A lot of this really on the back of intel. A lot of investors got that wrong. Intel up 7 after guiding investors higher. A lot of Companies Giving positive guidance. Mohawk, charter, liberty. Weve seen all of these names really push investors, and say 20 20 is going to be a lot better than you thought. However, people are still staying defensive, Still Holding around that 1. 78 level on the tenure. Level on the tenure. Guy in europe, struggling to make headway. The stoxx 600 still cant get through the 400 mark. We are absolutely flat. Some stocks having a great day. Great gucci numbers coming through. Anheuserbusch really suffering. And are suffering in china the united states. The pound is down by around 0. 1 . We will talk about that at a moment. The ruble also on the move today. The governor cutting by 50 basis points, a bit of a surprise when it came to the size of that cut, and hints that we are going to see more to come as well at governor tries to help turn the russian economy around and get it on a stronger growth trajectory. Lets talk a bit about what is happening with the brexit story in a little more detail. Brusselsension in about how long the extension could be for the u. K. Maria tadeo joining us now. The french dont want a long extension. Walk us through what is going to happen here and what the issue is. Maria thats right. Emmanuel macron is willing to put up a fight over the extension, and theres a number of issues here. It is exceptionally long for ambassadors to meet over one subject, so there is split opinion when it comes to how to move forward. Feel that anything they come up with will be seen as either trying to help the Prime Minister get the election or stopping the election. Theres another issue, and this is perhaps where Emmanuel Macron comes into play. That is the fact that the election is not set in stone. This is a hypothetical. We can see ourselves in a position where there could be an Extension Granted for three months, and nothing actually happens. Nothing actually ends the deadlock in the u. K. Parliament. This is something the french are saying now they are not willing to put up with. If they want an extension, they need to get a very clear sense of purpose. We have the french saying what they picture in their minds, their ideal scenario is a short technical expansion, november 30, to focus exclusively on getting this deal through the u. K. Parliament. They feel that time is not going to fix this issue, and what london needs is pressure on mps to get around the deal and finally both this through. Romaine so when you listen to what theyve been saying, maria, does it appear that even if they are given that extension, we are going to be in a different place three months down the road . Know, andl, we dont that is the problem, at least from a european perspective. What we see is a parliament that is still very divided. Still in a situation of real deadlock, and nothing that fundamentally changes anything in the arithmetic and the u. K. Parliament. We are going to have a big problem, and this goes back to the issues the french were highlighting today. They need to see a real sense of purpose, not just a petition for time, not just more time for the sake of time, but something to endsen that actually the brexit wheel. We will find out if there is an election, and after that, ambassadors are due to meet here, but there is already speculation that this will need leaders to come back to brussels a week after that deal was signed to finally figure out whether they grant the extension, how long that should be, and of course, this time to get conditions attached to it. Guy another summit, great. Thank you very much indeed. Maria tadeo joining us from brussels. More now on the impact of brexit on the broader markets. We are joined by derek halpenny, mufg head of Global Market research. How does the pound react to a long extension and a short extension . That a short extension doesnt allow for a general election, the focus goes back to parliament and the willingness to work through the legislation. Obviously, the risks of no deal brexit at the end of november come back in some degree. In that sense, i think the pound would get hit more by that scenario then he scenario of allowing extension until 31 january. Boris johnson once the momentum to keep going the way it is. He needs a time constraint for that. , to giveion was one the constraint of november 7, which is possibly too short. Persuading the european leaders to grant a shorter extension is another. Perhaps he has persuaded Emmanuel Macron to give a shorter extension. I am guessing the labour party would look for something longer, but the labour party and Jeremy Corbyn have been in a very difficult situation. The key question for them, is it better to have a general election while brexit is unresolved, or better to have it after its been resolved . Guy because then they can fight on issues in some of the areas they feel that they are stronger. Do i sell the pound into an election . , 10k based on the polls percentage points, 12 percentage point lead for the tories over the labour party. In terms of getting brexit done, in terms of the deal on the table, that was greeted well by the pound jumping up to 1. 30. I think you could get it between 1. 