President trump is expected to sign the bill into law. Jay powell saw elevated threats including Global Growth and trade. Sophie macro uncertainty over trade in hong kong certainly looming large, given what we stocks. N so far in ozzie shares opening to the. 1 after being tracked lower wednesday. Aussie bonds are climbing for a Third Session tracking the rally we saw in treasuries overnight, to flatten. Ontinued the move to the downside while treasury futures a fourthing a bid for straight session. All itsstronger against peers. Checking in on what is going on im actually looking at the terminal right here because i wanted to show you it is testing the 100day moving average, some that level. We are hearing google is changing its political add policy, limiting audience targeting. We know twitter has been political ads on its platform. We know facebook has not, but we google will no longer allow political advertisers to target voters because of political affiliation. The company said it was updating its overall add policy to restrict claims about the process. Di it is really honing in on the idea of fake news and restricting fake news. Really interesting considering facebook is really doubling down on its position going into the 2020 election. We have heard similar changes from twitter as well. We hear google no longer allows political advertisers to target users based on political affiliation. In the meantime, lets get her first word news with ritika gupta. tromso fire is expected to sign legislation from Congress Supporting led supporting protesters in hong kong. Were told to build may go to the president as soonest thursday. That could escalate tension and confrontation with china that threatens the longawaited trade deal. The latest fed minutes show policymakers saw elevated risk to the economy even as they agreed to keep Interest Rates on hold after a third cut this year. The threat ofy weakening Global Growth and trade with the concern a general slowdown would weigh on the domestic economy. The fed signaled rates will remain on hold until there is any Material Change in the outlook. Of the opec plus oil cartel are drifting apart on pricing and oil strategy. Saudi arabia and russia have led the campaign to boost prices which are increasingly taking different approaches ahead of next months meeting. General motors has unleashed a racketeering lawsuit on fiat andsler, alleging a bribery corruption scheme cost gm billions of dollars and tainted labor contracts as far back as 2009. Shares in both carmakers slumped in u. S. Trade. 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 ritika gupta. This is bloomberg. Thank you. Lets get back to our top story President Trump is expected to sign a bill supporting protesters in hong kong. Congress voted overwhelmingly in support of it. The move is expected to lead to confrontation with china. Crucial timing. Are we expecting President Trump to sign it, and how would that affect trade deal . It is going to hit his desk tomorrow in washington. China has already raised warnings that they consider this an intrusion on their internal affairs and against international law. This is as the administration and chinese negotiators are trying to close a first phase of a trade agreement. They have been making some progress, but they are still stuck, and is looking increasingly like it could push past the end of the year, but they are trying to make some breakthroughs on issues. Of china trade experts we have talked with have said that in the end, it may not be an impediment by itself to reaching a trade deal, but this will add some friction into the relationship. The bill itself actually gives the administration some flexibility of what it would do. It requires the state department to certify that china is not interfering with hong kongs autonomy and is not suppressing democracy, so that does give the administration the ability to modulate the actual impact of the legislation, so in the end, it may not be as big an impediment to any sort of trade deal, despite the rhetoric. Haidi are we seeing a more aggressive or is the white house gearing up for a more aggressive front . They have been pretty aggressive already and this will actual to some phase of articles of impeachment being drawn out. They have claimed that todays testimony from gordon sondland, the European Union ambassador for the u. S. , was vindication for trump, but at the same time, democrats are saying that improved their case. Ndlandue, sans been did testify that was a quid pro quo to pressure ukraine to open political investigations of joe biden. The u. S. Was holding up a meeting for the ukrainian president at the white house in order to achieve that. He said that it was done at the direction of Rudy Giuliani who was working at the behest of trump, but he did also testify that he did not hear anything directly from trump suggesting that there was a quid pro quo, that in fact, trump had told him at one point as this story of his phone call with the ukrainian president was about to break, that he did not want a quid pro quo. Republicans in the white house have seized on that as being vindication for the president , but there are still a number of hearings yet to go and more witnesses as the democrats try to build a case. So far, republicans have not broken ranks with the president and are keeping up a pretty solid wall of support for him in congress. Haidi appreciate your time. Still ahead, delegates from around the globe have come to beijings new economy for them. We are kicking