much. off yet everything is right where it was in februarynow with a little hie numbers you core inflation rate of cycle highs. numberssee easily these finally break through the 3% barrier and, if inflation numbers due, the 10-year will go. caroline: we are trading at green across the screen. the dow changes closing up 114 points and the nasdaq is leading the charge with tech up 6/10 of 1%. we did see apple get it a bit about trade tensions. e.m. as well has been a key area. i'm looking at how technicals are no longer showing oversold. a lot ofwe've had people are trying to call the bottom in emerging

stocks. the bottom panel is rsi. a gauge of momentum in the emerging markets act index. as the yellow line shows, the index is coming down, but the momentum of the selling is abating. the type of divergence that a lot of technicians look at as the possible sign of a bottom. people believe the e.m. selloff has overshot the fundamentals. joe: is the big question this year when something other than the s&p 500 is going to start working? michael: absolutely. this decoupling between the u.s. and the rest of the world's front and center of a lot of people's minds. it is hard to bet against the u.s. with the earnings pipeline that we have. a lot of people, especially in e.m., think bottom has to come sooner or later.

some people are trying to catch the falling knife. are a lot of technical and other indicators suggesting we could be getting closer to it. scarlet: what is your take on e.m., jim? jim: there's a lot of attention on when u.s. would quit working. it did start last year. last year, the markets did better than the emerging. or april ofarch this year, emerging markets were outperforming the u.s. market overall. the real culprit is the dollar. it had been falling since the end of 16 until april of this year and it has jumped five to 6%. that's really killed off and, put prices rates inflation on hold with interest rate trends. a lot of those things that would benefit international markets or

the u.s. markets sort of stalled. i think that has brought us back to the u.s.. however, if the dollar ever reverses and it's piqued their last week, if that starts to show erosion, you will see a lot of portfolios may be moved to take it vantage of what many people are suggesting is a little bit of an oversold position. not only in e.m. but the international markets in general. joe: can we get dollar weakening if we get higher inflation, higher rates, all of that stuff out of the dollar. how does the dollar we can then? jim: that would hurt. the worst thing for the dollar is inflation. the weakest decade for the dollar was the 1970's. u.s. that if it's not more than anybody else in the world because we are more consumer-based. everyone else is more inflation or commodity-based. anything that promotes

disinflation helps the dollar. anything that promotes inflation hurts it. one of the reasons the dollar was week was because we started to see, over the last couple of years, commodity prices and we can place in grebe up. if that returns, that could put the dollar lower again in favor international investment. caroline: meanwhile, investors are thinking the fed will hike another two times by the end of the year. joined the financial leaders calling for central bank to raise the rates and to be more flexible if we do get a few more hikes. listen to what yet to say. >> there's no reason we have to continue to raise rates to get back to a normalized level. i worry about, if there is a crisis or accident or something that needs to be done about that financial marketplace, do we have the tools? have we used all of the ammunition from monetary policy? caroline: we've seen the u.s.

boe,he tools, we are ecb, turkey and emerging markets with russia. where are we expected to see raising rates and how does it affect the overall market? michael: one thing happening is short-term interest rate traders and dollars spent on futures are starting to believe in the dot plot. that was not the case a few weeks ago. the dots were showing three or four hikes next year and shorter mr. great's or price much i met -- short-term interest rates were price much higher than that. they are getting slightly more comfortable with the prospect for rate increases. it does on the question if this are e.m. rebound can happen while this is going on simultaneously. a lot of dollar-denominated threat -- debt in emerging markets is part of the issue for all markets. to state the obvious, rising interest rates are not accepting for thatrates

succession. caroline: thank you both. the central bank of argentina just announced it will not lower rates before december. they have the highest rates in the world at 60%. they also see inflation accelerating as the economic outlook has deteriorated since august the seventh. we look ahead to russia and turkey bank central decisions. we participated no move higher than 60%. it was always the highest in the world. are you interested in the fact that we see inflation accelerate despite the rate? >> one of the reasons we have a big problem is the increase in inflation which tends to weaken a currency. they have this money from the imf which has bucked up their reserves what they spent some of it to defend the country. joe: if you have to import

