Foreign purchases. We have the first public impeachment hearing testimony revealing the president s lawyer was digging up dirt in his shadow diplomacy in ukraine. Howi lets take a look at we are setting up when it comes to the start of trading here in sydney. Investors dealt a pretty mixed hand overnight. Stocks closing pretty close to fresh record highs. Still, uncertainty over the lingering trade negotiations continuing to chip away at sentiment. We are hearing potentially the agricultural purchases that had been a solid part of the phase i deal could be in doubt. China reportedly saying if these tariffs are not resolved, they could back away from purchasing more u. S. Soy and pork. Taking a look at the picture, just about 1 10 of 1 . Watching the labor market numbers, typically quite volatile, could be a move in the aussie dollar. New zealand, upside about 1 10 of 1 after the reserve bank of new zealand held on rates for their last meeting of the year somewhat unexpectedly, causing a surge in th\. Kiwi dollar. Some growth for japan a little later on when it comes to the u. S. Session. Looking pretty flat for the future session. A delayed openat for south korea and stocks on account of the National College exams. Lets get you the first word news with jessica summers in new york. Reporter thank you. The first public hearings in the formal impeachment inquiry into President Trump have heard from the acting ambassador to ukraine at a senior official in the state departments european and eurasian bureau. They were asked if they thought Rudy Giuliani shadow diplomacy in ukraine was intended to dig up dirt for political means and both said yes. They both denied being opponents of the president. Continuedis set for disruption thursday morning after another night of protest clashes with police. The government has ordered all Public Schools to shut for the day, the first time it has done so since the unrest began. Wednesday evening, riot police moved into clear the streets across the city. Global media has reported top officials were gathered at carrie lams residence. International Energy Agency says its forecast for Peak Oil Price is still open to change based on future government policies. The iea says it expects Global Oil Demand to plateau around 2030. The executiver told bloomberg much will depend on how the worlds leading government chooses to manage their individual Country Energy needs. If the governments take much stronger clean, efficient technologies, we may well see that the peak can happen earlier, but at the same time, if the governments going the other direction, we might see the peak later. Reporter airlines and other operations of the boeing 737 max are being warned to check any parts from a florida repair station implicated in last years crash off indonesia. The faa alert says extra space failed to keep documentation and did not follow its own rules on evaluating parts. They worked on the sensor that failed on the lion air jet that crashed, killing 189 people. Extra cooperated with the faa investigation but said it disagreed with its findings. Teslas new plant in shanghai has one permission to start mass production. It clears one of the last remaining hurdles to begin selling locally made cars in china. The first player fully owned by a foreign carmaker is a crucial crucial test of elon musks bid to sustain profitability. The firsty showed off model three s to be showed off in shanghai later this month. Global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im jessica summers. This is bloomberg. We are getting m and a news crossing the bloomberg. Internetf softbanks business, former yahoo japan, is holding final talks to merge with a messaging service, line. A 44 stake holds in the holdings. Line is controlled by a south Korean Corporation to the Parent Companies have been involved in this discussion according to the nikkei and they are talking about a potential tie up or merger. Softbank could acquire shares as part of that. We know that line struggled after its ipo in 2016. They are up about 21 rating in tokyo. Trading in tokyo. Trades. Ets turn to because President Trump has hit an optimistic tone on talks with china saying negotiations are close and moving along rapidly. That contradicts earlier reports that talks had hit a snag over agricultural products. Lets go to our editor, Sarah Mcgregor. We thought the farm purchases were the easy part of this deal. Whats going on . Reporter yes. It seems if you are confused by the farm purchases, it is a club we have all joined at this point. It really is a political football for china to use these purchases. Farmers are a big support base from trump. Theyve been some of the biggest victims in terms of the export market cut off from them. Thatnk it is no surprise if there is some disagreement purchases, it might be china figuring out how to take advantage of this, how to use this to make sure it gets the rollbacks that it wants. All that being said, we heard from trump today and he said the talks are progressing well and rapidly. I think we will all get that determination when we finally have an agreement and the two sides sit down and sign. Until then, there still a lot of uncertainty on whether this can actually be wrapped up. Chile and of course, with no longer the venue for them to meet, do we know any more details on when or how the deal can be signed or any timeline . Reporter according to donald trump, it will be signed in the u. S. There are two parties in this, and china will also want to have a say in weird the deal is signed. Even with the time difference, you would imagine its important for both sides to agree on neutral territory, perhaps a time zone that will hit the media and public at a good time, not when everyone is sleeping. Still this important aspect. We are