Joining us from sunny arizona. Your clients havent done too badly this year. Jeff its been a great year, and what a difference a year makes. Vonnie why is that, jeff . Jeff the reason for that is because this year, we had a lot of very supportive factors pushing the market higher. First and foremost, weve got a very strong and resilient consumer, and that is evidenced Online Retail sales. Next, weve got Central Banks. Central banks have been supportive and accommodative here in the u. S. And overseas. Next, weve got earnings. Earnings are looking like they are going to improve not only in the end of this year, but into next year. Finally, and probably most importantly, shortterm, weve had improvement on the trade front. It looks like we have that phase one trade deal ready in the nottoodistant future. Vonnie you say what a difference a year makes. Obviously, a lot could happen in the coming year as well. What are the greatest risks for 2020 . Jeff the greatest risks we see are policy risks. Central bank policy errors, and then trade issues. On the central bank side of that, we believe those risks are very minor, and thats because Central Banks have been in this easing and accommodative mode here in the u. S. And worldwide, and if you look at worldwide rates, global rates have really fallen this year. 2019, 67ird quarter of rate cuts worldwide. That is the most since the great recession. We move over to trade policy. Thats more of a wildcard or work in progress. It looks like we are getting relief on that, but you never know. We could be one tweet away from a reversal on that, and an escalation in the trade issue. Finally, we do have the president ial election, which is always out there. That is a factor for investors, but not so much in the near term. Vonnie you say Central Bank Policy error. What would make you believe anything Central Banks do would be an error . What is the greatest possibility of error, and where in the world would it come from . Jeff the greatest error would be a reversal in this accommodative stance. A reversal might come with and a centraling, bank in europe, japan, or emerging markets overreacting and reversing course, and raising rates faster than necessary. That would be a big central issue. Right now, Central Banks are very supportive to markets. Thats because inflation worldwide is low, and growth worldwide is tepid, but it looks like Economic Data is starting to stabilize. It improves here in the u. S. And overseas, especially in emerging markets. Vonnie when did everybody change their minds . It feels like for the longest time, everyone was complaining that the central bank was being too accommodative, sending rates lower and lower into negative territory. Todenly now people we speak want the Federal Reserve to keep rates low. Did a seachange happen . Jeff the reason why investors changed their mind is if you go back to last december, remember it was one of the worst decembers on record. That was on the back of the fed raising rates last year several times. There was really fear of recession. Central bank here in the u. S. Was on the wrong side of the trade, raising rates going into possibly a recession. So the fed reversing their stance 180 degrees and cutting rates gave investors assurance that the fed is going to be there and be supportive, and now theres really a view out there that we are not going to be giving them we are not going to be going into recession in 2020 and probably not in 22 anyone. That is probably whats changed. Vonnie so you could say the Federal Reserve did the right thing, and there should be plenty of trust in the fed . Jeff we believe the fed did the right thing. The fed really looked at the data. They listened to markets. What is most important for the fed is really inflation. Inflation just hasnt consistently been able to hit that 2 mark. As long as inflation is tame and growth is ok, but not great, the fed can be in that accommodative mode. Markets,s adjusting to and the last thing i want to mention is the yield curve. Remember at the beginning of this year, we had the issue with the yield curve, some inversion. The fed straightened out the yield curve. The yield curve looks like an upwardly sloping, healthy yield curve, and that is transmitting to investors a positive sign for credit markets. Vonnie you are actually just a little bit defensive on fixed income, but you are still portfolio, sothe what do you do about the fixed income . Jeff thats a very important issue because this year, essentially all Asset Classes went up. Equities, bonds. Bonds went up tremendously this year because of the rate cuts. So now in 2020, but we are advising our clients is that you still need to have bonds in your portfolio to provide income and stability, especially when markets get strapped. Right now, we believe it is time to really rein in the risk in your bond portfolio and focus on higher credit quality bonds rather than reaching for yield in the junkbond or lower credit quality space, in case we run into any volatility. Also, we are