Saudi government. Juliette Goldman Sachs and apple in a credit controversy. He got 20 times the credit limit. Juliette alibaba shatters sales records on the annual singles day. 38. 3 billion. Juliette plus the top interviews featuring bankers and central bankers from around the globe. The slowdown is a concern. I am seeing that it has bottomed out. I see the level of the policy rate as appropriate for the economy we have. Negative rates are something which hurt the economy. The Important Message for the market is these Interest Rates are low for a prolonged period. Juliette it is all straight ahead on bloomberg best. Juliette hello and welcome. I am juliette saly. This is bloomberg best. Your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. The last 22 weekends have seen mass protests and sometimes violent clashes in the streets of hong kong with monday usually being a day to recover. But this monday, unrest spilled over into the work week. Stocks in hong kong fell the most since late august as protests escalated after police shot and wounded a protester. You mainly see this kind of chaos with the tear gas in the riot police on the weekends. All over hong kong. But not usually this weekday in the middle of the day. A lunch hour kind of situation. There was tear gas, chaos in the streets. It was spurred by, as you noted, the shooting, live shots of someone early this morning. It was a day where protesters had already called for a general strike. We have seen this on weekends for five months. We have not seen it many weekdays. Weekdays, businesses have been able to operate in the central part of the city, the financial hub, without relatively too much disruption. That changed today. The s p 500 eking out a small gain. It did retreat from record highs earlier. This after President Trump not really adding much insight into the china trade negotiations. Maybe not as much as the market had been hoping for. The president said a deal between china and the u. S. Could happen soon. While also warning about the potential consequences of not reaching an agreement. President trump if we do not make a deal, we are going to substantially raise those tariffs. They will be raised substantially. If you look very hard through what was really a tour through the greatest hits of Economic Policy in the trump administration, you maybe got a little bit of a hint at some progress in the trade talks. But we did not get the news some people in the markets are hoping for. Some folks were hoping we might get an announcement of a signing date for he and xi jinping to meet. This was very light on news when it comes to trade. The markets dont seem overly excited about that. They really did not bunch very much during that speech, and that tells you we got more of the same. Steady as she goes. That was basically the message from jay powell in testimony before the congressional joint economic committee. But he said the central bank is ready to deal with any challenges. We think Monetary Policy is in a good place. But we will be watching carefully incoming data. If developments emerge that cause a material reassessment of the outlook, we will act appropriately. He did not make any news. That was his goal. The fed has done its bit. The economy is being stimulated somewhat by the fed being a little accommodative. That is about where they are going to stay as long as the economy continues to perform about as it has. There are still threats out there, particularly trade and the slowdowns in other countries. They are going to keep an eye on those things. But for now, there is not much more they can do so they will sit and wait. Juliette trade talks between the u. S. And china have reportedly hit a snag over purchases of agricultural products. Further rattling investors already on it from president already on edge from President Trumps latest terror threat. I thought the agro purchases were the most done part of the deal. They were meant to be the lowest hanging fruit. If there is one aspect of the talks that confused everyone it is what is happening with these agricultural purchases. It is politically important for trump that china knows that it. For trump to have a deal, he wants something where he can say to farmers, look at what i did for you. I have been able to secure these purchases. I do think probably china is using that to its advantage. Trade uncertainty appears to be taking its toll on china. The countrys economy losing more steam in october. Retail sales slowed more than expected. Reflecting how cautious private companies have become. Two big takeaways from economists. On one hand, they said the numbers suggest sub 6 growth. It fastens the idea that the chinese growth target for next year will be below 6 . Economists say it underscores why china needs to secure a trade agreement with the u. S. And we had a comment from the Commerce Ministry saying whatever agreement is reached will have to include a provision around the rolling back of tariffs. Hong kong faces a fifth consecutive weekday of disruption. The longrunning unrest is hitting the economy and undermining a string of public and corporate events. The frustration in the streets are gaining. That 70yearold man hit in the head by a brick, he has passed away. Also, there was lots of news yesterday that spread like wildfire that the government was preparing a curfew for this weekend, beginning presumably today. Most of the comments coming from china are from xi jinping. He is speaking in brazil. Nothing necessarily new but the fact he is speaking about the hong kong situation on thirdparty soil is significant. He says the continuing Violent Crimes have trampled on the rule of law. He is voicing steadfast support not only for the chief executive policee lam, but for the for punishing what he calls the violent criminals, even though there has not been due process. Hong kong expecting its first annual recession since 2009. The city has revised estimates for Economic Growth as political unrest shows no signs of abating. Gdp is expected to contract from 1. 