Were these demonstrations over the Christmas Period targeted in small pockets or widespread . Dan mostly small pockets. Targeted at shopping malls in particular, looking to hit the retail sector, which has really been battered by six months of protests. We saw clashes at shopping malls. 20 people were injured. There is another rally tonight, in a suburban area of hong kong, and a couple over the weekend, all pointing to the big rally downtown on new years day. Matt what are the plans for that big rally, further protest . How organized is this movement . Dan the Group Organizing the een convening some of the largest rallies we have seen. There are various elements of the protesters. Siderganized side, the that tries to abide by laws, and then the frontline protesters, the ones lighting fires and battling the police, and a sort of work in parallel. On january 1, thats organized by a group that tries to get police permission. That is pending right now. We are likely to hear about 48 hours before, whether that will go forward. Either way, we expect some kind of protest on january 1, w hether the police give the goahead or not. Matt thanks very much. Dan ten kate, joining us with the very latest on whats going on in hong kong. Anjamin netanyahu has won landslide victory in the race to 72 his likud party, with of the vote after a challenge from a former cabinet minister, gideon saar. A muchneeded boost for the Prime Minister who was indicted on fraud and bribery charges in november. Netanyahu will leave the party into the third is really election in israeli election in one year. Michael joins us now. What is the significant of this latest win for netanyahu . Michael i think what it shows is the extent of his grip on the likud party. Even though he has led them to two inconclusive elections where he was not able to put together a government, and we saw this challenge to his leadership, the fact he was able to win with such overwhelming support shows theres really not appetite in the party to depose him, and they will lead the party for the next election, too. Matt heading into a third election in under a year. Does this give us any clues as to how this will go . Michael yes. What i think it says is we are probably heading to another deadlock. Netanyahuw last time, succeeded in forming this gigantic bloc of rightwing parties, 55 seats that were all sort of pledged to one another to negotiate at the head of a bloc. He was not able to quite get past the finish line, but unless theres a market change in his legal predicament between now and march, we are heading for a similar situation where neither the right nor the left can form a government. I think the opposition head, has to think really seriously about broadening his own coalition to include the labour party, perhaps some of the arab parties. To overcome the right wing bloc, he has to do the same thing on the left of the israeli political spectrum as well. Matt what does netanyahus victory mean for the chances of peace in the region . A very securen place over the decade he has led the country. Is that set to continue . Michael theres actually very little difference in diplomatic plans between netanyahu and gantz. Both say theres not a real partner for peace on the palestinian side and both see a high chance of war with iran. Two things come up. One, the possibility that if netanyahu feels his grip on power is slipping could precipitate some military engagement. Generally israeli Prime Ministers have avoided that because that is a route to being tossed out of office, but it feeling desperate, who knows what he might do. Hes also talked about annexing land in the west bank, something that appeals to his right wing voters. So i think as the next election gets closer, theres a chance we could see some dramatic announcement, especially regarding the west bank. Matt michael, thanks so much for joining us. Michael arnold, previously our Israel Bureau chief, joining us to discuss the landslide victory for netanyahu. Coming up, the art of the china deal. U. S. China trade talks dominated markets this year. Heading into a president ial election, are we expecting a complete trade deal in 2020 . And remember, Bloomberg Radio is live on your mobile device or dab digital in the london area. Definitely tune in. This is bloomberg. Until such time as there is a deal, we will be taxing the hell out of china. We have made to amend his progress. It doesnt mean we have a deal. We are now working on a new trade deal with china, but it must include real structural end unfair trade practices. The biggest deal ever made, the granddaddy of them all. Ere totally open to it we have a long way to go, in tariffs with china. We are talking to china about a deal, but i wish they didnt break the deal that we had. They very much want to make a deal. We will see what happens. Im not sure they have a choice. We are looking for a complete deal, not a partial deal. Looking for the big deal. When it comes to a deal, pretty much subject to getting it written. We willnt get a deal, substantially raise those tariffs. We have come to a very substantial phase one deal. In some ways, i like the idea of waiting until after the election for the china deal. The deal will be finalized over the next couple weeks. We made a great deal with china. Trump, talking about the u. S. China trade deal over the last months. Thats been one of the stories