pretty late in the cycle here. Fixed income, that you should have a fixed Income Portfolio that acts like a fixed Income Portfolio and take the risk in the equity market. Vonnie speaking of obviously, the equity market has done well this year. 60 , ands up more than yet you are very bullish on Technology Stocks. Where would you go . Jeff thats right. Technology has had a great year, but we believe Technology Stocks can still run in 2020. Thats because theres a lot of attention and capital expenditures, especially in the software sector. Like ourrs that we companies which are levered to artificial intelligence, machine learning, and cloud computing. If you look across enterprises, they are making those upgrades to benefit from those innovative technologies. Vonnie is there any way to insulate yourself from what might be a more negative outcome to the u. S. China trade negotiation, even in terms of intellectual property or security . Jeff thats a great question. Our view on the trade negotiations the past year and a half is its been a work in progress. Its very difficult to get a Competitive Edge trading around what is going on in the trade negotiations. Many times it is two steps forward, one step back. It is a very fluid situation. With regard to insulating your portfolio against the negative outcomes that could come from trade, the best antidote for that is really to stick to your longterm plans with regard to asset allocation, and not get too rattled by shortterm volatility with regard to u. S. china trade. Vonnie jeff, thank you for joining us this morning. Jeff kravetz, u. S. Bank Wealth Management reason Oil Investment director, from scottsdale, arizona there. Lets check in on first word news. Heres of the on a hurtado. Heres viviana hurtado. Alaska public and senator Lisa Murkowski has told the washington street journal that she is disturbed on Senate Majority leader Mitch Mcconnells stance on the upcoming impeachment trial. Partya rare dissent in a that is largely behind President Trump. Swap willprisoner take place december 29. The russian and ukrainian president s agreed to the exchange at peace talks held earlier this month in paris. It remains unclear how any people will be included in the swap. In indonesia, thousands as a ring today to mark the 15th anniversary of the indian ocean tsunami, one of the worst natural disasters in modern history. 26,tsunami was on december 2004. It was triggered by a magnitude 9. 1 earthquake off the island of sumatra. About 231,000 people in multiple countries. 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 viviana hurtado. This is bloomberg. Vonnie coming up, Israels Benjamin Netanyahu facing a leadership challenge today after his failure to form a government. We are live in jerusalem, next. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is Bloomberg Markets. Lets check the markets with abigail doolittle. Abigail very small moves on this holiday shortened week. In europe, extended holiday closing those markets. In the u. S. , small gains. The s p 500, dow, and the nasdaq all extending the rally that we have seen in 2019. Another set of alltime highs. You can probably expect continued quiet trading into the end of the year. However, the santa claus rally, many are talking about the fact that santa came all year. The official santa claus rally starts today. It appears to be taking effect come about when we go into the bloomberg terminal, there may be reason to think that santa may officially pass on it. Here is a threemonth chart of the dollaryen in red. When that rises, it is risk on. It tells you the haven yen is not getting a bid, or less of a bid relative to the dollar. 500. Een, the s p the last three months have been very risk on from across asset class standpoint. However, take a look at the yen. It appears as though more so on tuesday, that still today, there could be a bit of a process that when this has happened over the last three months, weve seen the connection back down to that trendline. Should that occur, that could see stocks fall. If we see that, the santa claus rally starting today, ending next friday, might not happen. That is true for another group of the risk assets. If we look at commodities, we see gains for some of these metals, as well as crude. Copper, a tell of the global economy, gaining. Gold also higher. You have some of the growthier commodities trading higher, and gold, considered a haven, also higher. Investors bidding up lots of different assets, even with the dollar about flat. On the year, a monster rally for stocks. The s p 500 on pace for its best year since 2019. That is very risk on, but another area of the risk asset complex not doing as well, but hitting a 12 month high. This is the bloomberg commodity index. Commodities a risk asset because the signal Economic Growth and demand. The rally this year, 8 relative , suggests 500 at 28 that not everybody is a believer on 2020. But right now, you do have the commodities putting in a 12 month high come up or in this risk rally. Vonnie yes