Needs to pass. The good news is everyone agrees to sign onto to the principles of the changes made. We do expect the vote next week in the house of representatives, although Senate Majority leader Mitch Mcconnell says they will not take it up until next year. David in the meantime there is a thing called impeachment going on. You would think everything would grind to a halt, but it seems like progress is going on with its business. Is that what is happening . Anna it is an important point for nancy pelosi to say they are not just investigating the president. They are not as impeachment obsessed as republicans have accused them of being. Big are still trying to do things like passing usmca. There has been pushed from progressive democrats that nancy pelosi is working with President Trump to pass this trade deal and give them a win before the election next year, but it is important for her to give her moderate members to be able to say look at what i accomplished. I do not care. I will do important things for the american people. David thank you so much for your reporting from washington. Now we want to turn back to the usmca. We welcome one of the house members will be voting on it soon. He is congressman Michael Mccaul of texas. The republican Ranking Member on the Foreign Affairs committee and he comes to us from capitol hill. Thank you for joining us. There were changes made in the usmca as negotiated by ambassador lighthizer. How do you stand with the changes . Are you comfortable with what was done . Rep. Mccaul yes i am. The two sticking points or labor issues with mexico and also the patents on Pharmaceuticals Going from 10 years to where they are today. This is an important piece of legislation and a treaty we need to put through the congress. We are talking about 12 million american jobs, 1. 2 trillion for the american people. My home state of texas, mexico is the largest trading partner and it is about one million jobs for texas and 137 billion. A lot has been made about given the president a political win. I would argue this should not be held hostage by politics. This is a win for the american worker, first and foremost. It is not a win for either political party, but rather the american worker. It is imperative we pass this as soon as possible. David exactly. From both sides of the aisle, they say this is a win for the american worker. Talking about holding it hostage. What is Mitch Mcconnell say we will not get to it until after impeachment . What it we just voted through on the house and senate and get that benefit the americans . Rep. Mccaul we are extending our time until next week as we do have this thing called impeachment going on. We do have to fund the government next week. Theres a lot on the plate. I think you will see this pass the house next week and then it will be taken up by the senate. By all accounts, the impeachment process in the senate will go quickly. Mitch mcconnell has indicated that with no witnesses it will go fast and the usmca will be on the fast track in the senate. David we also have news today out of the white house about u. S. China negotiations. May be are we are getting close to what the president calls a big deal. Maybe we will be rolling back some of the tariffs. How do you react . Rep. Mccaul very positive. You have to look at it in two phases. The first phase is the trade imbalance of hundreds of billions of dollars. That is the first phase and the most likely to get an agreement on. With your prior guest talked about was this deadline in december that i think the president will defer and not impose additional tariffs, he may actually relax those tariffs in exchange for china agreeing to import more of our agricultural commodities. This would be a significant step forward. The second step is the intellectual property theft, the espionage will take a longer time to negotiate. If we can get the first phase done and we can pass usmca, the impact on the American Economy and the stock market will be overwhelming. It will put every americans pension, everyones 401 k in a strong position going into next year. David we are talking with representative Michael Mccaul of texas. You have been quite outspoken on the hong kong situation. I wonder if you think it is fine to go ahead with the deal that might rollback some of the tariffs. There was reporting from bloomberg to that effect. Do that at the same time weve not gotten the hong kong situation resolved . Rep. Mccaul we are clear and our position on hong kong. We stand with freedom and democracy. President xi is misbehaving. We stand with the people of hong kong. We also want a trade deal with president xi, and that is the balance the president is trying to coordinate. Bill we passed out of my committee on the Foreign Affairs committee, and we are always going to stand with human rights and freedom loving people over tyranny and dictatorship any day of the week. I do not think that will impact, hopefully will not impact this trade agreement with china, certainly the first phase. David you mentioned the funding of the government that needs to get done next week if we will not have a government shutdown. There was talk there would be a continued resolution to kick the can into the new year. Do you believe there can be an omnibus solution that will get appropriations done before next week . Rep. Mccaul i am hearing from the appropriators we will have several spending bills on the floor to keep the government