To hold discussions until the u. S. Withdraws what it calls a hostile policy. The Trump Administration said the talks were good. Two americans at a british scientist won the nobel prize for physiology or medicine for cellsering how the bodys react to oxygen levels. The work has paved the way to fight anemia, cancer, and other disease. A doctor from harvard is one of the american winners. What we discovered was a molecular pathway or circuit that all multicellular organisms news. Tissues toells and know whether they are getting enough oxygen and to respond accordingly. Mark the announcement kicked out off the nobel prizes that will be awarded on november 10. Global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Mim Mark Crumpton. Im vonnie quinn. Welcome to bloomberg markets. From world, here are the top stories we are following. Ge hits the brakes and a move cluldd debt to the debt. Looking to move into a green home . Jumpll discuss a plan to into the markets. We are halfway into the trading day. Taylor riggs joins us from san francisco. tech continues to tech to way as we await gain a little today. I wanted to take a look at the three year yield, up four basis points to 140. You have three yields rising for a second straight day. Today, up about four basis points. I wanted to talk more broadly about yields and what is happening. I wanted to take a look what a selloff on the front end of the yield curve. You can see five basis points on the twoyear. Only up one basis point. You have the 530s, 65 basis points which is flat. Federal reserve members may or may not cut on the terminal, it is looking like a 67 of a fed rate cut. Only 30 saying we might not see a cut. Up you seeing back are seeing back up they perhaps readjust. Shares of apple gaining to a record high, at 229. We are looking at the record high of 232 hit in october 2018. This is after an analyst raise the park it to 205 from 185, saying they continue to see solid demand for the iphone, after reports last week saying apple had asked suppliers to raise output by 10 . Apple continues to gain. At a chart,a look we talked about the market cap of microsoft and apple. Lookange, we are taking a at the lead that apple has on the market cap, only leading by 13 billion, the narrowest lead going back since may. Microsoft continues to gain ,arket cap relative to amazon now up by 190 million. Microsoft,oes to apple spread will be take a look at the market cap. Vonnie General Electric announced they will cut 6 billion. It has been a great date for , but now ge workers who have worked for decades are seeing a pension freeze. Why pick that portion of things to cut back on . They have the largest underfunded pension in the country and they cut it last year by funding 6 billion. They got better because interest dropped rates dropped and now it is going to go up and there are not taking any impact on the liability structure. Vonnie employees dont have a choice, they just have to accept. Ge has to deal with it and they have a huge amount of debt. This is a big problem for them. They didnt need to put any cash in until 2021, but the liability was going to grow again. They are going to a 401 k structure which a lot of people have now, where they will contribute but it will not certainly be as rich as it was. Vonnie they are offering a lump sum to some employees as well. Urate willmill this eliminate the problem . They have a ways to go. They sold assets and they have money to deal with the pension problem and debt problem. With over 30 billion and asset sales, they are starting to tell us where they are going to put it. This is an important action. The lump sum lessons tale and they will pay the money and they are gone. This goes a long way. Vonnie ge employs 283,000 people, a massive employer. Will it need to do more . What is the outlook . They have slimmed down to four businesses. They have been winding down investments. They will have renewable, power, health care, and aviation. They will probably not slimmed down in the short run from those for. They can solve problems with the 38 billion dollars they are getting in asset sales and then they have to fix the power problem which is the one we dont hear about. They lost a lot of money and the power business after it being profitable. They also cut corporate. They have to do more. They are renegotiation renegotiating contracts. A worker, isu are there a danger that other Companies Might follow this . More companies have gone to 401k, where you are making the Investment Decision and they are offloading risk to you, but they are computing 3 of the compensation each year and they will match other contributions. It is getting to be common. Less common in unionized workforces. Vonnie thank you for that look at the ge reaction. It could be that you could buy your dream apartment in manhattan with prices lunging. That coming up. