Program two years ago, but lower courts blocked the move. Police in hong kong more the city is on the brink of a total breakdown. For a second day, they fired tear gas in the financial district and battle with protesters. Clashes continued late into tuesday evening. Protesters have called for more disruption to the citys Transit System on wednesday morning. While fires are burning at emergency level intensity across australias most populous state and into sydney suburbs. Authorities have warned most people in the path of the flames that there is no longer time to bleed. Flee. The world me a Logical Association classifies this as a , is atophic fire morning the top of the danger scale in australia, and probably anywhere. 10 of fireextreme days, how they measure the fire increased in recent decades across many regions of australia, especially in southern and eastern australia. Mark she adds it has been the second warmest january to october on record for australia as a whole. She notes these are records going back 110 years. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Shery live from bloomberg World Headquarters in new york, im shery on. Live in toronto, i am amber kanwar. We are now joined by our bloomberg and bnn bloomberg audiences. Shery here are the top stories we are following from around the world. President trump wrapping a speech minutes ago, telling the Economic Club of new york that his policies have generated an economic boom. We get the wall street takeaway. Helping to finance institute 3 acquisition and what will likely be the largest bond sale this year. The wall street squeeze, thanks across we will have the download. Amber it is amazing we are talking about the shrinking bonuses at a time when a check in on the major markets, we have a trifecta of alltime highs or the s p, the dow, and the nasdaq, as investors breathed a sigh believe that there was not anything too harsh in terms of rhetoric when it comes to u. S. China trade. Although for the Federal Reserve, thats a different story. We will dig into that. Also taking a look at marijuana producer kronos. Investors have been trying to figure out what to do with this all day as they missed revenue and profit expectations. It was initially up, now down about 2 . The past year,r its lost a tremendous a lot of value as investors focus on where are the profits coming from for the sector. The company saying it may just be the u. S. , even if it is a canadian marijuana producer. It is going big into the u. S. With a line of cbd products. Shery those Companies Reporting this week but most earnings now out of the way. The focus has shifted to the trade headlines, not to mention what President Trump says or tweets. This afternoon, he said the Federal Reserve was far too slow in cutting rates, something he has repeated in the past. At the moment, we see those probabilities of a recession, according to the bloomberg index, receding, below 30 . Anything above that mark would signal a recession in the next year. Also far lower than earlier this year in january when it was much higher and popped above that 30 level. Going back to the speech by President Trump, he hinted at progress in china, trade discussions, and also criticized the fed over the pace of rate cuts. For more on the remarks, lets bring in shawn donnan who covers trade in washington. Did you hear anything new when it comes to the trade front, other than those hawkish remarks on china, but at the same time, leaving the possibility open for that phase one deal . Shawn if you look very, very of the what was a tour greatest hits in terms of Economic Policy in the trump administration, you may be got a hint on progress on the trade talks, but we didnt get any news in the markets of people in or, markets were hoping f an announcement of a signing date, for example, for he and xi jinping to meet. Also, interestingly, no news on auto tariffs. He has a deadline tomorrow before which he has to decide whether to go ahead with auto tariffs on parts and cars from the European Union. That is a big deal as well. We are hearing that will be put off for another six months. That is the expectation, but President Trump not addressing that. This was very light on news when it comes to trade. The markets do not seem overly excited about that. They didnt really budge much during the speech, and that tells you we got more of the same. Amber that is a good point, more of the same, but we are also looking at the markets close to or at alltime highs. Good it be that a lot of that trade progress is already priced in, as investors and Companies Look to get through the noise, so they can get back to the day to day of running their businesses or portfolios . Shawn one of the most interesting parts of the speech came in the question and answer session at her, when he was asked about how he felt about essentially complaints from business that his trade wars were creating a lot of uncertainty in the u. S. And global economy. The kind of dismissed that idea of uncertainty as a drag on anything and said, i am taking on china, that is when i need to do. He also in the second question dismissed the idea that history policy was causing any rift th ere. Of course, his trade policy is causing the risk out there. Any winding in this tenuous truce we have now, we would