and what

it could do to florida. will keep watching the brexit reach 23 feet. the question now is where does dorian had next? news flow. the hurricane could hit florida or the carolinas later this week? will -- still ahead political other assets, a little money going into gold. the oil price fairly flat. a fire on the coast of southern unrest in hong kong continues. california has reportedly left if dorian is going it's 13 straight weekend of dozens dead. protest disrupting airports and to skip some of the key train lines. 34 people have died in the more on that shortly. infrastructure in the oil blaze. industry in the gulf of mexico. the asian session in general the coast guard says it is involved in rescue operation but could not confirm there been that hurricane not a story for deaths. the oil sector. down by .4% but there is a lot that is what we see on these in texas, the man who shot seven markets right now. was a manhoodh the dollar up for a sixth of money going into the shanghai markets. consecutive day. .4% as the community and just been fired from his job let's check in on the "first word news." >> one of the strongest atlantic earlier. the shooting began when officers hong kong suggests another try to pull him over for a storms ever recorded has traffic violation china is violent weekend. striking back at new u.s. devastated the bahamas. this is bloomberg. tariffs. hurricane dorian came ashore ♪ with 180 mile-per-hour wind, two tariffs are aimed at the and a half feet of rain and a heart of president trump's storm surge up to 23 feet. political support. farms and factories in the midwest and south. beijing retaliated after u.s. dorian has tied the record is tariffs on $110 billion of the most powerful hurricane to chinese auto took affect. hit land in the atlantic. dorian could hit a or further up global news 24 hours a day, on air and @tictoc on twitter, the coast later this week for powered by more than 2700

journalists and analysts in more than 120 countries. not make landfall at all. this is bindeed. china is retaliating for the trump administration's new tariffs. bloomberg has learned worst johnson will treat a vote against a note yield brexit in beijing responded by imposing tariffs on $75 billion of u.s. parliament this week as a goods. no-confidence vote. that could pave the way for a ofstrikes at the heart general election. spokesmanofficial president trump's political support, factories and farmland said the prime minister does not in the midwest and south. want an election. an agreement on expanding the joining us with the latest is bloomberg's jess shenkman. it does seem as if we are u.s. military presence by the end of the year. heading toward an election. if you look at the landscape of the issue at a what is going to happen this news conference. week, how do you think it will end? in june, president trump agreed jess: that is the million-dollar to send 1000 more american soldiers to poland. question. there are already 4500 their. we do not know how it will end. there is a group of potential it is seen as a sign of pushing tory rebels, people like philip back against russia. a warning from iran on the landmark nuclear agreement. hammond who look increasingly tehran t deal like they would vote against boris johnson's attempts to push with global powers. that is if europe cannot offer through a no deal brexit. he is treating it as a

iran new terms by the deadline of the end of the week. confidence vote. the country once away to sell he is saying there is no difference. whether they win or not is the its crude oil on the open market. question. u.s. sanctions have halted those there is another question we sales. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 have, which is people are countries. suggesting that perhaps he could scrap the week and call on election himself. if we are headed there anyway, this is bloomberg. anna: thank you very much for why not be the one to call it. that. top story around trade, the morning, jeremy corbyn was trade war between the u.s. and china heating up. in manchester. the u.s. slapping tariffs on chinese imports on sunday, it feels like we are in election territory. coming just after a day after guy: we are heading toward a 12% increase in general election, it seems. toterms of how this is going the manufacturing purchase index. our guest, good afternoon to will affect the brexit process? you. chinese pmi numbers, paint a picture for the extents to which if we end up with the prime minister calling a general these trade -- election, what happens to the timeline? >> it is painting a pretty how is it all work? negative picture. -- how does it all work?

over the weekend we got these jess: the tory rebels are manufacturing pmi numbers and that index dropped which puts it looking at some kind of motion this week which would seek below the dividing line between another extension to brexit. expansion and contraction and we do not know how long that the same time the sub gauges would be, but people are talking about a couple of months. jeremy corbyn's manifesto would have shown a drop in domestic and overseas orders. say we would commit to having a we have a set of numbers from a second referendum. then you have a second vote, and private provider of pmi numbers that is where this starts to and that one which is more unravel because if you had an focused, that one did rise to 15.4 in august from 49.9. extension, how long would you need for an election, or would you leave it for a second in general that rise was driven referendum? guy: if boris johnson loses this by the production side rather than the demand or business boat, the october 31 date sentiment. overall it is still a negative picture. anna: pressure on the economy and we will have a general election between now and either way you look at it and that is the focus. christmas, with a likely three-month delay to the brexit process? david: and the question is how any change in stance from the ama: live from london, i chinese authority? much would -- jeremy corbyn was it did not seem to suggest saying a general election would anna edwards on this labor day anything would be changing very help the people decide brexit. special edition of bloomberg soon in terms of their stance that is the question at the markets. we are up by a half percent on moment.

with the u.s. and they might be the stoxx 600. focusing on supporting the boris johnson has a majority of byhave been driven higher chinese economy more. justina: it seems like from the one in parliament because another party is propping him up. chinese editorial they were what a general election throw utilities and drug stocks doing focused on shrugging off the the cards up in the air and give pretty well on the function when latest tariffs, tit-for-tat. someone else majority? you run that suggesting a possibly not. they were saying that the impact defensive nature to the rally. will be more on the u.s. it could mean jeremy corbyn having to form a coalition with consumer rather than the chinese economy. at the same time we did have a another party. it will not answer the question. signal coming from the state also the fact that we see a capital -- the state council we have a second referendum that weaker pound that tends to have which is that china will maintain reasonably ample we could see maintain wine, but a negative correlation with the it could be 42-58 the other way. stock market at least at the liquidity as well as reasonable ftse 100 level. growth. that would not show the we also see the dollar up for chinese stocks its sixth consecutive day. country's anymore decided that it is currently. guy: if they do not achieve this outperformed as a result, up by the gold price 1.3%. , what happens? if the rebels do not achieve to illustrate we are not entirely risk on in this european session. lee with thea success, what happens? david: boris johnson -- jess: gold prices are going higher. latest on the trade war. -- borisnson that chris, good to see you this let's check in with the bloomberg "first word news." afternoon. bahamas, authorities johnson has his eu summit in the trade war ramping up once october. again over the weekend. there'll be more attempts to thwart him. call the damage from powerful more tit-for-tat and trade that is what we saw when theresa hurricane dorian devastating. tariffs. may was in government. our guest last hour was talking dorian pound of the islands with repeated attempts to try and stop a no deal brexit. about how we may have reached 180 mile-per-hour winds and peak tariffs because so many anytime boris johnson will come

imports from china into the u.s. to parliament with legislation, dumped all -- and dumped up to two and a half -- two and a half but i suppose the percentage they will tied take control, feet of rain. could always go higher. which is why this government has chris: and you never know where the question now, where does gone past parliament to try to trump is going with these policies. it is quite clear we are in a dorian head neck? avoid having any of that happened. it could have -- it could head long duration tariff guy: thank you very much, up the coast later this week. tit-for-tat. indeed. it is hard to see a closing up china is striking back at new quickly. you listened to that. u.s. tariffs. doesn't make you want to buy the it is rolling out duties on $75 i think central bankers are adjusting to that and obviously pound? jay powell talked at jackson does it make you want to run billion of u.s. imports and away from u.k. assets? hole about settling problems but david: no. those tariffs are aimed at the heart of president trump's he can't support the economy and bluebay had a long-standing you can get more stimulus and that is coming from the chinese short on sterling that we have support, farms. as well. but a weaker so ago -- that we ago cut a week or so anna: there were some because we do think a no deal in texas, authorities say the man who shot seven people to expectations and maybe the exit from the european union is who hads a truck driver chinese authority can support being meaningfully priced, so it things there. from it much less been fired from his job a few what is your assessment of the damage this is doing to the u.s. hours earlier. economy, numbers coming from the west texased two investors point of view. budget office saying that by your discussion was just towns with an assault style rifle. highlighted, we are now in a ,020, a 0.3% decrease to gdp officers tried to pull him over situation where we have very elevated levels for how things for a traffic violation. but is a big number in the -- in the next five days could shape play out. an economy the size of the u.s. i agree that the most likely

the history of brexit and change the u.k.. but it is still incremental. eadcome is we are going to h tomorrow, the labour party will chris: it hurts because there is present legislation that would force the u.k. to delayed brexit again if an agreement has not pricing pressure and margin into a general election. been reached. even that path is not prime minister boris johnson is pressures for companies that import a lot that people straightforward because who is threatening to kick out some exaggerate the effect. going to ask for the extension? a lot of companies are very conservative members of the capable of switching sources i am not sure prime minister party and vows to take the u.k. very quickly. johnson wants to argue for an some have switched over night as extension. out of the eu at the end of in some respects he might want the rebels to deliver a defeat october without a deal if soon as the problems come from necessary. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists china to other markets. so he can say i've been and analysts in more than 120 a lot of global retailers all countries. frustrated by parliament, so over the -- source all over the world. this is bloomberg. some of them are very efficient this is clearly a people versus parliament. kong whereo hong and then he calls a general at re-implementing and changing the supply chain. election. then he has to get two thirds apple is a big company and it another mass weekend protest support with in parliament for makes a lot in china but i think that. caused major disruptions to rail it is -- anna: how do you see the trade you have issues around the systems before very heavy rain tensions developing into 2020 timing of whether a general election will take place. and did the demonstration. councilutside the city and getting closer to the elections? do you think the chinese just how long the extension would be headquarters. need to hold their nerve and as well. thank you for being with us late there are complications. push trump closer to the into the day. election and see what happens? chris: that's the thing. when you go to a general let me ask you what has been election, given where the polls happening today. it is a game theory story. of mood was tense with a lot , how does that pan out?

