Do is to preemptively narrow production. Both the private sector are heading in the right direction. Speaks candidly about preparing for the next downturn. We are more cautious compared to 2009. Elizabeth warren talks about how she would fix u. S. Trade policy. It is all straight ahead on bloomberg best. Hello and welcome, i am nejra cehic. Interviews, news and analysis from Bloomberg Television around the world. Showingeconomy has been stress in the trade war. A new report tells a positive story. China showing raising hopes over the countrys recovery. Do these numbers mean and does one swallow make a summer . Certainly a positive headline. The official and private sector are heading in the right direction. There is some seasonal effect behind it. Chinas pmiin probably spilled over to the rest of the region. It is certainly a positive number, but we are not seeing any signs of a sustained rebalance. There are encouraging numbers. Ut of china a short time ago we got numbers going the other way. Mother is some disappointment in the ism numbers pointing to a deterioration in conditions. What this underscores is that even if we do get that thechina trade truce problems in the sector will not be easy to fix and they will not go away quickly. President donald trump is reinstating tariffs on aluminum from brazil. We are hearing that the president will increase tariffs on china if washington and beijing dont reach a trade agreement. Moment. Quite a its just a reminder for the trumpet ministration that this is their favorite trade policy tool. They love to use it to get what they want. Dropis is a 9 10 of 1 here for the s p 500. Stocks are down but bonds are not up. Mo not fair. Have yourpposed to bonds hedge out your stocks. Higher alled solidly day. The fact that people did not buy bonds is kind of tariffs making a comeback. Hitting argentina and brazil and responding to the initial tax with a threat to slap tariffs on 2. 4 billion dollars of goods. The commerce secretary wilbur ross saying if nothing happens between now and then the president has made quite clear he will put the tariffs in. The president says you might have to wait a lot longer for a deal. And some ways i like waiting until after the election for the china deal. Fromts pull up a tweet the global times that says a source said china will release an entity deal soon. In the u. S. T china crosshairs as it relates to trade. This year france said we are going to tax Big Tech Companies because we think they are not paying enough taxes here. Otheren several countries follow. To taxid were going sparkling wine. Kim of the equity index is down on the s p 500. 0. 7 . The dow losing exactly 1 . Only about 2 off of the highs here. The market is getting nervous but still pricing in the fact that maybe this is a poker move. There is some blood on both sides. M a relations between washington and beijing are likely to see further strain. Rights abusesn against muslims and minorities. Damages thenly music we have heard from the global times that china is thinking of putting restrictions on some officials for visas and officials and travel. That include bash that could include some of the companies. Aboundingsets were subject to agreeing on purchases and tariff rollback issues. There has been whiplash about where these talks are in. Expectations are set that talks are progressing and hopefully they will be able to get a deal whether it is a temporary deal or something that moves the ball forward. That is the goal that we see. Raised 29. 6co billion in the largest ipo. Profitable most company at 1. 7 trillion dollars. Somewhat below the original target. Did the aramco ipo meet expectations. In the midterm they did meet expectations. They were priced at the highend of 32 rail per share. It immediately jumped ahead of apple and microsoft as the worlds most valuable company. The largest ipo surpassing alibaba in 2014. Ins is really the first step their plan to diversify the saudi economy away from oil. Lets get the latest on opec. The Energy Minister gave them beautiful news for tomorrow. Why is it so intent to come up with the issue today. Its just codifying what is already happening in the market. Theres a little bit of hubris overnight. That doesnt seem to be the case. Not one of them would stop to talk to us. Surprised thea oil market by promising significant additional production cuts. It wee market requires to itsard the role is website prices really prop many thought this entire cut would be cosmetic. Its a little bit of naming and shaming when the press conference happen. Iraq are joined and that has never happened. The discussions here were serious. Investors are focusing on the latest jobs report. Analysts are expecting nonfarm payrolls to have 183,000 jobs. Ammo very strong report. 260 six thousand jobs created in november and the Unemployment Rate falls back to 3 . Thats still enough to put the annual rate up. Not only was november strong but september and october were revised up continuously. Kim of the key point is that america is working. Despite whatever cynicism more criticism, the jobs numbers are getting better. October 11, the president said we have come to a deal pretty much. It will probably take three or four weeks. That was eight weeks ago. What has the president seen. The final stokes are not there. We are coming down to short strokes. We are covering a lot of ground. Ive learned never to forecast the outcome and hopefully President Trump will make the final call. As we close the week it started on a down note. There was all this talk about how the president was in no rush. Closes thes p 500 week out with a gain. Ahead, democratic president ial candidate Elizabeth Warren takes donald trump to task on trade. An exclusive interview with the brookfield ceo and up next more of the weeks top headlines. Political infighting puts the. Rand coalition at risk it is somewhat uncertain. This is bloomberg. This is bloomberg best and i am nejra cehic. Lets continue our