The next Supreme Court justice. The senators do not vote to in the filibuster, the socalled Nuclear Option could be on the table within minutes. Lets have a look at where european equities are trading right now. Just under 30 minutes to the close. We see a little bit of a 600 weaker the stoxx at the opening following u. S. Session and some of the losses that we saw yesterday after the fed minutes and also House Speaker paul ryans commons on tax reforms. Were seeing gains. France is up. A little bit of weakness on the ftse 100. A little more quiet, sterling of just 1 10 of a percent. Euro unchanged. We did see it weaken initially on Mario Draghis comments. Sing a little bit of a mixed picture in the fixed income space. Brent crude up. Some weakness coming in to some of the metals on the london metal exchange. Zinc for example. I want to show you the distribution of Industry Groups on the stoxx 600, looking at the imap function. We are up slightly. Still, at least recouping the losses from earlier. Real estate, utilities, and Energy Leading the gains. Health care underperforming. I want to show you this chart showing the ecb for the april 2018 meeting. What we saw was the markets really reacting to what they thought was sort of some hawkish tilt from the ecb, perhaps some speculation about tapering of stimulus. A lot of people i have been into are saying, perhaps the market was premature because we have since seen the pricing, right back down on a number of dovish comments, not just today, but also last week. We had mario draghi reiterate that. The question is, where the conflict comes in with the yen. We will talk more about that in a moment. I wanted to look at the euro against the yen. Eurodollar is pretty much unchanged. We have interesting moves in this cross. Volatility, you can see really spiking there. If we look at the put premium, that has also been increasing as well will stop that one month capturing that second election round in the french elections. Perhaps this is where we are seeing the movement of that Political Risk, the concerns over Political Risk being priced in. Abigail after yesterdays reversal, yesterday we saw big gains for the major averages early in the morning and then a close that was pretty bearish. The nasdaq down. Were looking at a very small gains for the major averages today after all of this. But we have already seen lots of the threewhips around major averages, specially for the smallcap russell 2000, which minutes ago was negative. Has slipped through unchanged 11 times. Yesterday i did attend a conference for a technical conference. He was somewhat shocked by the russell 2000 yesterday. Today, we have it basically unchanged. Us investors are uncertain, not a lot of conviction, waiting for the next piece of information. What seemed to be the trigger for the action yesterday that stumped a lot of the experts at the conference on technical fomcsis was the fed, the and its. When we take a look at a chart in white, the 10 year yield in orange, the nasdaq composite, we see right around this time the fed minutes came out, initially the 10 year yield spike tire but reversed lower, taking the nasdaq with it. Here some of that intraday volatility. Investors are concerned about are they going to hike or taper the fat alsoheet . Talked about stock prices being high. We have a great chart that illustrates this. Vonnie thank you for some wonderful context. I want to let you know the senate is taking a procedural vote on no gorsuchs nomination to the Supreme Court. This battle has began as democrats filibuster the nomination. Gop leaders could invoke the Nuclear Option to avoid senate rules requiring 60 votes. We will bring you what would happen minute by minute. After that, there is a whole procedure. We will bring you details as they come in from capitol hill and you can watch it live on go bloomberg. Nejra lets stick with the markets and the latest comets from ecb president mario draghi saying it is not yet time to change the Central Banks policies stocks. Joining us now, chief investment strategist. Great to have you with us. Thank you for joining us. I just showed this chart are the market check. This is a market pricing, then pulling back. There was a little bit of a and vitamin. Raghi which way is the markets going to go based on this inconsistency we are seeing . A wonderful chart. This is the core of the problem, why we have seen this come through. On the 20th or 21st of march, there was a hike. That is a very problematic reality for the ecb. It brings to the focus what happened, which there is a communication issue coming through from inflation rising and what is the next step. Ultimately, what we saw today is these cams coming back together like in 2012, 2013. One cap wants to keep conditions easy and the other camp wants to be more in touch with reality. It depends on mr. Draghis view. It comesis is what down to. He was talking about inflation. Here i have the euro, five year, five year, inflation swaps. What