open. The cr will not be the likely situation. , the biggest reason i have pros the biggest reason i oppose crs is they greatly hurt our military and hurt our readiness. We need to keep our military strong. David thank you so much. Always a pleasure. That is congressman Michael Mccaul. He is the Ranking Member of the Foreign Affairs committee. Now it is time to get a check on the markets and how they react to todays top stories. Joining us is abigail doolittle. Abigail, you promised me we would not talk about trade. I think you will break your promise. Abigail says is amazing what one tweet can do. We just saw stoxx take off at the highs. Up more than 1 . It is interesting, it is not as high now. Well off of those highs. A big piece of that is apple. Shares of apple down 1 . On monday there was a cautious commentary from daniel ives at needham on apple. Today Credit Suisse is saying iphone sales are slowing in china. Yesterday we had one of the streets top technicians, david keller, saying shares are getting ready to pull back on technical reasons. There are higher highs which tells you some folks are liking the stocks but the momentum is falling. David technical maybe the answer to my question. I wouldve thought apple would benefit because there is concern with the new tariffs that go into effect would hit apple particularly. Maybe there are technical aspects that you understand so well. Abigial it is quite a bit of technical selling for the major averages and apple. If the tariffs do not going to place that would benefit apple, because they were set to take a 150 billion tariff hit. There was some top because tim cook and President Trump had met. The stock up 70 on the year, the best year since 2009. The bargainbasement buying, traders scooping this up with both arms. Now they are taking chips off the table on the technical angle. David it is hard not to cash in some of the chips when youre up 70 . Many thanks to abigail doolittle. Coming up impossible. That is the view Mitch Mcconnell theon the Senate Taking up usmca anytime soon. We talk with his colleague kevin cramer, next. Ons is balance of power Bloomberg Television and radio. There is a lot of changes made by the democrats that republicans which had not been made, but in order to get this otherwise very good agreement through the house of representatives, they probably had to be negotiating. It is compromised in a way i feel the overall thing is very good, and we may lose some republicans because of it, but it will get through the senate, probably easier than it gets through the house of representatives. David that was senator Chuck Grassley speaking yesterday about the fate of usmca in congress. For more on the renegotiated trade deal, we welcome one of his colleagues in the senate, senator kevin cramer of north dakota from capitol hill. Are you going to be one of those republicans you may lose . Sen. Cramer certainly not. Usmca is so important to north dakota. North dakota is a lot like iowa. We border canada and we do 6 billion of exports a year, 88 of which is with canada and mexico. Mexico and canada are very important to north dakota. If perfection is the enemy of better, than we do not get good deals. People cannot negotiate a perfect deal. David if this is something that is good for americans, why not get it into effect right away . Time is wasting. You get more benefits, and as you know we have Mitch Mcconnell saying we cannot take it up until we are done with impeachment. We are into the new year, art we . Sen. Cramer we do have this thing called the law we have to deal with. The calendar kicks into impeachment once we receive the articles of impeachment. We might be able to take christmas off. That is a complicated factor. However, speaking for me, i would stay through this weekend, next week, next weekend, up to christmas if that is what it took to get usmca done. It is that important to get that thangood it has more value 6 billion from north dakota. It is also added leverage in the other trade deals. Trade deals have an escalating impact, cascading value if you will as we are dealing around the world. It strengthens the president s hand with china. David we are talking to senator kevin cramer of north dakota. If this is that successful, how fast can you get the impeachment trial done . What is your sense of that as one of the jurors in that trial . Sen. Cramer my sense is, and my opinion, is i do not think we ought to aim for a long trial. As much fun as it might be to call witnesses that provide exculpatory evidence and testimony for our president , i think the weakness of the democrats hand in the house coming over, we could hear their evidence and hear the rebuttal by the president s lawyers and go right to a vote on the articles. One is completely contrived. Getting on with it, getting america toward the election. It will only be 10 months later. That has more value than exonerating the president. I think lytic lease speaking, the president is coming out ahead i think politically speaking, the president is coming out ahead on this process. I do not feel the need for a long trial. David lets turn to a somewhat different subject that can sometimes divide the white house , and that is possible sanctions against turkey and russia. Sen. Cramer i tend to support sanctions on turkey and russia. I will never forget that when i first got here, i was still at the time i was still in the house when president bush was elected. We did