global tour of the worlds top stories in politics. There was a summit in the u. K. And recent tensions within the alliance didnt play out as predicted. Nato leaders are wrapping up a twoday gathering. The issues discussed ranged from armscontrol to china. The obvious issue is what a turnaround from President Trump who went from criticizing nato almost saying the u. S. Would be prepared to walk out, to know saying that this is an organization that is working well. The Prime Minister having family over for christmas. Not everyone gets on, but in the end your family and thats what we got to, despite those open disagreements about the future of nato and what natos deal should be. Forwardmitted to a role. And the value of the alliance. Nothing like the discord we had seen feared could come from the meeting. Angela merkels government has been thrown into crisis. The grandt risk is coalition . The future is somewhat uncertain. They have not come out to say that they want to get out, but they do know that they are somewhat divided on this one. Sayould probably want to that his running mate is an ideologue, and she really thinks that this coalition that the government has been far too conservative on a lot of issues like climate and social policy and she would like to go out. We have to see how this internal dynamic among the leadership is going to develop over the next few weeks. Japanese Prime Minister shinzo abe is rolling out a massive package supporting the economy battling the export slump, National Disaster and the fallout from a hike. The headline figure is 240 billion. That is a large number. Yenta. Rillion deep toto dig down another figure of 7. 6 trillion isnt government spending. That will be the punch that comes into the economy. Bloombergist at expect the economy to grow 0. 4 in 2020, which the government says will add 1. 4 Percentage Points of growth. They say its not going to be quite as effective as that. Ask hongg kong isgs Financial Sector painting a bleak picture. This is a conference that has been in surplus. Bones ofeat on the some problems here, reiterating again that this economy will fall into recession for a full year. Hong kong retail sales plunging over 3 , the latest sign that the ongoing unrest is hitting the economy. Asice are firing tear gas thousands marched into these conditions. Onwe know that the tourism the retail side has been getting hit. On the political side, in terms of protests there is no sign of a circuit breaker. We turn to india where the central bank defied all forecasts and left rates unchanged despite gdp data showing a sharp slowdown. They offered a weak rationale in our view for keeping the rates. It essentially said they wanted. O do a wait and watch approach , they have time downwardly revised their massive 190by a basis points. Deposit on interest rates. The Federal Reserve is acknowledging the yearend demand for cash. Attracted more than 42 billion in bids. They realize there will be a any central cash crunch at the end of the year and they are trying to make sure that they are prepared as much as possible to see the volatility that we replicated. R is not national gas platform. How much of a game changer is this. Like you said russia is the worlds biggest exporter of natural gas. The this is politically problematic as they try to expand that with the ukraine. This allows them to bypass the that whole mess to monetize new fields that are too far east to connect to their european system. They are already talking to china about expanding the deal and maybe even to places like south korea about possibly doing a pipeline sue through north korea. This is opening a new branch of the world. Says that thei house will draft articles of impeachment for against President Trump for abusing his office. The president has engaged in abusive power, undermining our National Security and jeopardizing the integrity of our national elections. Do we have any idea what they will say and what it will mean waiting for that to take place . Those are Great Questions and we are looking at three to four articles of impeachment. When the process gets to the senate we dont know how long it will take. It kind of depends on the quality of evidence that the president presents. If he calls witnesses and his legal team fully participates in the process, it could take longer. As you hinted at, that is a consideration for the senators seeking the nomination because they will be stuck in washington when they would rather be on the campaign trail for 2020. This is bloomberg best. U. S. Senator and president ial candidate Elizabeth Warren made news this week she is drafting an antitrust bill that would call and regulators to retroactively review to decades of megamerger zenda ban such deals going forward. Bloombergs Joe Weisenthal interviewed warren on wednesday and on the topic of trade she the president has no plan. What is the Elizabeth Warren plan . Art of it is to say we need an overall strategy on tariffs. Trade is about terrace but not just about tariffs. Traders about regulation as much as it is about anything else. What i want to see is a coherent plan for anybody who wants access to american markets. Farmerso make sure our arent being squeezed like crazy and they havenow already lost markets that will be hard for them to regain. We need to be working with our allies. We want to trade deal with china that is favorable to the u. S. Lets not declare a trade war at the same time on canada and on our other asian allies. On our european allies. Lets get everybody to Work Together on this to try to get china to follow a reasonable set of rules. If china is hoping to wait out the Trump Administration, you wouldnt be willing to end the tariffs on day one. Sen. Warren we cant keep doing this has one offs. Strategy withrent our allies that makes clear where our longterm interests lie. I want to see trade occur but i want to see it occur in a way that is helpful to the American Worker and the american consumer. Destroyingp