Nature. Just moments ago, house intelligence chairman adam , asking Jennifer Williams about how President Trump tweeted she was a never trumper. Would not describe herself that way but she was rather never part of it. The white house continuing to push back against williams. All of this one day before Gordon Sondland set to testify. He is the individual that was reportedly on the other end of the phone call between President Trump. President trump asked Gordon Sondland specifically for an update with whether or not president zelensky was looking into the bidens. David many thanks to Kevin Cirilli reporting from capitol hill. Lets turn to bill faries. Big development in the middle east, particularly towards the west bank. Bill yesterday secretary pompeo announced the u. S. Would no longer view most of the settlements in the west bank as illegal under international law. He said he was going back to a position held initially by ronald reagan, but it is something that takes place in the context of Wide International consensus that the settlements and their continued expansion are a hindrance to peace prospects in the middle east. David one of the things we heard right away is this is the end of the role of the u. S. As a peacemaker on the west bank between the palestinians and the israelis. Bill that is a continuation of the view from the palestinian side. They have said since early in the administration that they do not view the u. S. As a credible negotiator. They have been opposed to the u. S. Decision to jerusalem. They were opposed to the u. S. Rendition of israeli sovereignty over the ballon heights. Heights. He golan this is another strike to the palestinians reaching a Peace Agreement with the israeli government. We having david we have increasing sediment on capitol hill to change hong kongs trading status. You had Mitch Mcconnell say, mr. President , you need to speak out over what is going on in hong kong. Bill Mitch Mcconnell said the president should speak out on behalf of the brave women and men protesting in hong kong. We are expecting a vote that would put Hong Kong Special trading status with the u. S. Up for an annual review. One of the Big Questions is what effect that will have on the ongoing trade negotiations that seem to been drawn out over the last several weeks. Now we go to london and Teresa Rafael because theres a big debate in the campaign. Therese you have had debates in the u. S. For many decades but they are relatively new here. The first real debates were in 2010. Tonights debate is the first one in which the leaders of the two major parties have gone headtohead. Boris johnson goes into this debate with a doubledigit lead in most of the polls. In one sense he has the most to lose. Jeremy corbyn, the opposition leader, looking to try to shake has not takenthat offer him in the way it did in 2017, where he came from a double to digit deficit to narrow it and make the largest gains the labour party has seen since world war ii, although they did not gain power, they deny the conservative party their ruling majority. An important debate. I do not expect it will change much. Many people will be watching to see how the two do against each other and on the major issues. Johnson will be trying to keep this on the subject of brexit and his promise to get brexit done and move on to other things. Jeremy corbyn will want to take the attention away from brexit and discuss his promises, which include massive spending on public services, widescale nationalization in the utilities of ar, and other elements socialist program that is quite radical and that Jeremy Corbyn is hoping will gain especially younger voters. Therese rafael reporting from london. Now lets get a check on how the markets are reacting. Joining us is Abigail Doolittle from new york. Abigial small moves in the major averages. Record highs nonetheless. We did have a headline on freight, the idea of u. S. And china would try to reach a compromise on tariff rollbacks around the failed deal in may. All tariffs after that deal would be rolled back. Earlier ones taken off. The biggest story on the day, not a lot of reaction to the trade headlines. Retail look at the weakness we have for the likes of kohls, macys, home depot, this is a story we were talking about last week through cisco. Cisco cut their outlook twice in a row, very similar to kohls and home depot. Seemingly different companies, but in the real world these different sectors are part of one flow. The consumer showing signs of weakness. Something to keep an eye on. Everyone thinking about trade, but now seeing these continuing signs of weakness around the u. S. Consumer. Interesting to see if and when that starts to eat into the record highs for stops. On the day, a mixed picture, but another round of record highs. David a weaker consumer is not something we need. Thanks Abigail Doolittle. We turn now to Mark Crumpton. Mark as our Kevin Cirilli was telling us, National Security official Alexander Vindman is on capitol hill for week two of the impeachment inquiry. In testimony, he said he viewed President Trumps request into his an investigation of political rivals as a demand, claiming there was a power disparity between the two leaders. From, theture i come military culture, when a senior asks you to do something, even is not toleasant, it be taken as a request, it is to be taken as an order. In this case, the power disparity between the two leaders, my impression that was in order to get of the white house meeting, president zelensky would have to deliver these investigations. Mark venmo and said he ripped vindman said he reported the concerns about the popular to the proper authorities in the chain of command. The interim leader is jeanne ane z, who has been recognized by the United States. We asked morel as if he has any contact with the government. I do not have any channel. As far as i know, the only communications between legislators, and legislators on the right wing that took part in the coup. They do have contact to set some rules. Mark olivia has been a terminal since opponents accused morales of trying to rig last months president ial vote. He quit, saying he is the victim of right wing coup. Elizabeth warren is calling out blackstone. She says the Investment Firm is shamelessly profiting from the 2008 housing crisis. Elizabeth warren essay out blackstone for buying up houses and apartments in foreclosures. Blackstone says it begin buying houses in 2012 after the prices abated. