Time to pause before any more likely action. Allthere are big names topping earnings estimates. Shery will have an exclusive interview with facebook coo Sheryl Sandberg in about 20 minutes. Lets get you started with a quick check of the markets. U. S. Futures unchanged at the moment, slightly higher after finishing the regular session. Following a 1. 2 session low center chile announced they would be canceling the apec summit for the u. S. And china intending to sign that partial trade deal. During the presser Jerome Powell said the fed was nowhere near contemplating rate hikes again in the near future, so we had the nasdaq gaining. 3 in the dow also outperforming. Her positive news coming from johnson johnson, and that boosting the dow. It was critical come that interpretation of jay powell saying there would not be fed rate hikes in the future as long as inflation remains sufficiently low. Were set for moderate gains after the u. S. Hit fresh record highs following on the back of fed chair powells comments. 10 , futures up by about and sydney looking to open higher by about. 25 . Were watching the banks trading today and are coming out with stagnant profits this morning. In watching the big minors reporting record highs. New zealand is trading moderate at the moment treading water at the moment. An u. S. China trade deal are in doubt. The two leaders were expected to sign an agreement at the chile trade summit. Say they have no plans to hold the event elsewhere. Bloomberg sources say of merger has been approved to create where the Worlds Largest manufacturers. Investors were given a 6 million dividend with a stake in an auto parts maker to its own shareholders. Israel has set up a Security Panel to monitor Foreign Investments after pressure to scrutinize inflows to china. The move comes after Prime MinisterBenjamin Netanyahu met with u. S. Treasury secretary steven mnuchin. Sing it did take aggressive steps to check Foreign Investments and could jeopardize intelligence sharing agreements with washington. Bloomberg has been told the u. S. Justice department is close to fugitive financier jho low. Prosecutors allege he orchestrated more than 4 billion from the fund that he used to pay for private jet and financing hollywood movies. 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. This is bloomberg. Hasy the federal reserves cut its key rate for the third time this year is expected. Themg it will not reduce again unless it materially weakens. We got the policy statement and investors were not too happy with some of the words missing from that statement, but it seems that fed chair powell was able to turn things around, at least for the equity markets. Kathleen what jay powell said and what the fed said were pretty much expected. They cut the key rate, but they made it pretty clear that they now feel they have done enough. In the policy statement itself come they removed the key phrase that jay powell has been saying over and over again, the pledge to act is appropriate to sustain the economic expansion, clearly the fed feels the economy is Strong Enough to wait and see what happens next, perhaps indefinitely. Lets listen. We see the current stance of Monetary Policy is likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, strong labor market, and inflation near our 2 objective. People are saying the chance of a cut in december is down to about 5 . Kind of surprising that semi people ask about whats going to make you hike the key rate, it was clear to me about how he answered the question, talking about a materially weaker u. S. Economy that would lead to a rate cut, when it fact he was asked about inflation he said wait a minute, inflation has barely hit our target. He is clearly not a man who is looking to be hiking rates anytime soon. Its all about whether or not they will have to cut more. Shery kathleen hays, thank you for sticking around. Our guest is a visiting fellow. Thank you so much for your time today. You have said in the past that you are really not happy with the fed actually committing to sustaining the expansion here in the u. S. They have taken that out of the policy statement. What are your thoughts of what the fed did today . I think the fed did what it felt like it had to do. It is unfortunate they felt that, because they said in the statement and certainly at the press conference, that things look a little better now than they did in the last meeting. So what is the justification for going ahead and cutting . I think the communication here has been very poor, from my perspective. If it is not a weaker economy theyre cutting for, then the economy is Getting Better or if there is less uncertainty, why did they go ahead and cut . I dont think i gave a very good explanation for that. They should have started on that path back in september or july. Kathleen that was a great question, someone should have asked at the presser. So what is next . The economy is very dependent on the consumer, what is next . Charles i dont know, i think that is kind of the confusing part. Again, the fed has not made it very clear. If you go back to the spring in particular and look at what the feds own forecast