30 and one dollar 30 five cents on the Boris Johnson deal. You would certainly be buying any dips initially, but i think you should potentially buy into that. Romaine it looks like the bond market has pretty much priced in that johnson is going to succeed in some fashion or another. It may not be an enthusiastic endorsement, but it at least appears to be priced in. Do you think there is at least more upside once we get clarity on how this is going to shake out . Yeah, when you come to yields, there is a mixed dynamic in the u. K. , where you have the more influential impact of the shortterm outcome of brexit as being important, but then of course, you have the broader macro story, and indeed, you have data and the u. K. s adjusting that the household sector is beginning to come under some downward pressure, and that is obviously the uncertainty beginning to seep in. For sure, yields will take another lurch higher if we do get clarity next week one way or another, and if we do get the momentum sticking with the government on the brexit deal done at the end of november, then i think certainly theres upside for yield through until christmas. Romaine how does the boe and the prospective rate cuts factor into your research . That our assumption is the deal is done, obviously the probability comes down. It doesnt go away. Done, ofy brexit is course, i mean the initial withdrawal. Then you go into negotiations next year and have the potential of a cliff edge at the end of 2020. You still have those element of uncertainty. You get the initial phase of there is no urgency on rate cuts, based on the global environment. We expect the u. S. Economy to slow further next year, europe to stabilize at weak levels. This is kind of a statement of the obvious, but does the dollar need to we can more broadly for the pound need to weaken more broadly for the 1. 40 . O go from 1. 30 to derek thats a big move for eurosterling. One of the reasons we ares adjusting one dollar 30 five cents as the limit is when you start to get up to those levels, 1. 35 we are suggesting as the limit is when you start to get up to those levels, it becomes a factor. To get to 1. 40, what that would imply on eurosterling based on our eurodollar forecast, it would be a bit of a stretch. Guy the fed next week . Derek weve got about 10 basis points priced and beyond a rate cut for the end of this year. The market is expecting, and one way, priced for the potential for more, but when you read the news wires and everything, everyone is expecting some kind of strong message of cause. Im not of pause. Im not commits we are going to get a strong message that the economy is slowing, the labor market is slowing, and the consumer is beginning to so shines beginning to show signs of slowdown. I dont think they will be confident enough to give the signal of a pause, and therefore, what is priced in the market is justified. Guy weve got a bit of breaking news. Hold that thought. Romaine. Romaine some breaking news on the trade front. The u. S. Trade Representatives Office putting up an update on what is going on with those china talks, saying things are still going well. They are still finalizing some sections of that trade deal, but say, the two sides are close to finalizing sections of an agreement. U. S. China conversation to continue. That is the detail that we have for the ustr. Lets check in on the Global Markets right now. Heres abigail doolittle. Abigail those trade headlines not having much of an impact on trading, at least for equities. Take a look at the s p 500 in the u. S. , up about 0. 3 . Higher on the week as well, the third up week in a row. The ftse 100 down about 0. 2 . Relatively small moves on both sides of the pond. About 0. 1 . Wn Still Holding onto some key technical levels, although we may see continued consolidation. Theres terminus uncertainty, of course, around how brexit will shape up. The shanghai composite up 0. 5 in the asian session. Overall, i bit of a modest risk on tone. On the year, we have an interesting divergence. We had many guests on the european close talking about how u. K. Risk assets are undervalued. Heres the ftse 100 in white on the year, up about 8 . Compare it in orange to the s p 500 come on pace for its best year since 2013. From a relative basis, perhaps there is a case to be made that the ftse 100 is perhaps undervalued, at least relative to the s p 500, but investors and traders will want to know more about brexit and how that will proceed. Finally on the day, some of the big movers on earnings, take a look at the shares of intel, up 7. 2 on a beat and boost quarter. Resmed, a medicine onpany, shares higher 12 the day. To the downside my amazon down 2. 5 . Well off of the lows yesterday in after hours when shares were plunging after they missed the profit outlook or profit estimates as they spent to keep good on the amazon prime promise of oneday shipping. Shares downmina 10. 