that dominated the markets globally this year. As of mid december, the worlds two largest economies agreed to the first phase of a broader trade agreement that will see the u. S. Reduce tariffs and at least temporarily calm fears of an escalation in the trade war between the countries. Lets look at the year in trade with our executive editor for Greater China, joining from beijing. Have leasing President Trumps we seeing President Trumps view change . And what about the possibility of a trade deal from china . You listen exclusively ll President Trump, it wi affirm quite a confusing year in 2019. The view here in beijing is that china wants a deal. The economy here is growing the slowest pace since the early 1990s. The country has done a lot to cut taxes, trying to lower barriers to various industries to try to help buoy that economy. What they dont want to do is pump a bunch of stimulus in, because theres a debt problem and worries about that. But xi jinping will not accept a onesided deal. He has a lot of political capital, but not infinite amounts, and if he takes a deal that look at china is giving too much and not getting much in return, he will not have very much political capital. Matt what are the next steps here . They sign the phase one agreement, and then what . Lighthizer, the u. S. Trade rep, said a few weeks ago he and vice premier li hue will sign a deal in early january. All signs point to that still being the case. There was some talk after President Trump said he would go to davos, that xi jinping would as well, but we reported recently president xi will skip davos, still waiting for january, probably in d. C. , mr. Hue sunny and mr. Deal. Matt how likely is a complete trade deal in 2020 . John with an election in the u. S. And what looks like a ilization in the chinese economy, you could argue it looks harder to make a phase two deal. Buting is impossible, phase one looks like it will happen, and phase two looks a lot more difficult given the remaining issues to hash out. Matt our executive editor for Greater China there, john liu out of beijing. Lets get to Bloomberg Business to london for the end gatherings leighann gerrans. Recording amazon record holiday sales. They didnt release indepth figures but a statement backed by broader reports that shopping as u. S. P this year, web sales rose 19 this Holiday Season. Apple is set for its best year in a decade, stock up 82 , adding 530 billion in market value. Gain is the market greater than the market gap of all but five companies of the s p 500. A Consumer Survey says that the are widely iphone cited as musthave items. Tiffany is preparing a rebound, lvmh is buying the brand for 16 billion u. S. Dollars. They posted a 7 increase in the asiapacific region, after a decline in the nine months through october. Int leighann gerrans, london with your business flash. While the u. S. President ial election could be a drag on pharma stocks, the regulatory outlook is clear for health equipment, and innovation could drive returns. Deutsche bank anticipates 14 major new drugs reaching the market in 2020, including medicines from novartis and novo nordisk. We spoke to Novo Nordisks ceo earlier this month. Unmetbelieve theres medical need for People Living with diabetes. It takes innovation to fulfill that. We believe we are one of the biggest innovators and that space, and we have a pipeline to the future to continue need. Ting, for that unmet more competition, is more of the field being left to you . You could say a number of one category where sanofi was a leader for many years, and increasingly growth is coming from new types of like where novo nordisk is leading and sanofi didnt manage to jump on that early enough. Its about innovation and the value that you bring to patients, addressing the needs. Half of those with type two diabetes are in need of more medicines. Matt for markets, it is about growth and profitability. We noticed shares fell 4 , probably on disappointment with u. S. Outlook. Why did that take investors by surprise, flattish growth in the u. S. . Well, we see over a few years, turning around. As long as we havea big part of our business in insulin, we are impacted by prices in the u. S. But gradually we will turn that around, and we see strong dynamics. We announced we still see price space, in the insulin impacting the shortterm, but we are positive in momentum, in a business based on innovation. Matt i know you are also positive about innovation in the hemophiliaa space. What is the strategy look like, and what sort of innovation, gene editing business, do you see yourself moving into . Shortterm, we are rolling out a portfolio of products, two long acting products in hemophilia a and b categories, and recently a deal to get into gene medicine. We believe that an opportunity down the road to bring in medicines. Id like to also underline we also have a big business, we expect to more than double it before 2025, so we have a number of businesses. With novointerview nordisks ceo earlier this month on bloomberg. Were minutes away from the open, about 11 minutes to be exact. Notext, could the 10year be on its way higher . Could yields reach 2. 5 . Manager saysn fund yes. Well get your morning call. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. Just about nine minutes from the start of cash trading, looking at futures rising across the board. But in terms of fixed income, a very interesting call from a 97 billion fund manager. Bottomed,ave yields but they could surpass 2. 