midterms, what really matters is the fed is tightening and it does not really matter how fast that is in the next year. >> and there you have the closing bell. stocks closing lower off the worst levels of the session. we were talking earlier about how the headlines and the president will make some kind of announcement presumably on the announcement of trade. gaining the market -- giving the market reason to sell off a bit in the afternoon. see -- whether we have the tech stocks. interesting to see whether app -- apple did rally. joe: i did not mean to interrupt, but it does mean how difficult it needs to be to entangle the stories we get on trade with the market moves. you expect apple in light of the fact it will not be affected by

it just shows how difficult the challenge is. >> something that surprised me, our bloomberg colleagues broke this and they said there was likely to be this high tech sector. that amazed me that we have $12 billion of imports coming into the u.s. with $200 billion in just fitness trackers. >> absolutely. we'll see how it all plays out. again the president to make an announcement at some point after the market closed on trade with china and we will bring those to you when it happens. we should also mention the u.s. dollar is weaker as well. with the weaker dollar you generally tend to see the commodities get a little bit of a lift. that hasn't happened today but oil certainly is top of mained here with opec meeting this week. >> interestingly we were hearing from the opec leader earlier today. he had an exclusive interview with bloomberg and of course was in dubai talking about oil demand in particular. >> cut into demand, which at

the moment is robust, despite some of the head winds but in the medium to long term. beginning to , is face some head winds as a result of extraneous factors that we have little or no control over. >> matthew, your view on oil? because today with trading lower there has ban head wind we think demand will slow but opec doesn't think that will happen. >> it goes back to the currency point you were making before to a certain extent. one of the defining features of the cycle is the strength of the u.s. dollar we've seen over the last year reflecting unorthodox policy choices, fiscal stimulus late in the cycle has helped stimulate the economy, push up rates, strengthen the dollar. it's been a head wind for commodities. secondly the talk of tariffs has been fwood for the dollar

and a head wind for commodities. putting that to one side oil came off a number of years where it was at a price too low to incentivize a lot of investment and what we hear from the oil field services companies is there has been a degree of under investment. it is not just the demand side that matters for oil but the supply side. that's what we're keeping a close eye on. >> going back to where we are in the cycle, you mentioned upside risk to oil prices. what else do you actually like here? >> so less a question of what we like because at the end of the day we're late into a cycle and it is more a question of what is the least worst choice and what has a margin of safety in terms of where we can put capital. if you look at some of the bigger investments it tends to be things that have been actually out of favor over the last handful of years. we do have a substantial position in gold. t's around 11 -- gold is basically back to its 2007 lows relative to the broader equity market. outside of that if you look at

some of the larger equity investments we have companies that are resilient cash flow generative businesses, often that are close to their five-year lows versus the broader market. and so if you don't like where the market is overall bottom up you can craft a portfolio that has a better margin of safety. >> what are the conditions under which gold thrives historically? >> if you look at the history of gold since the early 1970's gold tends to have been most expensive in a valuation relative to other assets when risk perception is high. and cheapest when risk perception is low. it tends to go up when real interest rates come down. it tends to go up when the u.s. dollar weakens. so when there is a growing sense of risk perception gold tends to do its best. over time it can't be printed so while it doesn't have the yield --. >> so not so much about inflation or deflation but when people are worried? >> well, it is a combination. its value relative to world g.d.p. is going to reflect risk aversion but over time as we're

pumping the prime and growing money supply we've got inflation, prices are rising and gold price tends to rise with it. long-term inflation is good for gold. short term what matters is how scared are people? >> obviously you like gold. how do you view international markets? is it a defensive move as well to go look outside the u.s.? >> we go wherever we can find what we believe are good businesses with a margin of safety and price. the u.s. does not have a monopoly on great businesses. the fact the dollar has been so strong means we have an opportunity to look overseas in more depressed currency areas or in, with companies that are cyclically out of favor. the idea is to buy businesses that have scarce market position when they're out of favor and there are plenty overseas. >> i'm going to bring us back to u.s. focused investment right now. or kls coming out with the numbers after the first quarter. adjusted 71 cents.

