Moment. I did want to point to the , leadingd gaming index the sb the hundred with the likes of wynn. We will bring you more on that any moment as well. Guy it is a big deal, the words of the president , talking about this deal, sending stocks higher. Stoxx 600 up by about 0. 5 . Yields really turning around on this. You see the selloff in the bond market. We are now. 9, 30 on the german tenyear. Our basis points the pound a softer versus the u. S. Dollar. Vonnie lets get into more detail on trade. It is literally the latest event impacting markets. A tweet a few mums ago from the president saying this. Getting very close to a big deal with china. They want this, and so do we. It comes as talk continues between the two largest economies ahead of the deadline on the u. S. Imposing a round of new tariffs. We will see if we get anything. Guestsring in our first who can talk about the ecb, the fed come and the economy overall, Gary Shilling, Bloomberg Opinion columnist. We will get to all of the monetary moves over the last couple of days. First, this tweet, and the fact that even with everything weve heard from the ecb and the fomc, the president can still move the market to this extent. Isy i think Monetary Policy really becoming irrelevant. The Central Banks have done just about every thing they could to stimulate the economy. The fed reversed gears last year, but then they got scared. They are easing, and the ecb is on hold right now with negative rates. I think the whole shift is really elsewhere, one is fiscal policy. In the u. S. , i think thats going to be big in for structure spending, and the idea of working on a trade deal with china. The whole focus of economic and financial interest has shifted away from Monetary Policy toward fiscal policy and other things that will spur the economy outside of the monetary area. Vonnie i want to get to your longer term in a few moments because you have some excellent on what are the equivalent of who will loops of hula hoops, and the essence that they wont have an effect on the economy in the long term. Is trade one of those . Gary yes, trade is. We are a largely domestic economy. The world you and i live in is global, but u. S. Exports are 13 of gdp. You go to europe and it is 20 to 50 in the case of germany. We are largely a domestic economy, but trade is important because it can be volatile, and on the edge it can be important, particularly from an investment standpoint. Companies that0 have 30 , 40 of their sales on overseas, soare trade is very important. Guy good morning. What do you need to see in a trade deal, do you think, to keep risk assets rallying, to keep the equity market moving on . What kind of deal needs to get done between china and the United States . Gary thats an interesting question. Shortterm, theres a lot of pressure for a deal. Trump is facing an election next year. Pressure. Ng they want to work out a deal. I think it probably will include china buying more agriculture products. They will promise, as usual, to not demand as much tech transfer at the price of doing business in china. Economy has been slowing in growth for the last decade, and also, it will continue to grow, all things being equal, because we have declining workforce. Force is going to be declining for the next three decades. They need productivity. How do you get productivity through technology . They are developing technology, but not fast enough. They really rely on the west. I think thats where the struggle is going to continue well beyond the immediate trade war, and trump seems to realize that. Thats the longterm geopolitical story that i think a lot of people are looking at in trying to understand. In the short term, though, i want to bring some headlines brought by dow jones. Apparently the United States is offering to cut existing tariffs by up to 50 , and that is targeting 360 billion in chinese goods, and we are going to see the cancellation of the december 15 tariffs. I want to circle back to what i came in on. Do we need to see tariff rollback, at least in the short term . I appreciate the shortterm and longterm view here. In the short term, do we need tariff rollback for risk assets to keep rallying through 2020 . Gary its probably having a bigger impact on stocks then on the economy. If you look at the tariffs that have been imposed so far, they have not been passed through. We are in an excess supply world. They are being ensured by suppliers in china, by buyers and retailers and so on in the u. S. We see weakness in import and export prices ever since the tariffs have been imposed, so it isnt much of an economic phenomenon, but it is much more significant in the eyes of investors. I think it may be overdone in that sense because what has happened so far isnt really that much in terms of actual inflation, deflation. Its tough on agriculture, but in terms of the overall economy, it hasnt had any crucial effect. Vonnie only four fomc members expect an increase next year. The rest of them expect no change. Obvious from what fed chair jay powell said that hes into spitting no change for the entirety of 2020. Pat . The fed stay gary he called it data dependent, which basically says we dont really know. I think the fed is more shifting toward that stance. The experiment with forward guidance, they had the idea we want to tell the markets what we are going to do to keep them calm. The only problem is that was based on their forecast, and theyve not been very good forecasters. If the forecasts were true, the fed funds rate would be about 3 now. They way over anticipated inflation and Interest