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00:00OF GLOBAL RATES AT BANK OF AMERICA AND MERRILL LYNCH. THE ECONOMY ON THE MEND IN 2020. IT SOUNDS LIKE YOU ARE FULLY ON BOARD THE THESIS OF THE ECONOMY ON THE BAND. DAVID: I HAVE BEEN BULLISH FOR AT LEAST A YEAR. THE BIG STORY OF 2019 WAS THIS MASSIVE ESCALATION OF POLITICAL UNCERTAINTIES THAT REACHED UNPRECEDENTED HIGHS, WEIGHED DOWN COMPETENT AND LED TO THE GLOBAL SLOWDOWN PARTY. MY VIEW IS THAT 2020 IS GOING TO BE ABOUT THE DISSIPATION OF THESE UNCERTAINTIES. IF I ' M RIGHT, I HAVE TO BE RIGHT ABOUT THE NEXT THREE WEEKS. SCARLET: WHY THE NEXT THREE WEEKS? > > I ' M GOING TO MAKE THREE BOLD PREDICTIONS. I THINK YOU ARE GOING TO GET A SIGNIFICANT U.S. CHINA TRADE DEAL IN THE NEXT 10 DAYS. I THINK YOU ' RE GOING TO GET A DECISIVE VICTORY FOR BORIS JOHNSON AND THE CONSERVATIVES. I ALSO THINK THERE IS A GOOD CHANCE PELOSI HAVE NO CHANCE BUT TO RATIFY USMCA BEFORE THE END OF THE YEAR. IF YOU GET ALL OF THESE THREE THINGS -- EVEN JUST TWO -- I THINK THAT WILL REPRESENT A TREMENDOUS LIFTING OF THIS UNCERTAINTY THAT WILL ALLOW THE WORLD GO BACK TO INVESTING INVENTORY. I COULD TELL YOU -- IN ALL THE EQUITY PLANS, PEOPLE HAVE BEEN SAYING, WE HAVE BEEN SELLING INDIVIDUAL STOCKS BECAUSE WE DO NOT SEE ANY VALUE. BECAUSE OF THE MOMENTUM, WE HAVE BEEN BUYING INDICES. I THINK SOME OF THE UNCERTAINTY COMES DOWN. THEREFORE, GENERAL RISK PREMIUM HAS GONE DOWN. NOBODY POSITION FOR GLOBAL RECOVERY -- THE FED HAS NEVER CUT MORE THAN 75 BASIS POINTS AT A STRETCH, WHICH THEY DID, WITHOUT THE U.S. GOING INTO RECESSION. THE MARKET IS DEFINITELY STILL PRICING. CYCLICAL STOCKS, WHILE THEY HAVE DONE WELL, THEY HAVE NOT DONE ANY BETTER. ALL OF THE DOLLAR IT THE AUSSIE DOLLAR IS TRADING $.70 BELOW -- THE AUSSIE DOLLAR IS TRADING $.70 BELOW. PEOPLE AT THIS POINT BECAUSE THERE HAS BEEN -- I DON ' T KNOW -- FALSE HOPE IN THE LAST COUPLE YEARS, PEOPLE DO NOT WANT TO PULL THE TRIGGER UNTIL THEY SEE THESE DEALS DONE. > > LET ' S TALK ABOUT ONE OF THE DEALS. THAT IS THE POTENTIAL TRADE DEAL. THERE WILL BE A LOT OF PEOPLE EAGER TO TAKE THE OTHER SIDE OF THE BIT, THAT THEY ARE ABOUT TO GET TOWARDS A MEANINGFUL PHASE I AGREEMENT. WHY DO YOU FEEL THEY ARE ABOUT TO GET ONE? DAVID: IT IS NOT A QUESTION THAT CHINESE DO NOT WANT TO DEAL SO CLOSE TO THE U.S. ELECTION. THAT HAS BEEN A POWERFUL ARGUMENT. I WAS IN CHINA TWO WEEKS AGO. I WAS TOLD CHINESE LEADERSHIP -- THEY FEEL THE STRUGGLE WITH THE -- THAT BIDEN STRUGGLED WITH THE SCANDAL IN UKRAINE. THIRD CONSENSUS IN BEIJING IS WHAT WAS PUT TO ME BY A FORMER VICE MINISTER WHO SAID, WE GET A DEMOCRAT IN THE WHITE HOUSE, HE OR SHE MIGHT INSTITUTIONALIZE THE POLICY UNDER TRUMP. CONCLUSION IN -- THE CONCLUSION IN BEIJING IS THAT THE BEST CHANCE FOR CHINA GETTING A TRADE DEAL WITH THE U.S. MIGHT BE DONALD TRUMP. FROM TRUMP STANDPOINT, THERE WAS A POLL A FEW WEEKS AGO. IT SHOWS 60% OF AMERICANS THINK A RECESSION IS LIKELY ARE VERY LIKELY NEXT YEAR. 45% OF RESPONDENTS BLAMED THE RECESSION ON TRUMP TRADE WHERE WITH CHINA. NOT ONLY -- DESPITE THE FACT THAT TERMS OVERALL APPROVAL RATINGS ARE 45%, HIS APPROVAL RATINGS WHEN HANDLING NEGOTIATIONS WITH CHINA IS 35%. EVEN AMONG PEOPLE WHO CALL THEMSELVES TRUMP SUPPORTERS THINK THAT THE TRADE WAR IS A BAD IDEA. I THINK THE POLITICAL -- > > WE ARE NOT TALKING ABOUT THE RESOLUTION OF THE TRADE WAR. WE ' RE TALKING ABOUT PHASE ONE OF WHAT IS A PHASE -- A THREE-PHASE DEAL. > > THE TRUTH IS -- WE ARE PONTIFICATING. THE HONEST TRUTH AND 90% OF WHAT WE KNOW ABOUT THE STATE OF NEGOTIATIONS FROM THE PRESS CONFERENCE FROM OCTOBER 11 WITH THE WHITE HOUSE. LIGHTHIZER -- ONLY TWO SENTENCES CAME OUT OF HIS MOUTH. I WILL TELL YOU WHAT THEY WERE. HE SAID THE U.S. AND CHINA HAVE AGREED ON THE NEED FOR A DISPUTE RESOLUTION CAN IS IMPAIRED THE SECOND SENTENCE IS, WE ARE ALMOST THERE. THAT WAS HUGE. THIS MAN, LIGHTHIZER, WHO NOT ONLY COMMENDS RESPECT AMONG REPUBLICANS AND DEMOCRATS, HE HAS BEEN SAYING FOR THE LAST TWO YEARS A TRADE DEAL WITH CHINA WOULD NOT BE WORTH A PEACE OF PEYTON -- THE PIECE OF PAPER WRITTEN ON MSI COMES WITH AN ENFORCEMENT MECHANISM. -- WRITTEN ON IT UNLESS IT COMES WITH AN ENFORCEMENT MECHANISM. SCARLET: THAT IS WHEN YOU PAY ATTENTION TO THE CHINA HAWKS COMMENT. DAVID WOO, WHO HAS THREATENED TO

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Three Bold Predictions for 2020 From BofA Merrill's David Woo

David Woo, Bank of America Merrill Lynch head of global rates and currencies research, discusses his three bold predictions for 2020 with Bloomberg's Joe Weisenthal, Scarlet Fu and Romaine Bostick on "Bloomberg Markets: What'd You Miss?" (Source: Bloomberg)

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