Earlier. Still up quite substantially. Applied materials, essentially an earnings story, but having an impact more broadly only semis as well. Guy in europe this friday afternoon, european stocks broadly higher on the trade narratives. You can certainly see that in the sector breakdown. Volume is a little light. The pound rising, but the dollar on the back foot this afternoon. Again, the trade narrative feeding into that fx channel. When it comes to the bond market, a little bit of a selloff. We are seeing yields getting a little bit of a lift when it comes to the german tenyear. This week, we are actually moving lower on yields. Bonds in europe, at least at the core, beginning a little but of traction. Trade evidently the narrative this friday afternoon in europe and in the morning in the united states. Stocks rising. White house Economic Advisor larry kudlow saying earlier that the u. S. And china talk everyday , and is now down to the short strokes when it comes to getting that deal. We are joined by jeremy stretch, fx. Head of g10 how long do using the market is prepared to wait . We have been risk on. We have been feeling better about the world. That certainly has been a story we can see in the equity markets. The dollar is a little lower today. How much longer will this patients last . Jeremy you are right. It is a bit like waiting for good a like waiting for godot. We are waiting for the details. The crux of that, how long is this patients going to last . I think the markets are still intrinsically hopeful there will be some traits of hopeful there will be some trade resolution. Political risk for the white house in terms of impeachment hearings, and for china in terms of the uncertainties in hong kong. It makes the narrative a little stronger that it is an official for both sides to get to this resolution, so i think we can and will see this patients patience this extend a little further. Guy at that point, do we start to price in further policy actions . The fed is on the sidelines right now. If we dont get a deal by the end of this quarter, does the fed get put back on the table . The chinese data a pretty weak right now. The chinese dont seem to want to commit to a big stimulus package. If this trade deal carries on and the data continued to get worse, are they going to continue to do so . We would get a policy response if we dont get a trade deal . Jeremy thats the question the market will be asking. That time sensitivity will start to translate and transmit itself into pressure on the Federal Reserve. We heard from the Federal Reserve chair through the course of the last couple of days saying that he things the economy is in a good place. Is relativelyy appropriate. If there is going to be that negativity starting to come back into the trade side, i think that will be starting to be tested by the market once again, and we will start to see that market pressure starting to build into the early part of 2020. If we arent going to see that sort of impetus coming back from the trade side, then we are going to need some additional artificial support. Vonnie and that is the problem with this type of waiting. Time passes, but its not like there are no detrimental effects. The are many, and they get worse as time goes on. Jeremy yes, that is true. What we are seeing is that the data is generally of a subdued nature. We can argue whether we are nearer the trough of this particular cycle than perhaps a couple of months ago, but it is still the case that the longer we wait, the greater the uncertainty starts to become. If that uncertainty starts to be reflected in terms of the Consumer Sector and we start to see consumers becoming a little more precautionary in terms of their outlooks because of the externalities and externality risks, that mixed the policy spectrum more of a difficult balancing act for the monetary authorities as we move into 2020. Vonnie why has there not been more of an impact on the dollar one way or another as time goes on . Do you anticipate at some point that there might be a major move in the dollar . Jeremy i think if you think ,bout the major currency terms weve got influences on both sides. So in a sense, you are having that slow down and deceleration risk in the u. S. Side of the equation. But of course, you are also seeing the euro zone economy disproportionately impacted next to trade headwinds. Thats one of the reasons why perhaps we havent seen the dollar suffering, even though weve been going through this trade uncertainty. Of course, we have seen an environment over the last few months where that sphere of negative assets has only grown ofr negative assets has only grown ever larger, and the distinction between assets yielding positive returns in terms of u. S. Treasuries to that sphere of negative yielding assets in europe has prevented the dollar from generally being under pressure despite the political uncertainties and the slowdown in the u. S. Micro story. Guy can we talk about what is happening in hong kong and fold betrayed story into it . There are all moving parts around the same narrative. Yuanis priced into the right now with hong kong . Do we worry, if things get worse, it can impact the trade story, and therefore the currency . Jeremy if the hong kong