this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i am guy johnson. this is the european close on "bloomberg markets." let's check those markets now. here is courtney donahoe. courtney: president trump suffered in other step back in his efforts to guard his financial information. if federal appeals court refused to block a subpoena for his tax records. the ruling moves the trunk tax case one step closer to a showdown in the supreme court. the u.s. and china are signaling there is more progress towards an interim trade deal. that could lead to a meeting between president trump and president xi shipping. -- xi jinping. wilbur ross said the u.s. was very far along with these one of a trade agreement. saudi arabia is offering a number of sentiments to make of aramco is a success. it will reward investors for holding onto shares for longer. shares will be listed on the riyadh exchange. fallingf mcdonald's are today. itsfast food chain fired ceo for having a consensual relationship with an employee. the relationship viola

vonnie? vonnie: it is sort of related. i have a chart of european stocks. the broad index is the stoxx 600 in the white line. the blue line is nestle, stock which contributes most to the overall decline. that is different to the united states where you see apple adding 9%. microsoft 7%, and so on. if they take a downturn, that has major impact on the indices they are in. not so much for europe. if there was to be a turning europe, investors might have a softer landing. you can see that chart on the bloomberg at gtv . guy: like the charts. i will give it to vonnie quinn today. nestle has been an amazing story all year in terms of the valuation and the incredibly elevated valuation. will we continue to see that? the bond market moving higher. i do like the short story. vonnie: very good chart, mike. guy: two nice charts. it was a tough one. coming up next, balance of power. david westin will be joining you on bloomberg television and radio. the superintendent for the new york department of financial services will be discussing her investigation into goldm

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i am guy johnson. this is "bloomberg markets." here is abigail doolittle. abigail: we are looking at a mildly risk on feel for equities this friday. the s&p 500 is up about 0.2%. the ftse 100 is up about zero 1.4%. 0.5% despite the ongoing situation there, breaking a two day down street. let's go into the bloomberg and take a look at the major averages. we had this winning streak for the major averages. the s&p 500 is up six weeks in a row. we are on pace for the first down week in seven. it will be interesting to see whether the bulls can turn that small game into something bigger. as for the movers here and in europe, take a look at freeport mackaran. we have the eu helping out some of the steelmakers relative to the world trade organization. a nice rally for the miners. vonnie: thank you for that. let's get to another exclusive interview from the bloomberg new economy tour in beijing. studzinski and why his firm is navigating uncertainty. john: what u.s. investors

vonnie? vonnie: mark, thank you. coming up, data flashes warning signs and we speak with the executive director about tariffs and the trade war. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's talk about trade. a new study shows tariffs threaten nearly 1.5 million u.s. jobs and more than $186 billion in economic activity nationwide. the potential risks are based on the impacts tariffs have had on cargo handled by the port of los angeles. for more now on that study and the wider picture and what it's going to do to the l.a. port which is critical to the u.s. economy, let's bring in the executive director gene seroca who joins us exclusively now from washington. the president is going to be speaking at noon today in new york. at the economic club of new york. he's going to talk about trade. what would you like to hear him say? >> that we've rescinded all tariffs in the transpacific theater with china and we're moving ahead in

vonnie: thank you. somebody who should know about beaten up stocks, with us right now is matthew mclennan. are there anymore beaten up stocks out there that we should know about, that you are getting worked up about? >> energy is not a bad place to start. difficult to predict the price of oil in the short term. if you are a long-term investor, better to be investing on the long end of the cycle. exxon mobil, for example, you can get a dividend as you wait. vonnie: we all know with commodities, prices go down over the long-term, nothing seems to be positive coming out of oil demand. lots of demand out there. the makes you think that likes of exxon, chevron are undervalued? >> oil demand grows over the long-term. obviously, a lot of focus on electric vehicles, but gasoline is only about 30% of demand. the other parts are growing, jet aviation, plastics. there is a broader market for energy. beyond that, if you have an electric car, what are you plugging into at night? the grid. most of that power is comin

vonnie: phenomenal. guy: incredibly complex process that just went through and delivered seamlessly. the next stage as we move on is a significant order of magnitude greater. just in terms of how it would work, you just have seen the booster landing there, just explain what that would look like with a star ship landing. like you said, how many rockets was it? matt: 37 rockets. gipe that has nine rockets in it. we're talking 37 rockets. seems incredibly complex to get that to launch seamlessly and all those various parts to function as one. no malfunctions in any of those engines and then to bring the whole thing back down and land it on a ship in the atlantic ocean. matt: elon is talking about having other things there and putting launch pads 20 miles out on the coast and there's another complexity, floating launch pads. he has incredible ambition and kind of aspiration for this thing and i think it will take a long time before we're there, you have to take it step by step and the first thing is get a fu