Rates. I think they are backing away from that and moving toward a stance where they are really saying we are going to wait and see. This is what we really had before the financial crisis when transparency became the order of the day because there were so much covered up. The fed, these guys are mere mortals, and in their case, it really was reflected in forward guidance. I think this is part of a backing away from that, and of course, there isnt a lot in the economy right now that tells you whats going on. Consumers are the only source of strength, but they havent really thrown in the towel yet. I dont think anybody can mckay clear forecast that we are going to do anything decidedly on the upside or downside. The fed continues to worry about deflation. They worry about People Holding up buying because they expect lower prices. Andi think they really they are talking about 30 target on inflation. I think the whole thing is that they are moving away from a phillips curve orientation you had under powells three predecessors, all of which were phd economists, and ive got one too, but i dont think im quite is academic as those guys. But the hallmark of the powell reign is pragmatism. Vonnie on that note, we are going to take a pause and come back. Theres a lot more to talk about. Christine lagarde saying she doesnt want to be known as a hawk or a dove, but rather an owl. Beekeeper Gary Shilling is going to be known as that. Gary joining us again and our next segment to talk a little more about the easy be and madame lagardes first news briefing. For now, lets check in on the first word news with ritika gupta. Ritika the House Judiciary Committee set to conclude debate on articles of impeachment against President Trump today. The likely result is a partyline result that will send the measures to the floor of the house. This morning, the democratic majority is expected to beat back a number of republican amendments. Back atrea is lashing the u. S. For its criticism of missile tests, calling the actions hostile provocations. North korea says the u. S. May have blown its chance to salvage Nuclear Negotiations just weeks ahead of a deadline set by leader kim jongun for washington to offer mutually except the terms to revive nuclear talks. Applications for unimplement benefits unexpected lee rose to a twoyear high. Jobless claims decreased to 252,000 last week. That relax volatility around the thanksgiving holiday. Still, the underlying trend is a tight labor market. Employers are reluctant to dismiss workers. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Gupta. Ika this is bloomberg. Guy thank you very much indeed. Quick check on the pound, the cable rate. Remember, the polls are open in the united kingdom. Polls will close at 10 00 p. M. London time, and at that point, we are going to bring you special coverage of the election results. We will get the exit poll at that point and analyze it, and talk about the locations for the u. K. Economy. Dont miss the action at 10 a clock p. M. London time, 5 00 p. M. In new york. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets check those markets with abigail doolittle. Abigail take a look at the s p 500, up 1 , on pace for its best day in more than a month. The sox up for a third day in a row at 2. 5 , on pace for the best day since september. All of this has to do with President Trump teasing on trade, perhaps the u. S. And china are close to a deal. The shanghai composite had declined slightly before that tweet, and then we see haven bonds selling off. Yields backing up by eight basis points after the fed, and of course on this risk on tone. If we go into the bloomberg and use the imap, it is also risk on sector wise. We have a number of sectors up by more than 1 . Six at this point, to be precise. Tech, healthcare, industrials, energy and financials on top. On bottom, real estate and utilities. The fact that investors are not going towards those defensive sectors is risk on. As for some of the big movers beneath the surface, lets take a look at a few of those. Lululemon down 5. 7 . They beat come up the outlook is disappointing. Siena missed fourthquarter the 2020 outlook held, so investors liking that. Delta airlines up 4. 2 on a positive update. Wynn resorts up 7 , rising on the possibility that macau has won financial policy rewards from china. Finally, if we take a look at the all country index, hitting an alltime high. Vonnie thank you for that. I want to bring you a tesla headline now. Tesla is losing its third enteral counsel in the course of one year. In the past year, tesla has lost nsels. Ree general cou the latest to go is taking the general counsel job at an ai startup, according to people familiar with the matter. Tesla is still up come but pairing those gains. Guy Christine Lagardes first centralas head of the bank. Lagarde delivered a positive message about the euro zones economic slowdown and repeated that risks to growth remain to the downside, but in a less pronounced way. Ms. Lagarde on some initial signs of stabilization in the after milddown and increase in underlying inflation, and line with our previous expectations. Guy bloombergs matt miller in frankfurt. That, she seemed to handle that pretty well. Matt she handled it really well. In a way, she spoke in a way that a lot of people besides just phds like Gary Shilling would understand. She, like jay powell, is not a phd economist. She told us in the beginning of the press conference she was going to speak plainly and communicate with more people than just the hyper financially minded journalists in the