David when will we hear the arguments . They are in resets until they are in recess until tuesday at 1 00. What happens until then . Firstwe will see the response from the white house to the Senate Summons by 6 00. By 5 00 tomorrow, the house will have to file its trial brief. The White House Defense team then has until monday at noon to file its trial brief, and by monday at noon the house to respond to the white house summons. Then by tuesday at noon, the house to respond to the white house trial brief. We could get a huge amount of documents between now and the start of the trial at 1 00 on tuesday that reveal exactly how the president s team plans to defend him and how the house plans to prosecute their case. David as i understand it, the senate has not yet decided the rules they will follow. Mitch mcconnell will dictate it. They have to vote on it. Is that what will come up first at 1 00 on tuesday . Anna that is our expectation. Looking for the resolution from mitch mcconnell. What we are looking for is where it isgns with and where different from the president of the clinton impeachment trial in 1999. Hewnnell says he will closely to how that trial is carried out. The big question is witnesses. What that would look like. Whether they would have a vote on each individual witness or whether there would be a package deal worked out between the leaders of the democrats and republicans. David thank you so much. Now we come back to new york and katie gray felt. We talk about secretary mnuchins decision of 20 year bonds. It is different than it mightve been, but not as different as it might have been. We were talking about 50 and 100 year bonds and 20 year bonds had not been in that conversation. It makes sense treasury went with that 20 year. It is within the existing market structure. There might be a better demand picture for these bonds. Pensions, the Insurance Companies that are going for an ultra long bond. The 20 year would probably appeal more to your usual funds. Have in the meantime we housing numbers that were very strong. Katie it was a bit of a barnburner. The highest in 13 years. That helps homebuilders. The homebuilders index was at its highest since 2005. It is helping keeping the broader index rallying, even though we have pulled back. It is softer than we were expecting, but we are still near cycle highs. Both the one year and five to 10 year or higherthanexpected. David down a little bit but still above historic norms. Thank you so much for that great reporting about what is going on the treasury. It is time to figure out what the markets are doing and how they may or may not reacting to todays top stories. For that we are turning to Abigail Doolittle. Abigial not a lot of reaction. It has been such a wild week with headlines, the trade deal finally being signed. All of the banks reporting earnings, traders are tired at this point. David it seems like they are near alltime highs but they are not selling off. People could be taking the money off the table. They are not doing that yet. Abigial seems like a little bit of a pause. A tiny bit of consolidation. Still gains, but all eyes on earnings season. Now with the banks out of the way, it is all about technology. David banks did rather well, led by j. P. Morgan. Technology is next. technology is next. Especially the chips. On a year on year basis their profits decline in the double digits, yet you have the chip Index Trading at more than 20 times forward pe, the highest in the decade on negative growth. Something has to give. Hopefully they will be able to put up the number. One positive place for tech, alphabet now in any elite club with apple and amazon. David does that Margin Expansion or extra earnings . Abigial they have executed. They have done a nice job so investors rewarded them. If they can get earnings and margins to expand, perhaps reason to think that trillion dollar mark will keep climbing. Much to Abigail Doolittle for the market check. Now we turn to Mark Crumpton with first word news. Mark president has named Alan Dershowitz to represent him in the Senate Impeachment trial. Dershowitz confirmed he will be making oral arguments. Addedent trump also further whitewater prosecutors Kenneth Starr and robert ray to his team. Kenneth starr was independent counsel for the investigation, which led to bill clintons impeachment in 1998. Irans Supreme Leader blasted the u. S. Today. He let friday prayers for the first time in eight years and said iran has delivered a slap to the u. S. Image as a superpower. He was referring to this months military confrontation. Iran fired missiles at u. S. Bases in iraq. To tapamas may need International Debt markets as it faces the steep cost from recovering from the most destructive hurricane ever to hit the islands. Officials say the government will probably borrow about 500 million in the coming months to handle the roughly 3. 4 billion in losses and damage from hurricane dorian. Dorian it the bahamas in september, killing thousands, causing widespread flooding and ripping apart thousands of homes and businesses. In india, nationwide protests continue against a new citizenship law that excludes muslim immigrants. Demonstrators were on the steps of an iconic mosque. They carried signs criticizing Prime Minister modis hindu nationalist movement. The protests have led to 23 deaths. 