Investors investing in china, but also a broader issue of these financial flows between the u. S. And china and how you addressed those when they involve an economic rival, a Rising Economic rival like china. I think we have seen these qualified denial from the u. S. Treasury and peter navarro, but also confirmation that this conversation is taking place inside the white house. Kevin what are the expectations for next meets meeting with the chinese for next weeks meeting with the chinese vice premier . Thethe explanation expectation are they continue talking. We should be clear that we are not close to a grand bargain. I think the real subject of conversation right now is how do you keep a temporary truce or some kind of peace in the world . One thing we will be looking for in these october 10 and 11th talks is what the u. S. Announces in terms of tariffs due to go up october 15. Shery tonight china celebrates the 70th anniversary of the rule of the communist party. Given the political background, not to mention the violence we have seen, who has more leverage going into these talks . Shawn that is a very good question and a very hard question. Both sides feel they have the upper hand and that is the dangerous position in a negotiation. I think we are seeing the president offer and almost mocking happy birthday to the Chinese Communist party and the peoples republic. I do not think that is necessarily a warm message to negotiators from china coming. It is also a sign the president feels he has the upper hand. At the same time, everything we hear out of beijing is they are feeling very patient and can ride out any trade war. They are sending those signals. Kevin one of the questions i keep getting asked is how the impeachment theater impacts policy. It seems like so far trait politics have not been impacted by the impeachment. Would you agree . Shawn i think that is right at this point. If you are looking at this from the outside, you are watching the early stages of a conversation around impeachment. It is hard to determine how this will play out, how strong the president will be going into an election next year. It is much harder if youre sitting in beijing. Kevin great reporting. Thanks for checking in with us. Lets stick with impeachment. We are joined by marty schenker, Bloomberg News chief content officer. Has the president been successful by impacting republicans in the senate by keeping this issue largely political . Certainly been pounding the twitter button on his iphone, it seems incessantly for the past three days. The Republican Leadership has been very muted and noncritical of the president. Mitch mcconnell was on cnbc earlier and basically fed the line that the democrats have been after this president for three years and suggesting this is just a continuation of that. Storm weom that tweet saw from the president , accusing adam schiff of having to be investigated for treason. We know that chairman is saying the whistleblower will come there soon. What are we expecting and how important will his credibility be . Marty he has already been deemed to be credible by trump appointed leaders of national intelligence. What he may be able to provide us some contours around some of the things he put in his whistleblower report. I do think the Biggest Issue is whether there is a quid pro quo, which Many Democrats say is not even needed for impeachment to go forward. Kevin how important is it for Speaker Nancy Pelosi to keep this focused on just ukraine . These types of stories tend to drag on. How important is it this be a precise impeachment inquiry . Marty i think it is critically important. Throughout the Robert Mueller probe, it seemed like a very confusing narrative for the public to get their heads around. This is very simple. Did donald trump ask ukraine to do him a favor in exchange for military aid . It is in the transcript, the working transcript of the phone conversation. Nancy pelosi, quite properly, has decided that is an easy narrative for the public to understand and she will try to stay disciplined to that message. Shery you have President Trump allies saying you cannot have impeachment based on hearsay testimony. How will they need to frame this in order to defend themselves . As a what you do delivered of body, which the house would have to be is you take hearsay evidence and you try to get people to cooperate it. Donald trump himself cooperated the whistleblowers report. I do not see that that is the issue. The issue is to the democrats get any bipartisan support for a bill of impeachment to send to the senate . Shery marty schenker, thank you so much for your insights. Lets get a check on the markets on this final day of the third quarter. Here is kailey leinz. Kailey we are higher, at least all three major averages higher by 1 or more. The s p trying to head for its third monthly gain in the past four months. Risk sentiment being aided by more positive tones from the u. S. In regards to china investment. Where you are not seeing sentiment filter through, in the oil market easy wti down 1. 