vonnie: thank you. back to brexit. jeremy corbyn confirming the party plan to nationalize rail, male, and the national grid. anna edwards asked how he plans to close the pulling gap with conservatives. >> campaign. get our manifesto across. point out that what we are offering this country is to negotiate a trade deal with the european union, which gives a credible leave option, alongside remain, and bring that to a referendum. aboutall, it is empowering young people for the future with better training, apprenticeships, and an equal status between apprenticeships and education. vonnie: johnson had a different to attract voters. >> i hope you will not mind if i also announced today that we are postponing further cuts in corporation tax. before you storm the stage and protest -- [laughter] >> before you storm the stage, let me remind you this saves 6 billion pounds that we could put to the priority of the british people, including the nhs. guy: that's -- let's get insight. chatwell, mizuho international he

vonnie: i am vonnie quinn. this is european close on bloomberg markets. >> president trump said he stands with hong kong. he also wants a trade deal with china. that is from an interview today on fox news. the president won't say he will sign a bill that supports hong kong protesters. china criticized the measure. the president said he has warned the chinese president not to send soldiers to hong kong. in hong kong, the high court has a lot the government to reinstate its ban on protesters wearing masks for seven days. earlier this week, the court ruled the ban was unconstitutional. while it is being appealed, the government wants the ruling to be suspended. protesters wore masks to keep from being identified. house democrats are leaving president trump and suspense on whether the impeachment goes next they wrapped up their last scheduled public hearing on ukraine. they will have to decide whether to schedule more or not for make the next move toward impeaching the president. the bridgewater associates reported

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." traders bracing for swings in the rand as moody's, the only country still to assess south africa outside junk, is due to reassess its rating today. joining us is bloomberg's south africa chief. what would south africa do if they were to be a downgrade today with its credit? with able able to offer creditors -- would they be able to offer creditors some promise? reporter: a credit rating downgrade i the only remaining major ratings company to junk status of south africa's credit rating would be catastrophic. it would be a very big negative, particularly for the rand. it would disqualify south africa from the world government bond index. the subsequent capital outflows, which are estimated at around 15 billion u.s. dollars, could push the brand toward record peaks that we saw earlier this year billion. $15.5 the south african reserve bank governor has said he feels that traders have already started pricing in a possible credit rating downgrade, so the ramifications may not be as big as

-- -- vonnie: it's 10:00 a.m. in new york, 3:00 in london, and 30 minutes into the trading day in the united states. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: retailers in the spotlight, it seems. at 3116.00 we have target up 12% right now. it seems it is beating very much,, thank you very with some of its new web offerings and deliveries. says it is not getting profitability from web operations yet, but raised its guidance, and it seems today retailers are pretty positive, guy. guy: certainly a bit of a turnaround from yesterday. trade probably a bigger narrative, but that story coming out of congress. -- europeanarkets stock markets under a little bit of pressure today, down 0.5%. the senate bill regarding hong kong seems to have cast a little bit of a shadow over markets today. that is certainly keeping people awake at night as we approach december 15. the pound down earlier on, rallying a bit over the last hour or so, back to flat, $1.29. two basis

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." time now for the muni moment. as we up arch -- as we approach the latter part of the credit cycle, there's a similar moment to the muni market back into thousand eight. here with maurice taylor riggs that's here with more is -- in 2008. here with more is taylor riggs. --lor: >> that's exactly right, taylor. there are a lot of similarities to 2008. there's been quite a bit of issuance, and the issuance, with particularly lower rated credit, have very few protections with regards to covenants. the big difference between now and 2008 is there's been little supply, and we seen an increase in taxable issuance. the big difference between now and 2008 is the supply is down versus 2008. if you could compare it to liftrate, we seen a huge in corporate issuance. but the tech supply has been lower, and that is a difference in comparison to 2008. taylor: are you worried at all about liquidity? supply is down and muni investors are mo

vonnie: the u.s.-china trade war weighing heavily on the minds of world and business leaders at the bluebird new economy forum in beijing -- the bloomberg new economy forum in beijing. have a listen. >> we are at the foothills of a cold war. common,ould pursue comprehensive, cooperative and sustainable security, and reject zero-sum game in cold war mentality. >> there's a period in which there is a peace, because nobody wants to fight the country that won the war, and there is a new world order. >> only cooperation is the answer. senior let's get to ubs' vp of wealth management. do we get a phase one deal? most investors say we will get something. a little cold water on that this morning, saying that it is less and less likely. guest: for sure, the news has definitely been extremely mixed. when we look at the information out there, what seems to be is that still we will get the phase one. the top negotiator of china said he is cautiously optimistic, and in spite of the fact that there are some anythin

vonnie: thank you. we are back now with viktor hjort, bnp paribas global head of credit strategy and desk analyst. curious as to where you would automatically look in order to try and figure out what is going kong the markets re-hong -- any markets -- in the kong.s re: hong one way or another, there's bound to be ramifications. viktor: as you said earlier, the issue was whether this has any impact on china's and the u.s.'s ability to negotiate phase one of their trade agreement, so far , one thing that's pretty clear china have aand huge incentive to going ahead with this deal. china gdp growth is clearly below 6%, and i think the most recent rate cut from china is a also acknowledgment they are finally starting to feel the pressure from slowing growth. in the u.s., if you look at various forecasts suggesting gdp 1%,th may be running below that may be why the white house has been very quiet around this issue for now. reflects much more stronger incentives to actually get this deal done. -- get this deal

