Will we had that 2 as we continue to get a trade deal . Time now for global exchange, where we bring you todays market moving news from all around the world. From hong kong to beijing, london and washington, our bloomberg voices are on the ground with todays top stories. In asia, chinese economy is showing signs of stabilization and regaining some kind of growth momentum in november. Chinas Industrial Production and retail sales both meeting estimates. Joining me on the phone is in an. Current is enda curr give me some of the details in the data dump we saw overnight. Enda these clearly signal that the economy is ending the year on a better note. 8 . Il sales climbed Industrial Production rose 6. 2 . Theres some caution around the fixed Asset Investment number, which only grew 5. 2 , but nonetheless, the take away among economists was it showed that the stimulus the government is rolling out is having some traction. There were some seasonal effects as well. But when you have a trade agreement coming into the mix of the coming months heading into 2020, we didnt get much on the way of extra detail on the trade agreement. The Foreign Ministry only said officials from both sides remain in konta remain in contact. Now, the news on chinas economy is upbeat for the first time in a while. Alix thank you very much for joining us. Now we go to beijing, where hong kong chief executive carrie lam met with senior chinese officials over the weekend. Both the chinese president and the premier reiterated their support for lam following another week of prodemocracy protests. Joining us on the phone is tom mackenzie. What is the significant of the support from beijing, and where does this put protests in hong kong . Tom support from beijing is absolutely crucial because that is what carrie lam relies on, and has been questioned for the last few months, how long she can continue in post given that poll ratings for her are at historic lows. We see more than six months of protests, the most in more than a decade. The first thing we heard when she came over for this meeting was would she still have their backing . It is clear that she does still have their support. Despiteandover suffered the have grimmest year since the handover, they continue to support her. The other question is whether they would meet any of the key demands of protesters, or merge towards universal suffrage, and on both of those, we got essentially no comment from beijing. No surprise. Xi jinping said they would continue to support the police and uphold National Security, so we should expect protests in hong kong to continue. Alix thank you very much. In the u. K. , Boris Johnson is set to appoint new masters new ministers to his cabinet. Joining us is near cherish is nejra cehic. Where are we now . Nejra we are looking ahead to three new appointments today, appointments today, three secretaries. We are looking to introduce a law to get brexit passed so that the u. K. Can exit the eu by january 31, and also, on thursday is the queens speech, where we find out about some of the new government plans. The chancellor of the exchequer actually stepped out of 10 downing street earlier and said, welcome to the peoples government. We are expecting some Spending Plans in that speech. We are expecting about 45 billion of extra spending on the National HealthService Every year through 2024. This is a government that is going to spend more, but not necessarily open the fiscal taps. End of austerity does not necessarily mean spending boom. Find out more today based on his cabinet picks and some of the speeches he might given the next few days. Then the question becomes whether the brexit he wants is something he will be able to negotiate with the eu in 11 months or whether an extension will be needed july 1. There are still questions ahead. Another big one outstanding, what is the future for the bank of england and the successor to mark carney, who leaves on january 31 . And also, what might happen in terms of the unity of the u. K. Gains insnp scotland . The fight reemerges for an independence referendum in scotland. Alix thank you very much. Now we go to the repo market, because today is the largest Corporate Tax payment day of the year. Investors watch the repo market for signs of stressed. Edie berger joins us from london. What are we going to learn today from the repo market . Edie we are going to learn whether the feds plan is enough to relieve the stress. Today is really a key test because we have a very similar set up to what we saw in september, and a lot of market purchase bins were really concerned what this meant for this really vital cog. Things tend to drain from the and they pull back from their market facilitating function. They said more action needed to be taken, so it is different this time is the sheer amount of liquidity that the fed has planned to do. Willsaid 500 billion they inject into the market through the yearend. Today specifically marks the start of a 32 day operation w here 52 billion is getting put into the market. That is the key question. Is the repo market going to spike like we seen before, or has the fed did enough this time . Alix bloombergs dani burger, thank you so much. The u. S. And china reaching that much dissipated phase one trade deal. The two sides will release the full agreement in early january. U. S. Trade representative Robert Lighthizer said several issues remain. Phase one is going to be implement it right down to every detail. It really is a remarkable agreement. But it is not going to solve all the problems. Alix 20 me from washington is shawn donnan, bloomberg trade reporter. I just want to know how optimistic traders should be on this phase one deal. That theres no doubt theyve locked down this phase one deal. They are doing their final review of it. That should take a few weeks, and we will get that signed in early january. Key points to remember. Bob lighthizer making the point that he did not yet have a date in the calendar for the beginning of phase two negotiations, which a lot of people think are going to be much more difficult than these phase one negotiations, where they are going to address issues like industrial subsidies in china that a lot of u. S. Businesses would like to see go away, and those phase ii deals are going to take some time. Bob lighthizer this today saying he expects negotiations to go on for years. Thats not too reassuring to a lot of people. The second point is theres still a lot of tariffs that are going to remain in place as a result of this deal. Theres a small rollback in existing tariffs, 110 billion dollars of so from china. We will see the rate go from 15 to 7. 