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. It is a buyers market in manhattan. It is an overcrowded market. Joining us is john and Jonathan Eiler jonathan miller. If it has gone down so much, who is saying it doesnt go down more as the economy drops or goes into recession as some are predicting. Jonathan the answer is, we dont know. With seen softness occurring over the past few months. We have seen the bond market be sort of scared. We have seen rates fall. Falling rates with a booming tock market is confusing buyers and sellers. Sitting. E we have seen a little bit of change where sellers are turned starting to capitulate. Maybe suggests that over the earth so we will see some improvement. What is it taking down prices so much . There is plenty of selling the drop seems to be quite substantial. Clients have been in condos and new development that we are seeing the larger part of the market, the resale market, and the caught market is seeing softness and that is where the change has occurred. There is this pervasive uncertainty throughout the market. We have confusion about the trade war and tariff war. Centrally, we have a booming economy compared with a soft Housing Market and they dont compute. Sellers are holding out for better days. Buyers are here now and the disconnect is a measurement of the softness, so the slowdown. 91 days, something is on the market. 7352 units. Importantthat is an point. The new market is close to the nash Nash National market. New Development National market. Period also, during this of a couple years, we have seen resale inventory slowly rise, binding higher. Not at a record level but reflects that sellers have more competition and that is part of the problem. Vonnie the median sales price is down 8. 2 . The average sale price is down almost twice that to 1. 656 million. Is there a neighborhood that is better than another when youre into the median market . Isnie the answer to that probably no because what we are ining across all segments the markets and neighborhoods is that this is a uniform impact. We are seeing impact cool across the board, whether it is under a million dollars, not to be cavalier about starter markets, and all the way up to the high price points. This has been a market soft at the top and tighter as we move lower in price over the past few years and that continues. We are seeing that weakness carry lower into the starter market then we have seen in the past. Vonnie we are also hearing that the ultraluxury and luxury and may not be doing well. M curious whether you are whether what you are seeing is a result of the current administration. Jonathan it has been soft for four or five years and drifting lower over time. We have still had a tremendous amount of new development come into the market. Right now, it would take nine years to sell out all the unsold condo inventory in manhattan, with the bulk being waited for hted forer end weig the higher end. Vonnie are they continuing to develop . Year or for the next year and a half we are forecasting the units coming online falls off sharply at the end of 2020. We still have a ways to go and all the product has to compete with the existing product that hasnt sold yet. Vonnie always a pressure to speak with you. It is time for the latest Bloomberg Business flash. Looking to cut thousands of jobs. The sale of a Retail Business could take 4000 people off the payroll. Bloomberg has learned that streamlining could lead to a total of 10,000 job cuts. It would be 4 of their global workforce. We have learned that the interim ceo wants the job as ceo on a fulltime basis. In india, ecommerce is catching on. Record revenues reported by amazon of indian sales. Rivals have been dueling in india since the buying of flip card last year. Citiesus is on smaller areas. Al still ahead, a lastminute reprieve keeps President Trumps officials from the for now. This is bloomberg. Vonnie im vonnie quinn. This is bloomberg markets. President when a reprieve that will keep his tax returns out of the hands of the strict attorney. Determinate that years of documents. I think the District Court gave short thrift to the president s argument under the supremacy clause, which is substantial, which prevents a state court in interfering with the president s exercise of his ful competition constitutional duties while he is president. Vonnie will we see the tax returns or no . In the near term. After the decisions this morning, the Manhattan District Attorney asked the Second Circuit court of appeals if they could schedule this and have arguments and filings on an x divided basis on an expedited basis. Instead of allowing this to languish in the normal appellate asked for a, they quick turnaround so we can decide this month. Vonnie but the court has not decided on the request . Greg we can assume the fact that this belongs involves the president that there are constitutional issues and this is not just another case. I would not be surprised if it got taken up in an expedited process. Innie if it gets taken up an expedited process, the president s lawyers will have to convince the judge that indeed they dont have to show the documents. Greg there would be a back and forth this week in which the president will continue to make the arguments they made earlier and this was and i am paraphrasing, that this is a form of harassment while the president is in office. There will be more arguments next monday. Lets assume that the District Court judge is right and the second court of appeals also in vances way. It could go to the Supreme Court and they could decline to take it out or decide to hear arguments there. The president has appointed two justices of the nine in the past three years. Vonnie what line of argument of the president s lawyers taken taking . Greg they took an expansive view of the president s position and just the fact that he is president and didnt allow a state actor to investigate wrongdoing. This wasnt out of the blue. Vances office wanted to take