What is happening with the group market, down attached today. Big moving natural gas in the big move in natural gas in the u. S. Kuwaitis and thes may be doing a deal that would bring more to the market. Dennis muilenburg has been ousted as ceo of boeing. Chairman dave calhoun will take his place. Lets bring in Bloomberg Aerospace reporter justin backman. What did milind berg do wrong what did Dennis Muilenburg do wrong . Justin i think the issue was after these two fatal crashes from a Public Relations standpoint, the way that the families perceived him, the people in congress, and around the world come of the perception was that boeing was ready to just move along, fix this and move along, and it really took a different touch for the situation. Guy guy in terms of what this means for getting the 737 max back, does it change anything . Justin i dont think it is going to affect the timeline for the faa and for european and chinese regulators to do their work, but i think boeing is hoping that this is sort of a fresh start for them with the new ceo and building some new relationships, and kind of starting over, as it were. Guy theres been speculation for quite some time that Dennis Muilenburg would ultimately be ousted. Why did it take so long . Wouldnt have been benefited to do this early . Justin the board had expressed a lot of confidence, and they felt that as an engineer, he was helping move this process along and handling the technical aspects come the software rewrite, but what happened was in a lot of ways, it was the other work, the human relation aspect getting these really ships repaired and rebuilt with the regulators. I think that is where he fell felt it wasrobably time that they tried Something Else. Guy what skill set does dave calhoun bring to the table . Justin he came from General Electric, and had a long term an executive there. I think what he brings is a nonengineering approach. Hes a bit more of a diplomat, probably. He will be going to washington and be sort of mending these relationships that got a bit frayed under milind berg. Guy during his under muhlenberg. Guy despite what is happening with the max, what did you do at boeing . This is a relatively recent phenomenon. Boeing was forced in a difficult position. How did he change boeing while he was at the helm . Justin he focused relentlessly on cost, and boeing did not embark on a radical new designs. They did not do anything that really spent the cash. In a lot of ways, as a financial manager, you saw boeing was producing at a very high level, and the shareholders were happy. I think that is sort of going to be the big legacy, that they focused heavily on cost, made good money, had a topselling duct which became the max as they updated it. I think that is what we are going to see as history gets written on this chapter. Boeing had a very stable and profitable duration under his tenure. Guy Going Forward, what is the relationship at the faa look like . Clearly, one of the reasons we are in the situation is that maybe the pendulum swung too far, and that boeing had to much the had too much say in certification program. What does it look like Going Forward . Justin i think you are right, it is swinging back, and the faa has been very aggressively making statements in the last few weeks that this administrator steve dixon is saying they will not be rushed. Theres no timeline on when the max returns. Safety is dictating everything now, as it should be, and they are feeling no pressure at all from boeing in this process. Think what we will see is that they are going to be much more muscular about this aircraft and anything boeing designs in the future. Theres a widebody aircraft underdevelopment right now, and i think you will see that the faa and other regulators will take a very firm stance and look at those planes very carefully. Happens to some of the other programs boeing is actively pursuing right now . What about the midsized aircraft . This new management take the same approach, given the nature of these airframes . Presumably there is not much management can do to change the outlook here. Nma ise justin the under scrutiny right now because all of the focus has been on getting the max back into service. It is important its importance cannot be understated. X moves along,7 and the nma is probably on the back burner until, at some point next year, they feel like they have got their arms around getting max deliveries back. That, even when this airplane comes back, theres a huge amount of work that needs to be done to get 400 some airplanes that have been built in storage to the customer. Guy we are going to leave it there. Big day for the aerospace sector. Joining us from dallas. We have been talking tesla in the last hour. They say they have exceeded 420 for the first day in intraday trading. We are currently just a little soft behind that number. Share price has been rocketing of late. That share price chart doesnt really do it justice. Longer timeframe and you will see the huge gains tesla has been making. Back at the beginning of 2019, we had the stock near 170. We are already we are all the way up at 420. This was the line in the sand that elon musk was talking about in terms of the take private. 