now,to talk about it right bloomberg's sarah mcgregor joining us. what do we know about what is actually in the steal? -- this deal? trickling ins are about this deal that the u.s. and china are close to agreeing. president trump is expected to --, but what our sources are telling us is there -- they are close to agreeing on a deal. china is getting some concessions on agriculture and the u.s. is seeping willing to --ge -- seeping willing seems willing to budge on tariffs. story thats is a bloomberg has been right on top of, that there could be a partial deal on the table. when we say it could lead to a truce, that could be a mother lode, we see a walking back from some of the worst parts of these tensions. is that a new thing? as we head into these meetings, there is a breakthrough that goes beyond some partial concessions? sarah: absolutely. the u.s. has some difficult demands for china to agree to, over ip theft and forced technology transfers. if the president's can meet and come up with an agreement that tackles those hard issues, that would be

sarah mcgregor joins us from los angeles with the latest. like major news that would affect the trade negotiations or the trade front, but what was the real purpose behind the speech? >> absolutely. there were no big announcements about a new crackdown on china over human rights or some action the u.s. is going to take, but it comes at a delicate time as the two countries are trying to come together with this first phase trade deal in the next couple of weeks. president, it is interesting he would come out and criticize the human rights record, something sensitive for china, and something that looks like interference from the u.s. side then something productive coming out of it. thing wasnteresting singling out u.s. companies, nike, the nba. what was he signaling with that? and tweets the nba from executives criticizing china, supporting the hong kong protests. athink he was trying to make point for u.s. companies to may be get involved in this situation, let the u.s. get this trade deal in order. theline: sarah mcgregor to point, as ever. w

i want to bring in sarah mcgregor. , talk to me broadly, did we learn about phase one of the deal today? sarah: what we do know about this deal which trump describes as substantial and a lot of people are parsing through the details the see if that is the case. row we know is the trump administration has said they have reached agreement with intellectual property issues. there is a currency pact inside the agreement. there is going to be agricultural purchases, up to $30 billion from china over the next couple of years. just a few of the aspects of it. this is a phase one deal. importantly, it is not written on paper yet. these came out in the face-to-face talks happening in washington between u.s. and chinese negotiators. over the next four to five weeks, we ask becca to -- expect that to get onto paper. there's a lot of work to be done to get this deal as firm as possible. taylor: our technology audience's ears perk up when you say intellectual property, specifically around ip's, what do we know from this deal? sarah:

sarah mcgregor, thank you. the latest on the u.s. china trade.ore on this and the economic fallout, let's bring in numerous securities lewis alexander. we have seen what could potentially be a trade truce. i wonder, how much will this mini trade deal help with the global economy, given we have already seen significant weakness in parts of the global economy. this chart on the bloomberg showing you the manufacturing slump around the world. >> i think it will be some help. taking a step back from further escalation is a good thing in and of itself. is the u.s.point economic relationship with china is off track. i don't think the deal goes very far into turning that into a positive direction. as long as the countries are pulling in different directions, the uncertainty that exist remains, and that is the drag on the global economy. moment, we are seeing this decoupling happening between the u.s. and american economies, whether on trade, tech, so many different fronts. lord are the implications of that for the u.s. economy at least? lewis: we have se

joining me to discuss, sarah mcgregor, and in studio, shelley, who covers china tech for us. me start with you. is this part of a broader trade strategy? sarah: it definitely begs the question whether it is part of the trump administrations trade strategy to increase the leverage, ratchet up the leverage. a similar blacklisting to companies like huawei, they are not part of the official trade discussions, they always end up in the mix and it seems like trump holds them out as a bit of a carrot to say i can go easier on huawei. i can allow these businesses to start doing business again on some level if you give us this and that. i think it comes at a curious time with these trade talks resuming for the first time since july between high-level officials in washington on thursday and friday, but it might backfire. it could actually serve, i think, to anger the chinese, to sour the mood ahead of the talks. taylor: shelley, if anything has been a carrot dangling, it has been the tech sector. why target the chinese tech sector? shelley: ai is an area that both the u.s. and china ar