the chinese economy is under protest activity and disruption pressure and they need to stimulate more. taking place. what is the mood like now? it seems like the that is a hard call. trump to pass?r temperature has been dialed up a it has become much less couple of notches after the asymmetric toward the downside he may or may not. on sterling in the near term. violent images we saw over the boostrump want a big investors are positioned. weekend and today it seemed like it kicked off two weeks of before the election and will if we do get a parliamentary therefore do a deal? it is game theory. vote this week, it does ensure boycotts and rallies organized by student groups to mark the the government to extend article who knows what will happen. first day of school. anna: it seems in education and to sustainessage was 50 heading into a general election, we probably will get a game theory could be very bit of a pop in sterling. the momentum they have built here and not continue to back useful. you would have to look at that education in game in a more tactical than a down given the fact that beijing's strategy is to wait fundamental. for the summer vacation to be theory could be very useful. over for things to start you took a three-month low fizzling out. it was a violent weekend, one of logic in thehe on sterling cable. david: i've liked sterling the most chaotic we have seen likes of google, microsoft, since this move it's -- since volatility for a while. amazon, facebook, they are not it should be higher. this movement started in june. guy: i think it has gone through going to get caught in terms of tariffs per se. 2016 highs. chris: i would not buy i.t. david: not only do we have a there were running bounce stocks right now because they between police officers and protesters. situation where the uncertain we saw a riot police firing have a very good run and are the -- we have the pmi falling pepper spray inside trains.

very -- and are overbought. off a cliff. is a global the u.k. is the only major it went all the way to the airport and disrupted traffic advanced economy where does not there as well. portfolio that is very defensively positioned. a couple hundred flights were have inflation expectations too delayed. anna: is anything changing low. people have been buying utilities and also tech stocks. it has inflation expectations being too high, a problem. behind the scenes? is anything changing in terms of i think what we will see now is a bit of a cyclical upswing in the protesters demands or in you have not only brexit but terms of the way hong kong is the global economy. this slowdown is starting to also radical proposals from both ease and we are string to see a being controlled by the hong kong authority and the level of sides. re-acceleration which means you government,bor led support from china? leaster: it seems like at should be buying industrials and materials. anna: it is hard to see a which a lot of investors are worried by. catalyst for that upswing but the key demands from the militant hard right looking at pmi numbers, it protesters have not changed and brought up some questions. we have not seen the government chris: the catalyst is simple. conservative already. budget at all when it comes to it does not look very markets have many cycles where appetizing. making some kind of resolution. sterling credit has been trading we heard from the government and curves adjust. wide of european credit. down, that has come guy: let me ask you a question. police in a press conference and they continue to defend the housing is picking up in the if we had a hard brexit, you u.s.. christhanks very much, think gilt will go negative? actions of these police officers and say they have already shown a strong restraint in the face watling from longview economics. of the tax. sure how easy it the government also saying the president argentina's police are among the finest in the region. imposing capital controls in will be for the bank of england

that is not going to be boding hopes of containing the well for the protesters. country's escalating financial to be as aggressively easy as crisis. this is bloomberg. it seems like the mood has ♪ other major central banks when changed ever since the activists were arrested on friday and that the only policy anchor left in is what provoked people in the the u.k., the government of streets this weekend. either persuasion looking to you are the latest from hong ko. increase spending and cut taxes, how in that situation the bank of england should be able to cut as aggressively as other situations. we are talking about negative feeling debt the euro. it is -3% real yields. why do i want to buy that? i would not be a buyer. guy: there plenty of those managers out there. you talked about em a couple of times. are you surprised we have not had more contagion? david: i did think we would get more contagion from argentina.

investors have been looking at it is argentina, it has a track record. we all should have known better. what has been supportive for the asset class is we have not seen outflows in the asset last because of the losses incurred in terms of argentine assets. part of that has been we are back to the rally in treasuries. if you've been holding emerging-market dollar credit and went over in terms of your exposure to argentina, and a lot of the money is in passive form, anyway. upn argentina is not showing in terms of your p&l because it has been offset by the rally in treasuries. , peoplely in duration still looking for some pickup in

yield. it continues to be a shelter for the broader asset class. guy: the dollar keeps getting bid. how much higher does the dollar go? does it keep going? david: i think the dollar is getting bid because of the i am live from london, concerns around global growth, anna edwards with this special which is more than offsetting edition of bloomberg markets. what is being priced in terms of intervention,ay the fed in terms of rate cuts. the idea that u.s. assets are argentina's president imposed capital controls in a blunt still there, and then the assets policy reversal aimed at containing the country's , which from a risk interview escalating financial crisis. you want town. it is hard to see how we do not stop a backdrop where we get a $3 billion drained out of the foreign currency reserve on thursday and friday. joining us now from dubai, stronger dollar. i stop that stronger dollar bias. justin carrigan covers emerging i think president trump have markets for bloomberg. something to say about it if it goes too far too fast. guy: i think he already has. a very complex fast-moving development. this seems to go against everything we know about the we will see much more he has to say. president. thank you for stopping by.

he is the guy who came in in david riley, bluebay assets cheap investment strategist. 2015 and talked about dismantling capital controls. coming up, hurricane dorian devastating the bahamas, likely this must be a british -- this to cause 25 billion dollars in must be a pretty bitter pill to swallow. losses for insurers. reporter: exactly. we will get the latest, next. irony, theltimate this is bloomberg. ♪ man who came into office very much with the agenda of removing capital controls, with breaking the cycle of previous administrations, he was the one who oversaw argentina's re-access to the global capital markets with a 100 year bond a couple years back, very well subscribed, very well lauded around the world and now this, back to the old desperate stakes, capital controls, the looming possibility of a default on debt and ultimately perhaps only a couple months away, the

populistment of government. anna: just briefly, is this going to work? what impact is this going to have? briefly: it could work to stop the drain of foreign-exchange from the country but then you face the possibility of the emergence of a black market for people looking desperately for foreign ultimately problems in terms of imports, how much can argentina afford to buy? you will get shortages around the corner. desperate times. anna: desperate times call for these desperate measures. thank you, justin carrigan joining us with the story out of argentina. still with us, chris watling, longview's chief market strategist. the central bank in argentina losing foreign reserves.

at this point the white circle, the most recent crisis starting with the government routing primary elections. -- as justin was just saying, the 100 year bond they issued under new leadership supposed to be a clean slate, a new story, a new face and voice for the argentinian economic project but it has not changed anything. chris: it is really sad because when i thought he came in -- i thought when he came in, that he would deliver a better story. argentina has always been about controlling the money supply and it is sad to see this happen. i think capital controls are quite sensible. it is a new way of thinking about life. guy: from london, i'm guy that was put to one side a few comesago and if the imf johnson. let's talk about the weather. hurricane dorian hit the bahamas with it, the politics are not really going their way. with record strength winds overnight, devastating the

it is not good but i don't think islands. it is the end story in general whether it will hit florida is still uncertain. because argentina has been specific. tied is thelready anna: tell me about the ef story most powerful electric storm to . hit land anywhere. joining us is jim rumor, you say that some of those correlations are typical ones meteorologist and president of you have seen that have broken best whether who joins us to down. chris: this whole e.m. is give us a sense of what happens next. it looks like dorian has stalled basically a liquidity place. over the be hamas -- over the bahamas. global cyclical acceleration what does that tell us about brought about by liquidity and where it may or may not make when you see a lot of the pretty landfall in the u.s.? coming in the markets, gold is a some friends we great indication of that. cannot even get a hold of. and we see a lot of gold the last when the strong was in price strength. chris: tons of gold price 1935. most computer models i have's been take this about 25 to 50 strength. relates to this trade miles offshore around the palm war story because the other thing the e.m. tends to call beach area. the good news is this picked up quite well is trade growth which speed tomorrow and goes off the north carolina coast by is being impacted by this. wednesday or thursday and there a lot of em's feed off of china. anna: a lot of confusion about will be devastation from high winds and heavy rain along the what the dollar does. florida coastline, but it will

