you like but unemployment feels low. average ar hourly earnings going up. romaine: speaking of sentiment, 3200 on the s&p 500. a psychological barrier. broken through that. another record high. you looking at the dow jones industrial average and the nasdaq. scarlett: we are looking at 11% gain on the nasdaq. the s&p up 27%. higher thanhtly average. for the nasdaq, 70% above the 20 day average, unusual given this is higher. romaine: a lot of trading on the week that usually sees a drop off in volume. dayn the rsi for the 14 rsi. a lot of folks looking forward to 2020 at some of those pe

ratios. scarlet: the russell 2000 only behind a third of 1%. i thought this was opposed to be the moment for small caps. romaine: the patient, grasshopper. deeper. let's dive taylor, what you're watching. taylor: i am taking a look at the yield curve. take a look at the 210 spread, really steepening. this is only a week after the fed meeting last week. the steepest yield curve we have had since january 2018. up 10 basis points. those inflation expectations early rising as the 10 year approaches to percent. -- approaches 2%. sheet of $4lance trillion on the pink line. mike wilson at morgan stanley says this is the biggest non-qe

qe program he has seen. pushing this economic expansion even further. >> i will shift over to prepaid debit card green.. -- green dot. is company sites that citi saying competition investments and new product launches have set up 2020 as a difficult to navigate year. now, this eminent leadership transition may suggest downside risk. this was after the ceo and cfo quit the company unexpectedly. this would add to the more than 70% value the stock has already lost so far this year. will forgive a bad pun, there is a bull market in cattle futures. cattle has rallied about 20% since its low in early

september. it is not an easy market for people to speculate in if you are not a commodities trader. leslie patton reporting today chipotle, shake shack, and other restaurant chains are bracing for more expensive beef next year. remember, restaurants are also dealing with higher wages. advisory group is saying restaurants could be on course for the stiffest margin pressure they have seen for five years. at chipotle stop, it is almost double this year. shake shack is down almost 40% of its high for the year. mcdonald's is down 10% from its highs. i would point out that most of the highs for these restaurant stocks came around the time in

early september the cattle futures bottomed. definitely an inverse correlation. romaine: good stuff from mike and everyone else. schmidt ands, susan rachel. susan, it has been a phenomenal year. i think technology, the discretionary stocks and financials have led the way. are we going to get the same kind of leadership from them in 2020? susan: i am expecting broad-based leadership. as we pointed out, the market has had a tremendous year. we have seen gains in a lot of places, largely because we came off of a horrible december a year ago. we have tailwinds now. a lot of optimism over the overhang of china trade going away. we have phase one almost completed. people are looking at it as an

election year, thinking subconsciously there is going to be a lot of support for the economy. that is going to be a positive for businesses. companies with individual catalyst, it goes back to a stock pickers market. aboutheard katie talk cattle futures. what is sentiment like on cattle. >> i have not talked to a lot of people about it. untilsticking to bonds january 2. scarlet: everyone is calling for the dollar to weaken in 2020. >> actually put up a round up about the calls being weaker across-the-board the board. it is more measured than it was in 2019. it feels like things are taking a more modest approach next year. nothing close to a bear market. >> it does feel like there is a lot of these consensus calls.

a lot of these long-standing trends are expected to break, whether it is international birth is -- international versus u.s., weakness in the dollar, but could we just have another year of where it is more of the same? susan: isn't that a theme we have had. it took a long time for people to realize interest rates were going to stay low for a long time. it has taken a long time for people to get the message the fed has been clear that we are on pause. this could stretch out. you could see a another year. we have tailwinds behind us. we have reasons for things to stay in good shape. we were always anxious to look for the next disaster. areine: the folks you talking to, are they concerned this idea of the fundamentals

they not be keeping pace with the broader macro view? they are high, but they are not in line with where we are in the market. lot ofi have not heard a that -- >> i have not heard a light of that. they are desperate to get this year over and then think about 2020. there are more gains to be had. scarlet: one sector your keeping an eye on as health care. there is a lot of political risk embedded in that sector especially since a court ruled the obamacare individual mandate to buy insurance is unconstitutional. could we see the re-shifting of the health care sector in 2020, or is that too soon? susan: there will be debating and battling. health care is a sector to keep your eye on chaired energy is another sector. on.eep your eye

