Is out. China removes another obstacle to Foreign Investors. It is that time of year again. We have the highlights from apples new Product Launch, including a fifth generation of the watch. News out ofing south korea. The august jobless rates coming in at 3. 1 . Way belowy, estimates. Analysts expected it to come in at 4 , which would have been the fourth consecutive month of the Unemployment Rates coming in at 4 , but surprising the markets, 3. 1 , the lowest since 2013. South koreas august adjusted rate at 3. 1 , adding 450 2000 more jobs in august versus 452,000 more jobs in august. We have the passage of an extra 452,000budget in early august t could have lent some additional support, but still, the lowest Unemployment Rate since 2013 reallyin at 3. 1 is interesting, given the fact that we have seen some private Sector Employment weakness with the ongoing trade tensions between the u. S. And china, not to mention south koreas own issues with japan. A surprising Unemployment Rate for south korea. A 3. 1 rate. Lets get a quick check of our asian markets. Soph. Sophie kospi futures argentina at gains. Our hinting at gains. Are hinting at gains. President moon with relief given his call for Jobs Creation may be taken up by korean companies. We have other catalysts of note including china opening up the doors to more foreign capital inflows. We have a Cabinet Reshuffle due in japan. Nikkei futures marginally higher. The head of the ecb and fed how globalill shape policy may move forward with fiscal stimulus also in the cards potentially. Checking in on some other assets of note, i want to highlight the euroyen. Mizuho is calling for a bottom. Using options are seen to be limited. Checking in on gold, helping a fourday drop. Below that for the first time in more than a month. We have kiwi yields gaining ground up by 5 basis points. Paul. Paul thanks very much for that. Get you some breaking news on the bloomberg terminal now. Hit with a veryhit with sweeping demand for information from state attorneys general who are investigating bloomberg. Not bloomberg, google. We are bloomberg. Anyway, ordering google to turn over a wide range of information about its ad business. The states want information about googles past acquisitions of Advertising TechnologyCompanies Including doubleclick and ad mob. Practices,tion pricing models, and the functions of the ad market. So a very wide range of demands from state attorneys general there, that are currently investigating google. People keep you across that story we will keep you across that story. First word news with jessica summers. Jessica. Jessica china is opening the door to imports from argentina as it pivots away from u. S. Farm products in the ongoing trade war. Beijing has traditionally preferred to import raw soybeans and process them on the mainland, but there may be hope. Chicago soy futures rose on a report that trade teams are working on a deal that would see beijing buy more American Farm products. China has removed another obstacle for Foreign Investment into capital markets. Decades after access was first allowed. Global funds no longer need buycial approval to mainland stocks and bonds, lifting a 300 billion cap on overseas assets purchases. It is the latest push to increase use of the yuan in international transactions. A crossss party party group of lawmakers say a possible solution to the brexit deadlock could be a hard border between britain and the e. U. In the irish sea. It would leave Northern Ireland effectively the only part of the with ll aligned continuedy says the uncertainty is undermining sterling. Sterling volatility, as you would know, it is at emerging market levels. It matters tremendously if the brexit for the brexit outcome. Jessica 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 jessica summers. This is bloomberg. Shery returning to the u. S. Market action, the s p 500 ended the session little changed, making it look like not much happened, but the big rotation continues with investors moving away from the high momentum stocks for a second day. Su keenan joins us with more. We saw another day of massive moves. This started a couple weeks ago. Yesterdays move was so large that it forced another derisk in the market. Snapshot. You will notice Energy Stocks were among the big gainers in the s p 500 that was part of the big move. Also, russell 2000, which is where a lot of the smaller value ones are. It continues to outperform. That has been another trend. Lets go right into the bloomberg because we are taking versusat the stocks momentum trade, suffering the worst day since 2009. We are talking about the long short momentum strategy. You will notice this is the big move monday and it forced another 4 move in the strategy in this latest session. Lets go right to the big movers someake a look at roku, up 400 yeartodate as we started the week. It was down heavily yesterday some 400 yeartodate as we started the week. It was down heavily yesterday and in the latest session. Fannie mae down also for different reasons. A lot of conflicting things from washington. It was up 40 yesterday and 12 today. Starbucks down as the fcc asked questions about its revenue recognition policy, so the fcc, very busy of late, and that put pressure on them. Have seen oil futures plunge after President Trump fired his top security adviser. What is going on there . Su big move. You can see the moves in the middle of the latest session. We have a shift in policy, a lot of the strategists are saying, because bolton was very much a hawk in terms of the venezuela waivers, in terms of sanctions on iran. Look at the big picture of oil. It is causing many professional investors to shift their outlook. In addition, you have an opec member