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." yesterday, house speaker nancy pelosi launched a new phase of the impeachment inquiry, but with an unclear timetable and a lot of political uncertainties. we need to figure out what happens next. here to do that for sr chief white house correspondent -- here to do that for us, our chief white house correspondent kevin cirilli. kevin: that is really the conversation on capitol hill among senior sources to republicans, who have told me they are fully anticipating that wise,ould open hearing get started ahead of the things giving holiday. here at the white house, president trump's remaining steadfast, as well as really having business as usual. he will continue to hit the campaign trail over the next couple of days. meanwhile, i'm also told from the reelection effort, that they are doing this as an opportunity to fund raise. from the democratic perspective, they also view this as a time to get serious, a time to really kicks

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." time now for our weekly etf friday segment. the s&p is up 23% this year, but you wouldn't know it if you took a look at the flows into the etf's. here to tell us why flows have been pretty lackluster, tom psarofagis. this is an unloved rally. nobody is on board. cash is sitting on the sidelines. we are incrementally plotting our way up. athanasios: the market was down 4% last year. this year you have not even half of that, $93 billion or so, on a 23% rally on the s&p. it talks about how this sentiment has been all year. it's just been very defensive, no one really buying into it. in isney that is coming very defensive, but there's not that much money coming in, frankly. vonnie: is there any performance chasing going on? could we see this chasing? athanasios: i think we can, and i think where you could potentially see some money come back into equities in the last quarter is going to be some performance chasing. i mention

vonnie: i'm vonnie quinn. 20 days until u.k. general election and boris johnson's is the issuerexit on the campaign trail. david trimble was one of the architects of the 1988 good friday agreement, which has lasted 21 years now and counting. is the issue he says the prime minister's plan for a process of brexit ireland is better than a solution than the so-called backstop. he argues the backstop would undermine the belfast agreement he helped negotiate. for more, we welcome lord david trimble. i'm curious, your former party has tweeted out that boris johnson's deal is fundamentally bad for the union, a bad deal for northern ireland. what makes you think as unionists it's a good deal for northern ireland? david: i'm quite sure it is in interest to leave the european union, and we will now with boris as prime minister. we can look forward to him acting to take us out of the european union and put us into a situation where we are in control of our own country again. that is the important thing that happen. happen. vonnie: lord trim

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. is: i am guy johnson, this the european close to let's go to israel, breaking news, the prime minister will stand trial for alleged bribery and fraud according to government ministers. thes bring in our guest on phone from jerusalem. we have a political stalemate in israel right now. nobody can form a government. could this be a game changer? >> it's going to be hard to tell, the prime minister who will be standing trial for bribery and fraud does not have to stop down -- step down until he has convicted and has exhausted all avenues of come deal. neither he nor his rival have been able to form a government, and the president this weekend it over the role of picking someone to perhaps form the next government to parliament. or theuld pick netanyahu other candidate. he may be decision, successful. but it is hard to know. i would not want to call it. vonnie: he has been charged in the three cases brought against him, one was for receiving gifts in order to hand out tax breaks. the other

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." opec blushed its annual world -- outlook today, expecting opec published its annual world oil outlook today, expecting -- todemand will fall 4% fall 7% by 2023. joining us now is annmarie hordern. there was a big review earlier on, very dramatic music and so on, and then the report came out. what were they key takeaways? maria: the report was --annmarie: the report was quite grim for opec. as you said, 7% we will demand dropped by 2023. in the report, they are talking about the main driver for this, supply coming from outside opec. they say shale is going to go to 1/5 of global oil supply, and we will see a lot more oil from the likes of norway, guyana, kazakhstan, and brazil. share, is losing market so it's not looking too great for them. vonnie: and yet, at the moment oil prices are going higher. can you circle that square for us? annmarie: the oil market right now is definitely focused on the dema

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." , second day of public hearings underway with the former u.s. ambassador to ukraine testifying. joining us with the latest from capitol hill come a kevin cirilli, bloomberg's chief washington correspondent. one overlearning from investor ovitch? kevin: marie jovanovich testifying, saying that she felt .hreatened she also testified that she feels her ousting by president trump in may was a hit at morale at the state department, as well as the double let's all around the world. president trump having a busy morning as it relates to the impeachment inquiry. hey has released a previous phone call he had with ukraine alsodent zelensky, and he issued a tweet in which he --acked or jovanovich's attacked marie jovanovich's could ability -- marie yovanovitch's credibility. "everywhere marie jovanovich went to turn to bad. she started out since amalia. how did that go? fast forward to ukraine, where the new ukrainian president spok

