with united states and mexico. trump was asked about the status of the nafta negotiations. >> we have a strong position and we are the one people want to take it vantage of. they have been taking advantage of. i love canada but they and other countries have been taking advantage of the united states for many years. this is a president that has stopped it. >> canada's foreign affairs minister sounded positive after emerging from three hours of talks in washington. she called the negotiations constructive and positive. in as thes been sworn newest member of the senate. as aeviously served senator from 1995 to 2013.

he will feel mccain's seat through this congressional session. he has been helping guide brett kavanaugh's supreme court nomination. the sheriff leading the investigation into the high school massacre said it would cause billions to implement a model security plan for the state schools. it would include high-tech video systems and bulletproof glass at the 4200 public schools. at least one armed is officer each campus would add $400 million a year to the total. the government -- the gunman killed 17 people on valentines day. the united nations will host peace talks between yemen, and rebels from 2017. worstay it is the world's

military in crisis. two thirds of the population do not know where their next meal will come from. talks begin tomorrow in geneva. global news on their high-end on tictoc on twitter powered by 2700 journalists and analysts in 120 countries. this is bloomberg. caroline: live from bloomberg world headquarters on caroline hyde. we are 30 mr. the close of trading. stocks mixed with weakness hitting the tech heavy nasdaq. social media in the spring court competing for attention. jack dorsey testified for the second time today. brett kavanaugh fielding tough

questions. u.s. supreme court nominee was pressed on president trump and abortion. contagion concerns. silicon valley taking center stage. sheryl sandberg and jack dorsey and a third chair left empty for google faced questions. the twitter ceos before the house energy and calm her's committee. first of all, can i ask how much you think or don't think this has been a positive set of questions coming towards the likes of sandberg? many thought senators had not

been well versed in the previous hearings. >> they were better versed this time. they got better questions and incrementally they gave better answers. one of the most significant things that came out of today's hearings was the sense that government and these companies need to work more closely together and there was willingness to have a more reasonable discussion about that because that has not been discussed publicly at all until now. they were talking about how the industry has gotten together to think of collective strategies. that is healthy. i see incremental healthy moves. the basic point, to believe this closem of misuse is even to addressed is fundamentally false. point, let's your listen to what senator warner had to say when he spoke with

kevin earlier. >> the unwillingness to work with not just congress but answer questions americans have, i think it is going to hurt the reputation, not just with policymakers but with a lot of users. what do they have to hide? >> that was talking about google not showing up and send legal counsel. >> i think it is imprudent not to have shown up. it was a gift to facebook and twitter. much of the coverage was focused on google's absence rather than what jack and cheryl said which was probably to their benefit. >> did they say anything? >> no. that is also a win. they didn't have to say anything. the questions did not put them into a embarrassing position is a win on their point.

caroline: the smart money is that politicians are going to talk tough and they're going to have these hearings but it is still such a long reach until we would see meaningful legislative response or regulatory response and ultimately it is toothless. is that right or could it be that we are surprised? >> something could happen. the american public is getting concerned. it is interestingly a bipartisan concern. real in right and left. they are real on the part of all senators. caroline: shares are down. whether there is real negative ,entiment behind regulation what do you think is driving this? >> uncertainty.

these companies, especially facebook is entering into a fundamentally uncertain era. the reason their stock dropped was because of many steps they have been taken to address these problems. their revenue growth was going to slow and profitability was going to decline. that is a consequence of a a lot of this stuff and it is going to continue. these problems are going to be expensive to verbal -- resolved. scarlet: something you brought up communal think the guys get how angry people are. about how their data is being handled. found interesting data points from a pew survey that pound i percent of users

have downloaded personal data from facebook. 47% have deleted the facebook app from their mobile phone and 75% havehave downloaded personaa from adjusted privacy settings. people are starting to take action. >> that is stunning. it almost half of the people who figure out how much facebook knows about them decide to stop using facebook, that is a big piece of information. i did not know it. it doesn't shock me. everyone who has downloaded data from facebook has said i had no clue. they had the phone numbers of my friends. more than the hearings, at least to some extent the privacy issue seems to be breaking through usage. that is partly what explains why there has been no bounce when it comes to facebook. there is a real issue of how people want to use it. >> he have so many issues hitting at once. privacy is a separate set of issues.

false identities all the consequences of that. these are some pretty serious things. they are bubbling up together at the same time wall street is worried about profit growth. that is a bunch of complicated problems? caroline: you think this will change business practices? this issue of cooperating with the government is a deal. that would be a step in the right direction that i have not heard talked about publicly like it was today. that to me is a positive step in the right direction. these problems cannot be solved by the companies alone. they are not going to be solved by them alone. joe: some of the other stocks are doing fine. google. out of that.