and predictions were for the economy , the economy has played out not much different than what they thought. And yet instead, they cut rates three times. Now they are saying perhaps we will be on hold until the economy deviates from that path, but it has been on the path. I think the problem here is that its very unclear what the reaction function or the plan is for the fed going through this. Right now, from my perspective, its hard to know whether these are cuts to placate the market, placate the administration, or exactly what. And when the next time comes around, the next meeting, what are they going to be looking at . I just find the communication, regardless of the rate cut or not, the communications and the rationale are very confusing. I wouldnt blame the market if he didnt know what to expect next. I think that is the problem. You aret sounds like slightly questioning the independence of the fed there. Do you think there is a bit of pressure or at least reaction to pressure from the white house . Charles well, certainly there is pressure. I certainly dont want to think they are reacting to that pressure, but because they lack a coherent rationale for cutting rates based on the data, its hard to know what they are reacting to. For me, that is the source of wouldoblem here, and they have been much better off, i think, if they had at least try to make the case that they were unhappy with inflation, they were unhappy with some very specific data trends, but the data hasnt provided them much support for these cuts. So one is left to wonder whether or not its politics, whether or not is just the pressure of the markets and they are kowtowing to the stock market or the financial sector. I dont know, and again, thats the part that troubles me is i dont know exactly what is driving these decisions, and i think that is the bad news, from my perspective. That thatthe sense would be the next bar for them to consider raising rates. Given this very low inflation environment, would not be the right justification . Charles certainly it would be. But i think the question is, is not a very low inflation environment. Inflation is running between 1. 5 and 2 . Adont consider that significant miss in some sense. But i do think the question has become, if they generate a forecast in which inflation begins to accelerate, will they wait for inflation to accelerate, or will they reverse course and raise rates if they feel they need to . I dont know how they are going to react. Again, it is the uncertainty of what their reaction function is that is struggling. Made it at the fed has clear that the domestic economy looked ok, but the trade war and global uncertainty, slowdowns in europe and across the world, was the reason they thought it was important to take out insurance cuts. Do you disagree that this logic of an insurance cut to be preemptive as jay powell talked about, did you think it was a bad idea . Charles yes, i do, because i dont think its going to make much difference. As we said in the opening remarks, i didnt think that language the fed was going to act to sustain the recovery was a viable statement. If the trade war really goes south and the economy is dragged down by foreign performance and other things, the fed cant stop that. They cant sustain the economy in the face of that. So it is kind of misleading to if firms are not investing, which they are not, which seems to be uncertainty over trade, rate cuts are not going to entice them to invest, not going to entice them to take risks. If they did take risks, why do you want the economy and Business People to be taking risks in the face of all this uncertainty . I think the whole rationale for insurance cuts i find a little bit strained at best, if not incoherent. Earlier, in we said the press conference jay powell said things look a little better than the last time we met. So what is driving your decision, then . Its very bad communications, from my perspective. Not an enviable position he finds himself in, in the tradeng to war changes sentiment and changes situation day today. If we were to get a mini deal signed with beijing in the coming weeks, would it make a difference to the fed path . Charles again, i dont know, because i dont know what they are basing their decision on. Since the last meeting if they got a signal there might be a phase one trade agreement but it didnt change their decision, what will . The fed has never adjusted of ay in the anticipation policy that has not occurred. You have never heard the fed say we are going to cut rates or raise rates in anticipation of a tax cut or a tax increase. They dont do that. Thats why this is so confusing. Kathleen in your mind, what is the biggest risk . Are you seriously worried about inflation right now . Charles no, im not seriously worried about inflation in the near term. I dont disagree with his comment that we would have to see something change at least our forecast about inflation going forward. That certainly is the case, but then you are back to the case of whether or not they provided if the economy is meeting the dual mandate or very near it, and they have cut rates three times, how far away are they from neutral . Are they too low . If inflation was gradually rising, with a try to move back up to where they thought neutral was . Which according to them is somewhere around 2. 