the estimate was 68 cents. we're seeing the revenue at $9.2 billion. slightly shy of estimates. but this is basically no growth whatsoever in terms of year on year, quarter on quarter. 9.21 was what they made in the fiscal year 2018 and now we're seeing 90's 9.2 billion. so they have increased authorization for share repurchases by $12 billion. the shares though trading off by four percentage points. >> not much of a boost there from that announcement. even with the buy back. when you hear about companies like oracle reporting results do you look at that as a cyclical kind of company o oracle or is it more of a structural play on technology, kind of changing the scope for how you should invest? >> oracle is a good example as the kind of company we invest in. it is one of our larger investments. we focus less on the short-term quarter-to-quarter results. oracle is going through a choppy transition from selling licenses up front to selling

them via cloud. at the end of the day oracle is strong that has very near market share in relational bases. it is a strong balance sheet and management is using that cash flow as you just mentioned to buy back a lot of stock at an attractive price. in a world where interest rates are 2% or 3% to be able to buy into a business like oracle with a free cash flow yield of 6% or 7% is quite attractive even if it only grows mid or single digits. >> thank you very much. you do own shares of oracle, oracle trading lower after the latest earnings report. we have another company due to report moments from now, fedex also reporting its first fiscal first quarter numbers. the company does seem to be positioned to deliver some big numbers. for more on what we can expect let's bring in bloomberg intelligence senior analyst who joins us from princeton. lee, what is the number you'll be focused on here? >> i think it is really what is

going on in the express business, express accounts for about 55% of the company revenues. expectations are for margins to increase around 200 basis points to 7% to 8% of ebitda margins on an adjusted basis up about 5% of lass year. i think that is really going to be the big focus. it is wh or not, how well they're integrating the tnt acquisition they made, which is kind of hurt by a cyber attack which happened in europe last year. now tnt is fully integrated into the system and they'll get definite synergies in europe. and the cross-border business in europe for fedex, u.p.s., and deutsche post has been very good. but, you know, what has been not so good are rising costs like for people and for fuel and for equipment. >> i was going to ask you about that, lee. you mentioned cost of people. how does the well known inflation or bottlenecks we're seeing in the transport sector articularly trucking play with

fdx? >> fedex is one of the largest truck load providers in north america. hey're actually benefiting from the pricing increases. anywhere on the market from 8% to 10%. it's a pretty -- what is going o pr pressure that is the, call it chicago to dallas. if they're not doing it within their own network those costs are going to go up and they have to offset those costs because right now truck load capacity is really at a premium. >> very quickly do you think the trade can in any way affect fedex as we look for more headlines to come in after this market close? >> well, i mean, obviously a lot of headline risk for fedex and other global logistics providers but we don't see it being a huge head wind for their earnings over the next 12 months.

certainly it will create a lot of noise and trading will go around that noise. >> thank you very much for joining us from fedex due to report in a couple minutes. oracle just reported and the stock is lower in after hours. trade after first quarter adjusted revenue missed the average analysts' estimate. $9.2 billion was the reported number and $9.26 billion was expected. oracle also announcing it is going to buy back shares or has an authorization to buy back shares for $12 billion. that does it for the closing bell and for me. this is bloomberg. ♪

> let's have a quick snap shot on how u.s. stocks closed today. lower. the worst day since the end of july for nasdaq. we saw tech really under pressure down spoy 6 on the s&p 500. tech lower. >> the question is what did you miss? >> trade tensions hit stocks again china saying it will reject new trade talks if president trump moves ahead in the next round of tariffs on chinese products. saudi arabia is getting into electric cars, investing $1 billion into the company. we'll talk to the company c.e.o. fall? t is in store this we'll talk to the c.e.o.

waiting for that news the market is now closed and president trump had promised an announcement on the trade after the final bell. let's bring in the chief economist for bloomberg economics, very pleased to say he is live in new york and the analyst at eurasia dwrupe is with us as well. tom, is it going to be $200 billion in imports affected, could there be any outliers here? >> i think we'll see and we probably won't have to wait that long for an announcement. the indications seem to be that it is going to be tariffs of an additional $200 billion. the signals seem to be it is going to be a 10% tariff rate, a little bit less than the 25% they put on the first 50 billion. >> why? tom: i think it could be giving them wiggle room going forward. if you go in at a high level and this was something i was talking about with jeff before we came on air, the space to ratchet up is a bit less. if you come in at a low level