unstoppable iny the eyes of the market. when it comes to these issues, there is a lot. privacy and election interference, is it really different? or in the end are all of these companies going to face issues really because of how dominant they are? >> i agree in the macro terms. involved companies are in the economy, so unprecedentedly large, we have not taken stock of it in general. the way they have an effect on society in each case is different. they have huge amounts of data about us. i don't think we are too worried about how they use it but maybe we should eat. political interference is not really a problem.

the more amazon becomes an ad company the more these other issues could affect them. you.vid kirkpatrick, thank author of the facebook effect. keeping nasa trilateral. back in washington today making canada's latest did. we have more details on the ongoing talks.

scarlet: united states and canada pursuing nafta discussions with krista freeland back in the capital. leaders are standing their ground on key issues, refusing to concede after hitting the

friday deadline with no deal. canada has until the end of the month to keep nafta trilateral. president trump saying we will know if candidate will be able to join. for more let's bring in josh. from the headlines, saying the new trade deal will be a surprise and we should know on canada over the next 2-3 days, whatever name they come up with, it does seem like he is making some progress here. >> i think it is early to say. talks have been a stalemate. a few key issues. they could be resolved in a grand bargain. the question of who is going to blink and on what. it is going to include cultural protections. there's a few outstanding ones and no sign they have made any

huge breakthroughs. >> let's talk about those sticking points. one of the remaining sticking points, do people who are observing yes, do you think there is a way to resolve this to the liking of the u.s. and canada? >> trudeau has been telling the ground to soften any surprise that would come with this. canada has given up its dairy market before. the question, can they break system.e that is how canada has got around this sector. there is flexibility. it depends on how sanctions go. we are waiting to see what that is. dealbreaker a generation ago for canada.

the u.s. wants to kill them. once they make a move on that that will lead others to fall. caroline: what is sentiment in canada? >> there is still widespread public support. we have seen various political parties generally a line supporting the government on this but it is starting to fracture. opposition is blaming trudeau for coming off the rails. they blamed him for not being at the table at the u.s. mexico talks. the canadian government argues that was not a big deal. we will see. we don't know how long the political truce can last. >> you noticed some other headlines the president made. caroline: on a possible

shutdown, if it happens, it happens. he says he thinks mattis will the secretary. >> the president making a wide range of comments on canada and secretary mattis. very quickly, when it comes to this cold trill sec your exemption, is that a sticking point for the u.s.? has the u.s. pushed on that? proposeds. has eliminating an exemption, rolling into everything else that nafta covers. the fear is that would allow tv networks to be bought out, requiring canadian content through trudeau says that is a nonstarter. if they were to break down these

barriers, english-language tv take the kneesy out of canada. the u.s. is looking for stuff there. it is a long ranging battle. everything from radio can music to the super bowl. canada is digging in on keeping stuff in nafta now and the u.s. is pressing to eliminate stuff that is in nafta now. scarlet: thank you for the broad brush strokes. >> i love their music. where would we be without the weeknd and drake? and other digital currencies fell sharply today. goldman sachs is pulling back on 15%. to shut -- set up

goldman sachs it has not reached a conclusion on the scope of its digital plan. warned that general electric is doing worse than expected. poor performance is putting future earnings at risk. 11% of thehas won audits this year. that is your bloomberg business flash. more markets ahead.

caroline: the worst-performing stock in the s&p 500 today is not a tech company. it is halliburton. ,ur stock of the hour following spy its ceo. scarlet: this conference, it is a barclays conference. what they have been saying is not entirely what was expected.

they were saying the permian production, in west texas has been the center of the oil industry in the u.s. with this explosion in fracking we have seen. perhaps not going to continue at the same pace. halliburton following and saying they are seeing activity slow as well. there are different factors here. pipeline backhis up in the united states. you get a feedback into some of these various wells and the services companies that cater to them. if you take a look at the bloomberg, halliburton said earnings were going to be lower by thetimated, hurt share. you can see the big cut that we

seen. there is concern more broadly for the industry. not just that halliburton that the oilfield seen. there is services. all of them are seeing a decline. scarlet: big steep losses there. let's take a look at a stock moving in the other direction. shares of till right reaching the highest since the ipo back in july. up 19%. andrew leftfter tweeted he is shorting the stock . andrew joins us to discuss his position. clarify for us here. you love did at $26. now it is multiples of that, you are shorting the stock. valuation has just gotten exception -- excessive? that, i don't think