sanctions on russia and i ended up on a trip to kazakhstan to explain it is not aimed at our allies in the region. I know these things get complicated, but i think that with certain actors and certain circumstances, it is best to look out for Americas National defense. I think sanctions are appropriate. I also understand diplomacy is complicated. I think we need to do something. David you put it so well. Diplomacy is complicated. Are you concerned that sanctions on turkey may drop turkey more into the arms of the other possible subjective sanctions, that is russia . Certainly president putin is courting president erdogan. Sen. Cramer no question about that. Allyy is an important nato , the second largest army in nato. We cannot just look the other way when they commit egregious acts. Frankly, in terms of driving them into the arms of vladimir degree, thatome ship has sailed. Unless we add strength to our relationship with turkey, we are facilitating that courtship rather than fighting back. Are onyour arm you the Armed Services committee. Gives an extent of the threat to National Security with those russian missiles in turkey. We have heard that curtails our use of f35s in the area. Sen. Cramer that is exactly right. The s 400 is the russia antiair defense system. It could be used against our f35s and it is why we stop the sale of f35s to turkey itself because we do not need our craft being tested against the Russian Defense system tested against our top fighter jets. That is part of that complicated relationship we have with president erdogan and turkey. F35sult is a bunch of will not be sold to turkey. We hope through the National Defense authorization act we are able to utilize those in our own air force. David the complications with turkey go back to the beginning of the 20th century with armenians who were killed and the question of whether it was genocide. There have been repeated attempts to declare it was genocide. That has been stopped in part to make sure we do not drive turkey away. Where are you on that issue . Sen. Cramer last week i logged unanimous consent to that resolution on the floor. It was literally the day after President Trump got home from the nato trip where he visited with president erdogan about the s 400. I support the resolution. I will vote for the resolution the next time it comes up. It felt like we need to get a reading from the president s negotiations with erdogan the engines of air force one were barely cooled down when the resolution was brought to the floor for unanimous consent. It is a resolution that needs to pass and it will soon, it certainly well with my support. David that is senator kevin cramer coming to us from capitol hill. We turned to Mark Crumpton for first word news. Mark the House Judiciary Committee has rejected republican jim jordans amendment that wouldve eliminated the first article of impeachment against President Trump on that which accuses him of abuse of power. The vote was 1723 along party lines. It was the first vote on an amendment after about three hours of debate. At the end of the day, lawmakers will be asked to decide whether to send two articles of impeachment to the house floor for debate and vote. The president says United States and china are close to signing a big trade deal. He tweeted they wanted and so do we that tracks with remarks he made last week that he liked the idea of waiting into the 2020 elections to sign a deal. Their are expectations of a tariff increase plan for sunday will be called off by those while those tops progress. While those talks progressed. Greenpeace activist scale the building in brussels warning of a climate emergency. The meeting came as the blocks leaders gathered at the start of a summit to combat global warming. The leaders are set to create ways for the 28 nation bloc to become Carbon Neutral by 2050. 10 former National FootballLeague Players have been charged with the flooding a health with defrauding a Health Care Program run by the league. They include five former players on the washington redskins. The Justice Department says players submitted nearly 4 million of false claims to the Health Care Plan and received more than 3. 4 million in payouts. 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. I am Mark Crumpton. This is bloomberg. David . David still ahead, there is gambling going on in macau, at least for wynn, with our stock of the hour up on good news on trade and on macau. That is next. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. It is time for the stock of the hour. When resorts is the best performer in the s p 500, reaching its highest level since july over optimism on trade and macau. Kailey leinz is here with more. Kailey we know macau is very important to wynn. 55 of their total revenue share. All of the flows into macau are vital for wynn. We know it has not been a great story. Gambling revenues in macau are set up all 3 , the first yearly decline since 2016. That is not a great story. Been from Geopolitical Uncertainty ranging from trade, a narrative that looks better as of five minutes ago when i last checked, and in relation to hong kong disruptions in travel because of ongoing protests. Hong kong may prove to be a boon to macau. Reuters reporting chinese president xi jinping looking to build out macau as a hub, do more to diversify the economy. That could bring more people in the door. David president xis attitude toward macau is critical. He cut back on