At 110. 18. Asian markets were volatile or a little mixed mother has to do with the trade war and how markets interpret whether we are closer to the deal. 1. 7u. S. 10 year yield at flat. Coming up we speak to jim oneill, former commercial secretary of the treasury, that kingdom conversation in just a couple of minutes. Lets get to the first word news in new york city. U. K. , the chief rabbi suggest people avoid voting for the labour party due to antisemitism, he says sanctions from the top. He is not calling on people to vote labour party, but he says british are concerned about a labour government, and the labour party says antisemitism has no place in the party or society. The president claims donald covered by president ial immunity, but he has been ordered to testify to the panel as it investigates, carrie lam isong, not offering any new concessions in her first Public Comment after prodemocracy forces won a landslide election. Lam is calling for dialogue in line with the plan she outlined two months ago, but it has already been rejected by protesters. Us is toiority for properly follow up on actions proposed including community dialogue. After these five or six months, hong kong people have realized that hong kong can no longer tolerate this aortic situation. Everybody wants to go back to their normal lives, and this requires the concerted efforts of everyone of us. Firstbaba jumping on its day of trading in the city, a win for the company and the hong kong exchange. About 11 billion, the biggest Stock Offering since 2010. Global news 24 hours a day powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. Matt thank you francine thirdquarter net income getting the highest estimates, coming in a 190 billion rubles. On to our top story, the u. S. And china have agreed to stay in touch to resolve remaining issues to get to a phase one deal after a phone call in which the trade teams discussed core concerns. Now is our chief asia correspondent. Are we close . Least it suggests the sides continue to talk. It is one of these and criminal signals we have been getting over recent weeks. They are moving toward an initial or partial agreement. The positive signal out of beijing comes a few days after the government said they would crack down hard on ip violations. Compensationout for those getting hurt by i ps. In terms of managing expectations, the common refrain from beijing is that they are in the market for a deal, but they are suggesting we do not have much more detail beyond that. Francine do we have any specifics when a deal may be signed . We are into thanksgiving week in the u. S. , and then into december. Middecember is when the next batch of tariff increases are meant to be infinite. If we do not get a breakthrough logicalk, the next deadline will be middecember, and whether the 15 increase on the tariffs will go ahead. There will either be a flurry of activity to get some kind of agreement by yearend. Maybe around ip protection and market access. Or it ends and we go back to where we were, and President Trump and the chinese side walk away from a potential agreement. If that is the case, there will be more talk of tariff increases. There will be more on the talks in the coming days. Francine now joining us for the hour is jim oneill, former commercial secretary of the treasury, United Kingdom. The chinese Officials Say they are keeping in touch on the trade deal. Is that a good thing, at least they are talking. Waiting for godot t hing. Jim will it get so watered down that it is meaningless in terms of markets thinking about where is it really going . I do not quite know. Francine what does this mean for the World Economy . Could we live with this kind of lukewarm phase one deal for the next 10 years . Jim i think from the shortterm cycle, we could. Leaves seem to suggest the World Economy might be stabilizing at a weaker level. Some kind of resolution would almost definitely be helpful, not least because many economies of the world have come from expanding trade. If people can take a breather about further tariffs, that probably would help. Structurally, i am not sure about that. Hasone weird thing trump managed to unify washington on fight with china. I am not sure this is the end of u. S. China issues. Francine even if there is a phase one deal, you think he could go back to talking tough on extra tariffs . Jim i think politically it is so superficial if u. S. Politicians do it. You can blame everything with the lights going out, it would not cooking properly on china. It is kind of silly. The only way for it to shift is for the u. S. Economy to get recession, when the u. S. Wants friends around the world. Francine the trade war must impact the u. S. Consumer, and it is risky before christmas to take that chance. Jim we are clearly getting some kind of deal. It is also concluded that we cannot afford what we were having a few months back in terms of the interplay with the economy slowing and going into an election year. Otherwise they would be toast. Part of me thinks we might be safe through the first half of next year, but egg picture, i am picture, i amg not sure. Francine if you look at it from the chinese side, what does president xi do . Jim that is a tough question to answer. Some belief asis to how they should be terminally permanently, and my view is what is coming after the next election, and crucially, i think theyways they save see this as an advantage and it is allowing them to get closer to some of the countries. The chinese enthused , i am not sure if it led to much. I think the chinese are seeing this as an opportunity for them to be marginally close to other countries at the expense of the u. S. And of course whatever they hope to achieve will also depend. Francine does it have an impact on the belt and Road Initiative . Jim i would hope it adds to what i thought was necessary for the chinese to be a bit more open and imaginative about the belt and Road Initiative. It adds to the importance of the belt Road Initiative. I think you will see more of that going forward. Francine jim oneill, former commercial secretary of the treasury, United Kingdom stays with us. Coming up, jay powell strikes an upbeat tone on the u. S. Economy. This is bloomberg. Finance, economics, politics. This is bloomberg surveillance. Executive resigning, Brian Hartford then to investor pressure after allegations of the biggest violation of Money Laundering in australian history. The lender is accused of 23 million breaches including mailing, payments that facilitated child abuse. In the u. K. , bp is looking for broadband supplier to lessen its reliance on huawei. U. S. Based vendors will likely be among the bidders. Google firing employers for violations of the security policies, part of the escalation between management and workers. It comes after staff protests and union organization. Googlel email declined further comment. Francine thank you so much. The fed chair jay powell is confident policymakers can extend the record economic expansion in the u. S. Powell says the glass is halffull. The central bank chief is mayaling Interest Rates remain on hold. There are a couple of people who think President Trump is talking tough on china goes that is one way to get the fed to do what he wants, lower Interest Rate. Jim that has happened many times this year. Francine that would mean he is harder on china to make sure the fed moves. It was might now realize a naive strategy beyond the immediate impact. What it does is guarantee exports and Business Investment spending, and makes the u. S. Even more dependent on the consumer than ever. It is not a savvy thing to do. Signs, there have been until the past couple of months, that that was his partial purpose. Having seen what powell had to say, the very latest tea leaves in the u. S. Are themselves surprisingly strong, including for the labor market. Jay powell also pointed that out. Growing signs of accelerating wages for the most low income people. It is a glass that is at least halffull for now. Very symmetrically dependent on the consumer. Francine longerterm there are so many uncertainties. Jim huge uncertainties. Francine do you think the glass is halffull at the moment . Jim is it the feds job to focus on the underlying structural issues . You are right, would i have confidence the u. S. Could escape a recession in 2021 . No, because if something went wrong with the consumer and we have not solved the trade issues, the u. S. Will quickly be in trouble. Markets,eans for the we will not be easing forever when there is no purpose. And the market starts to backup in terms of bond yields, mortgage refinancing becomes a challenge. Think it is half full now, but i do not think it is structurally very half full. Francine what you do with the flattening yield curve . Should we look at that . Jim it is happening again, which is another sign below the hood, even though we hit new highs on equities, people are nervous, and i can see why. Francine what would you look at to understand there is something wrong with growth . We are kind of in a holding pattern. Jim i am looking forward to sunday, december 1, south korea will publish its trade data for november. November showed a 14 drop. I have a suspicion they might but if they weaken further, things are progressing downwards. Francine who has the most to lose in the u. S. China trade war . The neighboring countries could win. Vietnam, it has been a huge winter. A huge winner. To lose, in the shortterm it has been china, but i would argue against convention that medium to longer term is the u. S. The u. S. Is fighting off it is biting off its own nose. The only way it can structurally improve its economy is through exports and investment spending. You cannot get there i beating up on the second largest economy in the world, particularly the one that is more important to the consumer. It is not a smart permanent strategy at all. Francine what about germany . It a small open german, given how policymakers think, that is kind of true, but it is ridiculous because it is the fourth largest economy in the world. One would hope what has happened with germany the past 12 months, german policymakers would wake up and smell the coffee, and shift policy priorities, and become more active on fiscal policy. Narrow, andically realize they need to be terminally dependent on domestic demand, and not so vulnerable in terms of exports. Ourany, even despite selfimposed brexit chaos, we are growing more than germany, because germany is the complete victim of what goes on with world trade. Goes crazy on the positive side, germany immediately starts doing better. If we carry on the way we are, particularly the structural factors, germany has problems, and the only way out is to take a more imaginative approach to fiscal policy. It seems beyond the capability of anybody sitting in berlin or frankfurt, other than the new ecb president. Francine we will talk about fiscal spending in germany shortly. Alibabas stock jumped in its hong kong debut, we are live in the city next. This is bloomberg. Francine tech giant alibaba jumped 6. 5 today on its hong kong debut. The company has raised 11 billion u. S. For more, our reporter joins us from hong kong. Successful it was so. 6. 5 jump is impressive. It was a good day for alibaba and for investors. It closed up more than 6. 5 . During the day it rose as much as 7. 