China wanting sanctions from shipping firms to be removed. Termsonal transparency in of how china manages its exchange rate. What is not on the table, any of the big issues the u. S. Wanted resolved at the start of the trade war. Intellectual Property Protection , market access, China Industrial subsidies. Even if we get a mini deal, the question is will that be enough to move the dial . David the bloomberg report is the currency provision will be similar to what we had with mexico. Would President Trump be willing to meet the vice premier if he was not willing to do some sort of deal . Good point. A to me it is surprising the chinese have come at all. Lets think about the backdrop to the talks. We have the nba controversy. We have the u. S. Imposing sanctions on massive Chinese Technology surveillance firms, we have the bloomberg scoop about the u. S. Pondering barriers to dollar flows, portfolio flows into china. The new music around these talks is extremely negative. It would not have surprised me if the vice premier had not got on the plane. The fact that he is here and the fact that donald trump is saying they will meet tomorrow suggests a mini deal is certainly very much on the table. David you pointed out something that might be very important. We tend to think of this as president and president xi talking. Particularly with the nba phenomenon, that controversy, it has become a much more broadbased issue in the United States. People know the nba and understand that. Might it make it more difficult for the president to come to a larger deal with china . On both sides of the aisle, there is concern about china. Tom i think that is completely right. If we think back to the beginning of the process, it was a Narrow Economic dispute. We want intellectual Property Protection, we want market access. It broadens out the technology as well. We worry about Chinese Telecom equipment, we worry about National Security risks. Now it looks like a dispute over culture, dispute over values, dispute over free speech. Everybody is watching, that makes it harder to get a deal done. David thanks so much for reporting. That is tom orlik, chief economist with bloomberg economics. Now lets turn to bill with what is going on between turkey and syria. There has been condemnation from the arab league. President erdogan is pushing back. Bill is the second full day of turkeys incursion into western syria. That has prompted International Condemnation of the move. A closeddoor Un Security Council meeting going on about that incursion. President erdogan has pushed back very strongly. He said in a threat to europe that if the criticism does not tone down he is willing to open the floodgates to millions of Syrian Refugees who have resettled in turkey, saying he will push them into europe. As you remember, when that last happen in the early days of the syrian civil war, that resulted in big political earthquakes across the continent, undermining chancellor merkels government and shook up politics and the u. K. Erdogan is trying to use whatever leverage she has to push back on a widely condemned move into syria. David that threat struck me as a potential doomsday machine for your. If they release millions of refugees into europe. Is there anything constraining president erdogan . President trump says he would wreck his economy if he goes too far. I think it is more bluster than reality in terms of what the threat is. President trump says he has a lot of sanctions at his disposal. Turkey is still a nato member and craves the role it has is the secondbiggest military in nato. Anchoring your European Partners is not the way to remain in the alliance. He is frustrated with the criticism the move is making but i do not think we are close to seeing refugees pushed into europe. David thank you for the reporting from washington. Now we go to jess in london. We are waiting with baited breath for Boris Johnson to meet with the prime mr. Of ireland. Did they make progress . Jess they did. Remember, in a week Boris Johnson will be going to brussels to see if they can strike a deal on brexit. The mood music has been getting worse and worse. Today the irish Prime Minister met with Boris Johnson in liverpool and things seem to be improving. They said they can see a pathway to a deal. People were expecting maybe they would come out saying we cannot solve this problem of what to do about the irish border. Things seem to be looking up. One journalist at the irish times has been tweeting he has heard significant concessions have been made by Boris Johnson on the irish border. Whether or not those would be accepted by the dup in Northern Ireland remains to be seen. David the question is how long is that path . He only has a week or so. Can he make concessions fast enough to get a deal . Jess that is a very good question. The eu the u. K. Is do to crash out on october 31. Out with is they came some positive statements saying we think we can still work together. Theyre not even in negotiations at the moment. They are still just talking. They are not going into the tunnel, which is what the eu calls the last stage of crunch negotiations. They are still in technical talks. The fact they come out today and say the possibility has been positive news, we see that reflected in the pound as well. David thanks to jusess shankleman reporting from london. Now we go to abigail doolittle. Trade is front and center . Abigail investors paying attention to trade. You made a good point earlier that what seemed to