Alls. Ems to be more small b it did not feature the biggest faultlines in the democratic primary, we have seen the debates over health care and taxes. Last time last night it was more of a united front on issues like climate change, where they have a lot of disagreement with President Trump, but agreed to gather on how to deal with that issue. David thank you for reporting from atlanta. Now to washington which has eclipsed the debate, the impeachment hearing. The last day today . Lastly of public hearings so far. This will conclude the part of the intelligence committee, there could be more closeddoor depositions annual move to the Judiciary Committee where they will hear the articles of impeachment written out by the house, and allow President Trump to present his defense. David we heard from ambassador really gocan they forward without getting the Key Players Like mr. Bolton for example, to show up and testify . Hill is testifying today, she is a close aide to ambassador bolton. Directly exactly communicate with President Trump, though Gordon Sondland there has been a lot of interpretation of the witnesses. , but theye same facts are interpreting them differently. Republicans are saying there was no explicit quit roco. Democrats were saying there was a Clear Exchange of this for that, which is what quid pro quo means. David is anyone changing their mind . No. We have seen very Little Movement from democrats or republicans. So heartless like no House Republicans will vote for the impeachment, if they do vote for articles of impeachment. David thank you. Now we go to jordan, also in washington, it appears that President Trump was warming to the Tech Community in texas yesterday when he met with tim cook. Have ap and tim cook relationship going back a couple of years, they both got something out of yesterdays visit, trump can highlight his jobs agenda by pointing to the fact that apple is manufacturing the mac pro in austin and tim cook got facetime with the president as his Company Looks to void tariffs that came down in december, at in september and the new round coming up in december. David and it was not just tim reports that have Mark Zuckerberg had dinner with the president at the white house. The white house to not disclose this dinner it was reported today. We dont know what tech leaders discussed with the president , but we know there has been a facebook ad policy which has been much debated in washington related to political ads. Its possible that came up. Facebook is trying to roll out a cryptocurrency, libre, thats a possible topic. Peter thiel is a conservative trump supporter and its possible he is acting as a trump sherpa to the Tech Community. David thank you. Now time to get that check on the markets. Joining us now is abigail doolittle. We are down a little bit. Out, is starting to stand we have been in this slow melt, three down days for the s p 500, this is the worst stretch going back to early october with a modest decline over that time period. It does look like a little bit that stands out on trade, which we have been talking about. Phase onesay the trade deal does not get done, and the tariffs could be a Material Change to the economy. Something interesting is that the u. S. To lighten up a little , whichwall way huawei was reported on today. Areaps the negotiations better than we hear now. Maybe a deal gets done. David and the hong kong legislation look like it would it may give President Trump more leverage with china, but its not clear which way it tried cuts. Its an interesting point, we will be interesting to see if it does give him leverage. Based on my knowledge, thats what hes looking for, to strongarm. I would have to think it would be a real Sticking Point between the two countries, maybe thats why huawei loosening occurred. So it appears that we are being tough but beneath the surface we are giving something economic. Its difficult to know. Bonds are down a little bit, but over a longer time period, they have been up which speaks to the uncertainty. Investors really want something definitive to happen. Yet another day of trade. Thank you. Lets turn to Mark Crumpton with first word news. Thank you. As our colleague told us moments ago, fiona hill and david holmes are testifying on day five of the impeachment hearings. Holmes revealed that William Taylor described a june 28 call with ukraines president as having Strings Attached with regard to an oval office visit. He also said he overheard a call two days earlier between President Trump and Gordon Sondland, who then told homes using and i slid at that the president did not care about ukraine. As we have been reporting, president ial candidates squared off last night in atlanta, Pete Buttigieg climbed in recent polls, facing criticism on stage from Amy Klobuchar, tulsa gabbard, and Kamala Harris. They slammed him with lack of extremes and struggles with africanamericans, but he was third in the number of words spoken just the hind joe biden behind joe biden and senator warren. In the u. K. , after a contentious debate, Jeremy Corbyn has announced a radical package of new taxes on business and the wealthy, they include financial transaction taxes, a higher court ration tax, and a windfall tax on oil companies. The top 5 of earners would pay more. At the launch of labors manifesto in central england, he went on the attack against critics. Billionaires, and the establishment