2 . Some folks not looking their growth outlook. Romaine great check of what is going on around the markets. Remember, the function gtv on your bloomberg terminal. It lets you browse all of the recent charts we feature right here on bloomberg tv. You can catch up on key analysis and save your favorites if you want to reference them sometime in the future. From new york and london, this is bloomberg. Romaine live from new york, im romaine bostick. Guy from london, on guy johnson. This is the european close on bloomberg markets. Lets check in with the bloomberg first word news. Here with the details, courtney donohoe. The u. S. May send troops and Armored Vehicles to help protect oilfields in northeastern syria. Defense secretary mark esper said the u. S. Wants to make sure Islamic State militants dont get access to the oil. Right now, the oilfields are controlled by syrian kurds. Last week, President Trump insisted all american troops would leave syria. China firing back at Vice President mike pence. The Foreign Ministry called his criticism of human rights lies, and said the u. S. Ignores problems like racism and wealth disparity. The Vice President criticized chinas actions against protesters in hong kong. He also accused beijing of curtailing the rights and liberties of the citys residents. The Justice Department has opened a criminal investigation into whether donald trump or his 2016 campaign were illegally spied on. That escalates a controversy surrounding a probe that has largely been secret for months. The investigation is widening just as the house impeachment inquiry is becoming a threat to the trump presidency. Goldman sachs joining the exit is from ken fishers firm. Goldman is pulling 230 4 million from fisher investments. Clients have withdrawn more than 2. 7 billion from fishers fund since he made vulgar comments at an investor conference. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Romaine thanks, courtney. Back with us, derek halpenny, mufg bank head of Global Markets research. Lets pick back up on the conversation and talk about the Global Growth picture. Weve been getting a lot of mixed signals come about at the end of the day, growth is still somewhat above the longterm averages. When you take a look at the economic picture, does it still favor risk assets . Derek well, weve had a lot of bad moves certainly in europe for 2019, and when we look into 2020, we see some signs of stability coming into the data, and we are expecting a bit of a pickup for growth versus 2019. Its not great growth, but at least it will be some sign of recovery after the weakness we had. You mentioned the trade headline that broke a moment ago. Obviously, what happened at the what happens at the at tech meeting next month will be important. The theme for 2018 and 2019 has been tariffs, more tariffs, tariff uncertainty, and it has clearly had a big effect on trade. While that is not going to disappear, it could certainly received somewhat. That would help in terms of the Global Growth picture for 2020, and of course, we had huge centralbank stimulus, which takes time to kick in. If that starts to kick in next year, it can add to some modestly better growth as well. Romaine one of the big narratives, the appearance of progress on trade, the appearance of progress on brexit. When you talk about two of the biggest geopolitical issues out there right now and the potential that they could be doolved in some due time, you think it is too soon to start popping the champagne corks and celebrating a resolution to what has been a huge overhang on this market . Derek well, anyway, it is about your risk appetite. It is not too soon if you have a firm view and think both of those big mobile factors are going to be less than a negative issue in 2020. Now is your opportunity because if that starts to emerge as a consensus, then prices will have moved. Certainly on brexit, im reasonably confident we are moving in the right direction, and the Withdrawal Agreement issue will be dealt with. On trump, of course, it is much more difficult to protect what might happen to predict what might happen there. But in europe, a very big portion of Global Growth, we are seeing signs of stability, which is better than what weve been seeing for some time. Undstreasuries spread at the moment 250 basis points. You see that going down. Derek i do. We think theres going to be further slowdown in growth next year. Began amec over the last two years has been the u. S. Holding up mainly because of the tax cuts predicting the domestic economy, and the drag now from Global Growth is beginning to come in as well. Weve already had recession perhaps in germany, so we had to hit outside of the u. S. Just some rebalancing of that relative growth picture in 2020 is a fundamental factor behind our dollar bearish view. Not aggressively so, but certainly, spreads could get below 200. Guy is the euro zone capable of withstanding a higher euro . We are at 1. 10 now. 1. 15, 1. 20, what does that do to growth . This is what happened when mario draghi called victory to early. The euro went up and completely killed the growth picture. Derek when euro went from 1. 20 to 1. 40, there was a tightening of conditions, although the periphery improved. The forecast we are looking at in terms of eurodollar, we are talking about potentially 1. 