Not improving yet. Grubhub down 40 . Analyst downgrades continuing to pile up for this service. No silver seen in the forecast. Executives what to do a very disappointing next quarter. Boeing up 0. 3 . We are waiting for someone to testify on the hill. Guy really looking forward to exactly what he has to say later on. Europe, well, in actually, stocks drifting. Line,g away from the 400 down around 0. 4 . A huge order for airbus lifting that stock. Outperforming today. The pound, we are bounding a little earlier on. 12833. 1. 2833. We are likely to get an election before christmas. We will discuss that throughout the program. Lets take a look at where yields are. A little bit of a bid returning bon marketman market you can returning to the german bond market. You can see that. Vonnie the cio of Global Economy markets, debbie, great to have you from pittsburgh today. What is the 10 year yield telling us . We have seen a collapse, a bit of a recovery in the last couple of days. Is it talking to expectations or Something Else . I think it is giving expectations for the slow growth, continued slow growth in the u. S. Economy. No imminent recession. Therefore, no falling off from a yield perspective. Degreeely, a fed to some being bullied into probably a rate cut decision tomorrow most likely. The markets will be disappointed if that did not happen, but i think it is continuing to say that the u. S. Consumer will be on a slow growth trajectory. Manufacturing is hanging in there, not getting much stronger but also not getting weaker. There is still some optimism out there. Vonnie right. We saw today a bit of a disappointment but holding off to a certain degree. Im curious to the other programs as well. You are in charge of global liquidity there. You are responsible for creating one of the programs that helped money market way back in the financial crisis. What is the threshold for further fed intervention in money markets . Deborah i think from a yield perspective, as long as you are in a one handle, liquidy markets dont have any kind of problems and investors continue to use them as an Asset Allocation tool. The markets have grown substantially since the fed has been in that 1 and 2 areas. It is when you get into a zero handle that you start to see problems in the market from a liquidity perspective. As far as some of the fed interventions with regards to repo markets and some of the treasury supply qe in the marketplace, we expect those will continue given the very large amount of treasury supply that is here and will continue to grow through the end of the year and into 2020. Guy the market is priced for a pause in december. If that is what the fomc desk is that what the fomc is going to signal today is that what the fomc is going to signal today . Deborah i think so. As a slow growth environment continues to be slow and not picking up steam as well as not going into any type of expected recession, then for the time being, the statistical information they will be looking at will continue to validate that being on pause for a while in that 1. 5 area is probably the right place to be. Guy breaking news. The lebanese Prime Minister is going to resign. We will come back and deal with that with a little more detail in a moment. Lets carry on the conversation surrounding the fed. Lets talk a little bit about the effectiveness of another rate cut or another two or three rate cuts. Army reaching the point where rick cuts does have an actual meaningful impact on the u. S. Economy . We must be at the point where the cost of money is so cheap that it is no longer an issue. Deborah i think to some degree that is absolutely the case. We are in an easy money environment or easy rate environment, and whether you are 2 ,ero percent 0 , 1 , all of those are low on a broader scale basis. Having said that, i think it is a vote of confidence when the fed enters into the marketplace and intervenes by lowering rates, at least marginally, 25, 50, 75 basis points, as they have done and continue to do. Hopefully that will keep the u. S. Consumer on track. Again, slow growth is expectation. In a very long cycle right now. If we can continue it on in a slow growth passion for the next year or two, that would be a win from the feds perspective. Vonnie you used the word bullying a while ago to talk about markets and how the fed is being impacted in its decisionmaking by markets. Why so strong a word . There are a lot of risks out war, including the tariff which we do not know how it is going to play out yet. Deborah there certainly are lots of risks, but also lots of upside potential. Depending on how some of the external forces play out, whether it is the tariff war, some of the immigration issues, brexit still being kicked down the road, not really resolved yet at this point, there are lots of potential outcomes that can be positive or negative. When we look at the basic strength of the u. S. Economy forces,of those outside from a consumer perspective, and really when you look at earnings that have come through for the Third Quarter so far, they are provideng to be potential for the economy to continue in its growth environment. Vonnie what about inflation, debbie . That is also not getting to the feds goal and has not been permitted the you anticipate that would kick up if we see better than forecasted gdp data this week, payrolls continuing to come in strong . Deborah i think we could potentially see it hovering right around 2 , maybe slightly above, slightly below. Not necessarily making breakouts on either side of the 2 . To some degree, it can also be impacted by what happens from a trade war standpoint. But i dont think it is going to be an earth shattering picture on either side of 2 . It is going to continue to be in the range or slightly above, slightly below where the fed is tolerating it. Factor for the a fed . I would like to point out we are starting the hearing on capitol