5 things to start your day

[Bloomberg]( Emerging market stocks close to a bear market, cryptos plunge, and it's deadline day for $200 billion in China tariffs. Bear with us The MSCI Emerging Markets Index retreated for a seventh day, bringing its drop since a peak in January to near [20 percent](. Should it reach that level at the New York close, it will place the gauge in a bear market. JPMorgan Chase & Co. and BlackRock Inc. warned that a [herd mentality]( has taken over, as assets from Brazil to Indonesia are caught in the sell-off. European companies with significant exposures to the region are getting hit too. The correlation between the MSCI gauge for European and developing-economy stocks has risen to the [highest in almost seven months](. Crypto plunge Bitcoin has dropped [more than $1,000]( over the last two days to trade at $6,367.30 by 5:45 a.m. Eastern Time, while the Bloomberg Galaxy Crypto Index hit its lowest level since November 2017. The sell-off which began yesterday came after a report said that Goldman Sachs Group Inc. is [pulling back on]( near-term plans to set up a digital currency trading desk. The market may also be suffering from no longer being the hottest investment around, a crown which seems to have [passed to pot stocks](. Sponsored Content by Morgan Stanley Will Big Data Be Increasingly Fundamental to Stock Picking? After a record year of inflows, factor- and quant-based investing is a $1.5 trillion market that is only gaining influence. Should fundamental investors be paying attention? [Read more.](  Tariffs Today is the deadline for public input on tariffs targeting $200 billion of Chinese goods, with President Donald Trump [expected to act](on the measures soon after the deadline passes. With the president on the campaign trail, hitting China with more tariffs may appeal to his base ahead of an election that could see Republicans [lose control of the House](. Elsewhere on trade, Trump talked up the chances of [reaching an agreement with Canada]( on a new Nafta, saying there may be progress in a few days. Markets mixed Overnight, the MSCI Asia Pacific Index fell 0.6 percent while Japan’s Topix index closed 0.7 percent lower as a [strong earthquake]( added to economic risks already heightened by this week’s typhoon and the threat of a global trade war. In Europe, the Stoxx 600 Index was 0.1 percent higher at 5:45 a.m., as the gauge bounced back from a weak start to the session in mixed trading. S&P 500 futures pointed to a [slightly higher open](, the 10-year Treasury yield was at 2.895 percent and gold rose above $1,200 an ounce. Coming up… It’s a busy day on the U.S. economic calendar ahead of tomorrow’s payrolls numbers. At 8:15 a.m., we get ADP’s August employment change, with weekly jobless claims due at 8:30 a.m. At 9:45 a.m., Markit publishes services and composite PMI numbers, with the ISM non-manufacturing index at 10:00 a.m. July factory and durable goods orders are also out at 10:00. The EIA U.S. crude inventory report comes at 11:00 a.m. What we've been reading This is what's caught our eye over the last 24 hours. - Trump tells New York Times to [unmask op-ed writer]( on ‘national security’ grounds. - Best IPO of 2018 is a two-month old [pot purveyor](. - Meet the ‘edgy’ man who could replace [Mario Draghi](. - China’s $29 trillion [ball of money]( rolls to a long-ignored haven. - Tesla’s $1.8 billion of junk bonds hit [lowest since 2017 sale](. - India’s Supreme Court [legalizes gay sex]( in landmark ruling. - Monster iceberg [on the move](. And finally, here’s what Joe's interested in this morning These are weird, uncertain times in markets and politics. The good news is that tomorrow is the monthly jobs report and for that we can all be grateful. Economists are looking for 198,000 new additions in August and for the unemployment rate to fall to 3.8 percent. In the meantime, the evidence is becoming overwhelming that the U.S. consumer is shifting into a higher gear of optimism and spending. Yesterday we got the latest Johnson Redbook Index of weekly same-store sales, and they're soaring to their highest level since the crisis. The day before we got killer sales numbers out of Ford for the [F-150 and the Mustang](. Ford's U.S. sales chief Mark LaNeve [said on the conference call]( that the right economic conditions are in place to remain optimistic. Meanwhile, [consumer confidence is absolutely soaring](. There's some fear out there that it's all unsustainable. Or that this is just a "sugar high" caused by tax cuts and that as soon as the one-time increase in take-home pay normalizes out things will slump again. But there's a certain zero-sumness to this type of thinking, as though there's some natural finite amount of growth available to us during each cycle. And that if we take it now then we must lose it later. But it's possible that with the high degree of labor-market confidence, and the (still) fairly elevated savings rate that a shift-up in consumption could give this expansion more room to run. Tomorrow's jobs report will tell us if everything remains on track. 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](.