still under the assumption the deal will be signed in a few weeks, but the longer it takes, it seems like we lose some momentum and it throws a big question mark over whether it can be signed quickly, this year, or at all. Haidi our senior trade editor Sarah Mcgregor with the ongoing trade talks. Still ahead, japan releases a slate of gdp figures. Growth is likely to have slowed. We will have reaction from bank of america see zoo may devalue. Shery the the current stance of Monetary Policy being called appropriate. Ifwill discuss the options Global Growth slows. This is bloomberg. Is bloomberg. The u. S. Economy can operate at a much level lower level of unemployment than many have thought. Its not surprising we would be learning that now, because we are at levels of unemployment we havent seen in 50 years. Monetary policy is in a good place, but we will be watching carefully incoming data and if development emerged that because of material reassessment of the outlook, we will react accordingly. Our economy is in a strong position. We have growth. We have a strong Consumer Sector. We have inflation below target. Very low and negative rates we see around the world would not be appropriate for our economy. The key to keeping this going and to it continuing our that we keep job creation at a solid level, that households retain confidence, that wages keep moving up. That seems to be the engine thats driving the u. S. Economy forward at this time. Shery fed chair jay powell signaling further rate cuts are unlikely for now. Lets discuss this with kpmg chief economist constance hunter. For him, it would be a good day. Did you hear anything new . That was a good day for him. No, i think it was interesting to hear the fed really articulate and jay powell articulate that it is sort of accomplished. We saw that in the last jobs report with the revision that the impact of the three rate cuts have started to feed through the economy and the reason they have fed through quickly is that it was such a significant shift from three rate hikes this year to a pause to three cuts. We have seen a change in mortgage rates, rates are lower. It sped through to the economy. I think there were three important things that he added and underscored. One, the terminal rate may be lower, so there is some research that could suggest it could be as low as 1 . I think the fed is opening to exporting that. Inflation remains below their target. And this is a global phenomenon. Globalook globally at Central Banks, most have not met their target more than 50 of the time. They are all less than 50 of the time. The major exceptions are australia and the bank of england because they have had currencies that have been able to weaken to get with inflation. Its not because of strong demand. I would say the third thing is how datadependent they are and how much further they think the Unemployment Rate can stay at these levels. Inflationboth points, expectations have been rising, on this chart showing the fiveyear rate rising. We have core inflation rising as well. 1. 7 , they are in the range, cp. Thats probably core withincase, inflation is a few Percentage Points of the target. I think whats interesting is they are holding onto this idea of it being symmetrical, which would imply they are willing to allow several quarters of it being above 2 . It just seems we are so far from that. I wonder when they are going to stop or drop the symmetrical language. The fact that they keep it makes me think that they anticipate that we might actually get a bump up in inflation at some point. I think thats an interesting feature of the situation. Constance, does an alleviation of trade tensions remaining for agreement change the fed trajectory . Thats an excellent question. If you look at indicators of why the economy was slowing, certainly the inverted yield curve was one of the key reasons. You think of the yield curve as taking the temperature of the economy. It tells you that it is sick if the yield curve is inverted, but not why it is sick. We looked at negative housing investment, for example. That turned around in the thirdquarter. I dont think thats trade related. Trade, that will be positive for the economy and expenditure, but i dont think we will go back to a place of 3 tariffs. We still have higher tariffs that will be punitive in trade between the u. S. And china. Does staying on hold during an Election Year fiscally look like on that side . Of how much money is spent refinancing the debt, that depends on the market interpretation of rate. Whether the yield occurred curve stays as steep it has been. The fedthe odds actually stays unchanged over the next year are actually somewhat slim. I would say its a pretty binary outcome. Id say it is possible we get that higher inflation, the symmetry that the fed is looking for, but i would be surprised if they stand pat in the face of that. Furthermore, if we get a softening of the economy, we still have a global slowdown going on. We will get german gdp tomorrow. We will see if they have a second consecutive quarter of negative growth. I think theres a lot in the mix. I think its too early to be making the call they are going year. D for the election shery constance huntershery , thank you so much for your time today, kpmg chief economist. Jay powell isnt the only fed official to reinforce a red rate cut pause message. Highlights from our exclusive with San Francisco president mary day via. President trump cared more about investigating joe biden than the fate of ukraine, according to testimony from a key witness in the first public hearing in the impeachment inquiry. Joe sobczyk has the story. Witness was acting ukraine investigator ambassador william taylor. Lets take a listen. Following the call with President Trump, the member of my staff asked