investors know what they are buying. interestnot buying any in the industry. they are not buying a manufacturing company with cap x expenses. it is and have the ability to move. this is a function of the float of the stock. how about this. six weeks ago the company thought it was fair to share the stock for $17. $94 six weeks later. after the consolation deal with canopy i thought there could be a bump in the stock. even their analysts, the most bullish analyst with a $60 prize target on the stock, it is a canadian export to us. and operationses

in canada. it is not what people believe it is. read the filings. look at how it is trading. most of all think of the fact management six weeks ago was selling it at $17. joe: the gain is extraordinary boosted by the ceo of constellation brands hyping quality investments come in these are going to have to make in cannabis. small say yourself, market cap thinly traded. as you say yourself, doesn't shortake it dangerous to from a risk management perspective? >> it is extremely volatile. i'm not recommending people go out and just short it but i am

recommending for people who think i want exposure to the cannabis-based assay i'm going to buy it here. there is a clear understanding of the space. the fact that i am shorting is a warning for people watching saying read or understand what you are buying. there is a clear understanding of the space. the fact that i am shorting is a warning for people we are lookie share performance of that company as well. >> krone knows is not even a player. it is a bunch ofcaroline: presss that sound great. i will give till rate credit. but it has gone too far. crowe knows is a series of press releases. they say they have a landmark partnership.

they've had a scientist $20 million

[applause] caroline: "what'd you miss?"

tech stocks are the big losers of the day. the nasdaq falling by more than one percentage point. i am caroline hyde. scarlet: i am scarlet fu. joe: i'm joe weisenthal and if you are tuning in live on twitter, welcome to the closing bell coverage every day from 4 p.m. to 5 p.m. eastern. scarlet: we begin with market minutes. we had a big selloff in tech relative to the rest of the broader indexes. the dow is up 24 points coming off of its lows. the s&p 500 losing a quarter of 1%. look at the nasdaq off. the xl k etf, that fell as much as 2.1%, the biggest drop since june. --ly closed it down while down about 26%. the hearings that we are following in washington with the

,witter ceo and sheryl sandberg testifying did not help sentiment. caroline: a marathon day for jack dorsey. he is still going. scarlet: speaking of, if you look at twitter shares, down on the day 6% closing just below $33 a share. -- idorsey is saying should say republicans pressing for jack dorsey of what they call shadow banning of conservatives. they focused more on russian meddling in the midterm election. we are also keeping a close eye on american express. tradinga dive in late after the wall street journal said fbi is investigating pricing practices. this is a part of the business counting for a small percent of the profit overall, but you have the occ and fbi looking into the potential mispricing along with american express itself. game stock is closing up by more

than 15%. the biggest rally in five years. let's take a look at the government bond markets around the world starting in the u.s. no action. kind of weird. watch.nd of still, we see selling in the e.m. sovereign bonds. that is what i'm watching today. brazilian tenure yield is up 10 basis points. indonesia, a country increasingly being sold off, their five year bond is up to 8.52 and 29th basis points selloff. i think it's interesting there is not much of a flight to india with the treasuries. not that high in the grand scheme of things, but not much of a bid there. if we look at commodities, we

see a different picture. .4% --selling off once 1.4%. gold is getting a little bit back about $1200 an ounce. the consistent theme there if you are looking for something as a safety asset, gold has not done much. two the: over the pound, the british pound is up and this is what saw the dollar fall. perhaps we might see the british and german governments putting aside abandoning brexit demands and easing the path to strike a deal with the eu. therefore, we saw dollar weakness and the pound and euro strengthen. we have seen the dollar up against the south african currency. this is showing we have emerging markets in the eye of the storm and really swirling around south africa after it ended a technical recession. however, i give you the lira,

currently the breast -- best-performing currency. the argentinian peso is up as well. those are today's market minutes. the selloff in emerging markets is showing no sign of letting up. most currencies are weakening but off of the worst levels. an index of stocks is near the bear market. let's bring in the head of the global emerging-market strategy live a from austin. jeff, we see emerging-market currencies coming back relative to yesterday yet you now start to see the emerging-market stocks decline. have we entered a new phase in the contagion concerns when it comes to yen -- em? jeff: it would seem so. we are still looking at the dollar as the key driver here and although the dollar is weaker today, we can rightly say

these currencies are stabilizing a little bit. a lot of the damage we have seen in the m index today was actually in asia. without being too specific, you might see a bit of difference. we think the dollar drives the flows. within the em, there is no doubt you have seen deteriorating in fundamentals of some of the key markets. you mentioned brazil and turkey recently. this is still a major margin market crisis. this is something driven by flows. the danger is that you start to see some contagion in certain parts of the after cloud. i think the dollar is the key. if the dollar goes down, that will ultimately help em establish a base.