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David . Back to you in washington. David coming up, fcc chairman jay clayton on the shift of private markets, the risk investing in chinese market, and more. This is balance of power on Bloomberg Television and radio. \ david this is balance of power on bluebird television and radio. Im david westin. We have seen big changes in Financial Markets toward private capital and tort investing overseas. I spoke to s. E. C. Chairman jay clayton earlier today. Been a substantial shift of work capital is raised and invested from the Public Markets to the private markets. More noticeable since 2008, but it has been going on for 20 years. What does it mean for the overall economy . I do not think it is having a real effect on the overall economy. The nimble nature of our private markets is often cited by people as a way we have driven innovation and driven investment. The question for us as regulators is given that change, are we still giving Investment Opportunities to our main Street Investors to the same extent we did 20 and 30 years ago . Opportunities, but are there risks . He might not have the information you need. Jay you make an incredibly important point. Can i dig deeper into that . The process of becoming a Public Company is a rigorous process. Ive never seen a company go through it that the not come out a better company. Our Public Markets do something that is not recognized, but fundamental. Institutional investors and Retail Investors are sidebyside getting the same deal. You have a lot of regulatory protection and a lot of protection as a retail investor. You know youre getting the same deal as an institutional investor. Very close to the same deal. Our private markets do not operate that way today. Retail investors have very little access to our private markets. When you do see access, you are not sure there is that alignment of interest. If we are going to give Retail Investors private market opportunities, we have to make sure we have that Investor Protection and that alignment of interest. David how would that work . We talked about the opportunity of Retail Investors participating in private equity. How would you have disclosure opportunities to protect them . Jay if you have disclosure requirement, they may as well be public companies. What can we do in terms of Investor Protection and in alignment of interest that puts private investors in a place where they are getting the same deal as the longterm institutional money in the marketplace . That is the question we are asking, and we are looking for a solution. One thing may be a Fund Structure where you are sitting sidebyside with longterm investors doing the same deal. We are open. We are recognizing the landscape has changed and if i take a look at the 401 k of an individual investor, that 401 k does not look like a wellmanaged pension fund. A wellmanaged pension fund will have a fair amount, a range depending on the font, allocated to private investments. That is where growth is. That is where returns are. Diversification is extremely important. There is a delta, there is a difference between what individually managed 401 k looks like and what a wellmanaged hedge fund looks like. Maybe that is fine. We should be asking ourselves that question. Have seent is what we for Retail Investors into etfs. It also might limit their reward as a practical matter. Is there a risk to society if individual Retail Investors are free to take bigger risks because they can end up on the dole. Social security is not there to support them. This is their pension now. Jay let me be clear. ,ndexation, diversification they are extremely important Investment Tools for individual investors. Diversifyge people to , to use lowcost index products. 40 years ago, getting brought exposure to the marketplace was costly for an individual investor. Today it is almost costless. That is a wonderful thing. I do not want to do anything to impact that. Inook at what is going on individual retirement accounts and i look at wellmanaged Pension Funds and i see wellmanaged Pension Funds have a lot of exposure to our private markets, which last year raise more capital that are Public Markets, and saying something there is we should be doing . Is there some portion individual investors should have the choice to invest in . Investor protection at the sec is paramount. David another shift we have seen is the extent to which u. S. Investors are investing in overseas company. Lets talk about china. We do not always know we can trust the numbers, the audit numbers of Chinese Companies. What can the u. S. Do about that . What should it do . Jay you raise an important point. We have a great system. Every system has flaws, every system has bad actors. We are trying to eliminate the flaws and the bad actors. On a comparative basis to other countries and how they regulate their Capital Markets, far superior, far more Investor Protection, far more transparency. Somebody may say too much waving the flag. That is true and investors should recognize that. As you go to other markets, you cannot not have the same protections you have in the u. S. I want people to understand that. It does not mean we should