2 , somewhere in there. Will they move up to that or will they keep rates below what theynsistent with what view their neutral rate is at full employment and inflation targets. Again, i think the problem is not so much cuts or not cuts, its the communication isrounding it that the fed muddling the waters over what is their reaction function, what will they change next . Haidi there is always a lot to ponder in the tea leaves. Great to have you there with your insights and also kathleen hays. Salesahead, facebooks were upbeat but it is still fighting battles on several fronts. Sheryl sandberg joins us for an extrusive interview. Shery of next, preparing for no deal. This time its not about brexit. Chile canceled the apec summit where President Trump and xi where to meet. This is bloomberg. Haidi the u. S. And china were all set to sign a phase one trade agreement in santiago in a couple of weeks come up then chile canceled the whole thing as protest their continue. So what is next for the trade deal . Sean, great to have you. The logistics of where they would meet to sign the deal, there still a great deal of urgency over whether it will get done at all. Both sides been working hard. Ist we do need to remember that they have agreed on the contours of what is in there and they are working out the details. This is not the big bang trade agreement that we might expect the Trump Administration to portray it as, in some ways. The big challenge now is logistical, its getting the two leaders together to actually vandalize finalize the thing. Donald trump is keen to have that happen and have a big splash event around this deal. But the talking will go on and now the talking will focus on where exactly to get the two leaders to meet as well. Shery is there any concern given that we dont have a deadline such as the apec summit that things could get delayed we dont really see both sides seeing eye to eye on many issues . Absolutely. The broader relationship is deteriorating or certainly being tested from issues ranging from byg kong to continuing moves the Trump Administration to crack down on chinese diplomats and Chinese Companies in different ways. So far they have been able to keep the trade discussions isolated from that. This drags on, the harder its going to be to do that. And if the dont have an action forcing event like two leaders meeting and a hard deadline, there is always a risk these things will drag on and lose purpose. Haidi the loss of momentum is a real worry. Were talking about phase one being the low hanging fruit. Going beyond that, its something that could prove to be quite difficult. There a lot of skepticism about what comes after the initial phase one. Thathite house insisting phase two negotiations that President Trump said on october 11 when he announced the deal that phase two negotiations will start right away, but we havent heard that kind of language from the chinese. Issues are the tough all being kicked into the long grass right now, and they need to come back to them. There is a huge amount of uncertainty about when they do that. And now today weve got uncertainty about whether we even get that phase one. Any idea if the blacklisting of huawei and other companies will be included in any part of the negotiations . We keep hearing over and over again from Robert Lighthizer and people like him that they are not prepared to talk about huawei. He is not in charge of that here in washington and has forcefully it into avoid bringing the negotiations. We do hear the chinese still pushing the Trump Administration to at least grant some licenses for nonsensitive technologies, components that could be for u. S. Suppliers, but that hasnt happened yet. We keep hearing from the Trump Administration that Something Like that may be forthcoming soon, but no, absolutely not, no resolution on that front just yet. Shery thank you so much for that, the latest on the u. S. China trade negotiations. We have breaking news at the moment, the u. S. Has stricken a 1 billion deal with jho low in that 1mdb recovery. The malaysian financier at the center of that scandal, and were now hearing that the u. S. Has inked a 1 billion deal with they werejho low and targeting close to 1 billion in assets in order to be able to resolve this case. This was a deal that was being negotiated by the u. S. Department of justice and we are now hearing that the u. S. Has struck that deal. We will have plenty more coming up, especially when it comes to that conversation with facebook. Haidi absolutely, facebook one of the movers after hours, posting thirdquarter sales surging past estimates. Caroline hyde is standing by with an exclusive for us. Caroline im pleased to say that Sheryl Sandberg joins us right now from menlo park california. We welcome our Bloomberg Radio audience to the conversation as well. Lets talk about the 2. 