energy is another sector. you're going to hear soundbites that are going to cause the knee-jerk reaction in the market. we do not know how this is all going to shake out. we do know that is a rallying point for politicians. expect some shots across the bow. >> one of the big themes people are expecting globally is this idea of a handoff of monetary to fiscal stimulus. we might be starting to see the start of that in the u kate where they are rolling out the whererexit -- in the u.k. they are rolling out the post-brexit plan. our people watching that as a laboratory for policy and market reactions around the world? >> some of my conversations in the past week, people have suggested they are thinking about shorting guilt. thely in the u.s., that was

boogie man in bond markets. we were going to see so much supply. that really has not happened. it will be interesting to see if that story plays scarlet: out. when you look around the world, is there a market around the world that gets your attention? the strongest of the gains we are expected to get. happen --ch up gains individual stories, individual countries. i am looking for businesses that have international reach to them. we have very strong businesses that have international reach based in europe. like the u.s. as my safety market where i feel comfortable with the accounting. i have a lot of concern more about what is global -- what is going on globally in politics in the rest of the world. here goingortable forward for 2020. scarlet: you have the global exposure to boot in the u.s..

that does it for the closing bell. would you miss is up next -- what did you miss is up next where we will be looking at the impeachment. this is bloomberg. ♪

>> live from bloomberg's headquarters in new york, i am remain. here is a snapshot of how u.s. stocks closed today. the dow and s&p moving to record highs. gains at moreing

than $5 trillion to valuations this year. and, the road to brexit. the bank of england shifts focus and leadership. impeachment aftermath. markets shrugging off the speaker pelosis and majority leader mcconnell's bar. -- mcconnell spar. scarlet: for only the third time in american history, the house voted to adopt articles of americannt against the president. the impeachment trial in the senate and what the impeachment trial would look like. billy house joins us with the latest. talk us through what is the issue right now. the speaker suggested she may keep the articles of impeachment as leverage for negotiation on the rules for trial. walk us through how this might play out. billy: the backdrop is that lawmakers are on the road to leaving town for their

month-long break. the speaker and the u.s. house has not sent over the articles impeachment to the senate, which would be the triggering mechanism for the trial to begin. that is because the house wants to know what senate majority leader mcconnell, how he is going to set up the trial. he says he will not allow henesses or he does not -- will work with the trump administration to set up the trial. they say that does not sound fair to them. they want to know details before they send articles over. scarlet: let me jump in right now because the u.s. has the votes to approve the u.s.-mexico canada trade deal. you are looking at live pictures of voting in the house of representatives. this is hr 5430. a majority have voted to approve the deal. once it is passed, it will go on to the senate, which will not

have time to deal with it until after the impeachment trial, which is the topic at hand. romaine: senate majority leader mitch mcconnell has said he to do the usmca until after the impeachment trial. there is still question right now as to when the trial would begin if ipo. there is a story on the bloomberg system where trump's own lawyers are questioning whether he has actually been impeached because nancy pelosi has not forwarded the articles to the senate. and thead nancy pelosi democrats send the articles over last night, that trial would have had to begin at 1:00 p.m. today, at least the initial beginning stages of it. now that it is not been sent, the senate goes into a break like the house. it looks like the earliest that could happen is in january. if it is delayed even further,

the usmca bill could be taken up before the trial. senate democrat in the and mcconnell, the top senators are going to meet shortly to hammer this out. joe: bloomberg's house reporting on the latest on impeachment from capitol hill. romaine: nike earnings into the wire right now. q revenue coming in at 10.3 million. eps at $.70. estimate was $.58. for 44.1.stimate was kind of in line to a slight miss . shares down 2%. scarlet: joe was wondering where the buy on rumors was going to come into a fight. nike shares are down. they had been rising. romaine: they closed at a record

high today. it has been outperforming a lot of it's peers like -- kit -- of its peers. and, they have those shoes we can run 4% faster. joe: i do not believe that. scarlet: joe was waiting for the issues to run 5% better. joe: things appear to be quite on the trade front, but not on the tech frame. we will discuss the chinese company that is still at the center of the global tech. this is bloomberg. ♪

romaine: time now for a look at what stories are trending across the bloomberg universe. terminal users reading about the

drop. in analyst it is the european rules known as mifid ii that are behind the most recent wave of job cuts. the decline of brokerage research is on pace for the sharpest decrease since research started the numbers in 2012. bloomberg.com has a story on the amazon fleet of trucks. since crating its own delivery network, amazon's last mile liver drugs means good news for the manufacturers of the vans, which includes chrysler and ford. they are on pace for a record year of a .7%. quick take by bloomberg has reported instagram and facebook are cracking down on what influencers can support. they have closed the loophole allowing influence to promote products related to vaping.