25 in a matter of months. Lets go to dani burger. Dani the call comes from michael kelly, the head of multiasset at pine ridge investments, a u. K. , londonbased manager. He says the negativity cartels will break in spring 2020. That means for markets we could see u. S. 10 year yields in the next few months go from 2. 25 to 2. 5 at the high end. The pessimism fading across Global Markets in terms of what the economys doing. He does say theres a ceiling on the yields thanks to Central Banks with lower for longer mantra ingrained into their policy. Still, in terms of what markets will do beyond fixed income, he thinks stock valuations will continue to surge, seeing very strong corporate profits. He also says local currency fx, e. M. Bonds will outperform next year thanks to a steady dollar. Thanks very much. That call is one we have been talking about and will continue to throughout the program. Facebook coo Sheryl Sandberg spoke with bloombergs Caroline Hyde last month at the bloomberg discussingsummit, the 2020 election and how it was among her biggest concerns for facebook. We think the 2020 election is a massive test for us, and it should be. Elections have changed, and we have changed as a company. If you look back to 2016, of course we were prepared for state actors. What they did was take information, but this more insidious stuff, we were not prepared and everyone missed it. Thats different now. Now we work hard to find what we think of as coordinated inauthentic behavior. State actors versus people trying to do fake stuff. In 2016 we had never heard of it. In 2017 we took down one. In the last year, which again 50, seven in the last two weeks again, a very different place. Fakee going after accounts. Everything done on the ira through facebook in 2016 was done through a fake account, and we take down millions every day, mostly before anyone sees them. We didnt have a Fact Checking program at all in 2016, and now if something is marked false by thirdparty Fact Checkers we can reduce distribution and show related articles so people see the other side of the story. Some really good studies have reported fake news on facebook is definitely on the decline. The stanford study says down by more than half in 2016. And transparency. This is really important. In 20 you could only see any ad on facebook targeted at you. When you went to a page, you didnt know who was behind it. So youhave a ads library can see anything anyone is showing anyone in terms of political. Journalists use it. Team operations looking for what they will try to do next, trying to get ahead of it. So this is a major test for us. We are building on some success. 2018, the midterms were very focused. E. U. Parliamentary elections. We have had lots of election since then, but this is a big one, the highest priority for the next year. Matt that was chief operating officer of facebook, Sheryl Sandberg, speaking to bloombergs Caroline Hyde in an interview last month. Lets look at some stocks to watch, ahead of the open. Retail clearly one of them, after amazon said it had a record christmas or Holiday Season. You saw that drive the nasdaq up to over 9000. One stock on the nasdaq, one q,ock that trades on the nasda slumping after saying it would stay independent. To watch. E th is 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. Matt minute from the open of cash trading here. Top headlines. A recordbreaking christmas, after amazon says it had the strongest Holiday Season ever as the nasdaq hits 9000. Apple closes at double the price of its january low as buyers are bullish. Can demand keep up . Asd christmas chaos, protesters gear up for another demonstration in hong kong on new years day. Lets get to dani burger with the open. Dani we are seeing futures in the green. Dax, cac. U. K. Is weaker, likely because of the pound being stronger today. By all accounts, the markets are likely to pick up on the stronger Asian Session that we had. Course of course, China Industrial numbers coming in strong and the u. S. With record highs. The market is now opening. Lets see how they do. The ftse, first glance not much changed. The pound might be curbing some of that effect. The european markets coming back online after the boxing day holiday, may be attempting to catch up with record highs we saw in the u. S. A a lot of this was prompted from holiday purchases coming in strong. The markets roll in, seeing netherlands up 0. 2 . The currencies, some interesting moves. Euro very strong as the dollar falls, likely the riskon lewd at the end of the year, despite the fact move we are getting at the end of the year, despite the fact volumes are low. Lets see what individual sectors are doing on this friday. One of the final trading days. Health care mostly in the red, not surprising given this is more of a defensive sector on a very riskon day like we are having. I also want to look at energy, doing well. Oil gaining today. Thencials positive, though worstperforming sector of the decade. Green, thanks probably to apple and amazon numbers. What are the individual movers looking like . Matt we are seeing more winners and losers this friday morning. Up, only 205 down, almost a two to one ratio and still 19 left a kickoff trading. Lvmh, luxury doing fairly well this morning. A a lot of stocks that are maybe something you would have bought someone for christmas. Adidas, a gainer this morning. Another luxury goods maker. Ers and metals as well as oil. Royal dutch shell, bhp billiton allrio tinto, glencore, helping to boost the stoxx 600 in points position. Roche moving up right now, one of the biggest stocks on the index. On the downside, one of the more defensive stocks, British American tobacco off 0. 