not go inland. tensions global it could have been a lot worse. guy: it looks as if the effects pushing people into the dollar. chris: and the fed cutting much on the bahamas have been white dramatic. slower than everybody else. verynk they have got to be they do build the buildings there to withstand very high wind. selective in e.m. at the moment. this has pushed the record anna: thank, chris watling. books. what we know about what has still ahead, political unrest in hong kong. the city had its 30th straight happened in the be hamas in terms -- in the bahamas in terms weekend of protests. of rainfall and windtalk us thr. this is bloomberg. ♪ winds of over 210 mile per hour gust. as this moves to the north and categoryweakens to a 4, which is still devastating, because of some sheer off the east coast of florida. if this went inland like many other hurricanes, this could be a lot worse. i think we will be spared the most devastating effects. has been dubbed the

plywood state because of all of the destruction of homes because of climate change and global warming since 2004. we are not out of the woods yet. there could be other storms the , then forest fires devastation is creating a lot of carbon monoxide and dust in the atmosphere that could reduce the hurricane season, maybe in the southern atlantic and gulf coast. we will keep our fingers crossed and hope that has a positive effect. the amazon rainforest is where we have 20% of our oxygen, it is being devastated. if there is a saving grace, it could reduce the hurricane season. readthe numbers i have relating to hurricane dorian are incredible. are the storms getting more and more powerful? are we seeing climate change

more broadly starting to produce bigger weather affects in this region? jim: i certainly think so. when you think about carbon monoxide, where will he go? it goes into the oceans or our air. our oceans are getting warmer. houston, irma, katrina. you have to go back to see other hurricanes that are strong, not five category five hurricanes in four years. that has not happened in history. partially,that london, i amom global warming is an influence on having the storms more anna edwards with this special frequently, the stronger storms, edition of bloomberg markets. the stronger storms come and more catastrophic. i think florida will escape the 1:19 in london. worst of this with hurricane-force winds 80 to 90 mile-per-hour from palm beach to delray. 8:19 in new york. 150 mile-per-hour winds will be let's talk about the markets a little bit now and the market probably offshore at this time. guy: thank you for spending time impact we have seen from the

hong kong protests. for a 13thgathered with us and keeping us updated. jim rumor of best whether. still ahead, the biggest straight weekend rally causing european buyout firm listing in 25 years. we are talking eq see partners planned ipo. major disruptions to the rail this is bloomberg. ♪ system. let's get some insight into what is happening in the markets as a result of this. emma chandra joins us on set. emma: weof the -- heard today that revenue dropped for the second consecutive month . it was worse than had been expected and was the second consecutive month we saw that drop and we are seeing some reaction in the stocks of course , trading earlier in the day also looking at south china and also falling very much in the red today. protests have led pete -- have led people to stay at home and

they disrupted transportation and visa applications for chinese hoping to come over to hong kong. it is not only that area that has been impacted. retail sales for hong kong inrnight -- double digits july. you can see that here on the bottom panel of this g chart. about -- have collapsed by 25%. we should be able to show you how that has reacted in some of the european stocks. group down some 5/10 of 1% and other lecturing names also falling today. anna: thanks very much, emma chandra with the latest on the retail sector and the impact we are seeing on the economy in hong kong. ,till with us is chris watling

longview chief can -- chief market strategist. the geopolitics involved here, do you see this breaking in any way? is anything going to change in hong kong? chris: whether things change or there is a lot of expectation for hedge funds that is going to break. guy: a bit of breaking news coming out of saudi arabia. i think in hong kong's case, it thecountry appointing aramco chairman. is 2 -- it is too political. this is part of the process economicand there are unfolding in saudi arabia. problems in hong kong but it seems to me the chinese economy and the chinese situation, they when he took over, he basically are big enough to deal with it on their own and therefore they took on responsibility for decide when the peg breaks. energy policy and mining and anna: there is a great deal of other aspects of the raw material sector in saudi arabia. not these portfolios together. saudi arabia -- brought these firepower behind that hong kong peg.

portfolios together. saudi arabia and the brown who is going to test that? from: it is also the case prince breaking those apart. -- and the crown prince breaking those apart. china's point of view, you don't want to let this go because it means more disruption and more also the mining side of things challenges to their authority at will be separated as well. a time when they are already we are now starting to get names fronting up to the u.s. and they of who will be taking on the have issues globally. anna: do you see the chinese others of the portfolio that he , do you see the will not be running. -- what thee deteriorate -- deterioration of manufacturing? do you see them moving more official is saying is that he is toward services? is this something that is coming being put into that position to through quickly enough to counter some of the worst for the ipo ofre effects of the tariffs on their economy or is this going to be too late? chris: it looks to me like china saudi aramco, which is beginning to pick up speed. needs more stimulus. getting details of what is happening there. if you look at the housing market in china, it has been an let's talk about the news you area of great strength in the need to know about. looks like it might be rolling this get a bloomberg business flash and look at the biggest bloomberg stories in the news. -- i am slightly concerned about ton musk's high-profile trip that but what that says is we need more stimulus and much of china looks like it has paid off.

the lending stimulus in the last the ceo of china one a tax few years has gone to the exemption for the electric car consumer sector or housing sector. wonr -- the ceo of tesla that will help that switch to the services sector. anna: what is the right kind of one a tax exemption for the electric car. must promoted his groundbreaking stimulus for china? in the past, stimulus has been project as well. it could be the biggest european in bubbles in china and they went to great pains to try and ipo for private equity firm in two decades. deflate some of those. chris: i don't think there is sweden's eqt partners is planning a stockholm listing any right kind of stimulus. this year. the firm plans to sell 20% there are too many imbalances and you have too many problems. you have to continue with the stake. same playbook and with that is what we will see. anna: we sorted this let's get more on that eqt story conversation talking about hong because it is interesting in kong and the violence on the ground. let's continue that now. chris watling stays with us on size and timing. let's bring in bloombergs five equity reporter, sarah psy, who the program. let's go on the ground in hong kong. joins us out of berlin. bring us up to speed. a lot of private equity it has been a very big z weekend companies have been selling with processed -- whew -- very businesses to other private equity companies. why are we heading for an ipo of busy weekend with protesters. this business? reporter: we have seen quite a sarah: let's make the

distinction that private bit of rain here today. we are standing outside near the equities are selling a stake in themselves. chief executive's office. we have seen a trend in that as you can see a handful of a way of surprising equity fans, protesters out here. next to it is the garrison. to strengthen their balance sheets so they can invest across a number of different asset. we sought one point some example, itqt as an protesters firing some laser beams at the buildings there. has humble beginnings when it police at one point did show up started in 1994. and urged them to disperse and it had raised 300 million euro head out. the crowds have been dwindling for its first buyout fund, the last couple of hours or so focused primarily on the nordic but we marked another violent region. weekend, perhaps one of the most pham is nower, the violent we have seen in the last 13 weeks or so. we saw protesters in running with 60 million of euro assets battles with police officers and under management. subway stations. they have grown to such a scale and they want to keep growing. police fired pepper spray inside they are going down the ipo trains and also in the route. they already have an anchor investor. it is the investment firm founded by sweden's family. airports as well which disrupted some flights with delays on sunday. if they want to sell a stake in anna: thanks very much. trains andthe latest on the grg the business, they could have kong. still ahead, the pound tumbles

done that quite easily. as investors brace for a they felt the ipo route was showdown between u.k. lawmakers as parliament returns. something that would have given them the ability they needed. we will preview a crucial week guy: will others follow using ahead for brexit. ares johnson and his team this route? minded to look in on the vote in parliament as a vote from his it is an obvious way of sellingg capital, leadership on confidence in him. we will talk more about what that might mean for this tense stakes to other businesses. week ahead on the brexit agenda. sarah: i think there are a this is bloomberg. ♪ select few private equity firms that could be potential ipo candidates. for a private equity firm to be a successfully listed business, it needs to be diversified. if you look at eqt, they do not just offer private equity. they invest in a number of asset classes, including infrastructure, venture, and this gives investors a certain security and stability to when eqt is little bit

cyclical, than they can bounce back on the other asset lasses. there are a few other private equity firms that offer a diversified asset class that could become businesses. guy: fantastic reporting as ever. thank you very much, indeed. stoppard, then investment asset head of multi-asset income will join us. that is next.