goods, oil, and your currency is , the key thing that everyone says with argentina is that they followed the playbook and it is not working. but, have a? vincent: to some extent -- have they? vincent: to some extent they have. they have tried to use some of their own asks for to buck up the physical deficit -- own exports to buck up the physical deficit. this will impact on their popularity in some of the policies they want to enact to try to turn things around. joe: emerging markets have to induce a recession so they can , buthe balance of payments if the government cannot survive the recession, that is not exactly -- >> exactly. the presidential elections are going to come on a lot faster

than people think and then you have the overall situation of the emerging market weight on all e.m. weighing on argentina as well. scarlet: let's bring back in jim romm minneapolis. when it comes to emerging markets -- jim from minneapolis. when it comes to emerging markets --. jim: how i would approach it is there is a lot of reasons, fundamentally longer-term. they're under earned -- owned, undervalued, they don't face the pressures we have here, they will have more hospital pull policy issues -- hospitable policy issues, but the question is, short-term, how bad could it get. i would lean in that direction, that just lean and give myself the next six months to slowly establish the position here. in lieu of being happy, one or two years down the road, rather

than make the call on if it is the lower bottom overall. -- low or bottom overall. a big risk would be an unexpected slowdown in the united states. after the fact, it won't be such a surprise when you consider what the fed has been doing. they are taking these apply for almost a percent to under 4%. we have doubled yields all the way across the curve from cash to 30 years in the last 18 months. we are restricting the balance sheet, then we bring higher energy costs to hit households and consumer -- or business budgets. finally, the real wage has been declining. , wee slow rather than grow go back to 2%, i think that will be a much more severe problem for investors here globally than it would be if we continued to

have mild issues going on in the emerging world. scarlet: the banner is still sticking me. we have other headlines from argentina central-bank. they say the economic outlook has deteriorated and they see a recession in 2018 maintaining into 2019. they see cti deceleration. those are the headlines from argentina. vincent, thank you for joining us. joe, what are you looking at? joe: we have eco-data very interesting telling us about the labor market. we have the latest small business optimism survey and the jolt survey which tells us about the guts of the labor market. we see two very similar lines on the two surveys that are the two sides of the same coin. the white line is the level of private interest-rate quits rate . confidence or of

they think they can get another job. that hit its highest level since 2001 at 2.7%. the blue line is the number of small businesses complaining that they are having a hard time getting good, quality labor. that ifs to reason employees are feeling good, quitting their jobs, unless you really want your employees to leave, you typically do not, it is seens to reason that if employees are quitting their jobs more, small business with -- businesses will complain more. good news for workers and distress for small businesses. don't worry, small business optimism, the highest in the survey going back 40 years. although they have hard times finding workers, perhaps don't cry or them to much. caroline: we saw that in germany as well.

investors are going great guns once again. jim, let's get your take overall. when are you going to start to see more weakness in the data? at the moment we firing -- we are firing on all cylinders. jim: it is very good. there is no doubt about it. whether you look at labor or industrial activity, consumer in general, it is good. goode to think it is too and we do have policy officials weighing in pretty hard. with of lag, that will have a negative impact. the atlanta fed forecast for this quarter growth is something s. the fords -- force -- four there's a huge difference between two points. the fed has been tightening and most people think they are -- feel they are confident. as an investor, to me, it was a

much lower risk environment to invest when there was richer feel -- fear. today, we have less fear and, where will we improve? can we lower the unemployment rate? not really. can valuations go up a lot? not a lot. scarlet: i think you're describing conditions right now. but it's wonderful on main maybe not -- maine, but maybe not wall street. scarlet: that does it for the closing bell and that does it for me. romaine bostick is stepping in next and we look at the challenges facing china in particular. this is bloomberg.