foreclose those opportunities because there is clearly growth in places outside the United States, clearly good Investment Opportunities, clearly good opportunities. Investing overseas is different from the u. S. David one of the things that protects u. S. Companies is the rule against misleading or fraudulent statements. If i invest in a large Chinese Company and i sue them under 10 b 5 . Jay theres a difference between what the law says you can do and what you can do in practice. Here we have a system built up over time, and if a company commits fraud there is a way to get redressed. We could bring an action, other regulators bring an action. Look across the spectrum and see the extent to which that happens outside the United States. It is less. Even if the law says the same thing, what happens in practice . I think people who manage companies in the United States no people are watching. That is important. They should know people are watching. One of the things youve got attention for is a new proposed regulation on proxy advice as well as a proposed regulation on shareholder initiatives. How would the proposal on the proxy advice ever from what current law is . Jay on proxy advice . Let me speak broadly. This is a proposal. The shareholder engagement arena is very important. Managers should know their shareholders are watching. They should know their shareholders will hold them accountable for the decisions they make. That is an important part of our system. That system needs to be transparent. It needs to be accurate. But we are looking to do is modernize our rules around the proxy process to ensure people who are relying on proxy advisors know when the proxy advisors have conflicts. Whether the information theyre putting out is accurate. If it is a proposal, we welcome comment. These rules have not been updated for a long time. The markets have changed dramatically. We have had a shift from direct investment to investment through funds. We have had a shift to proxy advisors, giving a lot of advice to people who manage funds. We want to hear from people. How can we improve and modernize the system . David that was my interview with fcc chairman jay clayton. Chairman jay clayton. Kohls is getting crushed. That is our stock of the hour, next. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. I am david westin. Time for the stock of the hour. Kohlss had its first worst day since january 2017, plunging more than 70 after the retailer cut its fullyear earnings view for the 17 after the retailer cut its full earnings view for the second time this year. Kailey the print was quite ugly. They missed on earnings by a wide margin. Centsame in at . 74, 12 shy than what the street was looking for. Grew about half the pace. They did cut the four year earnings guidance. This time it was a pretty heavy lob off the top end. It will only be as high as 4. 95 a share. Previously it was as high as 5. 40 a share. The Company Placing blame on the fact that demand for womens apparel is lagging, and then we have to keep in mind when we think about the bottom line for kohls that 1 5 of their products come from china. There has been a series of tariffs that have added more than 1 billion in costs to the company. That is putting pressure on the margin, as is some of the other investments the company is making. They are making investments to attract millennials into their stores. As you know, kohls has been interacting a lot with partnerships. They have a partnership with Weight Watchers and amazon, which is a big focal point for them. That Partnership Allows customers to return packages from amazon to kohls stores at about 1000 different locations. The thesis being they will return those packages, look at kohls, and maybe make a purchase. At this point it does not seem that is paying off in a huge way with the weakness we are seeing, but on the call management did say they expected to be a positive addition to operating income in 2019. When you look at the sales number, essentially you are seeing this reverberate throughout the retail sector, the retailing index is off 1. 5 . The fact that the weaknesses on sales does not bode well going into the holiday quarter, which is crucial for all of these names and that is dragging onto Department Store peers like macys and nordstrom. David we look at kohls for its own sake but what it might tell us more broadly about retail and more broadly than that, the consumer. When the retail Sales Numbers came out, apparel to not grow as much as other places did. Is this an apparel problem, a kohls problem, or could it be a Broader Consumer problem . Kailey it could be both. When we saw retail sales last week, seven of the 13 sectors were down. That points to a Broader Consumer problem. A softening. Clothing and apparel was weak, bringsfurniture, which me to the housing. Home depot seen as a bellwether on the health of the consumer and housing sector and they did miss on comp sales for the Third Quarter in a row and cut their guides for the second time. We only see comps rising 3. 5 . The company says that is because they made investments in online. They have not necessarily been paying off. Slow to see that payoff. On the paul, the executive said they do not see any big macroenvironment. It seems to be more execution related. David i want to sneak in one more, the discount guys. What about t. J. Maxx . Kailey it is the one bright spot in retail. The stock up 2. 