enforcement is going to roll out in the coming weeks. you can follow all of the stories under terminal, on bloomberg.com, and on quick take by bloomberg. and china have made progress on trade, but major hurdles remain. one flashpoint continues to be the fate of huawei. barking another furious round of lobbying from industry associations representing chipmakers, software companies, and manufacturers. droning us is dan wang from gav ekal dragonomics. the state of huawei? at one point, we were talking about a corporate death penalty. are they in a better position? huawei has been doing much

better than i expected. i thought there was quite a good chance of a lot of the operations not being a concern. it has done well for two reasons. it has had remarkable success replacing a lot of the u.s. components within its smartphones so it is much less dependent on u.s. supply. the second reason is it turns are a littleions more porous than what people thought. huawei is still able to acquire quite a lot of u.s. components through the offshore production. hads because huawei has these two options that it is doing quite a bit better than people thought. scarlet: going to the first point about replacing u.s. components, who did it replace them with? is it parts made in china or in europe? u.s. has not been shy about

pressuret will try to other countries from doing business with huawei. goodhuawei has had pretty success making its own semi conductors. it has a semi conductor design unit. this is china's most successful semi conductor company. mostly replacing capability of qualcomm. huawei has pivoted significantly towards other asian providers. these include japanese, korean and taiwanese. ideally, the supply ought to be time -- all to be chinese. romaine: with regards to potential customers, there is a sense that a lot of countries had no alternative. if they wanted to roll out 5g in any expedited fashion, is that still the case? have these companies given up the idea they can do it

themselves, and that way way is the only game in town? dan: it seems the american campaign to beat up on huawei and try to legally exclude way way at a lot of these european countries for a long while has not been terribly successful, that it has been picking up steam. one of huawei's oldest customers have recently announced not only it will phase way way out of 5g, but it will replace a lot of way way over the next five years. joe: let's talk about some of the other tech related issues part of trade. the phase deal does not seem to have anything to do with that. we know there is frustration among a lot of people in the u.s. about forced technology policy, youdustrial

see any prospect in the later phases of these things changing? beenthe chinese have pretty responses to a lot of the concerns expressed through the ustr report, which focused a lot on technology transfer. past the foreign investment law, which has more or less eliminated the joint venture requirement. the joint venture requirement thisutos, petrochemicals, is where exxon mobil and tesla can have wholly-owned plants in china. laws,has also passed some which are pretty responsive to u.s. concerns. if the u.s. wanted to take a victory lap, it has enough material to do so. scarlet: you're based in beijing. i wonder, how is the narrative in china on the tech front

different than what you hear here? we are used to hearing the same discussion points and the same pressure points being brought up . how do people in beijing think about this? dan: i would think about general secretary steve's comments in saying that china has to get ready for a new march. the party has to prepare for a combat spirit. they thinking about a siege mentality. that this is politically intolerable to the communist party, that the u.s. has the ability to shut off major firms and flows. they have to figure out a lot of these technologies, and they will invest a great deal to do so. scarlet: and they are ready to do so for years on end. dan: many years and many billion. scarlet: thank you so much. safe travels. we have some breaking news.

the u.s. house has approved president trump's usmca deal, and it is sending the bill through the senate. once the senate approves it, it goes to president trump's desk, and when he signs it, it becomes law. the house of representatives approving the nafta trade deal essentially. romaine: nike earnings were out. expectations were high. they are selling off a little bit after hours. the main issues seems to be the gross margin number, 44% in the second quarter. that is slightly below what analysts were looking for. overall, some of the metric revenue was up over 20%. america, 5.3 percent. coming up, the u.k. likely to reveal who will lead the bank of england after exit. we are going to talk -- after brexit. we are going to talk about who

is on the short list. this is bloomberg. ♪

♪ mark crumpton first word news. after voting to impeach president trump, the house gave approving a trade, rewrite of the 25-year-old free-trade agreement. the revamped trade deal includes updates to reflect the modern economy, including provisions on e-commerce and trade. some of the biggest impacts in ,he u.s. automotive industry workers earning an average of at least $16 an hour. pelosiccarthy says nancy