let's assess all of that with trade -- sarah mcgregor. at is the administration doing to restrict these companies? sarah: in similar fashion to what has been done to huawei and previously to zte, the u.s. administration is blacklisting a bunch of companies, video surveillance companies, ai companies in china. what is new about this action is previously, these blacklists have been mostly over national security grounds, concerns about the national security threats of these companies. the action would cut off u.s. suppliers to these companies as the punishment for it. in this case, they are citing human rights violations against these minority muslims. i think that this marks a new front in the trade war with the trump administration, trying to use a new excuse, a new reason for cracking down on china. shery: tom, this is not the first time we are hearing of these names. there so much focus on these specific companies? primarily, we are talking about surveillance and camera operators and camera makers. that is the likes of hikvision. the ai c

let's bring in our senior trade editor sarah mcgregor and our china correspondent tom mackenzie. rah, what more can you tell us ban coming a day after the blacklisting of chinese firms? sarah: absolutely. the two issues are linked. these blacklisting of the chinese companies and the visa bans are related to these mass the tensions of minority muslims in china and u.s. concerns about that. these come before the very crucial trade talks in washington planned for thursday and friday. chinese officials are still going ahead, but there's a much bigger dark cloud over the talks. i think a lot of these issues raised by the trump administration were more about national security concerns by the u.s. that maybe china's going to engage in espionage in the u.s. or the companies might have links to the people's liberation army. i think by opening up a new can of worms, they are linking some of their actions now to human rights violations in china and i don't think that will bode well for the government. it is quite an embarrassment and highlights, sheds more light on an issue they don't want i

amanda: sarah mcgregor joins us now from los angeles. just in terms of what we think could be on the table here, the market interpreting it as very good news in some places. what do we think might be happening here? we have had a rash of bad news this week, with the trump administration blacklisting certain chinese officials, banning their visas over human rights issues. it has cast a cloud over these talks. it would be a surprise and sudden good news for the markets to hear that china is still interesting -- interested in talking. that said, it will be tough. china is not often give ground yet on these hard issues, like ip theft or state subsidies. it really is just coming to the table, according to our sources, offering agriculture or energy exports. want the trumpey to hold off on anymore tariffs increases. we have one coming up where they onl increase to 30% from 25% hundreds of billions of dollars in chinese goods. there is a lot of big ifs right now. the bar has been significantly lowered, hasn't it? they are not even asking for th

shery: tom mackenzie and sarah mcgregor, thank you so much on the latest for china-u.s. trade talks. wilbur ross will be speaking at an event in sydney later thursday. we will bring you that speech on bloomberg markets, the china open, so due to an in then. -- do tune in then. demandingn washington immediate sanctions. the president, erdogan, says ground troops are in syria after a wave of airstrikes on kurdish forces. let's cross to washington, and joe sobczyk joins us now. warning turkey that there will be more than sanctions if turkey ask inhumanely -- acts inhumanely. have a decided what "inhumane" will actually mean? we have seen conflicting measures on syria. joe: the president gave no indication of why there is an when it will be crossed. he said, rather, without specifics, that the u.s. would wipe out their economy. if the turks were to wipe out the kurds. but nothing about whether there whaty scale there for might take place. the president of the u.s. is under pressure from some of his own allies in congress over his decision to give turkey essentially a green l

romaine: sarah mcgregor joining us for analysis.went to bring in a senior fellow at the harvard kennedy school -- we want to bring in a senior fellow at the harvard kennedy school. all, there was a strategist over at p&p para bus that basically that-- over at bnp paribas says basically all the expect is a handshake. hopefully, you do get some camera opportunities and some handshakes, but in terms of moving the needle, i do not think very many people have that expectation. what i keep saying, romaine, is that these relationships are not amenable to some kind of deal, like soybeans or whatever. you have got these two fundamentally different economic and increasingly geopolitical systems coming into contact with one another, rubbing up against each other, and it is really an issue of how you manage that relationship rather than waving a major quad, do a trade you, -- a magicng a made wand, do a trade deal, and everything is fine. of 2020, first half the gdp dipped to 1% or something like this, and if the rhetoric on the trade war gets

