5 things to start your day

[Bloomberg]( Musk has a plan to take Tesla private, Erdogan may need to make a u-turn, and Ohio election is a warning for the GOP. $82 billion tweet Tesla Inc.’s Elon Musk dropped a bombshell on [Twitter]( yesterday when he said that he was thinking of [taking the company private]( at $420 a share. Musk elaborated on his motivation in follow-up tweets and an email to employees, saying he wanted to escape the [pressure from stock investors]( for short-term gains. But he failed to provide details on the “secured” funding for what could be the largest-ever leveraged [buyout](. Tesla stock rose 11 percent to $379.57 by yesterday’s close, leaving a considerable discount to the proposed $420 mark as markets maintain a level of skepticism on whether Musk can pull this off. Market reality v Erdogan The Turkish lira is holding [close to 5.300]( to the dollar this morning as traders await President Recep Tayyip Erdogan’s next move. The problem he faces is that any solution that will appease markets involves [backing down]( on current policy, something the president is not famous for. The central bank is coming under more pressure to raise rates, with Investec Asset Management calling for a [500 basis point hike]( to 23 percent. While there is a chance to de-escalate the diplomatic crisis with the U.S. as a Turkish delegation heads to Washington, markets are demanding more action to stabilize the lira. GOP warning The special election in Ohio has seen the incumbent Republican candidate reduced to a [wafer-thin majority]( by his Democrat opponent in what has traditionally been a safe GOP seat. The November vote is also becoming a greater concern for GOP strategists. Some 68 Republican-held House districts, with voting patterns traditionally more favorable to the Democrats compared with Ohio, are up for grabs. Democrats need a 23-seat net gain to take control of the House. Another worry is the threat from election hacking, with cybersecurity experts warning that the administration isn’t [adequately defending]( the vote from outside meddling. Markets quiet Overnight, the MSCI Asia Pacific Index advanced 0.3 percent while Japan’s Topix Index closed 0.1 percent lower ahead of high-level economic talks between U.S. and Japanese officials. In Europe, the Stoxx 600 Index was 0.1 percent lower at 5:50 a.m Eastern Time in a relatively quiet trading session. S&P 500 futures pointed to a [small gain]( at the open, the 10-year Treasury yield was at 2.969 percent and gold was slightly higher. China duties The U.S. said in a statement that it will begin imposing 25 percent tariffs on an [additional $16 billion]( of Chinese goods from Aug. 23. The list of goods hit includes motorcycles to steam turbines and railway cars. There was little sign of the trade war taking a toll yet on the country’s trade, with data released overnight showing exports [rose faster than expected]( in July, leaving a surplus for the month at $28 billion. The country’s official factory gauge has [been cooling]( against the backdrop of a weakening yuan, adding to the view that the Chinese economy may be set for a slowdown. What we've been reading This is what's caught our eye over the last 24 hours. - Gates says he lied, stole and cheated, but [trust him anyway](. - EU [banker exodus]( hits London property market. - Is Xi’s bold [China power grab]( about to backfire? - Liquidity crunch is [the new bubble]( gripping credit investors. - The top six contenders to fix the [world’s oldest phone company](. - [Bitcoin speculators](, not drug dealers, dominate crypto use now. - Using big data to [micro-mange cities](. And finally, here’s what Lorcan's interested in this morning There's a lot to be said for trading in markets with deep liquidity. In theory, prices move on news, as market depth reduces the risk speculative trades will whipsaw assets. But building a large and investable benchmark from scratch is no easy task. Just ask China. March saw the launch of [oil futures in Shanghai](, with contracts priced in yuan. The world's biggest crude importer is seeking to undercut the two global prices for oil denominated in dollars: West Texas Intermediate for the U.S. and Brent for everyone else. It's an uphill battle for many reasons but market credibility is one key challenge. Both traditional oil benchmarks, for example, have been trading in a tight range recently, while the Shanghai contract saw a 5 percent jump on Tuesday, followed by a [2.6 percent retreat]( in trading today. Far from boasting the status as the world's third oil benchmark, the market appears to be ruled by speculation rather than fundamental forces. Only time will tell whether yuan futures can mature into a truly deep and liquid contract, but early signs are not encouraging. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. [Learn more.]( [FOLLOW US [Facebook Share]]([Twitter Share]( [SEND TO A FRIEND [Share with a friend]]( You received this message because you are subscribed to Bloomberg's Five Things newsletter. [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022 If you believe this has been sent to you in error, please safely [unsubscribe](.