420 for tesla. Lets get back to the markets and talk about some insight into what we need to know about what comes next in 2020. What does that bring . Joining us in london is bilal hafeez, ceo and editor of macro hive. 2019. Talk me through your impressions. It really depends whether you include the back end of 2018 and the big december we had, or whether you start from january 1, whether you think it was an amazing year or an average year. Bilal that is a really good point. If you take december into account, it wasnt such a good year. If you ignore december of last year, this was an amazing year. U. S. Stocks are up over 25 , bonds rallied overall. If you had a very simple portfolio, you would have had incredibly high returns over the course of this year. Unemployment also fell, inflation was stable, so on the surface it seems like it was a really good year, but below the surface, we know that even over the summer this year when the yield curve inverted, they were many fears of recession. There were trade war fears and so on. So the january to December Numbers kind of ignore some of the issues we see underneath the surface. Guy in august, the world was going pretty badly wrong, and we were heading into a recession. The curve was inverted. Everyone was panicking. We have almost on completely the other way. If the market too optimistic going into 2020 . Bilal there probably is momentum to remain optimistic in the early months of next year, but i think a lot of the optimism is priced in now. You have to remember from august, extreme pessimism, the fed pivot easing. Weve also had stabilization in the overall data, so that is all really good tailwinds for markets. That change in news wont be so positive as we go over to 2020. Guy lets talk about the risks, the big picture macro risks for 2020. Isal one of the big risks does the market have further room to grow or not. One of the supports over the last year has been the consumer and the labor market. We could start to see cracks on that side. Incould see some weakness labor markets, which would then impact the consumer. If we look at manufacturing pmis around the world, they have been incredibly weak. If they remain in the doldrums, we could see spillover. , if youking backwards take the trade deal, brexit, a whole lot of other factors into consideration, do you think that will give the confidence to Industrial Companies come of the ceos, the guys at the helm to turn around and start to invest money . Is a factor next year . Bilal i think the big impact of the trade war is more in terms of how inventory will be built up and so on. Theres a larger structural issue around investment, where investments in general have been incredibly weak over the past few years. I think part of that is to do with the structure of economies now, where companies are growing without much capital to build a platform. You just need to have good marketing to increase your network, and as a result, you end up with big tangible assets. Guy are we midcycle or light cycle . Bilal or late cycle . Bilal i think certainly we are late cycle. If you look at the levels of unemployment, capacity utilization, and some Balance Sheet measures, whether it is government or corporate Balance Sheets, they all look on the stretched side. Guy where would i look for risks appearing . When i asked this question, i get the answer credit. Is that the right place to look . Bilal it is certainly the best barometer for these type of things. Certainly the lowest tier credit will be one of the earliest places you could see some distress in markets. But more generally, another thing i would focus on his market liquidity. When you see flash crashes, dislocations and markets, the repo story for example, unlike 2008, which was really a credit crisis, i think this time we are going to see some kind of liquidity crisis where people think they have liquidity, and that leads to a much larger Chain Reaction in markets. We can all see oceans of liquidity. The question is whether or not that is trapped or not. Wasexample, the repo issue all held and trapped within certain institutions who arent willing to share that liquidity. Stick around. Lets get an update on what exactly is happening with these global markets. Kailey leinz, over to you. Kailey we are continuing to put on the gains as we head into the holidays. The s p 500 higher by about 0. 2 , with the dow up about zero point 4 , in part due to boeing. Of theer stories come spike in silver, with prices that more than 1 today. The other is the ftse 100 in the u. K. , up about 0. 5 right now. This is actually the ninth consecutive gain for the ftse 100, at longest winning streak since may. We continue to ride the high from the election back in december just a few weeks ago. Timmer get back to boeing, it is the leader in the dow today and the heaviest weighted stock in that index. Right now youre looking at that stuck up about 2. 8 on the ceo switch up. Investors seem to be liking that. It has the stock on pace for its best day since back in november. This has been a very volatile ride over the course of the past year. The stock has really been in a range since the 737 max crashed back in march. I want to start with apple because it got a price target lift at wedbush up by 1. 4 . Andy already did us performer amd already the best performer in the s p on china rolling back tech tariffs, helping that company. Finally, apache is the best performer in s p 500 today, up the better part of 12 after totale agreed to a deal with the cup and he. Guy thank you very with the company. Guy thank you very much indeed. You can track all of that using gtv. That allows you to access all of the Amazing Charts the team here produces. Catch up on the key and ill assist that goes around here as well. Save those charts for future reference as well. This is bloomberg. London, im guy johnson. This is the european close on bloomberg markets. Heres viviana hurtado. Viviana china cutting import tariffs on a wide range of goods that includes parts for many factoring smartphones and consumer items including pork. Beijing is continuing to lower trade barriers as it tries to spur domestic demand. An outbreak of african swine fever has caused shortages in pork. U. S. Senate Majority Leader Mitch Mcconnell isnt ruling out witnesses at president trumps impeachment trial, telling fox news hes not imposed hes not opposed to witness testimony. He says the trial should be handled in the same way as former president bill clintons in 1999. This after going through opening arguments and written questions. One democratic lawmaker saying he is keeping an open mind when it comes to the president s impeachment trial. Alabama senator doug jones says his colleagues have some gaps in their case, describing the impeachable, but says he needs to hear corroborating testimony. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana hurtado. This is bloomberg. Guy guy thank you very much indeed. Still with us, ceo and editor of macro hive bilal hafeez. He has a list of potential grey swans we should be watching out for in 2020. Youve got the u. S. Introducing capital controls, england winning the euro 2020 football championships, apple buying disney. I want to start off with the first one. The u. S. Introduces capital controls. That is quite a headline. Is it possible . How could we get there. Bilal i think it absolutely as possible. You have to think about the economic ball between the china the economic wall between the United States and china. The most valuable asset the United States has is intellectualproperty and its companies. Acquiring many of those assets. Is that capital controls, or just the restrictions weve got at the moment being applied a bit more rigorously . Bilal at the moment, there are existing committees that stop that, but it is capital controls. The next step could be something larger, where the u. S. Could say, hang on, china is now acquiring companies that acquire u. S. Assets. Before you know it, you have wideranging capital controls on all sdi into the u. S. Guy one of the areas where this has been discussed is the idea there could be capital restrictions in terms of investing in chinese companies. A lot of people have been concerned that u. S. Pension funds are basically investing in anda and helping china gaining access to capital this way. Do you think that story has any further to go . Ways, china is getting u. S. Capitol to fund its own corporative element. If the u. S. Does have disposition that china has subsidies for its corporate sector which harm competition and so on, then the u. S. Could say u. S. Investors no longer fund china in any way. Again, this will be another form of capital control that would really hurt chinese develop and. Guy number three, euro area inflation surge. Youve got to be kidding, right . How do we get there . [laughter] bilal core inflation has nudged up over the course of this year, said there are the beginnings of inflation. Really, the big way this could happen in euro areas fiscal stimulus in the euro zone. We have started to see a shift to the left in germany. You will get some kind of leftleaning coalition, and you could see fiscal stimulus from germany, which would then prompt countries to stimulate their economies through some fiscal policy. Also, we have all sorts of Union Strikes and activism that would push up wages. Before you know it, if you put all of these pieces together, you could start to see inflation pick up. Guy we were talking about tesla a moment ago. You have seen the biggest threat to the auto sector not being electrification, but Virtual Reality. Thel you have to question motives for traveling. If we get major advances in Virtual Reality or journal communications, then why do we need to travel . That could harm the auto sector. Apple is going to release its Virtual Reality headset, which, when apple launches something, it invariably has quite wideranging effects. Guy and to be a could go with disney assets. Bilal yes, the other great when we came up with is disney being acquired by apple. The reason for that is if you look at apples operating income over the past for five years, it has stagnated. Everyone has got their iphone. Apple is trying to get into new v, so why not least t not acquire disney . Apple has enough cash, over 200 disney, to fully buy so that is summing that could happen. Guy the streaming wars certainly look like they will get fully into gear next year. Hive ceo andacro editor, will stay with us. This is bloomberg bilal hafeez, macro hive ceo and editor, will stay with us. This is bloomberg. Guy from london, im guy thompson. This is the rp and close on the european close on bloomberg markets. On both sides of the atlantic, volume is reasonably light. 0. 2 . P up by we are watching tesla go through 420. The nasdaq up by 0. 3 . In europe, a similar volume story. Most markets will be closed later in the week. The ftse is up by about 0. 5 . The pound continues to slide. The dax trading reasonably flat. The cac 40 up by 0. 2 . The close is coming up next. We are around three minutes away. This is bloomberg. Guy 30 seconds until the end of regular trading in europe. A light volume session. In europe in0 terms of the volume on average across europe. In the u. S. , call it 25 . The ftse 100 is outperforming. The dax trading softer today. The reason why the ftse is outperforming on the pound is on its longest losing streak since may. More shakyooks limited on the day after the u. K. Election 10 days ago. U. K. Equity assets have held up better. Today we are up. 5 . The dax trading softer, the cac 40 up. 2 . In terms of the way we break range. Down, very tight that goes with this idea there is not a lot happening and a lot of desks are not that well staffed. In terms of the sector rotation, there is little bit of action. Oil and gas outperforming. That is one of the reasons the london market is doing better than most. At the bottom end of the market, it is those banks, down. 8 . Not the greatest for european banks. They have done 8 over last year. The market from the stoxx 600 point of view over 20 . Stocks underperforming today as they have throughout the year. In the United States, light volume. Not quite as bad in europe. The dow has been boosted by boeing. The ousting of Dennis Muilenburg seems to have given that stock lift. The s p up. 2 . Through 420g tesla today. A big line in the sand. The global themes we continue to watch out of this year into next that is on a one month basis, today trading higher. Over the onemonth period down 10 . The bounce not that big over the problems David Calhoun faces. I mentioned the pound. Macro five editor of still with us. What happened to the boers bounce . Unce . E boris bo i think the market realized a hard brexit is still on the table. There is naturally profittaking after that. The key thing is that after optimism on election day, there could be a possibility of a soft unless negotiations between the u. S. And europe change when the u. K. Government talked about putting a Firm Deadline in. Divergent looks like t