What is the final draft going to look like . Shares tumble after hours for snap. Can overhaul an overhaul of the snapchat app break even . Europeans talk about stock. Futures less than half an hour away from the start of cash trading, and mixed trade. 50 showingxx unchanged. Ftse futures, dax futures, and ibex 35 futures all down a little bit. We do have a slight gain in cap futures. Cac not a lot of movement in terms of index futures. It has a risk off field field. What i have is a onemonth chart of treasuries so you can see that yields peaked at the end of october and have been coming down fairly steadily ever since. If i twitch it over to a you can seeart yields have come down in a pronounced way over the end of yesterdays session. The concern about the tax issue is getting investors to go in forbuy treasuries, looking a little bit of safety. E see them during this across it could be a risk off day. About red thing weird thing about the u. S. Story is the shape of the curve. U. S. Data are generally fairly good at the moment. So what is going on . Lets talk about the markets around the world. The brazilian markets got knocked around yesterday. Equities down 2. 55, the reality that move. That is a story to focus on. Greek banks got knocked pretty hard yesterday. A story to Pay Attention to. It has been coming up over the last few days. Lets talk about with the quality space and the bond markets. Argentina surprising the market yet again. Fighting inflation down there, that seems to be the message coming out of mccree macquarie and the central bank. 1. 65,s trading down by some risk off trade coming through. The markets have been on a solid run of late. Withee the similar story asian equities, they have held onto good gains over the last few days. Taking down a little bit but not by much. Lets get a bloomberg first word news update. Heres juliette saly. Juliette the democrats in the u. S. Have scored a clean sweep in three elections. Ap and nbc news predicts the next governor of virginia notching a victory in a state that is seen as a keeper a measure. Keeper are mature. New jerseys new executive and l de blasio has bill de blasio has one another term as new yorks mayor. According to an estimate from congresss joint committee on taxation it punch day there tax chairmanplan and the kevin brady searching for new ways to offset the tax cut to avoid the threat of a democratic filibuster in the senate that could kill it. We will be talking tax with u. S. Treasury secretary Steven Mnuchin at 4 30 p. M. London time. Chinas overseas shipments held up at underpinned by robust global demand. Imports showed the strength of the economy. 6. 9 as imports rose by 17. 2 percent year on year. That left a trade surplus of 38. 3 billion. The u. K. Prime minister theresa may is weighing whether to fire a member of her cabinet just one week after her defense secretary quit in a Sexual Harassment scandal. According to reports in the british media, may is likely to dismiss her International Development secretary who held unauthorized meetings with israeli officials behind the prime ministers back. The u. K. Foreign Boris Johnson will fly to washington today in an attempt to persuade the u. S. Not to abandon the iran nuclear deal. He is battling to save his own john up in london. It his his first trip since donald trump announced he would certify irans compliance with the nuclear deal. He haglobal news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Very much for that. Donald trump has touchdown in beijing on the third leg of his asian tour. The highstakes visit will see the u. S. President look for wins on every thing from the trade deficit to rating and north korea. Lets get the latest from beijing. For that we go to Tom Mackenzie live on the site. Is each side hoping to achieve here . Front and center for the americans is that trade deficit that they have with china. We saw the latest numbers, the first 10 months came in a surplus for china versus the u. S. 223 billion u. S. Dollars, this has been a major gripe for President Trump over the last few months. He says the trade relationship is unfair and unbalanced so he wants to address that to see if there are measures china can put in place to shift that had different direction. Then you have north korea which looms large. We have heard from the state department that it is likely the u. S. Will put pressure on china to implement section sanctions that are on the ground to ensure the stranglehold on north Korea Remains in place or tightens. The chinese want to see they are also concerned about some of these investigations there going on in washington when it comes to intellectual property violations. And also aluminum and steel exports. There is the personal relationship between them and the chinese will be rolling out the red carpet and trump will be visiting the forbidden city behind me. A personal tour is what he will be getting with president xi and his wife before they set a sit down for dinner. The u. S. Defense sector got excited when the south koreans started talking about buying significant quantities of goods. What likely deals are we going to see . E have heard some details about some of those deals. They may be announced in the next 12 hours possibly. Ge is likely to be setting up a fund focused on Energy Financing around president Xis Initiative sachs is interested. Chemicalroleum and corporation doing some deals including financing projects in texas. Where also expecting aviation, autos, and energy and agriculture. Some deals around those sectors. China may also move or take some moves to reduce some of the trade barriers potentially around autos and Financial Services. They want to ensure that trump comes away with something. Will likelyea they make some friendly sounds but we are not expecting big moves. Tom mackenzie joining us from beijing as the meetings start between president xi and President Trump. Lets go to hong kong and mark cudmore. From a interesting is market perspective, the north korea story is that emerging as a