the central bank heights rates to zero. trumpy is made, donald becomes the third president to become impeached. global bonds selloff, the u.s. curve tops the highest this year as equities flirt with record. "daybreak." we get the boe decision, keeping the interest rate that 3/10 of 1%. the vote is 7-2. they say limited room for cuts of the early move. no surprise if three people have come out and dissented. they do see inflation slowing and keep bond purchases unchanged. they say it is too early to judge the impact of the election and trade war. joining us as stephanie flanders from london, and sewers kaiser

of ubs investment banking. kaiser of ubs investment bank. anything stood out to you so far? this is pretty much as expected. the key is to emphasize there is uncertainty, even though we have the emphatic conservative victory in the election, and we know that brexit is going to happen. there's still uncertainty about what kind of brexit, and short for the bank of england, we don't know what the fiscal policies of this government will be. there is a little bit of stimulus built into their servitors manifesto which was not taken into account in the current bank of england forecast , but they have room to do a great deal more. if you have a budget in the next months from the conservatives which primes the me, has a lot of stem it -- economy, that has

-- changes the outlook. those seven who voted against change probably had that in mind. alix: are you trading cable at all? stuart: today's decision is pretty much in line with expectations. i think the view is the first half of the year you get the or sentiment bounce and the second half of the year you run into uncertainty about brexit. our view after the election was and werice at 1.34, 1.35 are below that after the idea of hard brexit came back into the fold. event, threee point applied volatility premiums. that completely came out after the election, so to the extent the conversation gets uncertain again, you could pry some risk back in, but probably somewhere from where we are to what we got

after the election is what we would expect. you mentioned the election potentially changing the game in terms of fiscal stimulus. do you feel like the boe has been successful in reversing that narrative, or are we still in the process? stephanie: we may not have to. the markets are currently forecasting a good chance of a cut by the end of the year, but our own u.k. economist thinks that if anything, we could get an increase by the end of the year if you get that fiscal stimulus come through, and if the prospects of a really hard brexit seem to dim as we get closer to that trade agreement being agreed. in aof question marks, but way, the job is a little easier for the bank of england then anyone trying to trade the pound because i think, as we were hearing, a lot of the things that have been driving the pound

in the lead up to this election, where you even had upside possibility of remaining in the european union, now those have gone. it is a murkier picture with less upside for the pound. alix: are we also going to be in the same position in a year if we get some fiscal stimulus, but also the threat of reverting to ype trade agreement between the eu and the u.k.? haveanie: i think you also , remember, a big factor for any bank of england is not just what is going on in the u.k., but what is going on in the rest of the world. on the one hand, we have more optimistic view on the u.s.-china trade war, but we've also had words from bob lighthizer, the u.s. trade representative's, that europe may now be in for a trade war with the u.s.

that is going to make a big difference, what the global economy is like, and particularly how strong the european economy is going to be. stuart, you were talking about the volatility pricing in continued risk. there's moreike optimism priced in, or just more volatility? stuart: coming into the event, it was volatility. hopefully after the election there is a little more optimism priced in. the view from our economist is the first half looks a little better. second half, the risk starts to bubble up again. to your point earlier, the central banks have been touting this need to put consistently over the last six months. the economy looks ok, looks stable, but there are global growth risks or areas of uncertainty that we are going to cut to hedge against. our economists in the region may

boe tocted boh -- the have to go that route. samee are back into the playing by headlines game, unfortunately. alix: stephanie, you brought in the eu and u.s. trade. if there is continued ramp-up in oversight from the u.s. when it comes to, say, autos, how does that trickle down to the u.k. entered data, but also any power they may wield over the next year in negotiations? stephanie: i think the second part of your question is a little bit tougher. not sure there is a clear answer to that. on the first art, one of the things that has made brexit such an important decision for the u.k. is that the fortunes of the car industry, manufacturing in general, hugely dependent on what is going on in europe, and much more even the what the exchange rate is or even

what the tariff arrangements are. investment a hit to and confidence in the european car industry from andy kind of new onslaught from the u.s. on cars or in general against europe, i think that is going to be another negative for the u.k. industry, even without thinking about what are the arrangements four to be in two, three, years time. alix: do you have any insight on what has to happen for the boe to become more expansionary, like we have seen the fed have to do? stephanie: again, it comes down to what they are weighing. if you get much more of a fiscal stimulus coming from this government, given that it has room for that, room for more than it has in its own manifesto, then i think there

would be quite a high bar for a rate cut from the bank, especially when you think, and i was just having this conversation with our u.k. economist, if using about how brexit and a relatively narrow trade agreement could affect our potential growth rate, the bank of england can't just pump more into the economy if we are now going to grow more slowly because we have that different trade relationship, let's close with our most important trading partner. alix: do we learn anything about how to pricing risk and how to price in political headline risk? thert: i think what market has learned is which specific assets to go after. in the u.k., it has been domestic versus ftse 100 from an equity perspective. on a china trade thing, is it do emerging-market. i think the market, for a lot of

these risks that have been going on for so long now, 18 to 24 months plus, the market has a pretty good playbook of, when i get negative headlines on this event, i trade this asset. at about100 is trading a 20% discount to the msci world. they're so much uncertainty of what the exact right risk premium to assign is, but perhaps investors are saying at least i know i want to trade domestic u.k. equities relative k-x or something. year, equities have performed so very well that when the markets started to rally, people looked around at what are the value trades left. hong kong would fall into that. there's a lot of geopolitical risks there. the u.k. would fall into that. for a time, japan would have fallen into that. the question there is you have the confidence to pull the trigger and take on that exposure.

most investors wanted to be very cautious about taking event risk, especially in year-end. maybe after the calendar turns you will see people a little more brave adding into those markets. region,tegists in the if you have a lot of international sales, the boost of the pound really impacts what happens with the earnings. people really gravitated towards domestic u.k. stocks. alix: stephanie flanders of -- of bloomberg, thank you. stuart kaiser of ubs will be sticking with me. change in theno asset purchase program, and they don't have any read on the effect of the election. it is hard to take a real read when it comes to the gilt market. yields up almost five basis points, but that is in the midst

of a broader selloff. s&p futures holding on, despite the fact that bonds keep selling off and yields keep punching higher. also looking at crude a little bit weaker, and taking a look at the one central bank that actually raise rates, and what happened to that currency in the markets. this is bloomberg ♪ -- this is bloomberg. ♪

alix: time now for global exchange, where we bring you today's market moving news from all around the world, from hong kong to copenhagen to l.a. we want to begin in asia, where the bank of japan has left monetary policy unchanged as the government stimulus package is helping to brighten the outlook. >> to synergy effects of the