caroline: i'm caroline hyde. romaine: i am romaine bostick. joe: and i am joe weisenthal. caroline: a snapshot as everything closed in the green. joe: the question is, "what'd you miss?" caroline: florence takes aim at the carolinas and some key crops are in the eye of the storm. we will see how devastating the storm could be for commodities. then, why one of the biggest bowls on the street says tesla is no longer a good investment. meanwhile, trade talks continue in washington. canada's foreign affairs minister is back at the u.s. representative building in hopes of making a deal. she is back in washington and using her favorite word,

productive, to describe ongoing nafta talks. there is no hint of a deal in sight. that is not the only trade front trump is posturing on. there is still china to deal with. >> there is a broader question to be asked about with the tension of the united states and so-called china. many of the investors are not changing their position. china have an agenda and they have executed well. >> this long-term game plan by the chinese to shift the center of the universe from the states, all the proper trade and goods tariffs, it is missing the point. >> we will really start to see trade impacts come clear. >> the more fundamental question to ask is where is china in terms of global approach. -- wheres what negotiating will take place and where the war is fought. caroline: the trade war has raised plenty of concerned, but now terrorist against an

emerging market rout has emerged a what if game of bad news scenarios. we try to map them out. through which countries we should be looking at who could be in the eye of the storm that's only from china but from the em front. tom: there's good and bad news. the good news is that the countries that look most vulnerable in the yen context, the ones with the biggest external financing needs are basically a different group to those who looked most vulnerable on the china trade front. em vulnerabilities, we are looking at turkey, argentina, south africa. they are the names featuring most prominently. brazil is also up there. --the china, trade front china trade front, they have

locked into the asia manufacturing network which would be hit by u.s. tariffs. the economy of taiwan there, thailand, korea, malaysia. there is not a huge amount of overlap in terms of vulnerability to the em risk and the china trade risk. the bad news is if the u.s. does push ahead with tariffs on $200 billion in goods, then the trade war starts to get serious and an entirely new set of countries will come into trouble. joe: there are so many moving parts to the global auto supply chain. it's not just north america, of the big concerns dangling out there, what is the one that presents the most risk? >> there is definitely one lever we're not seen pulled which is

-- could cause a shadow we plan to fallout if you will. if the chinese government wants to put the hurt on u.s. automakers the way they have done in the past with japanese and korean automakers, we see big geopolitical fights between china and those countries, you have seen protest at dealerships. years ago, when i was in japan, a toyota showroom has been lit on fire. we have not seen that yet. we have seen gm and ford not do so well lately, but we're not necessarily seen that coming in the form of crazy actions like that protest at dealerships. romaine: i have a question for tom. how much of what is happening when you look at the auto sales in china and other business issues in china, it seems like they are trying to divorce themselves from the u.s. or from the western trading relationship which would sort of skew the whole point of what the trade war is trying to accomplish,

right? tom: right. for china, and i think there is , of coursejectives the policymakers want to minimize any drag from trade war. at the same time, there is this burning desire to develop domestic champions. china would love to see some of byd --ystic people like they're domestic people like byd play a more dominant role to get into the market and go with the fords and gm's of the world. we are seeing china's policymakers kind of allen's ande competing objectives find a win, win situation. that involves opening up the domestic our market to the countries which are not confronting them with extreme tariffs. joe: could we open this up and talk about christopher nolan --

crista freeland. who stands most to lose if canada does not join into the deal? craig: it is interestingly the case that toyota and honda have a significant amount of production up north of the border. you also have gm making chevrolet equinoxes. that is their top-selling suv for the market and would be problematic. they double source the vehicle from mexico as well. there would be a little bit of a cushion against too much of a disruption, but it would be bad for them to have a huge, of veryt source important model for them. you also have parts and some vehicles -- of some vehicles coming north of the border as well. if we were to see this fall apart with canada, it would hurt the droid along with the japanese carmakers. caroline: great companies to watch and deals to watch.