3 from the previous year, according to the government. Meanwhile, Third Quarter gdp shrank 3. 2 from the previous quarter. How difficult is it to model future Economic Growth or a future recession if the protests stay as they are . Pretty difficult. It is not good for the economy. What we are seeing right now is the shops have closed early. Businesses closed. Restaurants are down. If that continues, it is obvious what the effect is. The only question is how much. Larry kudlow signaled the u. S. And china are making progress in trade negotiations, saying we are coming down to the short strokes. We are in communication with them every single day right now. Are we anywhere closer to a trade deal or are we in the most treacherous phase right now . I think we are in a messy endgame. We have been here before. We were in here in may for a bigger deal and that fell apart. But on this phase one deal, they are still hashing out some of the final issues including details of chinese agricultural purchases. Exactly what sort of intellectual property commitments they will make. And the timing of any tariff rollback, or whether the u. S. Will do any tariff rollbacks. There is a lot that can still go wrong. Right now, all the signals are we are in that endgame. Record highs, s p 500, going through the 3100 mark. We are currently seeing record highs across the board. Juliette still ahead as we review the week, the ceo of unicredit insists negative Interest Rates can have positive effects. Plus, an exclusive conversation with San Francisco fed president mary daly. I am a little bit open to the idea that the risks are on the downside. Juliette up next, more of the weeks top business stories. Disney launches its streaming service. And the first day does not exactly go magically. There are just too many people trying to get into the door too quickly. Juliette this is bloomberg. Juliette this is bloomberg best. I am juliette saly. Lets continue our global tour of the weeks top business stories in china where alibaba again staged an ecommerce blowout with its annual singles day event. Alibaba surpassing a sales record, bringing in more than 38 billion u. S. For singlesday bonanza. What were the most popular items . We have a huge number of electronics. They are pushing a lot of products through us. We have got new iphones. Those are the top of the list. It is really the headline number, 38. 3 billion worth of sales this time around. That is an increase of 26 from the year previously. Interestingly, this is what people are looking at, it is a slight slowdown in the pace of the growth. Analysts and investors are inferring some knowledge about what is happening to Chinese Consumer confidence. And whether the slowdown is reflected in alibabas singles day numbers. We are missing the magic. The launch of disneys streaming service hitting technical difficulties because of overwhelming demand. Is this good or bad that there are technical glitches and crashes for users . It creates a buzz. It feeds this narrative disney was such a big deal it broke the internet. This is not good, it is a lack i. Not what they wanted. We were speaking to them last week. They say this is not the end of the world. We spoke to a lot of Technology People about this and people who work with disney. They say this is not the end of the world. It seems complaint levels are coming down. There are just too many people trying to get in the door too quickly. Disney shares soared to a record high after 10 million fans signed up for the new Video Streaming Service in just two days. There were also a lot fewer complaints. It has been huge for disney. We did not expect they would get to 10 million this fast. No one seemed to expect that. The headlines now are disney dazzles. Yesterday, it was disney becomes disney minus. The stock was pushed to an alltime record. At one point, it was up 7 intraday. What disney gains is not only a lot of cred for the ceo who staked his legacy on the video sharing. But it allows them to bundle together products for espn and hulu as well as the higher price. Bloomberg was first to report a wall street regulator is opening a probe into Goldman Sachss credit card practices. Over the weekend, a wellknown tech entrepreneur tweeted about his frustrations with the apple card and the disparate credit limits between him and his wife. You are the first to break this news. It immediately triggered a regulatory response. What is the potential issue here . This has blown up. It started with david hansen the , guy who created ruby on rails, a popular programming tool, complaining about how he got 20 times the credit limit his wife has got. Immediately got online traction, everyone sharing experiences. Before you know it, the regulators saying we want to regulators saying we want to look into this. The issued they are looking into is to see whether these credit assessments banks use, that credit card agencies use, Financial Services companies to determine how americans borrow money, to try and make sure there are no inbuilt biases. That is where we are right now. Walmart reported thirdquarter earnings before the bell this morning. When it did so, it showed earnings beating estimates. The retail giant boosted its outlook on growth for the year. The key has been groceries. This is a category where they saw a midsingledigit increase in comparable sales growth. It has been a real strength for them for several quarters now. In particular, it is boosting online sales. They rolled out this buy online, pick up in store program. It proved really popular with shoppers, especially in the suburbs and especially at a time when amazons grocery strategy looks incoherent, it is a win. Tencent out with earnings. Fitness the lowest analyst. Stimate walk us through the latest numbers. The top line and the bottom line, there was weakness. Revenue is up around 20 , a little over 20 , which is not bad. But in china, that