fiscal package in the bank of japan yield curve control are quite significant. i see this as a positive policy mix. alix: joining me on the phone from hong kong is and occur in -- is enda curran. what did you make of mr. kuroda be in positive, but not to positive? enda: on the one hand, we knew they would stay on hold. it is that fiscal stimulus coming through now from the government, and we know that the external story has picked up a little bit. we had the u.s.-china trade deal, and don't forget the brexit vote in the u.k., or at least election vote, that provided some clarity on brexit. i think people expected them to stay on hold, but mr. kuroda did say that the external risks are pretty significant, and said they will not hesitate to act again if needed. i feel the big question coming out of today's meeting was what would it take for them to act

again? a lot of people are saying keep an eye on the yen strength, and keep an eye on the global export story. if we don't see any pickup in global demand, they may be under pressure to add more support. alix: thank you so much. i want to stay with central banks now because sweden's risk rate, endingts key almost five years below zero. >> economic to elements in this country have been good for quite a number of years. growth numbers have been high for a number of years, and it was possible by going negative for us to get our inflation rate up close to or at our target of 2%. alix: join me from copenhagen is bloomberg nordic managing editor. walk me through the significance of getting out of the negative bound.

reporter: what's interesting here is they were just determined to get away from those negative rates, whatever it took, so to speak. you heard the governor saying that although the growth picture it, there is a bigger picture here. more have been begging for monetary policy -- a more normal monetary policy environment. the overall message continues to be extremely expansionary. they still have a bond purchase program that is going to continue until the end of 2020, and they have made clear that there are no more hikes for at least another year. we talked to a lot of the major pension funds here, and they say -0.25% or 0% doesn't make much difference for the curve. they are not getting much extra return. at this is a step in the right direction. alix: thank you very much. now we go to the u.k., where the

queen arrived in the house of lords to lay out the government agenda for the next year. joining me from london is to raise rafael -- is therese raphael. did we learn anything yet? queen's speech is written by the government, so we got a smorgasbord of policy from immigration reform, and trying environmental targets. the two big pillars of boris johnson's plan are brexit and health care. ns to pass his brexit deal through parliament tomorrow, but also to get a trade deal within 11 months. that is going to be challenging. it is possible, but it is likely to be a bare-bones deal.

on health care, he's promising an additional 3.4% of gdp spending per year, higher than previous tory governments, but lower than the last labour government. he has a big majority, a big agenda he is putting forward in this speech, but there are challenges ahead because he has to both deliver brexit and also deliver some tangible benefits for particularly the labour voters in the north that switched to the tory party in this election. alix: thank you so much. now we turn to earnings. shares of macron rising in premarket. the chipmaker reporting better-than-expected top and bottom line numbers for the fiscal first quarter, and strong numbers for the current quarter. --ng make is dani burger joining me is dani burger. give me a sense of what this means for the record rallies we seen. dani: you have to imagine we will see those chip stocks move even higher. the number is $4.8 billion in revenue.

that easily beat analyst expectations, but it wasn't just the numbers that were markle. it was the commentary from micron saying that the slowing demand had bottomed. a slew of analyst notes said that in asia, europe, and certainly the u.s., the overall chip industry is going to move on this news. this is something wall street had actually predicted. everyone from susquehanna to morgan stanley said the slump was overcome of these results confirm those suspicions. now we are seeing analysts like rbc, mizuho raise their price targets on micron. sois up about 3.5 percent or so far premarket, but it is definitely going to move higher considering the analyst commentary we had after their earnings. alix: thanks so much. finally, president trump is the third u.s. president in history to be impeached. the house charged him with abuse of power and obstruction of

congress. trump's acquittal in the republican-controlled senate is expected. pres. trump: this partisan impeachment is a political suicide march for the democrat party. have you see my polls in the last four weeks? alix: joining me from us come over tonight sixth, credit angeles, from los where tonight's sixth democratic debate will be taking place, is kevin cirilli. walk us through the debate and the rhetoric being spun. kevin: the timeline for the likely acquittal in the senate now in question this morning as house speaker need to below sea throwing the timeline into question -- house speaker nancy pelosi throwing the kind line into question by suggesting she might hold the articles of impeachment for an undisclosed period of time. senator mitch mcconnell saying he would like to announce when the trial will be by tomorrow,

so within the next 48 hours, we aren't is bating some more guidance on the timeline for when that timetable -- we are anticipating some more guidance on the timeline for when that timetable will occur. you heard from the president in michigan, taking this back onto the campaign trail. he feels emboldened by this, saying that virtually every republican standing by president trump supporting him. you mentioned the debate. the sixth democratic presidential debate here in los angeles, all of this long to becoming impeachment head on. how will the candidates react to that? it is the biggest unknown. look for breakout moments from senator amy klobuchar, who had a breakout moment during the kavanaugh hearing. she will also be in the senate for that trial, along with elizabeth warren, who has seen her poll numbers dip. elsewhere, joe biden versus bernie sanders, andrew yang back on the said age, and tom steyer -- back on the stage, and tom

steyer. ,thers who are not on the stage like cory booker, his team says they will air an ad during the debate. alix: and happy 20 year anniversary, mr. putin. it will be two decades since mr. putin took power in russia when boris yeltsin resigned. he's been either president or prime minister ever since. this is a live shot of vladimir putin answering questions from reporters. he skipped his speech about the economy, and there may be a reason why. over the last decade, living standards have stagnated and the future may not be that better. here is the imf forecast, the white line that turns into the blue line, showing the economy staying flat over the next four years. ministry morey optimistic, seeing growth at almost 4%. coming up on the program, boeing cut by moody's. we will take a look at the future of the embattled aircraft

maker, next. this is bloomberg. ♪

viviana: you are watching "bloomberg daybreak." amazon is getting prepared for brexit. bloomberg has learned the world's largest online retailer is looking for its first warehouse in ireland. it would fulfill orders currently shipped from the u.k. amazon would have a problem if the u.k. doesn't agreed on a trade deal that ensures the smooth movement of goods across the irish sea. tiffany's expecting its momentum in china to carry over to next year despite a weaker economy. we spoke with the ceo and shanghai. -- the ceo in shanghai. >> at least double digit growth for you in 2020 for the chinese market? >> i hope for that. viviana: because of protests in

hong kong, tiffany has seen a double-digit decline in sales. alix: here's another company to caught my eye this morning, and that is boeing. they are downgraded one notch by moody's because of uncertainty over when the 737 max is going to return to service. the grounding, if it runs into the second half of 2020, the credit rating could be downgraded again come up with the stock today is a little higher. is all of the bad news for now already baked into the stock? coming up on the program, much more of your morning trade and analysis on the markets in today's first take. today it is really about the global bond selloff. will we see 2% on the 10 year? this is bloomberg. ♪ what are you doing back there, junior?

