>> i am mark crumpton with first word news. brett kavanaugh is calling the latest sexual misconduct allegations against him "smears." in a letter today, he said " will not be intimidated into withdrawing from this process." the new yorker published an account of a second woman who said kavanaugh assaulted her while they were students at yale. the first accuser are expected to testify with kavanaugh on thursday. president trump held a bilateral meeting with moon jae-in at the united nations feared. moon said only president trump

can solve the denuclearization issue on the korean peninsula and president trump said he will be holding a second summit with kim jong-un in the not-too-distant future. unh are in new york for the general assembly meeting. brexit secretary dominic rob says cabinet ministers have a good and healthy discussions on plans for the british department -- departure for the eu. >> the prime minister made clear and pressep our calm the eu on some of the criticisms they have made, and to be clear there on the alternatives the eu has come up with. we will negotiate in good faith. >> pre-brexit conservative lawmaker said britain would prosper under a variation on the free trade agreement struck between canada and the eu after

years of talks appeared theresa may says a canada style deal would not form a hard border between northern ireland and ireland. european union is taking: to the bloc's top court over the overall of the judicial system. eu executive commission says poland saw lowering the retirement age for supreme court judges puts more than one third of the country's judges at risk of being risk to step down. this is after the commission gave warsaw two warnings. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> from bloomberg world

headquarters in new york, i am scarlet fu. julie: -- caroline: i am caroline hyde. >> the first decline in the doubt in five trading days. -- dow in five trading days. and what is going on in washington with regards to the state of rob rosenstein. euro picking up steam versus the dollar, roughly a three month high versus the dollar as mario draghi predicted a pickup in inflation and yields ticking higher at the selloff in treasury continues and wti up i better than 2% following brent higher, the best level for the bti and more than 3.5 years. caroline: it feels like a manic monday. not only have we had plenty of politics and markets, m&a, check it --chael kors, off as

and comcast down 6%. a big selloff of this name. barrick gold does better, it will do a share swap. sirius will get more into streaming, buying pandora. scarlet: lots of m&a news. ron rosenstein lives to work another day, he is still on the job after being summoned to the white house amid reports he has offered his resignation to john kelly, the chief of staff. the white house offered clarification. at the request of ron rosenstein, he and the president had an extended conversation to discuss the recent news stories, because the president is in new thursdayy will meet on

when the president returns to washington. a lot happening on thursday. we welcome a criminal defense attorney. the report is that ron rosenstein had wanted to resign but they will wait until thursday to speak with the president. what do you make of that? >> there has been completing reporting as to whether he would resign, some reports said he would be fired. interesting they are punting until thursday because the testimony of dr. ford. this may be a press move to deflect everything that is going on behind the scenes on the brett kavanaugh nomination. to rone: going back rosenstein, this goes back months if not, ever since he took the job as deputy ag because he was thrown under the bus. >> bombshell report by the new york times, the comments were

made in the early days of the investigation, right after jeff sessions recuse himself, ron rosenstein stepped up to the plate and appointed robert mueller to oversee the russia investigation. he was placed between a rock and a hard place because he oversees the rest investigation when he could be a witness -- russia investigation when he could be a witness because you wrote the now largely presumed pretextual memo rationalizing the reasons for firing james comey. we know that was a pretext because president trump went on national television and told lester holt that he fire james comey because of the russian investigation. that is a color of obstruction of justice charge. ron rosenstein has been hanging in the balance in terms of whether he is recused from the situation. pleasing the president versus upholding what he feels the department of justice should do. scarlet: interesting he has been

able to keep his job for this long. perhaps the main event on thursday, the hearing for brett kavanaugh, the supreme court nominee and his accuser. talk about what the second accusation against the nominee means for his process for being confirmed as supreme court justice. it does not seem to derail his supporters. >> the first point to make is that, even though we are throwing around a lot of legal terms, like due process and whatnot, this is not a criminal case. not even a civil case. the question of burden of proof in terms of whether or not, how we choose to believe dr. ford and at what level of evidence we may need, of course, another testimony from somebody saying, a similar incident happen to me and there are similarities between the incidences, there were witnesses. mark judge was in the room in

