Eurodollar at 1. 109. If you look at government bonds across the world, they are actually advancing. This is on the back of german and chinese data. The focus is now on trade. But there is one stock we needed to look at a little bit more. 6. 1 afterining interim results. They have a new partnership with tencent. Well have more on the sector with burberry gating 6. 1 . Gaining 6. 1 . Up next, we talked to the silver lake cofounder about investing in tech. But for now, lets get straight to first word news in new york city. Boris johnson is back in Campaign Mode after a difficult visit to floodhit areas of Northern England where his response was criticized by local residents. In a speech at a factory which makes london taxis, the Prime Minister said getting brexit done would trigger a wave of investment. Jeremy corbyn, meanwhile, said he would not allow a referendum on Scottish Independence in his first term. Bloombergs latest poll average puts johnsons conservatives 11 11 points ahead of labor with the antibrexit liberal democrats at 16 . Fed chairman jay powell is pushing back at President Trumps call for lower Interest Rates, saying it does not suit the u. S. Economy. He told lawmakers that rates are on hold after three straight isuctions, but did signal he ready to act if the outlook for growth falters. His comments largely echoed the message last month when he noted continuing threats the economy. Dashed to the economy threats to the economy. Speaking to bloomberg, mary daly also echoed drum powells comments Jerome Powells comments on rates. I see the level as appropriate for the economy we have. Good Consumer Spending, good domestic momentum, but facing these headwinds which have hurt investment manufacturing. We are in a moderately accommodative stance. Hong kong has suspended all schools until sunday amidst a fourth straight day of chaos. The Financial Hub has been paralyzed since monday morning when a protester was shot. Igniting a citywide unrest. Hong kongs subway operator has partially suspended services and a few people remain in Critical Condition. And chinas economy slowed further in october. Countryss factory output, retail sales, and fixed Asset Investment all missed estimates. Investment grew at its slowest pace since 1998 with private Companies Pulling back. Meanwhile, japan has reported an unexpectedly weak third quarter. Growth in the worlds thirdlargest economy came at at at an annualized pace of 0. 2 percent, sharply missing estimates. Global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Francine . Francine germany has dodged a recession. Posteds biggest economy surprise growth but weakness is expected to persist. Joining us is our managing editor for western europe from berlin. First of all, what helped to keep up growth . They just narrowly avoided that technical recession. It came in part because of Consumer Spending, and in particular, strength in the construction industry. As we know, the building boom is continuing here in berlin. It has been such they have a frozen rent to control the increase in prices. It was on the consumer side where they have managed to contain this recession. Francine what are we worried about underneath the numbers . Looking at the corporate stories, there are quite a few job cuts. Isthe underlying concern still about global trade tensions. Of course, in the last hour, diemler said they would cut thousands of jobs to bring down spending. 10 of management positions worldwide. That continues from the point of view in the corporate side of things. One of the weak areas still in investment on the manufacturing side. They said again they are going to slow investment so we dont see any real change coming anytime soon. Francine does it mean we are going to get more fiscal stimulus . Or any . That is the concern you are hearing, for those who want that stimulus. The German Government has said ande is no crisis or need that would certainly back up argument they would have. The fact that its not something the government is keen on doing, the fact he did not dip into recession means its likely they are not quick to open up the pursestrings. We will be talking with the german finance minister olaf else in berlin and hear more olaf left Schultz Schultz and hear more from him. Francine thank you. Joining us is a Capital Market strategist. Great to have you with us. When you look at the concerns, germany is less of a concern. What does it mean for fiscal stimulus . It feels the whole ecb premise is trying to convince germany to loosen the pursestrings. On fiscal stimulus, i have a different view. I think they are doing something. Francine thats what they say. Said they are doing a slowmotion fiscal stimulus. Practice, they dont go out say we are going out with a big package. Thats not what the admitted friction will do. The administration will do. But they are picking up investment, establishing a fund for infrastructure. Make fiscal way to stimulus more palatable for the electorate and the common citizen. And they are doing also some tax cuts. They are talking about raising minimum tensions, which will indeed help the economy. Francine they are dealing with the trade war at slower demand worldwide and automobile problems. How good can the German Economy trying to be . Up . He pick that will it pick up . Will it pick up . The real issue is the automotive sector. I am not an expert, but there is really a paradigm shift and they have to deal with that we know how important that is in having in the economy automation. U. S. China,ked to but there is the realization it has to do with continents. There is not a direct impact of u. S. Trade sanctions visavis china on germany. If there is one, it is limited. Its more about confidence in trade. Francine given the economic sermons, does it put