Traded deal with india and japan. Asian stocks slip ahead of saturdays meeting with xi jinping. Americas biggest banks have promised to boost payouts after all 18 aced the fed stress test. Deutsche bank had a surprise pass. Switzerland is set to block trading of its shares in the eu after treaty talks with russells failed with brussels failed. Matt good morning. I want to draw your attention to something that is market related but not a driving force. Still, i think an incredibly interesting move. This is just a threeday chart of bitcoin. We started at 11,000, went up to 14,000, then back down to 10,000. Just massive moves. Gratzrd from michael nola that he had wished he sold more on wednesday. His comments could be one of the things that weight on bitcoin in yesterdays session. Incredible to see a 30 moved in the price of bitcoin. We see a mixed picture if we look at european futures just about 30 minutes away from the start of trading. Dax futures are gaining right now. You will see that cac and ftse futures are down. Not big movements in terms of any of the futures. We will have to wait and see which way markets go today. Maybe traders will be sitting on their hands waiting for the result of the trumpxi meeting tomorrow. What we see on the gmm is something quite stable in the major Asset Classes. Waiting for that g20. If you are looking for volatility, they goodness for bitcoin thank goodness for bitcoin. Some of these asian markets are in the red. Overall, the asian equity session is in the red. We see some appetite for emergingmarket currencies. The dollar is pretty flat. The other side of the gmm tells us that is some appetite coming through for fixed income. We see treasury yields pretty flat. Gold seems to be on the move but few other major assets making any big moves. If you think about where we are in terms of building up to the g20, it feels like the startup of a race where they go, ready, set. Markets waiting and watching. U. S. Futures also pointing to a fairly flat start for u. S. Trade as we wait to hear what xi and trump come up with an just how much or how little that ends up being. Billionaire paul seger, runs elliott meant paul seger, who runs singer, who runs elliott management, says this. I think we are at the hi gh end of the risk spectrum. So i am expecting i have been expecting, it is not todays epiphany the possibility of a significant market downturn. Nejra that was policy or that was paul singer speaking to Erik Schatzker in aspen, colorado. Good place to start a conversation with garfield reynolds. He joins us from sydney. Paul singer had a gloomy outlook for where markets are headed but did not have timing in mind. Think about how low bonds and equities have done in the first half of the year, garfield how well bonds and equities have done in the first half of the year, garfield. How are we set up for the second half . To try and find out which of those 2 Asset Classes falls over, bonds or stocks. It seems very unlikely you could get a similar extended rally for both in the second half of the year, given just how high stocks have gone and how low bond yields have gone. That is your key question. Matt by the way, were going to see pictures, i think, of bolsonaro with trump. Incredibly interesting story, as his advanced team was found with 39 kilograms of cocaine headed for the g20. That was stopped in spain. I think he has put the blame on a member of the military there. These are two leaders that take very strong, authoritative positions. Interesting to see them sitting here and talking to each other. What are the expectations for trump at the g20 . Initially, we were all focused on the meeting with xi, but he has also talked about his great relationship with Vladimir Putin. Hes talking to bolsonaro there. Rdogan innext to earn the group photo, which i thought was fascinating. I think the market is strongly expecting that he will not rock the boat for a change. Perhaps his emphasis on being everybodys friend as the summit gets underway sort of prefigures that. That would tighten with tighten with the idea that in with the idea that he has already started his campaign. Hes on the world stage and wants to show is best side. Officials on the chinese side have made it clear that we should expect there to be some sort of a trade truce, some sort of a return to talks that could lead to a resolution of this problem. I think that is very much the base case. The potential tail risks on either side would be i like to look at what happened with that mr. Trump had with north koreas president. If you look at the first one, you had a very happy seen and an detailed, not a very one. In the second one, you had trump storming out. I think those are the potential risks you could have on either side of that base case. Either of those could cause a lot of market fluctuation, especially because rates are going to be so key. Where do people see the fed going . Where the fed is going is very much predicated on that base case of a trade truce. Nejra lets listen in to what President Trump is saying about his meeting with xi. President trump you will know maybe before most. We will see what happens. It will be a very exciting day. For the world it will be an exciting day. A lot of people are talking about it. It will, hopefully well for both countries come out well hopefully for both countries and hopefully it will work out well. [indiscernible] President Trump no. Good question. No. We discussed a lot of things with president putin. We will have to see what happens asenezuela, as was well as [indiscernible] we will see what happens. [indiscernible] President Trump not at all. Things take time. We are behind the people of venezuela. Thats who we are really behind more than anything else. We have been helping them out a lot, bringing a lot of food, medical, and other things to venezuela. We are