since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of. he knows exactly where we're going. my whole body is a compass. oh boy...

the my account app makes today's xfinity customer service simple, easy, awesome. not my thing. alix: this is "bloomberg daybreak." u.s. equity futures pretty much going nowhere. i am watching technology stocks in europe after micron crushed yesterday with earnings.

german bund yield up by four basis points, now to -21. the twos-tens spread continues to steepen at 29 basis points. time now for bloomberg first take, where we give you the news. you get the trade analysis on of markets from our theme former traders and analysts. bonds lots of can ask selloff, where is the action in other asset classes. the 10 year?bout vincent: one of the first things i got from a trader in europe this morning is bring in my stock loss and take profit levels all the way in. don't carry anything into 20/20.

it makes no real sense. we are breaking it down. it's all over. alix: wow, that's great. [laughter] so am i not to take the move seriously when i see the 10 year on most at 2%? i think a lot of this is still a baruchel of the extern there still a reversal of the extreme nearly bearish sentiment -- still a reversal of the extraordinarily bearish sentiment. investors are getting pulled in, chasing the rally now. i have a sense that maybe sentiment is a little too optimistic edited to next year, and we are set up for at least modest disappointment, but does that dismantle all of the trends that emerge? not necessarily. i think we hit a turning point in august. timeere's a period of

where, for once, equities might be leading other assets, and some of those asset classes are getting pulled into this , pro-risk procyclical rally into year-end. alix: do you hedge here, though? i can only imagine we see a different outcome in the equity market. do you need to do something? stuart: i think a lot of traders , there's very little tolerance for any sort of drawdown. the vix on across asset basis, we see the vix a little bit rich relative to how it is being priced in you know other places. that could be indicative that you can kind of go away and enjoy the holidays. i don't think it's been aggressive. over the last month, we see much more called buying them we have seen put by an, but it wouldn't surprise me if people were trying to manage that risk,

especially after what happened last year. traders the chart shows cutting short positions for the third week. vincent: great point. if you're going to put on a hedge, let it all sort of fade nicely into the background, not really carrying anything into 2020. nice, soft risk environment, but a lot of range trading into the first order -- the first quarter. i think we stay with the idea of fading rallies, buying dips. i think we see mean reversion again into the first quarter. for the first quarter, i think it is kind of a safe bet. gina: let's not forget earnings season is right around the corner. you get into january and all of a sudden, we are going to see a

double-dip in earnings emerge. so the fourth quarter earnings season is not going to be particularly great. that offt of tipped yesterday with a negative tone. i think when you come into an environment in which stocks have rallied as much as they have and everybody is excited about the prospects for growth after some modest trade resolution, after strong monetary policy infusion, you are set up for just a modest amount of disappointment. stuart: i think that's probably the case. the seasonals are so strong into year end, nobody is going to fight that. it is low risk tolerance. let the market rally into year end, first couple weeks of next year. everyone will be pulling their trades for the first few weeks of 2020, and we get earnings, then data, then the fomc. that is when the risk and people really trying to understand the past the first quarter, and then of course we got the election. alix: so fast forward to january

12. earnings season starts to kick off. gina, you did a great piece on bloomberg intelligence talking about, are we in a fomo world. so my question is two-pronged. where are we seeing that within the equity markets, and where are we not? gina: there's no evidence whatsoever that there is a fear of missing out on equity gains. this is the sort of longer-term underpinning of the secular advance. when you're looking at long-term flows into equities, it is still nothing. there's just no exuberance or optimism evident, beyond the modest institutional development that developed over the last few months. even that is the minimus. there's no concern that there is a huge bubble of optimism that's developed on my part. i do think that you can trade around these margins, and in the short term we are overbought,

and there's a little bit too much excess in the institutional universe, but longer-term, you still have massive negative outflows for equities that are going to underpin this environment. vincent: i think that plays into what both of you were saying. we had modest resolution to some of the issues, but they really haven't gone away. the china trade situation is just the beginning of more things to come. i believe the president will to try andt rhetoric gain some support. we still have whether we are on january 31. for the u.k. to resolve a trade issue with europe and the last month is going to be next to impossible. we spoke about yesterday, 46% of the gdp for the u.k. is just not going to get resolved in that time. a lot of fun hurdles we are

going to have to deal with, and volatility is going to be down in the first quarter, but i think it's going to pick up aggressively going forward. stuart: to that point, don't get full by the low level of the vix. if we look at the shape of the curve structure, three or four months outcome of that volatility is still a pretty high level. the vix is low because realize volatility is low in markets rally. how they are pricing that risk premium out a few months is still elevated. it is easy to savory thing is all clear, but that is just looking at a very tactical picture. vincent: i couldn't agree more. alix: my worry is that everything you guys are saying makes complete sense, and that also, to me we are in for a weaker return here. next year we are just not going to see the returns we are used to. i think it depends on what you're used to. his 2019 what you're used to?

a return of something like 8% next year is completely conceivable and certainly possible, considering an environment where as long as earnings accelerate, you could easily get high single digit return. what would get 20%, 25%? highly unusual, highly unlikely considering the set up into this year is complete opposite the set up coming into 2019. i think it depends on, when you say what is the usual what is our expectation, but to us, sigel digit return is most likely your base case scenario next year. stuart: and that 25% wouldn't look like 25% if we hadn't gotten hammered in late december of last year. vincent: it's totally about where you're coming from. from december 2018, you almost had to go up. 2020 is going to be an interesting year in terms of earnings and profitability, and

we are going to see where the consumer is. consumer number so far have been soft. it is going to be interesting to see what they are and whether they give us a bump into next year, and whether or not we borrow growth from the first tariffs,moving the ripping up inventories. it is not looking that rosy for the first quarter. that's why i thing we have this fade back and forth. alix: whatever. i was in target yesterday and it was horrible. . [laughter] thank you very much. a reminder, any charts we use throughout the program, go to gtv on your terminal, browse the features and check it out. gtv . now viviana hurtado is here was first word news. viviana: we begin with the impeachment drama. u.s. --r, the