a look at the same contact that landed Michael Cohen in jail, namely the payoff to Stormy Daniels in the days of the 2016 campaign that was not treated as a Campaign Finance violation and landed Michael Cohen in jail. A legit and the president was deemed to be a participant. The das office leaves they have ategitimate reason to look the books. They are taking advantage of a books and record law that maintains companies that are based in new york have to keep accurate books and records and not fudge numbers to hide Illicit Activity. Now they have evidence of the Illicit Activity and now they can go after the Term Organization for hiding that. Vonnie we know the president has a reprieve for the moment until the next set of arguments is considered, but the fact that the president and his team lost the fight early this morning before the appeal was that a surprise . Be a there was supposed to decision. We have been waiting for this day for a month. The complete loss of the president s argument at this federal court was not a total surprise. Au always hope that you get favorable judgment somewhere and he got none of that. Vonnie greg farrell will keep that keep an eye on that and keep us up to date with President Trump and his tax records. Quick looko have a at where we are data wise. And so is then down jones industrial average the Dow Jones Industrial average. Lot going on at the white house. The decision on turkey was getting whiplash twitch did not p the lira or the trick us whiplash which did not help the lira or the turkish lira. Department stores with the best performer in the s and p 500. 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 an eligible phone. Call, click, or visit a store today. Mark here is bloomberg first word news. House democrats moving forward with the impeachment hearings. They are now looking at a second person with knowledge. Three house committees sent subpoenas to the Defense Department in the office of management and budget for documents. The committees want records on a suspension to you will ukraine for aid. The United States will stand aside when turkeys military lunches and offensive against americas kurdish allies in syria. That is a significant shift in u. S. Policy area turkey considers it a National Threat to their security. President defended his position and tweeted that the u. S. Cannot be caught up in what he calls ridiculous, endless wars. And northeen the u. S. Korea stalled. French president Emmanuel Macron and irish Prime Minister both the signal they want progress by friday. Prime minister orest johnson is defiant, telling Boris Johnson is defiant. Traffic in parts of Central London ground to a halt as climate protesters took to the states streets. They locked themselves to vans and each other. They want the government to do more to contain climate change. The group behind the process wants to achieve zero Carbon Emissions by 2025. Similar protests are happen in other european cities. Global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Im shery ahn. Im amanda lag. Lang. Nda talks days away, chinese officials indicating they are more and more reluctant to agreed to a trade deal with the u. S. Caught between two cultures, the nbas globes for expansion after a hong kong tweet sparks outreach. Onis johnson doubles down his no deal brexit. Lets get a check on major averages. We have stocks observing multitudes of information. Ame good news in a sense that Chinese Company delisting may not be on the table. The nasdaq flirting with it right now. These are markets watching crosscurrents. We will focus on earnings. The lira took it on the chin as President Trump not only making decisions about what will happen in syria but has a saying he economy. The lira hitting a onemonth low against the u. S. Dollar. Shery the positive headline coming from larry kudlow on the price swing of 1 . At the kneejerk reaction on alibaba. All of the focus now is on thursday when the chinau. S. Trade talks resume. Officials aree increasingly reluctant to agree to a broad trade deal pursued by President Trump ahead of the negotiations that restart that had raised hopes for a potential truce. Here is our bloomberg trade reporter. Adding to the uncertainty out there, there had been hopes. Walk us through what you think this means. The first thing that we need to Pay Attention to is the contours of the broader deal that donald trump has been seeking with the chinese, something that would rewrite the economic relationship. It looks like what we are seeing that they are telling visitors to beijing that the chinese are unwilling to entertain any conversations about government subsidies, big industries, big elements of industrial policies as part of a broader deal. Matterre the crux of the for a lot of people in the United States when it comes to talk about unfair competition from china, and elevated element of reduced tensions. A lot of the Trump Administration wont accept Something Like that. However, a feeling that some kind of mini deal or truce or something to stop the escalation may be possible in the coming weeks and that would be welcomed by markets. What form that will take is unclear. We have been hearing from the president that he wants to see the chinese step up agricultural purchases. That is something the chinese are willing to do, in large part because they need the pork and soybeans that they have stopped buying in a lot of ways from the