3 . As this is the final day of the you can see it is actually down nearly 7 , on pace for its worst quarter since the end of 2018. This is despite developments out of saudi arabia, the attacks on nike oil supply there. War, whathe trade that will do for the oil demand picture is outweighing any kind of geopolitical risk premium good wti trading at 55 a barrel. Thats take a look at the quarterly performance in a sector basis for the equity market. We know it is a defensive sector that has led the quarter and the likes of utilities and consumer staples. I want to take a closer look at utilities because it is trading at record valuations. This is looking at the earnings premium for utilities relative to that of the s p 500. Investors have been willing to pay up for those dividends. Lets take a look at a few movers on the day in the health care space. Results from one of the devices shown to elongateexpectancy. I want to take a look at mark, up a better part of at merck, up a better part of 2 . Rivals not posing a threat. The same story with one of the competitors for a Bladder Cancer drug. Do not have very good results of a trial. Shery thank you so much for the latest on the markets. Coming up, we speak to the head the u. S. China trade tensions. The latest violence in hong kong, and much more. This is bloomberg. Kevin this is balance of power on bloomberg television. Im Kevin Cirilli in washington. Shery i am shery ahn in new york. We turned to riddick a good death for first word news. Ka President Trump is ramping up his attack on adam schiff, questioning whether he should be arrested for treason. He also called the whistleblowers account of his phone call with ukraines president a fraud. Republican congressman Chris Collins of new york says he will now plead guilty to insider trading. The congressman was charged last year with trading on nonpublic from an australian biotech company. He was one of the early supporters of President Trump run for the white house. Texas republican representative and former chairman of the House Armed ServicesCommittee Says he will not seek reelection. He is the sixth texas republican to announce he is not retiring. That could put a dent in republican hopes to retake the house in 2020. In california, a new law will allow College Athletes to make money from endorsements. This defies the ncaa existing policy and sets up and legal challenges that could reshape sports. Gavin newsom says the law will allow athletes to make money from their images, names, and likenesses, and also band schools from kicking athletes off the team if they get paid. California is the first state to pass such a law. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Bloomberg. Is preparingong for bigger protest tomorrow after a weekend of violence. The 70thhina marks anniversary of communist rule beginning this evening. E are joined by Michael Hirson right to have you with us. Most are some of the violent protests we have seen so far, four months of protests. Carrie lam a college the government had to take carrie lam acknowledged the government needed to take responsibility. Why isnt she giving into other demands . Beijing one reason is placing limitations on the kind of concessions carrie lam can make. Beijing is giving her a reasonable degree of flexibility. Somewhat of a degree of flexibility in terms of working this out on her own, but there are some red lines i think carrie lam, because of what beijing would like to see and her own views, their lines that fall far shorte of what protesters are looking for. Shery i wonder what that would do to hong kong standing in china . I asked the head of che Capital Research what this would mean for hong kong. Take a listen . It cannot happen, because the whole point of having the Financial Capital is having a legal system. Very sadly, hong kong is shriveling up and that will strongly affect the chinese economy. Nothing is going to replace it. The reason is because china cannot allow an independent legal system. Shery china has tried hard to replace hong kong with other cities in the mainland. Could this happen . Michael i think it is a serious longterm threat. I do not think it is something that could happen in the near term because of capital controls in china. Hong kong plays an Important Role as an offshore financing hub. There is also an interesting link with this discussion of the u. S. Putting limitations on the ability of chinese firms do list in the u. S. I do not think that is likely to be an abrupt move, but the writing is on the wall. The political environment is becoming more difficult for chinese firms in the u. S. It is less comfortable for washington and beijing. All of this highlights hong kongs role for the time being as an important source of financing for chinese companies. Domestic markets are not quite in the position where they can absorb the amount of capital. Kevin we always talk about what president xi feels he can outlast