yesterday, the u.s. house impeaching president trump on two counts. devote making mr. trump only the third u.s. president to be impeached. ease expected to be acquitted in the republican-controlled senate. has beenof obamacare thrown back into limbo. federal appeals court ruling a key piece of the affordable care act is unconstitutional. final resolution probably won't come before next year's election. -- tomorrow, nasa facing a major test. it is set to launch boeing's star liner space capsule into orbit. then it returns to earth. if all goes well, next year as i could resume man flights. those would be the first since the space shuttle program ended in 2011. 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. i'm viviana hurtado. this is bloomberg. alix: thanks so much. coming up, california's diversity victory. a state law allows companies to add more women to their boards. we will stick with carla harris, morgan hanley vice-chairman -- we will speak wit carla harris, morgan stanley vice-chairman. plus, the performance helping children this holiday season is pretty spectacular. this is bloomberg. ♪

alix: we turn now to women of wall street, where we feature

women shaping the world of finance. today we are looking at women on executive boards. last year, california enacted a law requiring companies to have a minimum number of women on their boards, and it worked. harris,me now is carla morgan stanley vice-chairman and head of multicultural plant strategy group -- multicultural client strategy group. carla, happy holidays. thanks for joining us. carla: happy holidays to you, and thanks for having me again. alix: do you think the best way to go about getting diversity on boards? carla: i won't say it is necessarily the best way, but it is effective. it is mandated as more than a goal, and people are going to drive for that. early it has been effective. alix: as i was reading that, on one hand, my pride says i want

to be on the board because i'm a good board member. the other says take it wherever you can get it from and then prove you are awesome. can you walk me through how you think of something that? carla: the former sentiment i would say is not warranted because no one is going to put you on a board just because you are a woman. you are going to get on that board because you are an expert in your field, you are a great strategist, and you will get along well with that board and be able to get to effective solutions. you are being chosen, make a mistake. but having the mandate will certainly help people to go outside of what is easy and familiar. we are all trying to do something quick, we go to what is familiar. you won't necessarily think to going to the person you know or the person you play golf with. i think it is effective in having people broaden their thinking, but you are not getting on unless you are outstanding. alix: thank you for that. some of the pushback in that sense has been you haven't

served on a board at all, so all of these people now on boards who haven't done that work. you've done a lot of work with vc's with morgan stanley. how do you think about that? you might not have a track record as a venture capitalist or tech startup, but it is ok because? carla: everybody has to start somewhere. everyone has their first board. second, there's certainly organizations that will train you and prep you on how to be an effective board member, not to mention all of the great economic programs focused just on helping you think about who you should be as a board director. the second thing is that when i thing about all of the early stage companies, they really do need very seasoned executives who have seen several cycles, who have also had experience in advising boards in the case of investment banking, for example, and who have built cultures before. i think that seasoned executives have a very important role to play on emerging companies

today. alix: stay with the vc world for a while. morgan stanley has a multicultural examination lab. the success about rate that you have seen, like return on female startups versus multicultural startups? carla: a lot of data shows that female entrepreneurs and female led companies and multicultural led companies has either performed on par with the broader set or have outperformed. i think now because of what we are doing with the multicultural innovation lab, and we have the podcast access and opportunity, we are raising this is a real commercial opportunity. we had standing room only for a different class of investors. we had regular wave, traditional venture capitalist, corporate vc's, high net worth individuals, and institutions looking for strategic investment. we counted $6.9 billion of dry

powder in the room, which is an amazing opportunity for those early-stage companies who would never have this kind of exposure in one shot to these investors. alix: is that different from the last two years you've done it? carla: it has grown tremendously. 150, lastyear we had year about 100, and this year we had an overflow room. to have that amount of capital, it probably was 2x what we had last year. alix: what is the success rate? we just showed some pie charts. some don't know yet. it is too early. what do you notice from these companies that have been able to get the capital on the run? carla: our first class is now two years old. two companies have been sold out of that. another went to a very prestigious accelerator, a corporate accelerator, where that corporation put in 2x the amount of money that morgan stanley did. another went to a very

successful ipo, and other has raised one of the top fundraisers of african american entrepreneurs. with last year's companies, we had a few more that they have raised almost $20 million collectively between second and third class. alix: i don't want to let you leave without talking about holiday in harlem, the concert at the apollo you put on tuesday night. you're still recovering. were you always a gospel singer in your career? i've got notes in your career, like come up be like this woman. what do you think about that? alix: i will tell you, that i think your authenticity is your distinct advantage. i fell into that trap the first couple of years. don't tell anybody you can sing. over time, people started to figure out, and i was singing happy birthday all over the capital markets whenever it was somebody with -- it was

somebody's birthday. this is the second year that morgan stanley sponsored this concert on the morgan stanley children's hospital in upper harlem. raised goesroceeds to the hospital. prior to this i did five carnegie hall concert where all of the proceeds went to a better chance out in jacksonville, florida. it is a privilege and an honor to be able to use the other side of who you are to help other people. but certainly as a business executive, you can write a check, build a board, but to use another part of your god-given talent to be able to help other people, and to do it with your morgan stanley colleagues -- alix: all of the singers are for morgan stanley? how did you do that? carla: we said, if you want to be in the show, send us 30 seconds of using your favorite holiday song. a few of my colleagues and i looked at it, and we picked the

singers who were in their last year, and we added seven more singers this year. alix: no kidding? that is some serious workplace experience. carla harris, always great to see that concert. happy holidays. carla: happy holidays to you. alix: coming up, the pound set to weaken in 2020. that is coming up in today's trader's take. if you are jumping into your car, tune into bloomberg radio on sirius xm channel 119 and on the bloomberg business app. this is bloomberg. ♪

alix: time now for trader's take. joining me is vincent cignarella, voice of the bloomberg audio squawk. not saying -- not singing, but nonetheless. vincent: not going to do it. [laughter] alix: you're looking at cable rates. what do you see? vincent: this is right at the level we predicted. the real short term on a one

month basis support comes in at one dollar 36. if you feel long sterling and you're looking at this line, don't panic yet. longer-term, looking into 20/20, the prospects for the u.k. 2020, the into prospects for the u.k. economy -- to be ovi -- the boe is going to be in a corner. i think we see the pound trade back into $1.2705. ,lix: coming up, peter tchir academy securities head of microstrategy, and diana amoa, jp morgan senior portfolio manager, will be joining us. 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! it's called the internet. some things haven't.

