Will this, mys speed divorce talks . Waiting for draghi. President speaks ahead of the jackson hole summit. Will he give any substantial clues about the Central Banks next steps . Matt we are less than half and a lower half an hour away from the open. Futures are trading, a bit of a mixed bag in my you see dax futures a little bit, ftse and cap futures down a little bit but not a lot of direction so gains the games we we saw yesterday. Some slight, some bigger, the dax closed up 1. 3 and the cac and ftse were both up almost 14 ,. 8 or. 9 of 1 . Bunds, not a lot of movement, yielding 0. 4 even. See a lot of direction from investors. A lot of investors are waiting to see what mario draghi has to say later on. Digesting markets are what donald trump said and the distance you have to travel between rhetoric and delivery and action. That distance is substantial. Gmm is the personification of that. Aussie stock dipped lower into the close. A rally of 1 predicated on the possibility of tax cuts. The market is dealing with the possibility of nafta, wanting to pull out of nafta as the possibility and the possibility of a Government Shutdown if he does not get 1. 6 million to billion dollars to build his wall with mexico. Not much of what trump has said and that is not a market consensus point. You are seeing the aussie dollar is the mexican a so biggest personification of the markets risk. The peso has dropped and city said it could trade by [inaudible] to the dollar. That is the gmm, the peso and other commodities and down again reacting. Juliette saly has a broader complexion of what is going on in the world with the first word news. Juliette u. S. President donald trump has threatened to bring the government to the brink of a shutdown if needed. He said he might terminate the north American Free trade agreement. Speaking at a rally in arizona he called them a credit lawmakers who objected to his plans to construct all while obstructionist density was time to crack down on illegal immigration. We have to close down our government, we are building that wall. Let me be very clear, to democrats in congress who oppose a border wall and stand in the way of Border Security. You are putting all of americas safety at risk. Angela merkel has rejected the caricature of her party is being obsessed with the debt at a rally. She said her budget record is an active generational justice. In an exclusive interview, her chief of staff said germany has a vital interest in preserving dieselndal that hit the automotive industry. I am optimistic that we will overcome this and the german car Manufacturing Industry will come out of this situation stronger and safer as it has been before. The uks Prime Minister has conceded that eu law will influence written after brexit. Seven months on, from theresa may declaring the country would take back control of their laws and bring back jurisdiction to the european art of justice the government said it is looking to escape the bodys jurisdiction. Trading on the Hong Kong Stock Exchange was suspended today as authorities announced the highest level storm warning for the first time in five years, as a severe typhoon lashes the Financial Hub with heavy wind and rain create hundreds of flights were canceled and trains were canceled and all schools closed for the day. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is the. Matt mario draghi is due to speak and there is a error of mystery about the content of the speech. He is expected to begin tapering the banks Quantitative Easing Program but these are being made complicated highest to euro and a fairly common in speech he had later on in the week. Lets bring in paul gordon. And mark cudmore, bloombergs mliv strategist who is live in start singapore. Say anything market moving or will he save that for jackson hole . Paul he may save it for even later than that. September 7 for that policy meeting. Academic. O be quite the topic is the interaction of research and Monetary Policy decisionmaking. He has scope to Say Something that moves markets. That should be fairly dry. If i was to bet my money on any signal not necessarily a policy so signal or some kind of logic, that would be a jackson hole. Manus lets get you from a market context. Insatiableis appetite along the euro, draghis challenges to use his coated words whether it is important or very important or the threat from the rise of the euro. Will he hold off until we get to jackson hole for using the codewords . Mark he may old off on jackson hole. I think the risks are from today or jackson hole that anything surprises devilishly rather than hawkish lee. I do not think you will make any policy commitment. The more likely thing for him to do at jackson hole is to reference the currency in some way that is perceived more of a aggressive topdown. The risks going into jackson hole are for a negative surprise and the eurodollar but the base case is nothing major to happen either way. Mariowhat options does draghi have, does the ecb have in order to turn around this low inflation picture and is one of wem i turn around, could hear there will not be any tapering and they are going to stick to qe or rented it out . Ratchet it up . Below goaln remains and it has been for years and it is predicted to get back to its goal for another two years. The likelihood that as the ecb pushes on, the question is whether it pushes on with its bond purchases in conjunction with low Interest Rates or find other ways to maintain stimulus while peering back to a because they cannot keep buying bonds forever. It will run out at some point. Manus i am looking at the last aport i had the week ending couple of weeks ago. The market is very long, it has been the longest it has been in nearly three years. Betting man or woman would say you take some of this risk off and in terms of that kind of extended credit trade. If the dollar is the most crowded trade