United States. Considerpossibly halting further tariffs that would be to the advantage of the u. S. As well. Have seen soft manufacturing numbers and other evidence that tariffs are starting to bite in the u. S. Economy. Shery when it comes to the industrial policies by china, is that a change of heart in beijing or has it been on the table . Shawn there was always skepticism that the chinese would embrace wholesale change in the economic model that got them to where they are today. Encouragingubsidies industrial champions really driving topdown industrial policy. Those are the keys to the success of china over the past 20 to 30 years. There are always Big Questions whether those will be in these talks. In may, we were told by people close to the negotiations that there were some commitments that the u. S. And china were exchanging. Backe seeing a rolling since then which is significant and reflects the escalation over the summer. Shery thank you so much for that. Nba is facing backlash in china after the general manager of the Houston Rockets posted a tweet in support of the prodemocracy protests in hong kong. The general manager deleted and walked back the tweet but not before outcry. Nbapoke with a Deputy Commissioner during the finals in june and he had this to say about the importance of the leagues global expansion, particularly in china. The game is a global date. Game. 25 of the players were born outside of the United States. The International Ownership piece continues to be a part of the nba. So much of that is driven by the popularity of our sport. Shery in september, the full owner of the Brooklyn Nets was approved by the board of governors. Janet is here with more on this. We just heard how important china is. How much money are we talking about . Janet billions and that is direct money in terms of games that will be broadcast. Cctv said he will not broadcast rockets came in china now. It is sponsorship money and it also has to do with the stability of the nba and its team in china and how vulnerable their popularity is to the chinese government, essentially. Leftof the money that is has to do with how much the teams are worth if there access to the Chinese Market is there. Amanda there was a high level of discontent at this. Luxury have seen other brands, some have had missteps. How fast do they recover . Misstepsme of the recently have been offensive advertising oreo considered stereotypes. Or ill considered stereotypes. The protests in hong kong pose a. Hreat to chinese sovereignty said someally, he countries have issues and this is the third rail issue. The nba certainly believes they will recover. The rockets have a long history in china. The sense is that they will combat from this but we do not know how long it is going to take. Getting hitba is from all sides, including by lawmakers in the United States. Ted cruz says, i was proud to see them call out the communists. Now in pursuit of big money, they shamefully retreated. How much are the nba trying to cool it . They are trying to thread the very difficult needle where they are saying we are a league that is about expression and we are not quashing expression. At the same time, there are consequences for expression. And the chinese fans are important to them. They are trying to squeeze in between and workable the sides. It is not easy. Amanda the question it has raise that it is a political issue or a domestic issue. If it becomes elevated, does it become important for others in the league to take a stand . Janet that becomes very difficult in todays economy. Companies be more active in terms of taking domestic political stances. Hasa, as a marketplace, become hugely important for growth in the west that they have a very difficult time waiting into that international politics. Amanda thank you so much for your thoughts. This is bloomberg. Shery this is bloomberg markets. Im shery ahn. Lang. im amanda the Supreme Court has turned away an appeal by amazon that what allow hourly workers at designer warehouses to continue claims for compensation. The worker say they are owed money. The decline in carloads for u. S. Railroads declined, the biggest drop in three years. Shipment down for auto, coal, grain. Crude oil is the only bright spot. Tech uniformm a unicorn just raised money. The investment is more than 1 billion and they will use the money to go after new clients and build out technology. That is your business flash update. Isomberg businessweek focusing on the world of a private market. Amassed auity has portfolio amassed at 4 trillion, emerging as a force of how business plays out around the world. The Capital Partners announced it raised 1 million for the private Orchids Private markets. Thank you for being here. Thank you for having me. Who would be your competitors when you think about the kinds of investments you make . Private equity, we occupy what is the midmarket. It means businesses that have fouresses that have up to million. The biggerbelow pools that people go after. Amanda with the hunt for yield, how are you with assets . Stewart it is competitive. The focus on the mid market has been a sustainable market for us. They have tended to congregate in small number in very large rules. We want to be below the radar. Shery where are you finding those opportunities in terms of regions . Stuart it depends on the asset class. For private equity, we invest globally. Ar infrastructure, it is relative