2 , taking points away from the nasdaq. Some other defensive stocks there. Diageo on the downside. An interesting moment to correct myself. Earlier i said, i stuttered, said this was a stock on the nasdaq. I looked into the bloomberg, the primary exchange for the u. S. Issue of qiagen is the new york the nasdaq. Ge, not its a big loser today in europe, as it was yesterday on the nyse in the u. S. , down over a fifth of its value, as it says it will remain independent. Qiagen in europe down more than 20 . A look at your markets. The stoxx 600 opening higher and european markets generally opening higher, indicated by futures earlier. Techs after a rally in shares in america sent the nasdaq over 9000 points for the first time. Amazon was among top performers after reporting what it called a recordbreaking Holiday Season, the strong consumer reading also pushing apple shares higher, leaving the iphone maker on track for its best annual performance in a decade. Joining us from tokyo is cross equity asia reporter. Chris, amazon didnt give us details investors would want, but said it had a record season, right . Chris not much more than that. It did add to what we had from other signs. A Mastercard Survey overnight that also suggested Consumer Spending around the retail, the holiday period was pretty strong. And of course theres the broader backdrop. That very strong u. S. Job market, a pretty solid wage sons in the u. S. , about 3 , it fits together. The tech story has been the big driver this year, and amazon has not been one of the biggest leaders. Year aboutfor the 25 or so, broadly in line with the rest of the market. One ofple, microsoft, the top 10 movers on the screen just now in europe was asml, another thats done 80 , 90 of this year. Its these guys that have been part of the preparing for the 5g , nextgeneration for smartphones, interconnectivity, and all the chips, hardware and software that goes into that that have really been the exciting place for 2019. The question, how much momentum going into next year . Matt i think i saw a reference to an upcoming 5g phone in the apple mover today. Talk to me about that stock. Its had a fantastic 2019. Chris thats right. Ins doubled from the low january. You look at how its done in the last several years, its hard to imagine this is a stock that could have doubled this year. Everybody was saying, where is the big new product from apple, the next iphone isnt all that different than the last one. But they have been very good at monetizing services and sustaining replacements for their iphones, and these guys clearly are big winners in the stock market as well. Matt they have done well apparently with the airpod pro, a 250 set of earphones. Let me ask about online, holiday sales. I saw the Mastercard Spending in theata show web sales u. S. Grew 19 compared to last year. It is a big jump, but i cant believe online sales only makeup 15 of retail sales in 2019. You have to be careful about some of these industry surveys. Even the amazon one, to be honest. Because they dont necessarily dovetail with the broader macro data. When we get december retail hen we get month, w fourthquarter gdp and look at the Consumer Spending numbers, those can be out of sync with some of these are readings that are only looking at a few days. There can be all kinds of hings. Ent tgi how was the weather, for example. Did people go last two stores because of the weather, and order more online . It doesnt necessarily tell you the broader picture. But the good thing is that the broader picture is quite solid for the u. S. Economy. It looks like growth this quarter tracking just under 2 . Not that much down from the third quarter, and people anticipate that manufacturing is going to pull out of recession next year. Here thisuest on morning who was saying the key thing to be looking for is that after we get the u. S. China trade deal signed in january, do we start to see Manufacturing Companies picking up Capital Spending . Could that then provide the next leg for corporate earnings into next year, than can justify these valuations and even take 2020 . Es up further in matt the data looks good but excellent caveat, watch out for the data points. We know what mark twain said about statistics. Well get more on the qiagen story later in the program in about 20 minutes, but just want check quickly on the stock. It is down almost 19 . It was down yesterday on the New York Stock Exchange by 26 after saying its going to go it alone. Qiagen will remain independent. Investors apparently dont love that news, wiping away a fifth of the value of the stock in the first 10 minutes of the session. The deadline for the u. K. To leave the e. U. Coming closer and the focus is turning to the next round of talks. And, the resurgence of a threat to the u. K. Financial industry. We will discuss that. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. 13 minutes into the session, looking at gains on the majority of indices. 