some of the high spending for it leaders of the country and it hurt macau. If he is saying lets go with macau, that is big news for macau as well as wynn. Kailey not only gets people to the enclave, but vip gambling has been a weak point for wynn and investors. That may be a narrative president xi is changing. David there is the headline president xi likes gambling in macau. [laughter] Central Banks in the United States and europe are getting ready for the new year with their decisions. We stopped to state street Global Advisors senior economist. Ons is balance of power Bloomberg Television and radio. [ electrical buzzing ] [ dramatic music ] ahhhh ahhhh elliott. You came back looking ahead we will be monitoring the effects of our recent policy actions. It as we assess the appropriate path for the federal funds rate. Cause aents emerge that material reassessment of our outlook, we will respond accordingly. Policy does not run on a preset course. That was representative jayapal yesterday saying they will keep a close eye on the economy. So far so good. Our guest is a senior economist. What was your overall take away . My impression was he was saying we were doing well we dont need to do much on the upside or downside. I think the same thing. I think the fed is comfortable where they are feeling they have done a decent amount of stimulus over 2019. Now lets watch and see how this plays out. We are out for a long pause. At the message i got yesterday. Does it feel like trade is a bit diminished . Do we want to take that chance and conclude that now is the winning time . We hope so. We do tend to drowned out the noise a little bit and focus on the incentives that both sides have to deescalate at this stage. We are assuming its our baseline for 2020 that we do have a phase one deal and tariff relief. The timing is hard to tell. Time, as anme investor looking at 20, there are some divergences that not all head in the same direction. For example, services versus manufacturing. What are you advising investors for 2020 . The theme of divergence has been court to argue for brick many months. Diversions between manufacturing and services but also between Business Investment and consumer spending. The interesting thing, this is not just a u. S. Theme but around the globe. The way we look at it is to say there is a resilience in this divergence. We are not firing on all cylinders but the cylinders that mattered the most namely spending are firing. We see the glass halffull. Another divergence has been the u. S. Particularly in equities versus europe. D. C. You see that continuing into the new year . I think you have to differentiate between the recent past when equities have caught up a little bit, there is a long way to go for it. , the rest ofr view the world does better you are looking at a bit of a closing of that performance gap. Geto believe that if you trade deescalation that could benefit europe more than the u. S. Europe is more exposed to the global cycle. You could potentially see more of an upside. That takes us to frankfurt. Whatdid you take away from she said, what the ecb said today . Me is core conclusion for that there is no urgency for immediate action. Lets see how the Economic Data unfolds. There are still early but broadening signs of a bottoming out in the Global Manufacturing cycle. That speaks to the german situation directly. Materializes and strengthens over the next few months, that should allow the ecb to just assess. I think we are not in a rush to reverse course and normalized. At some point they will want to normalized. They are assessing the ecb but also met him lagarde was explicit in saying we need some help. It the eu figure out what means to be investing in green. She was direct and thing you need to get moving. Not just the ecb but many Central Banks have been desperately calling for additional levers of policy. Problem because we have been very onehanded in terms of the policy response. We do need to do something more red when she first came in as the head of the ecb, our initial response was that perhaps she might have more impact not just on Monetary Policy but on fiscal policy. Its a lot of hurdles to be crossed. I think she will be more verbal more direct. It doesnt hurt to have been a senior french politician. Guests. Nks to our now for first word news. As we have been reporting, the House Judiciary Committee argued through a marathon session today ahead of voting to send impeachment charges against President Trump to the full house reedit nancy pelosi sounded confident democrats will have the votes to impeach the president next week. She says it is up to individual lawmakers to weigh the evidence and decide for themselves. Publicans seem unwavering in their opposition to impeaching the president. The Judiciary Committee rejected an amendment that would have eliminated the first article of impeachment which accuses the president of abuse of power. North korea is criticizing the u. S. For its criticism of the Ballistic Missile test. The u. S. Called the action hostile provocation. The north called the u. S. Comments foolish and said the lost its chance to salvage negotiations. This comes ahead of a deadline to proposejongun acceptable terms to revive the talks. A crowd chanted hong kong people revenge and anger at police. Use of tear gas and widespread arrests. The government is not showing any signs of making further concessions. A fire broke out on russias only Aircraft Carrier today. 