We are seeing a balance for the s p 500. Starting at 200 and moving on. Up. 4 . Are down 1 ing right now, another setback for boeing, its star liner heading to the iss did not make it. Boeing has put out a statement saying it was the wrong Mission Timer installed and it is unclear. They are looking at sending another unmanned crew into orbit, but not sure if they will yet. Another setback for boeing and that stock is down today. It is worth noting the brazil regulator has given the goahead for the boeing merger in january. That is one Silver Lining to todays news for boeing. Ae british pound is up quarter of a percent on this friday session. The ftse 100 up a tent and germany is rebounding up. 6 . We began in the u. K. , where the were Andrew Bailey will succeed mark carney of the bank of england. We are joined by David Goodman from london. Names have a lot of leading up to this decision, including likes bailey. Why was he best suited for the role . David bailey has been the favorite when the process started. We have seen more speculation around other candidates. But they thought bailey was by far the most experienced candidate in the most ann dowd candidate. Candidate and the most experienced candidate. Reporting on Financial News about the revitalization of Central Banks and governments positively input. Thathere a hint of an idea his position on brexit may have been a factor in the decision . Andrew the government claimed that did not play a part in the decision. Issue thatuch a big is something the government has to deal with. Those are questions bailey wouldve answered. Bailey has concerns. Brexit ising back to what he had issue with the new government. [indiscernible] vonnie i want to bring up the controversy yesterday. To be angoing investigation of the bank of england for this audio feed of its news conferences that went out faster because they were going to be compressed. How does this play out with Andrew Bailey pending the investigation into the boe which he will head come march . Says it is ink investigators hands now. It will be interesting how it works out. Much, davidk you so goodman, in london. Lets get back to geopolitical concerns. I think that what occurred last night underscored this democratic field being wide open. There were concerns in the marketplace in august and september, in terms of the indications for the economy. This really remains a pretty wideopen contest. In terms of the people on the debate stage last night, and those who are not, including michael bloomberg. Wise to not make any portfolio positioning or marketmovingtypes of decisions based on where the polling is. Can makehat people portfolio decisions are on policy . Policy issues that have been resolved in the last few days, but not in coming days. It is a reduction of downsize risk. You can make an argument that there are parts of the usmca that will Impact Industries positively, but it is the elimination of a downside policy risk, which was at President Trumps may have moved forward with nafta 1. 0 withdrawal if it usmca had not been ratified by congress. The boat through the house this will go into the senate and will likely headed the president desk in the springtime. It is more of a reduction of uncertainty and something positive. Vonnie what about the china deal . I think the markets understand the reprieve in escalation. That is how we are characterizing this to our clients. It is not a massive deescalation. You saw the outlines of a relatively positive deal in terms of promises for purchases of goods, promises on intellectual property enforcement, but as we all know, negotiating many countries, particularly with the chinese, there are times or promises have not been delivered on and there is uncertainty that even if you dealt through the fees one hase one deal, it is a possibility china may not move forward with their promises. The tariffs escalation is not off the table, even though the market is priced for it. Vonnie we also got a spending bill the last couple of days. Does that mean anything in terms of whether we see a recession in 20202021 . Has been a big week this has been a big week. Bill the spending bill was a series of Appropriations Bills that were passed this week, based on overall spending numbers agreed to back in august, the punchline from an Economic Perspective is this is a small, fiscal tailwind going into 2020 that represents 50 billion in increases of Government Spending yearoveryear. For contributions to gdp in 2020. It is is it gangbusters bill . Not really. Checked atrump has lot off his list before the christmas holiday, so good for him politically. Vonnie you are sticking around. Lets get to the first word news now. In the u. K. , Prime Minister boris johnson. Brexit bill made its first hurdle. Mps voted for it to proceed to the next stage in johnson debate by declaring his legislation office, no possibility for a further delay. The bill would take the u. K. Out of the European Union by january 31st. Boeing, we have a problem. The Company Bought star liner rocket launched successfully, but an engine burn did not go positively and now nasa says the capsule will not meet up with the International Space station as planned. This is an unmet test flight an an manned test flight. In india, thousands of people defied a government banned on public protests by demonstrating against a law that stems from neighboring countries of becoming citizens. Some people were killed and more than 1200 were retained in new delhi. Seven democratic president ial candidates were on stage last night and joe biden had the strongest debate ever. He did not ramble over his words. He made the case for why President Trump should be defeated. It wasse constitutional for the house to act as it did. Half of the American People want resolved now. We need to restore the office of the presidency. Biden argued he has the best chance of beating the president and has a record of delivering votes. Global news, 24 hours a day, onair and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Vonnie . Vonnie coming up, we will have more last nights debate, live in los angeles with the latest. This is bloomberg. Live from new york, im vonnie quinn. This is bloomberg markets. Lets check market with kailey leinz. Another day, another set of records, touching new highs with gains of 2 10 of one person and you have the stoxx 600 in europe touching a record up. 2 , and , the nasdaq has increased. It is on 3. 