Far as 1. 69 . It is now 1. 71 percent. Dell are index is weak. Just one stock i am wanting out here, fitbit, trading up 15 . Google is buying fitbit. The offer price is 7. 35, trading right below where google offered. Guy lets talk about what the situation looks like here in europe. The stoxx 600 got within shouting distance of the 400 line. This after the payroll number came out. It then fell back. Maybe getting another jab at that this week. Lets take a look at the Bigger Picture numbers. 399. 3. 00, we have seen a slightly stronger pound. Pay attention to what is happening in south africa this evening. Moodys potentially looking to downgrade south africa. That would take south africa into junk status. That would have a meaningful impact for the rum oppose a ramaphosa decision. A wto decision now. The wto has approved sanctions from china on the u. S. , this coming before the trade dispute. In chinese trade sanctions on the United States. It could add a layer of tension to the ongoing talks, but apparently, it does not at all affect anything in phase one of the china deal, so we shall see how that gets digested in washington. Lets get back to the u. S. Jobs report and Economic Data in general. Hiring in october diddly resilient. Carl riccadonna in october unexpectedly resilient. Carl riccadonna is with us. Anything in there that we may have missed, any weaknesses or strengths . Carl i think theres a very important point that was missed in the details of the report. This goes back to vice chair claire ida vice chair claridas remarks. That is entirely sure the case because when we connect all the dots, but weve been seeing recently in the Economic Data yesterday, we saw very weak Income Growth in the september personal income data. Spending numbers were not particularly robust. If we look at the moving average over the last three months, we are looking kind of like where we were in the First Quarter of this year, where consumers didnt perform very well at all. When we look a little more forwardlooking, and look at the income proxy that we can calculate from the nonfarm payroll data in average Hourly Earnings and weekly hours, the aggregate Income Growth number is decelerating back to levels that we saw in 2017. I am not going to say consumers are cracking. I agree with vice chair clarida in that respect. But there are some downdrafts present which could weigh on consumer activity in the fourth quarter. Guy what did you make of the ism number . The manufacture and sector is weak. Is there anything in there that changes anything . Carl the Manufacturing Sector is in recession, but when we combine the ism report and the jobs report, the factory sector recession is not dragging the broader economy into recession. That being said, in past instances where the factory sector was in recession, the rest of the economy can do ok, but typically not great. That is consistent with an economy in the back half of this year growing below 2 . Vonnie carl riccadonna, thank you for bringing that. Carl riccadonna is Bloomberg Economics chief u. S. Economist. Guy for more, we are joined by peter kinsella, Union Bancaire privee global head of fx strategy. What does the data mean for the dollar . Peter it is good. Wage growth is doing fine, and implement low. The overall data suggests you have no reason to sell the dollar at this stage. Coming into this week, we thought the fed would potentially introduce a standing repo facility. They didnt do that. They just said we are keeping rates on hold until the new year. On the balance of that, with good data and the fed on hold, youve basically got no reason to sell the dollar. Guy only until new year. Peter i would think so. We will have to see how the data develops. What youre economics chief mentioned, we are seeing a slowdown in growth. It is a global slowdown. What is interesting is the combination of slowing growth and even declining inflation could spread the effect could spur the fed to cut again come the new year. Vonnie give us some forecasts for the dollar, and also what trades you like off the back of what your forecasting. Peter sure. I think that eurodollar will broadly appreciate over the course of the next year. I think we can get to around 1. 16, or even 1. 18 by the end of 2020. Im a big fan of sterling against the dollar. Weve removed any Downside Risk for sterling. It is still phenomenally cheap compared to practically any other currency in g10. So i am long sterling against the dollar. Around 1. 40, are 1. 45. Elsewhere, i feel what the yen for the number i feel like the yen for a number of reasons. It tends to correlate very well with dollar yen, so i wont be surprised to see dollaryen trading around 100 by the end of next year. Vonnie lets go back to the sterling forecast. How can you possibly make assumptions that will allow you to see sterling at 1. 