saying it will take falling 40 to 45 to spur more cuts than we already have. The bolton firing has brought a lot of comfort to those who are concerned about supply issues because of shortages in iran and venezuela. Paul su, thanks very much for that. Lets get some more on that john bolton. R President Trump saying he was fired after disagreeing strongly with many of his suggestions. Bolton contradicted trump on twitter minutes after the announcement, saying that he had offered to resign. Lets cross to washington now and our congress editor, joe sobczyk. Regardless of whether he jumped or was pushed, what was john bolton what does his exit mean . Had a fewwo men things in common. Skepticism of globalism and multilateral action. There are some significant differences. Bolton was very much a hardliner, one of the leading hawks in washington. He believed in a robust u. S. Foreign policy backed up by the u. S. Military. Trump, for all his tough talk, came into office promising to disengage the u. S. From various military entanglements overseas, including iraq and afghanistan. And he has been he was going to be pulling back from syria as well. This was one of the major differences with bolton, who had been advising against things like the negotiations with the anything to doh continuing the north korea negotiations. What it means for trump is it may be that he moves ahead more with his outreaches to some of those adversaries including north korea and russia. And even iran. Trump talked about being willing to meet with irans president , rouhani, to talk about some sort of new nuclear deal that would halt the development or forestall any development of Nuclear Weapons by iran. Diplomats say boltons departure suggests that a potential meeting between trump and rouhani later this month at the u. N. General Assembly Might be more likely as a result. So the president , who is fond of the dramatic gesture, and has he puts great faith in his personal negotiating skills, might be going out further with some of the u. S. Foreign policy, taking on his shoulders. Shery what was interesting is that h the announcement of his departure came minutes before a press conference by pompeo and mnuchin. Secretary pompeo was grilled about his relationship with mr. Bolton. What will it mean for the secretary of state Going Forward . Joe interestingly, about one trumps tweets, bolton had been scheduled to be part of that press conference. Him. Is a boon for he had clashed repeatedly with bolton over policies, procedures at the white house. Now, he stands as the main Foreign Policy advisor to President Trump, and he probably will get at least some opportunity to influence who trump takes to fill the spot, as though he could be maneuvered, an ally who is largely in agreement with him, who performs an essential role in the white house, coordinating stakeholders on Foreign Policy, including state department, defense apartment, et cetera this would help pompeo online the Foreign Policy behind him, and align the Foreign Policy behind him. Shery joe sobczyk, thank you so much for that update. Congress editor in washington, d. C. Thank you. Still ahead, apples latest gadgets are here. We will bring you the latest later in the show. Mccarthynext, mike joins us with his market outlook. He is sticking to what he calls the least worst option in stocks. This is bloomberg. Paul daybreak asia this is daybreak asia. This is daybreak asia. I am paul allen in sydney. Shery i am shery ahn in new york. Sophie with ecb mckee event risk for the week, investors are trying to gauge how dovish the central bank may be. A vigorous stimulus package. Cibc expects a 10 basis point cut with little or no qe and it is going bullish on the dollar versus the euro in that scenario. Mizuho reckons the ecbs easing options are looking seeing the common currency rebounding to 1. 15 against the greenback by yearend. Exit uncertainty. Brexit uncertainty. Paul lets head over to the cmc offices in sydney. Michael mccarthy is standing by to join us. I just want to start with your views on the trade war. You say the trade war is a gift that keeps on giving for President Trump. Surely, if he resolved it, the measure of success in the equity markets would be even higher than they are now, wouldnt they . Michael it has certainly become a muddier picture for him. As president bush ways a war on drugs, thewar on political advantages from that could be paralleled with the political advantages for President Trump out of an ongoing trade dispute. It gives him an opportunity to stand as a tough guy and defender of american ac interests. Those politics could keep it driving for many years to come. There is a lot of talk amongst traders about the level of the s p 500 at which those political advantages start to evaporate. We are nowhere near that point for the u. S. Shale market at this stage. Paul you still do like u. S. Equities markets, dont you . You call in the least worst option. The best house on a bad street. How much further do you think equities have to run . Michael i think that is the case for equities at the moment. The flood of money is still supporting markets. That investors are being forced into markets. The selloff we have seen in bonds is around potential ecb stimulus which has backed away and it makes it clear that this is the least worst option, the equity markets. We are seeing major markets breaking from previous trading levels to look like they are going to threaten the heights we saw it this year. That is the next stop for equities. How they perform at that point, once they have regained of those highs we saw earlier in the year, will be a key to the rest of the years performance. Shery in the meantime, we are seeing this massive rotation in the stock