thought that we represented politics as usual, that nothing would really change. If they thought that, they would not attack us so ferociously. But they know we mean what we say. They know we will deliver our plans, which is why they want to stop us from being elected. The labour party says it would use the new tax revenue for more than 100 billion in public spending. Benjamin netanyahu will stand trial for bribery and fraud. Its an Unprecedented Development that could doom his career and shape the political crisis that grips ever zero that has gripped israel for much of the year. Resign, hewill not would have to if he were convicted and exhausted all of it all appeals. Global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists in more than 120 countries. I am Mark Crumpton, this is bloomberg. David thank you. Coming up, democrats returned to the debate stage against the backdrop of impeachment, while the newly crowned i will front runner emerged virtually unscathed. We look at the crystal ball for reading next. This is balance of power. We have to establish the principle that no one is above the law. We have a constitutional responsibility that we need to meet. I learned that donald trump does not want me to be the nominee. Thats pretty clear. He held up age to make sure. This is impeachable conduct and i call for impeachment proceeding. I just believe our job as jurors is to look at each count and make a decision. We cannot simply be consumed by donald. If we are, we will lose the election. David against the backdrop of the public impeachment hearings in the house, 10 Democratic Candidates took to the debate stage for the fifth time. Some are wondering if we saw a debate in atlanta or more of a series of speeches by the various candidates. From what happened last night, we welcome our guest who is the managing editor of the crystal ball. Pick upkyle, lets where senator sanders just was, we cannot be consumed with President Trump, where they consume last night . Did the impeachment hearings cast a shadow over whatever they said . I dont think candidates on the stage were obsessed with impeachment and that in comparison to the other debates, the discussion was more wideranging which is a credit to the moderators, there was more of a Foreign Policy focus and other issues that had come up, and it ended up being discussed, to sanders point, there are some who thought that Hillary Clintons campaign was laser focused on trumps conduct and not enough on her own plans, which might have made the difference in the election, so i see where sanders is coming from. The thing about impeachment is that there was maybe less of an audience for this debate, not only during but after, because theres so much going on in the news and its hard for people to focus on one thing. Whatever change expected from last nightss debate might be even more muted because so much news is happening. Even today the impeachment hearings continue. David there was substance, but did any of it go to the fundamental question as to why anyone should vote or this candidates over President Trump . This is about turning out an incumbent in an economy thats doing reasonably well, is there anyone who has said we should make a change, come to me . There was a lot of policy discussion and difference of opinion. I also dont think to the previous point that you made, there was not much of a debate in that there was not a lot of attacks going on amongst the candidates. , biden,t runners warden, sanders, and warren, sanders, and buttigieg, the candidates were not mixing up much. One wonders that they should be doing that. The candidates might look at it and say if i attack one of the other candidate it may not benefit me, it might benefit someone else. When you have such a huge field theres a lot of game theory going on and i think the candidates are deciding they are better off not attacking then attacking. That may change when we get to the voting starts. David lets go to that point exactly. In each of the debates the media has said there is one person we have to target, Vice President biden, Elizabeth Warren, last night it was Pete Buttigieg, but i did not see them put the crosshairs on him. Why . Maybe the candidates just dont feel like theres much benefit to them doing that. Although i do feel like ultimately, when the voting gets close, you will have to see sustained attacks by the candidates on one another in these debates, and perhaps more importantly in terms of Campaign Messaging and in television advertising. But again, maybe to candidates dont see much of a point to doing that. This sort of sedate stage actually benefits joe biden, the front runner, in that he has been the pulling leader the leader, and Elizabeth Warren was catching up, but now biden has reestablished the as leader. Polling he did not have that great of the night, is mistaken not realizing that mona harris was also an elected africanamerican senator was embarrassing to him. Will not be widely dissected today, there may be more impeachment taking over in terms of news coverage. Thats good for biden, theres less of a focus on what seems to be an obvious mistake he made last night. David we have one more debate coming before the iowa caucuses, between now and then, what will have someone win or lose . How can they change their position . Bye buttigieg is winning nine points, if you are trying to overtake him, what