President street tweets with one of his own. He says you dont believe in Climate Change so you are excused from the conversation. Saudi arabia has offered a number of senates to open success. They cut taxes on the oil giant for a third time and may boost dividends again and will award investors for holding onto shares longer. Shares will be lifted. Sales were hit by lower oil prices. Global news 24 hours a day on air and at tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. It is 1 00 p. M. In new york and 6 00. I am vonnie quinn. Welcome to bloomberg markets. Here are the stories were following. Potential listed by u. S. China trade deals. Exactly 365 days until the u. S. President ial election. We will explore how the economy will influence the polls. The best business in the country. The topranked school. Highlights of our interview. Straight to the record. Joining us is our money and treasury reporter alec harris. Because bond market movements. To atre getting closer least part of a trade deal. To at least part of a trade deal. It does make sense you are seeing in the short run record levels and equities. Talk about the treasury movement. Bit of a range. Still a lot of fluctuation. That theoned before curve is steepening. What has happened in the wake of this optimism with china and the u. S. And potential trade agreements, is you are getting a repricing of this trait expectation. Untilicing a rate cut next year power when the september meeting perhaps. There are nearterm pressures that will keep bonds elevated. One is the corporate issuance. Between 25 billion and 30 billion for the week. Treasuries coming with its own supply beginning tomorrow with a threeyear. That follows with a 10 year as well. A lot of factors could put some pressure. Why so much corporate issuance now . The fed is old. Spreads still remain pretty tight. Any other corporate purposes you might need, this is a good time to do that. Money it has been for a long time. The 210 spread is like 20 basis points. From when itrent was below the recession signal . Still relatively flat. You have to be wary about it. Want to see they the yield curve steepen. That is the name of the game, what can we do and what do we need to see . It helps everybody. That is what their objective ultimately has been. Money how much does the amount of issuance you talked about impact end of the week yields . It will depend on where most of that debt is being issued. If youre looking longerterm and trying to lock in lower rates over 10 or 20 or 30 years, you could probably see steepening. About a year to go now is an in the market enjoyed a really healthy rally from. Ovember 2016 to november 2017 the returns have been the same. Lets take a look at the economics as well as the job market. Had extent, he has professional management and national resources. The biggest outperformance has been in the Agriculture Sector sure sector. The only sectors with modest declines our services and sales sectors, basically down the better part of 1 since elected. We know it is not the only thing hanging over the president s head we go to 2020. Look at the predict that the president gets. Mpeached the odds stand at 70 . The blue line is the odds of the president completes his first term. Those has gone lower. Mean. S that. Uch lower, always around 38 this is bloomberg. Vonnie federal officials have been investigated Accounting Practices for more than two years now. As he islation comes stepping down as ceo. The revenue outlook for the year has been cut. Have been consolidating. Over the way it sold mortgagebacked securities. That is your latest Bloomberg Business flash. Joins for our Bloomberg Businessweek special. Slowdown in Chinese Consumer demand. This is bloomberg. Vonnie this is bloomberg markets. Time for todays quick take. One of the most contentious funds in the u. S. China trade trade war, forced technology transfers. It will now take on more serious implications. Pharmaceuticals and cars. Companies say their technology can be taken by regulators. Untsman for review he found chinese competitors with that same kind of technology. In new law will ban regulators for forcing technology translators. And part from trade secrets. That is todays quick take. Bloomberg businessweek released its best is in School Ranked in the u. S. The ranking is based on surveys of more than 26,000 nba students, alumni, and recruiters about golden experiences as well as compensation and job replacement data. Carlos on the plover on the program. A slowdown on Chinese Consumer demand. Have a listen. I started researching and back then, businessweek had a ranking of Business Schools and this was number one. That was our bible, the ranking. I looked at it and said hey, i will apply for this. I did that through the 80s in the 90s. My parents did not have the kind of money to send people to school. The change my life. There was a businessman in brazil who had an investment guys in the the top world of business today. I knew he had a bank that could give loans to rank employees. Not one of them. I worked for shale oil. I need he decided to pay for not out of bank pockets but out of his own pockets. It was interesting because ces three things off of me when he went. When, keeping in touch youre done with stanford. Talk to me first, to to help somebody as im helping in the future as you can. So that was it. Now talk about the education at stanford and what that experience was like and what you got out of it. For me, a transformed the way i view the world. Very open to the world even in those days. Learnedlace where i talent. Per surrounded by the best to. Ut best people in the world i had to up my game. I used to be the top students and top of my at brazil. At stanford, i was not top of my. My class. I had to work harder. Ho