expect to cause a fairly hard reaction in markets that have been bolstered by this idea that we are not going to see any further escalation in the trade wars, and that we may get at least a few months of peace. Shery we had a media report today that we could see the eu auto tariff report coming from the trade representative. Did we hear anything from the president on the European Union . Shawn he repeated a line from before, that the European Union, in some of its trade barriers are worse than china. We have heard the president say that a number of times over the past few years. He did not address the issue of auto tariffs. That report from ustr is really a procedural one going to the white house. Office is asked to report on progress in negotiations as part of the process of considering these auto tariffs. The fact that it is going to the white house is entirely expect it. It does not tell us anything new about a decision. We are hearing close to the people in the administration. They say the most likely scenario is a delay possibly for another six months of these auto tariffs. Remember, there is a new European Commission coming in in brussels. In some ways, trump does not have anyone to negotiate on trade with the eu right now, and that is something that the folks in the white house are conscious of. Thanks so much to shawn donnan, reporting in washington. Lets get some market perspective on the president s remarks. Joining us is the chief marketing strategist at riverfront investment group, kevin nicholson. It looks like with the markets at alltime high territory, at the very least, investors did not see anything to get in the way of what has been a drift higher. Kevin thats correct. Theyone has stated president didnt really add anything to the conversation today. Markets have priced a lot of the trade already in. We have seen it break through what was 3000 overhead resistance. Now you are up at 3100 territory. You may get the santa claus rally here, but it will be a tough go the rest of the way. Because we have rallied so much this year. Shery listen to what president said again on the Federal Reserve. Competingp we are against these other countries nonetheless, and the Federal Reserve does not let us play at that game. At a competitive disadvantage to other countries. Shery first of all, what do you make of his remarks . Also, adding to that the fact that perhaps the markets have already priced in all of the potential easing that could come from the fed. Kevin one of the reasons the president was so adamant talking about the feds he wanted a weaker dollar. That was hurting him. And what his policies were trying to do. When you think about him talking about the fed, that we were at a disadvantage by not having negative rates, i would totally disagree. Our banks are healthy in the u. S. When you look overseas in europe, the banks are struggling. The reason for it is because they had to paid to deposit their money. Banks grow from their depositors. They are having to pay to put their money with them. That is not a sustainable platform. That is why you are now starting to see european banks starting to pass some of those charges, fees across to their clientele. Here in the u. S. , we have strong banks. Shery will we see market pressure, now that they have priced in the fed easing, and a looks like we are permanently on hold, or hikes could be coming in the near future . Kevin i dont think any hikes are coming in the near future. The fed is very accommodative. They cut three times this year when we did not need to. We have been seeing for some time, the u. S. Is the best house in a bad global neighborhood. Helped ustually along, helped risk assets by cutting as much as they did. These were insurance cuts, they were not necessary at all. Amber lets put all this together. The fed is not getting in your way. Trade, at least today, is not a headwind it has been. Next 10 you see the move on the s p 500, up or down . Probablywould say 10 closer to down. The reason i say that, i think the s p has gotten ahead of itself, i think the markets have gotten a little bit ahead of themselves. When you look at forward earnings for 2020 at about 127. 20, you put an 18 multiple on that, that gets you to about 31. 90. I dont see the investment going on in the u. S. Right now to justify multiples any higher than that. Over the last year, we have treated in this range of 16. 5 to 17. 5 multiples. There needs to be a catalyst. What we are seeing from our ceos, cfos, because of the trade they had been disinterested in investing. I just dont see where the catalyst is to get us another 10 . Amber which sectors do you think are most vulnerable than on that measure . Kevin i think it will just depend on who wins the election. Some people think if warren win s, financials will come under scrutiny because of more regulation. Health care will be under attack. It all depends on how the 2020 election goes, will depend on what sectors will be winners or losers. Shery kevin nicholson, thank you. Joining us from riverfront investment group. Fed chair jay powell will be addressing the u. S. Congressional joint Economic Committee tomorrow at 11 00 new york time. We will bring that to you live as it happens. Coming up in the details on the largest on sale this year as abbvie announcing