indeed. Thank you. An interesting year, absolutely. In israel, Benjamin Netanyahu is defending his leadership of the likud party after twice failing to form a government for israel this year. The challenger to his run as party leader is a former cabinet minister. Lets crossover now to our middle east Senior Writer in jerusalem. Gideon has won a number of key endorsements, but does he actually stand a chance in the race . Reporter he only stands a slim chance of winning, but as one analyst told me earlier today, the fact that netanyahu is up against his first serious rival ever shows the beginning of the end of the netanyahu regime, which is 10 years as prime minister, 20 years as the head of the likud party. Even if saar loses this time, we still have a change in the balance of power to some extent. Netanyahu is losing his hold on power, losing his shine as the kind of king of israel because he failed to form a government twice, and also because the attorney general has recommended an indictment against him. R willthe reasons saa probably not win is that the likud is very loyal to its leaders. They have never voted a leader out, and right now they see net not who is a leader besieged they netanyahu see netanyahu as a leader besieged, under attack. Uncertain things, palestine, for example, they hold the same position. Reporter some people say that saar is more hawkish then netanyahu. Of course, it is very hard to know what netanyahu really thinks, what his policy really is, because it changes according to what he needs to do to stay in power. Can you still hear me . I just lost my vonnie yes. I think we will leave it there because we got a lot of great information, although now it seems like the line might be to hear rating, so thank you. We have a few more hours in voting. 11 00 p. M. Is the official time the polls close, and it is 5 20 right now in israel, so another almost five hours of voting. Our thanks to Gwen Ackerman in jerusalem. We will be back with her after those polls close. Still ahead, an exclusive conversation with the ceo of linkedin on the companys performance in china. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is Bloomberg Markets. Lets bring you a highlight from 2019. Linkedin is one u. S. Social Media Company that does operate in mainland china. Bloombergs taylor riggs spoke exclusively to the ceo about doing business in china three years on from being acquired by microsoft. Have a listen. It is still early days for us in china. If by operating in china, you mean how we have been so successful, our vision is to create Economic Opportunity for every memory of the global workforce. Other companies who have a different sense of purpose or a different mission or overarching objective have probably found it difficult to do business in china because it is inconsistent with what it is they are trying to accomplish. The creation of Economic Opportunity is something essentially every country in the world can get behind. Our operation in china is still very early days. We have an account team in place. We have greater focus in terms of local development that we do in other markets around the world, trying to understand the market fit, the cultural differences, and we will continue to invest. Taylor do you feel any more pushback being a u. S. Tech company in china . Jeff not with regard to the nature of our business. With microsoft and some of the larger companies, theres different implications, but by the virtue of the fact that we are a professional network, the tariffs arent impacting us to the same extent. Taylor theres been a lot of talk that may be china wouldnt company, but set up more red tape, more limits, and that would put more backlash on u. S. Tech companies. Would you feel any of that . Jeff i dont know that that is anything new, per se. Compliantred to be with the law in china and a whole host of different ways, whether that is new regulation, additional friction, things beyond the regulatory purview. The committed of land scape in china is extremely intense. We continue to see that. Operating there is very different than, say, operating in the united states. That is part of our commitment to being in business in china. Taylor we have seen more and more probe investigations into big tex over monopoly, data privacy. How have you managed those headlines . Jeff we made a commitment roughly a decade ago in terms of putting our members first, which is arguably our most important codified value. Maintaining the trust of our members. Without that trust, our ecosystem really doesnt exist. We put together some First Principles with regard to how we would leverage data dating back about 10 years. Those were all about clarity, consistency, and control. As a result of not just talking about that come about walking the walk and codifying that early on in terms of how we prioritize strategies, how we execute, where we make changes, that has served our members very well, and ultimately served the company very well. Weiner linkedin ceo jeff speaking to bloombergs taylor