craig, tom, thank you so much. coming up, a court ruling in brooklyn changes the game for initial coin offerings. details on the crypto world, next. this is bloomberg. ♪ ♪

caroline: regulators are circling around cryptocurrencies again. a federal judge ruled initial coin offerings fall under u.s. security source. the sec took action against two companies dealing with assets charging them with misrepresentation and acting without registration. let's bring in our bloomberg crypto reporter. -- which is a long time to have them come out and they have. >> this was the first time they

had a criminal case in the u.s. federal court in which a judge ruled securities laws could apply to ipo's. had civil, is that the issue? >> this is the first criminal one. yes, that is the distinction. there was a case where a guy had to ipo's and he was arguing they were currencies and because they were, they were not securities. the judge set hold on, just because they are currencies and you think they are does not mean we think they are securities. what will happen next is it will go to a jury trial and they will decide the outcome. the judge set a reasonable jury to determine that securities laws could apply. >> how are folks reacting to this? lily: there was not a huge selloff today. that started last week. we will see. it does not come as a huge surprise to the crypto world

because regulators and the sec have been saying for quite a that and warning people these things could be securities and could be a a lot of the legal security offerings if you're not registering with the sec. joe: most of the stuff regulators and law enforcement has gone out there, it is pretty shady stuff. the stuff most people talk about, institutional stuff, most of that has been ok, right? lily: yeah. as you mentioned there were two other enforcement cases from the sec a touch on what you said. the first one was this company like a walmart for ico's and they failed to register as a -- and withr also handling digital tokens, they were deemed as securities. the other was a crypto hedge fund. caroline: we will have plenty

more to come. this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

mark: i am mark crumpton with first word news. president trump says he expects hurricane florence to be among the worst storms to ever strike the united states, but that the federal government is prepared to respond to the disaster. the president spoke to reporters after seeing an over office briefing from the heads of homeland security and fema. >> hurricane florence and other tropical systems that will soon impact the united states and territories, safety of emerging people is the highest priority. we are sparing no expense. we are totally prepared and ready. we are as ready as anybody has ever been. mark: the fema administrator

warns that florence will be "a " and he saysvent electric power could be out for weeks. the canadian for minister says today's nafta talks were " productive and constructive." she says there is good will on both sides as the u.s. and canada try to reach a deal allowing canada to remain in a north american trade block. in the meantime, in winnipeg, justin trudeau weighed in on the status of the talks. >> we know this area -- there is a good deal to be had. indeed, trade is not a zero-sum game. it is very possible and even common to get win, win, win out of international trade deals. mark: in washington, prominent members of congress warned the trump administration that it not proceed under its current asked track path without a trilateral deal.

hungary's prime minister strongly rejected criticism of its government policies as european union policy makers determine whether to sanction them for undermining the values. in france, the prime minister said hungry -- of hungary said hungry was being attacked for its tough immigration stance. the prime minister said " whatever decision you make, hungry will not given to .xtortion it will defend its borders and stop illegal migration and protect its rights if needed from you to." the u.k. and eu are preparing for a special summit to sign the brexit deal in november. the meeting could be announced within days. that is according to people familiar with the metal. negotiator still new -- matter. the eu is preparing to schedule a one-off gathering in mid-november so leaders can formally agree to the terms. today is the 17th anniversary of

the 9/11 attacks. ceremonies and moments of silence were held in new york at the pentagon and in pennsylvania. president trump spoke in pennsylvania calling the field where united airlines flight 93 crashed a monument of american defiance. he said passengers fought until the very end. 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. romaine: hurricane florence is barreling to the east coast and farmers in the carolinas are bracing for what could be the most powerful hurricane to hit the area in 64 years. joining us with more insight is our agricultural reporter live from washington. alan, when we talk about hurricanes, we talk about oil rigs and refineries. this time, in the path of the

hurricane, we talk soybean fields, cornfield, and what type of impact will we see to some of these commodities? alan: you are looking at a different region of the country. you see a lot of poultry and halt production with agricultural infrastructure -- hog production -- production with agricultural infrastructure. you see some companies taking a lot of preparation to weather the storm. joe: how do hogg farmers with hundreds of thousands of pages deal with a storm like this? alan: you have these larger operations and you want to make sure they have electricity and water. these are animals and living creatures just like us. you have to make sure they have adequate food and nutrition. you can also make sure your barns and pen, wherever you are housing these animals, that they are strong enough to withstand the storm. the smithfield announced they peel -- feel they are prepared.