5 , but there is still a big 25 tariff on 250 billion in goods coming from china. Those arent going away until we get progress on phase two. That could take years. There is still a trade war going on. It has just taken a bit of a pause. Alix finally, we stay in washington, where the impeachment process is moving ahead. Senate democrats are demanding that the Trump Administration testify in the senate trial. What they told abc this week. If President Trump is overwhelmingly acquitted in the senate, is that a failure . It isnt, noto, in the sense of the constitutional duty in the house. Alix joining me is kevin cirilli. What do we expect over the next five days . Kevin on wednesday, the house likely going to Vote Along Party Lines to impeach President Trump, backing him the third president to become impeached. Alreadyre, rules are beginning to emerge in the senate, where minority leader Chuck Schumer yesterday sent a letter to the majority leader mitch mcconnell, calling on more folks to testify from within the administration, including john bolton, as well as mick mulvaney. It is unclear whether or not leader mcconnell will accept that request, but all eyes are indicating that there should be a quick acquittal in the early part of next year and the senate. Onnwhile, the president friday telling reporters he would very much like to see folks testify that werent able to testify in the house proceedings. Most notably, hunter biden, former Vice President joe bidens son, who has been in some of the questions surrounding this. Either way, that vote is likely scheduled wednesday, and then how they will shift to will be in the senate. 47 of folks in favor of impeachment, 46 opposed to it. Alix thank you so much. Another story im watching today, china is now threatening retaliation if germany bans huawei as a supplier of 5g equipment. Some lawmakers are proposing a bill that would a that untrustworthy vendors. Meanwhile, huawei has repeatedly rejected accusations of its potential. Morris coming up in todays first take. This is bloomberg. Alix im now for bloomberg first take. Time now for bloomberg first take. Joining me, youve got vincent cignarella, former fx and rates trader, mckee, Bloomberg Economics and policy correspondent, and with us is david kelly, did morgan Asset Management chief global strategist j. P. Morgan Asset Management chief global strategist. What is the trade . Vincent we sort of have to trade more behind, to some extent. Theres a pause. The market is not euphoric, but it is giving us an opportunity to catch a breath. I think the focus traders are talking about is we are moving away from u. S. And china trade and focusing on europe, and germany looks to be front and center, first from what is going on with china and autos, and probably with donald trump and autos. Germany is the next target insight for traders. David i thing its pretty clear that trade tensions are diminishing. One, a clear phase path to brexit. I think once we get brexit, it will actually be a smoother relationship with europe then people fear. It amounts to less problems with the Global Economy. I would expect International Equities to do better off. I think the u. S. Dollar will come down. Michael im going to defer on markets to the two experts here, but from an economic point of view, i brought along a chart that shows what weve lost in exports to china during the trade war that we wont get back from this phase one deal. You can see the giant hole in u. S. Export economy. Thats not going to come back, and we have lost a lot. So there are a lot of questions about what weve gained. Now that trade tensions may plateau because the trade war didnt go away still a lot of issues out there but the tariffs still remain, so the overhang on the economy and the Global Economy still remains for right now. Vincent i think mike has nailed it, as usual. He said it on one of these shows in the past. The trade situation with china, the ag exports in 2017 amount to exactly where we are right now, and lighthizer said over the weekend before the billion dollar or 50 billion trade deal is going to be over a twoyear over a twoyear. We are going to see supply Chain Management the phrase for 2020 as to where people move. Will see u. S. Corporations slowly move away from china, and see china move away from the u. S. For the same reason. David i think the tensions in the trade war is in itself a theme. Both sides realize this is just making us both poorer. Particularly in the u. S. Case, the bus economy cant actually take that much more bad news on trade. The end mensuration talks about china being anxious to have a talks the administration about china being anxious to have a deal. They are. Vincent i think that is totally correct, but when you look at phase two, they are going to want to have the subsidies removed, which is what the u. S. Wants. It is a state run economy. China is not going to move away from that. Soid but it is all artificial because the reason we have a trade deficit is not because of china. Its because the dollar is too high and we run a big budget deficit. We live beyond our means as a government. Small trade deficit with china. We have a big one