you've got space to go higher without expanding that list of tariffs and potentially snagging more of your iphones, and more of the things that would hurt u.s. corporate earnings. >> how does china respond in your view? jeff: i think the first response some countertariffs from china. they've laid out roughly 60 billion in tariffs. the really interesting thing is i think going to be the nontariff responses we see from chinese authorities. that could be anything from making it more difficult for u.s. companies to get licenses in china to, you know, not certifying their businesses there. >> we haven't seen that yet. people have been warning about this for a while. the asymetrical response to tariffs. do you believe it is only a matter of time presuming the u.s. continues on this course? >> i think the chinese are in a dilemma here. they can't go any further with tariffs. so they need to do something but they also have to balance that with the need to not alienate us is companies and other european and japanese

companies that are doing business in china. caroline: we have got breaking news. fedex first quarter earnings per share 3.46. the estimate was $3.80. the fiscal first quarter revenue though $17.1 billion coming in slightly ahead of where the market had been expecting. this is a company doing heavy lifting in terms of margins because they have to pay out a little more. in after hours trade the stock is down 3.4%. >> we'll continue to monitor that as more headlines come. caroline: let's return, tom, we're still trying to work out when the headlines might be coming from china but were you surprised by the fact that the tech community does get more breathing room here? tom: i think it goes to the big challenge facing the trump administration, right? how do you punish china in a world of interconnected supply chains? how do you punish china when

china is the spike of production for the iphone, when china is the main customer for, or the main gross market for goods from nike trainers to cars from g.m. and ford? if you want to really send a deterrent message to beijing without having that big negative impact on some top u.s. corporations, that is going to be increasingly difficult. >> what is the next bag of ammunition the u.s. would have if they go forward with this $200 billion in goods? tom: i think there are two potential options. one is a ratcheting up of there i was. we start at 10%, go to 15%, 20%, 25%. the next is an expansion of the thriff list. china sells around $500 billion in goods to the u.s. each year. if we go 50 plus 200 or 250 that still leaves 250 to hit with there i was. the difficulty of course is that the broader you go, the

harder it becomes to create exemptions from the big u.s. corporations you want to protect. >> do you think we'll go all the way there, full tariffs on everything? jeff: i doubt it. >> what short circuits it? where are the brakes in the system? >> i think the big one is corporate earnings, as tom said. the big u.s. companies that do a lot of business in china will report earnings that are down at least in part on these tariffs and that i think is going to cause trump to think twice about going further. where i do think we could see escalation is on a higher number on the tariffs that he is presumably announcing shortly. >> do you think these tariffs, that the tack he is taking is going to be weighed within the context of corporate earnings on the stock market or is it going to be still stuck in the political realm? >> well, i think it depends who you're talking about. for congressional republicans the concern is all political and connected to the midterms coming up in 50 days. for trump and especially people

around him, all people that come from the markets, so i think it is a big concern for them. >> tom, you know china as well as anyone. we've seen a lot of weakness now in the chinese stock market falling to a four-year low. how much of that is -- tom: i don't really understand what drives the chinese -- >> i don't really understand what drives the chinese trade market. how much is related to trade anxiety? tom: there is certainly -- the fundamental driver of china's market right now is the deleveraging agenda. so much after the financial crisis, enterprises, local governments borrowing a huge amount. a couple years ago ping decided it was time to put an end to that and since then we've seen a real slowdown in credit growth. now that slowdown in credit growth is starting to drag down growth in the wider economy and having a big, negative impact on the real estate developers,

the banks, big industrial firms that dominate the shanghai composite index. we're here coming out of d.c. -- we hear coming out of d.c. this idea chinese stocks are down and u.s. stocks are buoyant therefore the u.s. is in a stronger position to win the trade war. i don't agree with that narrative. the problem for the china stock market is the deleveraging agenda. if the trade war gets serious they can turn that around. caroline: fantastic insight. thank you. we thank you both. a quick look at the fedex results. they weren't as good as had been expected. we were expecting some 20% growth in fiscal first quarter adjusted earnings and they missed coming in at $3.46 rather than $3.80. however, they are boosting the year outlook. we're down by just 0.3% now. revenue came in slightly above expectations with growth of more than 10%. we'll keep a close eye on fedex for you. this is bloomberg. ♪