anna: live from london, i am anna edwards and for the special edition of "bloomberg markets" on the labor day holiday. the stoxx 600 is up 14%. the foot -- up 1.4%. -- up .4%. the ftse 100 is a big impact are on that. see moneythat, we going into defensive sectors,

the likes of utilities and drug companies. those are the sectors doing well in europe. a quick look at the other sides of the markets. the dollar is doing pretty well. day.r a sixth consecutive you can see a little but of money going into gold once again. thise not entirely risk on labor day on these global markets. let's check in on the bloomberg first word news. bahamas, authorities call the damage from hurricane dorian "devastating." dorian pounded the island with 118 mile-per-hour winds and dumped up to two and a half feet guy: 3:00 p.m. in london, 10:00 of rain in some areas. the storm surge could reach 23 feet. the big question now is where it a.m. in new york. is dorian head next. i am guy johnson. the hurricane could hit florida welcome to bloomberg markets. happy labor day. or georgia or the carolinas the u.s. markets are closed but later this week. cash trading not happening today china striking back at new u.s. in equity and bonds but we are oniffs is ramping up duties watching the futures. with the u.s. out, we are seeing

$75 billion of u.s. imports and light volumes. stoxx 600 up by .2, but volume those tariffs are aimed at the heart of president trump's political support. factories in the midwest and is spectacularly low. little bits a south. after u.s.aliated lower, but it looks like a flat open tomorrow morning. tariffs took effect. four u.s. equities. in texas, authorities say the we will wait and see exactly how china trade narrative man who shot seven people to death was a truck driver who had been fired from his job a few hours earlier. prices and. let me show you the next board. police killed the suspect after the pound having a bit of a he terrorized two west texas battering today. it has to do with u.k. politics towns with an assault style which will dominate the week with poor manufacturing data out rifle. it began when officers try to of the u.k., sending the pound pull him over for a traffic lower against the dollar. violation citigroup says the euro-yen ticks lower. that is something you should pay u.k. may be the next country to join the negative yield club. attention to. a real sphere index for the if the u.k. leaves the eu market. seeingcontinue, as well, without a deal, benchmark yields could slide to zero or lower. the dollar tracking higher gilts hit a record low against the chinese currency. again, something to pay attention to. another factor behind that story on august 15. is what is happening in hong global news 24 hours a day, on air and @tictoc on twitter, kong, with authorities appealing powered by more than 2700 journalists and analysts in more than 120 countries. for calm after protest that

started in june. over 1000 people a been arrested this is bloomberg. anna: thanks very much. and the unrest in china. bloomberg has learned or is man is in hong kong for johnson will treat a vote against a no deal brexit in us. the city is not ruling out invoking emergency laws to curb parliament as a no-confidence vote that could pave the way to the demonstrations. a general election. is this an escalation of the johnson's official spokesman situation and what could that mean? said johnson does not want an election. it is something we have joining us now to get to grips with the latest reporting is heard before and we have heard bloomberg's jess shankman. it again from matthew john in a take us through what the team press conference here today. what would that entail? has most recently unearthed. basically, it would grant the this is the way boris johnson government powers to make might deal with defeat. arrests easier, they could sense not in a no-confidence vote, but her publication, it could also he might treated as such. jess: this week is the show down seize property, as well as shut down the internet, which has on in parliament. been a key tool for these we have been waiting the summer protests since the movement began 13 weeks ago, using the recess for this week. trying to force likes of air drops to spread information. potential rebels into make a decision. last week he was being nice, that could essentially cripple how they assemble in this leaderless movement.

saying i'm close to a deal with so that has been something we the eu, get on side. have heard before, but the this week he has the whip out rhetoric from the government has patched up higher. and is saying if you do not get you have called this radical on side, maybe will not get behavior is spreading like a again in an election. pandemic, and for the first time, using the word terror, it is looking like that has seeing they seat -- saying backfired and they are saying do your worst. what we are hearing now is they see signs of terror. guy: what happens now? rumors the bbc is reporting that boris johnson might be we are seeing a general strike, considering calling election himself. but there seems to be the sense that means that whatever vote happens this week, people will that the authorities and protesters are getting further and further apart. be prepared to rebel against we were talking about the johnson either way. if theredoes seem as chinese authorities taking a more heavy-handed approach a couple of weeks ago. do you get the sense that is are many ways we can get to a once again back on the table? general election. point, we heard he does need the support of the labour party to call an election out of sequence, doesn't he? from beijing earlier this afternoon. they continue to back the government. at this point, we have not heard jess: and they have said bring it on. of an escalation on that front, this morning we had jeremy the heavy hand of pla troops at corbyn speaking and setting out the border. an election. we saw that video posted on in an interview with boris state media a couple weeks ago. johnson he was saying it is me we have not seen that.

athere will be a presser or chaos with jeremy corbyn. all of the parties are on election footing. question of who will tomorrow, so we will hear from the beijing side of things. you mentioned the strikes that call it and how will that student groups have now happen? anna: boris johnson seems to be launched. students toged buoyed by the latest polling boycott school, skip class, and against corbyn. to come to afternoon rallies. that does not mean it would all it seems like at this point, be clean sailing because he will they are not backing down. have the brexit party at his you mentioned the 1000 people heels. jess: we know the polling should who have been arrested. just last weekend alone, guy, we be taken with a pinch of salt as well. saw 160 people arrested. anna: and tony blair -- not and the youngest among them was a 13-year-old boy, who was everyone within the labour party sure an election would be the right call. arrested for possessing weapons in a subway station. tony blair urging jeremy corbyn there is a concern here about not to fall for this but jeremy corbyn always says he is ready the youth, and how they are taking part in the violence and for an election. jess: tony blair wants to have a the clashes that we have seen second referendum. anna: thank you very much. with protesters and police. jess schenkel men with the thenow a sense of calm latest on the policy. government is pushing for. a lot of these alumni groups, from longview economics, chief economic strategist chris the teachers, as well, urging for calm. whatley still with us. guy: we will leave it there, your view on this busy week. thank you for your coverage of

i read one analyst was saying they saw an opportunity for a what is happening in hong kong. around the pound, bloomberg's yvonne man joining us where it is 10:00 in the the rebels were in the ascendancy, you see that is likely? evening in hong kong. the pound is weaker today. beijing is playing down president trump's latest trade chris: it is the most crowded s onescalation after tariff short out there. if you ask anyone there view on roughly $110 million on chinese goods went into effect yesterday. the pound, most say you should sell it because of exit. all of this against the backdrop of slowing global growth for joining us for more on today's ,fter three years of planning market moves, john stop word, head of investec asset surely it is largely the price. sentiment is bearish. the economy is not great but it management of around $150 billion in assets. is not as bad as the european good afternoon. economy. soulswho are the brave john: good afternoon. guy: august saw the biggest treasury rally since 2008. betting on this? chris: they are few and far between. the president is escalating the that is a good place to put money. trade situation. if someone said you have to put hong kong is on a knife edge. brexit is still a story we are money away for three to five years and forget about it, i watching, but the trade narrative seems to be the dominant see. -- the dominancy. assets.t on u.k. do i believe i should be exiting those positions and taking profit?

there is a chance we have a or will september deliver more prime minister in charge to his business friendly and of the same? taxcutting. anna: not jeremy corbyn. john: i think we are in the chris: i cannot see jeremy corbyn winning an election the fragile and unstable environment. people are largely sitting on interesting thing about johnson, their hands. if he puts in brexit candidates you can get big moves still. you look at volatility measures he brings the brexit party on side. like the index of volatility in that side of the discussion has a clean vote. the other side is split liberal the treasury market and that and labor. so he wins. anna: they could work together. looks elevated. i think the scope for a continuation of the kind of chris: unlikely. whoever gets the biggest share extreme news you have seen in bond markets continues. of the vote is the guy who forms if you have data and markets a government. i think johnson is charismatic, he is popular. he is electioneering already. anna: it relies on getting the continue to deteriorate, then as brexit party on side. long as the fed and other central banks are not play ball and do not give into market chris: it does. pressures in the way that the market clearly wants them to, anna: and if he does not deliver the risk is that curves remain inverted and yields could rally brexit, it might be difficult to further. guy: does trade remain the neutralize that threat. actualin light of the central narrative in this? does it remain the central focus? john: i think it is a key focus. it is clearly undermining october 31 threat, or before confidence and manufacturing.