40 of 0. 33 . Nd cac as the deadline for the u. K. To leave the e. U. Comes closer, the focus turns to the next round of talks over the future relationship. The city of london will be a bargaining chip for the e. U. , according to a report in the times. Brussels will threaten to block the citys access to european markets and put up barriers to personal datasharing, according to the paper. Thats part of a strategy to demand britains aligns with e. U. Regulations more closely and meets the timetable for the brexit talks. Bloombergs Brussels Bureau chief joins us over the phone. The city of london as leverage was perhaps inevitable, but how believable is it . It is not a surprise. The e. U. Has always been saying status ofr the city of theon depends on whether regulations are strict and thorough as the e. U. s own rules. Acknowledging the equivalence is a unilateral decision of the e. U. The e. U. Has its own regulations and the u. K. Will have to choose whether to stay aligned with tose regulations, or choose own regulations and risk losing access to e. U. Markets. London will have to balance benefit of the access to the e. U. Market with the political objective of the new government of regaining regulatory sovereignty. Matt how important are brexit talks going to be in the european agenda in 2020 . At first, brexit was incredibly important in brussels, i know. And as officials grew tired of it, it sort of fell, it seemed to fall down the list of important things for the e. U. How key is it for next year . just one of the things that will be keeping brussels busy, but it doesnt look as if it will be the e. U. s top priority. The 27 governments will devote most of their energy on agreeing and thelocs budget socalled European Green deal, sweeping reforms aimed to make europe the best climate on the continent, and trade deals with the u. S. And china, its two biggest trading partners. So dont expect life in brussels to revolve around brexit next year. Of course, agreeing on a trade deal with the u. K. Will be one of the priorities. Matt all right. Nikos, thanks so much for joining us. Bloombergs brussel chief brussels chief, joining us. Lets go back to leighann gerrans. Leighann amazon surging after reporting record holiday sales, shipping billions of items including tens of millions of amazon devices. They did not release indepth figures, but it backs up broader reports. Mastercard says u. S. Web sales rose 19 this Holiday Season. Apple is set for its biggest year in a decade, the stock up over 82 , adding 530 billion in market value, more than the market caps of all but five companies of the s p 500. Its being helped by positive Holiday Spending. Were widelyiphone cited on customer wish lists. Tiffanys reporting a rebound in sales in the runup to christmas, and good news for lvmh, buying the u. S. Brand for over 16 billion. Growth was led by shoppers in china, pushing a 7 increase in the asiapacific region. The recovery comes after a decline of profits in the nine months through october. Thats your Bloomberg Business flash. Matt thanks very much. Some of thek at bestperforming Precious Metals of the year as gold glitters. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. Im matt miller in berlin. Widelyge fund manager considered the best of his generation spoke to erik schatzker. If there is a political event, change of leadership in the white house, that goes to some of the anticapitalists, id think that would definitely trigger a bear market. Endher it would permanently the bull market, i dont know, but that would trigger it. The other thing that would trigger it, if by the end of this year we start to get enough inflation that the fed starts tightening, and the other thing, if we have a credit event. If you look at credit markets, it gets very obvious that you have a lot of bad apples out there that are not being exposed because the interest costs are so low, one of them being the u. S. Government. Were running a trillion dollar deficit. Why . Because we can. A a lot of these new professor geniuses think this is just a free lunch, but id think its one of those three events. Changea, political, b, in fed policy because, who knows you couldtion turns, come up with a theory. Ive been wrong before and i will be wrong in the future. The third, and this is more what happened in 2007, 2008, the bubble collapses on itself because things have gotten so ridiculous. I dont think we are anywhere near there, but ive been wrong before, and these things seemed to happen after elections. 2019 was an extraordinary year for investors. How did you do . Not as well as i would like. I just got into double digits last week. Im too conservative in my old age. I was wellpositioned but very timidly. Ill leave it at that. Why are you timid . You have nothing to lose. I have a lot to lose. Thats one of the reasons i am timid. When i was managing other peoples money, im a very competitive person and i felt the compulsion to take risks. Im still a competitive person, but its either that or something about my age, i dont trust myself. The last year in particular, i just never trusted this administration not to do something that would preclude me from taking positions i felt were safe and secure. Lot of unfortunately a people probably felt the same way. People have sold equities and put into bonds this year. I didnt do that. I was just timid about what i did