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. Is bloomberg. David . David coming up, trade is all around us, from the u. S. China trade accord to the ratification of the usmca to a visit from the eu trade commissioner. We are joined by Myron Brilliant from the u. S. Chamber of commerce to give us his scorecard. On is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. This week brought closure to two things we thought would never end. The signing of the u. S. China trade deal in the ratification of the usmca. That does not mean 2020 will be free of trade uncertainty. We welcome Myron Brilliant. I said i was not sure we would ever get to this point. At the same time, start with the china trade deal. It is over but it is not quite over. Myron that is absolutely right. We can pat ourselves on the back for about 24 hours this week because we did get the phase one deal signed. I was at the white house. The passagelly got we needed on the usmca through the senate and we can go forward on the implementation on that deal, which is very important for north america. Also we have more work ahead. We have more work on china can think about our relationship with europe. Incan open up new markets africa or Southeast Asia or other places. There is a lot on the trade agenda. , as i back on china understand it, this is different from the trade deals. Either party can snap back to tariffs if they decide the other side has not behaved themselves. United states has that you are on probation. Myron i was with the vice premier on monday in china before he flew back on tuesday and i can tell you his focus is on full implementation. We know from past deals with china that has always been an issue. Both sides have a process by which they can engage first at the deputy level, and that the more senior principle level. If the implementation does not go forward in certain areas, each side has given itself and out and tariffs could be placed on or other measures taken. That is not where we want to be. We still have work to do to reduce tariffs in our economy and in the bilateral relationship and we have work to address the systemic challenges we have in china around technology issues. David two issues. Even if the phase one goes perfectly, we still have a lot of goods under tariffs. Myron over 350 billion. David exactly. Phase two, will we get to that . Now it sounds like it is not until after the election. Myron i think that is a big mistake. My message has been consistent. Pat ourselves on the back for getting through the first phase for reducing some tensions, areas where china wouldve done some stuff, but we needed to put it in writing and get accountability and enforceability. Now were going to moved areas important to chinas economic model. We cannot wait. We will move to the phase now. David i was talking to michael from, and he said dealing with issues like buying soybeans, you can do that bilaterally. When we get to structural issues, you can do that multilaterally. Myron i agree we are always better off working with europeans and the japanese. The european trade commissioner was in town talking about subsidies and other issues europe, japan, and United States should lean on. We are not going to do it that way. We are going with his administration to see bilateral engagement and we do need to get at industrial subsidies china has at the local level. We need to get it data localization issues. Would it be great to work with europeans and the japanese . Sure. Lets also be realistic and know there is a bilateral peace of this that has to be addressed. David you mentioned phil hogan, the new eu trade commissioner, came to washington. Our vonnie quinn got to sit down with him in an exclusive interview. This is part of what he had to say. Is the objective, to reset the relationship and try to understand each other and find Common Ground with United States in relation to many issue. We start on a positive note. David a positive note, but he is talking about trade irritants. We have a lot of issues with europe, not to mention boeing and airbus. Myron i would start with we need a framework between europe and the United States that is multi down lateral that is multilateral, regional, and transatlantic focused. We need to put forward a program at work with europe where we are joining forces as much as possible. We do have irritants in the relationship. The airbus and boeing dispute is still out there. The Digital Service tax issue, which france has led on. We have to get a resolution on the oecd. I think phil hogan spoke to that in a positive way, recognizing this cannot be a french oneoff or canadians moving their own direction. There are areas where i think we can afford a different kind of alliance with europe, but there is also the danger that fragmentation in europe and fragmentation of relationships could sit in. David focus on the digital tax. As i understand, the eu