Sign it at the economic summit in july. That was postponed indefinite in chile. That was postponed indefinitely due to the protest. Then President Trump circulating they would sign that agreement in iowa or alaska or somewhere in china. Reuters reporting that they might have to wait until december. David is not just the december 15 tariffs. Yesterday the reports there might they might roll back the september ones. I wonder if it is scheduling problems or there is more to be done . Kevin i have talked with several sources working with the white house in terms of negotiating with the chinese, and what they indicated is this has been an incredibly volatile negotiation, to put it mildly. In addition to key aspects related to access to Financial Service industries in china, agricultural purchases have been on the negotiating table, with china saying they would be open to purchasing more Agricultural Products from the u. S. Lets not lose sight of the more contentious issues, including intellectual property theft. David intellectual property is something that came up in connection with the possible rollback on september 1. Some were saying at the white house that if china wants to rollback, you will have to give us more on intellectual property. We know that is a Sticking Point for the chinese. They say they might need legislation to get it done. That, it is one area where the president enjoys bipartisan support on capitol hill and pushes back against the chinese narrative that president xi would be able to outlast the trump administration, whether it be for another year or another five years. There is a sense republicans and democrats in washington have been incredibly critical for beijing over how they have handled the issue of intellectual property. David thanks so much, kevin. We welcome republican senator mike braun of indiana. We have a lot to talk you about before this happened, but lets turn to this report from reuters that any signing of a first phase agreement might be rolled until december. Do you know anything about that . Flashust saw the news moment to go. It does not surprise me. I think the chinese have been doing the two step on the negotiating process from the point where it was going to get in several months ago. They are calculating this politically back home. There economy is probably as weak as it has been. We do it from a position of strength, where they are more dependent on us that we are on them. When it comes to anything concrete, i believe you will find them fishtailing on getting it on paper. Even if they do put something on paper, i would bid sure we are verifying. They have shown us that they are not negotiating in good faith in my mind. That is because i think they are still calculating to try to do this two step right into the november 2020 elections. David the u. S. Economy is doing ok despite what is going on with tariffs. It has come off a little bit, but it is doing ok. At the same time, weve not hit the consumers as much. Are you worried about the economy or your constituents back in indiana if those tariffs go on consumer goods just before christmas . End end up that could reading a glitch, but as a main street entrepreneur, what a purred back in december of 2017 was the tax cut and jobs act. That has been what is driving the economy. That is solely responsible for why we have not slept why we have not slipped into poor economic performance. That is the one significant difference not in place for decades leading up to it. I think that underlies the strengthen our economy. I am more worried about not getting derailed more worried about that getting derailed if the other agenda takes place, which hopefully does not per through november of 2020. This is the best economy. Ive been at it for 38 years for main street america. The job producers are healthy and thriving. That is what puts us in a strong bargaining position with china. David i will make a guess the other agenda is the impeachment inquiry. Are you suggesting if that goes forward the way the democrats want, that could interfere with u. S. Economic performance . Sen. Braun not only that, but the policy agenda that stretches from the green new deal, medicare for all, free college tuition, lets maybe get rid of the electoral college, that kind of stuff is going to resonate, especially when the economy keeps doing well. I think it will do well generally through the election, and i think that is when all of the craziness when it comes to driving a partisan impeachment inquiry that occurred from the day President Trump got elected in november of 2016 to all the things they are talkingthings tf they do take the reins over. There is no way we can pay for it. I guarantee it would take the economy. David we are talking with senator mike braun, republican from indiana. We talked about the u. S. China trade deal. Lets talk about the other big trade issue, the usmca. We talked last friday with the speaker of the house nancy pelosi. This is what she said. She said she did not have a majority of her caucus to go with her. Listen to what she said. It is about having agreement on the trade agreement. It all springs from what is in the trade agreement. I have gone in the past to a floor with a man i already with a minority of my members. This is about policy we are justhing that is not to pass it to pass something less that has true enforcement. David that was the speaker of the house saying she wants a majority of her caucus. At least on the enforcement side. Will she get it . When will we get the usmca approved . Sen. Braun she could do this immediately. She might be laying the blame on her caucus. An guarantee there are not there are enough blue state congressmen that needed along the line along with manufacturing across the country. Her