major threat right now. That puts the focus firmly back on washington on what seems to be the most market moving event that continues to be tax. It is amazing the way north korea has moved off the radar especially with trump and asia. It has not that much. We cannot at we can expect a headliner to about north korea. Unless there is actually a military escalation, nothing else matters until then. That is a hard thing to prepare for because of military event is serious. It is a hard one to hedge. People have moved on or ignored it. So scary or they will forget about it. Taxes the bigger issue. It does look like there is a lot of hurdles to go. The expectation is starting to wane. Optimism was accessible but it is starting to come out a little bit. Matt optimism on the mliv team for asian stocks, i have noticed , has turned around a little bit with the exception of west goodmans activision wes goodmans optimism. Mark there were a couple of posts from the team, there is a couple of Warning Signals on this rally. There is a little bit of a euphoria bubble kind of thing. Everyone is getting excited. There are too many sudden bullish calls create a looks ripe for a little bit of correction. I do not think a major correction and i am bullish in terms of that. The three pillars for equities are growth, earnings, and liquidity and all three are giving positive signs. It does mean the structural story remains very strong until one of those pillars gets knocked out and none of them look like getting knocked out anytime soon. Debate around the shape of the curve continues. Thequestion as to why 10year is not moving in a way to the that you would expect it to give and the data that are emerging. Curve continue to flatten, what are the applications . Wek i am in the camp that are in a multiyear planning process which happens toward the end of every kind of cycle at it has a long way to go but overall in a most most economic cycles and with the curve going flat or inverting. 10 year yields have a way to go. We saw it last week, below the they are a bit lower. It is not too relevant which where they go. The call is some people think we are at the start of a bond bear market. 10 year yields are in a range, that can be quite wide or 2 to 2. 6 , 2. 8 , i do not think bull marketd is over we need to go to a longterm bear market. Yields will stay in this range. There are inflationary pressures that will keep them lower. Matt thanks ray much, mark cudmore, our bloomberg mliv strategist. You can follow insights on the blog. It is a great way to get prepared for your day. The tax issue is one that they talk about their. Talking tax with u. S. Treasury secretary Steve Mnuchin at 4 30 p. M. London time. That is an interview you do not want to miss. Steve mnuchin, u. S. Treasury secretary on Bloomberg Live at 4 30 p. M. London time. Next, could american Corporate Tax cuts be delayed restaurant we will continue on this issue and bring you the latest on u. S. Politics. This is bloomberg. Matt welcome back to Bloomberg Markets, the european open. I am at miller in berlin. Lets get the Bloomberg Business flash with for two nights to go until the open of stocks. With that we go to juliette saly. Juliette Snapchat Parent Company plunged in trade. The tech firm says it will redesign its photo and video sharing app to make it easier to use in an attempt to broaden its audience. Sales estimates have been declining since its ipo in march thanks to increasing competition from facebook and instagram. Credit agricoles slump in thirdquarter trading revenue has rivaled that of societe generale. Ales fell that there is a bond trading decline of similar magnitude at socgen. Nissan has cut it annual profit forecast by 6 after announcing a recall of vehicles in japan t went to an expection inspection process. Production was halted for local sales on october 19. According to the countrys cars dealers association, deliveries were down by 50 last month. All six factories which produce 1000 vehicles a day for the japanese market restarted output and shipments today. Theman sachs is shaking up leadership of its currencies business. To andrm named jim esposi another officer. Esposito relinquishes his role iard withohn will responsibility. The paytv company told the competition and Market Authority that he would review sky news if the merger handed hindered other properties. Includes anview evaluation of the koke familys influence. Guy lets talk u. S. Politics. T is pretty much dominating according to the Washington PostSenate Republican leaders are considering delaying tax cuts for up to year. If the house taxwriting committee hammers out details of the reform plan. There are two games of for it and we have to figure out which to watch. The house is exciting, there is a lot of action on the field that it is the pregame warmup that is interesting in the senate. That is exactly right. We do not have a senate billion. Whenever the house passes will be for them politically useful for their republican majority who will be useful but the substance of what gets passed in the senate is more likely that not to reflect the contours of the final legislation. Matt trumps lobbying democrats, what is he hoping to gain from the other side of the aisle . Jim that is a great question. There are public and majority is making, has made no bones about the fact that they do not care what the democrats think. My suspicion is that they are trying to pick up possibly one mnuchin or west virginia, they are going after him. To give themselves a little cover. In case mccain or corker, one of the republicans goes against them. Guy lets talk about what happened in the races we watched complete. Virginia. W jersey and the democrats came through, they did not make a mess of it. They delivered. Jim no they did not. Is sitting in in terms of the midterms for republicans, this is further confirmation. Obamacare is still record signups. The data supports that. The tax thing is foundering. Likell end up looking [indiscernible] is why the stakes are high with