in goodyou see examples quality assets or currencies of healthy countries being sold off simply because there are people saying i do not want exposure to em anymore, and thus creating dislocations that are not justified by the fundamentals? geoff: i think that is absolutely right. i think you are seeing that in a number of countries. you see deterioration of fundamentals in brazil. i think the selloff of the ruble is overdone, also the asian currencies are overdone, but it is not that serious. in india, oil prices are up. the fundamentals warned a selloff. you see it in the rupee as well. don't forget, this was a big focus of the market in late may and it is june -- and in june. isdon't really believe there

a need for fundamental weakness of the chinese currency. it's very much reflecting the strength of the dollar. the chinese economy is slowing down. they are doing policy changes trying to deport the chinese economy. apart from a strong dollar, there is no reason why the chinese currency should pick up and pressure at this stage. caroline: especially when we expect overall growth to continue when you see the pmi still showing expansion as aged -- as they did. what about the trade wind for china? if we saw a crisis, does that become an em crisis? geoff: that is right. the one major country that could derail the whole asset class would be china. turkey made a good attempt in early june, but china is without a doubt the key. there's no question that the risk of an escalating trade war,

a we don't believe you have seen the end of tariff increases at this stage, we have already increased our gdp number in china by 20, 30 basis points more than what it would have been because of trade. that is a major risk. an escalating trade war from here, especially relating to a major slowdown not just in china but the global economy with emerging harm overall markets. we have china growing and a lot of policy changes coming through to support the economy. that is obviously a major risk. what we are getting is the wildcard being the trade tied, but i want to repeat the point i said earlier. to 120dollar goes lower against the euro and beyond, if that is anywhere near, emerging markets will make a comeback as this is all being driven by flows.

that is what is causing these problems. scarlet: i hear what you are saying and the dollar holds the key, but whether or not the dollar recovers, certainly there is specific emerging-market currencies that you are keeping -- and arenarchy to keen to. i'm sorry to make the same point, but those currencies won't stabilize for long. you will get much more dramatic policy action than what you have had so far unless the dollar starts to fall itself. the way i looked at this is what the strong dollar does is allow investors to pick away the bad stories or fundamentally less stories, and some of those have deteriorated this year. turkey and brazil are good examples. if you get broad-based contagion

to the whole of the assets, which i'm not sure you are getting at, that sweeps the whole asset class into the melee here. i do not think we are there yet. what we are watching is a real sign of recovery. august,al days in late we saw the dollar move. joe: if there is an opportunity in the emerging markets, what is the best way to play it? if you're trying to traded, you risk further dislocation. should people shift their portfolios to tilt them to em. how do you safely take advantage of this opportunity? geoff: it is a great question because it's incredibly difficult to pick the bottom. we just don't know from one day to another where the dollar will turn, saw a definitive

but it would be nice to say you load up on turkey and russia, argentina, and brazil. more people should be beginning to move back into the markets. it grabs in a more defensive way , and the sectors that we like that are worth looking at, the oneske financials, important in the emerging-market worlds, is decent enough you are seeing credit cycles developing. also, with oil prices being energyhey are, we like as well. there are things people should do, but simply saying we know where the dollar is going today, tomorrow, and the let's -- in the next day is a very hard thing to do. we need to see people take on a lot more risk in the weaker fundamental stories and asset class. , great togeoff dennis

get your analysis, thank you. jack dorsey is still facing questions from lawmakers. we head to washington for a recap of today's marathon testimony. this is bloomberg. ♪

mark: i am mark crumpton with first word news. as expected, supreme court nominee brett kavanaugh was asked his opinion on roe v. that the landmark ruling established a constitutional right to abortion. the question was posed this morning by dianne feinstein on day two of the senate confirmation hearings. settledor, i said it is

as a president of the supreme court and entitled the respect under principles. one important thing to keep in mind about the case is that it has been reaffirmed many times over the past 45 years. mark: judge kavanaugh noted a 1992 decision of the court called planned parenthood the kc casey becomes president upon president. syrian troops are preparing an -- who couldst solidify the hold on italy. weeks after government troops took to southern provinces. the european union wants to crack down on terror content online. the european commission is

unveiling new rules that could force internet companies to take down suspected terrorist conduct -- content. the cost of repairs and other issues stemming from last year's near disaster at the nation's dam in california has climbed to more than $1 billion. both spillways at the dam collapsed in february of 2017 forcing nearly 200,000 people to evacuate. officials fear the dam was on the verge of a catastrophic failure sending uncontrolled and massive waves of water south into populated areas. the lakes waters receded before that occurred. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. caroline: mark, thank you.