40, given that we have no idea what is happening with brexit, and what would happen postbrexit for the u. K. To integrate itself into the Global Economy with trade deals and so on . How can you relate sterling to any other currency at this point . Peter if you look at sterling, trades are at phenomenally cheap levels. Really, what weve seen the of weeks is that worst Case Scenarios for sterling are not going to happen. We are not going to see a new deal brexit, so that is good. We are getting to a stage now where obviously, the Withdrawal Agreement has been passed, albeit not yet ratified in the u. K. Parliament. We will get that after the general election. There needs to be more constructed about sterling. We are going into longstanding trade negotiations with the eu. That will definitely take longer than one year, but the glass is far asll a sterling. Guy just the more specific risks around that, nigel farage, if he were to run candidates against boris johnson, how would that risk that story . Nigel for raj would like to see nigel farage would like to see a harder brexit. If he does split the vote for conservatives, could we end up with a labour Led Coalition . How would that change your target . Peter the first point, the threat, the brexit party tends to get reasonably behind the polls, but that doesnt translate into seats come election time. Isen the chance that johnson campaigning on his deal, which is a reasonable copper mies for all concerned, i would assume that a lot of this hard brexit vote is not going to materialize. Im not all that worried about farage. As were guards to a potential labour Led Coalition, it is unlikely to see. Johnson,ok at boris hes spent most of his time outside of london since he issuespm, talking about that resonate with white, workingclass voters. He is trying to steal seats from labour, and i would not be surprised if he manages to pull it out. Guy peter is going to stick around with us. Peter kinsella, Union Bancaire privee global head of fx strategy. Vonnie lets check Global Markets now. Heres kailey leinz. Kailey we have a healthy rally underway for equities. We are at the highs of the session, but still have the dow, the s p 500, and the nasdaq all higher, between 0. 8 and 0. 0 . Also have the stoxx hundred higher. The stoxx 600 higher. The terminal and look at the imap function, nine out of the 11 sectors are in the green today. The only ones that arent are traditional defenses, utilities and real estate. Top out performers are the more cyclical sectors. The biggest outperform are on the day is energy. It is up about 1. 8 . On part, that is due to earnings from Big Oil Companies this morning, but also being aided in the rally we are seeing in oil. If we take a quick check on commodities, wti is higher by the better part of 2 today, the first gain for oil in the past week. It is still on pace for a weekly loss nonetheless. Part ofp the better 0. 5 . To the downside, we have gold. Investors not as interested in that safe haven asset today. Lets take a look at a few outside maneuvers. Up top, the best performer in the s p 500. Its forecast tops all of analyst estimates. Thank you very much indeed. Lets get back to that breaking news vonnie broadus at the top of the hour. Approved 3. 6 billion dollars in chinese trade sanctions on the United States. This predates the trade war. Tom orlik of Bloomberg Economics joins us from washington. It does predate the current trade war, but it is going to have an impact, i would imagine. I would imagine the chinese arent going to apply these. Are going to apply these. How is the u. S. Going to respond . Tom we are talking about a trade war was close to 500 billion of tariffs already in play. The billion, which is what wto has said china can impose on the u. S. , isnt going to move the macro dial. What it will do, i think, is strengthen the view in the United States that the current global trade system isnt working. As you know, the view in the Trump Administration is that the Playing Field is tipped very firmly in favor of the chinese. , who areave the wto setting and enforcing the rules on global trade, making a ruling in chinas favor. I am not sure this is going to have a huge impact on the u. S. China negotiations. What i think it could do is strengthen the u. S. View that unilateralism is the way forward. Vonnie you have to ask the question, if an administration doesnt recognize the legitimacy of an organization, doesnt really matter what the World Trade Organization decides about the u. S. . Will the u. S. Even pay this fine . Tom weve already seen very clearly from trump and lighthizer the concern that the wto is just not fit for purpose in a world where they see china as engaging in very abusive practices. Here we have the wto deciding the rights and wrongs in this particular case, ruling in kind of savior at a really critical moment. Wto underrt for the this of administration is already quite low. Following this, it can only drop further. What that means is a world in which the u. S. Engages in more bilateral trade disputes, and the chances of orderly wto facilitated, Multilateral Solutions to some of the big problems goes down further. Thanks very much indeed. Useful update. Tom orlik joining us from washington. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Traders bracing for swings in the rand as moodys, the only country still to assess south africa outside junk, is due to reassess its rating today. Joining us is bloombergs south africa chief. What would south africa do if they were to be a downgrade today with its credit . With able able to offer creditors would they be able to offer creditors some promise . Reporter a Credit Rating downgrade i the only remaining major Ratings Company to junk status of south africas Credit Rating would be catastrophic. It would be a very big negative, particularly for the rand. It would disqualify south africa from the world Government Bond index. The subsequent capital outflows, which are estimated at around 15 billion u. S. Dollars, could push the brand toward record peaks that we saw earlier this year billion. 15. 5 the south African ReserveBank Governor has said he feels that traders have already started pricing in a possible Credit Rating downgrade, so the ramifications may not be as big as anticipated. However, it would not be a good thing at all. That he feelsned that south africas Financial System could withstand a Credit Rating downgrade. However, we know that would really be bad for the country, done only for investor sentiment, but in general, especially as we know the country is battling to increase its economic growth, with the National Treasury saying it may only grow 0. 