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bluebird first word news with courtney bloomberg first word news with courtney donohoe. tney: marie jovanovich testified today -- marie yovanov the testified today in impeachment hearing. she lacks direct knowledge of the call between president trump and ukraine's president. the white house economic advisor says negotiations for an interim trade deal with china are down to the final stages. larry kudlow told reporters a deal is close, but not done yet. bloomberg has learned that in recent days, talks have focused on issues ranging from chinese purchases of u.s. farm products to theft of intellectual property. in southern california, investigators are trying to determine why a 16-year-old boy pulled out a gun and opened fire in a crowded schoolyard. two students were killed, three wounded before the shooter turned the gun on himself. he is in critical condition. u.s. retail sales

this is bloomberg. ♪\ vonnie: live from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson. this is bloomberg markets. look at the markets with abigail doolittle. abigail: not a lot of direction to the trading we are seeing this when they. makes moves in the u.s., the s&p 500 fractionally higher, the tech heavy nasdaq down about 2%. the day is young and it seems as though maybe the bulls are going to try to push through, but without a lack of trade headlines and some disappointing economic data earlier today, productivity dropping for the first time since 2015. that is true for the german dax, everything ag little bit risk off, as we have bonds trading higher, yields lower for the first time in four days, influencing sectors beneath the surface. if i use the bloomberg i can show you what i am talking about. more risk on than it has been from half an hour to go -- half down .3%.o, now perhaps going to turn that around into today, the best three days for energy going all the way back to 2015 or 16, on top, some of the rate sensitive secto

vonnie: i'm vonnie quinn in new york. saudi aramco bankers are seeing sufficient really demand to pull off the oil giant's ipo just three days after launching. joining us is our guest to covers oil covered for the americas. does this suggest there was a lot of pressure or demand? >> a little of both. there has been pressure on the government to make sure this goes through well. there is some actual good news, or once. of howdo we have a sense interested, if at all, any foreign investors are in this early read on demand? there was not a ,ot of foreign investor demand as they basically pulled back from showing it to investors in new york and london, really rely more on local, deep-pocketed demands to get this through. vonnie: will it be a one .7 chilean dollar valuation? will there be other conditions attached? >> there could be. too early to tell. still a couple of weeks. see some of the details coming out. to letve already offered people borrow more money. there could be some lockups attached to the other side of that. am

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in with the bloomberg first word news. here with the details, viviana hurtado. viviana: beijing wants the u.s. to roll back tariffs on as much as three under $60 billion of chinese imports to sign an interim trade deal with the u.s.. in return, china could remove tariffs on u.s. goods, mostly farm products. this month, both sides hope to wrap up a deal. president trump asking his chinese counterpart xi jinping to help alleviate the opioid problem as part of. the larger trade talks. washington -- as part of the larger trade talks. opioids are blamed for thousands of deaths in the u.s. today, more transcripts due out from the house impeachment investigation. we are expecting to get the transcript from the hearing with gordon sondland, the u.s. ambassador to the eu. house democrats say in the coming days, more will be released. during the u.k. election campaign, there is one thing prime minister boris johnson can

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." let's check those markets with abigail doolittle. abigail: very small moves for stocks around the world, but a slight risk off tone. we do have another day of fresh record highs for the u.s. major averages. you can see the s&p 500 at this point fractionally lower. the stoxx 600 in europe slightly higher, where we have a bigger -- slightly higher. where we have a bigger selloff, take a look at brent crude. some fears around a economy perhaps slowing. havingudi aramco deal trouble, making it all the more risk off. we have haven bonds once again rallying. there we do have a big rally of outperformance, not helping at this point, the hang seng in hong kong. in the asian session, we had after the day hong kong index had its worst week last week since august, despite the continued protest. this index is on pace for its best day, two days, i should say, and more than a month. in the u.s., the big story of retail is the consumer falling apart. take a look at some of the worst drags on the s&p

vonnie: live from new york i am vonnie quinn. guy: from london i am guy johnson. let's get an update on markets. this point we are looking at a mildly risk off tone around the world. take a look at the nasdaq in the u.s. down 3/10 of 1%. the dow slipping slightly positive but the german dax down 6/10 of 1%, on pace for its worst day in a month despite some strength we had in the asian session the hang seng bouncing back up 1.4% but not helping european or u.s. markets. it will be interesting to see if the risk on flow can come through. we have a bit of a rally for bonds. that is influencing the sector composition for the s&p 500. i will show you what i'm taking a look at. lessp the s&p 500 down than the nasdaq, down to tenths of 1%, but more sectors are lower. though are the three defensive sectors. when rates go lower those stocks look more attractive, energy down 1.5%. industrials,s and investors selling the growth the your spec schuurs -- growthier sectors. bw down sharply, down 4.3% after they cut targets for next year citing a slump in big markets around the