would you do . Part of why he is doing well in iowa is that he has been advertising heavily and buttigieg is wellfunded. You will have to see paid media come into these races to help turn the tide. This reminds me in some ways of the 2012 republican race in which mitt romney was a soft front runner the whole time and there were certain candidates that would rise up and try to challenge him and would fall off. What romney and his allies could do was outspend everyone, particularly through a super pac supporting him and he played whackamole to knocked down candidates. Will biden be able to do that . He has not been particularly wellfunded and it seems like theres an effort to start a super pac on his behalf. Perhaps that could be wellfunded and could help swap down his rivals. And maintain that soft front running position. David how many tickets out of iowa . More than you might think. Will, and New Hampshire, are extremely white states, and the democrat electorate broadly is more diverse. Somebody like joe biden who is reliant on africanamerican voters may have more staying power than a front otherwise would because the demographics of iowa and New Hampshire are so poor for him, but contest are little better later. Its taken a while to figure out this field. Two,nk its more than five, particularly if you have Amy Klobuchar or buttigieg really perform well. And if there is a split decision in iowa and New Hampshire, and they vote for the same person, that person may be a good position. If they produce muddy results that could allow more candidates to hang around. David thank you. Kyle coming to us from washington. Still ahead, Henry Kissinger says we are in the foothills of the cold war between the United States and china, which could be even worse than the one between the United States and the soviet union. ,e hear from dr. Kissinger next this is balance of power on Bloomberg Television. David this is balance of power on Bloomberg Television. Im david westin. Dr. Henry kissinger was the man who went secretly to china in the 19 have a nice to pave the way for president nixon to reopen relationships. With the new Economy Forum in beijing, kissinger warned that we may see the start of a new cold war. After 40 years of increasingly strong relations. China and the United States are countries of the magnitude exceeding that of the soviet union and america. The soviet union was not an economically significant country. We had no economic relations to speak of with the soviet union, at all. In the soviet union did not appear on the International Scene as a Major Economic country. China is a Major Economic country. And so are we. And so we are bound to step on each others toes, the united history, sawgh its as a minor issue. So now when i see these dramatic side, unfolding on each theres bound to be influence, despite historical perceptions. In the United States is undergoing an election at the. Oment so the people emotionally its a dominant factor. I hope the people the issue will be settled by negotiation. David that was part of the conversation with dr. Henry kissinger at the new Economy Forum. The new Economy Forum has been organized i the Bloomberg Media group. Macys is one of the biggest laggards in todays session for the stock of the hour. The stock is dropping despite the fact that their company says they have mitigated the effects of tariffs. There are other possible problems and kailey leinz is here to tell us about them. You think of tariffs as a problem, especially for tariff retailers, considering 33 of the imports come from china. And for macys, more than 30 of what they sell is clothing. A possible issue is that it could take seven cents off the earnings for the full year. Executives said they were able to mitigate all of the tariffs. Its interesting what they are saying, in part that they have enough pricing power, because they have more fashionable items that consumers are willing to hand, and they pointed to the relationship with their alsoiers, but the results show is that comp sales are declining and have dropped to 4 . Their guidance for comp sales and earnings, will decline between 1 and 1. 5 and they thought they would rise to 1 . There are still fundamental issues. David it sounds like things are going well but not so much. Whats really hurting them . We have heard a lot about the retail numbers, how much is execution . I think a lot of it is execution. One thing they pointed to in regard to ecommerce is that they have had a lot of issues as they prepped for holiday seasons. They did not see doubledigit Sales Growth Like we are used to seeing which is more important to retailers, and they pointed to things like Colder Weather which came later this year and they are seeing some softer International Tourism and slower traffic. They did sound upbeat going into the holidays, they said they were locked and loaded, and that outlook i think is actually whats lifting the stock. But with the comp sales weakness that we saw, you have to question how rosy the picture is. Always about the weather, but now its also about the technology. We were having more trouble than we thought online with home depot. Catch 22, you need the Online Technology because so much of the retail landscape is shifting towards those online purchases. What do they do . Leinz, great reporting. Up next we talked to a mainstay of the Democratic Party and a strong supporter of