4 . A Strong Quarter for them. The type of retailer you are seems to matter. The discount differentiated retailers to be performing better in this environment. David kailey leinz, thank you so much for that survey of retailer and consumer. Sanders andnie Elizabeth Warren have embraced medicare for all, but what working practice and will are voters by into the plan . We discuss that next. Ons is balance of power Bloomberg Television and radio. David from washington, this is balance of power on Bloomberg Television and radio. Im david westin. For bloomberg first word news, we go to Mark Crumpton in new york. Mark protests continue in hong kong with demonstrators planning to block roads and disrupt real service. Authorities say they have fired more than 1400 volleys of tear gas during battles with streetsrs that left strewn with debris. This as hospitals are overwhelmed with injured demonstrators evacuated from a University Campus standoff with police overnight. The citys leader is urging a peaceful and to the showdown in antigovernment protests in iran is theing a question, trump administrations campaign of maximum pressure starting to work . Demonstrations began last week when tehran raised the price of gasoline. That led to buzzes and banks being burned, the internet being blocked, and the number of people being killed. Tensions have risen since the u. S. Pulled out of the nuclear deal and reimposed economic sanctions. President trump says he protested u. S. Interest rates during a meeting with jay powell. The two were at the White House Monday along with treasury secretary steven mnuchin. The president has constantly criticize the chairman, saying rates are too high relative to other developed nations. The worlds biggest diamond mine, famed for the pink and other gems, is closing. Rio tinto is closing down the Western Australia line on thursday. It was home to about 90 of the worlds prized pink diamonds but has recently seen its supply of economically viable jewels exhausted. 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. David, back to you in washington. David thank you. 10 Democratic Candidates will take the stage in atlanta. A lot has changed since the last time they had a debate, but one thing has not changed. One of the biggest issues dominating the debate and the race is health care policy. Our next guest is an expert in Health Care Economics and has been critical to medicare for all. We welcome Katherine Baicker from the university of chicago. Thank you for being here. You have a paper out today which i found fascinating. Not understood it, it was how you can pay for it, but if you can have onesizefitsall in our society today. Is a key that question. Having a generous Medicare Program may fit the needs of high income populations but not low income populations because there is so much money we could spend on health care. It may crowd out other things like assistance for food or housing or other things are really important to families. Ironically, it could benefit the wealthy are in society and have a disbenefit to those in need. What is the sensible approach . Katherine the question we should be asking is how much out here should be provided for everyone . There may be different answers for everyone, but if you provided medicaid for all, that would mean more money available for other things. If you provide a generous benefit like medicare for all, that would require higher taxes and leave less money for other priorities, and that may not fit peoples needs. David lets emphasize the distinction between medicaid and medicare. Medicaid for the less fortunate, medicare for the elder. How much richer is medicare than medicaid . Question there is a of how much is covered, what services are covered, should we Cover Services with Minimal Health benefits or only services that really improve health . There is a question of how much through thee paid program, and that will affect how much care is available to people. A medicare for all program that covers a wide array of benefits would be to a lot more demand for health care for people who did not have insurance before. If you paid for that by cutting back on payments to doctors and hospitals, that will restrict the availability of supply, and youll have shortages. Programif you had a that covered fewer services but with more generous payments, that might make sure there was enough Health Care Available for people in the program, but keep it more affordable. In general, medicaid pays less than medicare, but also covers less. David we are talking with Katherine Baicker from the university of chicago about health care. Lets talk about what a different alternative might be, perhaps obamacare enhanced. Nancy pelosi said she would prefer an approach like that than to medicare for all. Im not a big fan for medicare for all i welcome the debatedavid , i think we shd have health care for all, i think the Affordable Care benefit is better than the medicare benefit. David does she have a point, from your point of view, would be better to take the Affordable Care act and enhance it . Katherine she has a great point, we need to consider how much health care we want to provide and what mechanism. The problem with medicare for all is it is a uniform benefit that covers a lot of services which means providing it to everyone would be really expensive. Having people be in the to opt plan they find appealing could work out well, that you have to think hard about which people will opt in, and what kind of risk pool that leaves in private markets. A plan that makes sure private markets can operate robustly and the people still have choices may steer us toward higher Value Health Care than the system we are getting now. David what would that make of the private provision of health . Are services can you have medicare for all and still maintain a substantial private element in the system . Katherine i think definitionally not. The idea for medicare for all is you roll everyone getting private insurance into the government run medicare plan. Get theirst People Insurance now is through an insurance sponsored plan. Under a medicare for all proposal, that would go away, and all the resources that get rolled into the private market would get rolled into the government plan. I think more