with mexico. But it wont fix anything in this economy. That, i think increasing trade tensions is damaging to both sides. I get what you are saying about phase two negotiations, but i think the administration might soft pedal a little bit over the next few months. Vincent going into the election, one would expect they will. I would only add the administration isnt going to do anything. It is all what up it is all up to one man, trump. Alix that raises the question of what happens with europe. The headline of china versus of china, versus huawei, where does that leave that country . Say the rest of the world is going to benefit from a trade deal more than the u. S. , but then you still have these negative headlines. David obviously theres still a lot of problems with german manufacturing. Germany has the ability to do stimulus to get themselves out of this problem. But i wouldnt downplay the brexit news. I think getting past it, the almost internal battle with britain to some more peaceful relation for the future, i think that will be pretty good for europe in the future. Michael overtime. In 2020, they have to negotiate with thede Agreement European Union and with the United States. It takes time to negotiate, so 20 20 is going to be a bit of an overhang over the u. K. Economy so 2020 is going to be a bit of an overhang over the u. S. Economy the u. K. Economy. Theyve gotruth is so much in common once you get past the political issue of sovereignty. I think a lot of these different regulations and so forth such as they were will be kind of the same. Than a it took more year to negotiate usmca and there were no tariffs. That was just an update. Alix what i dont understand, if brexit was a big deal for the rest of the world when we were in that, why is it now a good benefit if we are out of it . The eu hasthink other motivations. They are going to have issue with china with the car sales. Huawei 5g, they have issues with trump. So germany is caught between a rock and a hard place. They are motivated, and they will motivate the rest of the eu to come to terms with the u. K. As quickly as possible. Alix just to end with a trade, you take a look at the cable rate, 1. 33. Do you want to buy cable . Do you want to buy u. K. Assets . Vincent im not a huge fan, to be perfectly honest. David given the trade deficit, it is hard to be a huge bull on it is a small positive for the world. It is a slightly bigger positive for europe to be moving this direction. Alix do we get any fiscal boost here in the u. K. . Michael its going to be interesting to see how they handle this. Boris johnson proposed a lot of fiscal spending, particularly for National Health service. We understand that is going to be in the next queen speech, but where they get the money . Its been austerity for a long time. That changes. Theyve got to figure out how to pay for it. Alix maybe the 77 basis points on the 10 year will help them with that. Vincent cignarella, michael mckee, thank you guys. David kelly of jp morgan Asset Management is sticking with me. We use, on the charts go to gtv under terminal. Check it out. This is bloomberg. Viviana this is bloomberg daybreak. Getting ther pfa backing of its most important shareholder for the plan to merge with fiat chrysler. The french government signing off on the deal. The new company would be based in the netherlands, headed by psas ceo headed by ceo. Goldman is pledging to divulge financing that directly supports new thermal coal mines and upstream arctic oil upstream. Rctic Oil Bloomberg has learned boeing may temporarily halt production of the 737 max. It now appears unlikely the company will get Regulatory Approval for the grounded jet to return next month to the skies. Going executives are convinced a temporary pause would be less disruptive than another slowdown in production. That is your Bloomberg Business flash. Alix thanks so much. What are the broader implications if boeing stops production . Here is where it could matter. This chart shows u. S. Aircraft exports, already getting downsized from slowing growth. Boeing is the only substantial maker of u. S. Aircraft, and engines and engine parts were about 7. 6 of total u. S. Exports. Will we actually have a short pull down here, not only from boeing, but also down to u. S. Exports, and then to u. S. Growth . Thats what we are watching today. Coming up, china gets a boost from Economic Data and a trade deal with the best trade deal with the u. S. I will discuss with george from oxford. This is bloomberg. [ dramatic music ] this holiday. Ahhhhh ahhhhh a distant friend returns. Elliott. You came back and while lots of things have changed. Wooooah woah its called the internet. Some things havent. Get ready for a reunion 3 million light years in the making. Woohoo yeah alix this is bloomberg daybreak. Markets are clinging onto that rally. Global stocks hitting a record on friday. One area not participating as much as european autos. Will we have retaliation from nota if europe winds up using huawei 5g components . If you switch of the board, you can see other Asset Classes here. Eurodollar regaining, moving higher. Germany not good, but overall it is all right. Cable rate Still Holding onto the 1. 33 level. The u. S. And china inked that phase i trade deal, but some reversible damage has already been done to chinas economy. Both imports and exports are decelerating this year. Will we get a real boost here . 20 me on the phone from london is george magnus, joining me on the phone from london is george magnus, university of oxford China Research associate. Is this trade deal enough to stimulate domestic demand for china . George i dont think it will be. It might at the margin because we dont know exact lay is going to happen. Theres still a degree of uncertainty about whether it actually comes into being, and how long it will last, but it may have some shortterm effect on bolstering Business Confidence