is your view on where inflation goes for the eurozone, and what does that mean for Asset Allocation . Number, that is going sideways in the eurozone. That is something that is important to watch. At this moment in time, a lot of our only sort of stimulus is the monetary policy. If theres a misunderstanding about the market about the ecb plus into chen, this can tighten. You could have a situation where you have a growth and then a fault in inflation. That is something mr. Draghi wants to avoid. Madee the Federal Reserve it clear yesterday in the minutes from the last meeting they will telegraph obviously to the market when theyre are about to do things. Will that be the case as well for the ecb such that no market is going to get blindsided . I think so. I think this is the new phase where we saw Forward Guidance come into play when they were easing. It when theyll see are exiting. I think the fed is the first example of that. I think if the taper is going to be clear, i think they will be specific about how they will taper the balance sheet. I think a similar framework will be used by the ecb as well. In my view, theyre probably going to start to look at some kind of control in the eurozone to make sure there is clear information to the market on the policy intention and policy actions. Yield curve control. Fascinating. How would that work . I think this we will have to look at japan. What theyre doing, theyre using their credibility to reduce the pace of buying. Japan is buying less than before the yield curve control. I think that is something that will sound attractive to the ecb. Then they will have to think about how it is limited. There is a live example, japan, what theyre doing in asia. Nejra just to go back to the fed, the question is, are they going to taper these reinvestment gradually or stop them all at once . One reduces the risk of volatility, the other is easier to communicate. Which path would be preferable for markets . The will to me to get a tapering path. It is easy to communicate. Nejra the gradual. Gradual, in a stepbystep fashion. I think you can use, as i said, afford or desk for guidance framework. As i said, a Forward Guidance framework. Use the sameve to lands looking at these new policies, policy exits, as they come across the next few months. Nejra i want to take you to this chart. It is showing financial conditions easing, even as the fed has been raising rates. I was speaking to someone who is saying this actually is not unusual. It has happened before. That means you can learn from the past. What will this tell you about where you should be putting more money in terms of, say, equity markets . Easing, despite the fed has been hiking. Bear contrary and or which is not my view they are willing to tolerate some kind of overshoot. That is why the gradual nature comes through. We are in unprecedented times. Any communication issue can really damage conditions and have ripple effects. Looking in terms of allocation, it is a positive or progrowth driven hiking cycle so far. If game indication is messed up, that can change quickly. Nejra what does that mean for equities . There is fed angle, some support for equity coming from said policy because of the gradual nature. Where the danger for the us equities comes in is the fiscal side. I expect a lot more noise to continue. How is brexit affecting your strategy as we get more and more details now about how hard the process is going to be . I think for me, the both sides will be forced to show their cards in terms of what is on the table and not on the table. I know it is a long process, but i think this limbo we were in the last few months will start to reduce. One thing is clear from a mobile allocation perspective global allocation perspective. If you have a confrontational stance at some point, that can spill over. It is still very much an issue for u. K. Assets. Vonnie why are the market so confused right now if that is what is going on . Volatility is so low. Why isnt it higher . You raise a very important point. There are a lot of catalysts moving through that should suggest higher volatility. The critical one for me, theyre very strong idea that fiscal stimulus is coming tomorrow the day after. That isnt going to happen. Theres a lot of legislative obstacles to that. There is increasing perception of it. We will see that strength that i think over the next few days. I think that is where the complacency i see in the markets will be shaken on the fiscal side. Addingicy moves are not to it, but theyre not helping because they are hiking. Nejra thank you so much. Lets check in on the first world news. Courtney good morning. The senate is taking a procedural vote on judge gorsuchs nomination to the Supreme Court. If democrats filibuster, to be leaders good invoke the Nuclear Option to avoid senate rules to end debateotes on highcourt nominees. Stick with us for complete coverage of that vote. House Intelligence Committee chairman devin nunes has recused