situation gets worse, and we clearly hope it does not, but if it does get worse, you then started to the about the issues about capital flight and capital leakage, and start to translate that into investor uncertainties as it regards the mainland as well. Then it becomes much more difficult in terms of the narrative about that trade discussion to actually come to a manageable and successful resolution if there were perceived to be greater risks in terms of the Chinesehong Kong trade relationship. There is and will continue to be additional uncertainties. If we see that reflected in terms of increased Political Risks, we way well we may well start to see the chinese currency come back under pressure. Vonnie how big a guy how big a risk is the hong kong situation to the trade war . You have to wonder how much is priced in. At the moment it does not feel like that much. Jeremy i think markets are thinking that hong kong is the next thing we are watching, and it is an awful human story in terms of guy but if the chinese go jeremy if the chinese were perceived to be going in in a bellicose nature, it will be difficult in terms of the perception of the International Community to maintain that sort of narrative of saying, well, you can continue those trade negotiations from the u. S. Side of the equation, and that would perhaps start to diminish the hope for recovery in terms of 2020l macro impetus into based on improvement in the global trade backdrop. Vonnie give us some of your forecast for the dollar and the euro my and also the british pound. Jeremy for the euro, i think we were in a scenario where we should see gradual appreciation over the next three to six months, and through the course of 2020. So i think we can and should see eurodollar rallying backup to the second half of next year as the trade tensions should die down enough where we start to see slightly more beneficial euro zone trade stories. The brexit narrative i think plays into that to an extent. If we can and do see a conservative majority government in the upcoming election, i think that will provide a slightly more constructive backdrop for sterling, so i think we can see sterling trading back into the mid1. 30s. That is a better tray narrative for the eurozone because that is one of the overarching issues of negativity. From the broader u. S. Dollar story, we see a graduate depreciation through the course next year. I think investors will start to go a little more mindful of the ensuing Political Risk because we are now one year away from the president ial election. He continued to see that fiscal imbalance started to build. Interestingly, as we start to see the fed Balance Sheet expanding to deal with some of those structural issues weve seen, it may well prove to be the case that we start to see increasing or extensive dollar liquidity into next year, which will also weigh on performance. We will talk more about this in just a moment. We will come back to the pound as well. Jeremy stretch, g10 fx strategy with cibc my is going to stay with us. Vonnie but get to blow but lets get to Global Markets now is kailey leinz. Kailey the s p 500 0. 6 , the sox index the outperform her. The news looks a little better today with larry kudlow saying the u. S. And china are inching closer to that phase i trade deal. Semis being affected by positive earnings for materials. The s p 500 move sets it up for its sixth consecutive weekly gain. If we put that into context, that would be the longest such winning streak in two years. It also puts that index on pace for its third best year since 1999. As for the micro story, take a look at some retailers overlaying the entire consumer erie the entire Consumer Discretionary sector. Fallugh Clothing Sales did a bit, we are looking at some positive movers today, starting with jcpenney. , andsales disappointing adding to some optimism that hold,s that is taking that is also getting a lift to macys. Restoration hardware, vonnie mentioned this at the start of the show, up 6. 5 as Warren Buffett makes a stake in that company. Finally, some other assets that are also getting a lift on trade today. Of course, a potential deal with china could mean better global growth, which could mean better commodities. Youre seeing oil up by the better part of 1 . You also have copper and steel higher, and soybeans up 0. 4 . As we know, agriculture is front and center in the potential trade deal. Vonnie we were literally just talking about it. Kailey leinz, thank you for that. All of you out there, remember g tv allows you to browse all of the recent charts featured on bloomberg tv. Save your favorites for future reference. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on bloomberg markets. Lets check in on the bluebird first word news with courtney bloomberg first word news with courtney donohoe. Tney Marie Jovanovich testified today marie yovanov the testified today in impeachment hearing. She lacks direct knowledge of the call between President Trump and ukraines president. The white house Economic Advisor says negotiations for an interim trade deal with china are down to the final stages. Larry kudlow told reporters a deal is close, but not done yet. Bloomberg has learned that in recent days, talks have focused on issues ranging from chinese purchases of u. S. Farm products to theft of intellectual property. In southern california, investigators are trying to determine why a 16yearold boy pulled out a gun and opened fire in a crowded schoolyard. Two students were killed, three wounded before the shooter turned the gun on himself. He is in critical condition. U. S. Retail sales rebounded more than estimated last month, but details showed that Consumer Spending is cooling. Auto dealers and gas stations led the way. There were declines in clothing and furniture stores. 