7 , and impressive day. Good to have forss to trade, and good the listing, the biggest since 2010, the biggest in the world this year so far. The fact that it performed well is good, and good for liquidity in hong kong, and shows you can do large listings despite the unrest over the past six months. Francine what does it mean in terms of expansion . How much bigger do they want to be . They are now sitting on 43 billion worth of cash. That is an awful lot of money to spend. They have been competing fiercely with Online Food Delivery. It will compete with tencent which is also listed here in hong kong, and many other Tech Companies. Cloud computing is a new business venture. It is definitely one of the most cashrich Tech Companies out there. Francine thank you so much. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Francine trade fatigue. Stocks struggle for direction. Chinese officials are saying they are staying in touch. Alibaba stock, its hong kong debut, a welcome victory for the city after another illegal defeat for carrie lam. Deals top 70 billion and 24 hours per how many more takeovers will we see in the rest of 2019 . Good morning, good afternoon, and good evening depending on where you are in the world. This is bloomberg surveillance. Lets check in on your biggest stock movers. I want to start on the upside this morning. This comes as they explore the potential sale with a lot of interest from the private Equity Industry and apollo global, one of those Companies Potentially interested in one of those buyers. Plunging down more than 21 . This company had a lot a rough year, painting more as a gloomy picture. They are suspending Dividend Payments are this comes after two profit warnings this year. And Compass Group down 5 . That is the biggest decline in the entire morning on the stoxx 600. This was due to a weaker environment in europe, so that was really the cause of what they are seeing, and they are talking about a deteriorating macroenvironment, francine. Francine Annmarie Hordern with the latest movers peerless get to first word news with viviana hurtado. Viviana qe is becoming an option, but we dont expect to need it. This according to Australian Central Bank chief philip lowe. He says it Bond Buying Program 0. 25 , but rbat is a long way from his threshold from its meeting on quantitative easing. Jerome powell is confident policymakers can extend the already record economic expansion in the u. S. Powell says the glass is more than halve full and with the right policies we can fill it further. The central bank chief again signaling Interest Rates will probably remain on hold. Mustmer white house lawyer appear before a congressional committee. It is probing president donald trump, the order from a federal hege p the president claims is covered by potential immunity, but he has been ordered to testify to a panel, as there is an investigation over whether President Trump tried to obstruct the investigation by robert mueller. Out fors being called selling copy sneakers for a third of the price. No comment, by the way, from amazon. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more i am vivianatries, hurtado. This is bloomberg. Francine . Francine thank you so much. Boris johnson a Jeremy Corbyn are taking messages to help with the december election. Conservatives are thought to be playing on fears. Corbyns labor revealed a 10. 8 billion pound package for social care and that the tories could not be trusted to look after it. Most polls give him a doubledigit lead, but u. K. Pulls over the last several years have proved unreliable. I guess joins us from chatham house. We have been talking about brexit for three years and now we have fresh elections december 12. Do you trust the polls . Well, i think it would be a bit daft to get too trustworthy pointed outew just the past four years. Boat else have we got but what else have we got . My presumption right now has been a small tory majority. I am not quite sure about the move over the last three days that it could be i think there is a lot of things going toryat are helping the position, so obviously for a large shift for the brexit party, that has helped. I would suggest that the lid dims, being so aggressive about revoking. I think that has stopped some people who would vote for them who are tory, sticking with the tories, and virtually everything that comes out of jeremy is the scale of the fiscal that we are talking about is sort of mad. It is a shame because some of the things that they stand for for example, true social housing, i think would be good. But the scale of the fiscal numbers we are talking about it suggests to me that it is a bunch of people that dont actually really want to have power, they just want to be ideological noisemakers. It is kind of crazy. Francine what does this mean for the markets . A lot of this things i do not know if it is just brexit fatigue on the markets or policy fatigue . I dont know if the u. K. Can figure out exactly what this means. Think if Boris Johnson goes out, thens the deal it will be better for the market. What is interesting is that this particular unrest is not only in britain, it is in everywhere. We see this polarization of the economy, the political arena, which varies on the left side and others that vary on the right side. There is nothing left in the center. Your urope and in in europe in the u. S. Also. Jim i am going to perhaps controversially take you on for a bit. The thing that stands out in the euro in the u. K. In this jumpedn, the tories have to the middle, and they are almost like old tony blair labor with the fiscal labor that the tories are talking about. Arecine certain sections going the right way. Jim not on economic policy. Francine well come on social issues. Policy, not inc the slightest. Significant intervention, not getting a lot of attention. White appropriately, in my view, a major further boost to minimum wages. Not the sort of stuff a radical right wing thinking economic wise tory party would do. The second thing