silicon valley is taking center stage on capitol hill. jack dorsey and sheryl sandberg along with an empty chair for google. jack dorsey is still taking questions. for more on the marathon, sarah frier joined is not -- joins us now. knocked theo have stock prices in particular is regulation being discussed, particularly the first senator conversation happening at the intelligence committee. sarah: jack dorsey has come out and said i understand these problems are large and understand i have not done enough. i'm willing to reevaluate the business model for twitter. he is really giving concessions, and at the same time, he doesn't seem to know exactly what

twitter needs to do to get better. he's talking about taking public commentary to get feedback on the rules, sharing tips with -- whenmpanies, whether he asked if he could tell the difference between a bought and human accounts, he said it is very difficult for twitter to tell. uncertainty coupled with regulation, if twitter does not know what it needs to fix, how will the government know, that is why you see the stock falling today. companies would prefer to clean themselves up rather than have the government come in and do it, but that implies cost in more case and more people to monitor for content. and all caps of things like that is part of the reason these companies are getting hit so much whether it is twitter today, facebook, really getting lately, this is going to cost a lot of money even if it is a self fix?

sarah: part of the reason for the the facebook stocks slump is ishe last few months because of their take on how much they will have to increase their spending. i want to point out that is not just about content moderation. it's about the fact that you need to invest in other businesses beyond their core thatess and newsfeeds ads taken them so many years to grow that can't grow at the same pace it has been. facebook is even hurting their profitability that they are investing so much in fixing the security problems. there's is a larger narrative over the company's's slowing slowingnd -- company's growth and they have to take on more responsibility for what has happened. scarlet: it also speaks to how facebook is in a different position than say twitter. less ability to commit resources that facebook already has. ago thatt too long

investors were worried about user growth and revenue growth over at twitter. talk about how much pressure they are under when it comes to cost. sarah: twitter has not grown as quickly as facebook. long gone are the days where investors thought twitter would be the next facebook. they have remained prominent because of how essential they are to global conversation around what is happening, especially considering the president uses twitter as his main form of communication. but, the company claims to not have the resources fame. -- facebook does they are not hiring thousands of people -- resources that facebook does. they are not hiring thousands of people like facebook does. they say they are looking for signals and trying to build out technology apps out of that. facebook, they have third parties that can look and rate articles as to whether they are true or not.

twitter says we have a crop of journalists using twitter and are happy to do something when it happens. relying on their user base to be the main moderator of content. scarlet: sarah frier, thank you so much for your perspective. relying on their user base to be the main moderator of content. from new york, this is bloomberg. ♪ om new york, this is bloomberg. ♪

scarlet: "what'd you miss?" the new york times is just publishing an anonymous op-ed reportedly from a senior official in the trump administration. the person says they are part of the resistance inside of the white house and "many trump appointees have bowed what they can to thwart his more misguided impulses until he is out of office." amazing stuff.

let's bring in marty schenker. where do we begin? we don't know who this person is, that this lends credence to the idea that things are bit tense in the white house. marty: i was in the washington bureau during watergate and this is very reminiscent of the fast-moving more extraordinary events every day. you think you have seen it all and then you get something like this. there is clearly a conspiracy among senior officials, but in this case, it is a conspiracy of good where they are trying to restrain the president from his worst impulses. joe: to some extent there has to be fear that someday people are going to look back at this time and really point a finger at all of the people who worked for trump. i'm not saying that will happen, but some people might say that.

between this and the woodwork, it seems people are trying to preemptively put a different spin on to how history looks at this. marty: clearly this op-ed is doing that. we inside bloomberg have often speculated what keep these -- keeps these officials there. jeff sessions is a great example. he has been insulted by donald trump numerous times and the thought process was they think they are serving the greater good, the country. this op-ed specifically says that. we are working because we love america and they cite this death sites john mccain's and his parting statement was inspiration for this. caroline: sensational stuff. the root of the problem is the president abnormality. you like this to back in watergate times. are we getting to that tipping point where the behavior showing alike to what the public didn't