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. Im courtney donohoe. This is bloomberg. Guy a bit of breaking news coming through on shell. Said to have made 1 billion in profit from trading fuel oil this year. This is part of the big shift we have seen in the shipping industry to more fuelefficient, more higher environmental standard fuels, and shall has clearly been one of the and ell is clearly one of the beneficiaries. It does not seem to be reacting majorly to this story. Shell set to make 1 billion of profit selling fuel oil over this year. Vonnie we are back with jeremy stretch, cibc head of g10 fx strategy. There was a gala dinner this week in new york. Ray dalio was one of the speakers, and he talked about something that is quite war betweenapital the u. S. And china. Have a listen. Ray there is a trade war area there is a technology war. There is a geopolitical war. And the could be capital wars. That is the nature of the environment. How that is approached is going to determine what our futures are like. Vonnie when somebody like ray dalio says that, and clearly he has quite the record to say the least in finance, how seriously do you take it . Do you believe it is true, that there might be capital wars . Jeremy you are right, one has to take what he says with a degree of credence, and certainly consider the potential ramifications of that. I think that is a realistic backdrop in the sense that it is something that has been framing the backdrop of some of the trade negotiations, and some of the thorny issues with relation to ip theft, for example, because that is an example of china trying to shortcircuit some of their economic advancements. In a world wind there are, on occasion, a degree of scarcity for capital, there could well be issues in that regard going forward. Of course, we should never lose sight of the fact that when you look at those Chinese ForeignExchange Reserves and the holdings of u. S. Treasuries that china holds, it also is very much the case that they are a key arbiter in terms of the Global Capital spectrum already, and there may well be further changes in terms of that dynamic as we go forward. Guy another aspect of the changes we are seeing in the global trade story is brexit. We are going to talk later on about the labour partys latest announcement that it is going to nationalize the Broadband Network in the u. K. Are you surprised that the pound is trading at is trading as it is at the moment, given the risk that the labour party could pose to the british economy . My thought is that the expectation for the Foreign Exchange market is that Boris Johnson is going to win this election. Nigel farage is backing off, and almost complete lead discounting the possibility that the labour party is going to deliver anything meaningful. Is that a little bit of an overstretch . Jeremy you have to revert to remember that the u. K. Voter has had plenty of chances to cast ballots over the last four years , but i think it is fascinating when you listen to some of the key pollsters. Sir john curtis is one of the leading proponents of reading the polling data and trying to interpret that into the underlying dynamics. He has been talking about it is incredibly unlikely, if not impossible, to see a Labour Party Majority in the upcoming election. If you look at the way the betty markets are playing out the betting markets are playing out, we are continuing to see money move toward the assumption of a conservative majority. We have seen that building over the course of the last four or five sessions. Thats been backed by the opinion polls, which are generally pointing to leads of doubledigit nature. There are some outliers to that. If you build all of those various components together, than the market is certainly saying it believes with an increasing degree of confidence that we are lightly to see a conservative victory come to summer 12th, with a small but 12, with a december small but not immodest majority. That will lead to parliamentary passage of the withdrawal process through january, and starting at negotiation in terms of free trade remits free trade arrangements subsequent to that. Vonnie what have you learned since that summer of 2016 thats new . Jeremy in the context of sterling, you have to remember that Political Risk has clearly been the preeminent factor. It is fascinating in the context of this week that we are seeing Sterling Holding up relatively well despite the macro data continuing to point in the opposite direction. I think it is very much a case of the political dynamics proven to be front and center in terms of the performance of sterling in the current environment, and i think that has been something which