Oil slides into a bear market as trade tensions add to slowing demand. Brenda cost 20 since its april high. Cost 20 since its april high. Shery stocks rebounding. Treasuries paring back some of the earlier sturges we saw this week not to mention the dollar surges we saw this week, not to mention the dollar. We had brent falling more than 20 since its april the and sliding into a bear market. This despite the fact that we are seeing eight consecutive weeks of your talk piles declining u. S. Stockpiles declining. 1. 4 . Sdaq gained lets futures at the moment under a little bit of pressure, down. 1 . Lets see how things are shaping up in the asian markets as we have a few centralBank Decisions. Sophie it could be a mixed start for the asian stocks after a fiveday loss with several major market threatening to join the kospi, writing our yeartodate gains. Wiping out yeartodate gains. Check out tv stocks, jumping 1 one hour into cash trade. 10year gilts hovering around 10 . The aussie dollar study along with the qb which is trading at 65. 28 ahead of the rbnzs policy decision. Andy a at along with while thailand is seen Holding Steady. The offshore yuan in focus, sticking above the seven handle. The pboc moved to stabilize the currency. Paul. Paul thanks. Lets get a check of the first word news with that of the dead. Ritika gupta. Ritika the japanese economy has fallen to a level not seen since the wake of the the meeting index dropped to june, the lowest since february, 2010. It is one of the broadest indicators of activity, drawing on nine measures. Regulators in singapore and india have approved a stock trading link, ending a yearlong dispute that left investors with no easy way to hedge risk. It is expected to earn official approval and be operational by the end of the year. Aftero sides traded barbs singapore announced single stock futures are some of indias top companies. Australia issued a warning to travelers to hong kong, recommending they exercise a high degree of caution as unrest in the city escalates. There were more clashes on tuesday night as Police Charged protesters who surrounded a Police Station to demand the release of a student they say has been arrested unfairly. There are more protest events planned later. North korea is being accused of hacking into both traditional and hightech Financial Systems to funnel cash into Nuclear Weapons program. Hasgyang has about amassed 2 million. Kim jongun has 30 agents working overseas, controlling Bank Accounts and money transfers. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Shery thank you. The return to u. S. Markets, the halted a sixday losing streak, rising more than 1 after mondays 3 plunge. It was a tentative recovery at best. Su keenan joins us with more. Given the fact that there has been no progress when it comes to those trade tensions su the s p did not get back 885, and that means there is more lingering concerns underneath. He did not have to panic saw in may and december and we did not have the capitulation. We have the tech index on fire. Biggest drop in two months, a bounceback advanced micro. They are benefiting from positive earnings. Beyond meet getting a hit meat getting a hit because of the offering. It frames the question well. What was it that we saw . The all country index had its biggest hit on monday, down 2. 5 . It came back. 5 . Some say the rebound is less than satisfying. We have some concerns, one of which is profit for corporations, especially with the lingering trade war. Citigroup cutting its estimate on corporate profits for that reason. Shery no wonder we are seeing some negativity continue to linger when it comes to oil. Su lets go to the fiveday chart. We are ahead of what could be a bullish supply data released later wednesday. It is unusual to see oil remain down. Some are viewing oil tariffs as inevitable. Take a look at the big picture chart. They are markets, oil down significantly. Was supplanting woes supplanting any concerns about the mideast conflict. R a bit of a bumpy as the pbocide we did get a bit of a bumpy ride. Bitcoin had a shot in the arm from all of this. Aul afterhours trade particularly disney missing its lowest estimate due to a profit shortfall. The announcement after the bell. Partlyrs theme park ride to blame. I thought that was very popular, wasnt it . Su investors thought that would be a big win. Not so. The forcears ride, was not with it. It was one of the reasons u. S. Attendance was down. Perhaps not coming back. Thats going to the disney big picture story. The money they are spending too compete with netflix. That was a big win for weight watchers. If we going to some of the big themes on the Conference Call in addition to the disappointing attendance at u. S. Parks, the resorts profit fell. Might help theed company shouldering the burden netflixh to beef up its like streaming video. They are not there yet. Investors really hitting afterhours. Paul su keenan, thanks. Says trade talks in washington next month are still on despite the latest titfortat trade. We are planning for the chinese to come here next month and if there is a good deal or progress, we may reconsider some things, but similarly, he also said there is no good deal, no progress, he may reconsider some things on the other side. Tensions remain high despite chinas strongerthanexpected yuan fixing yesterday. Lets cross to Sarah Mcgregor in l. A. What is the latest word from the white house . Quite it does seem optimistic to hear that the u. S. Is interested in negotiating a deal and it is looking forward to these talks. It will take both sides to agree to keep talks going and we really have not heard from china yet either way on whether it still plans to come. The u. S. Since the last round has really escalated things