into question fact that it is one of europes powerhouses . France is doing well. Seeing some affect and some results of the reform macron did. Probably come up micron is reaping some benefits of the macron is reaping some benefits of the reform that spain is doing well and spain is doing well. The economy is integrated into the german one, so definitely, italy suffers from that. It is the opposite and italy. Exports did better than german exports, but consumption and demand is very low. Francine is the political situation stable enough that companies can grow . Do we still have a coalition that is uneasy . In italy . Francine yes. Budget law goes in the right direction. We should ask ourselves whether it goes far enough. We would like to see more structural reform coming up and we dont see that. Francine thank you so much. Stay with us, plenty coming up. Including the growing tensions in hong kong. Schools have been suspended as protesters continue to clash with police. Plus, jay powell hits pause. The fed chairman stick to his view on Interest Rates. That story later. This is bloomberg. Francine economics, finance, politics, this is bloomberg surveillance. Lets get the latest from hong kong. Protests are paralyzing the city. Schools have been suspended and the subway operator has partially suspended service. Lets go straight to our editor in hong kong. How bad is it and how bad is it compared to monday . Jodil jodi what has happened is the new normal is the weekday business of the city is disrupted. We have seen over the past five months increasingly violent clashes between police and demonstrators, but now we are seeing this happen in the central parts of the city and Financial Hub and on a daily basis. , cancellations and the subway be disrupted every day, its hard for people to get to work. Many companies are having people work from home. Meetings are canceled my big events are canceled. Really, the life of the city has changed this week. Making it this is difficult for people to make decisions or carry on with their daily lives. This also started last weekend when there was the first death from the protest of a student who had been hurt and died there a demonstration died near a demonstration. That really heated things up last weekend. That really escalated things further. Francine what can you tell us about a possible curfew . Tweet had said could impose a curfew said hong kong could impose a curfew. Jodi central times sent something out and deleted that tweet. There was speculation carrie lam would employ more emergency measures. She has hinted she will not allow this to continue and that city will take whatever steps it needs to take to try and maintain order. We have not heard anything specific about a curfew, but that has been one of the things in that toolkit. She did meet late last night with some advisors at her home. The government said it was a routine meeting, but it happened a day oft after violent demonstrations and clashes with police. Thats the other thing that has happened this week that we have not really seen yet in these months of protest. A number of universities have now become among the battlegrounds between protesters and police. Really violent clashes occurring. Some foreign students have been sent home and classes have been canceled. Some, indefinitely, so it really has been much more of a disruption to daily life than it had been previously. Francine thanks so much. Lets get straight to the Bloomberg Business flash. Daimler is set to jobs edits mercedesbenz division. They hope to save more than one billion euros following to two profitings warnings. They are grappling with the shift to self driving and electric cars. They have not specified a number of positions that will go. Soare stairs shares after its newd platform attracted 10 million customers. Fans have had months to preorder at a discounted rate. The figure surprised analysts who expected disney to need much more time. Bloomberg intelligence notes it took hbo for years to hit 10 millions of scrubbers. Bhp has named its next ceo. Henry previously led the marketing division, having joined the company in 2003. His elevation to the top job clears the way for a new executive to meet the challenges slowing growth and demand in china. That is the Bloomberg Business flash. Francine thanks so much. Trade uncertainty appears to be taking its toll on china, with the economy losing more steam. Industrial output and retail ,ales slowed more than expected reflecting how Cautious Companies have become. The weakness suggests that the efforts to break the slowdown are falling behind the curve. Still with us is our guest. When you look at growth worldwide, this is not only chinau. S. As the head of jp morgan oftench was saying, it is the graphs that suffer the most. In the standoff, who loses the most . Everybody is losing. The tension it is injecting into the World Economy is uncertainty and a lack of confidence. Direct impact on the tensioner for germany but direct impact on uncertainty and lack of confidence. Turmoil also potential which would be very damaging. If the u. S. Would impose sanctions on european goods. Sanctions are already taken, particularly on cars. Francine how much have supply chains around the world actually shifted because of this trade war . If there was an agreement, maybe more than this phase i. Do supply chains go back to normal . This is a mediuma longterm question, and i think you are right. This is a secular issue which has to do with the multidimensional aspects and trade between the u. S. And china. Some shifts in the global value chain. I think the principle of china meeting investment is meaningng in China Investment is developing in china, it could also just mean five and china is not always one of those. , dont think we will