the Trump Administration , whether another year and a half or five years. What to the hong kong protests mean for u. S. Policy in the long term . Hong kong is not going away as an issue for president xi, no . Michael u. S. Policymakers face an interesting challenge. They want to support the protesters to varying degrees. The question is how do you do that without punishing the hong kong economy . The legislation working its way through congress, the most likely to be passed puts the focus on beijing and the hong kong government. The challenge is you want to maintain hong kongs role as an independent economic hub. This is the balance economic officials are trying to strike trying to strike. Toin marco rubio trying give the u. S. And upper hand as a relates to the u. S. And more of an oversight does the unrest in hong kong make it more difficult for u. S. Lawmakers on both sides of the aisle to get behind the u. S. China trade deal, should we get that far . Michael i think it does. This is one of the pressures adding to a trade deal. The question right now is a low probability of the trade deal coming together this year or next. There is still scope for what you could call a mini deal or a limited deal. With china agreeing to step up purchases of u. S. Agricultural goods. At this level of protest, that is still politically feasible. If you see conditions shouldrate and beijing launch a crackdown in hong kong, even that will be difficult. Igh on the trait outlook considerably. Shery tonight beijing is celebrating the 70th anniversary of communist rule. Xi jinping is the most powerful leader since mao zedong. What implications does that have for china becoming a major power thehe world, not to mention decoupling we are starting to see with the economies of the u. S. Or the Financial Systems of the u. S. Xi wouldwhat president like to avoid is a crackdown. That would have significant economic and diplomatic consequences for china. We cannot rule it out. I think there is a very high bar before beijing comes in with a serious security crackdown in hong kong. Is also quite willing to see hong kong diminished in its importance to china. It is already far less important for chinas economy than it was 10 or 15 years ago as shanghai comes up as a financial sector, as china relaxes capital controls. Those unique features of hong kong start to erode in terms of their value to beijing. I think for xi jinping, there is a willingness to revisit hong kongs role for china. I do not think that translates to launching a crackdown anytime soon. Cannot rule it out, but there is a quite serious risk even for xi jinping in doing that. Shery Michael Hirson, thank you so much for your insights. Kevin coming up next, massachusetts may be ground zero fight over vaping. We are live from boston with an update, next. This is bloomberg. Shery this is balance of power on bloomberg television. I am shery ahn in new york. Kevin i am Kevin Cirilli in washington, d. C. Vaping shops in massachusetts are challenging the governors ban on the sale the products. Joining us as the Boston Bureau chief or Bloomberg News. Is this band working out . at least three shops are in federal court today, kevin. They say there is a constitutional issue. They say the fda has ultimate control. In general, it is superseding the federal authority. They are in court for injunctive relief. People are obeying the band. The people we are talking to, the shop owners who say they are serious about getting people off of cigarettes, they are shut down and their Economic Future is dismal. Shery tell us about that. How big is the massachusetts vaping industry and how many people could get hurt . Industryre told by the that about 2500 workers in massachusetts connected to the vaping industry as it is right of, it is an annual payroll 130 million. Not a lot of money in the broader scheme. What we have learned in our reporting in boston is these are Small Business owners, many of smoking into this for cessation reasons. They have family who were smokers and so forth. We have gotten emotional feedback on this. Kevin there is much market confusion. Last week in the house, they passed legislation that would allow for Financial Institutions to do business with cannabis companies. Are you gauging some of this confusion between vaping versus the push for cannabis and cbd legalization . Tom great question. I am the host of our afternoon radio program. I was confused as anyone else as we got into this. What i can tell you, there are shop owners i have already described in it for, they say, the right reasons. They card people 21 years and older. You cannot buy these pods that have become controversial. On the other hand, their Convenience Stores and gas stations. They say they are selling products to teens, flavored products, highly addictive, highly concentrated nicotine products. They say the shop owners say, those are the people you should crackdown on, not us. We are doing a public service. There is a lot here. There is the