off our coverage in the second year. Shery later in the hour, we flashpoints. Ical this is bloomberg. Shery im shery ahn from the new Economy Forum in beijing. Haidi we get back to Market Action in the u. S. Fresh concerns about trade deals adding to risk of sets. President trump said to be signing a bill supporting hong kong protesters into law. Even though we are pretty close to alltime highs at the moment, theres a lot for investors to be concerned about right now. Absolutely. Its actually the worst month we have seen so far with stocks close to record highs. The pullback was relatively minor, but the real story was bonds. Lets go to the market snapshot if you can. The market for the most part has been trading off the trade news. Moving towards an interim deal, this was a reality check. Said thestrategists biggest move for bonds, down six of the last 10 sessions. Go into the bloomberg if we can because the panics index has been on the rise. Note this blue is the s p 500. This is the panic index rising while the vix has been lowered. Weree some of the moves extreme. Lowes hitting a record high, reversing weakness from coles ls ande depot koh home depot. General motors suing Fiat Chrysler in a blockbuster racketeering suit. Lets take a look also at some of the big after the bell dealnews. Lvmh said to be in talks with. Iffany paypal and a deal to acquire Honey Science and quickly to oil which broke its losing streak on u. S. Inventories, actually rising less than expected overall and falling, the biggest decline in months, helping push oil futures up about 3 , snapping their losing streak. Back to you. Theres no shortage of projections of the forecast with the Global Economy and trade war here at the new Economy Forum in beijing. The founder and president of the center for china globalization, also top advisor to the government in beijing, thank you for being with us this morning. How is beijing going to take this bill signed into law by President Trump . Reallyink this was unexpected. We were thinking the senate would hold it for a while, but if he signs the law, that would greatly impact relations. You advised the cabinet in china. Have you heard of any potential retaliatory measures that could come . Mediacould see from the and chinas reactions in general that they take this very seriously. Almost every organization has issued statements. Shery we have not really seen strong action coming from beijing despite all the trade measures taken by the u. S. The bill has not been signed yet, so we will see what will happen. Think it dampened the public hope of reaching a deal and made people very unhappy. Is it possible for policymakers to be pragmatic, still forge ahead for a winwin solution on trade, or is it too . Ensitive i think its really great if we can make this a deal. President trump needs a deal to go into the election. Course, we china, of want good relations with the u. S. As well. Such a bill having passed that raises the , i really think this is good. I see hong kong is already in chaos. Haidi you have investor signals and retail sales, but the biggest problem with hong kong as there does not seem to be a natural way to end this the standoff has gone for about 25 weeks now. When can they step in . It does not seem like carrie lam is entering anything new in the. Onversation the violence is still going on. I think we have to stop the violence first. I think the most important thing is restore order. In the meantime, what does it mean for the chinese economy . We continue to see trade tensions, hong kong tensions. Where is china headed . They had to cut lending rates again and again because they are not doing as well as people might think. It is not as bad as people thought. Almost 19the last , still adding gdp to australia. I think it is relatively ok really anyre is not big impact. The efficiency of the system. You have the longest highspeed railways, you know . Beijing can keep rolling at a moderately high level. What about the deeper structural reform issues . It just keeps getting pushed down the track. As the window closing for them to be able to make some of these painful reforms . I dont think so. Bylementation regulations so january 1, that new law will come up and then they will address a lot of other structure issues. Taking aally already lot of measures to address structural issues. One of chinas strategy is was growing by making acquisitions abroad. How do these businesses grow now . I have International Organizations they have International Organizations and infrastructure taking off in many countries. Ou can see the criticism is china is exporting its debt to other nations. Not really. Its very few. Most have been repaid, and a lot realem forgiven, but the debt problem is minor. The good news never travels. We always hear bad news about that. How does the belt and Road Initiative play into the broader strategy of china, and how does oft play to the dynamic china 2025 given that we are seeing this trade war spread into a tech war . War, silent war. Need a Major Economic war. But are we already there . Think phase one, we stop the downward spiral and keep uplifting the confidence. Of course, the stock market has fluctuated the last couple of years because of this trade i think but itt would be a new initiative on a Global Development plan. And westernu. S. Countries are participating. If we get phase one is still up for contention, but this is more difficult than even coming to an agreement on tech. The sort of greatest competitive strategic competition. Is there an answer to that . And china really coexist productively together . Absolutely. I think they have to. The World Bank Just released a report. 