vonnie: i'm vonnie quinn in new york. time for the bloombergquint take. america is set for another big up all weekend. unfortunately, there is almost certain to be a number of those hits that make the highlight reel that sends players up to the hospital. a growing concern for players leagues that face lawsuits. chronic trauma can lead to aid to dinner to brain disease found in autopsy with people with a history of head injuries. a big issue for military veterans. years,last six participation in tackle football has fallen 19%, to 2.9 million. a study of u.s. high school athletes found girls soccer had the highest rate of concussions. girls basketball was second. all 50 states passed laws in the last decade in dealing with head injuries in youth sports. pro leagues for football, hockey, basketball, and hockey have short out there policies in the past years, but lawsuits could force more action. that is your bloomberg quick take. now onto a bloomberg school. exodus point capital management which launched last year with 8 billion in assets is hoping to collec

vonnie: i like that a lot. i think you know what i'm going to say when i start a fight complementing you. you have first prize, not only for your wit but for your chart. common up, balance of power with david westin. we will bring you the speech to the economic club of new york live. these are live pictures. he will be speaking in just a few minutes. this is bloomberg. ♪ david: from bloomberg world headquarters to our tv and radio audiences around the world, welcome to balance, or politics meet business. president trump will deliver marks to the economic club of new york in this hour. wall street will be watching closely. here with more on where things stand at what we can expect, we welcome mike mckee. he is going to talk about more than just trade. forescout -- forescout came to mind. we know he will talk about trade. there are some excerpts from his speech, those who want access to the american market must play by the rules. he is changing the rules as we go along. the american market is the most coveted o

vonnie: and from new york, i'm vonnie quinn. let's check markets now with kailey leinz. kailey: you do have the s&p 500 taken slightly off the highs on the weaker than expected u.s. economic data. you have a fresh dose of optimism on trade filtering through this equity market. you have the dow jones hitting a new high in the stoxx 600 up over 1%. if we switch up the board and take a look at what is leading the charge over in europe, it is the autos with the auto sector up about 3% on the day after positive commentary from wilbur ross who said additional tariffs on vehicle imports may not be necessary after positive conversation with the u.s. and europe. a -- be a bitt of more of an idiosyncratic story. that stock now up about 7% as well as valeo. i want to go back to that record on the dow and take a closer look at what stocks exactly have led us there. you can see it is really just four stocks that have contributed to almost all of the broader average gain. you can see apple, the orange bar contributing 670 points just this yea

vonnie: from new york, i'm vonnie quinn. this is the rpm close on "bloomberg markets -- the european close on "bloomberg markets." offlix, hbo, and a coalition other titans will make a crackdown on password sharing. they are considering a number of measures, among them, texting users a code that they would have to enter to continue watching. investors still think that saudi crown prince mohammed bin salman on has too high a valuation for saudi aramco. money managers like alliancebernstein think it is still too rich. they say lowering the evaluation will be a sign of strength on aramco's part. that is the latest bloomberg business flash. guy: european markets getting ready to close shortly. ftse 100 the underperformers today. the oil stocks have been dragging it down. on the week, though, it is up by 0.8%. it is a clipped by the dax, up over 2%, as is the cac. continental markets had a very good week relative to pretty much everything else. this is bloomberg. ♪ guy: 30 seconds to go. europe about to close. wrapping up a wee

." ♪ vonnie: checking u.s. markets now, we start off pretty ok, but in the last half an hour or so, we have been dropping. 0.4%, the down about s&p 500 down 0.25%. it is the department stores mostly to blame for the s&p drop. kohl's down 17%, the worst of them. macy's and many of the others are also experiencing pretty major losses today. broadcom is up 2%. it is no longer the best performer in the s&p. that goes to biogen. but broadcom still up 2%. the 10 year yield, 1.79%. guy: let's take a look at where we are here in europe. we are trading toward session lows when it comes to stocks. also a selloff when it comes to the oil market. the stocks now down -- the stoxx now down 0.3%. in italy, bonds have been out in front of the story. they certainly been taking a much more cautious approach when it comes to the trade narrative and the global economy over the last few sessions. equity markets have continued to push ever higher. let's get some analysis on where we are right now. lombard chief ts economist, joining

this is bloomberg. ♪ vonnie: live from new york i am vonnie quinn. guy: from london i'm guy johnson. this is the "european close." the trump administration is optimistic about reaching an interim trade deal with china according to wilbur ross. he spoke with reporters in indonesia. china is insisting that president trump rollback tariffs before a deal is signed. president trump and the republican party suffered setbacks into states in off year election. in kentucky matt bevan faces what could be an upset loss in his reelection bid. virginia, democrats seized both houses of the legislature from republicans. in the u.k. prime minister johnson's bid for reelection has been rocked by cabinet resignations. quitting after claims that he knew about a former aide collapse in a trial. the u.s. and china saw some of the biggest rises in greenhouse gas emissions last year caprding to a report from gemini because of energy consumption dominated by fossil fuels. historic gems in asia due to growing use of coal. global news, 24 hours a day on-air and on tic toc on