hill in the Senate Commerce committee. Starting very shortly. That is the chair there. How important is it for the fed that the yield curve is positive again . Deborah it is definitely something they are trying to manage to achieve. If they can do not, right now, they have taken it to being barely five to the extent that one more rate cut as we think will be likely the case tomorrow, if they are able to achieve a slightly positive and steeper yield curve with that cut, i think their goal is exactly that. They dont want to have that as a recessionary indicator in the near term. Vonnie debbie, thank you for joining us this morning, day one of the twoday fomc meeting. Await more from that hearing before the Senate Commerce committee, lets get the first word news. President trump chinas president xi jinping is accordie south China Morning post, a newspaper in hong kong. The two leaders will be in chile to attend the asiapacific Economic Cooperation conference. The u. S. Army officer worked for the National Security council says he raised flags about president trumps calls to ukraines president. He testified today before three house committees leading the impeachment inquiry. He says he was so disturbed by the content of the call, he reported his concerns to the Security Councils lawyer. British Prime MinisterBoris Johnson is getting his way. The u. K. Is now set for its third general election in four years. The Opposition Labour Party will back his call for an early election in december. That is after the Prime Minister promised he would not try to push through his brexit bill until a new parliament has been elected. The wildfires in california have gotten worse. Now, the blackouts will continue. Pg e will cut the lines today to as many as 1. 8 million people. It is the latest in a series of unprecedented power cuts aimed at preventing fires. The biggest of the fires in Northern California wine country has now destroyed almost 100 buildings. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. Im ritika gupta. This is bloomberg. Guy . Guy thank permit a couple things i want to bring you up to speed with. The ceo of boeings about to start testifying. You are listening to chair wicker there. A couple key questions coming out of this. How is legislation going to change . First in terms of the way aircrafts are certified and the way the faa with boeing and other Companies Really push each other, are we going to continue to see delegation happening when it comes to key systems . Both of these things will have a massive impact on the way aircrafts move forward from here. A one Year Anniversary of the sad crash of the lien aircraft, 737 max. I want to take you to beirut. Hariri, the Prime Minister, is stepping down after two weeks of violence through the country, a country accustomed to violence. Called for the resignation of mr. Hariri. That has now happened. You can see some portions of the country celebrating that decision. This is bloomberg. Live from new york, im vonnie quinn. Guy from london, im guy johnson. Check with mysset chandra. Emma seems like we are hitting the pause button. On the u. S. Be per hundred, just about climbing into the green. That was down in the red since the open. This of course after hitting a record high yesterday. In europe, the stoxx 600 by far the biggest loser in terms of european indexes. Down 0. 7 . That is largely to do with bp knocking a few points off the ftse 100, reporting earnings betterthanexpected. The cfo saying they will not raise the dividend this year. Investors dont like that. I number of big cap movers for you today. Pfizer rising 3 , having its best day since january. General motors doing better, rising despite the company cutting its Earnings Guidance due to the cost of that strike that just ended. Over at google and alphabet, things not looking quite so good. Down 2 . Missed some estimates. Results were steady but no fireworks. You can take a look at how tech is hitting the pause button today. A big rally over the last few days and weeks. ,ome big moves for the stock for the s p 500 tech index now falling into the red today. Finally, wanted to mention a bunch of other movers in the food business. Look at beyond meat falling 17 . It had some good earnings, posting its First Quarter of profits, but it is the end of the lockout period following the ipo. Grubhub falling 40 , trading at a 2017 low. The Fourth Quarter outlook for grubhub way below expectations. Analysts saying there are no Silver Linings here. Take a look at kroger falling around 3 . This is largely to do with amazon. It is removing its grocery delivery, making it free for prime members to have groceries delivered. Amazon taking the fight to walmart. Having a bit of a negative effect on kroger. Vonnie thank you. We are waiting testimony and a q a in the capital. President ice before the Senate Commerce committee. That is the Ranking Member there. Lets get to brooke sutherland, who is with us from bloomberg news. Whors blowing covers boeing. I think it is really telling that in the testimony released yesterday by boeing, muilenburg admitted there were mistakes made by boeing. That was the first time he used that kind of language. Boeing is sorry for the crashes and they will always women were the victims but that is the first time we have seen some effort to take accountability for this crisis. The degree to which boeing is willing to take responsibility i think will be a subject of questioning today. Was there a design flaw . Were there errors made in their assumptions on how the system implicated the two accident functions . That will be a key point of cushioning for me other will be of questioning. The other will be on the employees. This was a law that had bipartisan support that was increased in 2018. A lot of blame to go around here. The degree of which boeing put pressure on the faa will be another key question today. Guy is not going to be where