8 grueling people that are currently using your family of apps, the 29 growth in revenue. What is the driver here . Me, im you for having really looking forward to seeing you next week. I think the driver is that we are Building Products that people want to use all of the world. We have about 2. 8 billion using our family of apps, and everything is growing, facebook, instagram, messenger, and importantly, the facebook core app is growing in the united states. Currently we have 9 growth to report yearoveryear this quarter. And people are coming to facebook monthly are using it daily. That means this is a product that continues to help people connect and share, and that people use as part of their daily lives all over the world. Caroline to connect, to understand, to learn. Both mark and yourself spoke passionately about growth and also protection of the user at the moment. Electionwith manipulation and transparency, this is something youre working particularly hard on. Talk about the decision of not blocking political ads, something mark spoke very passionately about, expecting a tough year ahead on that decision. How hard is it to make such a controversial decision . Sheryl it is a controversial decision. We are not doing it for the money, this is less than 1 of our revenue. What mark said is that we believe in Free Expression, we believe in political speech and ads can be part of that. I think we are leading with transparency, to put out an ad library we announce a president ial ads tracker, which means you can see any at anyone is running who is a political candidate anywhere in the u. S. Or in the world if it is not targeted at you. That kind of transparency we think is really important to people understanding. You also talked about investing in protection. One of the things we talked about on our Earnings Call just now is the size of the investments we are making. Working with election commissions all over the world, hiring engineers, using machines and human reviewers, doing what we can to make sure people are kept safe. Caroline so when twitter decides to go in the opposite direction, does that make you question your own decision or do you stand by the fundamental reasoning and transparency you can bring . Call, mark to set on the we have thought about this for years we fundamentally believe that political ads are an important part of the dialogue and can be important against we also believe that Free Expression across the board is something we stand for as a company. People all of the world are using that, certainly politicians are using that, but people are using it, and that is how you see our growth continuing. More aboutalk politicians because its going to be a tough year in terms of regulatory scrutiny. How do you see your role in educating those on capitol hill about this . Sheryl i think we really have to help people understand that targeted ads and privacy are not at odds. We can do both. If you are an advertiser and youre the Biggest Company or the smallest company, we have 7 million advertisers, 140 million businesses using our services. You want to shown added to women in their 50s moving to california, we take the added show to that person and give you back aggravated results. We can do very good at targeting and really make that good for people and help advertisers reach the right person without violating privacy. That is something we need to do a much better job of explaining. Caroline and the integration youre doing at the moment, you talk about a family of apps, facebook, instagram, youre also looking to put them together at the backend. Is this going to help in terms of ensuring that you do remain one whole business . Sheryl thats not where this is coming from, we were doing that before. What we want to do is use, and infrastructure so we could help build our services, but also make sure the Services Provide their own unique services. Mark talked about this on the call, one of the things that happen as instagram was growing is that its growth is explained by kevin and mikes amazing product leadership, but also in terms of infrastructure and ads. We want to continue to do that, support the apps we have in our family, make sure they have what they need to do to continue to serve people around the world. Caroline is not just about the individual. Plays you think commerce out . What we are is a great platform for people to find things. People discover products and services they want. We have done less going all the way down the final to where people actually buy in purchase. Products more nascent for us, but we are working on them. We continue to see our role as to help people connect. Businesses are using it increasingly to message. Where the cool things happening on the platform is how many businesses are connecting to people on messenger and whatsapp. Caroline is the libra project sheryl we are deftly committed to it were not going to roll it out until we have regulatory approval. Our commerce efforts are things on or in services to help you go all the way from seeing a product you might like to check it out and buying it on our service. Caroline you referenced at the start that were going to be getting together next week and looking at the year ahead. 