is pretty weak for chinese standards. The real weakness was in advertising. But the upside, smartphone games posted 25 growth. Last year, there was a crackdown on games in china. But they have been able to get more games out into market and monetize those games. Going through to the bottom line, they have been higher cost for r d and more content. That is really what is happening at tencent. Juliette we are watching for nissan to begin trading. The automaker has withdrawn its dividend outlook and is now undecided on a payout in an unexpected blow to the top shareholder. How is this likely to play out with this relationship . Renault has three seats on the board, including its top leadership. You can imagine it will play out as a concrete battle on the board over the payment of this dividend. They are relying on this. It comes to hundreds of millions of dollars. They rely on it as a key component of their own earnings. That is going to be a boardroom battle that will help define how these two carmakers Work Together going ahead, what kind of dividend that shakes out to be. They are selling what could be 30 billion worth of bonds to help finance the acquisition of alergen. Allergan. It could be the largest bond sale in it could 2019. Bloomberg reporting this is a deal that has attracted more than 70 billion in orders. Thats right. We just found out the deal has launched at a size of 30 billion. A little bigger than the 28 billion we were expected, showing what a great environment this is for funding. They are really leading the calendar with the biggest deal this year. It will be the fourthlargest of all time. It is not just in investmentgrade, it is highyield. We are seeing 10 new deals announced today. Most of those look like opportunistic financing because borrowing costs have been so cheap. Kkr is said to have formally approached walgreens with a deal to take the Company Private in what could be the biggest ever leveraged buyout. How did this come together . What do we know at this point . We know the walgreens ceo has been talking to private equity groups about a potential take private of the company. Kkr was one of the groups in initial discussions. Weve learned today they have put in a formal approach. What happens next is they will probably look to do some diligence. We are working to find out what kind of price we are talking about and how the deal unfolds. Cg capital is among the groups bidding for the unit. Sources say it is one of the businesses that submitted by last weeks deadline. The business could fetch more than 15 billion euros. Why 3g capital. They are better known for burgers and ketchup. That is a very good question. What is the link between burgers and french fries and elevators. Really, there is none other than they are looking for a good investment. They have put the asset on the block. They really need the money because this is a company that is struggling. A couple of suitors have been sniffing around this particular asset. For them, it is a new industry. One that is still growing fairly well. For them, it would offer an interesting new avenue. Boeing shares surged after it provided a new timeline for the 737 max to return to service. The company says the faa is on track to certify the redesigned Flight Control software next month. Do we have some sort of positive expectations that this plane will be back in the sky . That is the way the market took it. Boeing came out with a statement that had some good news and bad news. The bad news was it boils down to about a onemonth delay in expectations of when the max will have full regulatory approval. The timetable has shifted to january instead of december. The good news was that the extra detail that boeing provided and the assurance that they gave around the january timeline was taken as a big positive by investors, at least. Juliette you are watching bloomberg best. I am juliette saly. This week, jay powell told congress he feels the feds current policy stance is appropriate for now. San francisco fed president mary daly holds a similar view. She explained why in an exclusive interview with bloombergs kathleen hays. We calibrate policy to make the baseline growth be sustainable and promoting goals of employment. And price stability. The policy accommodation we have taken, which has been three great cuts this year, has put policy stance in a good place to make the baseline come out. Where we needed to be, slightly above trend growth and continue to move up in inflation to target and further progress on full employment. I do think of that as the economy is in a good place. Of course, we continue to be datadependent and look at the risks and see if the baseline changes even with this accommodation. Is this a pause in the fed rate cut path . Is the fed at a policy crossroads . Do we go this way, that way . What needs to happen next . Can i give you a third option . My third option is where i am today. 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 Investment and manufacturing. We are in a moderately accommodative stance. Thats appropriate. I feel like we can stay in that stance for the time it takes to get inflation back up to 2 on a sustainable basis. I am hearing you have paused. What you are trying to figure out now is you are saying you probably dont have to do anything. But you are just as willing to say inflation is rising, i guess we will shift policy in that direction. The headwinds have stirred up again and we will have to go in the other direction. One thing we have to do is look forward. Even though i have characterized the economy as in a good place, and policy is currently appropriate, we also have to look at the risks that emerge. On one side, you have the potential for the accommodation we have given to spur the economy and the stimulus other countries have put in place works and we have some upside potential. But i think on the other side, there is some Downside Risk that continues to emerge. We could come out with slower G