vonnie: thank you. of course, referring to the speech on tuesday at the economic club of new york at the president is giving on trade. thank you. for more on the market reaction today, let's welcome lindsey bell. has your advice to customers or those opening accounts changed at all during this trade war? lindsey: no, we think investors should remain invested and diversified. the headlines have created a lot ,f volatility up and down created a lot of emotional stress for a lot of our clients. andadvice is to stay calm invested in these markets. amber: i wonder what the risk is to that advice, when you consider markets are close to all-time highs, earnings season, while it beat expectations, profit growth was pretty tepid. we are looking at a current pe for the s&p 500 the highest it's been since january of last year. is this not a perfect recipe for that price for first -- perfection that could be right for a selloff if we get some kind of negative news? lindsey: i completely understand where you're comi

vonnie: i'm vonnie quinn in new york. the roman spoke about ongoing trade tensions and their effect on business. markets, we are viewing our customers, where they are going with their demand, where do they see the changes. there has been a lot of discussion. do supply chains move as trade negotiations move forward? will we see customers move production? we have not seen that. we continue to serve our customers in china with their plans here. 70% of our revenue is specified in our customers' building materials or the processes that they use. that tends to be long cycle demand from them, and that is the same in china. of the most difficult markets for you was china specifically. what makes it difficult for you to gauge customer demand here? mike: they happen to be important here and it was the automotive industry. we saw a decline in demand. -- billed rate of china china specifically declined as we came into 2019. it has been staying soft all year. at the same time, electronics softened as well. between china, electronics g

vonnie: in new york, i'm vonnie quinn. bill, we arens us, getting major surprises on inventory with oil and positive prints at wti. why is that? seeing crude oil trade up, but it is struggling. we are coming out of the maintenance season right now. we are moving into a higher demand for crude oil to create the product. we are seeing bigger builds and headline crude oil, it has not changed into the products quite yet. i am more neutral at these levels, i don't see a lot of value when buying here, but there are some geopolitics. we have iran ramping up nuclear production or putting uranium in now. arabia,ntially saudi ahead of their ipo pushing crude higher. do you so what anticipate will happen with commodities. obviously we are watching futures, do you go home on a friday afternoon waiting for monday to see what happened over the weekend? bill: you have a couple of seasonal aspects into play. you have stocks that are bullish, the s&p is moving higher and the trade news which i'm calling a bait and switch confidence game, y

vonnie: thank you for that. coming for grocery stores and not just through the amazon whole foods acquisition. more on their plan next. this is bloomberg. ♪ amber: this is bloomberg markets. going cashier free. amazon has unveiled plans to launch amazon go through markets and public stores. jobsn has confirmed these will be separate from whole foods, the grocery store chain amazon request -- acquired. matt,re we turn to joining us from seattle. storesl the cashierless work differently to what we are seeing now where you can go in and get your groceries and check yourself out? >> as far as we know, sources say it's the same concept. amazon is exploring different sides -- sizes. grab and go staples, but they are also exploring opening full-size grocery stores. there is one coming in seattle that's about 10,000 square feet and can support up to 30,000 square feet of space we can grab and go and you'll be on the other end of that. i guess it sounds really cashierless, but i wonder what problem is this solving? is

. ♪ vonnie: live, i'm vonnie quinn. by ourre joined bloomberg audiences. theie: one step forward in trade talks, the u.s. and china agreeing to rollback tariffs on each other if they come to a phase one deal. canada'sesting in financial health. we will speak with toronto's mayor. the future of the pharma industry, we are live from the year ahead summit with the president and ceo of cvs health, that conversation, coming up. amanda: let's get a quick check on the major averages. we do get some positive news in all tariffs would be rolled back in the event of a deal being signed. some analysts adjusting, good news on trade has been priced into these markets. hardly a barnburner relative to how positive that would be for individual businesses. ,ooking at the internals energy is showing broader leadership for the s&p 500. tech going along for the ride. inside the market, brookings agencies travel firm, expedia getting hammered today. take a look at the 10 year yield. higheracking back ever around the world, some going from negative to breakeven or positive. in

vonnie: i'm vonnie quinn in new york. talk of a shale slow down reached a steeper pitch this year as investors crushed driller stocks and demand and spending discipline. struggling with low oil prices, banks are naturally back analyzed to american shale producers. here to discuss is someone who covers this for bloomberg news. explain why there is a lack of credit when it seems like there was ample credit for so long, to the point where credit managers were eating up the stuff. >> absolutely. there is almost a fear that has taken over in the market about oil prices. we are seeing commodity prices fall and it's taking producers done with it in a real sense. it is showing up in their stock performance, bond performance. now the only route that these crude productions companies have left is to go to these banks and check out the borrowing basis, to try to extend the loan they had to keep them afloat until they are able to recover and get to a point that those commodity prices are back where they need to be and these companies