2020, about the optimism you have and some of the opportunities and maybe challenges youll be facing. Its clear that 2020 will be a challenging year for us, for anyone working in the space of expression. But i think the things we feel best about, if you look back at 2016 and you look at what happened in the election, we were not prepared for this new coordinated inauthentic behavior. We are in a very different place now. In 2017 we took down one network that was doing that. In the last year alone we took down 50, including three today which were aimed at other countries. One of those is russia. We are working hard, we have a great working relationship with the department of homeland security, the fbi task force. We head into this election in a completely different place than we were. It doesnt mean we will catch everything or get it perfect, but it does mean that we are prepared in a different way and working with people around the world to protect elections. Caroline thank you so much for your time today, Sheryl Sandberg of facebook. Haidi lets get a quick check of the markets. Futures andg nikkei korea cost be futures higher at the moment, coming after the nikkei suffered its first loss in eight sessions. We seen the japanese yen with that Holding Pattern ahead of the boj policy decision. Cost be, we have seen two sessions of losses. The Deputy Governor coming out right now and speaking to reporters, saying the fomc rate cut actually beats market expectation. The korean lawn been under pressure after rising to a formant high this week on trade optimism. Lets get the first word news. Cut again, reducing Interest Rates for the third time this year. Notual Jerome Powell signals more further cuts in less the Economic Outlook changes. Treasuries weakened on the announcement while stocks in the dollar both showed slight gains. Status ofthe current Monetary Policy is likely to remain appropriate, as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a strong labor market, and inflation near are symmetric 2 objective. Pg ere than 360,000 customers are still without power in california as strong winds fanned more fires. The National WeatherService Called on extreme extreme morning for much of the southern half of the state through thursday evening with gust reaching 130 kilometers per hour. A10 large wild are burning across the state but the winds are expected to ease for the weekend. Prime minister Boris Johnson squared off with jeremy corbyn. Corbyn accused johnson of cutting funds to the National Health service and plan to privatize it. Johnson said corbin would deliver an economic catastrophe for britain and that a second referendum would ruin what should be a glorious year in 2020. Over, time for protest is mr. Speaker. Its time for leadership, and that is what this government will provide. 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. This is bloomberg. Haidi lets get more on what we are watching his trading gets underway in asia here this thursday. Markets continue to show signs at all is not well. Equities continue to rally along with bonds. Heard fromything we the fed that might suggest this will change anytime soon . Still doesntrket really believe the idea that this causes sustainable over the next 12 months. So there is still a cut factored in their, although a lot of that has been dialed back. There is a lot of disagreement as to the future path of the u. S. Economy. You can see that with the fed itself and of course the inflation story continues to be something that lurks in the background, this ongoing fear that you do get an inflationary pickup and thats got to create some problems also for equities, of course. So there is still a lot of disagreement, the bond market suggesting further cuts are needed and powell doing his utmost to suggest that this is more perhaps what we saw back in 1990s with three cuts and then a hold. So it is an interesting period, but it may allow some further gains for equities. Nothing you wouldve thought to provide material of side until the end of the year, but the big caveat being trade tensions amid cancellation of the meeting in chile and whether or not and how soon we can get a date and location for another meeting and signing up that phase one deal. Shery we have seen the british pound steadying someone after recent rally, and yet we have a saying furtherow starting strength. Why . Sachs,e include goldman and two firms have been in that bullish camp throughout the last few weeks with a material rally in starling. Its a sense of going into the election, you can see huge amount of upside, but theres also not a huge amount of downside, is the general message. But the general election thought to be something that would not providing kind of upset with any kind of labor surprise. So youre pretty much sitting where we are nothing to drive starling further where you may see volatility continue to come down and see less of the gyrations we have seen in recent weeks. So trade that doesnt warrant much reward at the moment. Haidi adam, thank you so much for that. At can check out our charts tv on the bloom work. On the bloomberg. Shery joining us is our security analyst. Great to have you with us. Our investors correct in shrugging off the