riggs back in september. It is time for your Bloomberg Business flash now. Without the leadership of carlos ghosn, the partnership between nissan and renault is starting to crumble. Since he was arrested in november 2018, insiders at the companies sadie partners have been in a better fight that threatens the viability of both carmakers, with both of their share prices down by 1 3. Tiffany is reporting a rebound in sales, a welcome develop it for french luxury conglomerate lvmh, which is acquiring tiffany. Sales rose 1 to 3 over the and year between november 1 december 4. Tiffany has been expanding in china with a fly chip store in shanghai with a Flagship Store in shanghai. There is a rise in maritime crime in the shanghai strait. Law enforcement in that area to step up patrols. Six unauthorized people were found in the engine room of a tanker. 30 incidents have been reported this year. That is your latest Bloomberg Business flash. Still ahead, bowing in more trouble. A new batch of messages has been turned over to the federal Aviation Administration on the develop at of the 737 max the development of the 737 max. 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 live from new york, im vonnie quinn. Is is Bloomberg Markets lets check in on the first word news. Heres viviana hurtados. Heres viviana hurtado. Viviana an Aircraft Carrier sailed through the Taiwan Strait today. There are disputed claims in taiwan and the south china sea. In australia, firefighters battling bushfires are hoping to make headway before this weekends extreme heat wave. Firefighters in New South Wales are taking advantage of cooler weather. More than 70 fires are still burning. Acres have2 million been destroyed nationwide. Nine people have been killed. Interest, Notre Dame Cathedral may not be saved. The landmark is still so fragile, theres a 50 chance it may be beyond repair. Scaffolding is threatening one of the faults. This year, for the First Time Since the french revolution, notre dame couldnt hold christmas services. President trump was seen chatting without lender show its, fueling speculation with alan dershowitz, fueling speculation the veteran trial lawyer could join the president s team for impeachment proceedings. The white house isnt commenting on the palm beach compo laura conversation palm beach, florida conversation. 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 viviana hurtado. This is bloomberg. Vonnie thank you. The story is getting worse for boeing. A new batch of messages between employees is painting a very disturbing picture. Those were the weirds used by a House Committee aid those were their words used by a House Committee aid. We want to bring in brandon case from dallas. Why is it taking boeing so long to make public these messages . Brendan thats one of the big mysteries. These are messages that are a second batch of communications involving boeing employees. The first one, as you will recall, in october, had a big negative impact on boeing shares, so people are very interested on what this latest round of messages says. We still dont know exact what they say, and we dont know why boeing is only just now disclosing them to regulators. Dojie apparently the already had them come but boeing kept them away from the faa, potentially because relations were deteriorating. Is there any culpability here . Should boeing be making these widely and publicly available . Brendan that were means to be seen. It is certainly true with the earlier batch that those had been disclosed previously to the Justice Department the Justice Department. We have a little less information about the background for the new collection of messages, but that very question is looming over this quite significantly. But again, we dont know why it has taken until now for boeing to share them. Vonnie Dennis Muilenburg is gone. It is david calhouns job now to write the ship, as it were. Of a job will he do . Do we know anything about his background in terms of precedent for handling crises like this . Brendan hes been involved in a number of corporate crises, most prominently probably at caterpillar, but that is not the only one. Or the reasons the faa the boeing messages they shared with the faa are so interesting is that probably the biggest challenge he has initially is to reset the relationship between boeing and the faa, which has become very troubled. Job, he will be starting next month, one of his first moves will probably have to involve handling any kind of fallout or impact from this latest round of messages. Vonnie theres talk of mu ilenberg walking away with millions of dollars in settlements. Is there any sort of culpability there for not knowing what was going on, apparently, and for may be misleading investors and the public . Brendan we are still waiting for an official filing from boeing. That is certainly in the neighborhood of compensation that bloomberg has estimated, that others have estimated as well. They areerstand that not terminating him for calls, so presumablye, he will walk away with a package of some significance. But again, we are waiting for more details and information. Vonnie should investors be punishing boeing mark . 