jump stocks higher they were flat on the open now investors wanting in on the wrist assets, President Trump saying he would be with the vice premier tomorrow. Tom orlik says he thinks it is small stuff on the table. , big deal, for various reasons is difficult, but for investors, if a mini deal happens, it is enough if we do see a big risk on day. David particularly if it causes the president to say we will not impose increased tariffs on october 15 and december 15. Abigial that would be encouraging for sure. Last week the news around huawei that some of the factors were lifted there. There is more give than some of the headlines or tweets would suggest. Another positive is the entire supply chain for apple doing well. That does have to do with trade shifts. We also have an upgrade over at cowan of some apple suppliers. That helps sentiment as well. Then you have the sense things are going well in washington, d. C. David when in doubt, call in the iphone 11. Thanks so much to abigail doolittle. We turn now to Mark Crumpton for first word news. Mark american and chinese negotiators are in washington, where they begun the 13th round of trade talks. The worlds biggest economies are deadlocked over allegations that china steals technology and pressures Foreign Companies to hand over trade secrets. Bloomberg has learned the white house will consider a partial trade deal with china. Ukraines president says his country will happily look into whether ukrainians interfered in the 2016 u. S. Elections. Asked bynsky was reporters whether there was any interference, he answered we cannot say yes or no without an investigation. President trump asked president zelensky for such an investigation in a july phone call that is at the center of an impeachment inquiry. Turkeys president does not like the criticism his country is getting for invading northeastern syria. He says if he if it does not stop, he will open the door for 3. 5 million refugees living in turkey. That would allow them to seek shelter in europe. The u. K. In island see a pathway to a possible deal on brexit. As we just reported, Boris Johnson and his irish counterpart met for lunch in northwestern england, in liverpool. The u. K. And the eu are trying to end their impasse, but time is running out to each a deal before the october 31 deadline. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. Bloomberg. David thanks. Coming up, we talk with the former House Majority leader and now prominent banker, eric cantor. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. He started in the Family Business and then climbed the ladder to be the majority leader of the house of representatives. We welcome eric cantor. I want to start with something that spans two of your careers, that is the u. S. China trade dispute. We have negotiations going on even as we speak. What effect has this dispute hat on the chinese economy in the u. S. Economy . Rep. Cantor having just been in china, i can tell you i did hear from a lot of investors and decisionmakers there that there is some reaction and consequence to the stand we are taking in the u. S. Against china. Obviously, the slow down in that country has been well reported. I would say take a look at what the impact is. Obviously our economy is much less dependent on exports to china. I can tell you from the standpoint of our company, but we are seeing in the m a market there are elements in place that despite the volatility and despite the uncertainty in the trade agreement, there is still a robust outlook in terms of dealmaking. In thised the year company slower than we had expected on the heels of a rate increase last year by the federal reserve. In the second half of the year we are looking at a much more positive environment. Obviously with still uncertainty around the trade agreement, but for m a we are seeing with low rates persisting, that is obviously access to capital helping the thought process around m a. We are also seeing, frankly, the role of technology and all of that playing to try to spur along dealmaking. Powellwe hear from jay there is a lot of uncertainty among the Business Community which is having a dampening effect on the economy. You are saying you are not seeing ceos hesitate to pull the trigger . I think it depends on the sector and the size of the company and whether they are multinational or not . Multinational companies we are seeing would certainly take a step back while this trade negotiation continues. There has been hesitancy as a result of the uncertainty around that. I do think that when you look at the component that we as an Investment Bank look at in terms of m a, i talk about technology fueling m a. In the mid market sector we are very active in, we still see strong signs that would lean toward more m a. You take a Family Business that otherwise may have looked at selling every 30 to 40 years. Now with the entrance of private equity and the sponsor community, they have a much more rapid timetable where advisors like us say there is obviously an appetite to transact them for more deals. When you couple that with the to take aanagement look at technology, is there company wellpositioned, all of those things tend to increase interest in dealmaking while we are still under the sort of macro uncertainty on the china trade issue, the Global Growth, and those kinds of things. ,avid we are with eric cantor former majority leader. Lets shift the focus from china to the usmca. That is pending in front of congress. We now have an