thc issue, what are the impurities, what is making people sick . Our reporting on bluebird in boston and new york said it is not that clear yet all reporting on bloomberg in boston and new york said it is not clear yet. Shery it is time for the stock of the hour. We are staying in the tobacco space and looking at altra, which is rising more than 2 . Kailey leinz is here with the story. What are we seeing . Kailey we know this stock has been wrapped in this vaping aisis because it has a 35 5 stake in ju a 35 stake in juul. Jeffries is out with an interesting note talking about how they may get some windfall from this crisis, particularly with icos. They have the rights to market the device in the u. S. Just heats cigarettes, it does not burn it. Jeffries says it may be another option for consumers amid the uncertainty around vaping. That said, it will require significant investment. It could take their Earnings Growth down in the near term, 3 to 5 . He says this could be a product they will push heavily, especially considering they took a much more cautious approach to the market. They went through fda approvals which is something juul did not do and have gotten past those regulatory hurdles. Kevin any other growth areas . Kailey altira has had to diversify. It has a 45 stake in a Canadian Cannabis company. It does have an interest in marijuana. Interest is not working out, we have seen that companys valuation drop off. It was worth 2. 8 million when all tria first invested when altria first invested, it is much less now. Ceo says they envision a world where no one will Smoke Cigarettes anymore so they have to look elsewhere. Shery a wall street tax take center stage as jill biden joins the list of 2020 democratic hopefuls weighing a levy. If you miss the conversation on theo tbv bloomberg. Check on our click on our charts and graphics and interact directly with us. This is bloomberg. Shery this is balance of power on bloomberg television. Im shery ahn in new york. Kevin im Kevin Cirilli in washington, d. C. For bloomberg first word news, we go to ritika gupta. Afghanistan is delivering its message to the u. N. General assembly today, this comes as a highstakes moment in the middle east country. The resultswinning of the president ial election and what follows the recent collapse of peace talks between the u. S. And taliban extremists. Negotiations were aimed at ending americas longest war. British Prime MinisterBoris Johnson is not just funny to get to a brexit deal, he is also battling for his credibility. Ofnson faces accusations sexual impropriety. Journalistroping a 20 years ago and allegations that he had a sexual relationship with a businesswoman. Montana governor Steve Bullock has declared a state of emergency as the state faces a massive earlyseason snowstorm. The storm has already dumped up to two feet in some places. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im ritika gupta. This is bloomberg. Shery we have breaking comment from the boeing ceo. He spoke to bloomberg, saying boeing is creating a new product and Services Safety organization, focused on sharpening the focus on products and Services Safety. Theyre also establishing a Design Requirements Program to implement recommendations from the boards safety review. Lets bring in brooke settlement to talk about the changes that boeing is implementing at the moment. The stock is falling 1. 5 . How will these changes be taken by those observers and the markets . Brooke i think it is the right thing to do, not unexpected given the recommendations you saw from that Board Committee that was created to review their oversight and organization in the wake of those two fatal crashes. What those accidents have taught us is perhaps engineering was not as much at the forefront of culture as it used to be, and should be. This reinforces that focus. This committee will have a direct line to the board Aerospace Safety committee, who is in charge of their practices. They report up to the chief engineer which will also help safety andus on ensure this does not get bogged thatin the other concerns are understandably on the heads of the top divisions. Shery what does this say to boeings business . We are seeing the stock plunge 1. 6 . There was a debate about how many changes boeing would make in the wake of some of these crises. Whats interesting is the share price has not been under as much pressure as you might have expected following two fatal crashes. What has given investors on comfort is that boeing is in a duopoly in the commercial aerospace market. Investors dont want to put all investors dont want to put all of their investment in airbus. To see boeing taking a step need toying we know we improve our oversight, organizational structure, suggests they know they are in for a tougher process with the faa Going Forward. You are seeing regulators want to be more robust in the review process, pressure for that from different branches of the government across the world. I think that is what youll