get ready for a reunion 3 million light years in the making. woohoo! -yeah! ♪ alix: come to "bloomberg daybreak" on this thursday,

december 19th. here's everything you need to know at this hour. let's take it from the top. >> the synergy effects of the fiscal package and the bank of japan yield curve control are quite significant. kuroda did say that the external risks are pretty significant, and said they will not hesitate to act again if needed. i think the big question was what will it take for them to act again. alix: domestic demand will be supported by active government spending. >> something of a historic moment because this is a interbank that has been at fair minting with negative interest rates deciding not to be in negative interest rate territory anymore. here iss interesting they were determined to get a -- to get away from negative rates. overall growth was solid, but

inflation wasn't at the target and growth has been slowing down. alix: the bank will keep rates at zero for years to come. the bank of england keeps rates on hold as brexit moves into the next stage. >> in the first half of the year, you get a bit of confidence and sentiment balance from the u.k. election. alix: the queen arrives at the house of lords to lay out the government agenda for the next year. ofwe got a smorgasbord policies, many of which were trailed from the campaign, everything from immigration reform, new sentencing guideline, and trying environmental targets -- guideline, enshrining environmental policy and law, etc. alix: the u.s. house impeaches president donald trump in a historic vote that leaves the country divided. kevin: president trump taking

this back onto the campaign trail. he feels emboldened by this, saying that virtually every republican standing by president trump and supporting him. alix: the senate which will likely acquit the president will hold a trial next year. in the markets, the global bond selloff continues, but equities really take it in stride. s&p futures slipping into negative territory, just by about two points. i did want to highlight what is happening with euro and what is happening with sweden. you get off the negative bound and wind up see the curried city go nowhere -- wind up seeing the currency go nowhere. central-bankry of decisions today. we got the boj, the riksbank, the boe, as well as norway. joining me as peter tchir, academy securities head of microstrategy -- of macro strategy, and diana amoa, jp morgan asset management senior portfolio entity. why does no one care? peter: i think they will start

to care. equities have not done particularly well. i think higher yields are going to impact that. people have been to bullish on bullish.s, too i hate negative rates. i think we are going to get a little more growth. using long dated treasuries as a hedge, think that is going to be a bad decision. diana: i see it more as a pause in easing. we come from a period of having very bad growth across the globe, and things are starting to look like they may be bottoming out. i think central banks are being prudent in taking a wait and see approach. we are not bearish on bonds. we think for longtime investors, having duration still makes sense. that so for you, you feel investors are too much into safety and too much into the

long end. diana, you think we will get some kind of central bank easing or support and have a portfolio mix for the long end. is that right? ther: yeah, and one of trends we saw was people developing 60-40 funds, people deciding they want to own long dated treasuries come along dated bonds, i think that really pushed yields down in august. lot i look at etf flows, a has gone into fixed income, but a disproportional amount has gone into that sector. as we crossed 2%, i think we could get to 2.25% pretty quickly only tens. it will mostly been unwind to safety. --a: i would be dying that i would be buying that dip. there are still concerns that risks remain elevated. they are not accelerating as they were last year, but still fairly heightened. still have a bit of a cushion,

even as you add risk, may be because you expect more basically go bounce. having that portfolio with a bit of production coming through makes sense. alix: how much of that is just protection versus you actively want to allocate because things are going to get much worse come out were worse, or just not get the pickup we are looking for? diana: i would say there is an element of we still want protection because we still haven't signed a trade deal. we know there is something being discussed that might be signed at some point in the start of next year, but until we see that paper being signed, i think the markets will remain a little bit more cautious. ultimately, past the election next year, we may see a ratcheting up in tencent's -- in tensions. we still have to see what kind they negotiate, and the government seems committed to delivering a hard brexit. those risks are not going away, and we think that having the

production makes sense. peter: i tend to be a little more optimistic for the next quarter. i think betrayed uncertainty going away is going to be helpful. i'm also really looking for this to be driven out of europe as well. i think lagarde is going to be successful pushing for some sort of green stimulus package. bunds have been leading this move to higher yield. i think they've got a lot more room to fall, so we would get dragged more here domestically. that is going to be the surprise story from the positive side, this traction i think lagarde will get in terms of pushing europe towards fiscal stimulus on green energy. alix: we did see today that germany is going to issue green bonds, and there is some conversation from economists that you could get over and kind of avert not having fiscal deficit if you do it in a green way. using it will be material enough? you are laughing. [laughter] peter: no, europe is always great about having rules and figuring ways that are convenient to get around the rules. we have seen that throughout this entire crisis.

it makes sense to me that germany is basically going to acquiesce, we see some sort of green fiscal stimulus. i think france needs stimulus as bad as spain and italy. if you don't grow economically, you're going to have countries leave. brexit, that was a big part of it. if they do this to make sure the euro can stay together, i think that pushes global yields higher, at least in the short term. alix: what are you thing about that? if you wind up getting fiscal in some capacity, do you think that is enough to change your thesis a bit? diana: don't get me wrong, i'm not bearish. i think there's still heightened risks. that's where i'm coming from. come from a very bad 2019. things are looking better going into 2020, and adding risk in portfolios makes sense, but you still need protection. that's what we are thinking about managing risks into 2020. we acknowledge that central

banks having cut rates and provided support to the global economy, we will see that playing out in the first quarter, but you still want to have protection because the risks are still fairly elevated. alix: what does it mean for corporate? bruce richards of marathon asset management spoke to bloomberg yesterday about what he is thinking about the corporate credit market. >> high yield will struggle to make a 5% coupon. certainly no tightening from here. we think rates can inch higher, not lower. we think you get very little duration boost. priced thatly prices are trading call price, which means essentially, the prices can't move higher or the bonds will be called. alix: what do you think? peter: i think credit is going to define again next year. alix: tighter? peter: a little bit. i think energy got hit pretty hard this year. we are just starting to see a catch-up. autos, some of the cyclicals. if anything, i think we see the

laggards outperform where you see that spread contraction. some of thedits, leverage loans that have problems, they are not performing well, and that's good. i think it is a healthy market. i see reasonably well thought out spreads, and i think it could go a little tighter if yields push higher. diana: i think it will be hard to repeat this year's performance. coming into 2020 with valuations looking quite stretched and some of the sectors. however, where we do see opportunities is in emerging markets. they have not performed to the extent you would expect, particularly when you look at local currencies. em has been lagging because the stresses with china, some of the risk coming through from the fed having been hiking quite aggressively. if we see the cyclical rebound we are talking about here, that is where we see a lot more upside. not necessarily perish from anyit, but we don't see

logical was left. peter: where there is still a little bit of yield, i think that's where the performance comes from. alix: there's been lots of talk about you want to upgrade to ccc, bb to aa, is there a difference? peter: what has some value there? what are people scared to own? it is very tricky. energy was a tough one this year. every time you nibbled, it did worse. i thinking -- i'm thinking we are kind of developed there. i think i would move a little bit more to underweight my allocation as a whole, but overweight to some of the higher beta names. alix: we will dive back in in just a second. peter tchir of academy securities and diana amoa of jp morgan are staying with me. we want to highlight some breaking news from dow jones.