4. 5 up 5 this year, since this all broke. You would imagine that as things dribble out and it gets worse and worse for boeing, investors would be selling boeing shares, but clearly there is great confidence that boeing is more important even than some of its misdemeanors. Brendan it is a really interesting question. The grounding of the max has dragged on a lot longer than expected at practically every turn. Boeing was promising throughout 2019 that a solution was just around the corner. By shutting down production temporarily of the max, which , that ist next month going to have a pretty bad impact on their cash flow prospects. That said, theyve got such a big backlog that some investors are willing to bet that once they get on this crisis, they will be able to ramp up their Financial Results pretty quickly. Vonnie we shall see. Our thanks to bloombergs brendan case for jumping on the phone for us. Lets turn to u. S. Politics and the battle inside the beltway on the timeline for the impeachment trial of President Trump. Joining us from the white house is our chief washington correspondent, Kevin Cirilli. Clearly, more machinations behind the scene. What does the timeline look like now . Do we know anything about it yet . Likely, according to my sources, that the trial would start sometime in the month of january. That said, Speaker Pelosi not saying when she will hand over those articles of impeachment to mitch mcconnell, who needs to hold a majority vote before that trial can begin in the senate. One senator, senator murkowski of alaska, spoke to in this yet affiliates spoke to abc affiliates in alaska and said she was disturbed about how leader mcconnell was working in lockstep with the white house. Take a listen. Sen. Murkowski we have to take that step back from being hand in glove with the defense. Heard what leader mcconnell had said. That hasto think that further confused the process. Kevin it is unlikely that any republican would vote to convict President Trump in that senate trial, but a reminder, senator murkowski voted against republicans and opposed Justice Kavanaughs appointment to the supreme court. Christianity today, the magazine started by billy graham, has pulled its support for the president. Does that change the consideration for even to little christians . For evangelical christians . Kevin no. President trump spoke out on twitter against that editorial. You saw it play itself out during the house impeachment trial, where many of those lawmakers who represent bleat evangelical districts represent deeply evangelical thericts, would have had chance to break away from President Trump, and they didnt. In those districts, according to the reelection campaign, they view it as just a oneoff event, and dont view it as part of a broader effort. Vonnie you mentioned the president s tweet. Likeso is tweeting things they are not after me, they are after you. Brendan it is such a great point kevin it is such a great point because this impeachment story has offered a foil to President Trump and his reelection effort. The longer they feel this goes on, the more it gives President Trump an opportunity in swing states michigan and wisconsin to say while the democratcont rolled house of representatives was working to impeach him, he a numberto accomplish of economic goals. Thats where this potentially gets more interesting, whether or not the chaos coming out of congress is perceived in those districts that democrats were able to flit back in the last midterm election. Vonnie kevin, thank you. That is bloombergs Kevin Cirilli outside the white house. Coming up, our stock of the hour is dna tester qiagen. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is Bloomberg Markets. Francine lacqua spoke exclusively with Goldman Sachs ceo David Solomon at the new Economy Forum in beijing last month. She asked him about the controversy surrounding the apple credit card and about the future of digital banking. David we are building a digital bank that is primarily focused on the united states. We have taken some deposits in the u. K. Come about at the moment, we are per merrily focused on the united states. We are quite excited about the progress weve made over the last three years. Weve built the Digital Consumer intform that has 50 billion deposits, 45 million customers, 7 billion of loans. We built a credit card platform with apple that we are quite excited about, that will allow us to partner with others in the future. We had a very interesting and disruptive platform that allows us to help in a digital format with more transparency, more information, and less friction. We are cited about we are excited about what we can do over the next five to 10 years. Clients, is this new or do you cannibalize your existing clients . David we had a very highend Wealth Management business, but we really havent dealt with the everyday consumer. So this