garfield reynolds and sarah mcgregor joins us now with more.umbers goten those released, we saw a profound reaction. the yields, dollar, stocks all down. how are we setting up her asia? garfield: asia will be more of the same. in asia come of the u.s. dollar will actually strengthen against currencies. asia is very export driven, very export oriented. so exports go to the u.s., if the u.s. manufacturing sector is doing this then that is bad news for them. it follows on some pretty poor pmi's across asia. also industrial production in south korea. i think japan. all ready lots of reasons to be nervous. that will hit stocks and currencies. as far as bond yields, they started backing up seriously because of what the boj has been doing to its market. some talk of bond are beginning but the in my snuffed that fire out. shery: there are some issues, whether semiconductors in south korea or cars in germany. does this mean we should be more nervous in those sectors of the market? beeneld: well, those have the centers of pain. in fact, there has been a

tom mackenzie in beijing and sarah mcgregor in los angeles. let's start with you. what exactly has the trump administration done to restrict business around these companies? administrationp took a similar move today as it did against a company like huawei, where it put it on a blacklist. u.s. companies are barred from doing business with these chinese companies. there are a lot of american suppliers in california who deal with these chinese companies. some of thed from people in silicon valley that it does hurt the u.s. companies as well, and so, with this action today, that really became a bit of a surprise because it was put on the back burner. the trump administration theseced blacklisted from companies are surveillance firms, ai firms, over human rights violations. paul: so tom, what do we know about these companies? they are involved in surveillance. what do they do and why do they matter? tom: these are major companies here in china, but also, internationally as well. they attack, the two of them, for one third of the global market for surveillance cameras an

let's bring in senior trade markr sarah mcgregor and cranfield in singapore. that was much worse than expected. everything pretty much weatker - - weaker. guess we can expect a fairly rough ride in asia. >> indeed. it will not be pretty for equity markets. they certainly have a bleak picture to look at, especially -- a pretty bad start we can expect in asia. we can expect some rocky bond markets as well. everything really started yesterday with the very poor jgb 10 year auction. we had a huge saw across bond markets across the world. weak ism data. that will not go away. japan wants steeper yield curves. we will see more volatility in the jgb market. certainly the focus will be on what happens to asian equities. index look at the ms ci it was already starting to decline a bit since the middle of september. that decline looks as though it has a fair way to go before it finds any serious support. a lot of red on the screens today and there will not be much that they can help today. shery: so how much of the manufacturing slump that we are seeing around the world

trade editor,ior sarah mcgregor, with the latest tariffs on the eu.eries,or tesla but they did not meet elon musk's lofty projections? we will break down the numbers. paul: even disappointing u.s. data cannot put a brake on the u.s. dollar which remains at a two-year high. this is bloomberg. ♪ ."ery: this is "daybreak: asia i am shery ahn in new york. inl: and i am paul allen sydney. strength against the dollar, here is a look at the dollar/yen over the past week. we are seeing this trend continues as long as global risk prevails. nick, how strong is that yen going to get? nick: i think it will have a propensity over the next few months or even into the next year. we have seen sort of another hard knock to the markets, and we will continue to see flow into the yen. crosses,aking of the one always closely watched is the aussie/yen. i know you have a personal interest in this, as you are heading to japan shortly, but more broadly? nick: that really is a barometer of global risk, the aussie/yen. there is further downside. we have got the currency being p

paul: senior trade editor sarah mcgregor and china correspondent tom mackenzie. still to come, the white house goes on the offense and president trump won't participate in the house impeachment inquiry. shery: next, from the trade war to brexit and hong kong, we discussed the big geopolitical threats with stephanie kelly from aberdeen standard. this is bloomberg. ♪ >> we are going to be talking about trade peace, not trade war. everybody is the loser in a trade war, therefore everybody would be a winner in trade peace. lossake it clear that that may be higher on some countries and lower on some others, but everybody is impacted. the new imfwas managing director, giving a downbeat picture of the world economy if the trade war drags on longer. our next guest says any resolution hinges on president trump deciding if they win is taking on china -- if they win is taking on china, or making a compromise deal. stephanie kelly is a senior political economist with aberdeen standard investments. she joins us from tokyo. thank you for being with us. i wonder how much is dep