that is what pushed hog futures down a little. when you take a look at the weather forecast on how severe the storm could be, the fact were you have a north carolina sized storm approaching north carolina, you have to worry if any infrastructure can impact the impact -- can withstand the impact. caroline: this is going to be my first thanksgiving in the u.s., and i'm hearing there are plenty of turkeys in that part of the world as well. maybe we are not too worried because [indiscernible] romaine: maybe you could tell us a little more about that, alan. carolina is one of the largest turkey producing regions, right? alan: yes. along with others. there are indeed turkey inventories. a couple of years ago, you had avian influenza in the united states and this is an industry that has seen it up and -- up and downs.

you have seen emphasis on stockpiling the turkeys which may be what thanksgiving is this year. caroline: alan bjerga, thank you. bonds aretrophe climbing more than $11 billion this year, on track to eclipse 2019. deals -- sales in ourmore, let's welcome bloomberg opinion columnist. i do not think we ever talked about catastrophe bonds. maybe around party, but not enough. we are basing this -- how would you describe it. bondsnk about catastrophe until you have a massive earthquake or hurricane. when i was digging into it, this was pretty remarkable because you had this record issuance last year and this year, and you

have this market that has never posted a negative, annual total return. that is pretty wild. quiet been a fairly hurricane season for a while. even last year it was a big drop and came back. joe: big portfolio managers -- withmething positive positive expected returns but is uncorrelated to the market, interest rates, bed, whatever, and something that is correlated with whether is kind of like the perfect thing. brian: it is the perfect storm you could say. [laughter] brian: essentially there is no correlation do business. hurricanes have no relation to corporate earnings and this is a really solid investment that has fairly high yields because it is a sort of newmarket people are starting to wrap their heads around. this is not a typical market for a mom-and-pop investor. this is for the sophisticated investor. romaine: but nothing is coming

for free, right? there has to be risk they can. brian: totally. thecurrent spread between average coupon on 2018 sales and expected loss is at an all-time narrow level. the cushion is not there like it once was. at the same time, people take comfort in the fact that there are very specific clauses triggering these events. strategist, as one pointed out, you could lose money on wind damage but not necessarily flood damage. in the case of potential storms like florence, you can see some losses but not potentially affecting your bonds. caroline: is this going to be an expanding area we see get more and more issuance into? we ares as though getting more and more tragic weather events. brian: it is really interesting. bond agencies expect because of climate change, for more of these hedges by insurance

companies to be issued in the market. at the same time, fewer of these new bind the sales are getting more comfortable with the risks embedded in these assorted catastrophe bonds. before, they wanted the agencies to weigh in and say what is our real riskier. joe: they are thirsty for the bond. brian: yeah. now they say we understand the risk and we can see how you get a lot of solid returns over the past years and don't need you anymore. romaine: famous last words, right? caroline: someone say perhaps perhaps they have seen quite enough last time. brian, thank you. coming up, pumping the brakes on tesla. on thethe biggest bowls company's downgrading the stock and he joins us ahead for the details. this is bloomberg. ♪ this is bloomberg. ♪

caroline: a quick check of the latest business flash headlines for you. boeing has ramped production of a 737 and taking a year low. have and tackling production snags on their larger source of profits. there was a report the german government is open to the idea of a merger between deutsche bank and another. the report said the finance minister could visit such a merger. the ceos of both banks are open to a merger. another bank has sacrificed one of the ceo top deputies to try to restore public trust after a money-laundering scandal. the chief financial officer is