caroline: hurricane florence is tearing into the carolinas already dumping more than 30 inches of rain killing at least 17 people and costing $20 billion in damages. it is not over yet. for more let's welcome bloomberg's taylor rigs from the ground in raleigh, north carolina. what it is like on the ground? how are people preventing the worst case scenario for themselves? >> you are right. it is not over yet. caroline, we've been here at duke energy headquarters in downtown raleigh at their command center. they were here all day saturday. we were here sunday. they've been here all day monday. it has been quite a scene. i just want to give you some of the latest updates. about 25% of their customers

lost power about 1.5 million customers. they just came out with some updated numbers. 1.2 million have been restored. that is a decent increase from yesterday when only about 800,000 customers had been restored. just less than about 300,000 still remain without power. to do so they've deployed about 20,000 crew members. to get going, to get that number lower. as you mentioned the estimates for damage according to some of the experts we have been speaking to are about $22 billion. rmally it would be about $12 billion. that extra 10 billion is because of the flooding. as you know there are three rivers converging into the state and the flooding has been the biggest concern here. in the farming industry as well, may also get a $1 billion hit. a lot of unknowns and the flooding is expected to continue. it may not peak for another few weeks. there is going to be a lot of wait and see. >> taylor, prior to the hurricane coming there was a lot of concern about

environmental damage related to all of the industry in the region, even the hog farmers. what do we know about that right now? taylor: right. there has been a lot of concern especially today when the environmental protection agency came out with a statement saying they thought they found a second breach and now we ran over and spoke to the company. the good news is we're here. we tracked them down and they did give us a statement, pull up the quote from a spokesperson here at duke energy and said the e.p.a. was referring to a same event, not a second breach. they wanted to make that clear. not a second failure. there is a lot of water and ash that has washed from their property into an adjacent industrial property and that they had seen a visual 100 ction of about a 25 by square foot area where some material settled. sort of reiterating this was not a second failure but more of the same containment area that had been breached earlier. there were a lot of concerns.

i asked david fountain, the north carolina president of duke energy when the first site was breached and here is what he had to tell me yesterday. david: it's nonhazardous. we believe that most of the material was contained on site and we certainly have confidence that it has not impacted the environment or public health and safety at this time. our team is actively managing that. once the flood waters recede we'll be able to get in and perform some minor repairs there. but right now we're very confident in the safety of the public and the environment. >> joe, as you were mentioning some of the preventative measures they're trying to take was drain water earlier so that the plants could hold or have a great exearsty to hold water when they start to feel that a flood was coming in. but again, these waters have to recede before duke energy says they can go in and really start to even inspect the site.

caroline: we thank you, taylor riggs for sensational reporting. you've been there throughout the week and of course in the command center for duke energy in raleigh in north carolina. we'll be keeping a close eye on taylor and hoping she stays safe. now, of course, half an hour after the markets closed we're still bracing ourselves for the headline to come. we understand there will be a headline coming from the white house related to china trade. we'll be keeping a close eye on whether or not paris will be im -- tariffs will be imposed on some $200 billion of chinese imports. nothing yet has crossed the terminal. coming up the crypto crunch. we'll discuss where the digital currency rollercoaster is heading next. this is bloomberg. ♪

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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. reporter: i am mark crumpton with first word news. president trump says a little delay may be needed on an upcoming senate judiciary vote on the supreme court nomination of judge brett kavanaugh, but the president is predicting it will "work out very well." the president facing questions about kavanaugh, following a woman's claim that the judge sexually assaulted her at a party when they were in high school. senate majority leader mitch mcconnell says republicans will review the accusations "by the book," but he questions whether the judiciary committee's ranking democrat, diane feinstein of california, held onto the information. accusation which the

ranking member of the committee of jurisdiction has known about for at least six weeks. yet chose to keep secret until the 11th hour. -- neither heany or any of the democratic colleagues chose to raise this allegation during the bipartisan calls with the nominee. reporter: both judge kavanaugh and his accuser say they are willing to testify under oath. north carolina is grappling with the remnants of hurricane, now tropical depression florence. floodwaters are still rising. roads are closed across the state. many people are being rescued by coast guard and other crews. the storm is so far blamed for over a dozen deaths. >> please don't make yourself someone who needs to be rescued. inin, stay off the roads most of the state, especially south of u.s. 64 and east of interstate 73-74.