october 31, i think he will get rid of his rebels. it is clearly a weak point in anna: you talk about this three the global economy, and it is to five-year view of betting on perhapslobal affairs or the u.k. economy. i've a chart that shows pmi numbers dropping. the global economy is about to but this is a global story. slip or is slipping into recession. the demise of manufacturing or as long as that continues to be the headwinds manufacturing is facing. chris: manufacturing is a global up, and you saw the extension of tariffs and increase of tariffs story. over the weekend, i think it the u.k. has a whiff of it as will prey on investor and market minds. well. let's say i am a portfolio the reality is our housing data is looking much perkier. last week we had stronger funding data. there are problems in the u.k. manager, first of september, getting back to the office, what does it look like? economy, no two ways about it. what do you see? there are problems and issues. john: i think it is highly there are problems with many economies around the world. my argument is a lot if it is in uncertain, not the time to be a the price. hero. globally we will have a mini we are in times of active race, cycle upswing. probably towards the lowest level of active risk we have run in this entire economic expansion. we can see a decent probability housing looks like it is picking that central banks will extend up, which will help support the the cycle, growth will achieve a economy. anna: chris watling, longview economic chief market strategist with us with analysis. soft landing. up, italy's acting prime maybe we get some resolution of trade and so on.

that is a reason of probability, but on the other hand, you minister is poised to form a new italian government this week session, soe every from an unlikely alliance of political rivals your there is something going on the italian political front. you have binary outcomes and markets. if you have soft landing on we'll preview that for you. recovery, the equity could continue rallying on the bull market extends. if you go into recession, you this is bloomberg. ♪ get a nasty bear market. why take, why be ignorant? why not at the moment just focus on -- guy: what does a safe portfolio look like in this scenario? john: it focuses on steady income generators available, looking to have some equity exposure, i will be not running too much duration because i think the bond market clearly is betting quite heavily now on probability of a recession, probably more than is reasonable. but the equity market actually looks fairly complacent, so we are running relatively low risk overall. we are running some exposure and selective high-quality, decent yield equities, and in high quality corporate bonds. and generally looking at

opportunities rather than trying to make the allocation calls. the s&p was down fairly last month. i can just point to ways of record highs. john: definitely if you look at the equity market, i think it is holding up better. it is pricing in a bigger probability that actually the fed and other central banks will say it will be ok at the end of the day. a lot of that is people are not taking much risk at the moment. typically, equity markets have their big problems where everyone is euphoric. if everyone is a little cautious, unless something dramatic changes, and we have had a lot of noise, but we have not had anything that has changed the debate between is this an ongoing recovery or expansion in bull market or is it the beginning of something worse? nothing was particularly decisive in august. i think the market is able to

maintain this sort of messy range. some catalyst to break out of that. either you need the complacency but witht to be right, the fed easing enough, growth will stabilize and recover, or you need implementation that tells you things are about to get much worse. hole, it is the ecb market with the idea that we will see further rate cuts from the fed, and that will keep the president happy, probably not as much as he would like to be. nevertheless, the president is upping anti-in the trade and the fed is probably going to anna: welcome back. respond. live from london, i'm anna the market'si edwards on this special edition of "bloomberg markets." the stoxx 600 up .5%. right to be as aggressive as it is? john: probably not. the fed is behaving as though everything is just about ok. volumes a little they are in risk management

depleted by the end of the day. i wanted to point out the u.k. story. 1.25%se 100 stocks are up mode. the risks they see are , partly explained by a retreat in the pound, down .7%. mode. the risks they see are linked to trade and overseas growth, but as far as they can see, the u.s. economy is holding up quite that is where we are in the data well. there is no real sense of urgency from the fed. that is keeping the pressure on front. the yield curve. the market is saying, you are we are not entirely risk on, i missing something. we are really nervous of all markets saying that. should point out. the fed is saying, we don't see looking at the sectors. that. and i think part from powell, if you listen to different members of his fomc committee, they are pretty slick. some people do not want to ease let's talk about what has been going on in italy. anymore. there are some who want to take the italian political scene very up more insurance. busy this week. they have got pressure. guy: how important is the italy's acting prime minister giuseppe conte will present his payroll going to be friday? john: the problem with anyone new government lineup to the data point -- i mean, the fed president. the government could be supported by the end of the development.ds and week. it is certainly not a done deal. here to talk about factors in favor and against the coalition the less it is a massive outlier in one direction or another, i is bloomberg's rump euro chief. think they will just add it into give us -- bloomberg's rome the information that they have available. at the moment, that is there really is not that much evidence that the u.s. consumer and labor bureau chief. market is struggling. how likely are we to have it is doing ok. it has slowed a bit, but it is successfully seen the creation of a new italian government? doing pretty well.

>> i would say it is pretty guy: and that is the economy, likely but in italy you never know. but you have to wonder how long it takes the manufacturing story the talks between the five-star movement and the establishment and other factors to bleed into that. john will stay with us and we will talk about that. party is going well. let's get to bloomberg first word news. there are still a lot of give me the details. stalled overdorian differences on who is going to be in the cabinet, who will have the top spot, and will be the program of this government. the bahamas, and it is expected to cause colossal damage before giuseppe conte sounded turning to the northwest and taking aim at the u.s. optimistic, we stopped to see during this packing sustained this cabinet being formed, and winds of 165 miles an hour. if it does happen, it will be the u.s. national hurricane this week or elections. center says the storm will move be seen as fairly dangers to close to the florida shoreline by late tonight or early tomorrow. a fire on a boat off the coast unlikely these parties would of southern california has come together to form a reportedly left people missing. government? what do we know about what kind of agenda they would have, what there are fatalities, but they kind of impact this would have do not know how many. 34 people are unaccounted for. on the economics of italy? several boats have been launched to help. ago, you wouldth the boat was said to be caught on fire. china is retaliating for the trump administration's new have thought a completely tariffs. possible these parties would aboutlapped tariffs on

tied together. decided to pull the 110 billion dollars in chinese imports. plug on the government to try to china is thinking about imposing tariffs on $75 billion of u.s. force snap elections. goods. theseid snap elections, it strikes at the heart of president trump's political support across the midwest and south. unlikely allies have come together. on the one hand, they will be a warning from iran on the landmark nuclear agreement. less controversial, less tehran says it will "take a strong step away from the deal fighting against the eu when it europebile powers," if comes to the 2020 budget, but how will they avert automatic does not come up with new terms by the end of the week. they want to sell their crude increase that both parties said they want to avert -- it will oil in the open market but u.s. cost 23 billion euros. sanctions pause these sales. global news, 24 hours a day that is still to be seen. on-air on tictoc and twitter, anna: does this government, if powered by more than 2700 journalists and analysts in more than 120 countries. it does stand, does it pave the i am naomi carolyn this is way for less arguments between bloomberg. rome and brussels, or will that guy: breaking out of the british continue? >> indeed. parliament or the u.k. both parties have said they want lawmakers, these are rebel mps, to avoid another clash, avoid against boris johnson's plans the risk of other sanctions on excessive debt, but at the same within his conservative party, time, both the democrats and the to prepare for a hard brexit.

five-star have spending plans. they are poised to try to force they want to introduce a minimum the prime minister to seek a they avert the increase, three-month brexit delay. arethey plan -- they want to invest more in the green --nomy, and of course italy planning a new law to force that 31,it delay until january at the same time, markets seem 2020. to be optimistic about the on, we learned earlier government and yields on the debt have got down though, was the prime minister effectively will treat this as a vote of no-confidence. to record lows and this has where that to succeed this motion that will probably get freed up 2 billion euros a year put down tomorrow, with the in interest payments. this should be help for the new assent of the speaker, but the government to start with. anna: thank you very much. prime minister will treat this as a vote of no-confidence and our reporter joining us from room. may therefore push a motion of still with us is longview dissolution, which would need to economics sheet economic strategist chris watling. go back to the house. your thoughts on the italian bond market? then we would end up with a general election, so the nt is the shock -- this chart shows being upped ahead of the return the bund spread, which has been -- so they are upping the ante narrowing good are you a buyer with the return. of btp's? but this looks like the lay of the land now, so parliament is i would not spend a lot

looking to delay that story. by three months. of time putting it in a october the 31st, january the portfolio, but the scope has 31st. moved lower. this is bloomberg. ♪ what that is telling you is you will get a government. more importantly is telling you what the ecb is going to do. do you think that is coming? we saw a few ecb voices pushing back against that. it was the dutch, it was biden, of the newestone governors of the ecb from austria skeptical about monetary policy easing. chris: you're getting that argument he would ask that i have a major policy announcement. a lot of policymakers speaking. andreality is mario draghi lagarde are both big dogs -- big dubs and they will do whatever -- big doves and whatever it

will take. they are natural hard money state that is already saying loosen up and do it aggressively to surprise markets on the upside. i think they need to and i think they will. anna: you think lagarde is a dove? you do not see a big change in tact? chris: undoubtably a dove. maybe even more dovish. it is shock and all. there will probably be a new government and the reality is there's so much liquidity, the hunt for yield is on. will be a big moment when lagarde utters the word "whatever it takes." will she be pushed in that direction? chris: she is a great believer in the project. she will not allow to fail. anna: she is a big believer in fiscal spending. she did that at the imf and