knows the outcome of an impeachment trial is not good for democrats. he says at the end of the day the american public needs to move on. his comments came today as speaker policy declined to say when or whether she would send the charges to the senate. mccarthy spoke to reporters today at his weekly press briefing. >> you watched what transformed last night on this floor. the weakest, thinnest, fastest impeachment in u.s. history. schumer admitted that what happened on this floor over here was wrong. now we have the speaker of the house so embarrassed that she will not even send it to the senate. tweeted the trump

senate should let democrats lose by default. the trial does not begin until articles are delivered to that chamber. russian president putin said president trump was impeached for far-fetched reasons and called the move by the democrats a continuation of their fight against mr. trump. at a marathon news conference, president putin called the impeachment "is that a continuation of internal .olitical struggles the democrats are trying to achieve results by other means." million earmarked $400 for it states where voting is to begin in february. states would use the money for upgrading voting equipment, conducting post-election audits, the nation's intelligence chiefs have warned that russia and

others remain interested in attempting to interfere in u.s. elections. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over than 120 countries. i am mark crumpton. this is bloomberg. the bank of england is turning its focus. romaine: the u.k. will likely who will leaday the bank in the post-brexit era. for more on that, we are joined by our chief international economist at deutsche bank. in 2016 after the brexit vote. mark carney was quick to reassure financial markets there would be money, liquidity, the central bank would be there to support this market. that was largely considered to keep things stable.

important will it be for boris johnson to maintain stability? boe afternal from the the brexit vote was we are here to help the economy. they have been clear in terms of not knowing the outcome. it was helping exporters. gdp did not fall as much as the market had anticipated. given that uncertainty is behind us, it looks important who will be the new pick and who will take over and what they will be doing. joe: when you look at the u.k., does it matter their domestic policy.

absolutely. the exchange rate is important for the economy. it is relatively small relative to the u.s.. been an important part of why the u.k. economy continues the way it has. it really is about what the exchange rates do. in manywhat you see american markets, once the exchange rate goes down, it helps a lot. that has been offsetting these uncertainties. it was a very idiosyncratic risk in the u.k..

>> the financial times is reporting one name on the shortlist to be boe governor. what do we know about andrew bailey? >> we don't know what you will be doing in this seat. it is a unique situation. he still has to maneuver in this elseonment where somebody is deciding the speed of the economy. mentioned, the pound

serves as a buffer or stabilizer. you surprised that years and years of uncertainty about brexit didn't take a deeper toll ? it is verysense analogous with the u.s.. u.s., we have not seen a recession despite this uncertainty being fairly significant. we were surprised it has not had more of an impact. now that uncertainty is going away and that is very helpful. about potential monetary policy and what we

could get out of christine lagarde. >> the ecb still has negative interest rates. they have raised interest rates to zero. it's true we have a lot of debate. the markets view is negative interest rates are not a good idea and central banks are coming around. do you get outw of it? >> the review will create discussions about whether this is easy or difficult to get out of. it is clear that has been set in motion. the u.s. is conducting a review that is important for markets. are they going to keep it lower for longer in the u.s.?

all that becomes very important in terms of expectations. talking aboute other issues. this is bloomberg. ♪

♪ >> we talked about the global economy, let's talk about u.s. home sales, falling to a low in november. the data conflicts with others showing positive momentum. the chief us is international economist from deutsche bank. one report is housing starts from earlier in the week. you can see the long recovery -- 2010. crash in 2009

you were pointing out that has plateaued in the last two years, but seems as if we are getting out of that. >> it eliminated the deduction of interest from your mortgage, so that was pushing the stock down a little bit throughout ratesbut because mortgage have been low in the at theyment lat rate is lowest level in 50 years, it headed up, but it is still not a boom level in any ways. we think the housing market is healthy and a demand-supply since. we are still reasonably optimistic going into 2020. things people do is they conflate low interest rates with cheap money or credit availability. oris not always linear

one-to-one. you can have a situation in which rates are going up, but during rising availability. we have a chart showing over the some greatl years cuts, but there has been a steady trend up in the availability of people to get mortgages. rates and mortgage rates have been very low for quite some time, but it was not as easy to get a loan. the key behind this chart is the fica rescore requires a qualified mortgage is going down modestly. that means it has been getting easier and easier, but this move is modest, but moving in the right direction. data shows credit available he continues to improve. you can walk into a bank and get a mortgage for 4%, but we have not seen those rates rebound. hashe home ownership rate