is a new business for us. New look at the client list we are attracting, there are people across all demographics, all ages. I have kids in their 20s, and theres no question they are very attracted to the digital applications. They are not typically walking into a more Traditional Bank branch, using a more traditional offering. There are people across the age spectrum that are intrigued by what we offer. We offer attractive deposit rates, less friction, and we will try to develop products that we think will make Financial Life easier for consumers with less friction and more transparency. Francine when will that be rolled out in asia . David i cant predict when and if it will come to asia. We are focused on building a really Good Business that is primarily based in the united states, and as we make progress, we will focus on whether or not it makes sense to expand in other places. Francine you mentioned your partnership with apple. A couple of weeks ago, it came under pressure because of an algorithm that was gender biased. When did you first hear about the news, and what is the next step in how to fix this . David i would start by saying we are very excited about the launch of the credit card. This partnership with apple has allowed us to offer a credit card that we think gives consumers more information, more flex ability, the ability to do more digitally, and the launch by any standard has been the most successful cobranded credit card launch to date. In our no gender bias process for extending credit. We dont ask whether, when someone applies, if they are a man or woman. We dont ask if they are married. In addition, we set up our credit processes as required under law, everyone brings into all credit card platforms a thirdparty consultant to make sure there are no unintended biases in that process. You just used the word black box. Actually, when you look at our credit process, any individual to apply for a card, we can go look at the exact specific characteristics of why a credit decision is made and communicate with them about that credit decision. One of the things we are trying to do is increase the transparency, and we are going to continue to work at that. Francine so there was no bias . David there is no bias. Theres no question that different applicants can get different results. That can be for a variety of reasons. But we are working, and we are going to be very focused on making sure people understand that when they apply individually for credit, there are a whole variety of factors that go into it. Gender is not one. It is their individual credit. We will do more overtime to deliver more transparency to our clients because that is one of the things we like about this credit card. You go on, you apply, you are immediately told what your credit line is. If you dont like your credit line, you can talk to someone, give them more information, and there could potentially be a change. We are committed to working with apple to prove that transparency. Francine where do you see Goldman Sachs in the next five years . Where are you putting your growth on, where are you putting money in . Are there units that you are retrenching . David we talked about the fact that we are trying to find opportunities to grow our client franchise and our business. We are focused on strengthening our core existing business is that weve been in for a long time. Francine not through acquisition come about through hiring . David we are looking for places where we can make investments. In any business, there are gaps where you are not performing where you would like to. The discipline of being able to go in and say, how do we improve our position, we do that. The specific thing we are doing is focusing on building a traditional consumer platform in the u. S. , expanding our Wealth Management keep abilities to a broader audience. We made an acquisition earlier this year helping us move in that direction. In addition, we are adding certain products and services that can serve our existing clients. Built aance, we Corporate Cash managing platform that the firm is now on. We used to be a client of that service. We will invite clients onto that service in the first quarter. We are making steps to expand our client franchise while adding some new businesses that we havent traditionally been focused on. Vonnie Goldman Sachs ceo David Solomon speaking with bloombergs Francine Lacqua last month. Qiagen. K of the hour is of company losing about 1 4 its market capitalization today. Taylor riggs joins us from San Francisco to tell us more. Why this decision, taylor . Taylor take a look at those shares. At one point, they were done 27 . Recovering some of their losses, just down to about 23 . This all comes after a strategic review. The Company Originally said they were looking at potential he being bought out, and then coming out on Christmas Eve and saying we are going to go on a standalone basis and really focus on our own fundamentals. Analysts and investors clearly not thrilled with that decision. Cowan was