4 this year. Guy one of the biggest questions around all of this, why has it taken moodys so long to get to this point that it is prepared to downgrade south africa . Amo one thing for sure, moodys has given south africa more grace than others certainly have. Some say this is due to the darling relationship moodys has enjoyed under the 10 year former president nelson mandela, as well as another former president. A lot of Political Risk has weighed on investor sentiment, and slowing growth as well. We want to see what moodys will do later on this week. Analysts havent dissipated that moodys may change have anticipated that moodys may change its outlook. It would keep south africa on a positive Credit Rating at Investment Grade and would give a little more leeway to try and make sure they turn this economic picture. Mbatha, thank you very much indeed. Lets get another take on this. Peter kinsella, Union Bancaire privee global head of affect strategy, is with us. How would it if moodys downgrades how would the brand react if moodys downgrades . Peter this is been a long time coming. If you look at the data in south africa, its been deteriorating for quite some time. Normally when you hear stories about em countries put into a junk status, we expect x billion in outflows. It rarely ever happens because Portfolio Managers underweight whatever country it is and explain it away as a tracking error. We rarely see these huge capital outflows manifesting in the event of downgrades, so i dont think it is going to do an awful lot. You might see a little but of rand weakness, but it dont think it will be significant. Guy what does it tell us about where the rand is going more longterm . Clearly, south africa has huge fiscal problems. Eskom is a massive problem for it to resolve. The rand took a tumble earlier in the week on news surrounding eskom. They are struggling to find entrylevel jobs. They have a huge unappointed problem. This may be a statement to the obvious, but there is no vs sign of a turnaround for there is no obvious sign of a turnaround for sa at this moment. Peter i agree. It is very hard to make a positive argument for south africa at the moment. Indeed, since youve seen very large commodity price declines from a number of years ago, the economy has never really recovered from that. The trade surplus has not been fantastic. Inflation is somewhere between 4 to 6 , depending on the year. The overall trajectory wont be good. That is pretty clear. The central bank will never really raise rates aggressively enough to stabilize the rand or lead to appreciation, so we just see this constant gradual depreciation trend. Nothing weve seen is going to change that so far. Vonnie can we talk about argentina for a second . For now your to date, it is the worst currency performing against the u. S. Dollar. What happens to the argentina peso . Peter do we see defaults . It is pretty clear we get some kind of restructuring event later in the year. I would love to see negotiations go there with the new government. Regarding the peso itself, it is hard to make a reasonably constructive case even what inflation is doing in argentina. You are looking at a currency which is going to continue probably losing purchasing power over the longerterm. Theres definitely no big reason to buy the peso in any great numbers at this stage. My view basically is i definitely wouldnt be advising my customers to go buy the peso anytime soon. Vonnie what emergingmarket currencies are you favoring these days . Peter one i like a lot is the russian ruble at the moment. You got decent real Interest Rates, a central bank slowly cutting Interest Rates, but still giving a very nice real Interest Rate spread. In a world where youve got very low yields, anything of a real Interest Rate between 2 and 3 , investors are going to jump all over that. You have a huge current account surplus. The oil prices quite supportive. Next year we are likely to see Government Spending between 1 and 2 of gdp on fiscal programs. Theres an awful lot to like about the ruble, and i can easily see dollar ruble get to higher levels next year. Guy thank you for sticking around. Peter kinsella, Union Bancaire fx, isglobal head of sticking with us. This is bloomberg. Us. This is bloomberg. Taking u. S. Markets now risk on following the jobs report. Has 3000 sixtieths by oiled Higher Companies like apache. Negative like starbucks, down 2 . Then morning. , bouncing back. The european markets are trading positively. Back up today, after a session of around about 6 10 of 1 . The dax is trading higher. The payroll is the main catalyst. We are an hour away from the close. This is bloomberg. Lets check in on the bloomberg first word news. Has approved 3. 