mario draghi has been doing that the ecb. will she push the germans into more spending? chris: they are almost there. that message will continue and that is appropriate in the context of the way we run monetary and fiscal policy today. anna: what kind of loosening would benefit germany the most? there are lots of tools. some say infrastructure takes too long. from london, i am guy you want corporate tax cuts. chris: i think infrastructure is always a good thing to do if you can get it moving like. johnson. this is bloomberg markets. let's check the markets with -- moving quickly. emma chandra. emma: we are in the green in you get a big payback in the long-term. europe, the stoxx 600 rising for it will not necessarily get the third straight day, its built unless the government does it. longest streak since the end of the green economy makes sense. july. we are off the highs though because we were around .7 i am a fan of cutting taxes, but whether or not they will do that he will seek. earlier in the session, and that is true across most of the anna: one piece of analysis european major indexes. the dax rising about .1, a very today talking about how france has had an edge over germany and different for the ftse 100 with the most recent travails of the a gain of 1.25. euro zone because those that as we see the pound of

countries are export oriented fall. such as germany. if you look at the board, should some have suggested this will see what is happening in the catch up with france soon u.s., which is closed for the because of their luxury labor day holiday, so we are exposure. looking at futures. you think france is also going it is a different story. to fall in a similar way to all in the red, perhaps giving germany amongst all of this an indication of how the market tension around freight? freightrandt -- around will digest that round of tariff s from the u.s. and china in the ongoing trade war when the u.s. -- around trade? opens again tomorrow after labor day. chris: france is a very are lookingu.k., we different economy. it will muddle along for now. at the pound declining for a full straight day. you can see this is showing the four day, but the move is down germany will have an upswing .1, close to 1% at the low. globally. anna: you mentioned that dramas as brexit earlier. chris: i think we have had a lot of the downturn if you look at continues with headlines saying how some lawmakers aim to prevent a no deal brexit, also leading indicators of trade and global growth, it is just stabilization. anna: thanks very much. playing into the pound story, with that unexpected decline in longview economics chief manufacturing data that we got marketing strategist. for the u.k. chris white like garrett applied finally, i wanted to show you some of the movers here in -- chris watling. europe. we should have rwe. a pleasure to speak with him. that is one of the best gainers let's look at what is going on on the day, up 3.8 percent. in the markets.

news lines coming through from this has been reiterating price buy rating and raises the price continental, the german tire target and it says it can no , considering a spinoff of longer be ignored. astrazeneca also rising, putting its powertrain unit. a gain of some 3%. shares gain in germany. up substantially. this as we had strong data from a heart failure treatment trial continental powertrain unit and that means it is headed for haske and also, novartis considering a spinoff listing. been trialing heart failure continental supplies to the auto drug, falling .3. industry. guy: oil under a little pressure the auto industry has been so hurt by trade tensions. anything that looks to unlock today after its first monthly decline since may. value within a company -- within the deepening trade war is stroking fear is that economic an area of the company that is global growth will hurt demand. different and should not be valued at the same rate, perhaps the market sees that as a the latest china tariffs also positive. that spike in the share price went into effect yesterday. would suggest. and for the first time, oil is on the list. still ahead, hurricane dorian, the chinese are raising the tariffs on a whole range of one of the most powerful storms to hit land anywhere in the agricultural products out of the atlantic ever. we will have the latest on that. united states. let's talk about the impact and the devastation in the be hamas how the affect is going to be and what we can expect -- in the felt in terms of complex. bahamas and what we can expect

to see in the u.s. shellady,g in scott this is bloomberg. ♪ who joins us now on the phone. inmally, we get to see you person, so this is a disappointment in some ways, but thanks for spending the time on labor day. happy labor day. let me just ask you about the chinese tariffs. when you get to work tomorrow, what kind of a reaction do you think you will see in the results of that? scott: i think there was a little bit of elation going into the weekend that maybe these things were stalled or delayed, and because that did not happen, it was already happening in the equity world and there will be some sort of disappointment. to your point, it has been a weird thing the way the markets have handled this field delirium, i call it. in the beginning, saw the commodities market swing wildly depending on what the last week was or whatever was released from china, but now that has

been muted. we have been moving less and less on the news from china or the tweets and you are seeing that the equity market, as well. market is getting tired, right? so delirium is setting in. either we are going to have some sort of progress, where we get a deal done, or we will not. i think a lot of guys are building into their hypotheses, maybe a 10% to 20% chance we never get a deal with china and this is how we move forward. the general public needs to know we trade more with sigouin canada -- with mexico and canada right now that we do with china. we need to try to do the best we can but it is not earth shattering if this goes on for a longer time than we thought. tracking hurricane dorian and trying to figure out exactly if and when it may make landfall in florida. current indications is maybe we get a mess, but nevertheless, what kind of an effect would you look for there? scott: well, the market does not

like surprises, and the market likes things you plan on. this one was pretty well anna: live from london, i am telegraphed, right? , the different hypotheses -- we anna edwards. european equity market trading have seen the cones and higher this afternoon, up .5%. different hypotheses and a sigh of relief is the wrong way to time for the bloomberg business say it, but having it screwed up flash. a look at the biggest business the coast rather than hit the stories in the news. coast is better for the market. american airlines has joined number two, we will not be surprised and i think we will other carriers and removing the grounded boeing 737 max from its largely be -- i don't know, schedule for another month. accepted pretty well. condonething i do not american has canceled 140 daily flights through december 3. of his look how the oil market is reacting. it is reported regulators keep oil is down, and the oil price the max grounded into december. we are paying for gas at the pump in the states is low again they have repeatedly reported right now. this is a whole different going has not answered questions paradigm.if this would have about the planes modifications. happened 15 years hasmberg has learned dubai to 20 years ago, it would have been a bigger deal but now today does generally muted. guy: so you are suggesting the stopped work on one of the world's largest airport construction activity. oil market is reacting to more finances for expansion have been frozen. to the chinese data, the global

dubai's economy grew at the slowest pace last year since slowdown, the fact that we see chinese put oil on the list as another factor and that all 2010. elon musk's high-profile visit to china looks like it paid off. speaks to the idea that you think oil has the potential to in the midst of a trade war go lower. between the u.s. and china, the if we can absorb hurricane ceo of tesla one a tax exemption dorian, then you have to argue that it is a supply story that for the carmaker and debated is the worry here. scott: 100% correct. jackthe alibaba founder 100% correct because if you go back on that chart -- and i his boringomoted don't have one in front of me and i can't pull it up because you can't see it -- but we have project. anna: thanks very much. seen $65 oil a barrel a long time. until we get above a certain hurricane dorian hit the bahamas with record strength winds, number in my world, it is all devastating the islands. white noise. we kind of get to that $50 forecasters expect the storm a hug the coast, but landfall in level, yeah, we are not seeing the market react to the things florida is still possible. it would have 15 years to 20 -- hashas already in years ago because of the supply the u.s. has brought on board and with what we have done for oil independence and dominance. already tied as the most powerful storm to hit -- to make so the world is kind of a changed place, and with what we landfall ever. have with the weather, with joining us is jonathan levin, oilolitics, and to see

who is in florida for us. it is literally the calm before the storm in florida read tell down on a day like today, it tells you this is only going forward. us about preparations being made. the state ofy -- guy: we will talk again soon, scott shellady joining us. this is bloomberg. florida has ordered a number of ♪ targeted evacuations. you have folks being asked to leave and some of these barrier islands communities, including palm beach, where you find the president's mar-a-lago complex. also folks in mobile homes have been asked to leave. you have the governor taking extraordinary measures, including waiving tolls along the florida turnpike so people can get out of the danger zone. 19 onwhat is the latest where this is going to fall? where this will make landfall and which tbits of assets and infrastructure will be in its path? this is entirely possible

will not technically, ashore and the state of florida. nevertheless, this is a menacing storm. even if it just brushes the state of florida, it could be dangerous. you are talking about it may becoming perilously close to palm beach, where the president has a lot of personal assets. it could brush the st. lucie area, where florida power and florida'stwo of south four nuclear generators. definitely some key assets. farms, you continue to watch oranges and orange juice and we will have to see what happens. anna: in terms of the devastation, it has been very clear in the bahamas. we will see what kind of impact it has on florida. keep an eye on the human impact of this, but also what it does to keep the market. catastrophe bonds and the like. thank you for the update.