things are likely to change . There are two areas. One is that the max was in many ways a new airplane but was certified as a new model. Does that change . If so, what are the implications . There is the issue of delegation. How does not change Going Forward from here . Brooke a couple things. You brought up the 777x. It is interesting the first light has been pushed to 2021. They had issue with the ge jet engines but we do not know the degree to which the faa is taking a little more time in the process of reviewing these airplanes. That will be a big deal, not just for boeing, but for the entire Aviation IndustryGoing Forward. This process starts to take a little more time. You have heard lawmakers say we need to revisit the amount of authority we allow boeing to have in this regulatory review process and perhaps need to put in more safeguards to make sure every box is checked and everything is looked at in a proper way. In terms of where boeing goes next as far as plaintiff element neat is the other plai development, that is the other question. Do they go ahead with that or do they have to put that on hold and think more seriously about a troop 737 true 737 . Vonnie brooke joining us. Things to you. By aore now, we are Research Analyst who recently lowered her price target for 420. Ng by 10 to thanks for joining us. We are awaiting answers to some of these questions. Do you anticipate it will hurt boeing longerterm . That is the question a lot of investors are asking. We have seen a few downgrades on boeing stocks. What we are looking for is the seventh or seven accounts for 40 of the earnings profits for boeing so people are looking to see what the profitability of the Program Looks Like overtime. Keep in mind some of the profitability is because the volumes are so high on the narrowbody production. Vonnie what can muilenburg tell these senators that will be good for boeing . Right now, a lot of things look negative. Sheila what we are seeing from the faa is the focus on safety. I think the industry is trying flying ise that air still safer but boeing has taken three measures. They have removed the ceo and chairman function and separated that. They created a safety board within the board of directors. And their own engineering function as well. They are trying to take measures. Aircraft safety is important. You saw it in muilenburgs statement in that the aircraft has 45 years of flight testing on it. They have invited all their 99 to comment on it. They have taken simulators flights simulator flights. They are trying to convince everyone that flying is safe. These processes take years and sometimes decades. Guy does muilenburg need to go . He is the guy. He is where the buck stops. Mcallister has departed. Do you think but we can put this behind it with muilenburg still in the ceo seat . Sheila i think with aerospace, the focus is so much on safety that it is very different. This is not a cost cleanup story where you hold the ceo accountable. Something is often done where you have the resignation of the head of the commercial Aircraft Division and then you have the separation of the ceo and chairman. But now i think the current ceo is the best one to lead the organization out and safely by the max. I do nothing there should be a change at the moment. Vonnie she is sticking with us, jeffreys Research Analyst. We are looking at testimony. You can follow the testimony on bloomberg as well. Muilenburg in the hot seat on capitol hill along with the chief engineer who will also be testifying, john hamilton. First appearance before congress for the two since the crashes of the 737 max planes. This is bloomberg. Im heartbroken by your losses. I think about you and your loved ones every day. I know our entire boeing team does as well. I know that from london, im guy johnson. Vonnie from new york, im vonnie quinn. Guy lets talk more about what is happening on capitol hill. The ceo of boeing giving his Opening Statement right now. Addressing the families of these two aircraft Crash Victims directly. Q day is going to start very 7a is going to start a is going to q start very shortly. Sheila, the max returns to service in q4 . Sheila i think what most airlines are indicating is they will not do this before january and some going out to march. What the faa has indicated that it will take them 30 days of flight testing to give a final response on the certification process. Given the final solution, it is not clear. It is looking more and more like it will be pushed to the very end of q4 into q1. Guy airbus this morning took an analyst price, 30 billion order, from indigo this morning. How long will it be before boeing is taking similar orders again for the max . Sheila i think it will be quite some time. We expect any major orders. Also given the backlash, five to seven years on the narrowbody. I would not think orders for the max. Is there foruch boeing . It is seen as a massive contributor. Will that help boeings case . Sheila i think it will to a degree. 1. 1 million supply base as well. It goes back to safety and making sure the aircraft gets back in the air and it is safe. That is going through expensive engineering and design tests in the interim. The benefit of the organization i think it will make sure the First Priority is to get the aircraft back in the air. Vonnie up until pretty recently, boeing was beyond reproach. And then the evidence came out of the testimony, that really question boeings case. Notla to be honest, it did do much with the text messages. It was not during the simulator testing. It was not finalized at that point. It could be with anybodys text messages, but the timing indicated this was not the final product that was submitted. So i was not as cautious about the messages. Although the faa came out with a harsh statement that friday a few weeks ago, three days later it essentially accepted the final software package. It was in my view a nonst