been relatively depressed for quite some time. it is good news the homeownership rate has begun to move higher. how much more can it go up? it depends on credit availability and whether people have a job. that is the main thing you ask about when you are ask if you can get a mortgage. doneet: the fed has everything it can to make sure the economy is well supported, including buying treasury again, although it says it is not qe. what do you think? they are taken out of the market, that gives some theyinto the market, and eventually use that for something else. do they use that for buying commercial paper, credits,

stocks? we don't know. the repo market problems are more manageable. as we get later in the year, it will be a nonevent in the sense that things are still under control. we talked a lot about what the fed has been doing on the short end of the curve. this,dea that as they do we are still dealing with this bump up. youhe yellow line shows what commercial banks have been holding on their balance sheets. we have seen a significant move and cash the amount, has been going down. why you have less cash and more securities to put into

repo, you have less demand for repo, and the supply has been going up, so that is the reason for the change creating new situations in demand, supply, and repo markets overall. romaine: that is my favorite chart. he always explains things very well. thanks to our chief international economist for deutsche bank. nike do pointed today after hitting record highs. let's bring in the senior with bloomberg intelligence. was this a case of expectations being too high? were high, but they did deliver a pretty nice beat. softness,e was some

that is a little weaker there. in north america, it was the only region out to comp double digits. primarily because of apparel. we are looking at what happened in north america, why is the apparel business slowing? it has done well across the globe. it is down from last quarter when it was up 2%. competition,is be other brands that also sell athletic wear? is that one of the theoretical culprits? >> part of it could be more doing aion, but nike is phenomenal job in apparel across the globe, are really the weakness is north america. that is why we're waiting to hear what happened and what they need to do to accelerate it. leadership have the transition taking place early next year.

what does that mean in terms of how investors should expect strategy to go forward and communication of that strategy to them? >> with john taking the helm in mid-january, the focus is more on digital. nike's playbook, one of the core is cloud and services. he would use that to take nike to the next step. joe: great stuff. thank you for your perspective. scarlet: breaking news. ft's reporting and your baby has been selected as the next governor of the boe. according been named, to the financial times.

the actual announcement will thereut tomorrow, we know is a little bit of criticism because maybe he has not done that great of a job and perhaps the bank overlooked the possibility of promoting a woman to the central bank roll. people: there are some who thought this might be a good pick because it does provide some continuity. do you want to have a really stark pick when you have this transition with brexit? joe: it feels like a safer transition pick, but i would be lying if i said i had some strong views. scarlet: friction is possible. we will be hearing from him in the years to come.

coming up, goldman sachs negotiations, the latest on talks with federal authorities to agree on a settlement for the 1mdb scandal. we will discuss it ahead. this is bloomberg. ♪

romaine: goldman sachs is negotiating a settlement of the 1mdb scandal that would include an admission of guilt by one of subsidiaries and a fine of $2 million. for more, let's bring in shery ahn with more detail. $2 billion, i remember when this scandal started. there was potential he a7 billion dollar fine. said as far as $9 billion. are only seeking $1.5 billion to $2 billion,

especially if you can move past the scandal, doesn't look too bad. there could be an admission of guilt by one of their subsidiaries, a unit in asia. so far goldman sachs has blamed it all on rogue employees and said they would continue to fight this, but now they could admit guilt through one of their subsidiaries. we have seen these maneuvers by banks who don't want to have the parent company admit guilt, which could affect their business. the dow jones reporting they could set up an independent monitor to oversee compliance at goldman sachs. scarlet: i'm sure they would love that. it,erms of a reputational if only an asian subsidiary unit is admitting guilt, what does that mean for goldman sachs as a firm as a whole? >> we will have to see if this goes through, but so far the reputational hit has been huge. were talking about u.s. federal

agencies, but singapore expanding their investigation into goldman sachs as well, not to mention malaysia has criminal charges against 17 current and former goldman sachs employees, not to mention this whole scandal gave a snapshot of what the backdoor dealings are and carry outre trying to these bond sales and how much goldman sachs ends up earning from these bond sales, and the inner picture of what is happening there. scarlet: thank you. for more, don't miss daybreak asia and daybreak australia. coming up, the numbers for third p and income come out tomorrow. joe: and we cover the democratic debate live from los angeles. romaine: tomorrow, the big rollover. scarlet: that does it for

"what'd you miss?" joe: have a great evening. this is bloomberg. ♪

♪ in san taylor riggs francisco in for emily chang. this is "bloomberg technology." hitting highs, southwest on a rip. does it have more room to run? app -- appetizing, those lips coming up.