stepping down and agreed to pay $900 million into money-laundering and other corrupt practices. that is your business flash update. let's talk tech. apple unveils new iphones and other products at the event tomorrow in california. mark gurman reports. disputing the no hype that surrounds an apple product launch. year, anticipation reached a fever pitch as tim cook stepped onto the steve jobs theater to -- the stage at the steve jobs theater to pitch. it was touted as the most significant upgrade in the iphone's tenure history. >> an incredible new design, base id, and more powerful technologies than we have ever put in an iphone before. >> so, how will this year's event compete? the iphone x is here to stay.

we expect three new models that will look and act like the iphone from last year. the first will be the iphone x s coming with a faster processor and upgraded camera. there will also be a large screen version of the iphone expected to come with the name iphone x x-men's. max. -- x s while the phones are significant to apple's bottom line, do not expect to see any major breakthrough features. those will come next year. apple hopes these new phones will appeal to a greater array of consumers and boost sales of accessories and services like streaming music and video to get the company a step closer to becoming the first publicly traded $2 trillion company. no big new unveil, however, average selling price and we are a getting -- we are getting excited. romaine: that seems to be their

strategy, and it will keep investors happy. joe: not a big upgrade, but higher cost. i can't wait. i'm so excited. [laughter] joe: so excited to get something that's roughly exist for a higher price. caroline: that is called inflation. china will only make it worse. don't miss out on our special coverage of apple's big product event starting tomorrow at 1 p.m. and consuming -- and continuing drop a day. hong kong's index are falling into a bear market -- is falling into a bear market. had -- nausing this, i ext. this is bloomberg. ♪

our asia timeout for head. what -- where do we start? >> everything is a problem with

what is happening in hong kong. technology stocks, we had an analyst saying he would not touch stack -- touch tech stocks. we are now seeing the index plunging more than 20% entering a bear market since the january pick -- peak is not only that. growthre fears about the in china. you can also see the gaming stocks plunging it does no one wants to invest their. -- there. you are seeing the shanghai composite underperforming the msci world. joe: hong kong has the economics of china of an em but has the monetary policy of the u.s. because it pegs the hong kong dollar to the u.s. dollar. do policymakers do anything reciprocal there or do they let the chips fall? shery: not so far. they have been good in going

along with what the u.s. is doing and pegged to the u.s. dollar. we have not seen moves ahead from that side. the moves that we have seen are from the chinese mainland to curb the downside in the shanghai composite. every time we see the downside in the shanghai composite in the last few minutes of trading, the national team comes in and kick thing up -- kicks things up. we are showing liquidity in the markets in aggregate financing. they have been up. not as much as before, but in some form or another like media term lending facilities or other tools. romaine: with all of these measures, you would think you would see a little more activity going back and. what is sort of the consensus -- back in. what is sort of the consensus about this market? shery: everything has to do with the ongoing looming trade war with china.

if you see any to analysts talking about china, they say we are not confident until things get sorted out. that is expected to last and we seeing the chinese currency being hit or taking a hit by president trump's comment. joe: you mentioned the tech stocks and people know about the big weakness. what other sectors do people have an eye on in hong kong? shery: real estate, banking, and as i was mentioning today, bank stocks. totsche bank was latest downgrade the revenue forecast , and had growth of only 4% instead of 11% because of concerns over the vip segment which says a lot about how they expect the chinese economy to do in the next year. people with money coming to bed. they are not so confident. caroline: no more gaming, no more tech, we will see how hong kong there's.