goldman sachs is reportedly set the 1mdb probein and agree to ongoing oversight of its compliance procedures in order to resolve the criminal investigation. our analysts at bloomberg intelligence has pointed out a guilty plea would have negative consequences beyond a fine. it would also need to get waivers from the u.s. labor department to manage pension tc to issuefrom the f securities. we will have more on this as the news comes out. this is bloomberg. ♪

viviana: you're watching "bloomberg daybreak." amazon is getting prepared for brexit. bloomberg has learned the

world's largest online retailer is looking for its first warehouse in ireland. it would be used to fulfill orders currently shipped from the u.k.. amazon would have a problem with the u.k. doesn't agree on a trade deal that would ensure the smooth movement of goods across the irish sea. former worldcom ceo bernard ebbers has won early release from prison. part of a sentence for fraud. he orchestrated an $11 billion accounting scam that bankrupted the company. a judge says his health is failing. the u.s. securities and exchange commission may make it easier for americans to get in on early on companies that become the next big thing. the flipside, you could also lose big. regulators are considering expanding the number of people who can invest in private security offerings, hedge funds, and private equity funds. some investors would be allowed to skip the current income and wealth threshold. that is your bloomberg business flash.

alix: still with me, peter tchir of academy securities and diana amoa of jp morgan asset management. we still have all this money coming into private assets. in your world, where is there too much money? diana: money market funds. [laughter] alix: do you see an outflow next year? diana: i think the expectation is that we will see a global growth rebound taking place or playing out in the first half of the year. have been worried about the outlook to the global , looking where we can get a bit more of a pickup. that for me is one of the reasons why, despite still keeping an eye on the risks on the horizon, we are more positive on risk into the first half of the year. peter: i spent a lot of time thinking about where bubbles will be, and to me it has to be in a safe asset because for me, it is the banking system, and

people tend to use leverage. then you moved on and it was long-term capital in russia. people didn't think sovereigns defaulted. 2008 to me was all about the aaa mortgage product, so i don't know what safe asset is out there. i am not seeing a bubble, but it is not going to be leverage loans or any of these "obvious" things. people are concerned about risk there, so i'm looking beyond that. segments of the commercial real estate market. maybe a bit of private equity, where you've had some of these things go on that everyone now views as so safe. maybe that's where the excesses are. alix: and you see the ftc expanding where people can invest, too. if you see outflows, what does that do to the repo market? does that mean the fed is going to keep buying more and more? diana: i think the fed is more attuned to potential stresses in the repo market, so i waited to

see this year, but i think they will be more proactive. i think your point on the private markets is key. on the private credit side, we've been reading more and more about deterioration on low covenants there. i think that could be another area. it's a mist of the high risk, where liquidity has been pumped, but also on the short end of things. alix: peter tchir of academy securities and diana amoa of jp morgan asset management, you're sticking with me. coming up, we are going to talk renewable investing with david giordano come up blackrock global head of her knowable giordano, blackrock global head of renewable power. this is bloomberg. ♪

alix: sustainably themed investing is quite a big focus now among investment firms. more money managers are using esg to ident high risk.

giordano, is david blackrock global head of renewable power. they have invested in more than 250 wind and solar projects globally. in 2011, no one probably cared about what you're doing that much, right? so how's the market changed in the last eight years? david: i hope some people cared. [laughter] alix: blackrock cared. david: absolutely. ofr the last five years, 30% all infrastructure investments have been in renewable power. it's been a really fast growing area. at the time, it was a little newer. european institutional investors were more focused on it than other parts of the world, but it is really over the last eight years that it has grown exponentially in terms of interest and activity. alix: where do you see

opportunity? right now you're raising a third global fund. what is the target? raised over $1 billion for this fund. it is really on the back of investor interest and opportunities. as we are investing primarily in oecd countries, we are excited about the asia-pacific region. there's a lot of really interesting opportunities there. in the united states, there's always big demand for capital in renewable power. we are seeing this at all inns of the spectrum. offshore wind is starting to get some traction. also, the commercial industrial, kind of behind the meter solar. battery storage is something we expect a lot more activity in in the u.s. alix: how has the price going up for all of these investments now that it is becoming much more trendy to talk about and invest in? david: we have certainly seen return expectations come down,

and therefore asset prices going up, because investors are much more comfortable with the maturity and sophistication of the technology, and also the majority and sophistication of the markets, and just the financing structures that go into the projects. we are seeing some convergence. some might argue that the projects still have room to converge further. solar in particular is viewed as very low risk by investors. alix: what is the right way to look at it? are we seeing money come in that once a quicker return, looking at a lifecycle of five-year versus your expertise? walk me through the distinctions you are noticing in the market. david: if you think about the sectors and go venture capital, private equity infrastructure asset investing, that is really technology play. that is folks think about next-generation technologies in this space, so we have a shorter life cycle for that investment.

in the private equity bucket, opportunistic, i think there at the development and -- there you will see folks at the development end. not focusing on current yield, but having the opportunity to flip into the asset level itself. what's attractive about that is i think you've got an uncorrelated yield, and you still have a total return opportunity as those assets mature. to become further de-risk. you optimize the assets and are able to go to super court investors. alix: what is the maxi want to raise for these latest -- what is the maximum you want to raise for this latest investment? david: as we look over the landscape, anywhere from 2.5 billion dollars to $3 billion we think would be very comfortable to invest over a five-year cycle. what you don't want to do is

have too much capital, where you are forced to just deploy capital in a timeframe as the market shifts and changes. we feel very comfortable in that range. alix: europe is, by anyone's standards, farther along than anyone else. what is the best opportunity in europe, if there's any left? david: there's still a lot of activity there. we have not see massive penetration at the distribution level. again, commercial industrial solar, behind the meter, whether it is ground mounted or roof mounted. battery storage along with solar to deal with intermittency, and offshore. there is still a lot of opportunity offshore, and that's a very mature market in europe. they have the infrastructure in place to build and maintain those assets. that is another place where we will see a lot of growth. alix: a little offshore wind in europe, then battery storage for the u.s. i'm just summarizing. what about asia? everyone talks about china. where do you see the best value?

oecd, we are focused on non-china asia. we have a number of assets in japan. we have made some really interesting investment in taiwan. we think south korea is also going to be a market that has really oriented itself towards the energy transition and towards renewable power, and we think there will be opportunities there. alix: do you need governments to make these investments? david: it is an interesting the quic -- an interesting question as we are talking to investors out there. renewable power at this stage in the cycle is winning because it is the most economic new power generation technology available to the grid. ,t is sort of almost period full stop at that point. we still need to think about policy at the local level.