sales decline we have seen in iphones . It is a step in the right direction. If you look at iphone 11, right now its 20 above expectation. You see that in terms of core numbers, services, right around the corner, but the rock of gibraltar continues to be the iphone. You go back six months ago, if apple is theyou poster child, smartphones the stock is probably 40 or 50 lower. Are 900 million iphones worldwide. Thats why the stock is where it is. Were just in the middle innings of the upward cycle. Shery how popular have the new iphones been . Notf you look right now, just in the u. S. But in china, the price cut has been key in china. Have been tracking about 10 above expectations. Lookingw you could be at 200 Million Units in 2020, and if that holds, you have a stock that has a three in front of it. Haidi the issue is that the easy growth period is over. They have pushed every button to get more sales and more discounts in more affordable products, but we are reaching saturation in a lot of markets. Continues to be why services are so key. A golden install base. Right now you have about 350 million iphones with an upgrade opportunity. In therade is the fuel engine over the next 1824 months. Then there are many of the , and you look at this quarter, this is a crowning achievement for cupertino. Haidi when it comes to the you and does it impress do you think its enough in this market . The bundling was a genius move. The pricing was key, that was a major shot across the bow at netflix and others. We think apple could disrupt about 10 at a minimum of the netflix install base. A step up will be process from an organic content as well as acquisitions. There are strong candidates for apple to go after from a content perspective. Theisition has not been in core dna in cupertino. Shery twitter announced that would ban all political advertising globally. How significant would this be . Is kind of a train wreck in terms of earnings for twitter. Facebook and others have been strong. They have some heavy lifting ahead. He going to be another advertising headwind for twitter . This is not the news you want to see after what has been a train wreck over the last week. Haidi it seems like a reason for selling because it seems like the business that comes from political ads is not that big for twitter. Does it set up facebook embracing the ground it wants to own ahead of the election. Is twitter stepping back from that . I think its a tale of two cities right here. Facebook is going on the offense. That is something you have seen in terms of the numbers, they have done a phenomenal job handholding within the beltway in brussels. As we go into this political season, i think the engagement will continue to increase on facebook, advertising will continue to step up. ,witter is starting to stumble where facebook is accelerating to the next phase of growth. I think it is a major positive for facebook in terms of facebook is still leaking their wounds. Haidi always great to have you with us, dan. A messy earnings season, is been a challenging year to stay to say the least. Well tell you what to expect, next. This is bloomberg. Shery chinas largest banks seek out higher profits in the Third Quarter but signaled tougher times ahead. The results came amid a flurry of chinese earnings from the Energy Sector to Home Appliance firms and airlines. Tom mackenzie joins us from beijing. Lets start with the banks. The economic slowdown in china, doesnt have any impact on chinas lenders . Tom it certainly did. Talking about an economic slowdown were looking at growth of about 6 . That is expected to fall below 6 next year, is the weakest growth we have seen in china in three decades. So that is certainly having an effect. Nonetheless, the biggest bank did cut profits in the Third Quarter. So they are still growing, but certainly theres a number different banks and a forced economic slowdown that will likely prove a headwind going forward. In terms of the nonperforming loans, the level picked up in june to the highest in more than 15 years in terms of total inflows for chinas biggest banks. ,hey have made some progress about 200 billion in the first nine months. The banks are putting aside more provisions to take into account that expectation that there could be more bad debt piling up. You seen an increase of about 20 for some of these lenders in terms of provision. So theres a risk that they will get for the red more bad debt further down the line. So that is where the banks are sitting. They have posted that profit growth, but again, the headwinds of their private we havent mentioned the low time rate as those rates come down. Haidi turning to the energy space, how did chinas Energy Giants fair given weve had an with weaker crude prices . Tom both ends downstream and upstream, the Weaker Oil Prices a major factor, down about 18 in the quarter. In terms of upstream, downstream is problematic. Said it is due to a lot of competition in the sector in china. Overall petro chinas profits for Third Quarter fell 58 . Downstream and upstream playing into that. They have to import natural gas and then sell it at a discount because of the government set prices. That continues to be a drag on their earnings. 