sort of let france go its own way, let it go independently so we are not negotiating with one, we are negotiating with 27. We talk about oecd, they talk about it, are they ever going to get it done . Myron what we need is action. The bottom line is the United States has taken action. We have seen what happened here. We have seen the french finance minister, in to town. The french finance minister come into town. We have to get a resolution and it will not be bilateral. It has to be a multilateral context. We have to get it done and i would hope the europeans in brussels understand this relationship is predicated not just on trade flows and investment but also on digital and technology cooperation. We will have a divide if we do not Work Together. David you mentioned the need for an overall framework in our discussion with europe. Can we agree on the size of the table . When we had problems before the eu came back and said we will negotiate on manufacturing goods but we will not talk about agriculture. Congress says you have to talk about agriculture. Can we do a deal with europe without agriculture . Myron it is very unlikely to piecemeal that way. The chamber created idea which we got the Previous Administration to work on. We fail collectively to get that deal done because the ambition on both sides of the atlantic was not there. We need to deal with manufacturing issues, but we also need to deal with services and digital issues. If we can do that, we will buttress the Global Trading system and Work Together on wto reform and other areas where we have common interest. If we cannot do the big picture, if we cannot get there because ambition on both is not there, we could have a fractured period in our relationship. We need to move past that and recognize where our real interests lie. David it is fair to say that we have fewer trade uncertainties today than we did one year ago. We have taken care of at least a couple of big ones. Myron better place than we were, no question. David looking ahead to 2020, what you think the biggest trade uncertainty is . Myron the biggest concern for me is the next step with chinas and the United States on technology and related issues. We have not put to rest all of those concerns. What we did was take a step forward and restored some trust in the relationship. We have a long way forward on china. China remains the number one priority in the board rooms, remains number one priority for our government, and china and the United States, it is critical the countries continue to build on this path they started with phase one. They are not complete. Well see where we go this year. David always great to have you. That is Myron Brilliant, head of International Affairs at the u. S. Chamber of commerce. Still ahead, big news out of the white house. It has put together an allstar defense team for the impeachment trial next week. The host of Bloomberg Law is here with the latest. Ons is balance of power Bloomberg Television and radio. David this is of a good balance of power on Bloomberg Television and radio. The impeachment officially got underweight yesterday with the swearing of senators, but then promptly adjourned until tuesday. Things behind the scenes are moving forward with the white house announcing today highprofile stories such as Kenneth Starr, robert ray, and Alan Dershowitz will be joining the defense team. We welcome my colleague june grasso, anchor of Bloomberg Law heard on bloomberg radio. The team what you think of that . June i think he got legal star power. He was a reality show host and he is looking for lawyers to represent him who are also tv stars. All of these three have been commentators on fox. He has tweeted some of the things they have set on fox. Thatently he was concerned the leader of the team did not have the experience. He wants someone who is going to be good on tv. He has these three. They come with a lot of baggage. Ken starr made arguments in the clinton trial that might be used against him. Alan dershowitz has ties to Jeffrey Epstein and a defamation case. David ken starr experience with impeachment trial, but he lost. Continuallyo argued that president clinton had a duty to produce evidence according to the law. David you make such an important point. The president may be thinking about the broader minds of the American People. Maybe that reflects something. He is not as worried about getting votes in the senate. He is worried about how this plays with the rest of the contrary. June exactly. There was a question about whether or not House Republicans who had been his fervent defenders during the impeachment hearings in the house like representative jim jordan would be part of this team. He was considering that but was talked out of it. He is going with the legal star power rather than those who will seriously defend him. The question now is we do not know what is the defense, exactly. We will learn that. David one thought on somebody who will get a lot of tv exposure is the chief justice of the United States. We had a glimpse yesterday when he got sworn in. He also has a job to the American People to communicate