realize that could be some sort of impeachment hearing? marty: it is possible. i will say this op-ed does not really have a call to action. only except that we as american citizens should band together as bipartisanship. if you're a republican legislature in the senate, how can you support a president who does not even have support from a moral standpoint of the people who are closest to him. scarlet: you make a good point. saysis essay, the writer given the instability many witnessed, there were whispers of a booking the 25th amendment. -- ii have to a message in have to imagine president trump is pretty paranoid about this. would it the expected for some cabinet massacre and clear at anyone suspected of being vaguely disloyal? marty: you still have to have

some people to turn on the lights as they say. i think i would suspect donald trump would order a complete investigation on where this came from and the person who wrote it probably figures they will find out who that is and is willing to give up that job. caroline: how will they react to this? we're are really the best we are already hearing from south korea. marty: he already says it is an unnamed person who wrote it and no byline, they will probably characterize it as fake news and made up by the new york times to embarrass him. and nothing from the president -- scarlet: and nothing from the president yet. marty: i'm sure he is not had time to read it yet. caroline: your perspective is always second to none, marty. thank you. our next guest says we are leading into the next fiscal

season leading up to the elections. this is bloomberg. ♪ ♪

mark: i am mark crumpton with first read news. president trump says it remains to be seen whether there will be two or three countries in a new nafta deal. the president made his comments during a meeting with republican lawmakers. >> we will let you know about canada. a lot of people are asking about canada. we should know over the next two or three days, maybe today. foreign minister sounded positive after she emerged from three hours of talks in washington. she called the negotiations " they continue to be constructive and positive." people became ill after a flight from dubai landed in new york.

passengers and crew members complained of symptoms including fever and a cough. they received medical treatment as the jet stood on the tarmac at jfk airport. said at least 10 people were taken to local hospitals. israel's supreme court has clear the way for the demolition of a bedouin village in the west bank rejecting a final appeal in the case that has drawn heavy international attention. the fate of the settlement raised concerns on the united nations, eu, and others. palestinian leaders have gathered to protest the planned demolition. a meeting discussing cooperation in the balkans was held today without a represents -- a representative from kosovo. the kosovo foreign minister --led out after the boston bosnian presidents of the

foreign minister was not welcome. recognized the 2008 declaration of independence of kosovo, a former serbian province. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am a mark crumpton. -- i am-- i mark barton mark crumpton, this is bloomberg. scarlet: let's get a recap of today's market action. a drop in tech stocks pushing the nasdaq lower by greater than 1%. as you had sheryl sandberg, the ceo of twitter, and no one testifying before capitol hill, stocks fell. a lot of scrutiny on how the tech giants proceed with allegations of russian meddling in our elections. of course the dow is climbing up 22 points on the day. caroline: let's get more on the tech shares. they take a hit today as emerging market currency spiral.

we welcome in john to the show. on yourn $50 billion acids and you were on radio talking about the war of worry. is it a little bit higher than it was before? john: it looks like that. i think we are beginning to focus on style rather than what is being done. is prettyent's style are taking to an awful lot of people that are not big trump supporters. that, now that we are two years into it, is getting really grind the. -- grindy. we have lots of reasons why equities are attractive. earnings growth has been substantial, but when you have somebody who is acting outside of the box, it creates

nervousness. people that are nervous are afraid, and people that are afraid tend to not buy stocks. they are not huge sellers, necessarily, but they are holding back. we were talking off here about how much cash i have. or 40%, but it is above average because, if there is a selloff for some inexplicable reason, i want to have cash reserves so i can add to the stocks i own. it is pretty straightforward stuff. scarlet: how much participation is there in the market? you say some people are nervous or scared to do much. our people sitting on their position? don: i would tell you that in the private wealth end of the spectrum, where people can have cash, there are enormous pools of cash. that is not a reason to buy

stock, that it is comforting to know there's a lot of buying people becomehen whattle more relaxed joe: does the run-up to the election look like -- relaxed. joe: what is the run-up to the election look like? don: the answer is the democrats , apparently, think they have a real chance at picking up a lot of seats in the house and maybe enough in the senate to give them control. i will tell you the american people vote for their stomachs. the economy is better than it has been and unemployment is at historically low levels. the democrats do not have a big story to tell except that they do not like the president. come november,t and this is only a guess, that the change is not going to be very great and republicans will

maintain control. scarlet: from where you stand, does that mean the white house republicans will do what they need to do to keep the stock market climbing meaning there will not be negative surprises? don: you said that. i anticipate that is probably true, but i will not go on record saying definitely that will happen. caroline: you said you had a bit of cash, are there more stocks to buy or what about the other end? don: real estate is pretty pricey in the united states. region it is saying you cannot talk about the whole rather than you can say emerging markets as a whole. with interest rates rising gradually, probably over the next 12 to 18, 24 months, you do not want to be in long bonds or even in midterm -- listen, i'm .ot the bond buyer

there are a lot of attractive equities. you don't buy the index, at least i don't. you by individual companies doing well. scarlet: [indiscernible] don: i kind of like the oil sector and energy sector. i think pollution the basement is undervalued. i think -- debatement is undervalued. think, education, if you can find a way to get into that -- joe: going back to politics, you talk about people voting with their stomach and people are pretty bearish with the stock market surging. nonetheless, the popular -- the president is pretty unpopular.