7 . We also have to talk about the economy with all of the data we got, including the thirdquarter gdp coming at 2. 1 , but if we hop into the terminal, while inventories did drag on growth, at 2. 2 Consumer Spending percent, driving the economy. Lets look at the s p 500 because Consumer Staples is the best performing sector with a gain out. 8 . Kellogg got a double upgrade. Laudero have estee hitting a new record with its 1 gain and carnival cruises is seeing its biggest jump since 2009 at 8 and getting a lift with some of its cruises. Vonnie kailey leinz, thank you. Democratic is a dental candidates took to the stage in their sixth debate. Kevin cirilli is outside of the venue in los angeles where it took place. Kevin, what is the takeaway of last nights debate . Who won and who lost . Kevin on policy, there was a divide between the progressives and moderates. Drawingen joe biden a contrast with senator bernie sanders. On the issue a medicare for all, senator sanders saying our radical type of changes needed in the health care system. Nema, joe bidens campaign saying they would like to see a more measured approach. Elsewhere on the lower tier didates, it was all out to although political war between Elizabeth Warren and pete buttigieg. Facingttigieg just not transparency from high dollar donors, but from senator amy klobuchar, the democrat from minnesota, who was trying to make her case that she could be that she should be considered in a category of joe biden as well. Vonnie thank you, kevin cirilli, in los angeles. For more on the president ial campaign, we are back with our guest from pimlico. How does impeachment change things if at all . I dont think it really changes in terms of the 2020 calculus, unless the senate deeper inly goes much 2020. Right now, the presumption in the hope on the democratic side is this thing will be wrapped up in the senate february 3. There is some sort of negotiating over the articles going from the house to the senate, but pelosi and Chuck Schumer and the minority leaders in the senate want this thing to be over with before we get into the primary contest that start february 3. Candidates aree going to have to stay back in washington, so does that affect campaigning . I think the hope on the democratic side is that this thing is done for, and if it has any implications in 2020 . Vonnie when will we see more candidates drop out . It is interesting. It feels pretty wide open. Last night underscored that, however, between february 3 and march 17, in terms of the primaries, you will have 70 of the delegates allocated, so we should have a good idea by that date, march 17 should be an important date because if we dont have a frontrunner by then, there is a chance we will get a brokered Convention Heading into july. A pretty expect significant winner going into the election. Vonnie how will markets position themselves between then and march . January and march . I think it will depend on chinas compliance with the new deal. If we get the ideal signed and if they dont comply, i dont think we can rule out an escalation with china, but this president wants to get reelected, he wants to run on his record from an Economic Perspective. So he will be very focused on that. You know, from i markets perspective from a market perspectives it will really depend. It it is Elizabeth Warren, the prognosis will be different if it is joe biden. Vonnie what is the one policy prescription that may change this election . Will it be medicare . Will he be taxes . Something youis have been talking to our clients a bar to our clients about. You want to. Sound the rhetoric here. Of these ideas require congress, so the composition of congress and the composition of the senate is going to be determinate of how much of this agenda they can get through. And it looks more moderate, even if you get someone more progressive. Medicare for all, brandnew deal will be moderated and diluted and will be back tomorrow incrementalism. There is not one, that can there is not just one perspective. You cant take this with a grain of salt. Congress will be more moderate then these bold ideas. Vonnie we have to leave it there, but thank you for your thoughts. We look forward to more of your input. Ahead, looking ahead with cryptocurrency. This is bloomberg. Imie live from new york, vonnie quinn. This is bloomberg markets. The sec has approved its First Bitcoin Fund for investors. Here to discuss is james, an analyst. What if they approve . James they improved a fund. An interval fund. Open ended knows funds and etf, where you can create shares. A closed end fund, once the money goes in, it never leaves. This is like a closed end fund that doesnt trade on exchange, but money can come in. It has an interval period for redemption. This will be quarterly, but there are a lot of guardrails here. This one will only have 25 million in assets. There are quarterly redemptions, so you can only take your money out on a quarterly basis. You might not be able to get your money out. And it will be bitcoin futures, not