room, but even with regular people. She said, dont try to over interpret what i say. If i change my wording slightly, she doesnt want that to move the markets the way it would or bend mario draghi bernanke change their words slightly. That is one thing i thought was interesting. Also, she talked a lot about the review that they are going to do, this strategic review. She said it is about time. Theyve had 16 years since the last one. She knows they were very busy previously, but now is about time to do it. She says it is not going to take that long. She wants to start in january at some point and be done by the end of 2020. Hopefully we will be getting more news on that at each press conference that we go to. Then, as you say, she was optimistic. She said there is still risk to the downside, but they have lessened. The uncertainty has loosened as we start to get, at least by the end of today and by the end of the week, we get more certainty on what the deal is with brexit, more certainty on what the deal is with tariffs, as the deadline comes on sunday night that now may the avoided. She seemed to be more optimistic about her Inflation Expectations as well because of the directionality. She said it will be 1. 6 by the end of 2022. Of course, thats a very long way out to forecast, and probably difficult to do with any kind of certainty, but she says by the end of that year, only 1. 7 . The direction, she says, is going in the right way, even if it is not still at the target she wants to hit. Back to you. Vonnie that is bloombergs in frankfurt. , as mattling with us mentioned. She mentioned she will be addressing different audiences, but what does it say about a central bank that is sounding positive, but is also telling us 1. 2 , andinflation is we are not even going to see 1. 6 until 2022 . Gary inflation is well below the targets. We just came out with a Consumer Price target today that was flat. Well below the 2 target they are talking about. Central banks simply have not ,een able to move up inflation and i dont know why they have a 2 target. Theyve never really explained it. I think it is because they are so afraid of deflation, and the deflationary expectations, and People Holding back to buy that they want to cushion. At some point, their credibility is really being strained. Christine lagarde is talking about review, and powell i think is backing away from the idea of a fixed 2 , so i think they are adapting to reality because their credibility is being strained. Years, andhe last 10 we are coming to the end of a decade, the s p has been turned around 10 plus a year. Its been quite a great 10 years if you are in the equity market. Fact that Central Banks probably now are on the sidelines, what do you thing the next 10 years looks like . Gary i dont think you can expect that exuberance. It seems to me that the primary driver of equity markets has been centralbank largess. If you look at all the money that was created not only by knocking the reference rates down to essentially zero, but then quantitative easing, it did not go into spending, borrowing, lending. It basically went into equities. I dont think Central Banks are in that frame. They no longer feel that theyve got to keep pumping money out. One of the reasons is it really hasnt gone to where they wanted to. It hasnt pushed the economy the way they want it. You cannot expect that in the future, so you probably have a very different sort of stock market, one that i think is friendly going to favor something thats been out of favor for a long time, and that is stock figures. When youve had this rising fed inspired market, the fed is a , rising tide raises all boats, and that has really made index investing very attractive because you look at the s p, it is way out distanced what hedge funds have done and active managers and every thing else. I think we may be seeing a new era i had as a result of change in Federal Reserve and other central bipolar sees. Vonnie always a pleasure centralbank policies. Vonnie always a pleasure. That is Gary Shilling, a. Gary schilling president and Bloomberg Opinion columnist. This is bloomberg. Columnist. This is bloomberg. Guy from london come on guy johnson. Vonnie from new york, im guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Fiat chryslers unionized workers in the u. S. Now have a new contract. 70 of workers approved of the deal, the last of three agreements negotiated this year by the uaw. Fiat chrysler promised it would add 7900 jobs. For all the star wars fanatics out there, theres one more day to get a bid in for vintage memorabilia from the movies. The sothebys Online Auction includes an imperial stormtrooper helmet from 1976 with an estimated price tag of up to 77,000. There are also autographed movie posters, action figures, and props used during filming. Not so coincidentally, the latest movie the rise of skywalker opens next week. That is your latest Bloomberg Business flash. Guy lets talk about what weve got coming up next. Founder of achilles management telling us where he Sees Opportunities in todays and tomorrows markets. Looking for to that conversation. Tonight, we bring you special coverage of the u. K. Election here on bloomberg. Polls close at 10 00 p. M. That is when we kick off our coverage, 5 00 p. M. Over in new york. Quickly show you what is happening on the s p on the back of trump tweets talking about a big deal. We are now trading up over 1 . European equity markets responding as well. Ponce selling off. More market coverage next bonds selling off. More market coverage next. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets check in with the bloomberg first word news. Here with the details, ritika gupta. Ritika u. S. Negotiators reportedly making a new bid to get an interim trade deal with china. According to the wall street journal, theyd offered to cut onsting tariffs by up to 50 300 billion of chinese goods, and cancel new tariffs such a effect on sunday. In return, the u. S. Once from commitment by the chinese to buy more products. The House Judiciary Committee approaching a historic vote on impeaching President Trump. This morning, lawmakers voted on a moments. At the end of the day, they will be asked whether to send the two articles of impeachment to the house floor for debate and vote. A warning from the International Energy agency. It says the Global Oil Markets still face a surplus next year even if opec and its allies deliver newly announced production cuts. The iea estimates inventories will grow by about 700,000 barrels a day, even if the cuts are implement it. In turkey, a surprise from the central bank. It cut its Interest Rate from 14 to 12 today. Policymakers were emboldened by the stability of the lira, plus they were big done by turkeys president erdogan they were egged on by turkeys president erdogan. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Vonnie thank you. Fears have eased, yet risk terrain including lingering trade uncertainty. Khajuria has his own feelings. He joins us now, along with bloombergs sonali basak. Since the founding of your fund, your up already 19 , beating your average annualized return, which itself stands around 28 . Tell us about how you managed to do that. Me. In thank you for having in january, we talked about taking advantage of what was a turbulent q4 in 2018. There was quite a big snapback in the First Quarter of 2019, so that was a big part of it. In addition, we look at some sectors that are likely to create Capital Growth over the next several years, but also have a running cash yield. One of those is in the listed alternative sector, a space where you have seen very strong returns this year as they have made structural changes to the companies. They are really growing and paying strong yields. Buyout you talked about debt, but the year has gotten quite frothy. Do you think next year is going to be a tough year for how that accent class performs . Sachin a lot of the credits that have run up a lot will go into trouble because they have been lifted by a resin kind of liquidity, but if you look at individual names, you will see pockets of opportunity. The macrolevel, i think whether you look at leveraged loans or buyout debt, both have lots of liquidity coming to the system. It is really uncharted territory how it will perform when the downturn does happen. Sonali youve told me your investment thesis factors in a ushaped recession, a prolonged downturn, and that means bankruptcies. On the other hand, you invest a lot in private equity, for example. How do you pair off that thinking . What is your outlook on how that might impact equity overall . Sachin recession doesnt look nearterm, as we seen from the numbers, but growth is muted. I think we will see a lot of companies, a lot of private equity firms that have portfolios which they can monetize are likely to sell in seenext 24 months as they less of opportunity and plenty of dry powder. Longerterm, they are factoring in lower growth recession. Everything you would expect as liquidity unwinds, as Monetary Policy unwinds. For us, what we are doing is trying to pick, as managers, what are likely to pivot from one product to another. Distress,ing at infrastructure, permanent capital vehicles, various different ways to invest as opposed to just one form. I think firms that really only invest in one channel is going to be challenging in the coming years. Sonali you are a big private he Equity Investor these days. A lot of warnings out there about plain vanilla, even amid some talk about summing them coming back about some of them coming back. How did people move away from this large buyout model . What is not going to work in private equitys 2. 0 phase . Sachin i think it comes back to some basic fund metals. If you are buying Good Companies on top of market prices, we seen that those things unwind, but i think you need a much more complicated situation. Firms doing deals that others really cant do, maybe because they have scale more complicity in the way they structure the deal. Those are the sort of mechanisms that generate really strong returns. Guy can i ask you a Bigger Picture question . The fed last night, the ecb today, rates are lower for longer as far as the eye can see. Is there a danger that we see a world in which too much money ins up in the private equity space for that space to be efficient . Sachin i think that is such a long way away, its not really that element to talk about. I think still, private equity is really colorado is really under allocated to. If you look at putting capital into infrastructure, and two high street firms, i think that is a long way away. I think we are really only get the beginning of a strong secular trend that is going to boost private equity as an asset allocator, and its needed. If you look at Pension Funds and endowments, they are getting returns from private equity that is allowing them to service their liabilities. Im not sure what youre talking about is really going to happen anytime soon. Guy i am just curious because over the last 10 years, the s ps annualized return is somewhere around 10 . Does being driven a lot by Central Banks cutting rates. Central banks are