Dow and about 11 higher than the nasdaq. Lets check in with our reporters. I would like to take a look at one area of underperformance, china tech. Down 2 , lower on the open. But, around the time of the scoop and those headlines, the fact that tariffs will still be in place after the president ial election. Netnet, the worst day since september. Even to the untrained eye, this is somewhat absurd. Unlike u. S. Stocks, not going higher. There was a period of time when these were above the 200 day moving average. Over the last few months, gaining well more than 25 . A very overextended situation. Sometimes, these things go further than you think. There is good reason to think that we will see a reconnection at some point back down to the 200 day moving average. One group that sort of weathered this mini selloff was transportation stocks. Dow jones transportation average gained about 1 . It broke out to the highest level since october. Delta airlines gain a than 3 . Earnings came in well above even the highest expect patients. Fedex did rally about 2 . They lifted restrictions that prevented Third Party Merchants of shipping packages with ground service. The dow joness in transportation average gained today. They record close in the transportation average for believers in dow theory would be a bullish sign. A signal of more gains to come. 3. 5 more gains to match the record it saw in 2018. Renita optimism over the Global Growth outlook has driven copper higher today. It is as high as in april. Analyst said that trade data suggests the economy in china is stabilizing. Also boosting copper today. Copper will be on wednesday. The agreement for phase one. Romaine our thanks to the markets team. Still with us, Bloomberg News across assets reporter katie gry filled. And katie griefeld. And, omar aguilar. We are anticipating the signing of the phase one trade deal and presumably what will be the two deal. Phase how important are these to your Investment Outlook at the moment if at all . Omar they have been very relevant for a while. Clearly, we are at the critical stage. What it is important to note, signing the deal tomorrow does not necessarily take the uncertainty away but it has created much positive optimism. Justoo long ago, we were trading back and forth, the potential trade wars and multiple levels of tariffs. Right now, we are in a more constructive process. The fact that there is a layout plan for phase one and phase two has already been priced by the market. This stays relevant not just because of the Economic Impact globally but also because of certain sectors of the market. We are in a place where manufacturing continues to be under pressure. Having a signed deal at least provides some positive outlook for manufacturing to stabilize worldwide. I think that is probably the most critical part of what happens tomorrow. Earnings season really gathering steam, starting with several banks today, most of which did good. Also we had delta today. Talk about how early earnings might be informing perceptions of how things might shape up. Katie bond volatility in the Fourth Quarter was not high. Still very slim pickings. It is interesting to see those record profits or whatever the superlative was. Of bankut, day one earnings, it will be interesting to see how the rest of the banks report. Financials had a great year next year. They will be interesting to see if that momentum can continue. It will be interesting to watch from the etf perspective as well. Financials have had two straight years of outflows. It will be interesting to see if these earnings will be enough to turn the tide. Romaine the banks like Pnc Financial tend to be a little bit more Interest Rate sensitive. Katie the thought is that maybe with the yield curve steepening a little bit, it looks like that trend is starting to establish itself. Scarlet i think that superlative you are referring to is jp morgan, the best for any bank in u. S. History. Rising 86 he revenue from last year, a billion dollars more than what analysts had been looking for. There is a temptation to kind of extrapolate and have it tell us something about the broader economy, but what does fixedincome trading tell us now . The economy right omar it shows the fact that despite the fact there are alltime lows of the equity , thet, a lot of the stability the fed has created and in general, central banks, there are a lot of opportunities in the fixed income market. People pay more attention to the fixed income market, providing opportunities, taking advantage of the different bets that can be done, it is reflective and some of the results we have seen lately. Beyond that, looking at fixed income going into this year, i want to go back, i mentioned inflation, very mild. Would that reduce rate volatility for a long time. Apid inflation in a the market is pricing full rate cut. Banks will central probably be waiting and see. All of the data in the United States shows that our economy will grow in the 1. 8 to 2 . The fed has all the incentive to basically stay on the sideline, theding the volatility market stays where it is. We continue to see recovery on the manufacturing side. When you put all of this in perspective, the fed does not necessarily want to waste any bullets to be able to whether the next recession. Romaine one thing we did not talk about was what happened in the currency markets. There is a lot of activity. It kind of died down a little bit. Now that we have trade back and focus, the outlook for the dollar seems to depend on the yuan again. 2019, it was a tugofwar between the two. Stronger yuan usually means a weaker dollar. It is interesting to see a lot of bullish forecast for the yuan. Jeffries in particular stuck out to me. Can reach 6. 