by saying they will impose 10 tariffs. Of course, labeling the country a currency manipulator yesterday, which was quite inflammatory to do, it might have huge repercussions for china in and of itself. But definitely, you know, a slap in the face for them, so i think it is surprising to hear that the Trump Administration still expects talks to continue. We dont know if china indicated that in the past hours or days so it will be interesting to hear from beijing about what their plan is. We have seen that they repercussions for American Farmers as the chinese are not purchasing as much as President Trump would want. Are we hearing anything else about how the administration plans to support these farmers . John said today that more farm aid is definitely an option. I can farmers are becoming increasingly vocal. Trade, not aid. That is one of the lobbying message is going on around washington. The Trump Administration has given them 28 billion. Some figures show the revenue that has been collected from these extra tariffs is 20 billion, so the impact on the farmers and the eighth they are aid they are getting is on them. That maythink that aid or may not, that might not actually commented income for farmers is going to be a big solace for them. That will be interesting, how trump response to them. Paul yes, sarah, it has been quite the game of brinksmanship. Fromve seen bold moves both leaders. Is there a risk these could backfire . Sarah absolutely. We heard trump saying his personal rapport with president xi jinping was holding what relationship together through good times and bad in the negotiations. The two like since leaders met, things have deteriorated. Put their best team forward, but it does not seem to be moving ahead. There is no reason to believe they are going to meet to try and get past this impasse as well. It really may be is just a game of brinksmanship at this point. Paul Sarah Mcgregor, thanks very much for joining us. Still to come, we will preview the Central Bank Decisions that are due in asia as pressure to ease continues. Shery James Bullard pushes back at suggestions the fed will cut rates due to the fallout from rising trade turmoil. This is bloomberg. The nature of a titfortat trade war is that theres threats and cap threats occurring all the time. Some of these might be implemented. Some of these might not actually get implemented. The nature of the war is you have titfortat going on all the time. It is not reasonable for Monetary Policy to respond to all these threats and counter threats. Shery that was James Pollard speaking at the nest James Bullard speaking at the National Conference in washington. Great to have you with us, john. Surprising as it backed bullard is it that bullard, who we see as one of the most dovish out of there, is turning a little bit hawkish . Have the markets than relying too much on the said here . On the fed here . This time, he was on the hawkish side. It is not just threats that are out there. It is actually implementation of a lot of these tariffs and we got a lot more information recently about how serious it is going to get. We have the fed cutting twice more, 25 basis points in september and december, and it could happen in a more accelerated fashion, because the trade war has gotten so much more serious, and financial conditions have tightened. That help much will Financial Markets given we have seen this massive selloff the last couple of days . We are seeing global stocks at the most oversold in months. John certainly, the fed action in terms of rhetoric coming out of the media, speeches, out of jackson hole, might help the market quite a bit. It is not going to solve everything. There has to be some progress on the u. S. And china agreement to get the markets really excited again. In terms of where you put your money in this kind of environment, you like japanese equities. Does the strengthening yen not put you off a little . John we have been pretty moderately negative on equity since late june, which is extremely rare for us. It only happened once or twice in the gsc, and japan was one of our two favorite markets, the u. S. And japan. We do not see a recession there or anywhere. Certainly, the yen is getting a bit strong. It is hitting our yearend target. A major problem at this point, but if it gets a lot stronger, it will impact the japanese stock market. Investor, you. S. Will have a currency appreciation that will offset the loss that you get in equities. Paul jerry mentioned before that sheri mentioned shery mentioned they are oversold. Selloff with that big selloff, can you see any buying opportunities . John there are not any major markets we are jumping at right now in terms of equities. Investors,ongterm we look at equities as a longterm investor. Investment. They will selloff if you are a brave person. Sure. Equities are probably a very good investment. U. S. Equities are the top of our list. Shery do you touch equities . Arket we are hearing from the south korean finance minister saying they will try to strengthen their stock. They are taking such a big hit at the moment. The indicesof are heavily into timeline and korea. You have to believe in the tech cycle. They are some tech oriented. There are signs that the tech cycle will start to move up. Dram prices are moving up. A lot of demand for other types of technologies should improve in the second half. Those two stock markets. Korea has a problem with japan. That needs to be sorted out before anybody gets optimistic about the korean market. Shery how closely are you watching the chinese yuan . I am watching very carefully. That is one of the most important things to watch. I do not think they will let it fall out of bed. You have a lot of reasons why not to. They are going to