bloomberg's jonathan levin. coming up, all the latest market news and insights in the next hour. david riley, chief executstrate. guy johnson getting ready to take you through the next few guy: from london, i am guy hours on this bloomberg markets special. johnson. this is bloomberg. this is time for a bloomberg -- this is bloomberg. business flash, look at the biggest stories in the news right now. ♪ there will be a new chairman at saudi aramco as it prepares for a record-setting ipo that we may see some next year. that as their sovereign wealth take a new leadership role, as well. uncertainty of a brexit and weaker global growth pushed one major of a sector lower. the contraction was driven by a drop in new orders but

meanwhile, optimism fell to a record though and reddish manufacturers. the pound is now trading at a session low. let's take a look at that sterling break right now. we are continuing to get a series of political headlines that is exacerbating the move. we saw the downside generated by the data. politics -- parliament returns tomorrow and it looks like we are going to see a key vote and if it is lost, we could see a general election. this is bloomberg. ♪

here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! guy: 9:00 a.m. in new york, 2:00 a camera might figure it out. that was easy! in london. glad i could help. i am guy johnson. at xfinity, we're here to make life simple. easy. awesome. happy labor day. so come ask, shop, discover at your xfinity store today. light volumes as a result of the u.s. being out. cash stocks and bonds closed. european markets seeing very light volumes today.

as a result, we will probably not get a real sense of what is going on with the tray narrative until tomorrow. the stoxx 600 up .5%. s&p futures negative at the moment. take a look at the fair value on your bloomberg. the ftse 100 is up by 1.3%. which, -- as a result of the pound being a negative territory as a result of week data. let me show you the pound to gibeon idea of what has been happening. the british pound -- to get an guy: from london, i'm guy idea of what has been happening. johnson. this is bloomberg markets. the british pound against the dollar. let's check bloomberg first word news. guy.ank you, euro-yen should make you nervous. , 7.17.cny hurricane dorian has slowed to a crawl over the bahamas, where it is causing colossal damage. i have heard reports talking it has winds of 165 miles an hour with storm surge up to 23 about that going to 7.5. it is the 13th straight weekend feet that could be deadly. of unrest in hong kong. the national hurricane center says it will gradually turn to heavy rains have seen crowds the northwest to begin a run-up

dispersed as protesters rally in the city. the u.s. east coast. the weekend was marked by in texas, authorities say the violence, with three clashes and man who shot dead seven people was a truck driver who had been traffic disruptions. fired a few hours earlier. police confirmed more than 1000 people arrested since the unrest police killed the suspect after he terrorized two south west began. let's get the details of what we texas towns with an assault know. style rifle. the shooting began when they tried to pull him over for a a general strike going on. traffic violation. yvonne man joins us now. china striking back at new u.s. tariffs. duties on $110 million in u.s. hong kong is not ruling out invoking emergency laws to imports. contain these protests. what could that mean? farms and factories in the givee: it means it would midwest and south are affected. aging retaliated after u.s. tariffs $110 million of chinese the power to the government to products took effect. make easier arrest, to censor in argentina, president macri publications, to do more deportations if they need to has imposed capital controls aimed at containing the countr'' also a possibility is to shut down the internet, which has s financial crisis, among other measures. been a key place for these they have been ordered to protesters and how they communicate through telegrams repatriate foreign currency within five days of a sale. and the like. that could cripple how they macri opposed policy controls organize these types of protest.

when he took office in 2015. at this point, they are still global news, 24 hours a day on-air on tictoc and twitter, powered by more than 2700 considering this. journalists and analysts in more than 120 countries. i am naomi koeppel. certainly, in terms of whether this is bloomberg. guy: thank you, naomi. this actually scares the protesters away, they are saying let's get back to the battle for at this point it is just care brexit. tactics. headlines over the last hour, they will try to build this the situation is basically this momentum after what was a -- u.k. lawmakers are opposed to violent weekend. guy: the impression is that the toard brexit and are poised government and the protesters are not getting closer together. force boris johnson to seek a they getting further apart. three-month brexit delay, assuming they have the numbers is that the correct interpretation? yvonne: it is. in the house of commons with parliament returning tomorrow. the pound is hitting session calm, about two weeks of lows on this news. this as bloomberg has learned where we saw people march. now we have not seen any results the u.k. prime minister will treat that vote against this no that have yielded from that. deal brexit and ideas to force that is why we have seen more anger in the streets once again an extension as a vote of no-confidence. if he loses, there will be a after we saw several of those activists who were arrested on dissolution and a general friday. election. that drew a lot of people out johnson's official spokesman over the weekend. said this morning that the prime we have seen more radical, minister does not want an election. aggressive tactics from both let's get a view on that. we are joined by bloomberg

sides. you saw these running battles at opinion's luis rafael. one point between protesters, good afternoon prayed you have been talking about the election tens of thousands of them, with quite some time. is it more likely today than it officers in these subway was asked week or the week stations. a third have been vandalized. before that? we have key votes potentially taking place tomorrow or the next day. if johnson loses, it sounds like officers fired pepper spray inside the trains. some bystanders were caught in he heads for a general election. the middle. >> i think we are at one of barricades were set on fire by these forks in the road with ifexit with two scenarios. demonstrators. the water cannons came out and they were firing tear gas to try parliament passes legislation and to identify protesters. forces him to make an extension, it seems like both sides are i would expect johnson to take digging their heels and this the gamble and go for an early front at the moment, and both election but it is risky because the brexit is pulling at about sides not backing down. 10% to 15%. hard to find a resolution he is not going to want to make despite the fact that the government is urging for calm that election about going for no and the violence to stop. deal brexit. that will alienate a lot of guy: thank. voters who are more moderate and afraid of a no deal brexit. yvonne man reporting from hong kong. he will want to make it about jeremy corbyn. the hong kong playing down the he wants to know up he has no deal brexit in the bag, so i think the balance that johnson would have to strike in going to

the polls is how does he prevent the brexit party from cannibalizing the conservative vote, and at the same time not alienate voters who do not want a no deal brexit? this is all if parliament fails to pass any legislation. i mean, if you went to election and manages to get a majority, say 30 or more than he could do it he wants. if he does not, then we could have a hung parliament, and jeremy corbyn in power with all these new constitutional freedoms we have seen boris johnson exercising, and that would be a disdain indeed. the other prospect is that parliament does not manage to do anything. we go to the suspension and then we come back in october, and johnson tries to get a tweak to the deal and bring it to parliament and says, now decide. my deal or no deal. guy: do you think the rebels have the numbers to force this piece of legislation through this week? it seems incredibly tight. don't even think if

it is just about if they have the numbers. that is just in the house of commons. there could beat filibusters that prevented from getting to the lords on time. once it gets through the lords, it needs the royal assent. that happens at the advice of her majesty's minister. johnson could possibly would on present form advise her not to give assent to that piece of legislation, so we have several hurdles before we actually have a piece of legislation that forces him. he could go to the european union even then and say, i'm going to strike a delay if you grant it. so, you know? [laughter] you could play it out and it is still difficult to see how that legislation happens. guy: which do you fear more, hard brexit or jeremy corbyn government? john: personally, jeremy corbyn government. i think a hard brexit looks ugly in the short run. i think sterling is acting maybe

to some extent as a big of a shock absorber. and i think it is in the interest of the u.k. to work on an arrangement post-that. i think longer-term, we would survive it but jeremy corbyn, i don't know? guy: do you think europe will cave? john: that is definitely boris' strategy. guy: do think it would work? john: i think so. if he can make it so that europe genuinely believes that he will follow through on the threat of a no deal, and that there is no way that there is going to be an extension or a change that could explain that outcome, i cannot see why they were not do some sort of deal. the deal we think is possible or potentially likely is to maintain some sort of alignment mostly on agricultural goods, which is essentially the main trade.

75% i think is the trade that goes through between northern and southern ireland for a limited amount of time. and then remove the backstop otherwise. tweak the withdrawal agreement a little bit and go through on that basis because they will lose everything if we don't have ideal and it is not good economically for us but it is bad news for a week german and french economy and irish economy that is dependent on trade through the u.k. and with the u.k. guy: what do you think of that? therese: i wish i could say the economic rationale was driving brexit, and if we could simply predict, i completely agree it is not in europe or britain or ireland's economic interest is the end deal brexit. i think from the european point of view, the problem is any deal what theyp short of would say is breaking the integrity of the single markets because that would set a precedent that a future prime

met any other country could use. i think the eu would be open to a deal if it could be done in a way that does not or is not seem to be violating the integrity of european singer market. that is the trick -- european single market. that is the trick. never underestimate the power of politicians throughout that desire to find one, but i think it is not simply the economic interest that will drive it at this point. guy: if we were to head towards a general election, what is the path to jeremy corbyn getting in power? therese: i think it is either a hung parliament in which corbyn is able to form a majority with the liberal democrats and agree that there is some kind of a coalition. that would be unlikely, let's say the least, they have been in

a coalition government before. it nearly obliterated the party and they would be reluctant to do that. i think imagining an outright labor majority is difficult, and jeremy corbyn is unpopular among the broader public. i think general election will be more likely to return a hung parliament, but i would not rule out that horse johnson is now i think in the 34% at the polls and could pull it out if he manages to make it about a all ofleadership and the things that john rightly said that frighten people about this particular labor administration. it is like, by the way, tony blair, former labour prime minister was advising corbyn to not go for it, do not approve the idea of a new election. guy: if boris -- so you have a 20-30 seat majority, does he still go to the hard brexit? he is worried about farah's.