12 sailors were hurt while putting up the flames reedit carrier has been deployed in recent years to syria. It had to be towed thousands of miles to its home port. Its billed hundreds of thousands of tons of oil and caught fire. An accident in which one sailor died. Last year, a crane fell through its deck. Global news 24 hours a day on air and it could take my bloomberg powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton this is bloomberg. Up we speak to the Lieutenant Governor of new york. She joins us to talk about her new role as the chairman of the democratic Lieutenant Governors association. Of powers balance television and radio im david westin. The new york Lieutenant Governor wears several hats including working on longterm economic plans for the state, addressing the lack of skilled workers and working with representatives in washington. Now she is the chair of the democratic Lieutenant Governors association. I am pleased to welcome her. What does the Lieutenant Governor do . Now you are chair of the democratic Lieutenant Governors across the country. State has a definition but i was theto face of the increase of the minimum wage. I chair the Economic Development councils around the state. I was on the ground making sure we create jobs and helping new businesses prosper. It were talking about critical jobtraining skills. Have anoyers opportunity for individuals to have good jobs. I get to work on so many issues. Climate change, for example. This has created a whole new opportunity for us in State Government to lead because we have had such an abject failure in washington. The president walks away from our obligations on the Paris Agreement to protect and save our planet, we can step up in new york. Its not defined but it is very expensive. David its a wide range of important issues. It how much is private and how much is public . What do you do with those partnerships . How do you measure success . I come from a place that did not know what success was. I am from buffalo, new york. The manufacturers left and they left us high and dry for two or three decades. We measure success by keeping young people and communities that have been given up in the past. We have turned the corner. There are more millennials and young people going to upstate communities that have been abandoned before. New york city is a mecca for technology. Thats a barometer for success. How many jobs we have created, major infrastructure projects, how much investment we have had, airports, bridges, roads, the subway system. We are now creating a whole new system that is functioning and the contrast between what is going on in the state of new dysfunction what and gridlock looks like. Its like a day. Thats why in my new position i am talking about what we can do in our capacities as Lieutenant Governors not just what is good for the state but what is good for the nation and that is to elect more democrats. David talk about that in your new role as chair. Is that best practices . To talk about what we can do and share . How do you lead that group . We are a political organization. We are a sanctioned National Democratic committee. I work closely with our national chairman. He has had a 50 state strategy saying there is no state regardless of whether it is purple or red that we will leave untouched. I will be out there helping ntify race until our making sure people have access to good polling and data and helping them win races. Having one races in a state of new york, its not all manhattan and brooklyn. Upstate new york is very conservative. Only go to places like North Carolina to help the Lieutenant Governor, a new democratic governor to be a partner that is important. I can speak to those people and talk about how you frame our values as democrats in a way that will resonate is working men and women who feel they have been abandoned. It is an opportunity to talk about messaging in the places we need to win for our lieutenant pavenors but also helps the way for democratic candidate next november. David is it hard because new york is perceived as so blue . Unlike other states . It depends on what part of new york state your from. The population is intensely blue. The geographic. Area is particularly red. I have are presented the blue area in congress but now i represent the whole state. The people love the fact that we are now working on making prescription drugs more affordable. The reason i won my seat in congress over Republican Voters in a seat i never had a shot to win was because i talked about protecting medicare and issues that resonated across party lines. Thats what we need to do more of. To remind the voters, democrats who have abandoned us, that nobody has your back more than the Democratic Party and i can make sure as chair of the party that this particular organization the democratic Lieutenant Governors who have better polls than everybody of whats going on in the states of how we can get that done and deliver more victories for democrats. David all politics is local i have heard. Lets talk about state and local taxes. Its a thorn in the side of people who are watching this. Of movement chance on that in washington . The governor and i are working on that. It was a heart in the knife of new yorkers. Donald trump has abandoned the state because he turned upside down the whole fundamental principle of taxation that has been in place since Abraham Lincoln was president. No double taxation