Minister the right to negotiate the split from the european clear resolutions the trade war union. China to braces and no clear meeting insight as well as tensions around brexit and huawei and weak for a long struggle. Manufacturing data. President trump says any trade deal will be far tougher if he this points to how risky the trade war is for global wins a second term. Economies. In japan the nikkei down started. Get slightly. We expect pmi composites today. Look at the land the yen have the dow and the nasdaq off of at 10 5. 7 coming falling more than 1 as session lows of one of 5. 74. Industrial and tech shares led declines. 105. 74. Firmly in the red, and we continue to lose ground as we see trade tensions, concerns the kospi coast lower yesterday. Over brexit as well playing to 12114,5trading at the markets. Fors p 500 losing ground the first time in four sessions. Level. Weaker than expected we also have u. S. Factory data 1211. 45. Signaling contractions for the first time in three years. Treasury yields also under pressure. U. S. Futures not doing much. In outlook thats already been we have plenty of data coming battered by the japan south out of asia this morning. Let us see how things shape up. Korea spat. Are remaining take a look at australia and new zealand markets, the asx 200 is sensitive to the latest on the trading lower as well as kiwi trade talks. That was weeks after data in the u. S. Is pointing to risks with stocks. The trade war with global. E expect australian gdp recession still looming. A muted open. Red and green across the board, at the slowest pace but not a lot of big swings. Clearly a lot of caution. Of growth in 20 airs. Economists downgrade significantly their growth surveyomes below the prospects, timing with gdp number of 1. 4 percent growth we saw the rba set the key growth expected to be below 6 . Benchmark rate yesterday. To give you a quick look strengthening housing at Economic Data we are expecting. Japan bank pmi composite, markets. Singapore and hong kong pmis, australias Second Quarter gdp, mining lifting operations. Which economists are expecting the economy has reached a gentle turning point so well see if to have little change from the the data hold as well. The firsts chicken on previous quarters reading. Vices pmi as well as word news now. Boston fed president s expected to rise to 51. 7 from july. If you 1. 6 reading. Said the u. S. Economy remains relatively strong despite growing threats. The chinese yen, the central he is not convinced of the need to cut rates later this month. Bank has kept its daily fixing if consumers continue to spend above that seven stronger and Global Conditions do not than that 7. 1 level in an deter rate further, the u. S. Regrow at 2 . Apparent level effort to if so, no immediately policy stabilize the economy. Action would be required if you look at offshore and those kind of headwinds could onshore yen, you will see traders have not kept to that become appreciable. Concern. If they do and start slowing down the economy, we should react once we see it in the data. I do not think we should the ing sentiment amid anticipate necessarily that that is going to happen. Committing concerning as long as we are growing around sentiment about the trade war. 2 , i do not see nearly as much of a need for taking immediately thebut one session over policy action. Past month, and analysts are trump has stoked the protecting it could fall further to 7. 5. We are looking at the offshore trade war saying china should deal soon or face a tougher term weaker. We will have to look at how the should he went next years pboc prices it. Thanks very much. Election. He said the u. S. Is doing well in negotiations adding he is certain beijing would prefer to talk to a different lets check on the first word news now. Administration in washington. He warns china things would be stokedident trump has far harder should he win a the trade war. Second term next year. He said china should do a deal that hasand the storm soon or face tougher terms if he wins next years election. Flattened and swamped the he tweeted the u. S. Is doing bahamas is edging north toward well in negotiations. The eastern seaboard of the u. S. , living devastation in its wake. Dorian is now a category two he warned china things would be storm but leave the islands up far harder should he win a to 70 underwater, with ports second term next year. And airfields out of action, as air rescue missions get are lowering chinas underway. At least five people are known to have died but the government growth forecast to below the communist party target levels says the figure is affected arise. For 2021. Tanker sought by bank of America Merrill lynch and Bloomberg Economics cut gdp the u. S. Has disappeared from projections to below 6 due to satellite tracking off syria, prompting speculation that ship is preparing to transfer his the escalating threat from the trade war. Cargo to another vessel. The last signal from the ship bank of america also says chinas current stimulus is insufficient. Came on monday according to president xi jinping says the tracking data compiled by bloomberg. The ship is thought to be carrying 2 Million Barrels of oil and was briefly seized in communist party must prepare for what he calls a longterm struggle amid a slowing domestic gibraltar on suspicion of smuggling. Economy and an increasingly confrontational United States. Its tone toftened officials must display a spirit hong kong sang peaceful of struggle to overcome the demonstrations are permitted although violence would be challenges facing china, which punished. Will likely continue all the way officials continue their support through 2049, the 100th for chief executive carrie lam and dismiss protester demands for to universal suffrage. Anniversary of the peoples republic. Meanwhile prominent democracy china has softened its tone on hong kong, saying peaceful activists long visited taiwan demonstrations are permitted, to urge support for hong kong, although violence would be calling for mass demonstrations punished. In support of the protest officials continued their movement. Support for carrie lam and dismissed protester demands for global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and true universal suffrage. Analysts in over 120 countries. Meanwhile, prominent democracy activist joshua wong visited i am jessica summers. Taiwan to urge support for hong this is bloomberg. Kong, calling for mass u. S. Factories in the demonstrations in support of the protest movement. Global news, 24 hours a day on air and tictoc on twitter powered by more than 2700 journalists and analysts in more joined the global slide for than 120 countries. Manufacturing with the imfs report for august falling more than forecast 249. 