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Welcome to your morning markets update, delivered every weekday before the European open. Good morning. The trade war is raging, markets are reeling and Uber is getting close to white knuckling. Here's what's moving markets.  "Hurt Very Badly" The trade war is officially back under way. China retaliated to the increased U.S. tariffs on Monday and now the U.S. is preparing new levies on a further $300 billion of products. President Donald Trump warned China it will be "hurt very badly" should it follow through with its threat for tit-for-tat tariffs, but said he will meet with Chinese President Xi  Jinping. Markets reeled, although on relatively low volumes, and traders are left assessing which sectors and assets are most exposed. Add to the pot that Europe is preparing to hit back if the U.S. puts auto tariffs into force this month. Expect volatile days ahead. Impact Everywhere The stock selloff moderated in Asia on Tuesday, but the impact of the tariff battle reaches far and wide. Oil slipped on Monday but has made up some ground this morning. Cotton is getting killed. The weakness of China's yuan against the euro is a headwind for exporters and JPMorgan thinks a previously bullish signal of investors ramping up stock exposure could now prove a negative. So, where to hide? The yen's safe-haven attractions are gaining a few fans and some suggest looking at all those other Asian nations that are not China. Oh, and Bitcoin is still surging. Cuts Expected The market is now convinced a quarter-point rate cut is coming from the Federal Reserve this year, driven by concern that the tariffs will dent the economy. Fed Vice Chairman Richard Clarida says the lower rate environment is likely to continue for some time yet, adding further dovish rhetoric to the debate about global monetary policy. Goldman Sachs Group Inc., however, says the trade war will drive inflation higher and raise the chance of a rate hike next year a little. White Knuckle It's tough to imagine the year's biggest IPO going much worse. Uber Technologies Inc. shares plummeted on the second day of trading as investors fled from a speculative bet on the ride-sharing industry. Uber is closing in on "white knuckle" territory and its boss is warning these tough times could be around for a while yet. The year's other unicorn listings joined Uber on the way down, including its ride-sharing rival Lyft Inc. and photo-sharing social network Pinterest Inc. which dropped after a series of cautious views from analysts. Coming up... The monthly oil market report from OPEC is due later, following a day when crude oil managed to avoid most of the trade-related market tensions. Euro area industrial production and the ZEW economic sentiment survey in Germany will provide yet further peeks into how Europe is holding up. We also have results from two big European companies, with German insurer Allianz SE posting better-than-expected profit and U.K. telecoms giant Vodafone Group Plc reporting later. Note also today the addition of further Chinese, Saudi Arabian and Argentinean shares to the MSCI emerging market stock benchmarks. What We've Been Reading This is what's caught our eye over the past 24 hours. A strategist who nailed 2018 in stocks says recession risks is rising. How much money makes you wealthy in America? Bond bubble lessons from the Russian Revolution. The offshore wind industry is going to need bigger boats. The increasing ubiquity of Uber alumni. Germany has its first motorway that charges cars as they drive. Can people live longer but stay younger? And finally, here's what Cormac Mullen's interested in this morning Global oil bulls are facing a key technical test of their faith, just as the re-ignited trade tensions threaten to further sour sentiment toward global growth. Brent crude futures have fallen to just above their 50-day moving average, which itself lies just above its 200-day counterpart. While hedge funds have been raising bearish bets on West Texas Intermediate futures, thanks to swelling U.S. output, investors have been much more positive on the global benchmark. Net long Brent futures are at their highest in seven months, according to the latest ICE Futures Europe data. The trade turmoil comes amid an increase in geopolitical tensions which are also affecting the oil market. Saudi Arabia said two of its tankers were damaged in a sabotage attack on Sunday and the U.S. deployed an aircraft carrier, bomber planes and defense missiles to the Middle East last week amid worsening friction with Iran. Brent bulls will be hoping the technical support levels hold -- with a more than 30 percent gain year-to-date, a break below would increase the risk of a wave of profit-taking. Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. 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 SEND TO A FRIEND You received this message because you are subscribed to Bloomberg's Five Things - Europe newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022