caucus is for getting this past. She is playing political ftse because she is afraid it will be a feather in President Trumps cap. I think they will pay a political price for dragging their feet. She is orchestrating it. She can lay the blame more broadly on the caucus. I do not think that is the case. She is measuring those along with the impeachment inquiry in a calculated way that i think denies President Trump anything leading into the 2020 election good david we are talking about potential political prices. Lets talk about the appropriations not getting done. We have increased the debt ceiling and do not have the money appropriated. If we end up shutting the government, would be over the wall, and who gets the blame for that . Sen. Braun i believe we should not shut the federal government down through these negotiations. Republicans always get left holding the bag politically. Somehow, it is our fault. We are not getting any of that done. I was involved in did a lot in the private sector reforming health care, creating a great plan for my own company. All of is on the shelf. That is still the biggest issue, the cost of health care. None of that is moving in the impeachment inquiry is now occupying the limited calendar space that was there to begin with. I think there will be a political accountability for that as well. We are not getting any of the things most americans expect us to do because we are focused on other stuff. David thank you so much. Always a pleasure to have you. That is senator mike braun, republican from indiana. Now lets check on the markets. We ask how markets are reacting to world event. Maybe today there is an answer. Abigial youre right. We have something to talk about. Youre talking about a reuters headline about the possibility the u. S. And china not sign that trade deal until december. Relative to the reaction from the markets, you asked a key question to kevin cirilli, and that is whether this a matter of scheduling in place or does it tell us there is more negotiating going on. The fact that the markets are down so little suggests it is scheduling. The japanese yen, haven assets, and bonds are also rallying. You have a stealth rally for those haven assets. Deal,y deal is a delay not as good as a signed deal. What elseides trade, is weighing on the markets or lifting the markets . The markets are doing quite well. Abigial very well. This year the s p 500 up for its best year since 2013. The bulls in charge. Xeroxg story is hp q and and that xerox is interested in buying out hp you. Hp x. Hp q. Is the huge company, but carl icahn has helped a turnaround direct. Has helped a turnaround xenox. Vonnie the headline crossed david the headline crossed just a few moments ago that xerox has bid for hp. It is a fascinating story because it is two companies who have been Tech Companies on the wane saying lets get together. Abigial they are trying to combine. The idea would be cost synergies. These are two Hardware Companies and a time where software and Internet Companies are doing so much better. You put them together and they save 2 billion or 3 billion. Smart folks behind the scenes. I was mentioning carl icahn and the Companies Come together and 18 . E hp q had been up still right now, up 10 . David xerox is up as well. He did not always have the acquired and the acquirer going up. Abigial that tells you investors and traders like the idea of these two oldschool companies coming together. They could save money together and create some sort of hardware giant. Got a lot of cash out of the fujifilm deal. A little money to work with. Abigial and they have financing from citi. David thanks to Abigail Doolittle for that report on the markets. Boris johnson is heading toward an election but seems to have trouble pulling together his own party. That is coming up next. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. We turn to ritika gupta for bloomberg first word news. The agreement between President Trump and xi jinping to sign their trade deal could be delayed until december. A white house official says iowa is now unlikely to be the venue for the ceremony. Sweden and switzerland are under consideration. Meanwhile, the house of representatives will begin public impeachment hearings on President Trump next week. House Intelligence Committee chairman adam schiff made the announcement today. Three house panels have been interviewing witnesses in private over the last few weeks. Amongst them is former ambassador to ukraine. Her public hearing is scheduled for november 15. New york citys retiring Police Commissioner will not have much time off before starting his new job. James oneill will joint visa as its new Senior Vice President and global head of physical security. Oneill announced his departure from the nypd monday. He said he will be leaving for an unspecified private sector job, calling it something i cannot pass up. 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 ritika gupta. This is bloomberg. David . David thanks so much. Boris johnson launched his campaign for reelection by going to visit the queen today. He has already suffered a setback when a member of his cabinet was forced to resign. We welcome Teresa Rafael coming to us from london. Forlso had to apologize another making comments. It is not going well. A smootht has not been start for the Prime Minister. First you had Jacob Reesmogg suggesting the survivor of the greenfield tower that resulted in so many deaths were somehow responsible. Then you have the first ministerial resignation during the campaign since 1974, which complicates the conservative attempt to win seats in wales. This is a welsh secretary who resigned. It has been a rough start. That said, johnson is ahead in the polls and is trying to shift the focus