saying the shares could really be worth only about 32 a share, 35 at most. On a yeartodate basis, they have now turned negative for the year, wiping out a lot of the gains they had in november when they announced the strategic review. All this volatility really comes back to october. They cut their forward guidance. They had announced the departure of their ceo. That sent shares down to the lowest in almost three years at one point. It has really been a tough last few months for the company. Todays news certainly not helping either. Vonnie what are analysts saying . It is for the most part, not good. The analysts actually proved to be right in this case. If you take a look at where the share price was and why it fell, analysts even after the big spike up in october, analysts were hesitant to raise their price targets. The median average price target is about 36 a share. It is trading with a 31 handle. Hisr jeffries keeping stance neutral, saying the interim search for a ceo, he has confidence in it, but acknowledges this will impact results in the near term. Cowan says the ceo search will be key, but they need to go back and continue to focus on panama tells. Vonnie thank you for on fundamentals. Vonnie thank you for bringing us that. That is taylor riggs in San Francisco. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is Bloomberg Markets. Time for futures in focus. Joining me from the cme is Phil Streible of rjo futures. Oil is higher, and it is bringing the whole load of Oil Companies with it. At a lot of the ever cultural markets, and they are really pushing up. This is a great position for the farmers to begin. The corn and Soybean Prices are at very competitive prices at the moment. You look at been oil, china is increasing the amount of ethanol they are bringing in. Remember, the swine to that had devastated chinas pork and hog population, they are now starting to import some of these hogs, and they are going to need to feed them. The way they feed them is by utilizing corn and soybeans. Perfect storm going on right now for the farmers, and i think they are going to have a great start to the new year. Vonnie how do you parse all of the stories between trade with china and all of the individual client demand stories for each of these Agricultural Commodities . Phil if you look at the demand story, it is starting to pick up. We are starting to see some of the supplyside come off because of the fact that we had some adverse weather, and the demand is really starting to pick up. If you look at imports to china, we are at the highest level in months for soybeans. We are starting to see this shift where all of the agricultural markets are going up. About 410push up to for the march contract. I think we are going to push on up, so i think it is going to be a really good lift for the grain. I thing it is a market that not a lot of people are looking at. Theyve got to lift those shorts as there are still record short out of the funds. Vonnie it is obviously end of your trading to some extent. If we get more headlines between trade and the on the u. S. And china, are there big moves to be priced into some of these commodities, or will he just be incremental from here. Phil i think there will be big moves. , crudelook seasonally oil starts to take off from christmas into the end of the first week of january, and a lot of other commodities are starting to make that move. Gold and silver both broke out to the upside. Platinum, copper. You a lot of people know, with equities at record highs, and only makes sense for anyone out there to start to divest himself from equities, take some of those geopolitical and political risks off the table, and go into some of the undervalued markets that look like they are on sale right now. Gold, soybeans, they are all pushing back up to the upside. I think that is a spot to begin. Vonnie exactly. Our wtiures up 0. 1 , as crude futures. Our thanks to Phil Streible of rjo futures down at the cme for joining us today. A quiet day for markets around the globe. Not so much for the u. S. , potentially. The markets open for trading, and right now the dow is up 0. 2 at 28574. We have the s p thought the , driven byat 3234 oil company for the most part. Also some retail companies. The nasdaq also up 0. 5 to make it a triumvirate of gains among the indices. Crossing, washington advisors senior Portfolio Manager chad morganlander joins us. This is bloomberg. Vonnie markets across europe are closed today on extended holiday. In the u. S. , we are getting some moves. The s p 500 is up, continuing its advance. We are at 3233 now. His year, the s p is up almost 30 . The dow is up 22 this year. In other Asset Classes, the 10 year yield is at 1. 91 , and we have oil and gold higher as well. Crude oil up 0. 7 , 61 . 54 a barrel. The yen, interestingly, is back to where it started the year. The british pound is one of the better performers versus the u. S. Dollar this year, even with all of the turmoil in britain. I wanted to point amazon out, up 1. 9 now. It says it