6 billion dollars and chinese trade sanctions on the u. S. The damage is the third highest in wto history. It is likely to add a layer of tension in the ongoing talks. The u. S. Labor market was unexpectedly resilient in october. Payrolls rose more than expected, and the governments revised september figure upward. The federales reserve indication that it will pause interestrate cuts. Chief economics advisor since he is working on tax cuts for the middle class. Republicans would like to draw comparisons with their democratic rivals for proposing tax hikes to pay for more services. Democratic president ial candidate Elizabeth Warren has fleshed out her medicare for all plan. The proposal would redirect most employerbased spending to the government. The plan would be paid for by imposing a wave of taxes on the wealthy. Plus defense funding would be cut. Global news, 24 hours a day on air and tiktoc on twitter powered by more than 2,700 journalists and analysts in over 120 countries. I am courtney donohoe. This is bloomberg. Guy thank you. Lets recap where we sit with the european markets right now. A positive session. Really like volume here in europe. We have had a few glitches. It is also all hallows at which we are seeing like volume. The markets are higher. The ftse 100 bouncing back, but down on the week. The last five days, the ftse down by half of 5 . Positive for the week. In terms of sector breakdown, we are seeing basic resources bouncing back strongly today. Heavily influenced yesterday by the poor pmi data we saw out of china. That is helping the ftse up by nearly 3 . Guy, stocks also higher today include chevron and exxon. Almost up, and exxon 3 . Both are reporting earnings before the open. Forecasting a gloomy 2020. For more on what we expect, lets bring in our guest. Are these companies not capex . Fernando for exxon, they cant. They spent a very long period investing in poor capital projects. They did a lot of heavy oil. When you look at the resource base, it was really poor. Steps to address that. But these products to 510 years to get to production. The Permian Basin is already growing at a fast pace, but they are years away from delivering Free Cash Flow. They have to keep investing so they can sustain at the very large dividend commitments that they have to their shareholders. Guy is there an opportunity for m a . Many of them are struggling as are some of the bigger integrated Companies Looking to gain access . Fernando they are. It is going to take a while because they have the means to wait for further stress in the sector. Not all of these players have the anchorage that is attractive enough for them to make a move. Chevron, the anadarko deal was attractive because they had acreage and you would give them space to grow faster and actual synergies in the development. Acreage,ve secondtier if you are in the outer plays, there is really not a lot of interest in acquiring you right now. They would rather wait for there to be more stress in the sector before making a new deal. I think you have learned from experiences when some of the majors bar early on. You do not want to catch a falling knife. You want to wait until you see a oil andg in the demand. Vonnie vivax, we are not sure what chevron will do buybacks, we are not sure what chevron will do. What do you see for the majors with buybacks . Fernando exxon cannot do buybacks right now. They are overspending because they need to catch up. They have a lot of projects that will start producing but will not generate Free Cash Flow until early to mid 2020. Phaseed phase ii and three to come online which is 2022 and 2023 for it to generate Free Cash Flow. A 20 24thly, it is 2024 to 2025 when they can reissue the vivax. Big concern ishe they are embarking on largescale development, and today they announced that their big project and cause extent had a cost of over 25 in a delay. That brings back a lot of bad memories from the 2010 period. Forink they stay the course now, but they have a really strong balance sheet, but i do not foresee any major inflections on their buyback. They have been more conservative than shell and some of the european companies. Will there be a portfolio effect once aramco lands . Fernando there certainly could be. Aramco, it does come fast and there will be some migration from energy investors, particularly from the majors, into aramco itself. It is such a large company. Even if it is just 10 stake, it is still very significant to capital markets. That could lead some of the flows away. Energy is not a particularly loved sector right now, so there is not a lot to go around. The one caveat to that is that , it is unlikely that you do not see an impact on the majors. Vonnie fernando, thank you. That is Fernando Valle of bloomberg intelligence. We will hear from House Speaker nancy pelosi on bloomberg tv and radio at the top of the hour in a few minutes. This after house lawmakers voted to move to the public phase of the inquiry into President Trump. For more we are joined now by marty schenker. We are in fact getting a headline crossing the bloomberg that pelosi expects public impeachment hearings to begin this month, and that is what i was going to ask you. What will the timeline be . Marty there was a considerable amount of interest after the vote yesterday on when exactly this public phase of the impeachment would begin. In this exchange with nancy pelosi today at bloomberg headquarters, she expressed the idea that it would be this month. She also stressed that it would be the committees call, but it was her thought that they would begin in november. Comment froming a the interviews from the House Speaker, she is describing u. S. M. C. A. As quote, the easiest to trade deal she sees. In some ways, does the Democratic Party not have to prove that congress can continue to deliver while this process is ongoing and is u. S. M. C. A. The example of that . Marty yes, it is. Donald trump is continually calling them the do nothing democrats which is kind of odd, given that they are doing the impeachment. Today and inhas the past expressed the great desire to show that the democrats can get legislation passed in consultation with President Trump on things like u. S. M. C. A. , drug pricing, and infrastructure. She stressed those