15 for 2020. That type of fx move is not going to have any notable impact in terms of the drag on growth next year. I was just taking a look at the market here. We should point out the u. S. Ark it come of s p 500 trading now right underneath its alltime high of 3026. When you look at some of the positive sentiment thats been coming back into equities specifically, not only in the u. S. , but another parts of the world, you look at the earnings picture starting to unfold for this quarter, do you think those fundamentals of the earnings picture, that is going to be enough to support this market . We were just talking about that, and its casecult to argue a strong for a substantial move higher on the corporate earnings outlook for equities. It is very difficult to do that analysis when we are in such unprecedented times. By that, i mean in terms of negative yield globally, and what that does to your riskreward balance in terms of investing into equities. In that sense, it can certainly hold up for some considerable period given the negative yields, but as i mentioned a moment ago, the positive for u. S. Equities is perhaps foreign earnings next year that might improve with the dollar weakening, but the domestic side of things we think could be more of a challenge now that some of that text stimulus is going to fade from the economy in 2020. Guy stoxx 600 in europe just a few points away from that 400 line weve been watching carefully. Think you for joining us on a friday, derek halpenny, mufg head of Global Markets research. Coming up for you, we are going to talk barclays. Headwinds in 2020. Ceo jes staley talked about two big challenges the bank has to weather next year. Thats coming up. This is bloomberg. Guy good news out of the stock market. We are just seeing the s p going through its record high. High. He closing we will see where the s p actually ends up closing. We will get more details in just a moment. This is bloomberg. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Guy european markets setting up shop. Mixed session. London down, there is up. Luxury sector having a good effect on the paris market. To the states, through to the s p, the closing high. 2798 is the intraday high. We are not quite there yet. Rolling off where we were a few minutes ago. Whether or not the s p can close at the high, remains to be seen. Flirting with elevated levels. Stoxx 600 over the week. 30. 97 is where we are trading. We are nearly at that level. Flirting with that level again. This is an ongoing problem. European markets get up to levels, then drop back behind them. Up 1. 5 this week. U. S. Markets close to their records. Key levels to watch out for, with equity breakout quite significant according to some charts. Sectors,e stock and retail doing well. Cars, basic resources doing well. Mining sectors having a good day despite london. The problem is, the bottom end of the market, heavyweights are under pressure. Anheuserbusch in just a moment really under pressure today. Inck down hard, particularly the states and china. Food and beverage under pressure, that is a bond proxy story. Individual names. Barclays in just a moment. We broke the numbers on gucci last night. Stock responding strongly this morning up 8. 12 . Uber low. It is having problems with one of its clancy titles, trading down 16 today. This, abhts amongst inbev down 10. 44 . Earnings driving the market, leaving European Equity indices at headline level fairly flat. Thing in the u. S. , is momentum. We didnt have that first this week. We broke through the record high. A lot of folks looking at that key level. Psychologically, they want to see if we can trade above it and hold it. We will see later in the day. You have to thank intel for a lot of this. Semiconductor index. Wall street got it wrong. They had written the company off. They got in forward. That is listing up the chip and tech sector. A lot of folks think the business spending, which has been the bedrock of this bull market is intact and Companies Like intel will ride the wave. They were trading higher. Apple and microsoft at record highs. Flip. Faang stocks. Jp morgan. Bank of america, 52 week high. Financials on fire, on the week, on fire, up more than 3 , toward 4 gain if this holds. Apparel companies, bad earnings, not all good. The maker of vans and north face reported bad earnings. Still a lot of companies, still affected by the u. S. China trade dispute, by tariffs. Those companies could prove to be outliers. They could pull this market back down if enough start reporting earnings like that. Retail. This is all amazon. Strip amazon out of the index and this is higher. Tiffanys, nordstroms all rallying. Amazon holding the index back. Real estate on the defensive. A lot of folks moving out. Earnings in that space were not high. Guy romain, lets talk about the banks in europe. Atlantic, shares in the Company Rising after trading revenue outperformed wall street in the Third Quarter. Barclays ceo talked about the result to nejra and matt miller. We are pleased with our markets performance. Up 13 yearoveryear. We look quite good compared to u. S. Peers. European peers, we will see. We continue and argue to gain market share. We had a good quarter, Investment Banking fees up 24 yearoveryear. Debt Capital Markets and equity Capital Markets, strongest Third Quarter in the history of the bank. We are making progress in Investment Bank. We like diversification benefit. We like diversification business, heavily weighted u. S. And u. S. Dollar. Corporate and Investment Bank delivered strong quarter. Revenue was much better cib revenue was much better. Which opportunity do you get excited about . What is the best opportunity for barclays in this environment . Characteristic i feel best about when i look at the Investment Bank is we are across all Asset Classes in markets. I dont think you can pick and choose a vertical in Investment Bank. You need to serve full range of by side clients, offer corporate clients full range of advisory, debt Capital Markets, Equity Capital market services. We do that. We have a full bracket position in new york and europe. Two deepest Capital Markets in the world. I think we are a strong european alternative to the u. S. Banks. I feel comfortable we can compete with them. Ibike our position in the and the breadth of our business model. Insights get some more into the outlook for barclays. London finance editor, Keith Campbell onset. Stocks had a good close. Feeling confident. Warning about next year. Has a few concerns. Big story, the battle with branson. Said his strategy was wrong. Feeling pretty good. Keith he has got to be. He was deadpan. He is trying to rein in excess enthusiasm but he has a good story when you look at other european Investment Banks and wall street. He has to better than the average. 