do. But this administration, wond ering where the hell the next bomb is coming from, does not allow me to take some of the positions ive taken historically when i felt it was a oneway bet. This was always binary and a twoway bet. Not just policy uncertainty. How would you describe it . Policy uncertainty is a great term. Reasons i am pretty sanguine right now, i think we are close enough to the election, at least we can brief months. He for a few i dont expect any policy that would overwhelm a favorable stimulus and a decent economy. Matt that was billionaire investor stanley druck and miller, speaking drucken miller, speaking to erik schatzker. Gold on course for its best year since 2010, up 18 this year. Joining us is bloombergs metals and mining reporter. How has gold done so well in recent sessions, and whats the outlook for next year . Well,d has done extremely the biggest annual advances since 2010, and a multiple sectors are propelling the metal. And arade war, brexit trio of federal reserv cuts. Next year, geopolitical risks remain. The u. S. President ial election in november. The trade war. To globaldds uncertainty and a demand for a safe haven in the metal. Ubslso saw forecasts from and Goldman Sachs forecasting gold higher next year. Matt thank you so much. Sorry it was so short. Hopefully we can get more time with you next time we speak. Singapore,a, from our metals and mining reporter. A pledge of independence and a 20 slump in value. Up next, the story of whats going on with qiagen. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone wifi up there . Uhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your local xfinity store today. Matt welcome back to bloomberg markets. this is the european open. Im matt miller in berlin, 30 minutes into the trading day. The story so far for equity markets. 0. 25 , half anup hour into the session. In terms of the groups on the move this morning, basic resources. We just spoke to krystal chia, metals and mining reporter. Metals and mining doing best in in second. , oil retail doing well as gannett doing well again. Tech interestingly is off, but only a little bit, and not such a strong part of the index here in europe as in the u. S. That said, lets get bloomberg first word news, back to london and leighann gerrans. Leighann in israel, prime anister netanyahu has won landslide to lead his likud party into israels third election in less than a year. The challenge was amid a Corruption Scandal for the Prime Minister, recently indicted on charges of bribery and fraud. The Federal Reserve took 18 billion of bids in a 14 day repo operation, the Third Straight time the sale has been under subscribed, perhaps indicating Balance Sheets are nearing capacity or those needing year in funding have already secured enough. The e. U. May threaten to block londons access to european markets according to the times, saying this will come as part of postbrexit trade talks in the new year. In the philippines, the death toll of the typhoon has risen. At least 28 are dead and 12 missing after thousands had to leave their homes with flooding and landslides. The extreme weather has knocked out power to entire provinces. The typhoon is expected to leave the philippines tomorrow. Global news 20 forever today, on 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Matt thanks very much. European Health Care Stocks are on track for their best year since 1997. Analysts see reason for momentum to continue in 2020, despite the inevitable noise around the u. S. Election. Hitstart getting hard this morning is qiagen. It is down double digits. Yesterday in the u. S. It was off 6 , and today is off about a fifth of its value. Coversom munich, tim Health Care Stocks for us. What is wrong with qiagen deciding they want to go alone . Why are investors reacting so strongly . Tim sure. Its kind of a case of dashed hopes. In november, bloomberg reported Thermo Fisher was interested in taking them, and the company said they were several interested parties. Investors were hoping there would be a takeover in the 40s shot up fromy about 30. Since coming out on Christmas Eve and saying they will go it alone, the hope of those investors has been dashed and the stock is back where it was in early november. Matt if we zoom out from there, what are the key themes for health care general heading into 2020 . One that willhe get a lot of buzz is the u. S. Drug pricing debates. Year,entering an election which is sort of a double headed beast. Tothe one hand, its going be a huge topic in the months to come. The pharmaceutical companies and high prices of their drugs. But on the other hand, it provides a pretty narrow window for congress to pass anything. So the longer into 2020 we go, theres less likelihood any major legislation will clear. Pharma giantsnd, are in a safe position. Longerterm, the result of the election and rhetoric could spell big changes beyond 2020, so thats one major thing that we will come back to. Another is china. As always. In november they approved 70 new drugs to their reimbursement list, generally speaking highly innovative medicines, so thats good for highly innovative companies. Pharma giantsf also benefited in the past from older drugs that had an extended life in china. So what you will see is more energy for highly innovative stuff and phasing out drugs that use to enjoy a longer tail there. Matt what