see. Foregoing investors, that likely means delays in product rollouts , and perhaps less emphasis on cash flow. Kevin sticking with that point, when you take a step back and look at this, it seems they are weathering this controversy somewhat well. There does not seem to be as contentious and back and forth between boeing and members of congress, for example, as we have seen in other industries, most notably tech. Have not really had the opportunity yet, the boeing ceo has not testified in front of congress. We will see how contentious it gets. You had thehen executives from the faa and ntsb, congress did not hold back going aggressively after these regulators, asking why we missed this, why were the last country to ground these planes. China and europe move more aggressively to say we need to find out what is going on here before we allow consumers to fly. I dont know that they will take it easy on Dennis Muilen berg when he appears in front of congress in october. Shery we will be watching. Thank you. Kevin wall street is in the crosshairs for 2020 hopefuls. Advisors to joe biden are said to be weighing the introduction of a fresh wall street tax. Joining us now is issac boltansky, director of policy research at compass point. Joe biden is now rumored to be pushing for a tax on wall street. Is he facing pressure from the warren wing of the party . Issac this is another interest instance of campaigning in poetry and governing in prose. Billion as much as 800 raised over 10 years, so we have seen it and other proposals be used from everything from student loan to debt cancellation, health care expansion. Part of it is simply that this is a big revenue raiser. That is something that would be attractive to any campaign. Kevin i have to ask the question because we were talking about this offline. With so much in the impeachment inquiry flaring up, in a shortterm it has weakened President Trump, but also joe biden, which gives a natural boost to somebody like Elizabeth Warren. But in joe biden can survive this, with all of the ties to ukraine, he will be seen as invincible. Issac we have a lot more to play, but the reason is this may weigh on the biden campaign. Anything that weighs on that campaign should be seen as a tailwind for the morant campaign. Warren campaign. Over the past weeks, folks are asking about her policies, what can be done, what would happen given numerous different electoral outcomes. Shery we are seeing biden flirt with the financial transaction tax. What about the wealth tax that Elizabeth Warren and Bernie Sanders want to see . Of the biggest pillars we have seen in the democratic race so far is income inequality. A wealth tax, which is one of the main pillars, especially in plan, it isens viewed as more aggressive than other proposals. That will be a cornerstone Going Forward. The question we have to ask ourselves once we get past this political season, what can actually become law in the next congress . Especially given the composition of the senate races this cycle. Shery that becks the question, what will furniture firms do, sit out the 2020 election campaign, if we see these measures against wall street . Or will they actively support President Trump . We will see the Financial Services community become much more vocal and aggressive in its positioning. Right now, by and large, Financial Services industry has been almost a second tier focus. Things Like Health Care have been far more in the spotlight. As we see this stark contrast between the Republican Democratic candidates, that will play even more. Kevin enough about biden. Can Elizabeth Warren moderate . Issac i dont see how. Shery she was a republican kevin she was a republican wants. About we have to talk right now. She has become the standard bearer on some of these items, you will pull back on some of the proposals, especially related to tax policy and health care. Right now, we are talking about what can win in the primaries, in iowa, new hampshire. There is no reason to start moving to the middle yet. Shery she has been incredibly disciplined. I go back to the scott brown years, where she was able to beat him. Coming up, we are sticking with more politics with impeachment with our allstar political panel. This is bloomberg. That whistleblower will be allowed to come in, allow to come in without a minder from the Justice Department were from the white house to tell the whistleblower what they can and cannot say. We will get the unfiltered testimony of that was a blower. Im defending my client the best way i know how. This is not about getting joe biden in trouble. Its about proving donald trump was framed. On or your oath of office to the constitution of the united states. Speak the truth and let us Work Together to have this be a unifying experience, not a dividing one for our country. Dont make this any worse than it already is. The president is the whistleblower here. Saboteurvidual is a trying to undermine a democratically elected government. Now for whatg us was a