is been very evident in the context of what we have seen since the vote in 2016, but also, i think we should also learn the lessons that the voters have been giving the markets on occasion in terms of their outcome, so absolutely the market is increasingly confident about the result of this upcoming election, but we shouldnt be too confident at this particular stage. I think thats why a number of investors are still being a little cautious and may be continuing to play the prospect of that conservative victory via the options spectrum rather than necessarily putting on aggressive spot positions at this point. Guy christine lagarde, ecb president , is going to deliver her first major policy speech next thursday. If true to form, she will speak about fiscal policy. Will the euro go up without germany delivering fiscal policy . Is that the missing ingredient to get the single currency moving to the upside . Jeremy i think there are two ways you can be optimistic on the euro going to 2020. One is a resolution on the trade side because, of course, the German Economy is uniquely exposed to exports within its gdp component. There have been two factors holding back that expert sector, the china trade dynamics and the brexit process. If you see in easing in both of those components, that will provide the euro with a more stimulatory environment. The other side of the coin is the fact that we are getting to a scenario where the efficacy of the unconventional get deposit rate story is becoming increasingly questioned. German savers are continuing to or adding to the uncertainties in the broader dynamic. I think the ecb is going to require a subtle change in terms of german fiscal policy in order to facilitate the other leg in terms of a euro recovery story. That is ironically why the avoidance of a technical recession this week was probably not necessarily quite helpful germany and the euro because it reduced some of that political discipline to try and encourage the german policymakers to consider some degree of stimulus ahead. Guy it is interesting the way the data came out. Stretch,ee you, jeremy the head of g10 fx strategy joining us from cibc. This is bloomberg. Vonnie we are seeing a nice bounce this morning. The major indices up about 0. 5 apiece. The nasdaq a little more, primarily on applied materials. A little bit more muted for the vix today. Guy we are less than four minutes away from the end of trading in europe. The ftse 100 is fairly flat, but the pound up today. The dax is up by 0. 4 . Cac 40 is one of the majors leading the charge, up by 0. 6 . The european close is next. This is bloomberg. Guy 30 seconds until the end of regular trading this friday afternoon in europe. That is what the picture looks like. We are higher. Volume is lighter. The market is flat. Lets talk about the week that was. We have gone absolutely nowhere here in europe this week. This is the stoxx 600 over the week. As you can see, we are up less than. 1 . The week before felt more positive. Language as we talk more positively about the trade deal. This week the trade narrative has started to fade. Bonds have regained traction, equities have gone nowhere. If you take a look, the bond market has gone up. Im talking about the german bond market. Stocks have gone sideways. The pound has gone up. The dax is up. 4 . We are still wondering whether we will get auto tariffs out of the united states. The cac 40 is up. 6 . I have changed the grr function. To give you an idea of what is happening throughout the week and what has been happening with the stocks. It is definitely risk off. Real estate doing well. Food and beverage doing well. Industrials more mixed. The more bond proxy you are, the better you have done. Health care is up. 5 . The bottom end of the market, it has been the stocks that have done well on the back of the idea we would get the trade narrative resolved. The trade narrative gets resolved, european economy does better, the German Economy does better, and as a result, the banks do better. That was the story the previous week. This week that fades. A similar story for the car sector. The car down 1. 97 . The banks down 1. 7 . The mining stocks geared toward what is happening in the trade story, also trading down 1. 7 . Those are the three classic freight related sectors classic trade related sectors that in the previous week did well but this week the market fades that move. We will talk more about British Telecom bt and just a moment. Getting a new boss. One of the stories were focusing on. They are significantly increasing their investment in technology. While the auto sector has been down, vw bouncing back, up 1. 73 . Credit suisse, bonuses look like they will be cut in the bank is moving capital to more productive areas. That news coming through this afternoon. 1. 7 for Credit Suisse. The nordics, the bank taking another bank it the banks taking another bashing. This is on money laundering. We will see tv reports relating to seb, down 12. 31 . Seb down, brett Credit Suisse carry more weight. Vw up 1. 73 . That wraps up the week in europe. Vonnie here the general tone in the market is calm. We have a nice bounce going on in the major indices. We have the s p 500 at a 31. 