then what one very talented guy or person is worth 10 very good people. When you look at Silicon ValleySilicon Valley, it is an myriad of each other. Said things are moving, they embrace it. There is an opportunity here. They trafficked people of the same kind of mindset. They think the valley is a true reflection of stanford and retro things from the valley as well. One of the first things we did when i left stanford years later office of hours. We have these around the world. , toe tested and validated evolve the way we interact with consumers. Lets talk about your consumer little bit. An interesting time, to say the least. Lets go straight to china. It is a huge business. And yet there are concerns about the Chinese Consumer right now. Investors were little spooked by it. Many years ago, decided to focus on the superpremium of china. Such a huge market. When you go segment by segment, if you go in the markets. In terms of your latest earnings report, you talked about consumer demand in china. Demandlk about increased in china. What is going on in china right now . What is still growing 6 . That happens from time to time. This quarter was a quarter in which it came down a little bit. This is something temporary. Investors overreacted in your view . Is that an overreaction . Our company is different in that we have a patrol control group. Of being a luxury longterm. In weve always been that kind of company for 30 years. Sometimes there are pressures. So what . This is when quarter. What are you seeing what are you seeing around the corner. Theyre going more premium. That is true as well. In most categories. They like clean labels. Theyve always been in that camp. Great tasting beer. The other thing is the way connected consumers. They dont like to be corrupted. The idea digital enabling digital conversations. It is something consumers expect more and more from brands. That was carlos, ceo. Lets go, standing by with a look at the best Business Schools. What else are you learning. Were having an awesome day. We caught up with him last week heading out our trip it out here. It is unbelievable. He will take in that spot at the beginning of the new year. We talked to him about why he took the job. Here we are in Silicon Valley. A Big Conversation right now. Will catch up with joe, a venture capitalist who has been very successful in doing that. Will also be along. We are in the thick of the basketball season. A bit of a different scene. Is getting off to a really tough start. Steph curry up after three months. They also have a new arena. I want to get into Revenue Generation as a result. That issue of tech as well. The First Republic vicechairman will be with us. Is tootook it off and it high network net worth individuals. We are looking forward to the conversation. The second year here, we started companies. You walk around here and getting out and making more money. You in the studio. You will all be very motivated and a lot more knowledgeable. Cannot wait to see and hear that. Both. You right now we are just off the highs and holding onto gains. We can see up about. 4 in the s p 500. This is bloomberg. Mark im Mark Crumpton with bloombergs first word news. House committees have released the first two transcripts from closeddoor depositions and impeachment hearings. Interviews with Michael Mckinley and the former u. S. Ambassador to the ukraine were made available to the public earlier today. House Intelligence Committee chairman adam schiff said transcript of interviews from the special envoy, an ambassador to the unit. To the European Union will be released. To block a subpoena for tax records. That was issued by a manhattan tax attorney. It brings the case to a step closer to a showdown at the u. S. Up in court. Has fired the ceo for having a consensual relationship with an employee that violated Company Policy. He will be replaced by the mcdonalds head of u. S. Operations. The European Commission today urged iran to reverse the steps it has taken to break further away from its nuclear deal. It came as iran announced it has a prototype that works 50 times faster than those allowed under the landmark 2015 deal. European Union Remains respecting ofhe international agreements, it is our security. Mark irans announcement today came as iranians marked the 40th anniversary of the 1979 u. S. Embassy takeover and the start crisis. 40 day hostage 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 Mark Crumpton. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, im shery ahn. We are now joined by our audiences. Amanda joined me from toronto. China is reviewing locations in the u. S. Where president xi jinping would be willing to meet with President Trump to sign the first phase of a trade deal between the worlds two economies. O largest economies. Saudi aramco gets ready to launch the ipo. Plus, mcdonalds seeing some highlevel turnover. The fast food giant firing its ceo and announcing the departure of a chief officer. For now, lets get a quick check of the markets. We are seeing u. S. Stocks again at record highs with the s p 500 gaining 0. 5 . The dow adding. The first alltime highs we have seen since july. A lot of trade optimism. What will happen to the u. S. China trade deal . Not to mention some solid ecodata coming out last week from the u. S. We have energy and industrials leading on the s p 500. Oil gaining ground for a second ticket session. Oil at the highest level in six weeks. Trade optimism also fueling optimism about the outlook for oil. The nasdaq up 0. 6 . What is really interesting is the rally we are seeing in the s p 500 the past four weeks. Take a look at this chart. It has been let higher by the value stocks. That is the line and yellow, which has gained more than 5 . We are talking 5. 