something, doesnt he . June we were talking about how that moment, all of the partisan bickering, that faded away in the moment of history and tradition when the chief was sworn in and then swore in the senators. As you and i have discussed, he is a man who knows history, who loves history, almost became a historian. He wants to be remembered as running a trial that has at least some to coram, even if behind some decorum, even if behind the scenes things are going on. I think you will follow in the footsteps of his predecessors. David many thanks to jim grass out, host of bloomberg to june grasso, host of Bloomberg Law. It is time for the stop of the hour. Schlumberger shares were up as much as 3 today but have come off of their highs after the Oil Services Company surprise to the upside in the Fourth Quarter. Kailey leinz is here to explain. Kailey they beat on earnings, which is positive, and they posted their best Fourth QuarterSales Performance since 2014. They saw incredible Revenue Growth outside of the u. S. , latin america, the middle east, europe, growth between 5 and 9 . In north america, sales growth was down 13 . That underscores their decision to continue to pull back on that north american shale business. Today they say theyre going to cut their fracking in half in north america to split up the operations because shale drillers in the u. S. Are pulling back. There is pressure to cut back on spending, not just focus on quantity of production, and that impacts the Oil Services Company. David and they borrowed a lot of money and her worrying about and are worrying about paying. Kailey now we are shifting out of the shell patch when that has been the narrative for the better part of the last couple of years. The chairman of schlumberger was speaking in saudi arabia and he says shale growth is not going to be what the market thinks it is. He thinks those production estimates would get revised lower in the coming years and that may work to schlumbergers benefit as they only get 30 of the revenue in the u. S. They are much more focused internationally. It is not good for a competitor like halliburton which gets 60 of its revenue in north america. You are seeing schlumberger fare better. David thanks much. That is great reporting. Up next, President Trump impeachment trial begins in the senate as the democratic president ial race comes down to the wire in iowa. How the impeachment proceedings may affected. This is balance of power on Bloomberg Television and radio. David from new york, this is balance of power on Bloomberg Television and radio. Im david westin. For bloomberg first word news, we go to Mark Crumpton. Mark mike pompeo is breaking his silence over alleged surveillance and threats to the former ambassador of ukraine. In interviews with conservative radio hosts, secretary pompeo says he believes the allegation will prove to be wrong, but he had an obligation to evaluate and investigate the matter. He claims he was not aware of the allegations until earlier this week when Congressional Democrats released documents from an associate of President Trumps personal attorney. In ukraine has rejected the Prime Ministers resignation. President zelenskiy says it is not time to shake up the country. We will bring you more details as we get them. Americans wereys hurt in those missile attacks in iraq. That contradicts President Trumps statements. 11 troops were treated for concussions. The attacks were lost in retaliation for the u. S. Killing of a Senior Iranian general. The number of migrants entering europe from turkey rose significantly last year. The European Union says most were fleeing violence in syria and afghanistan. Migrants tried0 to enter europe without permission in 2019, up 46 from the previous year. Chinas birth rate has dropped to the lowest level since at least 1949. National statistics show the number of births per 1000 people declined to 10. 48 in 2019, the lowest on record. China has tried to slow its declining birthrate for years, easing its stringent onechild policy in 2013 and allowing each family to have two children in 2016. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. What im missing is a focus on growing the economy faster and strengthening the competitiveness of the economy. It is terribly, profoundly important that we address we become athat more fair society. But in the medium run, in the long run, our capacity to do those things will depend on the capacity of our economy, will depend on how much we are able to grow our economy. David that was former treasury secretary Larry Summers weighing in on what he did not hear about in the democratic debate earlier this week. For their views, we welcome our , andical panel, al mottur here in new york, ryan burger ski, republican strategist, and author of theyre not listening. Let me start with you in washington. ,o you agree with Larry Summers that democrats are not stepping up on the question of growth . That is something President Trump pushed hard when he was running for president. Al there is some fairness to the critique that it can be equally applied to the Republican Party and the