15 to finish off the week a 3115 to finish off the week. We also have the 10 year yield at 1. 83, down from 1. 94 last week. The dollar Index Holding fast around the 98 mark. The offshore remember the trading at seven on the nose. It is rumblings out of washington on trade, positive, negative not either way, to be honest. Wilbur ross telling fox there has to be something worked out about agricultural purchases and larry kudlow saying we are into the short game part of the thing. We will see. We are not anywhere. This is the stoxx 600. You are telling us about that. If we look into the s p 500, you will see some of the bestperforming stops are things like danner her. The split off with the vista. In terms of some of the more negative stocks, it is the likes of centerpoint. We will have a look into the terminal and a moment to have a look at those. Guy another look at the european story. Seb at the bottom of that chart. Lets look at the u. K. Politics. The later cardi the Labour Party PeterJeremy Corbyn pledging free highspeed broadband for everybody. It is called open reach. Partly paying for the proposal with taxes on Tech Companies including facebook and google. This is the party most striking move as the Election Campaign continues. Joining us to discuss all of that is bloomberg opinions alex webb. Alex i think we will get lemonade next. It is election nearing. It sounds good on the stump. We will give you free broadband. It is hard to implement in an effective way. It is more likely to slow down the pace of broadband rollout rather than increase it. Vonnie if they slow it down, labor rules say that is the short term. Ultimately it would do more people more good. Alex ultimately, the pace of the broadband rollout or fiber rollout is what is important. It is not really about ordinary using the internet for netflix or gaming. It is about business getting internet at high speed, particularly in the regions. It will take two years, ive seen estimates of up to five years to get the nationalization process through. In that timeframe, you can will fall onappers investing in this infrastructure. Then all of a sudden, having already been behind much of much of the oecd or g20 in the space, we have been even further behind. The kind of expenditure needed is colossal. They are talking about adding 15 billion. You will also have to spend 15 billion at the least to take the relevant bids of bt private. You with that also have a lost revenue. This will be free to people in theory, which would not offset some of those costs and the way it is doing for bp. The way they are talking about funding is on the one hand giving investors gilts, and if you are a bt investor, are you going to want to sacrifice that for 1 gilt yield, or by taxing big tech. We will have agreeing to new tax norms. Guy is the focus on fiber the correct one right now . 5g is coming. It will be quite quick. Her most people going to benefit more from the investments in 5g than they are in fiber . Alex the two go together. 5g on the antenna. What feeds the antenna . Fiber. You probably do not need it every single household because you will have in one street one 5g antenna which can feed every house in the neighborhood. Do not need to pipe it into every household. It becomes something of eight moved debate in some part of russia become something of a it become something of a moot debate. You have accelerated subsidies to get the final 20 , places like the countryside where my parents live. It is the kind of places where there is not a brilliant financial incentive to roll things out, but a little bit of one. It is trying to accelerate that but there are far better ways of doing it, not least by reducing Business Rates for how much you have to pay to install this stuff. To see how more of this we get. Alex webb from bloomberg opinion. What from veteran of Diplomatic Affairs testifying and laying out publicly for the first time in her own words that she feels new york city mayor rudy giuliani, President Trumps personal attorney was running a shadow state department, and that led to her ousting by President Trump last may. That ousting came just ahead of the july phone call between President Trump and ukraine president zelinski in which democrats are arguing the president withheld or linked 400 million of military aid in order to prompt the ukrainians to look into former Vice President joe biden and his son hunter biden. Republicans pushing back against that characterization. President trump within the last halfhour also tweeting out against the notion he has not been filling any of the positions at the state department or around the world. He tweeted we have vacancies at various departments because we do not want or need as many people as past administrations. Also the democrats delayed the approval process to levels unprecedented in the history of our country. We should note this is just the second round of hearings that are being made public. After this hearing wraps up within the next couple of hours, the members of the House Intelligence Committee are going to gather behind closed doors to hear testimony from david holmes. He is the individual who allegedly witnessed the conversation between President Trump and gordon sondland, the ambassador to the european union, in which the president