are some top you are picks you are hearing about going into 2020 . Tim a lot of buzz around novartis. They have a few big products coming out in 2020. Roche, they have a pretty exciting late stage pipeline. Both those companies have been active in m a, with Innovative New medicines, gene therapies and tools for trying to silence defective genes. Juster one, sanofi, who had their Capital Market stay in boston. Investors like to the message they were sending, phasing out some expensive, less promising areas and focusing a bit more on collagen. Matt tim loh, joining us from munich, our health care reporter. Coming up, the u. S. China trade talks dominated markets globally this year. Heading into a president ial election year, are we expecting a complete trade deal in 2020 . We will discuss. This is bloomberg. Welcome back to bloomberg markets. This is the european open. We are 39, 40 minutes almost into the trading day, looking at gains across the board. Ftse mib, 0. 3 . 0. 4 gain in germany. S. China trade deal talks have been the story dominating markets. They agreed to the first phase of a broader trade agreement that will see the u. S. Reduce tariffs and temporarily stop fears of an escalating trade war. A look at the year that has been with john liu, executive editor for Greater China, joining from beijing. We have seen President Trumps view on the trade deal changing over time. Clearly that would be concerning as a negotiation partner. What is the view from the negotiating partner in china . John the chinese want a deal. The economy here is growing at the slowest it has grown since the early 1990s. Theres lots of domestic problems. Costs. Higher labor lots of exporters are moving out to southeast asia. China wants to find a way to believe the economy buoy the economy, and easing trade tensions would be a way to do that. That said, xi jinping cannot take a deal that is too onesided. He has lots of political capital, but if he signs a deal that looks like china is giving up a lot and not getting back much, he will lose a lot of that political capital. Matt what are the next steps for the phase one, then hopefully a phase two . Trade dealjohn john ambassador lighthizer says he expects to sign a deal with the he in january. U there was talk earlier that President Trump would go to davos and xi jinping might as reported since then we xi is planning to skip davos, so looking forward to washington in early january. Matt how likely is it we get a complete trade deal in 2020 . John i think anything is possible, but it looks pretty much like the phase one part of the trade agreement is done, so we should get that. Phase two is a very different answer, with elections happening in the u. S. , wit what looks like a stabilizationh of the chinese economy, you could argue theres less incentive for both sides to get quickly to phase two agreement. Plus the issues they left on the table are probably the trickiest yet, so we will have to wait and see. Matt john, thank you for joining us. Our executive editor for Greater China, john liu, coming to us from beijing. Lets get the business flash. Leighann amazon surging after reporting record holiday sales, shipping billions of items including tens of millions of amazon devices. They didnt release indepth sales figures but the statements are back it up backup broader reports shopping is up this year. U. S. Web sales rose 19 this Holiday Season. Its best year in a adding the stock up 82 , 532 billion in market value, equivalent to the market cap of all but five companies in the s p 500. Its being helped by positive Holiday Spending and a Consumer Survey said that its airpods and iphones were musthave items on customer wish lists. Tesla signed up for 1. 6 billion of financing from chinese banks for its new factory in shanghai, as it prepares to deliver chinamade model three sedans. Yesterday, the electric carmaker shares closed at a record high, over 430 apiece. Matt thanks very much. Leighann gerrans in london, with your business flash. It has been an upanddown year for the Federal Reserve, cutting rates three times this year in the face of weakening global growth. Fed president Robert Kaplan set down sat down with bloombergs kathleen hays. You roll back the clock to june. It was not just weak global growth. Weak manufacturing growth in the u. S. , weaker than it has been since 2009, and weaker business investment, and i said we should do moderate, restraint adjustment to the funds rate to address those issues. The other thing, the curve was inverted and i felt it would be much better if we had an upwardly sloping curve. To me, the curve is a symptom that maybe our adjustments were about right, and it was not intended to solve these issues, but to adjust policy in light of these issues. I think the curve being upwardlysloping tells me we are in about the right place. The curve is a strong signal, but if it were moving again it would concern me. The fed is putting so much on the consumer, while investment has been weak. Retail sales have been decelerating. The november number was half the consensus forecast. Our Bloomberg Economics team expects holiday sales to come in at 3. 