money we need to be raised through taxes. When you give people a generous benefit, they will seek more care. One of the things we have heard from joe biden and Pete Buttigieg is a private option. Does that make sense to one of e heard from joe biden you . Katherine the challenge with a public option competing with private plans is making sure that you have a public option competing with private plans on a level playing field. That is challenging when the government is running one of the plans. We need to figure out how much the government would pay for services. Right there, medicare pays for about half of what private insurers pay to doctors and hospitals. How much would people pay to enroll in it . If they did not pay anything in it, would disproportionately sick People Choose to enroll in it . It is not clear that they could compete on a level playing field. But one important thing to add is, having Health Insurance is really valuable to people. So none of this debate should take away from the fact that uninsured people need more access to health care. The question is how to do it in a way that is substantially financially sustainable. David if we were solving the entire equation for bending the cost curve we now have about 18 gdp attributed to health care, and it is going up. If the one thing we are trying to solve, what is the best approach . Katherine i dont think it is medicare for all. We would end up spending a lot more money. I think a better approach would be guaranteeing a benefit package for everyone that covers all highvalue services but not those services with questionable benefits. That would keep our spending from rising as quickly and would ensure that we are spending is valuable for peoples health. More basic benefit available to everyone, and that giving to buy moreption coverage of less beneficial services, if they wanted to. I think that would then the curve. David many thanks to Katherine Baicker. Always great to have you with us. We are talking with legendary markets investor mark mobius about the crisis in hong kong. Meanwhile, the chairman of the Foreign RelationsCommittee Says the senate will vote on the hong kong bill at 5 00 eastern today. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Kong. Ts continue in hong mobys Capital Partner cofounder mark mobius earlier today about the embattled city and within the u. S. Is taking the right approach to the issue right now. I think its a only approach the u. S. Can take. At the end of the day, the uss we stand for freedom, democracy, rule of law, and so forth. Hong kong is very critical to u. S. Investors. We have a lot of investments in hong kong in order to get into china. It is very, very critical in that regard. Im not saying that what the u. S. Congress is doing may be the right approach, but i believe it is the only thing they can do. They have to react to what is happening in hong kong. David doesnt this pose a real conflict between beijing and washington . It is critical on capitol hill. President xi considers this a matter of sovereignty. He keeps saying this is our business, not your business. Mark yes, but you have to ember, u. S. Law speculates hongfies, rather, that kong had to be free of chinese influence during the time that this law would be in place. I think there is probably no choice on the part of the u. S. , other than to abrogate the law which would have too many implications with hong kong. David you know china, asia terribly well. What do you make of the trump administrations approach to china more broadly, with trade, and now we see military activity in the south china sea. Are they doing it the right way . I think there is no choice. As you know, china has become much more aggressive in the south china sea, in showing their military might. As you know, china hasyou have e u. S. Has been the hegemon, so to speak, for the globe, and now you have this competitor coming into play. There really is no choice but for the u. S. To respond at the end of the day. Otherwise, youll have the options open to american trade and other aspects. Just take the south china sea. Roots going from the middle east to japan are interrupted in any way, going to the south china sea, you have a real strategic issue. David President Trump is a divisive figure in the u. S. You travel a lot around the world constantly. How is President Trump received overseas . Mark it is interesting, the perception overseas is not as negative as you would find in the u. S. Often you find people who like his strong approach, the fact that he is looking after america. It is kind of ironic. You would think they would say, he is ignoring us. But america is sort of a symbol of strength for a lot of people, and they want to see a strong america. To the degree to which trump is seen as enhancing the strength of america is seen as positive by many. David you have had a distinct career in investing in emerging markets. Our investments in emerging markets better or worse under donald trump . This stage, somewhat better, for the reasons i mentioned. The u. S. Is strong. If the u. S. Market is strong, emerging markets have a chance to come up as well. The interesting thing is, a lot of people see the u. S. Has had too long of a bull market and maybe slowing down, and therefore some of the money thats been earned in the u. S. Market is already moving into emerging markets. David how much of the strength of the United States and the economy is due to the fed . Just yesterday, jay powell met with the president. How much of it is due to the steady hand of the fed . Mark that is an interesting question because i believe Central Banks around the world, including the fed are wrong. Focusing on getting 2 inflation, to me, is like pushing on a string. Productivity is rising at such a fast pace as a result of the internet and so forth, prices are going down. So