impeachment inquiry Going Forward in congress. Kennett walk and chew gum at the same time was in mark kenny get that ratified while it is chewing impeachment . Rep. Cantor this is one of the Big Questions in washington. Partisanship is at a maximum. I do think the usmca will pass. I think there are incentives on both sides. Seen, nancy pelosi and Chuck Schumer are very signals very positive things for usmca. We had members on the democratic side talk to mexico recently to talk about labor provision enforcement in that country. All the while, you see the aflcio come out and say this would not be good if the usmca passed before thanksgiving. The fact of the matter is, i think everyone is looking to see a deal happen. Democrats will be concerned about the aflcio in the unions. I think as long as there is an oppositional part of those groups, you will see this past. Are a lot of economic proposals on the democrat side. Some of which affect your business and wall street. Everything from a wealth tax to Financial Transactions taxes. We have Elizabeth Warren calling private equity bad names. What do you think that could affect wall street and new york if we get a democratic candidate . Rep. Cantor i have to agree with what President Trump has said. It would be catastrophic if there is an Elizabeth Warren presidency. I think she is a total opponent of capitalism, regardless of what her rhetoric is. Her sense we need to impose upon Corporate America and businesses washington say about how they run, that is the least effective way to facilitate growth and job creation. Believe me, i served a long time in washington. Any time you put washington in the role of a capital allocator, that is a recipe for a bad outcome. Cantor. Alking with eric lets talk about ipos. You said theres not a lot of hesitation on the m a front. What about ipos . I know youre involved, so be limited you can say, but aramco. Is there any lingering effects of the Jamal Khashoggi situation with respect to saudi arabia in the marketplace . Rep. Cantor obviously we do not discuss what we do or do not do in terms of our advice to clients. In a general sense, i can tell you there is such a Firm Commitment on the part of the leadership of the kingdom of saudi arabia that that country become a major player in the global economy. Involvede, having been with u. S. Saudi relations in my other job, my prior position in congress, as well as in the private sector now, i think theres a tremendous amount of opportunity as we see leadership in that region continue to try to diversify the economy there, and we see leadership also committed to more transparency and to attracting Global Capital into the region to create jobs and create wealth. This is only the beginning. I do think they have demonstrated a real commitment to see that happen. David lets talk about policy uncertainty more broadly than u. S. China trade relations. We now have the situation with turkey and syria. The president had to take a uturn on his position with u. S. Troops. With respect to the Business Community, did that cause them to have some pause . We are not sure what u. S. Policy is, it seems to change quickly. Rep. Cantor other than the general pall of uncertainty around things washington we have all seen the impact of we woulddia what tell our clients is there is going to be a level of disruption given the nature of our political system, and frankly the unconventional nature of our president. I do think there is continued confidence on the part of the american Business Community that we are and will continue to have a legal system that affords risktaking. For those who are trying to calculate in the international arena, the more important aspect is where is Global Growth going to come from and can people make the decision to allocate capital and put it at risk on the part of shareholders and investors while you have a lot of disruption internationally, and whether that growth will continue. I think that is the think we will try and wrestle with as an advisor to clients. Cantor,alking with eric former House Majority leader. Finally, lets talk about the impeachment. We have the inquiry going on. There seems to be a spat about whether there should be a resolution going on. Positionhe number two in the house of representatives. You think there is enough evidence to say we should at least look into whether the president of the United States was asking for favors . Rep. Cantor take a step back as to what i believe. The American Public is concerned with or interested in. I do not think the question of process of a vote for impeachment versus an inquiry, versus the republicans having a subpoena right, i do not think that is on the top of mind of the american voter. What i think in the end is of most concern to people is whether there is a fair process, and whether there is overreaction on the part of the white house or whether there is complete Political Mission on the part of congress. That is where the voter will come down. In the end, mike got sense is democrats are going to want to impeach, period, and we will see acquittal in the senate. The politics will overtake. David eric cantor, great to have you with us. Se is vice chairman of moeli and company. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. It is time for the stock of the hour. Pg e is headed for its worst day since january after the company lost exclusive control of its bankruptcy process. Kailey leinz is here to tell us all about it. Kailey pg e filed for bankruptcy in ja