working very closely with columbia, who has helped. It shows you what socialism can do. I have been watching the debates a little bit and i was not impressed. Thats what you are talking about. That has become like the socialist party. I heard a rumor the democrats are going to change the name of the party from the Democrat Party to the socialist party. I am hearing that. Lets see if they do it. Thank you all very much. Nejra President Trump sitting alongside the brazilian president , bolsonaro. Members of the White House Team accompanying him. We have secretary mnuchin there, you can see wilbur ross. Plenty of his team alongside him talking about what we might see from his meeting with xi jinping , the chinese premier. He will have that meeting tomorrow. He said the world is watching. Certainly, markets will be watching. Thank you to garfield reynolds, who was giving us the Market Analysis before we listened to a President Trump had to say. If you want to join in the debate, get involved in the question of the day. Give us your thoughts. Matt . Matt i just cannot leave it on said. The president must have been joking when he said the Democratic Party was thinking about changing its name to the socialist party. Jessume he said that in t. You saw mike pompeo laughing as he made the comment. We are live in osaka with more from the g20 gathering of the most powerful people in the , pretty much overshadowed by donald trump and his bilateral meeting. This is bloomberg. Matt welcome back. This is Bloomberg Markets . Ropean open 16 minutes away from the start of cash trading across the continent and u. K. Futures mixed. We were seeing it mixed picture 10 minutes ago. Not a lot of movement in either direction. It remains the same, as markets and the world are awaiting this meeting that could determine the next chapter in the trade war mattoon the u. S. And china. Discussions between the u. S. And china. How is this conflict affecting trade relations among g20 nations . Annmarie hordern has the details. Good morning. Asde is top of the agenda World Leaders meet at the g20 in osaka. There is that highly anticipated meeting between trump and xi jinping. I have been looking into how global trade is working, how interconnected it is. You can see this looks like a web of trade. The United States biggest trading partner is china in canada. Mexico, and the u. S. Has a trade surplus with the uae, belgium, great britain, and the netherlands. When you look at trade as a percentage of gdp, the picture looks drastically different. They are less dependent on International Trade further gdp. Countries that could be hit the hardest are those closest to the u. S. , like mexico and canada, as well as germany, france, and south korea. Nejra thank you very much. That is the latest on trade. For more, our chief north asia correspondent, stephen engle, joins us. We have had so many twists and turns in this g20 already. We saw trump with Vladimir Putin, with bolsonaro talking about his meeting. We spent a lot of time of lingering on what might or might not come of the conversation with china. What else has been happening . Know we have, i been kind of lingering. The last 24 hours i have been inundated with bits and pieces of news. We are all really looking forward to the meeting tomorrow. It is now being called a working lunch at 11 30 tomorrow morning osaka time between xi jinping and President Trump. We just heard the comments from President Trump about the potential meeting tomorrow. He said, it will be a very exciting day. Ultimately, it will work out. He did not elaborate on what that means. Does that mean it will work out for the u. S. , china, both parties . We do not know. We had that meeting earlier between donald trump and Vladimir Putin. Some jokes and smiles about the interference in the election, hisre donald trump wagged finger at Vladimir Putin and said dont interfere in the elections, please. Both of those men smiling to the camera. That is against the face of a very serious subject. They talked about syria, iran, venezuela, and they talked about ukraine. Not sure whether the ukraine issue was about the detained ukrainian sailors, allegedly, by the russians. A lot of these discussions, a ats happening on the sidelines of the g20 ahead of the meeting tomorrow. Matt did he say please . Was it just a command, dont interfere in the elections . He said, dont meddle in the election, please. Matt thats interesting, so asking nicely. Thank you very much. Our chief north asia correspondent in osaka following this g20 meeting. We want to go to debra mao in hong kong for the Bloomberg Business flash. Deborah . Boeing falling the most in six weeks on bloombergs scoop that it could take three months to fix the latest Software Glitch on the 737 max. The issue was discovered during faa simulator tests when the pilots experienced a lag in Emergency Response time. Apples design chief is leaving after decades at the iphone maker. He is moving to form an independent company with apple as one of its primary clients. He is responsible for the look of the companys most iconic products. How much was he worth to apple . The markets verdict was 9 billion. That is how much apple lost value when the news broke. Volkswagen has raised over 1. 5 billion euros selling a stake in its truck business after pricing that offer at the low end of the target range. They expect to divest 11. 