Yuan strengthening, below seven for the first time in a couple of months. I thought i would point out, uber down 7 even though analysts were quite happy with the results. Guy european stocks ticking higher on the back of that ism data out of the United States. We are now at 404 on the stock 600. The euro is trading a little softer. Interesting to see how far european equities have come. The South African rand continuing to make gains. Vonnie and shanghai, president xis intake president xi reaffirming that his country would open itself up to trade even further. Pres. Xi in order to boost growth at home and create more chinaor global growth, will give greater importance to import. We will continue to lower tariffs and institutional transaction costs. Vonnie we are joined now by bloombergs selina wang in shanghai. Who was xi addressing with this speech . Heard, xi isu reiterating his commitment to reform and opening the economy. You didnt even hear him directly address the United States or President Donald Trump, but you did hear him say that china is committed to advancing globalization, supporting multilateral institutions, and that no one country should put their unilateral interests above those of the greater good. You also heard xi reiterate strengthening intellectual property laws, as well as leveling the Playing Field power however, despite all of this rhetoric come of import expo doesnt address some of the underlying issues that foreign multinationals have when operating in china, especially when it comes to chinas economic model and state subsidies. There are around 63 countries represented here, including french president Emmanuel Macron , who gave a speech shortly after xi. However, most western nations did not send a very highlevel delegation, if at all. Guy last year in this very speech, he attacked the United States. He barely mentioned the United States this time around. What should we take away from that . Thats right. The European Union was a very big commentator ahead of this event, really playing a big role here this year. I do want to mention that despite the u. S. China trade tensions, u. S. Exhibitors complied the most space at the exhibitions this year, so clearly still interested in reaching a large middle class consumption market in china. We have heard some scathing criticism of this event leading up to this from the European Union as well, saying that last year, hundreds of deals were inked at this worth billions of dollars. However, in a survey they conducted of the attending companies, about half of them said those deals never came to fruition, so there is a real risk here of promised fatigue. We didnt hear any clear, concrete steps of how they are going to reform and open the economy, so as this conference continues over the next few days, these partner companies, around 3000 of them, from astrazeneca lvmh to many other foreign brands, they are all going to be looking for what are those concrete steps. Vonnie our thanks to bloombergs selina wang. For more on trade and the impact on the broader markets, at session highs following todays Economic Data, we are joined by mike holland, holland and Company Chairman and founder, and of course, he started the china fund around 25 years ago. Not involved anymore as of a year ago. What is xis strategy . Is he willing to wait out trumps presidency, or does he want a deal with donald trump . Mike my guess is he is going to be satisfied with what we hear from the markets, a phase i where he will get a lot of a fews dropping and buy soybeans, and have a nice process come about at the end, what my experience is with people like xi is that he wont give up very much at all. I think donald trump would like to have a success looking kind of signing ceremony. On the other hand, i think the next phase after that, probably not so much good stuff for the u. S. Vonnie between china wanting a rollback of some 350 billion dollars of tariffs already in place, and he felt that we havent gotten to the National Security and ip problems, when do you think we will be sorted with china. We will be sorted with china . Would you be an investor there right now . Mike things are slowing over there. Things continue to be ok here economically, so money has been flowing out of china, and for purposes of safety for the chinese people, for their own wealth which they have created, there are threats to that now by the current regime, so money has been going out, but that means prices are down. It is probably a good time to look for Good Companies over there. Watch out for tech, though, because i think tech is going to continue to be a target of the u. S. Administration. We may not get a hold let out of the chinese. Thats the history of these kind of negotiations. But i think the toughness in , inditexeavors will be area, the u. S. Will be, in be tech area, the u. S. Will hard there. Guy if we do get this phase i deal, would you be a seller of risk assets . Is it better to travel than arrive . Mike that is a great question because i think buy on the rumors, sell on the news. There are rumors that are supportive of higher prices because something is going to happen. If nothing happens, we know what the likely outcome there is. I also think when something happens, presuming it does, it will be more show than substance. Therefore, i would guess that in the future, between then and the election for trump, i think you probably would be wise to follow what you just said. Guy do you think the fed, if there is a trade deal, will be on pause for very long . What does the Economic Data tell you about where the u. S. Economy really is . There seems to be a view at the fed that this phase one deal was going to get done, and as a result, the central bank could pause. Do you think that will be the reality of the situation . Mike right now, the answer is yes. That is the best guess because even a few minutes ago, the manufacturing numbers were supportive of that view that things are ok and maybe staying better for a while. More importantly, the u. S. And the european consumers look to be ok. Thats two thirds of the u. S. Economy, so listening to the reports over the last couple of days, listening to what the consumers are doing, i think we are in a position right now where things continue to be ok for the consumer, so the answer is yes, i think they will continue. Are we underestimating china and its ability . . Re we being very naive here china can move very fast when it wants to. Mike totalitarian state, very smart people. Coupletory over the last thousand years would indicate we are underestimating, as we normally do, the chinese savvy in terms of times like this. As trading partners or trading enemies, to some extent, we have a situation where theyre going to extract everything they can. They know our politics very well, so they are playing for time here. Vonnie we are seeing the indices at records. It makes me smile because there are very definite signs of slowdown in certain parts of the country and the Economic Data sphere. Youve been doing this a while. Youve watched markets a while. Does it feel like any other you . D to do you feel like we are in for a drop at some point, or are they held up by the front a mentals . By the fundamentals . Mike we are due for a drop at some point. I dont know when or how much. We are at extreme valuations in the fixed income market. We have a situation where, with , wevee Interest Rates never had negative Interest Rates as part of the equation. Things coming out of washington, people are questioning the maneuvers of our Federal Reserve and the daytoday business of the markets. You talk about china having a tightening problem over the last few days. Weve had some very crazy things happen quietly in markets. Not predicting it, but those are things to watch out for, for sure. , u. S. His time last year treasuries were greater than 2 . Our there they are now less than 2 , yet stocks have rallied year on year. Does that make sense to you . Mike absolutely. ,hen you have no alternative talking about low Interest Rates or, i have trouble even saying the phrase negative Interest Rates, it sums like an oxymoron to me. When you have people chasing for yield, thats why we have a 12 increase in stock prices, to a great extent. Also, we do have a continuing ok , healthy economy in the United States. I think it is a function of people paying a higher price than they did a year ago. That is most of the movement does directly related to the drop in Interest Rates. Guy do you think the consumer is going to hold up . You talked about the fact the consumer is looking good now. Do you think that is going to carry on . The payrolls are coming down. They are still ok. Upre are a few crocs showing a few cracks showing up. Is the consumer going to be Strong Enough to maintain this cycle, and do you think the Manufacturing Sector can dip, stabilize, and come out as the consumer holds Everything Else up . Taylor both of those mike both of those look as if the answer is probably yes. Im always prepared to be surprised to the downside. When you get stocks at their peaks, you have to put a little money aside for a surprise to the downside, so ive been putting a little cash aside myself. At the end of the day, however, both areas, given what we are hearing from the companies and , i dont anticipate a major surprise to the downside in either area in the near term. Im not expecting it. Vonnie one thing you know a lot about is resilience. On a separate sidenote, i wanted to point out that we had the new york marathon, and we have a picture of you finishing the new york marathon for the 22nd time. Run 20 plus new york marathons in your time. Mike i just finished that a few minutes ago. [laughter] vonnie i did want to make a point about this because, a, that is a phenomenal achievement, and congratulations. 22 is and you are not done yet, and not just new york. You made a joke about how it was in your personal best, and might have been your personal worst. But in a sense, there is victory in not achieving those earlier goals you might have once had. Talk a little bit about how that might translate into investing. Mike actually, they are related. That is just part of my life, and the idea of maintaining some discipline through tough times,hen things get kind of rocky most of my contemporaries in marathon running and in the markets are no longer around. One of the things that has helped me to be a survivor, book is a wonderful that says we will have an ugly period sometime in the future. Im kinda prepared for that, just as i was prepared for times in the marathon where i said, i dont have anything to prove. Im out of here. But i didnt. So the answer is persistence, in an intelligent way. If you are about to die in a marathon or about to lose everything in the stock market, you do that. Well grats to me as congrats from me as well, mike. One of my early mentors used to describe you as ike holland, holland as mike holland, and coowner of the holland tunnel, but that was many years ago. Vonnie we have much more to talk about. I want to talk about public and private companies, and these billiondollar valuations. Mike is staying with us, mike holland, but lets check in on the first word news with viviana hurtado. Viviana President Donald Trump is urging voters in kentucky to reelect the republican governor. He says it would send a message to House Democrats conducting an impeachment investigation. Governor races in mississippi and louisiana are also seen as a test of the president s popularity. There are races in virginia for the state legislature. In mexico, nine numbers of a mormon family were killed in an ambush that took place as they traveled between northern states. The attackers were believed to have been members of organized crime, specifically drug cartels. Six of the victims, children. For decades, this family has lived in a fundamentalist Mormon Community in my sicko. President trump site in mexico. President trump saying the u. S. Is ready to help mexico defeat drug cartels. And boeing ceo Dennis Muilenburg turned down his bonus until the troubled 77 max is flying again troubled 737 max is flying again. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana hurtado. This is bloomberg. Guy thank you very much indeed. European stocks higher today, but only a little. Over the last month in dollar terms, the dax up by 10 , outperforming the s p, only up by 4 . Backeans getting its mojo a little bit. This is bloomberg. Vonnie still with us, mike holland, holland co. Chairman and founder. Have to ask you about the wework scandal, Division Fund throwing away billions of dollars in bailouts. Is it times up . Were you inspecting this would happen . How are we supposed to read the times right now . Mike this part of it is familiar from previous things that have happened over the decades. In the private equity market, that was the place where the most extreme, illogical valuations were. Companies growing revenues rapidly, reported here, and we start with uber as one of the prime examples. When these companies with no earnings went public, than people in the marketplace paid those extreme valuations. Taking of others, zoom im thinking of others, zoom. The market finally said, these are crazy. These people may never make any money. It is like negative Interest Rates. This is crazy stuff. So when the crazy stuff began to find the reality grounding, thats what happened. A lot of them have been decimated. I think that is just the start of a very healthy process of saying, this made no sense. We are going to continue to punish people who have no earnings and no prospects of earnings. Guy can i ask you a big picture question . Im sitting here in london. European equities have massively underperformed u. S. Equities for a very long time, yet there are signs that that is starting to turn. Is it time for u. S. Investors may be to look elsewhere . Mike quick answer would be, from my instinct and experience, yes. Coordinate that with looking at parts of the u. S. Market that have been underperforming. Im talking about industrials. A lot of companies that are singledigit multiples. Just crazy, crazy multiples, and they are solid companies. They dont have to be growing at 15 plus a year. They sibley have to be Good Companies that can grow somewhat. You have those in europe. Not all European Companies are growing. But the ones that have some growth, and same in the u. S. , companies that have been long neglected. A wonderful place to be, i was singing of the 1970s and the nifty 50, which is what the private equity valuations, when they came public, were kind of like. So when those things crashed, the right place to have made some money was, in todays market, would have been the forgotten u. S. Market, but also europe. So the answer is yes. Vonnie we have to leave it there, but looking forward to getting you back in again soon to talk about more marathons to come. This is the 22nd marathon runner mike holland with us, holland co. Chairman and founder. This is bloomberg. This is bloomberg. Abigail this is bloomberg markets. Im abigail doolittle. Lets get a look at equity markets. The s p 500 up a little bit. We have a new round of record highs in the u. S. Probably a sense that nothing too bad is ahead by the end of the year. We see the stoxx 600 in europe up just slightly. Waynikkei index up in a big after markets returned after a holiday. When we go into the bloomberg and take a look at some of these indexes, relative to the rsi, this is a momentum indicator. Went above 70. That indicates overbought, but we will not see a slowdown too soon. It is when you see it go back down into the range. It seems as though the technicals are on the side of stocks. From an individual mover perspective, lots of laggards to take a look at. Uber missing bookings and user estimates. Air france investors skeptical about their turnaround plans. Finally, take a look at pandora, down 17. 5 . Morgan stanley calling pandora a black box. Guy thats what they are saying about next year. Thank you very much indeed. Still ahead, Goldman Sachs has a message for investors in Growth Stocks after being stunned by losses in uber and wework. We are going to hear from the banks ceo David Solomon, next. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets check in with the bloomberg first word news. Here with the details, viviana hurtado. Viviana beijing wants the u. S. To roll back tariffs on as much as three under 60 billion of chinese imports to sign an interim trade deal with the u. S. In return, china could remove tariffs on u. S. Goods, mostly farm products. This month, both sides hope to wrap up a deal. President trump asking his chinese counterpart xi jinping to help alleviate the opioid problem as part of. The larger trade talks. Washington as part of the larger trade talks. Opioids are blamed for thousands of deaths in the u. S. Today, more transcripts due out from the house impeachment investigation. We are expecting to get the transcript from the hearing with gordon sondland, the u. S. Ambassador to the eu. House democrats say in the coming days, more will be released. During the u. K. Election campaign, there is one thing Prime MinisterBoris Johnson can count on. That is the support of hedge funds. In a little over a year, johnson raising more than 500,000. Johnson supporters held a secret fundraiser to cap Prominent Fund managers to tap