there are still places where policy really matters. economicind of a pure basis, across the globe, renewable power is the most competitive new power. alix: david, thank you so much. i really enjoyed catching up with you. eva giordano of blackrock. blackrock.ordano in the markets, equities kind of go nowhere. it is really about the bond market, with yields moving higher. in germany, -22 basis points for the 10 year. the curve continues to steepen in the u.s., topping its highest level so far this year. other asset classes not seeing a lot of movement despite central banks stepping back from the market. this is bloomberg. ♪

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every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. alix: this is "bloomberg daybreak." i am alix steel. few seconds away from initial jobless claims report for last week. not a lot of movement. it aftern just crushed

earnings yet -- mike braun -- micron crushed it. yields moving higher in germany. it feels like a big victory in germany. the curve steepen's in the u.s.. 29 basis points. jobless claims dropping right now. filed for initial jobless claims last week. that is higher than estimated but still in line, and continuing claims around the average, one point 7 million individuals. still with me is peter tchir and diana amoa of jp morgan asset management. is the u.s. economy going to do as well this year relative to other parts of the world? peter: i think it will lag. we got a nice bounce off of the trade news, but i think the 2020 elections will hold us back. i think we are also due for

trade headlines that might be negative in q1 and q2. i think it will be europe and emerging markets that can take the mantle of growth. alix: the philly fed index coming out for december. yuck. that is what i'm going to say. a lot of that with the trades, what if we get a rebound in the trade headlines? new orders not bad, but the overall index .3, well below what we saw in the previous month. the prices moving higher, but the employment index wound up coming in weaker. u.s. ors it going to be is the growth going to be elsewhere? diana: i think the u.s. economy will be growing slower than it , somewhat below 2%. it will be slowing down relative to where we are coming from. not really a recession or a concern but i think that is the broad market expectation.

we are keeping an ion jobless claims. that will be the first indication there'll be stress coming through to the consumer. that has been the sector of the economy holding things up this cycle. we think the outlook for the rest of the world does look more positive. u.s., the marginal improvement will be coming from emerging markets. when is it time to buy? peter: i don't mind them, but i find that market more technical. i think it is an interesting idea because there is the potential for growth and inflation. alix: he just want to do it on the margin? commodities more associated with the global economy, oil, energy, copper, that is where there is more upside into me it is more obvious how that comes about that on the tips market.

there similarly, although is something to be said owning something when no one is talking anything at all about the possibility of inflation coming back. usually the tips prices have already repriced. i am open to the idea of having some protection on an up shooting inflation, but it is not our core scenario. we think inflation will be around 2% next year. alix: wanting to go on a date with someone, you're like not really, but i am open to it. i want to ask what you thought about the conversation i had with david year dano -- david geordano over at blackrock. what is a green bond? peter: there are a lot of issues defining it. what percent of a company can be green? having said that, we are starting to talk to our clients about being overweight green

bonds. it feels like the amount of supply will lag demand, so i think you will seek reebonz -- green bonds trade much tighter than regular bonds. i think you're supposed to load up ahead of it, close your eyes, and hope the questions get resolved. there is more and more demand coming into that space. if you own them now, you will see the spread tighten. diana: broadly speaking, the idea of sustainability in investing is something we are interested in and our clients are interested in. a shameless plug, we just launched our sustainable global growth fund at jp morgan which has seen significant client interest. there is definitely something there. investors are looking more and more at ways of delivering returns to clients in ways that are more sustainable. and that sort of environment the demand for green bonds will only be growing. alix: a quick update on what is making headlines outside the business world. viviana hurtado is here with

first word news. viviana: the next act in the impeachment drama will be a trial in the u.s. senate early next year. last night the u.s. house impeached president trump on charges of abuse of power and obstructing congress. the measure had the support of almost all democrats, but no republicans. the measure made mr. trump only the third u.s. president to be impeached. he is expected to be acquitted in the senate. next year germany will turn some of its european peers in selling green bonds. the german government needs financing help to meet climate change targets. authorities say the agreed bond issuance will have a supporting role. it will not increase that debt. china has come to the rescue of one of its struggling original banks. it will cost $14 billion to bail -- beijing is trying to restore confidence in its vast network of rural and regional banks.

the first bank seizure and more than 29 years. 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. i am viviana hurtado. this is bloomberg. alix: peter and diana are still with me. i want to get your take on china. every day i hear more defaults in different regions. what you think is happening? how do you want to position? diana: the thing we have to keep in mind is default rates are lifting but from a low base. policyo trade war, the shift was more towards delivering the economy and there was an understanding default rates would be rising as a result. policymakers were willing to let that adjustment happen. we still see that playing out. this has been something we've been talking about for the better part of three years that default rates in china were too low. the state was supporting

entities that were not economically viable. as a longer-term theme, we are not too concerned because we think you need to see that shaking out so the stronger entities are what is left to be invested in. peter: i would agree. we are not particularly worried about china. one of the reasons driving our view we get some sort of a trade deal is the chinese economy needs support as well. they have problems and they have much less ability to let things get bad. i think china is advised to move along. that is why i view we will get some sort of trade agreement. alix: if you have the banks keep borrowing to bind up -- to wind up repaying their old debt, is there a way to prop it up in the meantime before we have that burst? peter: maybe elsewhere in asia. in china, you're supposed to be looking at some of the sovereign debt included in the industries

-- included in the indices. i expect china will start issuing more at the sovereign level. i think you could see those bonds doing well because of the inclusion in the indices, which is just starting. diana: i agree. chinese sovereign bonds become more of a structural theme. when you look at how investors are looking into em, the global indices outside the u.s., and emerging markets are percentage , and ag from 8% to 13% lot of investors are nowhere near that number. realign to bewill a neutral dear benchmark, and on the corporate side i think there is some value when you look at the dollar space in high-yield. chinese real estate. but as the -- but it is a name by name basis. this is why having your credit analysis pays off. withouts --

distinguishing not all companies are equal. we are looking at it at a sector by sector, name by name basis. alix: great conversations. appreciate it. peter tchir of academy securities and diana amoa of jp morgan asset management. happy holidays. coming up, we will take a look at the health of the industrial sector. -- this isk to bloomberg. ♪

viviana: i am viviana hurtado with your bloomberg business flash. willan sachs reportedly

pay a multibillion dollar fine in the malaysian fund scandal. jones, goldmanw sachs would also agree to oversight of the compliance procedure. goldman has been accused of ignoring warning signs while ilion's of dollars were looted from its clients malaysian government fund 1mdb. moody's downgraded boeing by one notch. it is now four levels above speculative grade. this is due to uncertainty over when it's best-selling jet will return to service. been march the 737 jet has grounded after two fatal crashes. if the crash goes into the second half of 2020, boeing could be downgraded again. brookfield asset management is considering building its assets in india into a real estate fund. sources say the asset manager help discussions on a potential ipo for property trust.