himself from the investigation into russia and the 2016 election. House investigators are looking into whether he made unauthorized disclosures of classified information. Nunes has been cleared criticized for sure information with President Trump for he showed it to the rest of the committee. The white house is pushing Republican House leaders to make lastminute tweaks to their obamacare replacement bill before lawmakers leave for their twoweek spring break. Paul ryan says there are working on it. While we have work to do to get all the way there, we have made Real Progress this week. That is why we are all here today. Courtney the change to the bill would pay back insurers who and expense of patients. As we have been talking about today, President Trump begins two days of meetings with the chinese president. The summit is being held in maralago, florida. President trump has vowed to deliver an ultimatum to xi to reign in north korea and also talk about trade. In europe, british prime Minster Theresa may and European Council to stay inave agreed contact drop the brexit talks. They meet today in london for the First Time Since may trigger the start of the negotiations. May whats parallel talks on the exit and on the future legendship. And hes as a trade agreement can be finalized only after u. K. Leaves the e. U. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Nejra thank you so much. Coming up, the Commodity Group is said to be considering an ipo in london. It could be the biggest offering by a russian firm in years. Details, next. This is bloomberg. Vonnie the senate lacks the votes to advance the neil Gorsuch Nomination to fill the vacancy on the Supreme Court. That means a possible Nuclear Option being triggered and run today. It is unclear exactly of the next steps. Mitch mcconnell could ask for a new vote to end debate on the judges confirmation that would point the democrats a also vote no for a second time. We will bring you complete coverage. Youre watching the floor of the senate. Stay with us for complete coverage throughout the day. Nejra lets turn to ipos and the russian Commodity Company en is considering a 2 billion offering. If the deborah seeds, it would be the biggest ipo a Russian Company since 2013. ,oining us now is ruth david reporter for bloomberg news. This is a scoop for you. Tell us about it. What is en and why would they be considering an ipo now . Is a Construction Company and the biggest stakes are the a luminal business. The commodity cycle is coming back now, which is white investors are returning to commodities which is why investors are returning to commodities stop aluminum, especially. We did a story in the middle east a couple of weeks ago. Nothing at a 3 billion ipo. Companies are thinking the commodity cycle has been dead for so long, investors are looking at as again, why dont we try ipos . If youre going to do an ipo in the sector, london is the place to be. Nejra interesting. Ofhink this was another one your stories. We love having you on. Volumesipos in london, were lower in the First Quarter. Was that because of brexit . They were the lowest since the First Quarter of 2012. European union was talking about whether greece would exit. The same concerns are there, but if you still look at london as opposed to the rest of europe, they were the highest in europe. Even inre in europe or emea and looking for a market the has the volume that has depth, youre going to come to london, which is why theresa may is in saudi arabia. You, i was going to ask because we have theresa may in saudi arabia pitching to choose a London Stock Exchange for the ipo. What are her chances and how big a deal would it be of london were to get it . Coup forld be a big london. It would make the case that london is still open for business. Last year after brexit, there were a few companies that tried to do ipos lend and london and were not able to get them through. Brexit. Blamed it on leg if you have the biggest ipo in the world coming to london, that would say something. If you also look at it, london, new york, hong kong those are very much the key markets. Where an ipo this big could happen. Nejra stiff competition. Absolutely. Nejra group david, thank you so much. Europe deals reporter for bloomberg. The latestapping from capitol hill, Senate Democrats have enough votes to initially blocked the nomination of neil gorsuch to the Supreme Court. Youre watching the rollcall continue. The 41 votes needed under current rules to keep them from advancing for final confirmation vote has been reached. Mitch mcconnell has said they will have gorsuch confirmed by friday. We will see how it plays out. Stay tuned to bloomberg. This is bloomberg. Live from bloomberg World Headquarters in new york, i am vonnie quinn. Nejra european close just minutes away. Taking steps to ensure its independence after fighting off a takeover bid from kraft heinz. They will buy back shares and sell off slowgrowing brands. Earlier today, i spoke with the