7 by summer. It will be interesting to watch. Scarlet all right. Our thanks to Bloomberg News processes reporter katie greifeld, and omar aguilar in san francisco. Whatd you miss . Is up next where we will take a deeper dive into Bank Earnings including wells fargo. This is bloomberg. Live from bloomberg World Headquarters in new york, i am romaine bostick. Scarlet im scarlet fu. Joe i am joe weisenthal. Romaine the dow was the only index to finish in the green today. Stay. Riffs levies on billions of dollars of chinese goods will remain for at least 10 more months. One of the provisions said to be tied with the phase one trade deal. Three of the biggest banks showed us how they performed last quarter. Will hear from the ceo of one of those banks, wells fargo. And what happens when a fed historian and fomc member square off on social media. The question is whether a fed president should get involved in political issues . Scarlet lets take a look at shares of wells fargo, losing ground here. As much as 5. 5 lower today. 5. 4 . Losed down about this continues a week trend of late in which they have only gained one time in 2020. The lender reported 1. 5 billion in legal expenses. That missed the average analyst estimate. For more, we want to bring in the chief Financial Officer and executive Vice President for wells fargo. Thanks for taking the time to speak with us. We need to start on the litigation expenses. 1. 5 billion dollars for the quarter, making it the Second Straight Quarter in which major legal costs heard earnings. Where is the firm in determining how much more legal liability there is . Second inning, fourth inning, eighth inning . It is tough to talk about active litigation but the cadence of the charges, given that they reflect probability of likely outcomes suggests that things are moving along. Ery constructive dialogue this would include previously disclosed sales practices from a number of years ago. They do obscure the story from the quarter. There were some really good fundamentals in the quarter. Loan growth, deposit growth, payment related income. Investment banking was stronger. Mortgage business was stronger. A lot of the underlying drivers working out pretty well but we had some idiosyncratic things. Scarlet do you expect charges like this to continue in 2020 . That ourexpectation is operating losses will look more normal in the future than in the recent past. Probable is the approach we used to reporting those. Lets let some time pass and watch how it unfolds. Joe you have now been the cfo at wells fargo under four ceos. How would you characterize what is different and how wells fargo operates differently under the new ceo . John charlie has had a range of experiences. Hehas also been a cfo, so thinks about things in very financial terms. He has a very quick study. He has a broad range of previous analogous experiences in the risk and control, regulatory relationship related fronts. I would say, very optimistic. He struck a very thorough tone today on the call. How much work that we have to do. I think he has got a good sense of that already. But he also made the observation about the durability of the franchises, the possibility for growing them. On the one hand, it is an advantage, frankly, having someone who has been through this at other firms taking the reins now as we execute and deliver against some of our regulatory commitments. And having someone who has had the range of commercial experiences. As you deal with those regulatory and legal issues, talk to me about some of the consumer side of the business. Consumer spending has been a big story here. A big boost because of consumer spending. Is that going to improve or do you anticipate it improving from q1 and beyond . Up debit card income spending on debit cards for our customers of 6 . 4 in credit cards. Those who we package and sell for the agencies. The whole waterfront on the consumer side. Revenue for our business. Scarlet you cited positive loan growth. I do you envision closing that in, but , specifically Consumer Banking that has been driving results at your rivals . John we have almost a trillion dollars worth of loans. We sold almost 10 billion worth of loans last year. We had some precrisis loans we needed to dispose of. We have done away with that. Our auto business is one that will probably grow faster than peers. Our credit card business is smaller. We wish he was bigger. It should be bigger and it will be bigger, but today it is smaller. It will have rapid growth rates generate theot amount of dollars. There has been more growth on the higher end between Largecap Companies and other Market Participants who borrow from us, and a little bit of less growth on the commercial side of things , reflecting a standoffish approach to risktaking on that part of our clientele. Joe wells fargo chief Financial Officer, thank you for joining us. From new york, this is bloomberg. Romaine the trump and ministration is planning to change how u. S. Economic data is released, a move that could create a logjam. Lets bring in Bloomberg Economics reporter from washington. Us how just explain to that data gets disseminated right now . On the front and, when readers see, for example, the monthly jobs report. Payroll did this, wages did that. It will be coming from journalists, media organizations. ,he way we get that information we are given this data. About 30 to 60 minutes ahead of time we can ask the Labor Department questions and present our stories. It is the most accurate story possible for our readers and this goes out to the greater public. This process will be completely upended. The bls is planning on taking away computers from that room, which takes away