surely the euro position must be a heck of a long one in the market. Mark there is a little bit of expectations the eurodollar might come back ahead of jackson hole but what you have seen is in the news in the u. S. Has hit the dollar separately. People are a bit preemptive and probably regret that decision. You will see the eurodollar, under pressure ahead of jackson hole symposium starting on friday and there is a slim chance for an actual shock to the downside. Even more importantly, if there is a shock, that shows where there is the real impact. Even if there is a hawkish surprise which are we are not expecting the dollar can go further because the markets are positioned for that. Much, marks for a cudmore out of singapore and paul gordon, our ecb editor out of frankfurt. You can follow the mliv blog. Ype mliv we will bring you Mario Draghis speech live from germany where meetingsses the sixth on Economic Sciences in just about half an hours time. Get ready for a shutdown. President trump threatens to bring the u. S. Government to a halt if needed to pressure the Republican Congress into funding his border wall. Details next. This is bloomberg. Manus 7 43 a. M. In london. Juliette saly is standing by in singapore. Yuki companies are getting more worried about the economy and feeling less confident and spending money on hiring or investing. Economic conditions has fallen to the lowest this year. After the greatest proportion of responders said they are looking to hire but confidence has diminished. On pouring cold water prospects. The chinese suv maker said there are no talks between the two companies and it may not pursue a takeover of the Italian American carmakers jeep division. Commenting a day after expressing interest, great wall said they are begun certainty. Big on certainty. And according to the wall street journal, citing people familiar, the company has not yet made a final decision on its successor but Michael Worth is seeing is seen as a likely candidate. Has lost its top andn resources executive firefighter its recruiting team. According to two people familiar, he was his resignation was announced internally august 10, the day they started to halt the hiring of celery salaried employees. It is supposed to help the troubled nearly Public Company expand. That is your Bloomberg Business flash. Checking in on markets, we would normally be seeing how hong kong was trading but hong kong trade suspended today due to the thai fund bearing down on the city. The nikkei closed higher by around. 3 of what percent, review sing reversing its earlier for chance. Australias market closing. 2 of 1 . The kiwi under pressure after the new Zealand Government cut its gdp forecast. Toshiba was a front runner in the tokyo session, daewoo saying it should watch security. They may be close to clinching a deal on their fortune. Health scope falling the most on record after its fullyear profit fell by 39 and it warned it could see a similar outcome this Financial Year coming and the stock here, singapores largest taxi operator is in talks with uber to form a possible partnership. Apple is gearing up to release the new iphone 8 and there has been some speculation that we had some leaks coming through but have a look, we have seen analysts increase their price targets for apple but this chart showing samsung still very much ahead in terms of analyst ratings even as it market value exit a key point. The iphone will get the sales it wants. Matt we will be following that story closely. Juliette saly for us in hong kong. At a rally in phoenix, arizona, resident donald trump threatened a u. S. Government Shutdown Campaign promise of building the wall. Believe me, we have to close down our government, we are noting that wall. To me be very clear democrats in congress who oppose a border wall and stand in the way of Border Security. All of americas safety at risk. Matt he asked for 1. 6 billion to begin construction. Congress is under pressure to pass a spending bill to keep the after september 30. He addressed nafta at the rally saying he will terminate the trade agreement at some point if he wants. Joining us now is kathleen hunter, Bloomberg Politics editor. Lets talk about a Government Shutdown. Republicans control both houses of congress. The wall andnd continue to fund the government without problems . Kathleen if only it were that simple. There is a couple of issues with that. The idea that this could go smoothly. One of the issues is that when it comes to spending legislation, even though as you say republicans control both chambers of congress and the white house, in the senate they will need democratic support, it will take 60 votes to get spending legislation through the senate. They will need eight democrats to come along and vote with them. Republicans have a slim majority in the senate. Democrats have been pretty clear that they do not want in they will not accept any border wall funding. That is going to be a hard sell and it is hard for me to think through a way in which they are going to thread that needle without forcing a shutdown or without trump backing down. Manus it looks as it will go to the wire. An interesting difference here in that speech, he talks about Border Security and building the wall. He is giving himself and out. Is my interpretation of it. There is Border Security. The consensus position in the marketplace is building the wall is not something that seems to be a consensus position. There is an interesting point. Party, therand old men and women who do politics on a daily basis in the u. S. Who are up for reelection next year. And they have their jobs at risk, not President Trump. That is right. That is an important dynamic to remember. Midterm elections are coming up more swiftly than we realize. Historically it is true that the president s party loses seats in the first election after he is elected. Manus i do not