5 of traton at 27 euros per share. June is not over and so far Large Companies doing business in europe have announced job cuts. The latest is stored motors. Ford motors. They joined peers in industries from autos to power in making massive layoffs to cope with the downturn in their businesses. Nejra thank you very much. Debra mao in hong kong. We are minutes away from the start of equity trading, the last trading day of the week. We are waiting for that g20. We will take a look at stocks to watch, including swiss equities, as the government blocks their trading in the eu. This is bloomberg. Nejra welcome back to Bloomberg Markets european open. Lets get our stocks to watch. We are covering Deutsche Bank and this really fascinating story coming through from switzerland. Lets start with Deutsche Bank, shall we, and the surprised pa ss they received from the fed. They passed the test, which they failed in the past a couple of times. It is definitely good news for the bank and its management. They had to fight a lot of stuff in the past couple of weeks. Investors will appreciate that. You see shares rallying in the premarket, up 4 . Matt those impressive Deutsche Bank towers. What about swiss stocks . You cannot see zurich from your perch in frankfurt. You will not be able to trade the shares from frankfurt or anywhere in europe, right . Thats right. It is a crazy story that came up a couple of months ago. I was pretty sure that they would find a solution. Yout now, it looks like will not be able to trade any swiss stocks coming next monday. There is still a possibility of a lastminute deal. We are hearing it is very unlikely. It will be a bit messy and you should watch liquidity of some of those midcap stocks when those european markets will be closed. Nejra it is interesting. I was looking i was looking at the size and scope. One third of trading in swiss shares currently takes place in the eu and the rest in switzerland. Of a seems to be something setting of a brexit example. Switzerland caught in the brexit standoff. Thats right. The holding i believe is on sentiment. There is no rationale behind it. There could be an easy solution if both parties agree. With the Brexit Debate and whats going on in europe, everybody is defending its own place and its weighing on the issue. Matt thank you for joining us from frankfurt. Looking at pictures of a foggy zurich this morning. You can get all the latest stock stories from are Equities Team by typing first bill on your bloomberg terminal first go on your bloomberg terminal. , go tonews section different subsections and you can find firsts there. Futures are mixed, as the markets and the world are waiting for that trumpxi meeting. We have four minutes and 40 seconds to go on to the start of stock trading across the continent and in the u. K. Issue tradingnew in frankfurt as well, a new i feel the new ipo. Trucks, are watching vw traton. The ipo has set unessential milestone. We are watching shares in merlin. They seem to have done a deal with the lego owner, blackstone, and others. We will be back with the start of Equities Trading this friday across europe. This is bloomberg. Anna a minute until the start of cash Equities Trading. Friday morning on the European Equity market and a minute until the start of trading this friday morning. What does the session hold . We are in a waiting pattern, and waiting for the g20 meetings to get into there. Weve seen bilaterals between trump and many others overnight and others. , we are of that in mind lingering on the asian equity session. Territory,negative down. 1 . Oil price in decline although we are set for the best month of oil prices is january. The iran story making a difference. U. S. 10 year hovering around 2 . U. S. Futures were fairly flat. Waiting to see what happens between trump and xi. European futures indicating a mixed start as we wait for progress. President trump says it will work out. He is expected to meet xi at the g20 tomorrow morning. The world is watching and wondering what will come out of that meeting. Lets talk about the equity markets. Looking at clues coming through riskthe g20 around sentiment, how the markets want to be positioned going into the weekend with this potential risk event, and then come monday, what will the stories be . The japanese yen, fairly flat. Ftse 100 flat, the dutch market flat, euro stoxx flat. We are waiting. Are inaid earlier, we the phase before you start going and we dont know which direction the athlete will be sprinting. The sectorat perspective. No big clues as to sentiment. Financials, looking mixed. Sector to interesting watch because we had the stress tests out of the fed and Deutsche Bank got a surprise pass. That could be a stop. Health care in the red. Basic materials going higher, utilities look a little stronger but generally, a mixed picture and flat start to fridays session as we wait and watch osaka. Matt im looking at the mov screen to see individual movers and we have 345 stocks up, 225 down. Interesting to see all the german names. 600 lift the stoxx helping to hold it at a level. 02 adown, but only point. The biggest boost to the stoxx basf after thep, chemical maker announced it would fire some 6000 people. Adidas, the most interesting. To watchme a story adidas and puma because nike had its first earnings miss in seven years. On the downside, you have some big heavy stocks pulling points off the stoxx 600. Novartis is one of those. Interesting to see the swift stock, as you will have difficulty trading it outside of zurich in the near future. Holdings,e roche dragging down the stoxx 600. You see Royal Dutch Shell as oil prices come down. The novartis and roche, biggest losers by points. Interesting the contest of that swiss story. European markets, opening a bit cautiously today. This afternoon mixed session in asia as Traders Await the weekends meeting between trump and xi. Anymore tariffs . No, nothing. Anna President Trump saying he hasnt promised to hold off on new china tariffs. We will wait to see what the meeting delivers. We have the head of Flow Solutions at societe generale. Great to have you with us. I have a chart which illustrates a point you were making today, the weakness in some chinese data points we have seen. This picks up on new lows and the weakness there. Is this something you think