it could raise more than $1 billion. i am viviana hurtado and that is your bloomberg business flash. alix: time for bottom line. we will look at companies worth watching. today we have a special guest, nick pinchuk, snap-on manager and ceo. snap-on manufacturers tools and equipment for various industries with over 1000 employees around the world. also joining me is brooke sutherland. talking to you about the view from the c-suite. how are we doing? nick: you think about today, holidays are coming, skywalker is rising. i am going. we want to see what happens with rey. for me, the action with tariffs makes it more positive. that changes the national association of manufacturers who have been involved are very positive about this. the tariffs, you can talk about

what we did not get and got, but in reality this is a binary change. people could have thought this could be a negative. for me, i think it is some kind of confidence builder in the current strategy. the administration started out by saying we will split commercial consideration in tariffs from strategic. that is the way we went forward. and doing a commercial deal i'm worried about american jobs when the congress denounced china over the hong kong protesters, i was worried. a lot of people were they were coming together and making it more difficult to do a deal. it is now clear they can walk and chew gum at the same time. brooke: what does the coverage look like -- what does the recovery look like? the trajectory from here, it has been a shallow downturn, so you see that much upside? nick: i have been in the job

more than a decade so i do not know what a normal one looks like. they are all different. i think we are seeing some positives. from our perspective, we see the overall market being strong. we repair cars and cars get more complex. the customers we have need implements, the kind of implements we make, based on data or hand tools, to attack that complexity. we are investing in this going forward. we do not give guidance, so maybe this quarter will be boom or not necessarily. we see the upward trend in the american market positively. the american market, in our quarter, was up fairly strongly. mid single digits. europe was down. we see europe coming off the bubble and the u.s. pretty strong. brooke: you have disappointing organic sales growth in your tools group. is that mostly international? wek: last quarter, generally

have seen the comeback of the u.s. market and international. part of it is you have to know the characteristics of our business. the second-biggest market is the u.k. techniciansich are are saying i do not want to invest in long payback items. i want to keep short-term. that tends to give a downturn. that is overhanging that business. the other side of the business is we sell through franchisees, one-on-one sales, direct sales to the end user. as the product gets more complex, that is a capacity issue. you have to get more time to sell them and aid to front line sales in terms of training and capabilities to sell those complicated products. wield 130r laptops billion record databases and i have to explain that to the technician. this is a great thing for us because the best salesman is up close and personal, the best demand for our product is when

the cars get more complex, but .t does not trade on capacity brooke: you worry about the financial health of your franchisees? nick: right now they seem to be financially more healthy than we have ever seen. i lived through the worst recession of my lifetime, when people were saying we ought to put money into mattresses in 2009, people worried about the ongoing capability of our system, and yet we did not have problems. alix: for next year in terms of the labor market, will you be hiring and raising wages? brooke: -- nick: we have raged -- we've we have raged raised wages 3% every year since the recession. we are hiring right now because we need the capacity to support complexity. we just opened a new headquarters in california for our software business that supports that complexity.

alix: how is it like to find workers? nick: it is a difficult thing. it is where the manufacturers have difficulty. i like to think people like to work at snap-on. people gravitate toward us. haseneral, manufacturing 500,000 jobs going vacant. the difficulty is we do not train them correctly, it is more difficult to train, manufacturers and can unity colleges -- manufacturers and community colleges have to get together. many people see manufacturing jobs ofthe consolation our economy. brooke: do feel like you're competing for jobs with other industries? nick: sure. snap-on with our brand name is ok. , 270,000anufacturers

are having trouble finding people. 90% of americans say manufacturing is essential for our future but only 30% would say they want their children to be in it. keep yourh the jobs family warm and safe and dry and give you pride and dignity. alix: what is the biggest single risk to your business? nick: a lot of people asked me what keeps me up at night. i said espn. i got fired over that once. the manufacturers say the one thing that is difficult is to find skilled labor. that is the number one thing they worry about. the second thing is the trade war. the trade war has gotten better, not fixed, but the idea of reducing some of the tariffs and getting more access to the chinese market, which is huge, and is the real reason to have the trade war in the first place makes people feel better. brooke: do you feel like the

trade deal gives you that access? nick: we don't know. year. asia six times a i just came back and i think the trade war will be viewed positively, or the action will be viewed positively. if you read the south china morning post, they look positively. it is a binary. it looked like they were diverging. now they seem to have come together. directionally, this is a positive. not everything will be fixed. alix: love having you back. appreciate it. nick pinchuk of snap-on and brooke sutherland, thank you very much. coming up, mike braun is gaining in -- micron is gaining in premarket. we will look at potential resistance in technically speaking. if you're jumping into your car, tune into bloomberg radio, sirius xm channel 119 on the

bloomberg business app. this is bloomberg. ♪

alix: time for technically speaking, where you get traits for the morning. bill maloney joints me now. you can listen to bill all the .n squa theon crushed it good bill: report gave a strong outlook. june,end is higher since but look for resistance around 56. that is a retracement of this move. if they cannot get above 56, maybe 62, which takes you back to march of 2018, but 56 is your first year resistance. alix: next you're looking at johnson & johnson. not moving in premarket an upgrade over barclays. bill: little change in the premarket. price target 173, but it has to get through this key level, which is 145 which dates back to

the selloff last september when it plunged on the asbestos in baby powder. above 140 five you're looking at the all-time high of 149, but it has to get above 145. the -- let'snd on end on the 10 year. bill: setting up for a bullish pattern. the trend is higher. you have some resistance at 195 to 197, but it has formed an aesthetic triangle and that is a bullish pattern above that 2%. alix: thanks a lot. phil maloney joining us. that does it for "bloomberg daybreak america's." coming up, mike wilson, equity strategist. this is bloomberg. ♪

jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪

jonathan: coming up, treasuries lower. the curve hitting the steepest level since 2019. sweden central bank developing its negative experiment with rates. donald trump becoming third president in to be impeached. with 30 minutes until the opening bell, good morning. here is your thursday morning price action. equity futures come in .1% on the s&p 500, down three points. foreign-exchange unchanged. euro-dollar 1.1114. yields 1.93 on the u.s. 10 year. we begin with the big issue. a different risk going into 2020. >> one of the things the market is not position for, a big surprise and the upside. >> everything going right. >> it has to be about profits. >> you catch a lot of people by surprise. >> new all-time highs. >> could continue into q1. >>