10 trading increase on average when he averaged out wall street, which had a good quarter. Posted 13 . Doing better. Equity doing better. He pointed out revenue for both and m a was a record Third Quarter for barclays. Was given factor brexit, the low interestrate environment, they would have trouble meeting profitability target, 2020 or that it would be a drag on making targets. He gave himself wiggle room. The market rewarded the stock today. Didine any concern that we not hear about costcutting or was that deliberate . On bankerwas pressed pay. We know earlier in the year there was a bust up in the executive suite. Bonuses wereuts to a factor. Unapologetic pulling that lever. He repeated the cost guidance saying it would be at the lower end of previous guidance. If bankers are doing as well as they did this quarter with restraint in the pay, especially given job market, not especially great, ubs today was set to be letting go of more equity traders but overall he feels pretty good about the position he is in for cost. He may have to pull harder on the lever next year. Guy intangible equity next year. Aboutre analysts saying how achievable that is . Keith citigroup says 7 is more realistic. Closer to 9 , people will be happy. There has not been a lot of commentary. He will easily make 10 . Things are generally going his way. Beingards business transformed, profitable. Ventures with uber and american airlines. Branded credit cards, barclays is behind it. , he hasritish context a dollar boost lloyds does not have. Guy talk about the drag of brexit. Where will that affect the business . Keith if you read between the lines of the call, his righthand man said they were paring back in their exposure to unsecured credit. Loans, u. K. Consumer, they are pulling loans back and reducing exposure. Guy great analysis. Joining on the barclays numbers. Airline industry. Middle east. Discount carrier, zero airways will launch from london to kuwait this sunday, using a neofor the route right at the edge of the aircraft operating range. It is also evaluating the switch from airbus to boeing despite controversy around the 737 max 8. Able to operate 14 years and that airplane has served us well. Both manufacturers make airplanes suitable for purpose. 2021, we expect to be 23 airplanes. It would also be necessary to have a placement strategy in place. We are in discussions with both manufacturers for an order of 25 airplanes. Eight for fleet replacement and also for expansion on top. Fundamentally, first step is for boeing to sort out issues with the max. I am reasonably confident based on track records that they will eventually. Sort it out. Once thecial terms, safety concerns are addressed in the fixes a done by boeing, both airplanes are good. We will be engaging with both of solutionet to a acceptable to both parties. Guy you dont have any concerns . I do. At the moment. Im confident they will be resolved. He spoke to me ahead of the route launching sunday, london to kuwait. European stocks trading through the auction process. Not much movement. 100 down a touch. The dax up. Stand up performance led by luxury sector. Of 1 . , up 7 10 Jonathan Ferro is a new york and i will be joining him in london, live on radio in the london area and around the world on bloomberg devices. This is bloomberg. Romaine live from new york, im romaine bostick. Guy from london, im guy johnson. This is the european close on bloomberg markets, and we have the first word news. Reporter Emmanuel Macron blocked the attempt to delay brexit for three months. The u. K. May not know if it will get an extension until hours before it is set to be rejected. Emmanuel macron wants to grant the delay until november 30 or sooner. The goal is to put pressure on the British Parliament to approve the deal. Californias biggest utility admitted its equipment may have ignited a wildfire burning in wine country today, despite blackouts being imposed across the region to prevent places. Pg e had a powerline failure and Sonoma County moments before a wildfire broke out, earning 25 square miles, prompting evacuation orders for 2000 people. Joe biden has unveiled a labor plan aimed at middleclass voters, which would help workers unionized and protect their rights. Rivals portray themselves as champions of working americans. Indonesian investigator found missteps in the crash of the one crash thatx, led to the grounding of the plane. It was linked to design flaws. The report pointed to pilot error. Global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Donohoe, this is bloomberg. Romaine time now for the stock of the hour. Intel. Bullish forecast. Investors rewarding it. Taylor riggs is here. Taylor it is interesting. Bull and bear case today. The bulls are winning when you look at the stock. Up 7. 