8 in the past four weeks. That is of course higher than the s p 500 gained in white and the Growth Stocks underperforming. Both value stocks and also the broader s p 500, amanda. Amanda really interesting. One thing we have seen are those big ipos coming to market and then disappointing. Case in point would be over. Be l report that would case in point would be uber. It will report after the close today. The main executions for the quarter are it will have a narrowing loss. Lockup of of the options on the stock on november 6. Is that now being priced in . Billion more than 3. 5 expected. Weighing on the stock. China says it is reviewing u. S. Locations where president xi jinping would meet with President Trump to sign the first phase of a trade deal. The u. S. Commerce secretary wilbur ross signaled the two sides are on track to reach an agreement. For more on that, we have Sarah Mcgregor with us from los angeles. She leaves our team for u. S. Economic policy. Lots of signaling going on here. Prompting a lot of enthusiasm. Lets talk about exactly what we are talking about here, because there are two stages, right . More bad news not happening at a rollback of the existing situation we are in. Is there optimism we are going back to square one, no trade tariffs . I think some of the optimism right now is warranted in the market. Both sides making progress to phase one of the deal. This is much better than the situation we had a few weeks ago where people were questioning whether the talks were going to continue, whether they were going to completely collapse. What we got in may, both sides making progress. They sit at the time they were 90 of the way to a deal and the whole thing broke down. I think it is a matter of we will believe it when we see it in terms of signing a trade deal. But of course, the latest wrinkle is where this will be signed. The summit in chile seems to be something they can agree upon, neutral territory. Both leaders were going to be there anyway. Now that that has fallen apart and the summit will no longer happen there, it is a new wrinkle for them to decide where this. Ned both sides want to seem like they are making a big win. For china to come to the u. S. To sign it, they will have to position that pretty well. Shery sources telling Bloomberg China is reviewing those locations in the u. S. Where president xi and President Trump could potentially meet. In the meantime, any more clarity on what will happen to the december tariffs . Sarah as far as we know right now, the u. S. Has hinted that it could be possible to also postpone or put aside the december 15 tariffs that will hit a lot of consumer goods. But they have not promised anything. For china, it is hard to imagine in one scenario chinese president xi jinping coming to the u. S. And signing the deal if the december tariffs are still on the table. Perhaps the condition of him coming here could be for the u. S. To announce the tariffs have been postponed, for instance. It could be a bargaining chip that china would want to use. Now, they areht still on the table and it seems like the u. S. Wants to use them as leverage to get as much as they can out of china as they enter the final lap of signing phase one of the trade deal. Shery thank you so much for joining us from los angeles with the latest on chinau. S. Trade tensions. Of course, that uncertainty over trade is among the issues weighing on central banks, especially the Federal Reserve. Thent optimism on u. S. China negotiations and a solid jobs report last friday is pushing expectations for the next rate cut well into 2020. Here for a Market Outlook is the u. S. Economist at Standard Chartered bank. Good to happy with us. We have seen a little bit of a mixed picture when it comes to the data as well. We have seen a tight labor market but we got the ism manufacturing numbers that did not look good. What do you look at when you gauge the upside risk of a potential trade deal . You know, the fed has said multiple times that manufacturing is not doing well, but they are looking at the consumers. They are looking at the labor market. The two are very tightly ranked. The consumer does typically well when employment strong. We saw with the job data looks like last week. For the fed, it is about the data and also about trade. Because they are quite concerned about Business Investment outlook and it is tied to global uncertainty and global trade. Amanda is there a point at which we need to start asking about whether the fed will become concerned about Wage Inflation . Obviously, there has been a little bit of it. We have not seen the kind of central bank generated inflation you would expect at this stage. But do you begin to say at some point you will see that . Early 2018, markets were very concerned about inflation and Wage Inflation specifically. The fed started talking about it. Powell really told us in his last press conference that we need to see some serious inflation before they consider hiking again. Growth to transfer it could be on hold definitely. Most dovishwas the part of the fomc event. We did not get news on the balance sheet. How how they performed on the repo market . Sonia the repo market is a thorn for them. They are trying to find ways to ease it over market operations. They are trying to expand reserves again. This also has to do with regulation and with the behavior of the large u. S. Banks. It is difficult for the fed to influence that directly in the way that it would like. I think that the end of the day, we might end up looking at easing regulations even if it is not to the extent they would like it to. Amanda do we need to Start Talking about the effect of impeachment on the markets . A change of leadership potentially, theoretically, what that might do across the whole economy . Biga i think