many roads in our state are still at risk of floods. mark: at the noon briefing today, governor cooper says as of this morning, a little more than 484,000 north carolinians didn't have power. being oneould end up of the 10 most destructive storms to hit the united states. economists at moody's analytics estimate it may result in between $17 billion and 22 billion dollars in lost economic output and property damage, and say estimates could be revised significantly higher. russia is disputing allegations isthe united states that it cheating and undermining united nations sanctions against north korea. the russian ambassador to the u.n. says the work of the independent panel became "increasingly politicized, then became ultimately the hostages to the vision of washington," and didn't take into account russia's views. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton. this is bloomberg. joe: "what'd you miss?" we have been talking a lot about crypto troubles in the last year. we talked about bitcoin and ethereum. size is really an important factor in what has happened in the crypto carnage this year. this is a chart of the ratio of the small-cap crypto digital assets versus bitcoin. to can see that from january now, smaller coins have just gotten of glittery did relative to bitcoin -- obliterated relative to bitcoin. smaller ones have done far worse. for more on cryptocurrencies, i want to bring in andy bromberg, coinlist cofounder and ceo. coinlist helps companies raise money for initial fund offerings

or ico's. just straight up, how has this year's market affected your business or platform for ico's? i think last year, we were seeing almost every ico soaring through the sky on a lot of this year,and on -- a lot of them going into the ground. i think that is consistent with a bifurcation between high-quality projects and low-quality ones. investors are beginning to understand how to do due diligence. last year everything was going well and they would invest in anything. this year, it's a lot harder to get at attention if you are a low-quality project. joe: quality aside, do you still see a comparable level of overall investor flow onto your platform? >> absolutely. if you look at the numbers last year, $6 billion went into ico's. this year, looking at about $15 billion so far and we aren't even all the way through. i think there is an increase in

attention because there's different types of coins emerging, different categories making gains in the space, not the same models as last year. >> why do we need so many tokens in the first place? [laughter] >> good question. i don't think we need that many. new technology. , this explosion of attention a lot of them are lower quality and don't look great but people invest in them anyway. this year, we are seeing high-quality ones making significant gains. last month was the worst month for cryptocurrency aren't -- ico's longtime, consistent with high-quality projects still raising just as much. but the low-quality ones are not raising. that seems like a good thing to me. >> we are looking at the performance of ico's this year, we are looking at the drop in overin -- bitcoin pricing the past few months, is this just a transitory phase? there are some people looking at this as the eclipse that ends the whole experience. >> absolutely.

it is a nascent market. i see of has only been around for a couple of years. it will go through cycles. we have seen massive spikes and crashes in the market every year since the beginning. and the early years, bitcoins bike to $31, then crashed back into the single digits and people thought it was over. it is going to be cyclical for a long time. people understand the market better and things even out. caroline: you say it's good for top-quality. you have had how many current ico's on your python? -- platform? >> we have had>> five, out of more than 2500. caroline: are these going to be classified as securities? how is the regulatory viewpoint? how does it shift your own model?s >> we made an assumption from the very beginning even when no one had really talked about the regulatory status of cryptocurrencies in the government that we should do

these as offerings of security. it was the safest path forward. even if the underlying token will eventually be liquid moving around in the world and want to be a security, we said we will work with sales offering securities upfront that might turn into a long security in the long run, just to be safe and compliant with regards to regulations. joe: not a single a.c.l. i believe has actually turned into something that is used or a thriving community. it is all speculative. still, nothing actually taking off as a project. when you see that investors have gotten better at about becoming more discriminating and doing due diligence and identifying a low-quality versus high-quality project, and lead of the lack of results for anyone, how do they identify a high-quality project? >> don't get me wrong, we have very few data points, less than two years old as the ico system does not mean a lot of time. that said, i do think we are starting to see earlier failure points for a lot of the sales. many ico's, those tokens are already dying early on.you can

look at those as negative data points . coins that much of this description have this advertising, and they might be this lower quality and we should not invest in them. i think that allowing to go for us to understand what a high-quality project really looks like, how to evaluate the teams, the market, the product. we are not there yet. reporter: if someone is pitching you on ico, what is the high-quality green flag you look for? >> for us, it starts much like you would a venture capital deal. how is the team, the product, the deal itself? people don't look at that. we think about the legal structure. the regulations in question, nature they have been thoughtful on the legal side.on top of that, there is a new category called token economics. these are markets. they drive internal markets for the community they are building, and they need to make sure the economic incentives are properly aligned.