wild weekend on the sunday shows is democratic strategist and Rokk Solutions advisor kristen hawn. In new york is e. Obrien murray red barn strategies. Kristin. Art with you, as we head into this, it would appear President Trump has largely kept his impeachment inquiry in the political realm and has not lost any republican support. More somebody who has been on the centerleft, im more wary about how this will play out over the next year heading into the election in 2020. I dont see his support eroding right now, but what you saw was a lot of independence and centerleft immigrants taking a look at this and saying, we have got to have an inquiry. This is unacceptable behavior by the president. Isin kristen is saying this not left of the political realm, but if this continues to go on and continues to go longer and longer, are republicans at risk make a newto maybe political calculation in the senate, the longer this goes on . E. O. the brilliant woman in washington, nancy pelosi should be listening to her. Is weary, thathe she says she is wary about where this will go is exactly it. Nancy pelosi has lost all credibility trying to corral her members. They are now dictating to her where it goes. The president announced he would release the transcript, information, and they still have their own caucus come out and say we are going after him tonight. She has lost control. Any disclosure is there, any conversations, transparency is fantastic for the American People, but impeachment talk is bad for the democrats and good for warren. Shery take a look at his opinion poll. People seem to be more open to an impeachment inquiry into this, the ukraine issue, more than the mueller investigation. How big will the polls play into this narrative . E. Obrien. if you were the average american and all you saw were the head lines, you are going to want the same thing. Theall of that started, reporting was done before the transcript came out. That is what the American People wanted to see. The headlines are out. Any of this polling you have to wonder. No question, we want transparency, but you have to have it in the right fashion. It cannot be about politics. Republicans have frame this as democrats want to take the economy with the impeachment proceedings. Hamill democrats be able to justify this . I dont think anybody wants to take the economy, just like my counterparts on the republican side would not want that either. Those allegations are false. I dont think anybody wants to take thea lot of theseg about it last week, particularly on thursday, when they saw that report not a transcript come out of the white house itself, a had to say they were moving forward with an inquiry. Kevin you and i have talked about this. Speaker pelosiat is under from the left, the progressives in her party to do in peach met, has been going on impeachment, has been going on for months. Kristen i would go back to what my friend was saying about losing the caucus. That wing ofwhen the party was calling for it for months. She moved forward only when the more moderate members in a tougher races said we are ok with Going Forward now. I think she is listening to her caucus. E. Obrien the transparency im talking about is fantastic. Politico had a story about joe biden and both of his sons, his brother. People around him, there are questions about. John kerrys stepson, questions about his partnership with biden. That anyone did anything illegal, but in this process of impeachment, when you have these conversations, perception is reality. That was the polling you were talking about. That is where nancy pelosi will lose total control when jerry nadler cannot control a committee, and they will try to push it over to adam schiff, and there will be fighting in the conference. Shery does it make more sense for Mitch Mcconnell to prolong this fight and keep it as long as they want, or does it make more sense for nancy pelosi to speed things up . E. Obrien the longer it goes on, the worse for democrats. The more conversation, the worse it is. Shery kristen, how important is it for a low c the focus narrowly on the ukraine issue so the public has an easier time understanding the issue . Extraordinarily important, and its a good thing the inquiry will go through the Intel Committee under congressman schiff. That was a strategic move by the speaker, making sure we control this narrative. Narrativentrols the over the next year over impeachment will win this debate. Kevin i dont want to litigate joe biden, whether or not ukraine is good or bad, but if he goes down in the polls, who is the centrist candidate most to gain . Kristen i dont know if we have a centrist candidate. E. Obrien i just said the same thing. These guys are going to have to come back in the general. We on the primary is like. You have to come back toward the center in a general election. All of them have the ability to do that. E. Obrien the winner of all of this is Elizabeth Warren. The more than joe biden goes down, the challenge will be