and as a result, new yorkers are paying exceed billion dollars more in taxes 16 billion more in taxes. We sued in court and try to find alternatives, charitable organizations that people could contribute to. I would love to give you an answer that we are solving this. I think it comes down to having a new occupant in the white house who understands the state that new york, california and new jersey are important. Taxing people twice on their hardearned money is unconscionable and i believe unconstitutional. It is i have a oneyear term. I will be in this position going to dnc meetings all the way through 2020. This is our opportunity that we never had before because when i was first elected, we only had 14 credit Lieutenant Governors. Now we have 24. All of the action is now in the statehouse. Andd stay tuned, come back give us an interim report on how youre doing. Coming up, President Trump signals progress on a trade deal with china. Is it real or another tease . We talk to a former ambassador. Thats next. This is balance of power on Bloomberg Television. David this is balance of power. Says we are very close to a big trade deal with china. Reportedly the u. S. Is offering to back some of the tariffs it has imposed. Only really close to a deal with china . I think we are close. Its very important that the terms do not go into effect. That will have a Chilling Effect on the chinese leadership. It will strengthen the hardliners. Its important we do not increase tariffs on december 15. If we do not, if there is agreement then there are lots of questions to come up. How big of a deal is it . The details are always in the fine, one doesnt know how it will be interpreted. After that, we have to remember as americans that there is no international tribunal. No judiciary to decide whether or not each party is living up to its end of the deal. Its up to the countries. As reported in, the press that puts a lot of pressure on china because the u. S. Is calling the shots. If they were to increase the tariffs. The u. S. May be proposing suspending the december 15 tariffs that also cutting the existing tariffs by 50 . Understand we can put them back at any time if we think you are not in our judgment complying with this. Is that the way to deal with change because there have been questions whether the chinese followthrough on their agreements. There is clearly that question. When i was the ambassador to china iran into that. China will Say Something and write it down on paper but not follow through her he had there is a disconnect between the people in china and the chinese government. Chinese people, i go to china often. Chinese people like americans. They like American Values. They look up to American Values they just know that in their country, their system they have to live under what they have. They are doing ok and making money and raising their family but chinese like american people. We should keep that in mind. Not get too wrapped up about the governments fighting each other. David it seems like we have two leaders with strong ego. Both of them seem to feel that they need to come out of this saying they want. Is that possible . Can we do something so each president can say i got something and i didnt give up that much . Saving face is important for both president s. Youe is no doubt in my mind have to split the baby than wrap it around the red ribbon for them to be able to the good part there unpretty stability and thats very important. David theres a headline the President Trump will be meeting with an advisor to talk about the u. S. , china trade deal this afternoon. It seems to be moving quickly. We do have a deadline coming up on sunday. Let me ask a more basic question. Will we have accomplished very much . We had relations with china before we started this and it went backwards. Rb going to be ahead of where we started out or going back to neutral . If the current tariffs are rolled back 50 , that is huge progress. It makes a huge difference. Concerns the United States government has with china go beyond trade. National security, geopolitical positioning and other factors. As a country we have to recognize china is china. Its not going anywhere. Its going to be the Biggest Country in the world. We have to do with them with respect and find a way to deal with them so they deal with us with respect also. David you said the real issue is National Security, tech, intellectual property. Is there a way for us to make Real Progress on that without challenging xi jinpings sovereignty . There is a way but nothing is 100 . Sovereignty is so important to any country especially china. China is not going to give up made in china subsidies and focus on new technology. China wants to be a big country just like any country. Offke my hat off my hat to them. Fairness issense of different from the american sense of fairness. We have to understand that. David thank you so much. I am happy to say we will have more of the ambassador in our second hour. We will also talk about passing the usmca in the senate. Stay tuned for special coverage of the u. K. Election results. That will come up at 1 00 p. M. Eastern when the polls close. This is bloomberg. A tale of two oil giants. Europe gears up to battle climate. New European Commission president unveils aggressive climate goals. Now, the hard work begins. To flare or not to flare. The Railroad Commissioner talks about ways to deal with national gas and flaring. Im alix