ceo. Things change. We have more generation now. We will be looking at continuous m a activity to stimulate growth , but at the same time, we recognize we have the capacity to do a Share Buyback and a 12 increase in dividends. Nejra he would on to explain how he plans to restructure the company, which will include some job reductions. The efficiencies we will be driving in our Savings Program will be in procurement and on maximizing the return on investment of our marketing spend. As i mentioned, two thirds of the savings will actually be reinvested back into the business again. Undoubtedly, over the course of the next three years at were talking about with this program, there will be some job adjustments but they will mainly be at Senior Management level. Nejra shares of unilever are moving higher today on the news. They did fall initially at the European Market open. They have been trading the record high levels after the kraft heinz bid. Vonnie time for our latest Bloomberg Business first. Falling for u. S. Unemployment benefits declined to a fiveweek low according to the latest numbers. Jobless claims were down by 25,000. The biggest drop in two years. The new report will be released tomorrow. The largest cable operator in the u. S. Is getting into the wireless business. Comcast offering unlimited data on verizon for cheaper plans that on most every other competitor. 45 a month. That is likely to escalate a price war in the mobilephone business. That is your latest Bloomberg Business flash. The big news right now is the senate, the democrats have filibustered. I want to recap what is going on. Rollcall continues. The Senate Democrats have enough to block the nomination of neil gorsuch to the Supreme Court. Will we see the Nuclear Option . This is bloomberg. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. [ [ screams ] ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] nejra live from london and new york, this is the european close. Stocks are finishing up the day in european trading. Lets take you through all of the Market Action today. There has been a pheromone of action because we saw european stocks open lower following what happened in u. S. Session yesterday. The risk aversion coming into equity markets after the fed minutes and also House Speaker paul ryans comments on tax reform, some reports on that. We have seen a bit of a turnaround with a little bit of a rebound coming through on the stoxx 600. Not a huge one. Still pointing higher. As you can see, more Industry Groups gaining than declining been declining. Yield seeing the 10 year of about one basis point today. Over the past few days, and we have seen this trend through from december, the yield has been moving lower, begging the question as to whether we will see it go toward 1 and also begging the question as to whether this guilt rally has been overstretched. Some in the markets are saying gilts are among the best shorts as the cable reflation trade is alive and well. That is some of the comments we have had coming through. Old mutual saying u. K. Bonds should selloff the most on reflation bets post up unicredit with asell 10 year gilts target of 1. 5 . Others in the markets say this rally is not over done step for example, i was speaking to ubs this morning who was saying, no, this will continue. Yields will push lower. Cross asset, spain 1. 2 higher. France, up. Lower. 0 ending the day euro off. As i say, a bit of a mixed picture in the bond space. I want to show you this chart quickly. Were talking a lot about Political Risk in france. The number of cac 40 options outstanding. Absolutely jumping. At least, investors are active here even if they do see some risk coming through. Vonnie so much going on in washington as the house prepares to go on recess today and the senate tomorrow. The filibuster happening. Maralago being a place for lots of news this week and as well. We have the jobs report tomorrow. You would expect trading to be quite today. Were seeing some movement in yields after the fomc minutes yesterday. The 10 year yield is holding in range. The possibility it might break below 230. It did not. Crude oil holding up, even though we saw a big build in inventory. 51. 56. As president xi meets with President Trump come ecb offshore is as weak or strong as it ever has been. No real movement. See the markets, we can corrina is up 1. 