Bernie Sanders and when he decides to step away and endorse Elizabeth Warren, and let the party go so far left, i will love it. Shery we will be back to dissect that scenario. Thank you to kristen hawn, e. Obrien murray. Coming up, fannie mae and freddie mac take another step toward freeing themselves from government control. The latest, next. This is bloomberg. Kevin this is balance of power on bloomberg television. Im Kevin Cirilli in washington, d. C. Shery im shery ahn in new york. The federal government is allowing fannie mae and freddie mac to boost their capital buffers. Its a key step in the Trump Administrations push to breathe the mortgage giants from u. S. Control. Jesse westbrook joins us now in studio. It appears they are moving ahead, but how long will they go before they face congressional roadblocks . [laughter] jesse i think the congressional roadblocks are pretty evident in the house. The democratic leadership in the house will not go along with anything the Trump Administration wants on this. Has failed toly reach an agreement on fannie and freddie since the financial crisis. Going to get out of government control, no one believes congress will play a role in that. That is gutsy by the Trump Administration. If they want to release companies that have a massive role in the economy, unilaterally, hedge funds would reward them, but there are risks to the economy. Wery how much capital are talking about, what does this mean for those tweaks on the bailout agreement . Freddie mac and fannie mae are allowed to hold 3 billion of capital apiece. Everyone agrees if they run into problems like 2008, that would be totally inadequate, wiped out almost immediately. Are taking the steps of letting them retain Quarterly Earnings until anddie gets to 20 billion fannie mae gets to 25 billion. Based on the current earnings profile, it will take the Companies May be a little more than a year. Then we will see what happens. Still not enough capital for them to be private companies, so you are looking at Something Like an ipo, maybe some other form of raising money to boost capital buffers. But this is going to be a long and winding road. Kevin a month ago there was chatter in the wall street world about whether there would be a slowdown or recession. Headwindsk at those about the future, next 15 months, what impact does that have on the Trump Administration from moving forward on fannie mae and freddie mac . Jesse the problem with fannie and freddie is that no one really quite knows what the impact would be on mortgage rates. Shery [laughter] kevin [laughter] treasury would tell you, even if they are free companies, mortgages would not go up that much. On the flipside, Bond Investors who buy all their Mortgage Securities a huge market, truly dollar market bigger than chile dollar market. If they were to stop by no securities for some reason, maybe they think the risk profile is higher because they are not wards of the state, then mortgages are not as readily available as they are now. If it was me, i wouldnt go for it. But they are private market capitalists. There are a lot of people in the Republican Party that dont think the government should have such a big role in housing as it does now. Shery if this is kicking the can down the road, how dependent will this be on what happens in the 2020 elections . Jesse hugely dependent, in my opinion. Treasury secretary steven the fha director mark calabro, can try to get these companies out of government control before the 2020 election. Even if you follow their own words, that is not really the objective. They are realists, they understand it will take longer. If trump does not win, we are doing a 180. The Democratic Party has much different attitudes about what these companies should be doing, they want a much bigger role for Affordable Housing in fannie and freddies mandate. Kevin thank you, jesse westbrook. Shery sign up for the balance of power newsletter to get the latest on global politics. Coming up next, another perspective on where chinese trade talks stand. We are talking to the ceo of the china beige book. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Ritika im ritika gupta with bloomberg first word news. U. K. Chancellor of the extra said he would increase the National Living wage and lower the age at which people get it. Speaking at the annual conference in manchester, england, he said the National Living wage window raised to 10 pounds . 50. He also said he would bring down the age threshold to cover all workers over the age of 21, from 25 currently. In maryland, a law that raises the legal smoking age will go into effect tomorrow. A lot raises the age to purchase cigarettes, cigars, and vaping products from 18 to 21. Legislators say the law will cover all electronic smoking devices, parts, and accessories. In israel, Prime Minister netanyahu will make a lastditch effort to form a government. Elections this month produced a stalemate. Global news 24 hours a day, onair, and tictoc on twitter,