this is bloomberg. ♪ jon: this is "bloomberg markets." 2/10 vonnie: i'm vonnie quinn in new york. and used to because this information. these days it is called fake news. facebook, google, and twitter are among those being pressured to stop it. dis information is often described as false content with the intention to manipulate. there are fewer barriers to mass communication. all you need is a computer and internet connection to reach a potentially big audience. people known as trolls and internet bots can drive disinformation campaigns. in the u.s., efforts to run against disinformation can run up against free speech. france has a new law that allows judges to determine what is fake and order its removal in campaigns. in singapore, you can go to prison for 10 years for siding online inaccuracies. that is today's quick take. jon: we want to continue on a theme of technology, google announcing it is acquiring fitbit this morning for $2.1 billion. for more on what the company brings to the smart watchmaker, we have gary. you have a great story. beyond just getting a maker of smart w

vonnie: from new york, i am vonnie quinn. a big day for streaming stocks and travel planning stocks. let's bring in bloomberg's dave wilson to explain it. let's start with the travel planning stocks. we had the ceo of expedia on trying to put a brave face on, but the stock is down almost 25%. it is dragging down others. dave: it is not just expedia, it is trip advisor. they both had numbers out that did not go over well with investors. the stocks are taking a beating. you're talking about the two worst performers on the day in the s&p 500. this is what happens when you have to go up against google. in the past quarter, they tweaked their hotel and flight information, moved away from an app called google trips, build it more into google travel and google maps. they are making a push to have it easier for people to be able to go right to them to do their bookings as opposed to having to go out to these other services like tripadvisor. like expedia. does it bleed across into the likes of airbnb? we are trying to figure out what

vonnie: thank you. it is definitely something we need to tackle immediately and the studies show that. thanks to your great book. .hat is dr. sharfstein that bloomberg rp is part of bloomberg news. weworkk story -- having an effect on the stock of t-mobile. boeing saying it might get the 737 max 8 into the air. this is bloomberg. ♪ i'm mark crumpton. some republicans may testify at the impeachment hearings but will be limited of those who have knowledge of president trump's action. there are at least two people who won't be invited, joe biden's son and the whistleblower. u.s. congressman peter king calling it it's after 14 terms. he is a former chairman of the house homeland security committee. he is the 20th member of his party from the house to plan an exit next year. is head of the brexit party clearing the way for conservative candidates in next month's elections. contested 317 seats against boris johnson's --ty and labor candidates the united nations nuclear watchdog said iran's capacity to enric

vonnie: michael mckee is staying with us. we will bring you jay powell's testimony as soon as it begins. let's get a check of global markets for the moment. here's kailey leinz. kailey: we recovered a lot of our losses. the dow is marginally higher. investors not to stirred by jay powell's released testimony, but we will see how the session plays out as we hear from him on capitol hill. stocks are more decidedly lower in europe, the stoxx 600 down by about 0.3%. on the i'm not function on the s&p 500, rate sensitivity really is the name of the game. up top, we have bond proxies like utilities and real estate, financials,g is the now down about 0.5%. take a look at an intraday chart of the u.s. 10 year yield. you can see we are now down by about seven basis points. bonds holding onto that gains after mixed situation data earlier this morning. finally, some quick movers on the day. take a look at a few laggards. the biggest under performer in the s&p 500 is mosaic, off the , afterpart of 5% j.p. morgan cut the stock the equival

vonnie: i mean, that is a strong rock.being throwing that that is all i am going to say about that. for more on the cyber truck and how investors are welcoming it, let's go to david welch in miami today. apart from the demo and that elon musk is going back to the running board on the armored

this is bloomberg. ♪ vonnie: this is bloomberg markets. time for today's quick take. one of the most contentious funds in the u.s. china trade -- trade war, forced technology transfers. it will now take on more serious implications. pharmaceuticals and cars. companies say their technology can be taken by regulators. .untsman for review he found chinese competitors with that same kind of technology. in new law will ban regulators for forcing technology translators. and part from trade secrets. that is today's quick take. bloomberg businessweek released its best is in school ranked in the u.s.. the ranking is based on surveys of more than 26,000 nba students, alumni, and recruiters about golden experiences as well as compensation and job replacement data. carlos on the plover -- on the program. a slowdown on chinese consumer demand. have a listen. >> i started researching and back then, businessweek had a ranking of business schools and this was number one. that was our bible, the ranking. i looked at it and said hey, i will apply for this. i did that through the 80's i

vonnie: it is interesting. it would seem like perhaps there are conversations going on about whether something should be said publicly, that tweet deleted, and then premier xi saying something. our thanks to bloomberg's karen leigh, joining us from hong kong. in washington, d.c., fed chair jay powell is on capitol hill for a second day. he is set to take questions from lawmakers on the u.s. economic outlook. this time, the house members will speak. as you can see, jay powell is giving his testimony. we expect the chairman and the ranking member to at least give statements, as well as perhaps device ranking member and vice chair. here with what she things about the situation, diane swonk, rent thorton chief economist -- diane swonk, grant thornton chief economist. what did you come away from the testimony with? diane: basically, he is waiting on the sidelines. they are waiting to see the effects and don't see any reason to move to the sidelines. still issues with trade abroad and how weakness abroad could seep i