1. Summers. Ca on Economic Data front we expect to 49. 1. This is bloomberg. Getting he is lets get more from mliv is heading for a snap election strategist mark cranfield. After boris was defeated in the house of commons. I want to start with that, the labor opposition won support tensions frost really is Second Quarter gdp one gets the feeling we are being softened up for a and denied the Prime Minister the right to negotiate the split week read. From the European Union. The Prime Minister saying this week that there should not be any kneejerk reactions to bad numbers. Yes, quite right. The rba in their statement it means that it means thas yesterday did say they are ready to lower Interest Rates again, on the brink of wrecking any deal. Should the entry economic paul joining us now is the director of the institute for picture warrant such a move. Global finance and professor of it would not be too much of a finance at the university of new surprise. The forecast already for south wales. Just when you think this cannot get more complicated, it somehow Something Like a 1. 4 number, which by australian send does. Downwards is a low read on Jeremy Corbyn is saying he would recent australian sanders is a support an election a snap low read and gdp. Looking at the current context election, but only if not surprising. Legislation is passed taking no Slower Growth in many Key Countries which australia trades deal off the table. With. Its no wonder they would also suffer from some spinoff from then have to will this. Some countries even going into campaign, win, and repeal that . Contraction, part of europe, what would happen then . Germany in particular. I think the crux of the it gives you a signal that glow matter is that the labour party growth is pretty soft. Australia is bound to be caught see theg we want to up in that. His Major Trading partner, china house of commons passed this is having a tough time as well. Bill against no deal leaving the it is hard to going to anybody European Union, an extension of that australia is going to slow. It is not look as though still that, but the house of lords he is going to go into recession yet, which may be a relief to people. Should approve this deal. But theres no doubt that when we look ahead the specs are not in other words, it takes a few that great. Days, but the push for the so even of the Second Quarter current government is that might be relatively slow, it could get worse for australia in tomorrow they are also going to introduce, should this be the month ahead. The rbas on standby and markets passed, and election. Are pricing for lower rates in austria. Sometime before the end of the year. Shery so we are getting another health check about the chinese economy with more pmi numbers today. What are we expecting . They will probably show the an election. The question is whether the government has 66 of members of parliament to support, if you like, general election. That is a . Pmis are still above the 50 that is a question mark. Line, even other manufacturing the government may want to block was below that. The house of lords, so people these are services and composite going to the election, knowing numbers which are usually higher there is no deal approved by the than the manufacturing anyway. The trend is downward. That is the key point for people to watch. Two houses were no deal brexit, china, theres a key player down and i think we will find out tomorrow whether there are trend in all the major data enough members of parliament not coming out of china. There has been no respite this to support the government year. Position if the labour party is everything industrial, production, sales, on a downward not going to support the general election, that yes, with minimal trajectory wherever you look. So people will be wondering whether or not in the second half of the year, china really , 50 never approval can match some of these gdp forecasts, which the Central Government is projecting. Tomorrow rather than in a fewaho aboutna is able to hold 6 growth, it will only be by a narrow margin. Predict the outcome, but there i do not think anyone is under has been a number of the the illusion that the chinese referendum came out of left economy is slowing down. Field. Theresa mays loss of her when you look ahead into 2020, majority came out of left field. It is going to be very hard for this time around, you have the china to sustain anything like variable of the brexit party. The kind of growth it has shown impossible to predict an over the last couple of years. It is only a matter of time outcome. Before the government has to it is going to be difficult. Revise lower its own projections. That is the very issue. As long as the trade war continues the way it is, it is it is going to be difficult going to affect everybody. Because not only the house of commons is divided, virtually chinas red at the center of that. The trend is for Slower Growth. Cranfield, thank you 5050 when you look at people who support remain as well as leave, but out the same time, joining us from our mliv team