7 . A lot of money flowing in out of tech bonds after the cap was removed by the cnb. Lets get to abigail doolittle. Today, a lot happening in d. C. Little bit ofg a intraday volatility. This is the smallcap russell 2000. Yesterday, the russell 2000 had been up 1 , then down 1 . Specialist onange a Technical Analysis conference said it was a reversal he cannot remember seeing in a long time, but worried him. We have this volatility breaking to the upside for the russell 2000. Investors do not like the uncertainty of the news coming out of d. C. They seem to be a little put off by the fed yesterday. , this is ae a look chart of the s p 500 since the election. Morell, and of trend, up than 10 . In yellow, the s p 500 50 Day Moving Average, an indication of momentum. In blue, the 20 Day Moving Average. Right around the time the fed hike rates in march, we see this range of uncertainty. Ae volatility we see them bigger form for the s p 500, weaving through the 20 Day Moving Average. Now back below it. A Technical Analyst things the s 500 will certainly test the 50 Day Moving Average in yellow. She even sings the s p 500 good move back down to 2280 as a result a really not knowing what is happening. What is an investor to do . Some are going global. ,e take a look at another chart out of the election come in blue, the s p 500 up 10 . But we have the europe index up 13. 6 . Really outperforming. This is even true over the longterm. Saiding capital recently he is going global. Over the last year, we see we or excusedexes me, since the Election Year today, excuse me, the dow of about 5 . Look at the returns. If you go global, the all world index and the europe index more than 10 . Some really outperformance from a global perspective for stock. Vonnie abigail, thank you. The latest live from capitol hill. The senate has failed to advance the nomination of neil gorsuch to the Supreme Court. The rollcall vote continues. Essentially, that vote is blocked. It will go nuclear, which means well, the exact order of the next steps could vary, but there will be a fight. Essentially, Mitch Mcconnell can call another vote. If he does not get to 60, democrats will vote no and filibuster once again at that point there will be an up or down vote. It will clear the way for gorsuchs approval, but that means the filibuster off soon will die option will die for Supreme Court nominees. Another big deal happening in florida is the resident does visit of president xi with donald trump. Kevin cirilli is in palm beach in florida. With all that is going on in washington, a scramble before a twoweek recess, what will the president and the premier speak about first . What a morning in washington. President trump is scheduled to take off with some of his most senior ministration officials, including commerce secretary wilbur ross as well as the treasury secretary Steve Mnuchin from Andrews Air Force base. They will fly down to maralago in west palm beach, florida, where they will beget a series of twoday meetings with the chinese president. This is a private set of meetings. Later this evening, they will be joined by their respective wives, including first lady melania trump, at maralago for a private dinner. Top of the agenda is National Security and trade. They will talk specifically about north korea. You will remember earlier this week, north korea tested ablest of missile that drew criticism not only from President Trump, but also from president xi. And then trade, and whether or not they will be a little find any common ground. I am told this is just the first step in a series of meetings this white house hopes to continue on with over the course of the president s first term. Vonnie it is an external really important meeting for president Party Congress a meeting later in the year, every five years they meet, and he needs to maintain credibility. He needs to win some concessions. How much of this will have been scripted in advance and how much are we likely to get something that we dont know yet . Kevin great point. I think we do get into the specifics of policy here, particularly the Global Policy of Nuclear Energy, for example, and whether or not the United States will allow for the chinese to have any role in westinghouse to glare energy plant or on the Auto Industry and whether or not this Trump Administration, which talks pretty tough against china as a currency manipulator, when candidate trump was on the campaign trail, will continue to carry that out as they look to take a look at tariffs in the Auto Industry. These are just two of the areas, Nuclear Energy and Auto Industry, that could come up during these trade negotiations. I contacted that last week, President Trump signing a series heexecutive orders in which called on his administration to take a look at all of the trade agreements in which the United States has a trade deficit with several nations, including china , to look at whether or not these nations are taking advantage of the United States. That is not going as far as he did on the campaign trail, and which he called china a currency manipulator. But it is a clear sign he is looking to be a bit more aggressive on trade agreements than his predecessors. Vonnie kevin, we will be back to you for sure. Kevin cirilli in palm beach. Yale senior fellow Stephen Roach says he will be looking for an engaging tone over confrontational one would President Trump and chinese president xi hold a joint press conference later today that we were just hearing about. Earlier today, tom keene and guy johnson asked roach what economic policies would he advise the Trump Administration