just going to leave rates on the floor. Im wondering where you see asset allocator is going, how much of it is going to go towards private equity, how much is going to liquid assets. Im curious as to what you see the next 10 years generating. Sachin i think allocations to private equity will increase, and we are seeing that. Right now, for example, you have muted growth, relatively high valuations across the market, and Political Uncertainty that you guys cover so will. And yet, allocations to private equity are growing. Why are they growing . They are growing because they are performing. As longest they perform and they capital funds,p sovereign wealth funds, etc. Meet their obligations, you will see them increasing. Remember, they are starting from a very low base. 10 years ago, there were tiny allocations from private equity. Going forward, you will see that normalize somewhat. Vonnie how are you looking at next years elections . It is clear that some of the democrats would come down pretty hard on private equity. Are you factoring that in yet . Sachin it is a bit difficult to understand because if you look at the numbers and what private equity is doing, it is overwhelmingly supportive of what they are doing. If you look at job creation, business vonnie well, what is the private Equity Industry going to view it as . Sachin if you look at the very low level of bankruptcies, it is overwhelmingly supportive. I think the competition is these firms are five to 10 times larger now than they were in the last recession, so theres naturally more of a dialogue around them because they are more of a factor in the economy. So what i think you will see is there communication opening up and talking a little bit more about what they are doing with Portfolio Companies, what theyre are doing in communities, etc. You are seeing that when you listen to their earnings calls. I would be surprised if any of the rhetoric we have seen translates into a real impact. Vonnie all right. We will leave it there for now. Thank you for visiting us today. That is sachin khajuria, founder of achilles management. Our thanks also to bloombergs sonali basak. Guy coming up, wall street goes south on lululemon. The athletic Clothing Brand is reporting another quarter of doubledigit sales growth. Wasnt enough to boost the stock today. We have an exclusive conversation with the companys leadership. Thats coming up next. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Our stock of the hour is lululemon. Shares are falling after the Fourth Quarter earnings outlook left some analysts disappointed, despite strong quarterly performance. Abigail doolittle has a look at the stock now. Abigail it was really pretty solid. They beat on earnings, sales, comps up 16 higher than the estimate. That was the eighth straight quarter of doubledigit gains for comps, amazing giving the price point of some of their items. All of this good. Online also great. It is very profitable. Margins for their online sales, 29 versus 26 instore and total. That is every thing that is good. But theres a big but coming, as you could imagine, and that has to do with that fourthquarter guidance. What makes it so interesting, it is not a huge guide down. However, the stock up into today more than 90 , almost a double. When you have that kind of stock gain, some investors are looking for perfection. The range they gave, 2. 10 to 2. 13, versus the street at 2. 13, just not enough. You have to imagine some Portfolio Managers who were in this stock that are taking some chips off the table, even though there arent really any truly clear signs of big weakness ahead. Vonnie exactly. 80 yearoveryear, not bad. Abigail not bad at all. I would take that. Vonnie abigail doolittle, thank you for that. Youre staying with lululemon because in a bloomberg exclusive, jason kelly spoke with the companys lead director about whether they are a model for future private equity investment. Take a listen. We dont have the expectation that all of a sudden, magic happens just because weve been successful with a particular ment. T but i think the thing would get excited about is the power of the alignment we could bring. He only own 15 of the company, and yet we were able to work with the Management Team and the board, and ultimately the shareholders to create a really powerful runway for this company. I think the idea of thinking about how we might be able to do that more broadly is something that we have begun thinking those prepositions through. Our phone is ringing, so in this regard, i think the idea that there shouldnt be any arbitrary boundaries between a private company and a public company, the idea of applying this longerterm strategy and approach is what a lot of these Public Companies need. Not every situation will be applicable. But that is at least part of the thing we have kept an open mind around. Jason i wonder about that in the same way that we are at an Inflection Point around experiences and lifestyles and things like that. It is something of an Inflection Point for private equity, where people are asking questions around adding value, looking beyond the bottom line. We are hearing that from the Business Roundtable and others. What does private equity look like Going Forward . Youve got a couple of fresh polls of capital to deploy. What are people looking for from you . David i think people are rightly concerned that we are at the peak of the economic cycle. What does that mean as you are leaning into a private Equity Industry that has grown really rapidly over the last 10 years . Thatf the things i think has