caroline: how many people do you have to hire -- where are you getting the expertise from two free do these white papers to understand this new economic era? >> we found it is easy to filter out a large percentage of the projects out there. when you cut that down, you're down to a small set of people that might not be great projects for coinlist to work with, but our high-quality. that's what we look for. people with just a couple years experience is all you can have. people who are thoughtful around things like economics, game theory, how you can build communities. it is a new field of study, something no one has a phd in yet. that time will come, but for now we are working with generalists and experts. the playlist cofounder and ceo, thank you for joining us. coming up, the chief technology officer at lucid motors, agreeing to invest $1 million in the electric car startup.will it be able to compete with other automakers

? that's next. this is bloomberg. ♪ . ♪

caroline: getting back to the big story in tech. saudi arabia's sovereign wealth fund agreeing to invest more than $1 billion in the electric car start up lucid. cto of lucid the motors. how are you different from tesla? differentiated. if we look at the products available in the world today, tesla is doing a great job, it is a high-tech product, it is premium, and it is beautifully engineered, but not for luxury, just looking at the interior. that is where lucid motors is different. there offering a luxury ev,

world's first true luxury ev. we will put that into production in arizona. joe: you said very nice things about the tesla car. obviously, there are -- they're big problem is production capacity and the bottlenecks they have had, the difficulty getting the cars at the door. what are you doing differently have the capacity and not have those same issues once you are up and running? >> that's a great question. if you look at other automakers like bmw, nissan, toyota, we don't hear about them having production problems. this seems to be a unique problem. we will have a world-class team starting with a vice president of manufacturing, and we will manufacture cars to world-class standards in the u.s. >> one big difference when you're talking about manufacturing here, it's not just about the car, but also the infrastructure, the charge of these cars.

this was a big part of why tesla got so much attention for some time. it wasn't just the cars. how are you planning for that? >> that's a great observation. if you look at tesla, they are the vanguard for the movement of electrification, and they have no other option but to grow out this capital intensive network of supercharging. we are in a much happier position. we don't have to have that capital intensive burden. we are going to announce very shortly a great partner. partner with them for our supercharger, the first charging network, throughout the u.s. joe: peter, can you talk a little bit more about production capacity and how you are going to get that?are you going to need to raise more money to have a plant to produce your cars? >> not at all. that is what is really wonderful. the music to our ears at lucid is we found that most perfect

strategic partner in pif saudi arabia. create theligned to very best car in the world, a mouthwatering creation, which is really going to change the eb landscape.- ev we are going to do that in arizona. we announced today we will receive over $1 billion in funding. the great thing is we don't need to seek extra funds. that will take us right through to production. we will use that for three things. we are going to finish testing all theent of lucid, tooling necessary to put that into sales and manufacturing. the second thing we are going to do is build the factory in arizona, between tucson and phoenix. and the third thing we are going to do is commence the rollout of our worldwide strategy for sales and marketing commencing here in

the home market in the u.s. caroline: what does saudi arabia want in return for their own country? do you want -- do they want you to manufacture over there? do they want infrastructure? >> this is an interesting point. there is significant potential forsaudi arabia diversifying their economy, growing their economy, and we at lucid are very committed to explore possibilities where we and play agether small part to help grow the kingdom of saudi arabia's economy. >> when you are talking about rolling out these cars eventually, are you going to be focused primarily on the u.s. market, or are the ambitions more towards china, which is kind of the big prize that everyone is banking on? i wonder how this investment with saudi arabia would position you to compete there?

>> absolutely. i believe in a pragmatic approach and baby step. i'm very cognizant of the enormity of this task. it is a huge undertaking just to get current production here at home in the u.s. the first step will be u.s. market, u.s. manufacturing. then we plan to have a more global reach as a premium, luxury, ev brand. ultimately, china and europe is a huge prize. that's the largest single market in the world. of course, there is a great uptake over ev there. we have eyes on that, but we are laser focused near-term getting lucid into production in the amazingeating this product, which is so differentiated from anything else out there. best car in the world, over 400 hour,ange, 200 miles an zero to 60 sub 2.5, and making it in the u.s. one of the things i'm thrilled

with is that we can help create tech jobs in the u.s. in the state of arizona, and we are doing that very much as a consequence of pif's investment. joe: how much is the car going to cost and how many do you think you can sell in the u.s.? >> the base model price is down to $60,000, but we won't be selling that initially. we will be selling relatively higher spec cars for the first year or so. there's good reason for that commercially, because we will be limited by the number we can manufacture to a superior quality, rather than the demand for our vehicle. we will gradually make more affordable versions available to the public, coming right down to our $60,000 promise. points fortypical the car will be over $100,000 because this is a premium product. you also asked about volume. again believe in baby steps.