vonnie: how much more are you going to spend on marketing with vrbo? it is taking time to have this rebranding accepted and known by the public, particularly now with this new challenge of google putting hotel finder above the likes of vrbo in search. that makes it much more difficult for you. i think investors want to know when that will happen, how much it will cost for that to happen? guest: we will do it in a balanced way. we have that and digital television. we are seeing good results. as we roll out internationally, it in acontinue to do balanced way. our alternative accommodation strategy isn't just about vrbo. we brought our partner facing teams closer together. we are now just 650 alternative accommodations offerings from on our corele brands. international expansion for us will be a real combined effort. taylor: that was expedia ceo mark okerstrom. game makers activision, blizzard, and take-two reporting earnings thursday. activision reported third quarter earnings. the world of warcraft classic and call of duty coming off a dismal year, in p

the boat because there's a whole load of ocean science taking place here in plowing our reporter over vonnie has joined the team and they sort themselves out down on the reef let's just take a look at this report it's all over compiled earlier. plow seas are teeming with life most of it concentrated here on the country's barrier reef stretching over 500 kilometers it's one of the planet's few remaining pristine coral reefs but this beauty comes with the fragility of a one of the most pristine reefs in the world but it's just a hair under threat around the world coral reefs are disappearing at an alarming rate it's estimated over a 3rd of all reefs will be destroyed or seriously damaged within the next 10 years climate change is warming see which has a devastating effect on corals forcing them to reject the colorful algae that normally lives within them and bleaching them white much of the reef here in palau has been spared and that's in part because the geography of the region water trapped by the lushly forested limestone cliffs forms a sort of lagoon and warms in the sun but instead of get

vonnie: presumably the first -- david: presumably the first of several coming out as they redact due to national security issues. there were supposed to be depositions behind closed doors. are those going forward? kevin: we do not know whether or not john bolton will go through with the testimony that was scheduled for this week behind closed doors. we are hearing from sources on capitol hill that those public hearings could begin as early as next couple of weeks as nancy pelosi told you in that interview. david: thanks and much to kevin cirilli reporting from capitol hill. now we go to jenny leonard in washington on trade. we heard from wilbur ross over the last night that things are going forward on phase one. what does that mean? jenny: the latest wrinkle we have heard in the past couple of hours is that chinese officials are looking at locations in the u.s. that xi jinping would be willing to sign a deal for. that is significant because chinese officials had initially hoped any signing would be connected to a state visit and a real celebratory visit by him in washington. washingt

vonnie: the headline crossed -- david: the headline crossed just a few moments ago that xerox has bid for hp. it is a fascinating story because it is two companies who have been tech companies on the wane saying let's get together. abigial: they are trying to combine. the idea would be cost synergies. these are two hardware companies and a time where software and internet companies are doing so much better. you put them together and they save $2 billion or $3 billion. smart folks behind the scenes. i was mentioning carl icahn and the companies come together and 18%.e hp q had been up still right now, up 10%. david: xerox is up as well. he did not always have the acquired and the acquirer going up. abigial: that tells you investors and traders like the idea of these two old-school companies coming together. they could save money together and create some sort of hardware giant. got a lot of cash out of the fujifilm deal. a little money to work with. abigial: and they have financing from citi. david: thanks to abigail doolittle for that report on the markets. boris johnson is heading tow

vonnie: how much more are you going to spend on marketing with vrbo? it is taking time to have this rebranding accepted and known by the public, particularly now with this new challenge of google putting hotel finder above the likes of vrbo in search. that makes it much more difficult for you. i think investors want to know when that will happen, how much it will cost for that to happen? mr. okerstrom: we will do it in a balanced way. which is the way that we have always done it. we have that and digital television. we are seeing good results. as we roll out internationally, we will continue to do it in a balanced way. but our alternative accommodation strategy isn't just about vrbo. we brought our partner facing teams closer together. we are now just 650 alternative accommodations offerings from vrbo available on our core brands. international expansion for us will be a real combined effort. taylor: that was expedia ceo mark okerstrom. that does it for this edition of of "best of bloomberg technology". we'll bring you all of the latest in tech through

regard --air in this vonnie: you are the -- david: you are the expert on the white house. square this for me. the president tweeting he had a good and cordial meeting with jay powell, everything was discussed including interest rates. how could it have been a good and cordial meeting if the president says he hates everything jay powell has to say. this in terms of the rhetorical approach chair powell has taken an president trump. if it is a less than 24 hour window where we saw this illustration with president president trump speaking at the economic club of new york that criticized powell and then the chairman testifying in a consistent tone, a apolitical tone before members of congress. what you are hearing based upon the dueling statements is the fed chair continues to strike that consistent fed chair town we have all come to expect from the central bank and president trump continues to raise his concerns that he has done. david: a fascinating story. kevin: to be a fly on the wall. david: kevin cirilli at the white house, very close to that wall. now we turn to damian s