70 , 80 of the product was totally produced in one country. Nowadays, 70 or 80 of the product is produced by many countries together and then exported to another country. We are stuck in this trade war. U. S. Companies will be greatly affected and then make be out of business in a few years time, so President Trump may not have the money to stimulate the u. S. Economy. ,f they continue like that there will be no more money to send back. Thank you very much for joining us in conversation here in beijing. And a reminder, the new Economy Forum is being organized by the blumberg media group is a division of bloomberg lp. Shery we have some big names coming up at the new economy i andincluding the ceos of the president of the Asian Infrastructure investment bank. We are live in beijing. This is bloomberg. Shery im shery ahn from the new Economy Forum in beijing. Haidi lets get you a quick check of the latest business flash headlines this hour. A new survey puts citigroup at income. For fixed deutsches, ubs tying for third. The fixed income rate include Services Related to credit in developed government bonds. Telco increasing topries in a bid to attract talent. It says annual pay for scientists and engineers at up to 1 million more than the ceo takes home and that he is regrouping to focus more on Cloud Computing services and less on mobilephone operations. Haidi alibaba has raised more than 11 billion u. S. Dollars in its longawaited sale, shrugging off worries. The offering was covered multiple times and more shares were allocated to individual investors due to strong demand. Alibaba will begin trading in hong kong next week. Coming up next, fed officials stressed threats to the economy remain elevated when they agreed rates. E this is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. 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The impeachment hearings have been told President Trumps personal lawyer demanded a quid delayingith ukraine by a meeting at the white house until they announced an investigation into joe biden. U. K. Prime minister Boris Johnson is being accused of making election promises on the run after a chaotic day of repeatedly where he got tax cut policy details wrong. Several hours later, the conservative Party Headquarters clarify johnsons comments and corrected his figures. Google says it will no longer targetelection ads to voters based on political affiliation. They will only be able to use age, gender, and location by postal code. Google is also updating its ad policy to prohibit misleading and demonstrably false claims. Platforms have faced criticism for running messages with misinformation and twitter has banned political ads and response. Boeing is facing more pressure to decide on the future of the the Southern California factory that has produced fuselages for every 747 so far is closing down and being sold for parts. Triumph group operations, the largest supplier to the program. His decision to wind down work iser years of losses expected to force boeing to consider scrapping its most iconic plane. Carol ghosn says japan has what she calls a hostage Justice System that considers suspects guilty until proven innocent. Lasts ghosn was detained september, and his wife fears his trial may be postponed until next years olympics. Weit destroyed our lives and are scarred forever, and over what. If you think about it, who has won in this . Nissan, you saw how badly they are doing. Reputation is ruined. I dont know what foreign businessmen with think twice about working in japan after what happened to my husband. News. global 24 hours a day powered by more than 2700 journalists and 120 countries. The aussiee how dollar is faring, just hovering while bonds are climbing, pushing the 10year yield closer to 1 . See bshares falling for a second session. For financial watchdog made the yen onng course for a second weekly gain while the offshore yuan is testing a key support level, just trading above 704 this morning after the s p clocked the worst day of the month, sliding while treasury futures remain big. Whatck reminder now of else is on the ecoagenda, we are still waiting on south korean exports for the first 20 days of the month. Shipments have fallen on a yearly basis for south korea every month so far this year and trade figures later will also offer a pulse check on the impact of the ongoing trade war. Experts are forecast to drop 3. 7 year on year. Indonesia largely expected to hold the key rate at 5 today after four straight cuts this year. Bank indonesia at its october meeting with a fed stance leaving less room for the fed to maneuver. It is already 25 basis points ahead of the fed in terms of easing this year. Shery the Federal Reserve agreed to keep its key rate on hold for the for seeable future, but minutes from its october meeting show officials on guard for signs is three cuts have not been enough. Kathleen hays has been pouring over the documents. What is their disagreement . Was there any surprise coming out of the minutes . Kathleen what is important about the minutes is we listened to jay powells press conference, and he came out in the meeting and after making their third rate cut in a row made it pretty clear the economy is in a good place. We are going to wait and see what happens, basically. He never used the word pause, but that is exactly what everyone concluded. In the m