in your experience, have you ever seen a president this unpopular with things going this well with the economy? don: no. definitely not. bushes were reasonably unpopular, but the markets with bush 43, the market was pretty awful. you have a unique where things are going in the right direction, but nobody likes the people that make it go there. you talk about the unpopularity of the president, but what about congress? . it is at 11% or something. my guess is very little change. caroline: you said you can't have real estate as one country you say you can't have yen as one broad index, what do you make of the contagion we are seeing? don: i do not think there is a contagion. i saw that quote earlier.

stop it. [laughter] don: don't say things that are not true. is there a problem in turkey? of course. is there a problem in argentina? of course. brazil? of course. china is not slowing down. the growth rate in china may come down because the economy is a lot bigger. scarlet: a big distinction. don: there is a big distinction. china is not going on the -- going into the toilet, it is doing well. stocksket in chinese traded in hong kong and singapore have come down substantially. i think it is a buying opportunity. scarlet: all right, buying opportunity from cibc private wealth executive vice president, don gimbel, thank you for being with us. scarlet: we monitoring what happened on capitol hill. brett kavanaugh is currently

speaking right now before the senate. we head over to washington for an update on day two of his hearing. this is bloomberg. ♪ have a completely open mind on the constitutional issues. on the constitutional issues. ♪

scarlet: you're looking at live shots of brett kavanaugh currently answering questions before the senate judiciary committee. democrats are pressing him for his positions on presidential power, regulation, and abortion. let's go to our supreme court reporter joining us from washington. has been testy this testimony and there have been a lot of protesters who have piped up and made a lot of noise as well. what was the exchange that caught your attention? >> there have been really

interesting exchanges this afternoon about his views of federal agency. this is an area where he is relaxed and spent a lot of time because of the court he was on in washington. among other things, one thing he said was there was an opinion he wrote involving the consumer financial protection bureau where he said that agency was unconstitutionally structured because the president not have ability ability to fire the director. today, he said that decision does not necessarily apply to those agencies of multiple member commission. whered if that is a need things need to go forward, that would be a lot less threatening to the washington establishment less worried about him cracking down on federal agencies. that did notange involve any of brett kavanaugh's views on the law had to do and came from senator lang he talking about a stolen document.

what was that about? greg: that had to do with a staffer who worked for a republican back then who did get some unauthorized emails. the question was whether brett kavanaugh, while working at the white house, had seen those emails and was relying on them. there was not a definitive conclusion to that. one senator suggested he would return to it tomorrow. the senator did not have some of the documentation he wanted at the moment to press that line of questioning. it is something to watch, but no conclusion today. caroline: from a broader perspective, many look at what judge brett kavanaugh will mean to the leaning of the supreme court's going forward in particular to doing business. talk about his skepticism when it comes to regulation there or not. greg: he does have a track

record of wanting to limit the power of federal agencies. one thing he has not walked away from is that he believes if a law does not clearly say an agency can do something, the agency cannot act on its own. he has made that pretty clear. when you consider president obama's net neutrality and the regulationsutrality in the obama era, he said the scc -- fcc does not have the ability to do that. if they adopted that approach, it could significantly limit the things agencies go after like climate change without specific authorization from congress. scarlet: you mentioned patrick leahy earlier, but did brett kavanaugh give us anything to work with with a regard to presidential pardon -- so pardon? greg: he did not -- self pardon? greg: he did not go there or

whether the president would have to obey a subpoena issued by robert mueller. he is trying to stay away from those questions. he did make some comments where he said he had not -- he said some things about that but he said in terms of the law, how that applies to the situations, he said i've not said anything and will not say anything. caroline: greg, thank you for breaking down day two of the hearing for the nomination of brett kavanaugh. coming up, betting on the bitcoin boom. how much the canadian pound is onlineto revive the currency. this is bloomberg. ♪