he is worried about his one seat majority and all of these things. does he need a hard brexit? does he still need that hard brexit at that point? therese: itherese: suspect what changes as they no longer rely on the democratic party or the irish party that has popped up theresa may's government. these 10 mps are still part of the confidence and supply agreement, and we would probably see johnson very happy with only the backstop, which is what the eu wanted. i think you would start to see a lot of creative solutions around ireland that you cannot see now deal.e of the i think he would go for what we call a hard brexit, but you would have a lot more wiggle room if you had that kind of parliamentary majority. guy: do you think the pound and u.k. assets would rally if johnson won the general election? even by 10 or 20 seats? john: i think one of the things holding down u.k. assets is the level of ongoing uncertainty in

these undermining business decisions. these undermining confidence. there's quite a lot of value pent up there. if we ended up with a hard brexit outcome, i think at least temporarily, the pound would fall, but i think if it resulted in some resolution of this thing hanging over the u.k. personal loan, the pound is already trading at levels which are pretty deep, u.k. assets, too. i think on a one year to two year view, it is likely but i think a lot of u.k. assets would be considerably higher. would a coalition with the s&p resort of allowing another independence vote? -- let's say party we end up with another hung parliament and the labour party is within reach of getting ideal with the s&p up in the scottish

national party and independence party, and the s&p says we want another vote? therese: that is a fascinating question. traditionally had been miles apart. recently, we have now seen them circling each other. if it meant that that is what it took for jeremy corbyn to get to number 10, i don't think there great information said about labour giving that. remember, davis just resigned as the scottish torrey leader and that will really hurt the torrey vote in scotland. she is almost single-handedly responsible for having delivered the conservative votes. guy: and she took a number of votes to the party in westminster. just a final sort of question on all of this. labour does not do well in the election, do think jeremy corbyn is at risk of being forced out?

he is one of the big threats the market is worried about. if you removed jeremy corbyn as leader of the labour party, that would reduce the political risk from a market perspective in the u.k. therese: absolutely. there's no question that the entire backdrop of brexit has been made so much more complicated by the fact you have a labor leader like jeremy corbyn. it is very hard to remove him. and it is astonishing in a way that he has not had a challenge up to now given the poll ratings. if you were to underperform in an election like this, i think then you would start to see a move. we have already seen tom watson and others aching those kinds of signals, but no direct challenge as of yet. afterk that would change the election, if you were to perform badly for labour. we will guy: guy: leave it there. therese raphael of bloomberg opinion, and john, thanks for stopping in. coming, argentina's president

enforcing capital controls. will it work? we will have the latest, next. this is bloomberg. ♪

guy: from london, i'm guy johnson. this is bloomberg markets. in a rare sunday intervention, argentina's president imposed capital controls in a blunt policy reversal aimed at containing the country's escalating financial crisis. the announcement came after about $3 billion trained out from currency reserves on thursday and friday. our sao, let's bring in

paulo bureau chief. abouts -- julia, is this containing argentina's economic crisis or about containing mauricio macri's political crisis? julia: kind of hard to separate the two with eight weeks away. electionsed -- with eight weeks away. this started because there was a stunning loss no one saw coming and money started flowing out of argentina. billion,en about $12 so they had to do something to contain the flow of dollars out of the country, which will impact inflation and everything else. it is macri trying to make it to the end of his term but also trying to fix the economic situation argentina, which has become a massive crisis. guy: how are investors reacting? julia: with the u.s. markets closed, the argentina markets, which are not the most liquid, tell.en kind of harder to

the euro bonds are slumping. ony are around 32-33 cents the dollar for the bonds we do see trading, so we will have to see how the dollar bonds react tomorrow. it is likely going to continue to fall. guy: what are people saying in potential of the downside here? julia: the people are a bit -- it has been a lot of confusion and argentina policies over the past week or so. first with the debt re-profiling and then the s&p downgrading for just elected default for a day. the local debt exchange. there has been a lot of question and this is added to it. you have some people mostly saying this will make argentina markets uninvestable. that was what city banks said today. guy: in terms of what happens next, is there any other string that macri can pull, or is this the final big piece of economic

news we will get from argentina? therese: i don't think -- julia: i don't think so. there are two months to go on the elections and there are questions on whether the capital controls he announced, jet much more mild when he took over in 2015, will actually do anything to fix the problem. or if they will just be a temporary fix. we will have to see how things are going on the ground and if this does indeed do enough to stop dollars from flowing out of the country. , yournd if it doesn't assessment will be that it gets worse and he imposes more ru les? there are still plenty of points that investors can exit from at this stage. why do you think he has done that? why do you think he has not gone all in to control the situation? why do you think he has still left investors a way out? julia: so there are a lot of questions and argentina he only has two months left, so with the

debt reprofiling, people are asking, why am i going to make a deal with this government if in two months i will have a new government and i don't know that you administration will follow through with any of this? another big question with argentina is the imf. -- didn't make a comment on yesterday's news and on the debt reprofiling, but there is still money with the imf that argentina technically has to receive. but we don't know if they are going to get that money now. guy: julia, we will leave it there. thank you. julia leite joining us from sao paulo. retailerad, a luxury is feeling the effects of the ongoing protests in hong kong. it is next. this is bloomberg. ♪

london, i'm guy johnson. this is bloomberg markets. time for a bloomberg business flash, look at some of the

biggest business stories in the news right now. that's kickoff with elon musk, his high-profile in china has paid off. in the midst of a trade war between the u.s. and china, they won a tax exemption for the electric carmaker, and he also abated with alibaba co-founder at an artificial intelligence conference, where he promoted his ground digging company, as well. bloomberg has learned that dubai has stopped work on one of the world's largest airport construction activity. financesen halted and for the expansion have been frozen. the dubai economy grew last year at the slowest level since 2010. another sign that norwegian air struggles to stay aloft. a discount carrier is asking bondholders to accept a delay in paying a bond until next year in exchange for landing and taking up slots at london's gatwick airport.

they have been selling up arrow planes and raising their equity and training and expansion plans. it could be the biggest european ipo for a private equity firm in more than two decades. sweden ept partners planning to stop this year as they plan to sell a 20% stake at the ipo to continue around $4.4 billion. that is your bloomberg business flash. now to another stock, our stock of the hour, richemont, the luxury goods maker, with protests in hong kong weighing in on their retail sales. emma: this is all about richemont's exposure to asia, the continent is its biggest revenue driver at 6.4 billion dollars, accounting for some 46% of total revenues. asia remains a key growth area for richemont, growing some 8.7% over the past three years. that is second to only the growth in america, off a smaller

base. that is why the retail sales data we got from hong kong overnight or over the weekend will not have been welcome news to investors. if we flip the board, we should be able to see a g chart showing how the retail sales in hong kong fell double-digit's in august and for the second consecutive month. that is the drop into the red. on the bottom, we had visitors from mainland china. they make up some 80% of tourists to hong kong, and you can see they declined for the first time in some 18 months last month. with everything, you did see the market fall, and what is important is jewelry and watch sales come out, falling some 25%. that is important to richemont because unlike its rivals, that is a major part of the revenue. those two categories combined make up some 70% of richemont's revenue. compare that to others, which those only make up 9%. that may be why we see very

different reactions in the stock today. andemont down more than 1% another watchmaker just about pulling into positive territory. that is the stock of the hour. guy: emma chandra with our stock of the hour. g10 fxup, the head of strategy, jeremy stretch. plus, we will talk about trade, china, and the euro. let's take a quick look at where we sit with european equity markets. it is labor day and the united states. i hope you are enjoying it if you are watching in the u.s. european equity markets are reacting. therefore, with very little volume. the pound is moving the ftse 100. big drop in the pound earlier provided a sela for the pound. the ftse 100 goes up. the dax and the cac are trading a little bit more immutably, but we are seeing the dax is down half of its normal volume.

so we will carry on the conversation as we head toward the european close, and i will show you some of those volume chart, next. this is bloomberg. ♪

guy: this is the european close on bloomberg markets. let me caveat everything you are about to see with the idea of the volume mean very low today. it is labor day, happy labor day.

it is trading half the regular volume. s&p futures are negative. closed for theis bond market and the equity market. the ftse is the outlier, it is up. we see a significant drop in the value of sterling today. that is due to support manufacturing numbers. brexit narrative is circling . the pound is down by 0.8%. euro yen is weakening. they are trading