think he would care but they might. Kathleen trump should care because the last republicans less republicans there are in congress the harder to get things accomplished and it is already quite hard. He should care but whether he does or not is an open question. The comments he has made an setting up the potential for turning up the ante and increasing chances of a Government Shutdown, that would be congressional could be potentially devastating. His supporters like to think of him as a strong negotiator. We have not seen any results of that reputation yet. I assume it is just negotiating tactic when he says i think we will be terminating nafta at some point. Expect the president to cancel nafta . Kathleen i think President Trump focuses on the bully part of the early pulpit, we have an expression, the believe pulpit which is his ability to use his of rhetorical position, to affect change and get people to get things done and for trump he sees that as carrying a big stick and saying that, putting all these threats out there saying i will not sign a bill it does not have my border wall funding. If i do notaying is get what i like i will pull it out altogether. He likes to throw these extremist scenarios. We saw that with north korea. He likes to issue these broad warnings when it comes to policy and that is his negotiating tactics we have seen. Tillerson, please to see that the regime and pound yang has in pyongyang has dialed things down. Thank you. A few minutes away from the start of the trading day. What is going to move the markets . Thate pp is in focus, after they cut the fullyear Revenue Growth. But why is it, because the stocks that are run by activist investors spending less . That is a thought. This is bloomberg. Manus minutes to go before the start of your trading day. Wpp will be in the focus. The stock is called anywhere between 5 and 7 i am seeing in some calls. The Revenue Growth, their forecast was cut and that is slightly negative. The results confirm weaker transit seen across the advertising industry. They have cut their Revenue Growth forecast, clients are curbing their spending, and it is the clients who are injured fastmoving consumer goods and Package Goods sectors. I wonder who runs the budget and those in those companies . Great story. You have all singers activism. Futures although we are not seeing a lot of direction from the futures trade, for the most part, are pointing down this morning so we could see a negative open especially in london and in france. Less likely here in berlin. Possibly a down open. This is bloomberg. Manus just under a minute until the cash markets open. Futures finally caught up. In paris, downop by 0. 1 . The s p futures put on 0. 1 . This morning, the market is assimilating its thoughts on the probability of the u. S. Pulling out of nafta. The market is beginning to understand whether building a wall between the United States and mexico israel. Will there be a shutdown . Matt, youve got a chart. I will give you the quick line on sberbank. Weve seen headlines come in across the bloomberg terminal. Matt . Matt 8. 3 billion rubles. I have a chart that you want to check out. The reason im showing you this is, we are not seeing a lot of direction in the equity markets. We are waiting for mario draghi. This is the ecbs balance sheet. G btv 2029. It breaks down all of the assets the ecb is holding. This is a chart you want to make note of. This picture could change. Were hoping to get some detail from mario draghi on the possible change. For is what were waiting to see some direction on the markets. Manus we are indeed. European equity markets opening lower. Services pmi from france. For services pmi, 55. 5. The survey was 55. 8. You are seeing a lower suite on the services. Manufacturing 55. 8, that is a beat on the survey 55. 5. You are seeing this suite of data come through ahead of jackson hole. We are waiting for mr. Draghi to speak. Let me jump into the u. K. Market. Nejra is standing by. We are waiting for wbt to actually open. Lets get into the detail of the markets. Nejra im starting with the gilt market open. I wasnt expecting the yield to go anywhere too fast given what is happening with the 10year treasury yield and bund yield. The gilt yield pretty much unchanged at the open. Pretty much where we closed yesterday. Looking at the equity market as well, the risk on we were seeing yesterday, a little softer today. We are off by just 0. 1 on the overall benchmark stoxx 600. Slight negative bias. You are seeing more Industry Groups a little bit lower. Consumer staples and energy underperforming. Youve got a weaker crude price in the session after that data showing gasoline stockpiles rising. We are waiting for the eia data. We are seeing metals a bit softer. We were seeing material stocks gaining. Utilities outperforming on the upside. Not a huge amount of movement on the stoxx 600 at the open. I showed yesterday a chart comparing the euro with the euro stoxx 50 and that inverse correlation. This is showing european small caps outperforming their u. S. Counterparts. Youve got the ratio between the stoxx 600 small 200 index versus the stoxx 600, and the russell 2000 index versus the s p 500 in blue. Some say this could be down to currency effects because the small caps in the u. S. Have seen a headwind from a weaker dollar. The stronger euro hasnt been too much of a headwind for the small caps in europe because they are domestically focused. Matt im just taking a look at the moves here. You can find this on your bloomberg by typing in any index and then mov. Ive got the stoxx 600. Theres not a lot of movement in the index. Were looking at the individual. Overs. You can see that b. A. T is taking the most off as far as points are concerned. Also, you see some biotech and drugmakers that are weighing on the index. K down as well as diageo. Take a look at the gainers, what is holding the stoxx