joe: "what'd you miss?" a canadian ghost town took a gamble on bitcoin. the cryptocurrency boom is reaching ocean falls, a town with fewer than 100 residents largely abandoned for the last 40 years. for more, let's bring in bloomberg's technology josh christine who traveled there to --d out -- josh bruce seeing brustine to find out. >> ocean falls is the former milltown and when that crows down, they have spent decades to trying to get any business to relocate up there. the problem is it is hard to get in and out to you need a business that does not move anything and bitcoin was a good way to do so. caroline: how steady is the business model? bitcoins price is not steady and clearly investment is going on at the moment and well above prices we have seen five years ago, but how much do we see the

millown's will benefit -- towns will benefit. josh: i saw investor documents that projected the price to be about $11,000 which was how they made their financial projections , but it is now much lower than that. there's a little worry for people that were working there and bitcoin companies are optimistic so their shares are going up. scarlet: this invites the question of anybody that builds a bitcoin mining operation, it is not necessarily a personal heavy company. they are not hiring locals to do anything because it is mainly computers you are outfitting and buying and installing. josh: absolutely. the main impact was psychological. they were happy to have something going on, but there was a fair amount of construction over the last couple of months as they were setting up the building, putting

in the mining units and so on. now there is basically no one working there which raises the question of what good is it for the town itself? joe: one of the big criticisms of cryptocurrencies is the amount of electricity that gets used and people do the crude calculations to figure out. carbon emissions from it a lot of it is kind of like this where it is clean energy or emission free energy kind of going to waste. josh: you will see miners want to talk about this a lot. a lot of the original mining was happening with coal powered mines in china. -- you have a heavy polluting industry and now you have a dam that does not create a mission. they're not even driving up the cost of electricity. the utility is saying this could a businesse opportunity that helps us maintain our equipment better. and that case, they seem like the good guys.

scarlet: for some of these companies, they could do other things with their computers as well. they do not have to just be mining for bitcoin, right? josh: it depends on what the kind of computers you are using our. if you're mining other kinds of cryptocurrencies, you're usually using a computer chip you can switch to another kind of cloud computing process like video processing or whatever. in this case, they use bitcoin specific chips which are hard to switch to anything else. scarlet: it is only good for money for bitcoin and that's it. josh: exactly. scarlet: fantastic article on the bloomberg. thank you so much. let's get you to the bloomberg business flash. we're looking at shares of gamestop rising the most in years. according to deal reporters, gamestop is running a formal auction. they have been the form of

speculation for months. one site is called caffeine and the fox investment goes to creating caffeine studios which is a joint venture between fox sports in the gaming startup. they hope to attract one billion gamers to their platform. an international gear maker and an advocate at the vatican was recently hired to invite his clients like pension funds, governments, and a sovereign law funds. uber is introducing a number of features to make trips safer. if you sit in the car for too long, it will check up on you to make sure all is ok. there will also be an emergency button and voice-activated commands. assault, rape, and even murder have taken place in some of the vehicles. that is your business flash

update. turning to the etf industry, it has something for everyone. we highlight a fund geared toward remaking the u.s. as a powerhouse with the aid of technology. it is hard to find a more little name than the treaty printing etf. the company is involved with the 3-d print industry. they are split into five business lines tied into the industry. hardware, design, software, and others. with hardware is getting the biggest way to 50% and materials is the smallest that 2%. within each line, companies are equal weighted. two thirds are roughly from the u.s. including hp think and others. the fund has gathered some $50 million in assets, is relatively costly, and has returned a

similar to the s&p 500 since its launch in july 2016. print gets a green light in the traffic light system with a notice for its unique weighting strategy. don't forget to watch etf iq on bloomberg every wednesday at 1 p.m. new york time and 6 p.m. in london. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪ ♪

scarlet: "what'd you miss?" tech stocks taking a hit. the nasdaq falling the most by better -- off by better than 1%. coming up, the trump administration awaits the end of the public comment.

u.s. potentially proceed with the next round of tariffs on the u.s. -- on china. southne: don't miss africa's second quarter comes out at 5 a.m. eastern time. you will be up for that, joe, but i don't know many others. scarlet: that does it for "what'd you miss?" caroline: "bloomberg technology" is next. joe: this is bloomberg. ♪

emily: i am emily chang in san francisco. this is "bloomberg technology." big tech takes on washington as jack dorsey and sheryl sandberg testify before the senate. how was this different from when mark zuckerberg was in the hot seat? plus, one big name missing from the hearing. what senate intelligence has toee, mark warner, say about google being a no-show. 23 and me's quest to cure the