president. One big issue that is not being addressed that both parties agree on concept that can grow our economy, and that is infrastructure. M we invest in our economy, and republicans can claim victory. More importantly, provide that growth that secretary summers is talking about. We have had a tax cuts and the deregulation that most democrats dont want to agree with, and trump wants to claim credit for where we are, but we need to have better growth. Said one of the things he is that we need growth in the middle class, not just the upper class. An implicit criticism that the tax cuts what to the richest people in the country. Ryan growth is important for the country and to move people out of the upper class and working class, but if you want to talk about the poor, what people should focus on is tighter labor markets, revamping our immigration model. We saw that this week when they the we need to work on server forms to stop the loopholes, stop businesses from oversaturated the market with cheap labor, which is affecting working class americans. David so you think we should have less immigration . The labor market is pretty tight right now. Certainly, wages have gone up 2 , but they should go up more. If the economy was growing as the president said it would and it is growing a lot wages should be of much more for the working class, and they are not there yet. It is simply because we have these massive visa problems and immigrants. Most of them dont have high school or college degrees, and that is affecting working class people competing with them in those limited jobs. David at the same time that we have this caucus in iowa, primary in New Hampshire coming up, we have impeachment coming up for about two or three weeks. What will that do to the democratic candidates, especially those senators . Al the conventional wisdom is it will hurt those three. Im not sure. The voters in iowa and New Hampshire are very sophisticated. I can vest 2016 in New Hampshire, and these people pay close attention to whats going on. This is probably the most volatile cleric flirt and primary competition weve had in years. There are four or five peoplethh other. There is typically a surprise in these races. It is anyones guess who will win. While the conventional wisdom says biden and buttigieg benefit, there will also be opportunities for the senators we discussed being on tv talking about impeachment. And they will be seen by the American People and the voters in those states as do their constitutional duty. The last thing i would mention is there is a risk for the Vice President here, in that if the cede on having witnesses come, they may insist on having some witnesses that make his campaign uncomfortable. Cedewhen you have a campaign le that, it is difficult to respond, and thats a wildcard. David i want to get to the witness question. There is a question whether some of the senators from moderate states will have some pressure to vote in favor. Susan collins came up with a statement that said she may be open to that. Said what i need to hear the case argued in the questions answered, i tend to believe having Additional Information would be helpful. I would likely support a motion to call witnesses in that trial, just as i did in 1999. What do you think the likelihood that some witnesses are called . I think its a very strong chance, considering collins and cory gardner are up for reelection this year, the daily pushing. I dont know if they will come forward. Rand paul also says that he hunter biden to appear on the witness stand. At this point, there are six or seven senators that we are looking at to see how they will turn. Tennessee,nder in mitt romney, kyrsten sinema, the senator from alaska lisa murkowski, Susan Collins said wd joe manchin from west virginia. Those are the ones that may flip back and forth. Most have said how they will vote already. Add doug jonest to that list. It is not a given that he will vote to convict and remove. I would add senator ted cruz on the right. He has stated he would be willing to consider witnesses if appropriate. David as a practical matter, when will this be over, ryan . Ryan i would give it a few weeks. It is hard to say, especially if witnesses come forward. ,t hunter biden is on the stage politically, this will go on for a long time. David al mottur, how does this play for the democrats politically in november . Is it going to be a factor in the election . Of the reasons Speaker Pelosi he was reluctant to move in this direction is she was not certain it helps the democrats in the general election. She ultimately moved to this because she felt she had no choice, both on the caucus and the substance of the allegations. I dont believe it will necessarily help or hurt either side very much, unless there is something that comes out of this that is new and really damaging. But trumps base is solid, as is the democratic base. Unless it goes on for much longer, it might become a problem actually for the democrats. David thank you to our panel. Coming up, we will get a thirdparty perspective on the phase one u. S. China trade deal mexicos former ambassador to the peoples republic of china. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Blackrock made quite a splash this week with ceo larry finks letters saying the firm would redouble its efforts on Climate Change to the types and investments it made. We sat down with the former ibm ceo, and the man who heads the rock creek park, and asked what Sustainable Investment really adds up to. If you view tsg as your brand, this is your brand. It is different than you view it as an initiative because you think the timing could be good. If you live by that as your value system ill give you a quick example. We watched this thing called smarter planet. Smarter solutions in studies. We launched it in 2008. It had to do with climate, had to do with cleaning up galway bay, the hudson river. All these things. Those products were every bit as economically attractive to our returns and Everything Else we were doing. You can say, you are a technology company, you could use software but nonetheless, we thought there was an emerging need for smarter cities, smarter environment. By the way, our workforce, hiring, the applications of ibm after we launched quadrupled. David this is climate, the. Nvironment, esg social and governance, do they drive as much as a practical matter . On the environment side and energy, its not proven that cleaner sources of energy to compete in the short run and in the long run. When it comes to social and governance, governance has been around a long time. Sam was leading the charge for a long time. Of iss. Mber the days the use of governance has been around a long time. What is changing that is companies are really adopting it. Those that did not care about Risk Management got into trouble. Now its an important part. David that was on bloomberg wall street week. The full episode premieres tonight at 6 00 eastern time on tv and radio. Its also available on radio, bloomberg. Com, and on the terminal. Next week, complete coverage of the World Economic forum in davos, switzerland. Among the World Leaders we are speaking to other Prime Ministers of norway, greece, the netherlands, and jordan. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. It was a long time coming, but was it worth the wait . Views offul to get the a thirdparty about the value of the u. S. China trade deal. Served asardo mexicos ambassador to the peoples republic of china. He has also served in the private sector in the u. S. Today from us washington. Ambassador, thank you for being with us. Let me start with something that we heard from michael froman, the former trade representative. When we asked him how valuable this phase one agreement is, this is part of what he had to say. Agreement judge the about whether it advances the kind of Economic Reforms we want to see in china or not. The big question is, how do we accommodate an economy as important and large as china that follows quite a different set of rules into the Global Economy . That requires us to have more convergence around a common set of rules. Agree that is the big question, and if so, what is the answer to what . Jorge that was the whole reason the trade war was launched in the first place. 301 complaint meant to address certain things, subsidies, state owned enterprises, transfer of technology. None of these were addressed in the deal. It is a deal, a purchase agreement. I dont think it addresses anything that had us excited when it first started, then good things could be accomplished. I dont think much was accomplished, but nonetheless, a deal is better than no deal. Some uncertainty removed from the table, we dont seem to be ratcheting up further in tariffs. Advantagee be another in this phase one, even if it didnt get everything it wanted to achieve, and that is that it got chinas attention . Nobody has gotten china to take seriously the complaints we have about trade. Jorge yes and no. The u. S. Already had chinas attention. At the beginning of the Trump Administration, it had much more attention than they do now. This is what happens. The biggest fear for china was losing that certainty and offered as an investment destination. After the trade war, after the zte,ies list, after the it lost a lot of foreign contractors for its products. After that was lost, they lost the attention of the United States because they said we have nothing more to lose. That is when you started to see china walking back, saying we are no longer in a rush because there is not much for us to gain after all we have lost. Yes, you have the attention, but in the process, the u. S. Overplayed their hand and lost chinas impetus to quickly reform. David when you referred to thegs like huawei, president and others state it is a National Security issue, not just economic. Was it an inevitable in some sense that there would be some this and tangling of these relationships because of National Security concerns . We are dealing with a rapidly rising force in the world, economic and otherwise, that runs their economy in a different way, where the government has a lot more say in what companies do. Jorge there are two pieces to this question. One is the