Brexit’s taking that ride to nowhere

[Bloomberg]( Today’s Agenda - Brexit keeps [going nowhere fast](. - There’s a right way to do [China trade talks](. - Apple must plan faster for a [post-iPhone existence](. - Yes, Hispanics [assimilate very well](. - The market has [brought the Fed to heel](. Brexit’s Road to Nowhere The Greek philosopher Zeno of Elea gets credit for what's known as the Dichotomy Paradox. This is the observation that, in order to get from point A to point B, you have to first go halfway to point B, but before that you must go half of that half-distance, and so on until you theoretically never get anywhere. Speaking of endless motion going nowhere: Brexit. Theresa May yesterday won several huge victories in parliament, giving her the right to, uh, beg the EU to renegotiate a Brexit deal that has already suffered a record-breaking parliamentary rejection and that the EU has already said it doesn’t want to renegotiate. This [does buy May a little more time]( – two weeks – notes Therese Raphael. But at the end of that two weeks there will be yet another vote, and we will be half again the distance toward the looming Brexit deadline at the end of March, with nothing much to show for it. The parliament votes [raised the chances]( of a disastrous no-deal Brexit, which nobody aside from the frothiest Brexiteers claims to want. [Pound traders are happy anyway](, because apparently they would rather see such a disaster than have Labour’s Jeremy Corbyn become prime minister, writes Marcus Asworth. Those traders may also be betting, like May, that cooler heads will ultimately avoid a no-deal Brexit. But [game theory alone suggests]( the not-so-cool heads in the U.K. and EU will just keep pushing each other toward such a disaster, writes Leonid Bershidsky. And make no mistake: May’s “victory” yesterday was really just kicking the can (halfway) down the road, leading to more [pointless negotiations and votes]( that only avoid the hard choices necessary, writes Bloomberg’s editorial board. As Zeno might have put it, we’re on [a road to nowhere](. How Not to Lose at China Trade Talks The U.S. and China began trade talks today, and one big question is how we’re supposed to tell if they’ve succeeded. For example, President Donald Trump may crow if China agrees to eradicate the trade deficit, but that wouldn’t be much of a win, Bloomberg’s editorial board writes. Trump may also threaten to reimpose tariffs if China fails to honor agreements coming from these talks, but that wouldn’t be very helpful either. A far better outcome, the editors write, would be a deal that helps [level the playing field for U.S. companies]( in China. It would also use international alliances and other, smarter incentives than tariffs to hold China to the deal. But tariffs and trade deficits are what Trump focuses on, so we’ll see if negotiators follow the editorial board’s advice. Trump’s instincts about protecting American industry and bringing jobs back from China haven’t exactly been flawless. Emblematic is the ballyhooed 2017 announcement that China’s Foxconn would build an LCD panel factory in Wisconsin, potentially employing thousands of Americans. Those hopes started to crumble today with the news Foxconn may [ditch]( the whole idea, and Tim Culpan writes [they were never realistic]( – and neither is Trump’s dream of turning the clock on industry back to the 1950s. Further China Reading: China’s 10-year bond yields will [soon fall below 3 percent](. It’s a sign deflation is settling in, but it will also help the government stimulate the economy. – Shuli Ren Apple’s New Persona Still Not Taking Apple Inc.’s iPhone sales are in decline, maybe forever. But that is totally fine, Apple says, because it’s not a phone company any more but a services company. One big problem with that is, Apple [hasn’t yet shown it can grow its services]( revenue without growing phone sales too, writes Shira Ovide. For example, this is not an encouraging chart if you’re hoping for a dramatic Apple transformation: The company needs to think much harder about how to break out of its little glass-and-metal box. Shira [has some ideas](. If You Shop Like an American… Legendary journalist Tom Brokaw recently got in hot water for suggesting Hispanics should “work harder at assimilation” if they don’t want Americans to be so angry at them. Brokaw apologized for not seeming to embrace diversity. But his premise was wrong too; [Hispanics assimilate at least as well]( as any other immigrant group, Noah Smith writes. He’s got the data to back this up. For example, anti-immigrant types snarl at Hispanics to “Speak English,” but that is just what they very quickly learn to do: There’s a lot more of this sort of thing, but one of Noah’s most compelling pieces of evidence is that advertisers are struggling to target ads at Hispanic-Americans – because their buying habits look just like those of any other American. That’s [about as assimilated]( as you can get. The Market Has a Pet Federal Reserve The Federal Reserve today left interest rates alone and promised to [stop hiking rates]( for a while. It might even dial back its plan to work down its bloated balance sheet. U.S. stocks rewarded the Fed by rising eleventy kajillion percent, pleased to have finally [trained the central bank to listen to its commands](, as Brian Chappatta sort of puts it. He notes the Fed not very long ago was all about tightening credit in response to a strong labor market, but the howling of the stock market last year changed his mind. All in all, this is a good thing, if it prevents a recession; but it means the Fed is now at the market’s mercy, writes Brian. Further Markets Reading: The [quants are coming]( for the bond market now. – Brian Chappatta Telltale Charts AT&T Inc. has been jacking up prices on DirectTV services to wring more profit out of them. But [it’s not working](, notes Tara Lachapelle, who suggests it may be time for AT&T to cut bait.  Big luxury brands such as LVMH seem to have an advantage in [troubled economic times](, writes Andrea Felsted. Further Reading Would an Elizabeth Warren-style wealth tax be constitutional? That may be [up to John Roberts](. – Noah Feldman Everybody’s mocking Howard Schultz’s presidential hopes, but [his wealth means we can’t ignore him](. – Jonathan Bernstein Venezuela’s oil can flow freely again some day, but it [must be smart about its resources](, letting oil experts work out the deals and details and leaving politicians out of it. – Ellen Wald Big health companies have spent $122 billion on deals for pharmacy benefit managers, but Anthem Inc.[thinks it can build one in-house](; and it might be right. – Max Nisen People [complaining about weather forecasts]( don’t know how good we have it these days. – Faye Flam ICYMI Jamie Dimon thinks the [rich can pay more]( in taxes. Venezuela has [20 tons of gold]( ready to ship … to Russia? Trader Joe’s is [quitting online delivery]( in NYC. Kickers How global warming [plays into the polar vortex](. (h/t [Barry Ritholtz]() How [wind chill affects]( your body. It’s so cold Chicago is [lighting its train tracks]( on fire. Inspired by the pufferfish, scientists have invented an [inflatable ball to put inside patients](. (h/t for the past two kickers to Scott Duke Kominers) RIP to the [world’s loneliest duck](. (h/t Ellen Dickstein Kominers) Eighteen photos of [swimming with orcas]( in Norway. Note: Please send fire, suggestions and kicker ideas to Mark Gongloff at mgongloff1@bloomberg.net. New to Bloomberg Opinion Today? [Sign up here]( and follow us on [Twitter]( and [Facebook](. [FOLLOW US [Facebook Share]]( [Twitter Share]( SEND TO A FRIEND [Share with a friend] You received this message because you are subscribed to Bloomberg's Bloomberg Opinion Today newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022