our ability to write those stories. When it hits, we just wont have story to put out. A reporter. Ng in you are a fund manager for different hedge funds. How would it change the way that the government releases data, how would it change the way that a certain Portfolio Manager would do his or her job . Promulgating the data through the newswires. That a fund manager will read a story and be able to react and put on a probable trade, those days are long gone. Frommove instantaneously algorithmic strategies. If they are still able to 8 30 01the data at and implement their trades, than the initial reaction of the market will be different than it is currently. Those of us both on the pundits side and risktaking side, we are just going to be left scratching our heads a bit longer than is currently the case. The Immediate Reaction now is done by quantitative algos. Joe if there is no lockup and they post the data to the web, does the bls or any agency currently have the Computer Systems in place to withstand the number of scrapers and everything that hits their websites from media, funds, traders, everyone else who wants quick access . Katia this is a key point right now and it is something we have been asking bls. If you have data coming in from blscentral source, the online, there is the risk of hacking attacks for example. Tryingdo have investors to access that data, or media as well as the public, they will be. Craping that data they have to invest in that infrastructure. In the past, we have seen that this does not work out very well. The fda for example doing things with their lockup procedures. One of the websites crash. You have instances where hedge funds or quad traders can scrape that a few seconds in advance. Romaine when we talk about the level Playing Field, the Current System with reporters handling this system has been fraught over the years, do you think that potentially the government could blow this off anyway that there is a level Playing Field for everyone involved. I am a little skeptical. Even if the data is only eased on a website implement a trade before any human can. If we are talking about a leak coming before the release, this would solve the issue. I dont think in the United States that this has been a problem at all. Scarlet thank you so much. Really appreciate your reactions. From new york, this is bloomberg. Crumpton withrk bloombergs first word news. Engine fuel apparently dumped by an aircraft returning to los angeles airport fell onto an Elementary School playground. Outside of los angeles are assessing multiple people who are hit by the fuel. Tota Airlines Flight 89 shanghai, china, departed lax and circled back over Southern California before returning to the airport. Senate Majority Leader Mitch Mcconnell says he believes President Trumps trial will begin next tuesday. He said today that the house did an incomplete job during impeachment hearings. They did almost nothing that you would expect the house to do in order to set up this case to be considered by the senate. With regard to what witnesses are necessary, we are going to vote on that at the appropriate time after we listen to the arguments. Liaison told house reporters today that President Trump still wants the Senate Procedures to include a dismissal of the case. Mike teo didstate not appear today for a congressional hearing on iran. Chairman, new york democrat eliot engel, said he considered taking other actions in the future including subpoenas if pompeo did not cooperate with the investigations into the developments around the killing of iranian general Qasem Soleimani and escalations between the United States and iran. Being a world leader means emulate your adversaries. Andng to diffuse conflict prevent led shed. A representative from texas quoted mike pompeo saying that Qasem Soleimani was planning attacks that constituted an imminent threat. Tariffs on chinese goods coming into the United States are likely to stay in place until after the election. Bloomberg has learned that any move to reduce them will hinge on beijings terms for a agreement. Today withike pence a swearingin ceremony for the first ever chief of the u. S. Space force. General john raymond will conduct operations such as enabling satellite based navigation and communication for troops and commanders in the field, and providing warning of missile launches abroad. Historical,is this but it is critical. This establishment is absolutely critical to our National Security and allies. President trump initially launched the space force last month. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Lets walk back to what Mark Crumpton was just talking about. With the u. S. Holding off on lifting those chinese tariffs until after the president ial election in november this year. Ass new timeframe comes investigators are set to think the new trade deal in washington. Shaun donovan is covering trade for Bloomberg News. The details with regards to the tariffs taking place, is this being written into the trade set to signu hu is tomorrow . A we are hearing that this is tacit agreement from both sides, that there will be no tariff relief. What we are told, from people familiar by these familiar with these negotiations, is that the u. S. Will take 10 months to figure out if the chinese side is living up to its commitments. At that point, it can start living up to tariff relief. I think the president is keen to take both his tough approach to china and his deal into his run for reelection. Personnel is policy and who or what will be doing the monitoring, making sure the review is being held to objective standards . That is one of the features are potentially the bugs of this deal. There is an impeachment mechanis