given me some comfort is seeing that the industry learned a lot from the last downturn. So while you are always going to have pressure, i think theres been a tremendous stride that our industry has taken to really lean into really savvy operational strategies for their companies. So really thinking like an industrialist as opposed to a financier. That vision is part of where private equity can help think about best practices. With 75he benefit, Portfolio Companies we have around the world, we are eager to bring any of these best ideas to our companies as soon as we can. Guy bloombergs jason kelly there, in conversation with lululemons lead director david mussafer. Still ahead, saudi aramco hitting the 2 trillion mark, jumping through that critical valuation level that the crown prince wanted to hit. Thats where we close. This is bloomberg. Vonnie i from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets turn to saudi aramco. The much dissipated ipo starting this week, the stock soaring to to daily limit yesterday 1. 88 trillion after a roughly 26 billion stock sale. That overtook the likes of microsoft and apple, pushing this company to be the worlds most valuable listing. The crown princes effort to bring the crown jewel to markets brought further gains today, the evaluation at times during the session higher than 2 trillion. Alienated global investors. They werent willing to go with that price. It went up by 10 plus. It finished up just 5 , but it was a pretty successful first couple of days of trading. The crown prince probably pretty pleased with all of that. Lets turn our attention to what is happening with the trade story. Time for futures and focus. Ira epstein from the Ira Epstein Division of associates joining us from the cme. As the president changed his position in this trade deal . Hes been a little cautious as to whether or not he wants one. Sounds like he wants one now. Yes, he changed his tweet. In the past he said china wants a trade deal, but i dont know if i want one. Suddenly this morning, you were down in the dow about 50, 70 points, and a new tweet comes out. China once a trade deal, and so does the u. S. Whoa. And hes meeting today with his advisers at the white house, so he tested the water. The one thing we know, the president makes credit. Thats what he does for with the stock market is doing. Hes testing the water here. Hes taking the thunder out of the House Judiciary Committee voting on impeachment. Dollar up, the stock market to highs in three major industries, adding three basis points intraday to 1. 88 in the 10 year bond. He has 72 hours left to make a decision, but he saw what can happen. Guy its interesting you bring up the idea of misdirection. Why would the president want to do a deal with the chinese at this point if he has this card in his pocket that he can play . To divert attention from what else is happening in washington . Ira i think the reason is if the chinese are willing to give a certain amount on the agriculture amounts he wants purchased, he can walk away at christmas knowing the impeachment is happening, but hes got basically the senate in his pocket. Fors an all win situation him to end the year. Ive said it before and i will say it again, theres going to be an extension of the tariffs at a minimum if he doesnt do the deal. Hes not going to roll them all back. He will get what he wants, but this is probably a one and unfazed. I seriously doubt hes going to get anything done after this until the election takes place, and if he wins, that will put more pressure on him. Guy the comments from the axa qatari today are worth paying attention to. We will have to leave it there. Thank you very much indeed. Vonnie. Vonnie it is time now for the latest Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Apple getting a bruising in china. According to credit suisse, iphone shipments there plunged more than 34 in october. Early indications show a betterthanexpected performance for the iphone 11 model. Mcdonalds set for a highstakes labor showdown. The National LaborRelations Board is expected to rule soon in a case of hoping a case illegal firinged of prounion mcdonalds workers. Activist investor elliot management criticizing the Restructuring Plan of pg e, the bankrupt utility, saying it jeopardizes pg es longterm health. Elliott is one of pg es biggest creditors. It is up to California Governor Gavin Newsom whether to ok pg es settlement of 13 billion to wildfire victims. Killt has asked newsom to the plan. Coming come along view economics ceo and chief Market StrategistChris Watling joins us as we count down to the european close. Right now, stocks in the u. S. Are higher. The s p 500 up almost one percentage point. The dow up 0. 9 . This is bloomberg. Guy stocks jump as trump tweets that china and the u. S. Are getting closer to a deal. Signs of stabilization. New ecb president lagarde says inflation is moving in the right direction, and that they wont meet the mandate for the for siebel future. Polls are open and the you play are open in the u. K. They wont close until 10 00 p. M. We are counting you down to the european close on bloomberg markets. Bloomberg markets on bloomberg markets. Getting a nice pop in u. S. Markets. The s p 500 up 0. 9 following the president s tweet. The dow jones report that there might be some concessions made forgetting that phase i deal done. Theres met to be a white house closeddoor meeting today between the negotiators and President Trump, so we will see what emerges from that. For now, the market has a positive view of things. That said, the can see