its very difficult to achieve that happy 2 inflation. By pumping money into the economy, it doesnt really have the designs affect. It is somewhat dangerous and away because now we are in a situation where it is difficult to assess the value of equities or any other asset you have. With free money, how do you measure . David how do you weigh the possible effects of free money, low Interest Rates . It could encourage investment, which would drive productivity higher a good thing. On the other hand, it could drive assets up. Our asset values too high because of money being so cheap . Mark that is one of the problems. I remember the days when we would buy stocks at five times p e ratios. Now 20, 30 is common because of these extremely low Interest Rates. That is what i mean when i say its getting more difficult to assess assets. You have a situation where almost zero Interest Rates does not give you any kind of measure. David so it gives you access to capital as a practical matter, but how do you find opportunities in this world . You have been famous for finding opportunities were nobody else is looking. Where are you looking for opportunities . Mark i look at companies that have a good return on assets, capital. Number two, i look at companies that pay dividends. Not only because i like to get yield because you are not getting any yield at the bank but it also shows the company has some reasonably good corporate governance. I would say those two factors are most important. David geopolitical stability also helps investing overseas. Right now we have a lot of apparent instability, not just , iran, kong, but chile all over the world. How do you backstop your investments in emerging markets . A result of the internet and communications revolution, you will see a lot more turmoil in these countries, but you have to take it in stride. Turmoilyou have violent , like you are seeing in hong kong, it is bad. But if you have Peaceful Demonstrations which result in more honest government, less corruption, then its good for us as investors. David what areas around the world do you like right now . Mark i would say india is up there. China is still important. Brazil has done very well recently. Now we think with reforms coming in, itll do better. It is amazing the way that russia has performed. The bricks still a pretty good. Further afield, looking at Southeast Asian countries thailand, the philippines, vietnam has performed well. Is anear europe, turkey place to look. In africa, i would say south africa could become looking pretty good. David that was my interview with mark mobius. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. The securities industry gathers in washington today, and one of the questions for it, what the Election Year may mean for the Financial Markets. Ceo earlierhe today. We are a highly regulated industry. Those issues keep coming, and they bubble up to the top. We have issues coming from europe that we are having to address, changes in the industry. Political issues, those are starting to seep in a little bit, but that is something we will look at as we go into next year. Certainly a topic of conversation. David as you gather and talk about the issues related to the security industry, has you take into account the larger issues like trade, usmca, Monetary Policy . We saw President Trump meeting with jay powell yesterday. Is a good question. We had senator tim scott from South Carolina yesterday, talking about usmca, which we strongly support. I think its an important piece of trade legislation. We are hopeful congress can get that done. While its not specific to Financial Services in all respects, it is tucson, and has broader impacts on the markets. Beenise on china, weve working for many years to gain access for u. S. Access for u. S. Firms operating in china in the securities business. China has made steps in that direction to get majority ownership which we think is important, but not a lot has a end. We are optimistic in this phase one i think is what it is called that would include moving forward on the Financial Services. That is very important as well. David does your industry take a position on auditing Chinese Companies who trade securities in the u. S. . There is a move afoot to say we have to look at that because we cannot rely on the numbers we are getting from china. We have not gotten directly involved, we have certainly watched the legislation getting introduced. That is something we are looking at but we have not waiting yet. David is it a risk to the securities industry, a possible disentanglement of the Capital Markets in china and the United States . We want to expand the entanglement if you will between the two countries. We would argue that its to the benefit of the chinese economy to have more direct Foreign Investment and a broader Capital Market system. We think they are too bank dependent over there. They need a broader Capital Market system. Likewise, that benefits the broader global economy. We think there is a benefit. David that was part of my conversation with ken bentsen, president and ceo of sifma, which is gathering for its annual meeting here in washington. Coming up, balance of power continues on bloomberg radio. We will be looking at impeachment. Three basic mistakes that are being made on the subject of impeachment. Live from washington, this is balance of power on Bloomberg Television and radio. Television and radio. Balance of power lisa im lisa abramowicz. Welcome to bloomberg money undercover. Show that provides valuable insights into alternative investment. We take you inside the world of private debt, equity, and real estate. The stress growing in the shale patch. Some investors see opportunity, others try to avoid a falling knife. Fortational risk growing carbon equity as cash piles flow with washington turning its attention to the fld