you will be coming that -- fairs. you will be covering that later. downgraded from bowl -- from one of their investors. you say this is still -- one of their bull investors. you say this is still -- >> fundamentals for the company have never been better. i think you'll see when they report in october, they increase production and delivery than doubled the outlook for q4 being positive. they will be profitable. from a fundamental standpoint, i think it is all good. joe: could elon -- you mentioned some of the concerns. the tweets, thailand being a pedophile, the smoking pot on

camera, could elon keep doing that but also crank up the number of cars and win back over wall street? romit: i do not think so. lost a tremendous number of executives over the next -- last month. that coupled with serenity gave your is giving the market the strong impression there is instability inside of tesla. about this behavior continuing and the impact it will have on tesla's brand which is arguably the most valuable asset. romaine: a lot of people were invested in the stock not just because of tesla specifically but for the future of electric cars. if you still want to make the trade and investment, if you are not in tesla, where would you go? romit: i happen to cover the semiconductor sector and there is a lot of companies supplying indirectly into tesla. like st micro,es

a company in japan called tdk. microchip is another prominent supplier into the automotive space so that is another angle. joe: going back to when you were really bullish, elon has been elon for a while. -- and the executive turnover has been the story for a long time. caroline: full is the tipping point? romit: for me, it was the resignation of the chief accounting officer on friday. my background is in tech and dave martin, we know as a very well respected executive who spent 20 years at his other the company and lasted 30 days at tesla. that was an issue. i think the flips and switch for him, if you look at his tweets per day, starting in may, it went up to 15 times per day versus four times per day in the prior 18 months.

we have this attack on short-sellers among other things. i think it has created a big distraction. if you are the long-term investor, it is hard to stay focus on fundamentals while this is going on. joe: the chief accounting officer in his departing comment said he could not deal with all of the publicity which is hard to believe because tesla is tesla. do you think there could be something more there or do you take his statement at face value? romit: i take it at face value. i do not believe there to be any accounting shenanigans. i met with their cfo back in june. very qualified incredible. this idea the company is cooking think it is do not fair or accurate. i think you have a culture here that is fast-paced. people burned out. i think what elon has done over the last couple of months has not certainly helped with employee retention, but it is

just that. i do not think it is anything more sinister. romaine: if you were to keep you on as a focal point of the company, management, but build on -- an executive team around him that is more disciplined, would that change your view on the company? romit: elon is inseparable from tesla and the brand. or take ae to leave lesser role, it would be devastating for shareholders. a comeeds to happen is to jesus moment for elon. caroline: an apology? you said stay on the sidelines because of elon. romit: just focus on growing tesla. that is it. you look at tim cook or mark zuckerberg, or jeff reseau's, you don't hear about them in the headlines like this -- jeff bezos, you don't hear about them in the headlines like this. he has taken tesla to a point we

cannot imagine and there is room to grow. caroline: thank you. he moved has low down to a neutral. breaking news, geoffrey dunn -- speakingg out out about the divergence of u.s. and other markets as a 2018 hallmark. he has also been talking about how, on the webcast job creation is down from the last obama year. this is interesting considering everything we had from the white house yesterday. joe: it is certainly a different measure. romaine: you certainly wonder why he is waiting into this. joe: well, we are talking about it and he is good at that aspect. that is your answer. caroline: don't miss this, the european commissioner delivers his state of the union address. joe: and i will be watching the fed beige book at 2 p.m.

caroline: and apple -- romaine: and apple announces its new unveiled. that is all for "what'd you miss?" romaine: "bloomberg technology" is next. joe: have a great evening. this is bloomberg. ♪

i'm all about my bed. this mattress is dangerously comfortable. when i get in i literally say, ahh. introducing the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online. we'll build it, box it and ship it to your door for you to enjoy. sleep on it to up to 100 nights and love it or you get a full refund. returns are free and easy. i love my leesa. today is gonna be great. read our reviews, then try the leesa mattress in your own home. order during our extended labor day mattress sale and save. for a limited time get 150 dollars off

and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. emily: i am emily chang in san francisco. this is "bloomberg technology." the crypto crunch , digital currencies have taken -- the crypto crunch, digital currencies have taken hit. we ask where is the crypto roller coaster heading next. plus, a countdown to the next iphone refresh. we will preview wednesday's big launch. and, president trump expected to roll back methane