health reform. They have missioncritical, Obamacare Repeal absolutely was a swing and miss for their base. But for everybody in the party, it is hitting tax reform passed. The agree on that goal. The question is, can they get there and if they cannot, if at all the crosscurrents in terms of writing a tax bill, it is going to be very tricky for them to maintain momentum, excitement at the base and Financial Support from the people who write their checks. Guy interesting. It will be an interesting 18 months. Thank you for joining us. We are minutes away from the start of stock trading. We will look at the movers. Sky is a stock to watch. Downlation about shutting sky news if it is a threat to deals on the toy for its 21st century fox transaction. The market open is eight minutes away. This is bloomberg. Equities and a lot of stocks to watch out for. Sky, it looks like there is a threat out there if you want to call it a threat that sky news can get shut down if it becomes a regulatory obstacle. Is beingomething that dangled at the moment. This is on the fox buyout story. Fairly solid. Ok profit beating operating expenses, risk costs falling as well. Matt a threat because politicians would want in a ocracy of realism plurality of news sources there, it depends on how you feel about the content. Let me talk about these shares seen gaining. Earnings before interest and taxes as well is a planned by back could lift the shares according to Goldman Sachs. Jm Goldman Sachs and a note. Credit agricole is going to see pressure on its shares because that company had a massive trading slump, one of the biggest of the french banks. This quarter of a drop of 20 in sales from trading because of its focus on bonds. Watch Credit Agricole on the here. De, watch futures are mixed but slightly down. This is bloomberg. Guy welcome. A minute to go until the start of castrating. Gilts are about to open as well the start of cash trading. Gilts are about to open as well. Andpick up the pennies today is going to be an upside they from the getgo, but there is some noise around these markets. Here is what is happening in asia and washington. It will be interesting to see with how we trade. Keep an eye on richemont. What have you got . I am looking at matt i am looking at the crude oil spread right now. The chart is g btv 5238. I have been paying close attention. It depends on whether you look at wti or crude. Maybe crude has a little bit longer to run here, guy. Guy xi jinping hosting him in beijing. The concern up until this point is that we are going to see north korea becoming a significant and standout problem, and there is going to be escalation. As a result of which, the markets would be nervous about that. That has yet to emerge. Trump seems to be focused with the trade story right now. It is going to be interesting to see how the rest of this meeting transpires and ultimately what we learn. European open. We are up by. 1 . Small gains in europe. These and gains over the last few weeks. We are seeing the real standout story. Is an interesting start. The story out in beijing. Let us go to manus cranny and find out what else is happening in these markets. Manus guy johnson, the warning signs are coming from a whole variety. There is the polls and the birds. They haver sold all of their listed equities based on positive performances. The opening sweeps down 1 8 of 1 on the financials. Oil just is that little bit lower despite the curve that matt has just been showing you. Warning of a credit market they are saying this is the head of norways biggest bank. Credit spreads at their lowest level since the financial crisis, and the credit market, well, looks more interesting. Some individual names, abn amro down. Beat,lk about the sales thirdquarter sales rose excluding currencies. The ambitious goal is they will meet their targets, through keep theye so keep an eye on luxury goods. You saw closing down. 1 . The market had anticipated a drop by 2 . That is a lot better. The cfo is leaving. The chairman beginning to put his footprint across the company. And a dish in all 2 billion buyback. At the bottom an additional 2 billion buyback. They finished a 1 billion share buyback. Building through 3 . May be one parent regarded as misfortune. To lose both that is what is setting up in the u. K. Government. This is theresa may and her government. A state of crisis, as we say in ireland she may be forced to it looks more and more fractious. Like ation looks more tail risk and more like something that is moving into a possibility here in the u. K. As we go into 2018. That is what my sources are telling me. Sterling is volatile again. Gilts are bid. I am off to radio. Matt i will take it from there. Guy matt, pick it up. Matt i am back from a menace, so it is good to see you as well. Donald trump, the u. S. President , is in beijing, meeting president xi on his five nation tour of asia. We can see live pictures of the entourage, the two entourages walking. The past agenda, the u. S. President will be keen to discuss americas huge trade deficit with china. It was a Massive Campaign issue for him. The full year gap between tennessee sales to the u. S. And its imports will probably hit 250 billion dollars. Joining us now is our guest. Jerry, this was a huge issue for trump during the campaign, but he seems to have gotten a lot closer to the chinese than the fiery rhetoric we heard in 2016. Anythingpect to see out of this meeting that is going to concern you as an investor . All year, things have been simmering away, but nothing particularly eventful has happened. Trump has always been a little bit compromised because he is talking about trade on the one hand and military needs and security on the other. Tradets to resolve this deficit even though we should still be talking about whether it is appropriate to be talking about a lateral trade deficits or multinational. It up the same time, he is very concerned about north korea and the path to trying to resolve the north Korean Nuclear situation is by china. Whether that i