three things today. Originally,now, nancy pelosi did not want any kind of impeachment proceedings. That has now changed. She is making get about the constitution and democracy and saying that republicans should be thankful, where previously, impeachment proceedings did not have any visibility for democrats or republicans. Marty i am sure that in the interview that will be shown in a few minutes, she gives a very impassioned defense for impeachment. That it is not about she stresses, it is not about politics. It is about principle. And that the constitution is the most important thing a Congress Must do is defend the constitution. They give an oath to do that, and that is what this impeachment proceeding is about. As she pointed out, and it is true, they have not yet decided whether to impeach the president. That is what these hearings are supposed to do. She also stressed that she wished it was bipartisan. Obviously, it has not been and was not. But she thinks it is still their obligation to press forward. Guy one of the questions i keep getting asked is will ukraine be enough, will the scope of this process just focus on ukraine or will he go beyond . Marty it is interesting. Itcy pelosi explained that was the phone call, the infamous phone call that turned her to changing her view on impeachment proceedings and allowing them to go forward. Because it is such a clear, to her, a clear violation of the constitution in terms of using your power to extort information on your arrival. On your rival. Myn if there is more, it is thought that it would have to be a very clear and easy to understand story for it to get combined into this impeachment proceeding. I think they are very comfortable with ukraine and ukraine alone as a way to move forward on impeachment. Vonnie i want to reiterate that an antipalouse, a day that speaker, has house told bloomberg that the public proceedings will start this month. She has said that there was no deadline. Could we see the first president ever to go through impeachment proceedings and then go through reelection . Marty it is quite possible. I do think that nancy pelosi wants these proceedings to move with all haste. She understands the complication of having a public impeachment proceeding in the middle of a president ial campaign. I do think there will be a tight deadline on this. If public hearings are done in november, if they wind up in december, you could get a resolution of this or at least a movement out of the house and into the senate before the first of the year. How is the president going to handle a reelection portion of this . Lets assume we are going through the impeachment process. How does this changes message . Does he believe with this ongoing key can expand his base, and if he does not, how does the double down . This is going to have a meaningful impact. Marty during the world series newgame 7, they launched a ad campaign very sophisticated and professional which cast donald trump as he is not the nicest guy, but look at all of the things he has accomplished. They are pivoting. I thought it was a very effective ad. Hink that Going Forward since it appears that the substance of what happened on the ukraine call is not going to of thermined by any testimony, he has to argue that it was not an Impeachable Offense and that his performance as president overrides anything that he did on that call. I think that is how he is going to position himself as the election season gets heated up in the next few months. Vonnie marty schenker, thank you for giving us the lowdown on what the House Speaker said. You do want to tune in for the entire interview that starts at 12 00 p. M. Eastern on bloomberg television. Balance of power, 4 00 p. M. London time. This is bloomberg. From london, i am guy johnson. Vonnie from new york, i am vonnie quinn. Time now for a bloomberg exclusive. Federal reserve vice chairman spoke with us just one hour after the jobs report. Saying the outlook was good but some risks do remain. We have characterized growth as moderate right now. The Global Economy has been slowing and that is a factor, but the u. S. Economy is resilient. These are good numbers. Both the gdp number and the labor market numbers surprised on the upside. That is a good thing. Numbers, are they politically acceptable to this nation, it is great for the economist are you to talk about 1. 9 , but is it politically acceptable . Richard i am not going to get into the politics. We have a dual mandate. We have made some adjustments and our policy rates, we think of they are, and we will continue to give significant support to the economy. Lets talk about the outlook and the balance of risk. How would you describe the balance of risk around the outlook . Richard for most of the year, the balance of risk as been tilted to the downside. We are a part of the Global Economy and we have a global slowdown. There is some pretty powerful global disinflationary pressures. We felt it was appropriate to make some adjustment in our policy to provide some insurance or cushion against a really a softening Global Economy. He saw that at the imf downgrading the global outlook. We think the economy is in a good place in monetary policy. Jon the balance of risk still tilted to the downside . Richard i would say somewhat, yes. An trying to understand what material reassessment of the outlook would be to reach that benchmark for another move. What is a material reassessment of the outlook . How much data does one need . Outlook the baseline is for ongoing continued growth, a very solid labor market, and inflation near our objective. Obviously, we saw accumulating