asked, reportedly, for there to be an update on the investigations of President Trump into the bidens. All of this comes following the first round of testimony. It is a signal. , can thethe House Democrats convict the president if the public hearings are only focusing on people who do not have firsthand experience of these calls . Is secondhand information enough . Is thirdhand information enough . Kevin no. That is what every senior republican source to the key lawmakers in the senate, who the democrats need to convince in order to convict for impeachment, should it get to that point, those are the people they need to convince. Right now they are not there. Right now you are hearing from people like senator lindsey graham, who has been quite critical of the president s foreign policy, most recently on his policy with turkey and syria. That said, they feel this is being characterized as a political game of telephone, of thirdhand accounts and thirdhand information. That is why david holmes testimony will prove to be so crucial to democrats because he is reportedly the individual who directly heard that conversation. That said, he was not the individual on the call. That is something republican sources have consistently maintained. This amounts to nothing more than a political game of telephone. Democrats pushed back against that notion. They feel this was a quid pro quo or a bribery to get a foreign power to look into and investigate into a domestic political affair in the u. S. Vonnie Kevin Cirilli on capitol hill for us. Thank you. A reminder you can watch these hearings on live on your bloomberg. Guy we are done for the week in europe. We are through the auction process. We have settled. Final numbers higher, but not much. The london market being dragged lower by the fact that the pound went up. The cac 40 up a little bit more than the decks. If you want to carry then the dax. If you want to carry on coverage , the cable show on Bloomberg Radio takes to the air at the top of the hour. Live on dab Digital Radio and around the world on all of your bloomberg devices. This is bloomberg. Vonnie live from new york, i am vonnie quinn. Guy from london, i am guy johnson. This is european close on bloomberg markets. Lets check in on bloomberg first word news with courtney donohoe. Courtney the u. S. Is close to the first phase of a trade deal with china, but it is not a done deal yet. Larry kudlow told reporters last night we are coming down to the short strokes. The two sides have been holding working level videoconferences. Among the issues, the chinese purchase of American Farm products and the theft of intellectual property. A month of protests have taken their toll on hong kong. The city is forecasting its first annual recession since the Global Financial crisis. The government said the gdp will contract in 2019 last year. The grim outlook is in line with what is visible in hong kong streets. Shopping malls, stores, and restaurants are closed or have shorter hours. The iea predicts Global Oil Markets are likely to remain calm next year. The agency said foreign production outside of opec and high inventories will keep consumer supplied. Nonopec supplies are expected to rise by 2. 3 Million Barrels today in 2020. Get ready forl, some heavy duty suspension. At the end of the game last night, Clevelands Myles Garrett ripped the helmet off of pit sports pittsburghs quarterback randolph. Admittedetts teammate garrett is likely to be suspended. No word on when we will hear from the nfl. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Donohoe. Tney this is bloomberg. Guy lets go to vonnie. Vonnie breaking coming out on the bloomberg. In thetone found guilty u. S. Trial overlies about the 2016 leaks. It grew out of Robert Muellers report into russian meddling in the election. Roger stone is guilty in the trial overlies about the 2016 leaks. The verdict makes stone the latest of President Trumps aides to face prison. He may go to prison. A separate breaking news, there is news about wework. Wework is said to be facing in sec inquiry into possible role breaches. An investigation into whether we work violated financial rules in the run up to its ipo. Breaking news there. Guy at this point it is not clear whether we will go to a full sec inquiry. That is worth pointing out. In some ways, given the sound and fury around the story, it is understandable that the sec is taking a look at what happened there. Lets shift gears. We may come back to that story in a moment with extra reporting. Has emerged mayor as a significant figure in turkish politics after he won the original and the redo of the his temple mayoral vote in june. He won the latter by a landslide, defeating the candidates of president erdogan s party. He is now seen as a potential contender for the next president ial race which is set for 2023. I asked him last night about his future political plans and if he has aspirations for that top job. Now, i am the mayor of the most beautiful city in the world. One of the biggest cities in the world. All i have on my mind is become successful and the most democratic mayor of the world. I want to contribute to the city spirit by introducing transparency and inclusiveness and bring about a revolution in governing. I