to pursue with china in mind. Thatne area i think i have stressed and others have stressed, guy, is taking advantage of the fact that china is rebalancing its economy, opening up Consumer Services market on a scale and scope the a long time. Seen and so we need to focus our policies in getting access to those markets, and there is no better approach to do that than through this long and arduous negotiation for a bilateral investment treaty between the u. S. And china. The president claims to be the worlds greatest dealmaker. What better opportunity for the art of the deal done to push through on a bilateral investment treaty . All of us were engaged in the u. S. China relationship would like Nothing Better than to see Something Like that. What role does the dollar have to play in this . , again, has rate long been an area of focus for politicians. The president has incorrectly accused china of manipulating the currency. Right now they did certainly do that historically, but in the last two years, they have been trying to defend their currency from falling. And of notalse issue great strategic importance to this bilateral relationship. Tom are they manipulating the currency . Valid . No, it is not. The good news is, the treasury has now given us three metrics to define whether any country, especially china, is manipulating its currency. It is bilateral trade imbalance with the u. S. , which is large. Its current account, surplus with the world, which was large, which is now below the 3 toeshold that is perceived be worrisome. And thirdly, the direct purchases of or sales of a currency by central bank. And right now, the chinese are going the other way and have been for the last couple of years, in buying the renminbi to prevent it from falling sharply. On two of three counts, according to statutory law, is nod in 2015, there manipulation. This is not a case at all. The administration should know that if they bothered to read the statute. Think the Trump Administration would like to manipulate the u. S. Dollar . Well, the president said he definitely prefers a weaker as opposed to a stronger dollar,guy. That is political preference, rather than explicit strategy on the part of the Trump Administration. Spain years talking about currency wars. We dont talk about them so much anymore. Are they over . Do they ever exist . Currencies are a way of getting competitive advantage with its trading partners. In a world where growth is at a premium, the currency angle can be important at the margin. If growth were stronger, currency wars would be a far less consequence. Nejra that was Stephen Roach roach earlier today. Courtney house Intelligence Committee chairman devin nunes has recused himself from the panels investigation into russia and the president ial election. He has been criticized over his handling of classified materials shown to him by white house staff. Paul ryan says nunes made the right decision. It is clear this process would be a distraction to the house Intelligence Committees investigation into russian interference in our election. Chairman in this has offered to step aside as the lead republican on this particular probe, and i fully support his decision. Courtney the probe without be run by republican mike conaway of texas. In russia, the kremlin is accusing President Trump of rushing to judgment in regards to the apparent poison gas attack in syria. A kremlin spokesman told reporters him in a verified information is available about what happened and called mr. Trumps remarks premature. President trump condemned the attacks tuesday saying it was it cannot be tolerated. In other news in france, conservative president ial candidate france while does not want brexit full stop he is campaigning for tougher, more united europe that can defend itself against street must and unfair trade extremists and unfair trade. Warning would lead to chaos in the death of the union. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Nejra thank you. Just got some headlines coming through from angela merkel, the german chancellor, speaking in berlin alongside the average prime minister. Merkel saying germany and ireland are working very closely on the brexit talks, that she wants construct of talks on the the exit from the eu and was to maintain Close Relationships with the u. K. After brexit. She also said irelands role in brexit is a matter of war and peace. He saying no hard border merges with brexit. This is bloomberg. Ie vonnie this is the european close on bloomberg markets. Backing up bullishness toward china, the investor says the chinese stocks treated offshore are too expensive. Was 20 jump in tech stocks has the index at its highest in more than six years. He also told bloomberg he believes President Donald Trump may be able to claim a victory after his meeting with chinas premier. China has to say trump because he is had a failure with the health bill in congress. So i think that theyre going to come to something that will be positive