go back but once again, this is more on the mediumterm. The markets expects a phase i agreement. History, i small think if we had a venue to meet, it would be much easier. The fact that the venue has been canceled because of the trouble in santiago and that they have to find a new venue to meet will make things more, gated. More complicated. Francine im sure people would welcome them. We will get back to our guest. Coming up, we talk about the u. K. Ahead of next months general election. We get retail data out shortly. We talk retail at a brexit next and brexit next. This is bloomberg. Company is companies are coming to my office, the ceos are saying to me that paris is haveattractive because we quality in work and also quality and our business friendly. Re businessfriendly. Francine paris is continuing its push to lou were business to the country on the back of brexit. Still with us is our guest. Election,a campaign so we dont know how that will fall, but are we reducing the risk of a no deal brexit . I think this is what markets believe. Markets are really discounting that. Also, from a political point of the most foreseeable thing is that if a conservative wins the election, they will be able to make that agreement. Francine thank you so much. Coming up, satisfied with Interest Rates, the fed chair sticks to his view and signals the central bank could resume cutting if the outlook changes. We will talk about the all u. S. Consumer after concerns with manufacturing treasuries, and overall government bonds. This is bloomberg. Germanys close call, europes biggest economy in recession after surprise growth in the fourth quarter. Hong kong protests paralyze the city. Andy fed chair says Monetary Policy is where it should be as u. S. Growth continues. Good morning, everyone paid good afternoon and good evening if you are watching from asia. This is bloomberg surveillance. Im Francine Lacqua in london. We look at some of the figures with a focus on brexit. Focusing on what happens in this early election december 12. There is quite a lot of story about the fact that it is the first time the u. K. Goes to the polls in december. For that data, back to that data, october retail sales falling 0. 1 . The forecast was 0. 2 increase, so a little worse than expected. That is for the month of october. If you look at the sales but exclude fuel, the drop is even bigger, down 0. 3 . Lets check in on your biggest stock movers. Here is dani burger. The biggest mover on the stoxx 600 today, a Molecular Testing company. The diagnosing company is looking at potentially buying them. These discussions are not final by any means. Other bidders could merge, but iagen is singing seeing the biggest gain since 2002. It is at about a fourmonth intraday move in terms of magnitude. It holds up despite the unrest in hong kong. Morgan stanley says that this means their rollout is really on track. The Company Announced with the social media giant announced a partnership with the social media giant. Announcing a new strategy update, whereby 2022 they plan to cut about one billion euros in jobs and personnel at mercedes. According to city analysts, that is actually disappoints despite peersstcutting measures of disappointments seen in the price share today. Thank you so much francine thank you so much. Lets get to first word news with rithika grouped up. Ritika germany has dodged a technical reception. That recession. A technical recession. Apected a retraction contraction. Turmoil in the car making sector has led to the worst when youre factoring slump in a decade. Boris johnson is back in election Campaign Mode after a difficult visit to flood hit areas of Northern England, where his response was criticized by local residents. In a speech, the factory which u. K. London taxis, the Prime Minister said getting brexit done would trigger a wave of investment. Labor leader Jeremy Corbyn pledged he would not allow a referendum on Scottish Independence in the first term of his government. Bloombergs latest five hole average puts johnsons conservatives somewhat some 11 points ahead of labor. Hong kong has suspended all schools until sunday amid a fourth straight day of chaos. The area has been paralyzed since monday morning when a processor with a protester was shot, igniting citywide unrest. Two people remaining Critical Condition from the recent clashes. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more i am ritikantries, gupta. This is bloomberg. Francine . Francine jay powell is pushing back at President Trumps call for low Interest Rates, saying that does not fit the u. S. Economy at the moment. He told lawmakers rates are probably on hold after three straight reductions, but signaled that he is ready to act if the outlook for growth falters. His comments largely echo his message last month when he noted continuing threats to the economy. Our economy is in a strong position. Have growth, a strong consumer sector, inflation below target. And negative rates we see around the world would not be appropriate for our economy. Meanwhile, speaking exclusively to bloomberg, the San Francisco fed president echo jay powells comments. I see the level of the policy rate right now as appropriate for the economy we have, which is good Consumer Spending, good domestic momentum, but facing headwinds which have hurt business and investment manufacturing. We have a moderate of stance, and that is appropriate. Francine fabry seo, the one thing as an investor, the thing you have to get right in the next 18 months is the call for recession or not and also where information goes where inflation goes. You get that right, you get the markets right. Is there anything we are missing measuring in the u. S. Economy . Know, frankly, the picture now is clear that thats clearer than it w