onto parliament, which he blames for failing to allow brexit to be delivered and onto Opposition Leader jeremy corbyn, who he likened to stalin in an oped piece in which he said Jeremy Corbyns disdain for the private sector and Wealth Creation was similar to the soviet dictator. David the last time we had a general election called by theresa may, it did not go well. It is thought that Boris Johnson much more charismatic. Does he have high hopes for his party . Therese it is such a different scenario on all fronts, from 2017. Then you had a Prime Minister who was a fairly wooden campaigner. She called an election she did not have to call. She was up against and Opposition Leader who proved to be quite adept on the campaign trail. He was not well known. Corbyn outperformed expectations, theresa may underperformed expectations. This is just a very different situation. We now have quite a charismatic campaign driven Prime Minister, a gridlocked parliament, a public that is tired of the brexit negotiations and quite familiar with jeremy corbyn. I do not think it is that similar to 2017. That said, we may get a lot of tactical voting. There is already talk about how that might play out. Even though the conservatives are ahead in the polls substantially, i would not say this is predictable by any means. David whatever you might call Boris Johnson, you would not call him would. Many thanks to Teresa Rafael in london. I want to turn from london to saudi arabia. Saudi aramco got a boost in its ipo with news that china is contemplating buying between 5 million and 2 million worth of stock. We welcome our reporter who covers deals for bloomberg in london. This is a big leg up for an ipo that was trouble because the valuations were coming down. Dinesh thanks for having me. This is quite a big boost for saudi arabia and aramco if the chinese end up being up 10 billion of the aramco ipo. Obviously, this comes not just as a commercial decision for either party, it is also quite political. China is trying to build inroads into the middle east and saudi arabia is one of its key partners to double up its relations in the middle east. , asia is one of its key markets. If you can convince one of its key customers to put big money into the ipo, it will be a big win. David when the crown prince first went out he talked about evaluation around 2 trillion. That has come down. Of thetential interest chinese, i understand the russians have expressed interest. Could that valuation go back up toward the 2 trillion mark . Dinesh yes. Saudihe very beginning arabia has been keen on getting evaluation of at least 2 trillion, which is seen as ambitious by several investors. As we understand, saudi arabia has come down a bit on the valuation expectations. We think they are now looking at raising money at evaluation of about 1. 6 trillion, which is still quite high. Even at that number, the yield of aramco is likely to be less than the other majors. If they can get this kind of money from chinese and russians, that puts the whole situation in a different play and they can potentially get closer to that mark. 2of now, it looks like trillion is still in ambitious number. David thank you so much for that great reporting from london. Still ahead, cvs shares are higher after posting a healthy earnings report. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Time for the stop of the hour. Cvs health is heading for its best day since august after the Company Raised its 2019 profit forecast. It also posted a Strong Performance in the pharmacy benefits business. Kailey leinz is here to explain. Business ispbm called caremark. It is doing well in the quarter. In part that was due to higher claims. The other part was higher drug prices, because as we negotiate those prices with drugmakers for those clients, which include insurers. The drug pricing has been running hot and heavy on capitol hill, and a lot of the conversation has been about pbm, the role they play in this. They seem to be doing well despite that. Avid senator grassley had series of hearings. You say they are doing too well because they make a lot of money. Andey a lot of kickbacks as a result they have been in the spotlight. Theceo addressed this on call, saying the focus seems to be shifting from the pbms to the manufacturing. That is why the list pricing of the drugs are what they are. Nonetheless, they do have their rates revenue guidance for this business for the year and theyre also raising their earnings guidance. It looks like the picture for the pbm guidance could be good. David i expect manufacturers have a different point of view. There is also been news about walgreens. There might be a move to take it private. Where does that stand . Kailey it does not stand anywhere now. It has not happened. Reports are they are looking into a possible leveraged buyout. Because will be the largest ever, that is more than double the second largest deal, the street does not see it is probable. When you actually love the numbers, the math does not work. You are seeing shares underperform as a result. It also has been underperforming cvs in the long term. David cvs does better than walgreens for whatever reason. Kailey their strategy seems to be working more. Walgreens has tilted toward partnership, where cvs is doing things like buying aetna and focusing on health insurance. David great report. I learned from that. Many thanks to bloombergs kailey leinz. Up next, depositions continue behind closed doors on capitol hill even as republicans continue to call it unfair and plainly political. We ask our Political Panel whether that is right. Ons is balance of power bloomberg tv and radio. Sometimes your small screen is your big screen. And with the Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and