| Welcome to your morning markets update, delivered every weekday before the European open. Good morning. U.S. payrolls are likely to dominate the day, the future of the U.K. is moving to the center of the Brexit debate and the Deutsche Bank saga rolls on. Here's what's moving markets. Payrolls Day It's going to be a live U.S. payrolls report on Friday as traders look for pointers as to whether the numbers will reinforce the dovish shift at the Federal Reserve. The expectation is that job growth will have recovered from June, but not at the same kind of pace seen a year before. Note too that the last time the report was published on the day after the Independence Day holiday Treasury yields jumped significantly. Future of the Union The future of the union of the United Kingdom is becoming a key battleground for the candidates aiming to be the next prime minister, with warnings from the incumbent Theresa May not to outline any policies that risk a breakup. Boris Johnson said delivering Brexit would be key to this and both he and Jeremy Hunt have refused to rule out leaving without a deal. Whoever wins, there will be some high-caliber rebels to face down. Hunt for Yield For anyone who has not been watching developments in global bond markets, start doing so with immediate effect. German bund yields sank below the European Central Bank's deposit rate for the first time on Thursday, a development likely to drive investors yet further into the realm of riskier debt from the like of Italy and Greece, plus plenty of emerging market assets. And given European Central Bank policymakers think the slowdown is no longer temporary, bonds are likely to continue in the same vein. Deutsche Saga It's been a week of intense speculation about what steps Deutsche Bank AG is going to adopt over the weekend to restructure the business and attempt to restore it to health. The cuts the bank intends to make in its U.S. business may go deeper than previously anticipated and there are questions about how much the changes will cost as Deutsche considers offloading unwanted assets and reshuffling management teams. Watch out for more before this pivotal weekend for the bank. Coming Up... Asian stocks were little changed in thin trading in Asia after the U.S. holiday and ahead of the payrolls report. European stock futures are also pointing to a muted start to Friday. Gold is headed for its longest stretch of gains for eight years and oil is set for a weekly decline as worries about the economy outweigh OPEC supply cuts. German factory orders data will be closely scrutinized given the state of play in Europe's economy, as will house prices in the U.K. What We've Been Reading This is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen's interested in this morning The outlook for emerging markets is looking just a little brighter through the rest of the year, but it's largely because expectations of further stimulus from global central banks is lowering the attraction of investments in their developed counterparts. That's the main finding of Bloomberg's quarterly survey of 42 global fund managers, strategists and traders on their outlook for developing markets. Currencies, bonds and stocks will advance amid a hunt for yield thanks to easier monetary policy, the poll showed. Emerging markets are expected to outperform their developed counterparts. That would mark a turnaround from the first half, when EM assets mostly lagged. The MSCI Emerging Markets Index is up 10% year-to-date, versus the near 18% rise in the MSCI World Index -- which just tracks DM stocks. The Bloomberg Barclays EM Local Currency Government Bond Index has risen 6%, basically in line with the global bond equivalent. If the fund managers are to be believed, investors should take a look at top picks Chinese and Brazilian stocks, and Indonesian and Russian bonds. But only the brave should look at Turkey and Argentina, the least favored securities in the survey.  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. | 
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