National Security aspect, where the 5g, nato countries use huawei for their networks, and whether it opens the door to espionage. That is a different bucket from huawei being a company out there exporting its products. Now you have all of these incritical countries like south america or asia that have been looking at huawei as a good product, and not have to question whether it is going to make it viable in the long term being on the entities list. Now, huawei has to make the case for itself, apart from the security issue, but just as a viable company. Why would any country ask huawei to build their 5g network when they may not be around for long as they are on the entities list . Once you lose it, it is hard to regain. That is why they realize they have lost certainty, and they are not as pressure to make bigger concessions. David we are talking with jorge guajardo, former mexican ambassador to beijing. Tell us about phase two. One of the responses from the Trump Administration this is just the beginning. Phase two will address the larger issues. Jorge i am skeptical about there being a phase two. Have been removed from the trade war, so china will not be pressured. President trump said it would be after the election. If after the election, probably no rush. I will not be holding my breath for a phase two agreement. Expectdo you negotiations will begin right away or they will put it off . Jorge they will put it off as long as they can. China has announced they dont want to rush into the phase two agreements. I dont see them starting anytime soon. I think we still have to see how well the phase one is implemented, a lot to be seen. I dont see phase two starting before two years. Practicalt is the effect from your judgment on the u. S. Economy from what has gone on with china . Any material effect on the u. S. Economy, is it slowing us down from where we otherwise might be . Jorge i think the u. S. Is losing competitiveness, the beacon it offered around the world to establish multilateral agreements. The u. S. Was the beacon of free trade, now it is the beacon of managed trade. Imagine the case where it was china advocating for free trade and the u. S. Advocating for managed trade. The u. S. Uses loses some moral standing there. U. S. Farmers have to make a decision whether they want to sell their products to a capricious china that may retaliate in the future, or continue their existing clients or customers in mexico, which is a big buyer of agricultural goods. This managed trade will confuse the situation in the u. S. In the process, farmers and suppliers may lose focus, and that is something the u. S. Risks losing. David one of the things included in the agreement is some opening up of the capital markets, Financial Markets of china to u. S. Investment. Is this something president xi wants to get done anyway . Jorge they have been promising opening up the Financial Markets forever. When they first entered in the wto, again in 2017, and now promising opening up for credit cards. I hope they do, but there may be no more market when they finally do. Anyone who goes to china knows that it is all alipay. They will cheat kicking the can down the road and promised to open. I hope they do but im not holding my breath again. David we are speaking with jorge guajardo, former mexican ambassador to beijing. Does china need our capital . Is that something they need as they try to restructure their nonperforming loans . Needs i dont think china u. S. Capitol as much as u. S. Validation for technology, validation for its products, and just its standing. I dont think capital is what they need most right now. It is not just in the u. S. They can look for capital in other places, but it needs the u. S. Validation, even in accounting standards for their search for capital. Make of thedo you chinese peoples response to these negotiations with the United States . Not been muchas nationalism yet. I have always been concerned by the way President Trump has approached his whole trade war where he is constantly saying that china is the enemy but president xi is a close friend. It used to be before that u. S. Leaders would say we have nothing against the chinese people, it is just their government or any other country they would have issues with. President trump has gone the other way saying china is the problem, but xi is a good friend. Even though it gives president xi a lot of faith, it makes the people in china skeptical of u. S. Intentions, gives rise to nationalism. David many thanks to jorge guajardo, former ambassador of mexico to the peoples republic of china. We will have more on radio, including a discussion on usmca. Street premieres at 6 00 p. M. This is bloomberg. Jonathan from new york city for our audience worldwide, im jonathan ferro. Bloomberg real yield. Now. Rts right qe . Ng up, is it or isnt it thats the question for the Federal Reserve as risk alice the Global Economy shows further signs of stabilizing. We begin with the big issue. One question for the Federal Reserve. The fed continues to tell us this is not qe. The market believes it is qe. Which is all that matters. They will