4 up, the second weakest of the cycles. What if the main engine of growth is starting to run out of gas . I dont think that will happen. Heres what i will be watching for. Ive been worried weak is this investment and weak manufacturing would seep into other parts of the economy. We havent seen that yet. Even if in any given quarter Consumer Spending is weaker, there is no doubt consumer Balance Sheets are not perfect, but they are in much better place. We have a fine job market and theres no evidence i see its doing anything but getting tighter,s which is a good tailwind for the consumer. So unless something changes causing the employment picture to change, the consumer will be solid for next year. That doesnt mean in any court they will spend, but they have the capacity to, and i think thats a pretty good underpinning for the economy. As you get ready to cast votes in 2020, inflation. At the press conference last week, jay powell said he would have to see persistently rising inflation to get on board with a rate hike. What is your position . A situationn in where we have been able to run a very tight labor force without inflation. Weve had muted inflation. I probably would have, whats great about the fomc, we all have a little different take about this. I will look at potential growth. I will look at the trends in the labor market. And yes, in addition, i will be looking at where we are versus our target. But i will look at a range of factors and Financial Stability issues in weighing whether action is appropriate, and i will be looking at that broad menu. Matt that was dallas fed president Robert Kaplan speaking to bloombergs kathleen hays. Coming up, christmas chaos in hong kong may give way to a messy new year as protests continue on the island. Well get an update next. This is bloomberg. Matt welcome back to bloomberg markets. this is the european open. We are 50 minutes into the trading day, looking at gains on the major european indices. Jack ma thinks the trade war between the u. S. And china is far from over. The alibaba cofounder says that relations between the countries could see 20 years of curb turbulence if they arent careful in how they handle trade talks. Ma spoke to bloomberg in november before china and the u. S. Reached a phase one deal. Carefully. Andtrade war, the usa inna relationship might be some turbulence for the next 20 years. We have to be very careful. I think it is so important for china and the u. S. To work together, to support the economy, keep prosperity, share technology, and for so many years china and usa are working together. When there are problems, we have to solve the problems. We should not create more problems. You said you love africa, and a bridge between china and africa. Maindo you see as the thing china can gain from africa, and vice versa, the main thing africa can gain from china . Went to africa three years ago, my first trip. I read a lot of things about africa and i thought i knew, but i came here. Im inspired by the people. So many young people. The region, the culture. I decided i would come every year to at least three or four countries and i want to visit every country in 10 years. Canuld not say how china help africa, or how africa can benefit from china, but i come as a global citizen, as an entrepreneur. Nk an entrepreneur, i thi lot of our experience and ideas and knowhow could enable and help african young people. Startile, these years, i to think, how can china help in a more efficient way . China is putting a lot of efforts in africa. ,hen i was very young, i heard doctors in my hometown had to go to africa for years, to help. I think today, china and africa, theres a lot of similarity. Africa can learn a lot from china on how china developed in the last 20 years, how to lift poverty out of that. Is there still a plan for an financial . Dont have ae plan for that yet in the shortterm. Ant financial is very profitable, growing very healthy, and there are lots of things we want to do in the intervening years, to make sure that we have enough investment for the future. And if you did list, do you know what exchange you would look at . Just like i say, we are not thinking about when to marry, so not thinking about where to marry yet. Matt that was alibabas jack ma, talking to bloomberg in november. Lets get to the story in hong kong with dan ten kate. There were big demonstrations over the Christmas Period. Talk about how bad they got in terms of violence and what the plans are for future protests. Some confrontations between protesters and police, particularly Christmas Eve, when we had 20 people injured. Theres been more clashes going on christmas day, boxing day. One protest is scheduled later tonight. Over the weekend, theres a couple, all leading up to january 1, new years day, when we expect another large rally downtown by a group that has organized some of the most iconic protests throughout the past six months. So the Police Approval is pending on that one, but if it does go forward, we expect some dramatic scenes again here in hong kong by new years day. Matt all right. We hope you stay safe. Thanks so much for the coverage throughout 2019. E, we will surely speak with you a lot in 2020. Thats it for the european open. Stay with bloomberg television. Up next is surveillance. Im heading over the radio. This is bloomberg. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Francine amazon find self on the nice list with record seasonal sales. Apple is on track for the best global stocks picked a new high. Year. Global stocks hit a new high. We prepare for january 1. Good morning, everyone. This is bloomberg