is markets in value around the world. Would you tie chinese human rights abuses to a trade deal. Working with our allies we should be putting a lot of trash pressure on china. Part of it should be diplomatic. We need tos all the tools in our toolbox. Andhat was democratic president ial hopeful Elizabeth Warren. Bloomberg is the founder and majority owner of lt, the Parent Company of bloomberg news. The ceo says he doesnt see a recession around the corner but doesnt mean there is no risk. The nato secretarygeneral takes issue with emmanuel macrons charge that the alliance is brain dead. This is bloomberg. This is bloomberg best and i am nejra cehic. Nato leaders outside london came in the wake of comments by key leaders. Emmanuel macron recently called the alliance brain dead and donald trump has charged that Many Companies dont pay enough toward defense. Maria covered the summit and spoke about these internal differences starting with natos secretarygeneral. Fact that the President Trump is strong and his support to nato and that he recognize that allies like europe and canada are stepping up when it comes to defense spending. Since 2016, european allies in canada have added 130 million u. S. Dollars to their budgets. This is unprecedented and is iting nato stronger, and shows that the message from the president is having an impact. Deading to the brain comments, i know the language is probably too much. What do you think he is trying to achieve . Is this a wakeup call or is there Something Else happening . I dont think we will have to wait to characterize nato. What we have seen is that nato is doing what they have done for decades. More troops and for the first time in our history combating the eastern lines. Increasing defense spending and addressing new challenges like the rise of china which was not on the agenda before. Nato is actually active every day and that proves we are responding. In general i would agree with him that we could have spent more. Be above 60 of the nato economy while the rest of nato including canada and the european side is only spending 75 . He is right there. When you look at the numbers since 2016lion spent is an incredible number. Trump would say that the netherlands is a rich country. We are and he is completely right. We are spending 10 billion on new defense equipment and billions on our overall defense spending. Growing at a high pace so we have to keep track. The ceo of spotlight. Caroline hyde sat down with the executive and spoke about the particular challenges of guiding a company with growth global reach. Our Employee Base has actually spread around the world. To 15 yearso do 10 ago was that the complexity of the product grew so much that it was impossible to make it. Traditionally people say i will take this and you can draw these boundaries around whatever the site does. We cant do that because it is so complex. Create theced to product and have every site talk to each other. Typically what we do is take some but who is strong culturally, and we will have a mirror on the others that talks to them every day. Its kind of old School Ground game, we have solved that problem a decade ago. It feels like your business comes down to being personal. Do you think that is common in sciencebased businesses . Dontt something people understand about the way scientists need to work . I think that is true in general. Its not communication like i know everything and i will communicate it. Its that you have a collective brain, you have to figure out how to pull from that collective brain, and be humble enough to change your mind. You can find much more of caroline hydes exclusive conversation at bloomberg. Com. Bruce lang spoke with flat. He says he is preparing for the next downturn but we are not quite there yet. I dont see anything in the current economic environment that tells us something will happen tomorrow morning. That, we are close to 11 years in this economic cycle. I dont think economic cycles have been repealed. Some countries are heading there today, particularly in europe. Because of that we have high stock markets and there will be disruption in credit markets and stock markets and our view is when you are in an environment that is more robust than you might otherwise have you should be careful. Powder and cash on our balance sheet, the Balance Sheets are more longterm, getting ready at this point where we can capitalize on situations if the market is current. Dont, we will be fine but we are more cautious today than we were in 2009. There are places today that are like two thousand nine in the United States. A financial crisis situation similar to what happened in the United States in 2009. Shapenks are not in great stop the nonbank financials are in trouble. With that means is entrepreneurs dont have access to capital. You talked about china and that a third of your assets would be in china and ive wondered at whether there is an thete on that, based on context of human rights and chinas place in the world. Does any of that factor in . Chinast we said asia, not specifically, which includes asia and our mind, but to deal specifically with china, going back to what we do as opposed to what others do. We go to a country we move money and we buy an asset and redevelop it or sell it to somebody else. To anyone. Rategic thanks dont move across the borders. Its not really relevant to anyone, and china has an enormous population that we build and operate. To bek it will continue very relevant to us longer term and i would change the comments that i made years ago. Kimbo this is bloombergs best, i am nejra cehic. It was a busy week of comings and goings around the world including an unexpected change in top management for google and its corporate parent alphabet. Founders stepping down from their roles at alphabet. Google ceo will become the ceo of alphabet. We are a little surprised but as surprised as we were four years ago when they announced alphabet, and at that point, soon a