value approach across different markets. It is the common theme of looking for relative value in mid park it companies. Amanda what factors influence your return the most . Risk,e a credit cycle what do you watch most closely . Stuart it is important to stay focused on the Cash Flow Properties of what we are investing in. With being in the midmarket, we focus on regional and there tends to be less exposure to the issues we have been dealing with. Amanda recession could have an impact on cash flow . Stuart it certainly could. Having successfully invested over years, we are looking at our underwriting. Shery are you seeing opportunities in the u. K. At the moment . Stuart we have the benefit of being able to take a view over a number of years. One good example is a businessweek invested in is a veteran roll up and the humanization of pets and people spending more met more money on pet care. That is something that will not be directly affected by brexit or geopolitical issues. Those of the types of resilient businesses we look for. Amanda you just raise a total of 13 billion. Who is your source of capital . Stuart because we sit where Global Markets are going, it is a range. We have Institutional Investors and we had capital from two of our largest partners, both big globally sophisticated investors. The use north leaf as a complement to what their teams are doing internally. It is a range of investors. Everybody is looking for some access to private markets. Shery so youve raised money in the u. S. , asia and europe, do they have different focus when they for Investment Strategies . Theme it is a consistent and something we have been doing going back 20 years, and that is a focus on midmarkets and private credit. Regardless of the jurisdiction of the investors, they tend to come for us to the well structured assets that have midmarket orientation. Amanda how do you measure your returns . Is it a yield . Irrrt typically, it is an and we are looking to what we can get for a fist income investment. Amanda thank you for being here. Stuart he is the managing director at north leaf. This is bloomberg. Is bloomberg markets. Boris johnson Holding Steady on takerejudice pledged to them out of brexit. Lets talk to john authors. They got a boost from a scottish judge. How big of a boost will this be . John i suspect not a big one prejudgehe state will and he will do with a lot requires of him and request an extension from the eu and it should not be necessary for the court to compel him to do so. I have heard various different versions of this. Where in unprecedented legal territory and has been for a while but i doubt it strengthens his hand very much and has not moved the pound much. Amanda for some time, it does not seem the eu position has changed. It does not seem as though they are negotiating. John i think both sides would say there is a lack on both sides. When it comes to the eu is that it is not as though the u. K. Can unilaterally say we will take another six months over this. It does need to be improved approved by the entire e. U. That leads to the possibility that this is a greater risk to the attempts in the u. K. To stop britain leaving without a deal at the end of the month. That leads to the possibility that Somebody Just says, no, we are not going to give the u. K. An extension and also leads to the accusations that Boris Johnson and his colleagues are trying to encourage the year other European Countries to do that. Andugh extremely strange unprecedented territory. The e. U. Side to this is possibly more important than the british side to whether there will be any progress made. Shery we are seeing more estimates coming saying that trading between the u. K. And the e. U. Could have additional costs of almost 10 million. Are all of these estimates falling on deaf ears . To be in terms of the political fight over what britain is going to do, all the Big Decisions are exactly what the relationship with the e. U. Will be in the future and how paris will be set are not part of the Brexit Process at all. That is the next stage after britain leaves the e. U. It is about we had a referendum and those who take one position say that means we have to leave on whatever terms on this date and the other side said you never said you were going to leave on such bad terms. That is what it is about now. Amanda bloombergs johns authers. The s p swinging from low to high at 1 . This is bloomberg. Mark i am Mark Crumpton with bloomberg first word news. A federal Appeals Court has granted President Trump a lastminute reprieve in his effort to block the subpoena for tax records. That will delay a federal judges ruling from taking effect that would have forced the president s Accounting Firm to hand the records over to the Manhattan District Attorney this afternoon. The d. A. Is investigating whether the Trump Organization falsified Business Records related to hush money payments. His lawyers say the investigation is politically motivated. Left andean immigration policy conference at Georgetown University without speaking after protesters shouted him down. As he took the stage, protesters shouted children were under attack. They also began yelling the names of children who have died after they were in immigration custody. The secretary tried to speak at least three times before leaving the stage. In hong kong, activists followed up a car out of chaotic weekend with more demonstrations today