markets. This gtv chart on the bloomberg are allhow small caps of a sudden outperforming. Are we seeing a shift in this new trend . Michael i think so. Momentum trade was the only place to be from 2013 to 2016, but the three major Global Equity market shops we have seen since then show how momentum trade can turn around on its own peer once it falters, those bailing out increase the negative momentum. It means momentum is no longer the way to play and those Growth Stocks will suffer because of that. Reality is the support we are seeing for small caps and value stocks is a key issue for investors over the next 12 months. It is hard to buy stocks that are trading at alltime highs and much easier to buy those stocks that have not yet run with the market and that favors Value Investing stocks and smaller cap stocks. Shery let me ask you about sectors you like. Just in the past hour of bloomberg, we have obtained documents showing we are investigating google in the first place and now ordering it to turn over a wide range of information about its advertising business. As we head towards the 2020 elections, are we going to see more regulation talk around these big tech giants, not only in the u. S. , but around the world . And how do you feel about the tech sector then . Michael there are two key france for that tech sector. Key things for that tech sector. The other is the taxation of revenues. Recently, in the asiapacific region, but local governments are becoming more involved with the participation of their citizens in the global networks, and of course, that has ramifications for the bottom line. The multiples we have seen in those spaces is that they are not generating revenues. There will be targets for regulators and we are likely to see over the coming couple of years further tightening in hits and hits on the bottom line. Chief marketkets strategist, michael mccarthy. Thanks for joining us. So you can get a roundup of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers can go to dayb on their terminals and its also available on mobile in the bloomberg anywhere app. You can customize your settings so you only get the news on industries and assets you care about. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. Paul i am paul in sydney. It was a big day for apple with the launch of new devices at its annual product announcement. A new apple watch, but lowcost ipad, and a bunch of announcements tied to the new services. Apple tv plus and apple arcade. As always, most people wanted to see the new iphone. This is the iphone 11 pro and these are the most powerful and advanced iphones we have ever built in a stunning, new design. Paul lets head to San Francisco and bloomberg technologys mark gurman. What did we learn about the new phones . Cook calls it a stunning new design, but that is not true. These phones look similar to last years models. They change the looks of the cameras on the back. They added a third camera to the a pro and promax, which is mouthful of a name, but functionality wise, very advanced. The thing is, however, i believe, new designs, new major capabilities like 5g, in screen fingers print scanners. That is what sells phones. The question is, how many of these new features will be by theto spur purchases average consumer . Shery what about the price . The iphone 11 is supposed to be cheaper. Mark they are doing that because they made a major miscalculation last year with be 750 price point for the iphone x are. Xr. They will be slapped with tariffs given the u. S. China trade situation, so i think they are banking on volume to offset that and any impact from that. Waul and you watch a ne watch unveiled as well. Any new developments or is it just incremental . Mark this is the smallest update to the apple watch since the product was announced at the end of 2014. The only real new feature is and always on display. It will be on in a lowpower mode. Other than that, they have done nothing except one key and is distribution. A little bit of history here. When you went to buy an apple watch previous to this model, you would have to buy them in prearranged combinations of cases, screen sizes, band colors, and materials. Now, they have the apple watch studio where you are able to build your own combination and buy it and i think that is significant. The big change is not new futures but the way they are selling these watches. Shery thank you so much for the latest on apple. Joining us from San Francisco. Lets get a quick check of the latest business flash headlines. Bangwo on bank an insurance agreeing to sell its portfolio for almost 6 billion. They bought a Strategic Hotel forresort from blackstone 5. 5 billion in 2016, but the property rush ended when beijing for 18control of anbang years. Paul saudi aramco is said to have picked banks for top roles on its planned ipo. Intense lobbying by some of the worlds top fuel makers. The giant is considering initially selling two separate one cent states. Shery Societe Generale is studying ways to save more than 650 million in annual costs tied to its operations at its parent headquarters as part of an effort to win back Investor Confidence and improve returns. The ceo is under pressure to go beyond existing cost cuts. They are planning to eliminate 1600 jobs in its Investment Banking unit. Natixis has hired a new batch of senior traders and managers in hong kong as it tries to recover from losing hundreds of millions of dollars of complex asian derivatives. Natixis had trouble in december after trades linked to volatile korean Financial Products went of 280iggering losses 280 6 million. James gorman is surprised with where rates are now. We will have more, next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your b