33 ,ec dropped about largely down to the refining side of the business. The outlook may look a bit brighter for these companies here in china. Shery did Chinese Airlines benefit from week oil . Tom that was certainly a consideration. They dont normally hedge chinas airlines so they may have been better off as a result of the weaker oil. From china suffered net income of about 340 million u. S. China looking for additional funding to buy 31 airbus and boeing jetliners for delivery in 2020. The Airline Sector is continuing to grow. Haidi Tom Mackenzie there in beijing. Turning to australia, thank earnings have kicked off with a , low rates and regulatory changes could drag on results this quarter and bring up the prospect of more dividend cuts. Shane elliott really pointed out myriad issues and challenges facing lenders. Thats a key point, banks are being squeezed from all sides. There is no Single Source of good news. Theres all these pressures that banks around the rest of the were have coped with for years. There is the continual cost of cleaning up for years. Slowing, so there is potentially less demand for credit. They will also have to navigate what is going on in the housing market. Theres pressure to pass on cheaper Interest Rates to customers. Outlook at as the time when the governor is saying they will ease further if needed . The outlook is probably more of the same and potentially even a bit worse. Were talking for your earnings, full year earnings. The latest round of rate cuts made its way through the results so far. Well be getting back to grinding out profit rather than year on year increases we have grown used to over the last decade. But the banks are still immensely profitable. Were not talking earnings falling off a cliff. The latest on the agency earnings. Right there on the mobile in the bloomberg anywhere app. You can customize it so you get the news you care about. This is bloomberg. Shery youre watching daybreak australia. Ceo testified before u. S. Lawmakers for a second day, once again defending the companys leadership in the wake of the 737 max 8 crashes. Justine mullen bark was in the hot seat with questions over compensation and families of the victims urging him to step down. What were the main takeaways . I think the biggest take away emerged without any large bombshell moments. I think that was probably boeings fault. They knew going in this was not going to be an easy time. The lawmakers were angry, there was not going to be very kind treatment of the company through this process. I think his goal was to go through, answer the questions and be forthright but not further star up drama for going. Haidi after the two days of testimony, has boeing committed to making changes when it comes to oversight, for example . I dont think that made any large commitments through this appearance in washington, but it has been clear through the entire certification process and the review that big changes are probably coming through how airplanes go through an regulatory oversight. It remains to be seen what will happen, but i think it is fair to say that there will be changes in that process. Shery given how politicized this has been, does this give us any more clarity on whether the faa will allow the 737 max 8 return this year . That wasnt one of the main things that was addressed. It was also interesting that no one its kind of a given that the plane will return. He stuck with his forecast that end, the faa will approve their changes and certify the plane as safe again and airworthy. I think we are at the point of expecting the plane is going to return, its just unclear when that will happen. Haidi does that mean the worst is and over for boeing and its share price . The shares actually rose a little bit, so i think the Investment Community is relieved there was nothing that came out of this that looked like a showstopper for one of boeings premier products. Has so much riding on it. I think thats where investors were relieved that he got through these two days in washington without anything else coming out. Shery thank is so much for the latest on boeing. Plenty more still ahead. Well discuss how the latest trade headlines and how upcoming china pmi data will play out in the markets. Trading in new zealand is underway. Australia set to open over the next couple of minutes. Lets get a quick update on how we are faring and what we are expecting. New zealand, this is how were trading. Futures turning negative despite a record high on wall street. The sting being taken out by comments from fed chair powell that only serious deflation would put hikes back on the table. We also saw the u. S. Dollar drop as well. That is it from daybreak australia. Well get all the action on daybreak asia next. This is bloomberg. A very good morning. We are under an hour away from the market opening in japan and south korea. Shery good evening from new york. Welcome to daybreak asia. Our top stories this hour. The fed cuts again. Jerome powell says it is time for a pause with Monetary Policy in a good place. Hopes of a handshake in doubt as chile cancels the apec summit