evidence on employment and inflation that we were missing, and the growth needed to sustain , then we would have to factor that in. We will be datadependent. But our baseline outlook now is the policy is in a good place. Jon the next meeting is a live meeting . Richard every meeting is a live meeting. Jon how long does one need . Richard we meet eight times a year and if we need to, we had had meetings in between. We just take the data as it comes out. Data dependency is back and that was Federal Reserve vice chairman richard clarida. Guy our stock of the hour now. It is fitbit. Jumping. Does this mean that google is trying to go toe to toe with apple and take on the apple watch. It looks like a big ip play. Taylor riggs shows us more. Taylor usually competitive market and you see that in the share of fitbit. Mid2015 with around 20 a share. There is a lot of optimism that jumped to 50 a share and in the last two years, they have hanged twohanging out between dollars and five dollars a share. There is not a lot concerns within fitbit given that they are so heavily reliant on a tracker and yet most of the world in the wearables business has moved to incorporating the health care aspect of it. This is a company that his soul reliant on tracking devices and they are trying to make that shift as well in order to compete in the really competitive environment. I want to take a look at where fitbit fits. They have a 12 market share according to data that we have from gartner and idc. Maintain that, you could see sales rise to around 950 million unit sales around 7. 8 and that is not including heavy discounting. The Management Team is assuming about a 13 gain in units in 2019. Overall, the sector is rising about 25 percent. There is a lot of opportunity and one thing that fitbits really has going for it is average selling price of about 124. You can see the rest of the global wearables market, they have forecasts of raising two about 185. Fitbit has a lower selling price point as people look to transition perhaps into a lower end model. That is one thing they have going for them. Vonnie i think that is part of the answer here, but i am curious as to where fitbit would fit into googles hardware strategy more broadly. Taylor from googles perspective, this is a really market. Ive this is the way for them to diversify. We have shared over at the Bloomberg Opinion saying that this really shows how defensive google is being that they have to purchase Companies Like purchasing ip property from fossil in order to make some big gains in this business. Guy great work, thank you. Taylor riggs joining us from san francisco. Coming up, global battling. This is bloomberg. It is time now for our friday deal battle of the charts. You can see these charts on the bloomberg just running the function gtv. Taking us off at jessica summers. While i cannot ignore Hedge Fund Positioning in the oil market. In my charts, you can see these blue bars. They have been inching higher since midseptember. Now, nearing the peak back in january, this years peak, and that is as crude oil declines. We can really see that the main concern is that u. S. China trade war and how that may affect oil demand. Hedge funds are quite bearish. Inthe most recent data, wtni the bullish position, but hedge funds are bearish and it will take a lot to change their mind. You can find my chart on the bloomberg at gtv. Vonnie masterful performance from jessica summers. Guy . Guy the South African rand, the chart i have is the volatility spread. This is one week versus one month. What you can see is a significant spike in that relationship between the one threemonth and what this is signaling is that tonights review could indicate a volatility for the rand. This is where the focus is. Lets talk about what could happen later on. Lets say they finally get around to downgrading south africa to just now. The per folio portfolio effect probably will not be that massive. Yields are above brazil which tells me the market is already there. Where you are going to see some focus is in the rand channel. This is what we are signaling here. The market is anticipating we will see volatility tonight. We are likely to get that result in the next couple of hours. If you do see that downgrading, do not look for reaction in the bonds, but do look forward in the currency. Vonnie i am glad you mentioned that, because we were speaking with our johannesburg euro chi ef, so he will be looking out for that later on. Today is going to be a treat, so you both share the win today post halloween. Congratulations. Bloombergon television, House Speaker nancy pelosi joins balance of power with david westin. Have a listen to what she has to say on impeachment proceedings, the economy, and much, much more. And stick with guy johnson and europe for the european close. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. David from bloomberg World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Ofcome to a special edition balance of power where the world of politics meets the world of business. A short time ago, i sat down with House Speaker nancy pelosi covering the impeachment, the economy, the 2020 campaign and more. We will bring you parts of the interview, but first, we will start with todays jobs numbers 128,000 job g ain. Speaker pelosi while you make some indications that the economy may be improving, and god willing it is, in the lives of american workers, they still feel a stagnation of wages, stagnation of their opportunity. I think we have been having some i know we have been having constructive conversation about how we have an economy that works for everyone