peter oppenheimer from goldman sachs.ng you more exclusive coverage from the goldman sachs leverage conference your out the morning to stay tuned. guy: welcome to the european open. i am guy johnson. my cohost matt miller is out today. what are we talking about? a mixed session in asia among kents -- continuing concerns. stocks are reopening after the labor day holiday. the cash trade less than 30 minutes away. guy: an emerging crisis, argentina's

joining us from munich is peter oppenheimer. this is all j.p. to quantify blanket tariffs and what that would do for s&p year on, down 5% to 10% year. do you agree that this is a conversation that needs to be had? i think the markets have already absorbed the risk to some degree of escalation from ?ach of these levels the overall macro effect globally i think is relatively modest. there is a multiplied effect through all of this. at this stage, i don't think it will be very significant. david: we were taken last week with a report from you and your team, the ball/bear indicator goldman sachs maintains. he will put up a chart you know, that we are at the highest levels of 1969, which is historic. we may be due for a rough patch. explain that. yes, absolutely. i think there are two ways of interpreting this. one is that we are at risky levels. there is potential for a sharp drawdown in equities. a pointr is, we are at where we are likely to see a very significant slowdown in get a muchd will flatter profile. it is the latter we would think more li

to talk more about those trade tariffs, i'm joined by peter oppenheimer from goldman sachs we have seven weeks until the midterms is this an escalation from president trump that will help the u.s. markets, do you think >> i think the uncertainty about where this goes and the potential impact on growth is not positive for risk assets in general. the focus is on the uncertainty about where this ends and what the retaliation may be i would say it's not a positive overall in terms of peoples attitude towards risk or the final markets. >> the stocks that have exposure to these measures that may take effect next monday, the 24th, do you see them as struggling over the next few days or will they be able to shrug it off? >> this is thought we would have this 200 billion the question was more about what the size of the tariffs on that amount would be. in a sense what's been announced is less than people were fearing. so in that sense -- >> you think it was priced in? >> it was priced in the question now is what china does to retaliate and how that may escalate overall so far from what has been an

peter oppenheimer, we will get more later on, he says there is. the dax coming back to unchanged.e with paris. you also have iron ore under pressure. we are waiting for the next results. nejra: a bit of a mixed session in asia. you have the topics rising to -- aighest since the fed racing its loss. gains in japan fueled by a weaker yen. the yen hitting a two month low against the dollar. divergence?olicy we have had comments from the boj minutes and from kuroda. on the shanghai composite, that is lower by 0.7%. it is chinese equities the risk of sentiment relates to trade wars seems to be reflecting. the shanghai composite lower. have been seeing copper get hit on the london metal exchange. that is something to know. -- notes. brent crude a four-month high above $80. we are now above $81 a barrel. wti higher as well. atst half revenue coming in 1.96 alien pounds -- a billion pounds. tax coming in at 311.1 million pounds. the estimate was 315.3 million pounds. that first-half pretax is a little bit of a miss from next. the interim dividend per share is coming in. , whatare the main

user oppenheim or will join -- peter oppenheimer will join us at 8:30 a.m. in new york.cine: this is bloomberg surveillance. i'm francine lacqua in new york. tom keene has gone to the radio studio. this is what we are looking at in terms of our biggest stories. by -- it is down. -- pretrade.ped sky up 8%. a lot of questions that comcast be fox in this $39 billion sky auction. what is next. one of the things we try to get paul sweeney to answer is what happens to fox's stake in sky? it is unclear what will happen but unlikely if you think of the rationale they will hold on to that. let us get back to brian levitt, oppenheimer funds senior market strategist. we talked about the fed, about brexit. what we have not talked about is japan. stocks are doing well. they posted the biggest weekly gain since 2016 and we do not talk about it. brian: japan was an economy many left four dead because of -- the for dead because of lost economic activity and lost economic returns. gdp per capita growth has been good and the big story in japan is the restructuring of the businesses and th

. >> that was peter oppenheimer speaking earlier.ou can find charts relative to the conversation including this one, the growing market cap of the maga stocks. they are approaching $4 trillion, not there yet, but with apple and amazon crossing that threshold, it is a matter of time. from new york, this is bloomberg. ♪ ♪ caroline: breaking news. hathawayn, berkshire health venture has confirmed a new chief operating officer. onwill bring you plenty more the updates to that particular business, but remember, this is something that is taking the insurance sector by storm. scarlet: sources according to cnbc, stoddard was set to start a new job today. the sectoro report, we focus on utilities. julie hyman is back. julie: the gains today, we are looking at the one year chart to show that they have not been doing very well, but it is one of the best-performing groups and today's session along with financial stocks, a bit unusual that we see the two rise in tandem. we have 10 year yields pushing fire today and typically, higher yields are no