song lend what President Trump thought about ukraine. He responded that President Trump cares more about the investigations of biden, which giuliani was pressing for. Shery so what were the Key Takeaways today . Reporter that was certainly one of them, a pivotal piece of testimony for both sides. Testimony puts trump much more directly involved in the Pressure Campaign that democrats say the administration was exercising on toaine, trying to get them investigate joe biden and joe bidens sons dealing with the ukrainian gas company, as well as a sofar unsubstantiated conspiracy that the ukrainians were somehow involved in the 2016 election interference. Key piece of testimony, but the republicans did pounce on it by virtue of the fact that it was a secondhand account. The ambassador relaying what an aide told him. Sondland,d by gordon the u. S. Ambassador to the eu, and has been a central player in various accounts of the ukraine affair with regards to the administration and attempts to get ukraine investigations underway. There was something certainly for the democrats, but republicans also did have a counter that sorted sort of pointed a fact that the white house is not allowing any testimony from people with direct knowledge of a lot of these events. Deputy assistant secretary of state questions. George kent also answered questions. After you answered with a the Vice President involvement did not decrease . In theect, he was ukraine for the United States. And his sons involvement did not cease . There was a possibility of a perception of a conflict of interest. Haidi can you give us more context . Did we hear the president respond . Reporter yes. This is a point the republicans turn to again and again, hunter barns role on the board of isma was a key point that trump was said to be concerned about. However, he did puncture a few of the arguments by saying that there was no evidence that there was corruption going on at that despite that joe biden, the appearance of a conflict of interest, as Vice President had done nothing to interfere with any investigations and in fact was pursuing a policy supported by both the u. S. And its allies in europe. Trump today responded to this, saying he had not been watching it, but he did also join in the that this arguments is all second and third hand information passed along. Recall anydid not such conversation with ambassador sondland, that the that he wastailed investigating or interested in investigating the bidens. We have a few more insights, at least a little bit more about a picture drawn in public for the , but thee investigation remains underway and will continue next week for more open hearings. Shery shery joe sobczyk, Congress Editor joining us from washington, d. C. Thank you for the latest twists and turns. Coming up, hong kong racing toward another day of disruption after more violence overnight. The latest developments, coming up. This is bloomberg. Haidi this is bloomberg daybreak asia. Im haidi stroudwatts in sydney. Shery im shery ahn and new york. Lets get a check of the latest business flash headlines. Alibaba has started taking investor orders for the hong kong share sale, which could raise more than 11 billion u. S. And become the citys largest Equity Offering since 2010. It is offering 500 million new aims for next week to start trading in Hong Kong November 26. Shares have risen by a third this year in new york. Haidi the ongoing protests have caused Cathay Pacific to issue a second warning in less than a month. It is continuing to struggle with a slumping number due to the violence. They say secondhalf Financial Results will be significantly lower than the first, using language even more pessimistic than last months warnings that the rest of the year would be incredibly challenging. Shery the unrest has hit canada goose as well. Shares fell the most since august after they said the protests are hurting business and would mean a fallen revenue this quarter. Newser shares had risen on that sales in asia were robust with global revenue rising 28 to 220 million u. S. Hong kong is set for disruption again thursday morning after another night of clashes between protesters and police. The government has ordered all Public Schools to be shut for the day and political leaders are set to have discussed Emergency Powers last night. Our chief north asia correspondent stephen is joining us. We are seeing the situation has escalated this week with violence and unrest and getting more violent and chaos. What is the latest . Reporter this could be another disruptive morning commute for those who have to get the work to work this morning. We can talk about the more mundane aspects, the logistics nightmare, and the more maudlin aspects. There was a another death overnight. We cannot at this point attribute it to the protests just yet, but i lack clad a black clad man was found in a pool of blood after a fall, presumably. A another case was a 70yearold man hit in the head with a brick and in the hospital. A 15yearold reportedly had brain surgery after a fractured skull, being hit in the head with a tear gas canister. Action ishis happening on university campuses. It is happening actually all across hong kong. In the northern parts of the New Territories where the Hong Kong UniversityChinese University of hong kong is, and it has been on lockdown the last couple of days with some of the more fierce standoffs and battles between police and students, who have gone back and barricaded campus. Es on the we are also hearing Hong Kong University president has put out a note urging students not to provoke police to come onto their campus. We are hearing other action at baptist university. Citywide university crisis, if you will, between protesters, many of them students, and the riot police. All schools, p