it will sell 30 billion of debt to purchase its fund its purchase of allergan. This is bloomberg. Shery this is bloomberg markets. Im shery ahn in new york. Amber im amber kanwar in toronto. Is selling what could be 30 billion worth of bonds to finance its acquisition of allergan. It could be the largest on sale in 2019. The drugmaker is capitalizing on some of the cheapest borrowing costs of the year. For more, lets bring in molly smith. Lets talk about the bond Market Conditions that are making this such an attractive offer for investors. Bloomberg reporting this is a deal that has attracted more than 70 billion in orders. Molly thats right, and we found out the deal has launched at a size of 30 billion, so all of than the 20 billion we were expecting, which shows you what a great environment this is for funding right now. Abbvie leading the calendar today with the biggest deal of the year. That will be the fourth largest of all time. It is not just in Investment Grade and highyield. We are seeing 10 new deals announced today, but most are opportunistic refinancing, because borrowing costs have been so cheap. Shery that is what i was going to ask. Listen to the ceo of al again about how this make sense for them. Kind of a tale of two different stories, but size will matter in r d, having the ability to take these expensive but important bets will be really important to the strategy of the combined company. Shery when you mention all of this corporate issuance, does all of it makes sense . One, this the abbvie is m a issuance, something that we have been expect in. We saw that one on the calendar. The highyield ones, definitely taking advantage of the current borrowing cost environment, spreads are low, grinding tighter. Makes sense for highyield companies to come forward if they can. Has the appetite for investors been across the credit spectrum . Have you found that companies that are higher quite quality are more readily able to take advantage of these lower rates than the junk your names . Or is it anything goes . People want some sort of yield in this environment. Molly shery the u. S. Banking industry enjoyed a record Third Quarter with revenue or the six largest firms climbing for the 12 time in 13 quarters. Those healthy results will be showing up in the paychecks of the rankandfile this year. According to one report, bonuses across wall street are set to drop with traders bearing the worst. Our finance reporter is here with the story. Traders bearing the worst . Tell us, who is doing relatively better this year . Doing better this year we have the hedge funds and private equity. Investment banking advisors. M a advisory. That one, the survey caution would be across the board. Private equity and hedge fund, there is a lot of capital there. Private equity is everywhere. That is why that is outperforming the rest of the sectors. The worst is equity. Equity traders. All your we have seen big street decisions being made across the aboutanks, globally banks what they are doing in equities business. The has been a big question m ark. Bonuses could fall as much as 15 . The bright if you are getting a bonus, you are getting a bonus and you have a job. Shery you are not getting laid off. Is alsoechnology changing a lot of those businesses. I wonder to what extent those businesses are choosing to invest in technology over talent through bonuses. Hannah thats an interesting question, touches on one of the big things that we were talking about. We have this series of record revenue quarters, and a lot of that was driven by Interest Rates. Now Interest Rates have been falling. The banks have been investing billions in tech along the way but now we are looking at cost cuts as the bigger story as they try to keep profits up. Headcount is a big area where you can make those cost cuts. Shery what are we watching next year, what is the outlook . Hannah this consultancy said it would probably be worse next year than this year. We would have to look beyond 2020 for a bright spot. Given how things are going right now with Interest Rates, and also signs of economic slowdown. Thank you so much for joining us, hannah levitt. That does it for us. From new york and toronto, remember, you can indirect with all the charts that you saw on the show. Just use gtv. Thanks for watching. When it comes to using data, everyone is different. Which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. I am Mark Crumpton with bloombergs first word news. President trump delivered his speech on the economy at the Economic Club of new york. He said his administration is making progress towards completing a significant phase one trade deal with china. Pres. Trump they are dying to make a deal. We are the ones that are deciding whether we want to make a deal. We are close. A significant phase one trade deal with china could happen. It could happen soon. But we will only accept a deal if it is good for the United States, our workers, and are great companies. Mark the president added that if washington and beijing do not reach a trade agreement, United States will substantially raise tariffs on china. Former president jimmy carter recovering from surgery this morning to relieve pressure on his brain. Mr. Carter has fallen at least three times this year. He is 95 years old. In spain,