5 . The ceo highlighting they saw a record amount of business in most segments that let them increase fullyear guidance by 1. 2 billion, increasing cash flow outlook by 1 billion. When you look at the inside of the business, they are seeing good growth in automotives, memory chips, the one area where there not seen growth is in the pc side of the business. Revenues fell 5 . Most areas are releasing strong growth. The problem is, if you flip the board and look at a pie chart of where the revenues coming from. Pcs. They make up half the revenue. That business was the decline. 19 motives, memory growing but it only makes up 4 or 7 of total revenue. That is why you have a case where the bulls are happy, the bears are happy, everyone got a little something. The micron ceo was working on a cloud chip with intel and decided to go it alone. They are wanting to say they want to be in control of their own destiny. Ambear a lot of calls from gaining market share from intel. A little push and pull feeling today. Guy what effect does the chip sector have on wider markets . Faang is failing us. Look at amazon. Chips are doing well. Is it enough . Taylor you are right. Take things. Given the regulatory overhang, nonperforming as well. Semiconductor chips, off the trade work and frankly crushing it. A chart inside the bloomberg terminal, semis, chipmakers, at least today and this quarter, outperforming the nasdaq and other tech stocks. Alone so far Fourth Quarter versus nasdaq up 3 . We talk a lot about this hardware versus software. Semis getting it done. Nasdaq with faang, all the regulatory pressure and growth stories not quite there, that is what is not leading that to the next to bands. Advance. Romaine thanks. Bloomberg business flash. Biggest stories in the news. Taking avision fund, write of 5 billion to reflect the plunging value of Biggest Holdings including uber. Bailout agreed to company in exchange for 80 of the company. The giant Advertising Group has posted First Quarter sales growth. The londonbased firm got more business in the u. K. And western europe. Significant improvement in north america even though business is still down in that region. Person hasest escaped the latest blow. Phone operators have to pay 13 geo,on for the reliance the top provider of voice and data services. It will take a smaller fee then its rivals, vodafone. That is the latest Bloomberg Business flash. Coming up, global battle of the charts, right here from new york and london, this is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Guy global battle of the charts. You can find these on your bloomberg. Gtv. Nction jessica do i have a chart for you. Oil markets. U. S. Exported more crude products than it imported for a Third Straight week. Inflows just over 600,000 barrels a day, showing the u. S. Lack of dependence on foreign oil. What is interesting is, if you look over here, you can see the u. S. Has only become a net exporter of Petroleum Products a handful of times since 2015 when the export ban was lifted. Lets see if the unique streak continues. Something important to watch. Guy nice chart. Romaine i dont know how nice my chart is. I have a good point. This shows you the differential between earnings yield and the s p 500 and what we see in treasury market. The hallmarks of the bull market, you get paid more to be in equities than bonds. That gap was wide for a good portion of the bull market as 20112013. , the gap started to narrow, stocks fell out of favor, less optimism. , that isd of 2018 when we bottomed out. The differential has been widening over the past few months, seen as a bullish signal, particularly when the fed comes to the table next week, expected to cut. A lot of people will be looking forward to what they will say about the trajectory of rates going forward. Stable, youown or could see that differential widen and that could push stocks even higher. Guy it was a nice chart. I will give it to you. Simple reason. I am obsessed with the fed next week and the impact the fed will have in terms of the message on stocks. Stocks are touching record highs. The s p over the last few minutes back pushing toward the 302. 7. Ay record i, todays winner, romaine bostick. Jessica start was good as well. Chart was good as well. 302. 780 for an to intraday above. We are above the closing high for u. S. Stocks. Coming up, max joins us shortly, joining david westin for the giveandtake between the u. S. And china. Will we make progress . We sound like we are. The former u. S. Ambassador to china joining david westin on Bloomberg Television and radio, coming up next. From romaine and i, have a great afternoon. This is bloomberg. David from bloomberg World Headquarters in new york to our Radio Audience worldwide, im david westin and welcome to balance of power, where the world of politics meets the world of business. Kevin cirilli from the white house, the doj going criminal. Emma chandra from london on another hiccup in the march to brexit. News, a short time ago. They are making progress. Maybe an agreement down in chile . Absolutely. In the last hour or so, we got word from the u. S. Trade representative office, bob lighthizer, Steven Mnuchin got on the phone this morning with vice premier in beijing. They continued their discussions about the phase one deal President Trump to sign down at the apec summit in chile. Interesting