weaponize the yuan, but they let it weaken. Shery didnt they already weaponize it by letting it weaken past seven . John made it. Unfortunately for them, trump responded and the u. S. Responded with a pretty aggressive move that should scare them. It might have scared them away from doing anything too radical. Paul whole currency manipulation thing i do find rather perplexing. I would like your take on it as well. When china stopped popping up the yuan, the market began to do its work. It was kind of when china stopped propping up the yuan that the market began to do its work. John only god knows how much money would be going out of that country if it had free access. I do not have a good number as to what the natural rate of the yuan should we. Should be. It seems priced at a level that is not unreasonable, although it so has a very large trade surplus. The current account surplus is low due to a lot of questionable methods of calculation, but the account is still quite in surplus, so using sort of an oldfashion rule of thumb, and you would say the currencies still could appreciate further in order to make the trade account balance. I know you are caught in the scent of geopolitical risks right now. With that in mind, what is your gold exposure like . John we do not have that as an class. We do predict the price and have it going up by the end of the year to the mid1400s. And then even higher next year. So many geopolitical risk south fair and all of them are actually getting crystallized in many ways. The chineseu. S. Trade war, the japankorea trade spat. You have brexit, iran. North korea is not acting very well either. That is one of the main reasons why we did turned negative on Global Equities back in late june was because of geopolitical tangibleting much more and recognizable by the market. Shery thank you so much for joining us. He is the chief global strategist. We want to take you live now to coverage of the launch that Spacex Falcon nine rocket from Cape Canaveral in florida. We are talking about the satellite for space come. We know it has been flown twice. Back in july and november of 2018. A rare, expendable omission. Were talking about the rocket not returning to landing after takeoff and will in fact fall into the ocean. The payload is an Israeli Communications satellite. We are waiting for that to happen. 15 seconds. 10, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0. Ignition, lift off. Paul sheri mentioned this is a rare Spacex Mission where the falcon nine rocket is not going to be reused. 6. 5 tons. It is going to need all of its fuel. There will be no fuel left for the real land, so this rocket is going to be in the sea. Vehicle supersonic. Coming up on one minute, getting ready for maximum shery this is daybreak asia. I am shery ahn in new york. Paul i am paul allen in sydney. Hsbcs swiss Private Banking million topay 330 settle an inquiry in belgium. The preliminary agreement must still be approved by a judge next month. Hsbc came under investigation after a former tech worker gave details to prosecutors. Hsbc settled a similar fine in france. Shery disney hit by falling theme park attendance and the costly flop of a marvel movie. Thirdquarter profit fell to one dollar. 35 1. 35 a share. Disney saying lower attendance led to reduced profits at domestic theme parks. Paul occidental is selling 13 billion debt to pay for it. Occidental received orders that peaked at more than 75 billion, the biggest demand for a debt sale since saudi aramco received more in april. Investors are willing to take a risk again despite volatility in global markets. Still to come, brent crude slid into bear market territory as the trade war threatened to eclipse in the middle east. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Ritika this is daybreak asia. I am ready corrupt or what the first word headlines. James bullard says policymakers have already taken steps to account for trade war uncertainty. He is only expecting one more rate cut this year. He told the National Economists club in washington that it is important to watch the data ahead of the feds next meeting. In june, the forecast 8. 5 cut 0. 5 e end of the year a cut by the end of the year. Of these might be implemented. Some of these might not get implemented, but the nature of the war is you have titfortat going on all the time. It is not reasonable for Monetary Policy to respond to all these threats and counter threats. Ritika london and brussels are trading blame over brexit with less than three months until the latest divorce deadline. The u. K. Minister in charge of planning a new deal no deal says the e. U. Is at fault. Brussels says it is open to talks but that the e. U. s position remains unchanged and the current deal is the only one possible. The Trump Administration is keeping up the pressure on china, slapping tariffs on more than 4 billion of wooden cabinets imported into the u. S. In thee is a small step trade war that comes as the administration prepares to publish a final list of goods to be had by far greater duties. President trump is imposing tariffs on 300 billion of imports and is threatening to go higher. Regulators in singapore and india have approved a stock trading link, ending a yearlong dispute that left investors with no easy way to hedge risk. The proposed connect is expected to earn official approval and be operational by the end of the year. The two sides traded barbs after singapore announced single stock futures on some of indias top companies. Global news, 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Shery. Shery we are half an hour away from the open in tokyo, sydney, and seoul. Lets turn to sophie for what to watch in the markets. Samsungwe are watching and its suppliers on speculation that jap