you can follow more of this every family in the united story and all of the days kingdom is divided. Trading on the bloomberg at mliv the country is bruised, the parliament is bruised, the. You can get a market rundown and families are bruised as a result one click. Theres carver commentary and of this historic crisis facing this generation. Analysis from bloomberg experts seek and find out what is affecting your investments right now. Adding to gloom on the markets or the latest twists and turns a general election might provide for the First Time Since the referendum an opportunity for in the brexit drama, boris the electorate to seeing the johnson lost his forced vote as you keep Prime Minister. Pros and cons of remain versus setting up another class as leave as well as no deal exit rebel conservatives and u. K. Opposition debate another vote. With a deal if you like. Our Senior International editor could be alection jody snyder. Welcome step for the public for electorate regardless of the what is johnsons next move now fact the European Union is that he has suffered this saying whether this government crushing defeat in parliament . Or not, it is not to starts he is going the motion for a snap election. Going to change. Shery how would the european with october 14 penciled in as that date. Of course the brexit deadline is union feel about a corbyn october 31. Premiership . He says he does not really want i do not think they would another action. Like to enter into politics of he knows the public does not left and right. What one. My understanding is the european but he think that is the only way to try to get brussels to union has the principle on which move to get something done. He says the public should decide this framework of leaving the who they sent on october 17 to European Union has been negotiated, and i do not think deal with brussels. He has been playing this kind of they want to be seen that they are supporting one government game of chicken, saying he is against another one, but what we willing to leave, to take that know is labor potentially a no deal brexit, and to leave labor government would like to without a deal, and to try to see some kind of customs union. Force the hands of the e. U. , they want to have a deal before which so for so far has not they leave the European Union. Been forced. Parliament saw different yesterday and said we do not if they can get the option of want to play this game with the revoking article 50, always will strategy. We want to require you to have to go as had and have a delay. Given alive if you like now it is a test of wills in the current politics unfolding parliament. Arey in the meantime we in the United States the United Kingdom. Seeing the pound seesawing the u. K. Is announcing stronger in the session. Tim, what is the take for investors . Number one, youre right to 2. 4 billion of extra brexit funding. We have seen brexit uncertainty focus on the pound. Continuing to rise, of course. That is what is going to be the near term deciding factor from gtv chart showing the economic the standpoint of movement in rate, of the u. K. Many different security markets, indicators such as employment, whether it be bonds, stocks, et inflation, growth, certainty. Cetera. The thing that i would focus on what would work out better for , is quite clear the u. K. Economy . If we have a prompt no deal exit from the European Union where to think about the pound versus you can actually gauge what is the dollar which you have rightfully got charted. Going to happen right away, the the other thing to think about shortterm pain, or just the is the pound versus the euro. Continued uncertainty of not is a lotn why say that knowing what is going to happen next . Of what is going on with anything compared to the dollar has to do with u. S. China trade i think there are uncertainties with regard to policy. Both scenarios, basically. Is pound euro relationship the question here is, there have been number of scenarios put what is going on with breaks that than anything else. Forward by various researchers, brexit more than by even members of parliament, anything else. We are in a binary situation. If we end up moving through an which indicate that if you leave the European Union without any election, if thats what deal, you are going to create transpires, toward a hard brexit , if europe does not link rate we have further pound weakness. Enormous uncertainty, not only in the shortterm, but also the if europe does not blink, long term. Then we have a pound weakness. We are in a Global Economy where if we end up backing out and we we are facing a trade war have an extension and we move protectionism, free trade is no toward potentially even a deal in the most positive scenario, longer the name of the game. Then we have sick nick and more bilateral free upside on the pound. Significant upside on the trade within the United Kingdom and hundreds of countries may pound. And their implications for the happen soarily stock market. Paul in terms of the political what arei, quickly, including the United States. As you stated, they also have to come to a conclusion with regard to a deal, should they prefer johnsons opponents doing now . Theyre going to be for this the deal, what is the outcome of the deal and how the u. K. Can bill to delay brexit till leave. January 31, saying that takes that in itself might come to an essentiallytheyre trying to end with what is unfolding this take the no deal brexit off the week, whether it is going to be table and get negotiating room a general election which could to come up with another plan. Solidify in the minds of the electorate the opportunity for Boris Johnson of course has said he does not want to see that because he wants to keep alive see theo really the threat of that no deal brexit. To try to push the e. U. Into doing something. Of course he lost a ministry referendum, one way or another, the arguments i