a pragmatic, structured approach to manufacturing. get the process right. learn the process. doors,he trend in the the tolerance of the body, quality issues. we can build then from initially 20,000 units a year, ultimately up to 60,000 units for lucid per day -- inafe grand arizona. will reserve some for a range of products in the future you will see from lucid once things are established. caroline: that was a question from a listener, peter tackling it head-on. rawlinson, chief technology officer at lucid motors. thank you. coming up, china's stock market

crashes. we will discuss whether the stocks can recover as trade talks between the u.s. and china seem to be doing the same. this is bloomberg. ♪ to be doing the same. this is bloomberg. ♪

caroline: time now for our asia head of bloomberg, shery ahn. index, lowestsite levels since 2014. the 2014 closing below level and also below the january 2016 bottom. we are now seeing a fourth towards aaded fourth-quarter loss, the longest losing streak since 2008. joe: earlier we were talking to tom moreland, who says it is dangerous to look at the decline in the market and conclude that it is all about the trade war, that it means china is losing the trade war, and that the deleveraging campaign is still the biggest story. reporter: you have china trying to rein in all of the leveraging out there. making things wears is the trade war, but that would not be specifically because of the

uncertainties. you nailed it when you are talking about the deleveraging efforts that have been going on for quite a while. we have seen the pboc sucking liquidity out of the markets. right now, they are re-ingesting liquidity into the markets. reporter: but we have seen sentiments being weak for quite some time now, it sort of predated the trade talks. when you think about coming off of the 2014, 2015 levels. reporter: analysts say sentiment hasn't white recovered. remember when we saw the markets crash, lisa china taking ad hoc -- we saw china taking ad hoc measures, sick breakers put into place and taken out of place. right now, it's interesting that the shanghai composite is at one of the weakest levels historically against the s&p 500 index. chartlver lining on this is every time we have seen a approach this level, we have seen it come down. joe: going back to the

deleveraging, does the trade dispute, at a bad time? in other words, could it force the government to put the , if theying on hold have all these factories that can't export as much, they probably wanted to shut them down and give them back to capacity, but does that mean we have seen a pause? seen moves byave the chinese authorities to be supporting the economy, especially when we see gdp numbers coming in a little slower, not that you can completely trust chinese gdp measures -- numbers. we have seen also measures to support the markets, late buying when it comes to the stock market since the latest crash back in 2015, the devaluation of the chinese yuan. but with the cheaper you on, chinese assets right now not looking so attractive. caroline: you had a great plane earlier about the holding of chinese stocks. reporter: you compare it to the u.s., were something like 90% of

stocks have a free flow percentage compared to china where it is something like 50%, a lot more requirements for insiders to hold. i would think that would exacerbate the price point total more. the chinese government has tried to rein in leverage, which is why a lot of these measures were put in place. we have seen trade uncertainty is hitting the markets, we have seen them relax restrictions, especially the fact that they do want to open financial markets. we have seen pledges or commentary that they do want to do so. we actually saw them loosen restrictions when it comes to ownership of foreign financial companies. also in the auto sector. the problem now is it would feed china trade tensions becoming worse. they may backtrack on the before policies.

caroline: we will see how the response goes. yet to get those headlines from the u.s. president. great breakdown. shery ahn has more on these stories on "daybreak australia" asia"0 p.m. and "daybreak at 7:00. meetsuth korean president kim jong-un for a summit. joe: and i will be watching economic data numbers for the u.s. housing market index for september, out at 10:00 a.m. eastern. nate: and the jobless numbers come out thursday. caroline: that is all for "what'd you miss?" joe: "bloomberg technology" is up next. have a great evening. this is bloomberg. ♪

emily: i am emily chang in san francisco. this is "bloomberg technology." ube driving forwardr -- uber driving forward with a takeover. and plus, first production, nondelivery a problem for tesla. elon musk tweets an apology to a customer waiting for her car. and it is the 60th birthday of --,