am not focused on anything else other than this right now. In the next election is 2023. Do you think you may have changed your mind by then . [laughter] there he is, ahead of us. My only focus is to work very hard. If you work very hard without making any plans, people send you to where they think you fit. Right now my only focus is to become very successful as the mayor of istanbul. The most successful ever came cameanbul good guy from istanbul. Guy the mayor of istanbul talking to me last night. Saying that if the populist pushback on the will of the people, you wind up with a situation like we had in istanbul. A warning against populist leaders around the world. Vonnie a difficult situation around the world. Beating the street by 15 , nothing can keep our stock of the hour out of the red. Nvidia sold off after their guidance was lower than people were looking for. Taylor you have that right. The quarter came in better than expected but it is about the future guidance. Gaming has been a weak spot for them. They are hoping to improve on the data center. That is where some of the weakness came in on that future guidance. A lot of the analysts commentary this morning has been the valuation of the stock. It has more than doubled since 2017 under the ceo. Take a look at a chart i have seen inside my terminal. You see nvidia trading at about 17 times relative to the other broader index, trading only about 20 times on a pe basis. We do know next quarter they will be pulling in about 2. 95 billion in revenue. Analysts want to the number to be 3. 1 billion. Data centers and ai have been key to growth. The company says they are expecting sequential growth in that center to offset some of the weakness coming into the gaming center. We know gaming is 55 of revenue relative to the data center, which is 24 . Hoping to see strength to offset weakness in gaming. Well have to wait and see. Vonnie nvidia, our stock of the hour, down 2. 1 . Taylor riggs in san francisco, thank you. Guy other businesses we are looking at, we work drawing scrutiny from the sec over whether the company violated financial rules in the runup to its initial public offering. That is according to two people with knowledge of the matter. Bloomberg financial reporter found that story and joins us now. What we know about this investigation . Jesse it is very preliminary. I would describe it as a kicking the tire exercise. We had a company that was worth 47 million earlier this year. A is now valued at less than billion dollars. They ousted the ceo. Level, meltdown at this even if they are private companies, that is an important distinction. To sec feels it is its duty look into it and see if any rules were broken. Did did they get to that valuation by misleading investors, where the accounting metrics not appropriate. Where their selfdealing transaction . Those were the kind of things the sec would look at. Vonnie i do not know if there is a typical timeline but you have any idea how long this will take and how much adam neumann might be at risk . Historically the sec looks at things a very long time. It can go on months if not years. We all remember the tesla case from a year ago. That was a matter of weeks. When something is in the press a lot, when a lot of articles are being written, that does drive more urgency at the sec. For me to make a prediction, i would not want to do that. Vonnie we know you will be on it. Thank you. Bloombergs Jesse Westbrook in washington, d. C. On that wework story. I want to reiterate that roger stone has been found guilty in the trial over the lies about the leaks in 2016. The verdict makes him the latest trump eight to face prison. This is bloomberg. 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. Vonnie one to recap breaking news on dollars want to recap breaking news on roger stone. Onhas been found guilty whether he lied about the 2016 leaks. He is the latest president ial aide to face prison. It was born of Robert Muellers 22 month investigation into russian interference in the 2016 election. Prosecutor said stone lied to congress to protect the president. The jury returned a verdict of guilty. This two days after impeachment proceedings began. Guy more on that, i suspect in the next show. Balance of power with david westin is up next. They will have more on what is happening on capitol hill and with roger stone verdict. From vonnie and me, have a great weekend. Good afternoon. David from bloomberg World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. On the brief today, shawn donnan in washington on signs a trade deal with china may be coming together. On capitol hill, Kevin Cirilli on day two of public impeachment hearings, and Damian Sassower in new york on what political unrest is doing to the hong kong economy. Shawn, lets start with you. Another day, another new hope about a deal. Shawn we have been existing in the world of new hopes and false dawns for some time. We are in another day of new hopes, as you say. We are hearing from senior members of the administration, larry kudlow and wilbur ross that we are in the final stages of negotiations for this phase one deal. We also know from wilbur ross and from our sources that ambassador robert lighthizer, the u. S. Trade representative