for trump. In other words, trump has to announce something positive. The chinese has to give him something that he can bring to his constituents. So im reasonably optimistic because i also look at the chinese objective. Chinese dont want a disturbance. They dont want with the congress coming up. They want to have a smooth relationship with the u. S. Were talking about 340 billion deficit, trade deficit that we have got to do something about. No question. I think the chinese will come up with some answers. When it comes to the currencies, just is this mean he likely wont label china a currency manipulator . Theyre more likely to do so this month. Definitely, the currency you look at what it strange rate has been doing to the u. S. Dollar, it is way down where was a few years ago. After do something but everything else, if you take us out of the argument. Some of the currencies like the russian ruble, even others have gone stronger against the u. S. Dollar. Im not saying 100 , but there has been a strengthening trend. So i think the chinese are in pretty good position because they could easily raise the exchange rate, you know, make it stronger, and still export a heck of a lot. Chinese exports are now more techoriented, or highvalue type exports. I think the chinese will be able to make a concession on that. Mobius that was mark earlier today from hong kong. Coming up at 1 00 p. M. Eastern, our own david gura will speak with jack lew. Catch the interview on television and on radio. This is bloomberg. Are watching the european close. Time for our global battle of the charts where we take a look at some of the most telling charts of the day and what they mean for investors. As always, you can access these charts on the bloomberg by running a function featured at the bottom of your screen. Kicking things off, emma chandra. Emma you can see my chart is on the bloomberg. s meetingesident xi with President Trump in maralago in florida today, i thought we would take a look at that relationship between the u. S. And china. Donald trump is that a lot of things about that relationship, but one of the things he has it is that he is called china the grand champion of currency manipulation. I wanted to see if that was true. In the u. S. , the treasury has three criteria for determining manipulation. Bilateral trade service of 20 billion, another one that is within 3 , and consistent onesided fx intervention. And what this chart will show, china only fulfills one of those criteria. If you look at that is on the trade side of things. 250 billionover in 2016. If you look at the current account surplus, that is much chinas is below 3 of gdp a much less than other asian economies. Perhaps donald trump will have to think of other things to discuss with president xi when he speaks of them this afternoon. Vonnie i also picked the china theme. There is a little happening in washington, d. C. Returning to palm beach, president xi, should be touching down in less than an hour with his wife. I want to mention why this is so important between them, President Donald Trump and president xi jinping. About one third of the world economy, about one quarter of its trade is that between the two countries. Of course, two of the most powerful militaries in the world. I thought we would look exactly a what trade is being done. We can see the deficit got a little bit narrower, about 31 billion worth of the deficit to the United States in terms of what it trades with china. Overall in the last two years, trade has expanded. While the deficit has gotten smaller, we have imported more and exported more to china. According to our guest yesterday, you might realize it, but what we import most is not consumer goods, but electricity and things like energy. Consumer goods are in there as well. Nejra thank you so much. Both are great charts. Im going to go for vonnie this time. Vonnie thank you. Emma congratulations. Vonnie i appreciate it. You want to get back to capitol hill. The senate is reconsidering culture on limiting the debate on neil gorsuch, essentially, a second vote is predictable that the democrats will filibuster and that will trigger the Nuclear Option a little bit later today. We will bring you the results. Vonnie it is noon in new york, 5 00 p. M. In london, and midnight in hong kong. I am vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, i want to take you from palm beach to washington, d. C. And london in the next hour. Here are the top stories we are following. President donald trump heading to florida this hour where he will meet with chinese president xi jinping. It will be the first of the real test of President Trump, who promises to win negotiations with americas chief economic and military editor. U. S. Stocks are edging higher ahead of tomorrows jobs report. Energy shares, Consumer Discretionary leaving the game. And a policy could radically reshape wall street in favor of separating the Consumer Lending units of banks from the investment banking