physical bitcoin, and it will only be sold to registered investment advisors, so only investors can buy these. There are a lot of guardrails here. Vonnie what would it mean for potential bitcoin etf . This makes us optimistic because there have been 25 filers. If you asked me a few weeks ago before the announcement, what are the odds of a bitcoin future, we would guess around 20 . There is a lot of maturation in the ongoing market. But it is about 5050. The conversations that companies that people are ready to dip their toe in the water. We had a big event last week with vanguard, state street and blackrock. They did not think a bitcoin etf was coming in 2020. Vonnie james, thank you. It is time for your Bloomberg Business flash. Usmca has news to deliver. Wille company said they lay off more than 1500 workers in detroit. Dividends,slashed highlighting the challenges facing american steelmakers. The top prosecutor in malaysia says he is ready to ratchet up a criminal case against goldman sachs, wanting to take current and former Board Members to court. He is accused of ignoring red flags while billions were diluted from funds. Impulse is ready to settle the investigation. Reviews of a reviews of the movie cats are going to the dogs. The boston globe called it a disaster and one says, oh god, my eyes only a handful of critics recommend of the movie on rotten said it, but one review is so bad it is now in the good category. That is your latest Bloomberg Business flash. Still ahead, stocks are edging fearing abonds slide, recession is fading. 4 . Now, s p 500 is up the Dow Jones Industrial average andnasdaq are up. 3 , seeing a positive session across the board. Is best performer in italy up. This is bloomberg. Vonnie President Trump has just tweeted about a conversation with president xi of china. Had a very good talk comparing our giant trade deals. China has already started a large scale persons with Agricultural Products and more. Formal signing being arranged. Also talked about north korea where we are talking about china and hong kong and then progress. We are not seeing much of a Market Reaction to the tweeted by the s p 500 is up in the dow is up as well. Lets check in now for the first word news. American spending grew by more than previously reported in the third quarter. That was offset by a drag in inventory. That left Economic Growth as still healthy but unrevised 2. 1 percent. Consumer spending makes up two thirds of the economy. It rose at 3. 2 annual rate. The next governor of the bank of england has been the countrys financial watchdog the last three years. Andrew bailey will come to the central bank in march from the uks financial conduct authority. He will replace mark carney. Before his latest job, bailey spent three decades at boe. He never was on the bankss Interest Rate setting committee. Baileys views on Monetary Policy are largely unknown. A standoff over impeachment. Nancy pelosi says she is not sending the senate the articles of impeachment against President Trump yet. She says she wants to make sure the republican controlled chamber will give the case a fair hearing. Senate Majority Leader Mitch Mcconnell has that he will closely coordinate the impeachment trial with the white house counsels office. The u. S. Is closely watching north korea for signs of a possible Missile Launch nuclear test in the coming days. Officials are referring to as a christmas surprise. A significant launch or test would mean the end of north koreas selfimposed moratorium and raised tensions in the region. Pyongyang warned of a possible dismiss gift in early December Christmas gift in early december. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Vonnie lets get back to the markets. That slew of u. S. Economic data out at 10 00 with michael mckee. We are also joined by former fx trader. Michael, let me start with you. Personal income and spending and rest of it was positive. And most of it was positive. We saw a little more inflation at least. Not enough to make a difference in the overall for inflation. The personal spending numbers were better. They offset as expected the poor retail Sales Numbers we saw. People spend more on services these days, so that was kind of expected. It does show the consumer hanging in there and two thirds of the economy. The income numbers were interesting. Some people suggested the consumer was running out of gas and they dont appear to be because we did see a rebound in wages and salaries, about. 4 on the month. The real news in there was income zahra because of farm payments. The Trump Administration has been taking the taxes we pay on the tariffs imports and paying them to farmers. They do not pay them on a monthly basis, they pay them at regular times. If you look at a graph, it looks like this, up and down. Farm income in the last month was up 79 . More about the fundamentals of the economy, but we do have another bounce again today and the dollar is holding onto with on its strength. Did see a good bounce after the gdp numbers. It has backed off a little bit. Does that people that mike is referring to is make me. The trade was speaking to just before we came on, so it is interesting the equity markets seem to be pricing in better growth numbers. Fixed income and fx not yet so much. It will be interesting to see who is right and who is wrong about this. To equities pullback into january or do fx and fixed income folks get on board . Vonnie what is the market trading on these days . What we knew was going to get result has been resulted in what we knew wasnt going to get resolved has not been resolved, but in a positive way in the sense we have a bit of a phase i deal. What are markets doing . I can give you a simplistic answer and vince give yo