the first case and becoming clear why he has not been subpoenaed. want to givees not testimony but he may have important information. he cannot lie under oath. he has written a letter stating that he has no recollection of the event but not denying it could have taken place. he would be a key person. i do not know if, going forward with this hearing, the way it is now, without involving the other allegation, i do not know if that will pass muster in terms of getting him through without an asterisk to his name. caroline: the key people they need to prove to other republican women, two females who are potentially pro roe v. wade. >> a cruel and pathetic irony that one of the huge issues that brett kavanaugh will be deciding

on is the context of a woman's right to choose when he has been accused of sexual assault and/or harassment. that is too much for democrats to bear. most, if not all, except for the two you are mentioning, of the senators come had made the decision along party lines before this, they agreed whole cloth or disagreed with his views on executive privilege, or a women's right to choose. i think this may affect the fence sitters and whether or not he wants -- we want somebody to be on the highest court with this lingering potential? .- question mark he should want a investigation. scarlet: he has said he does. caroline: food for thought, thank you. spending --omcast

shares of the cable giant paying a price after it outbid fox. the freshly minted communications group set to edge out others. big shoes to fill, oil traders expecting the return of $100 crude as opec struggles to accommodate for the sanctions on iran. ♪

providers are scrambling to raise original context and dish network is focusing on what it knows best. they spoke with us in denver. >> we have chosen not to try to get into an industry where we will invest a lot in content but partner with those who invest in great content. >> so much convergence going on

in the industry on both sides between the content and distribution. negativelyffect you or gives you an advantage in a broader range of partners? >> we like the position we are in. we are in a beautiful downtown denver, it allows us to be focused on our day-to-day business. partnerships is definitely an area where we felt comfortable. over the years, if you think back to when we launched dish network, we did not do it alone, we had great partners and we continue that with sling and will continue that in the future. >> you are one of the early adopters of this and sling has a more competitive landscape. affect thatt

platform? you have whether the future with sling? or will that be alongside the traditional dish subscribers? >> if you think about the analogy rising tides, we were the first to come out with on demand ott service in sling 3.5 years ago. we saw the writing on the wall five or six years ago that the way pay-tv would be delivered would change and go over the top. as we worked on that platform, there have been more competitors. ,tt will be a huge business not quite where it needs to be, with sling we have worked hard to deliver a great customer experience and making a stable platform. the thing about customers wants and needs are today and what months ago, we.5

changed it so you do not have to have a subscription to participate. you can sample the sling service, whether free content, advertisers for the content, or transaction. >> lower margin, more competitive landscape in the ott space, at the same time the traditional cable industry, subscribers coming off year after year, what is the future? >> the future for us -- we have to operate on a different time -- we are focused on our pay-tv assets, dish tv, our legacy brand. satellite-tv, which got us to this point. caroline: the ceo of dish network with at hammond appeared we will look at the market for you. two strong weeks of gains, white house and trade tension, the europe is flat, it had been gaining after mario draghi

mention inflation. kors buyingael companies. ♪

caroline: this is count down to the close. i am caroline hyde. scarlet: i am scarlet fu. a lot of politics. >> one of -- what a crazy morning with ron rosenstein and the markets. a little bit of selling but not much. scarlet: they are shrugging it off, major indexes on the bloomberg come s&p and dow trading any nasdaq is holding on

to -- and the nasdaq is holding onto a gain. volatility measures like the vix, historically low but it pick up a little bit today. in terms of industry groups, energy is the best performer, up by more than 1%. with oil moving higher. wti at the best level in more than 3.5 years following the opec meeting. and interest-rate sensitive, real estate investment trusts, customer staples doing less well. we are moments away from the close. let's get market -- to our market reporters. julie: one of the more interesting deals of the day is sirius xm agreeing to acquire pandora media. they had scratcher and both stocks trading lower fears -- a head scratcher and both stops -- stocks trading lower.

pandora is more mobile, internet, and sirius xm says that is why it may get position, to expand in that area but investors are not certain what the strategy is to make this happen. and -- it is a 3.5 -- an all stock deal that represented 12% premium for pandora shareholders and sirius xm owns 50% already of pandora. pandora shares higher earlier and now lower and sirius xm losing 10%. investors not fans of this deal. care, when you look at the small companies, biotech companies come investors typically have to wait for years holding these stocks before they get a pop but when they do it is a proper. -- whopper. a new study said that purified fish oil medicine exceeded expectations and medical professionals were thinking the

drug would cut the risk of heart 10%, 50%and stroke by and study showed it cut the risk by 25%. -- 10%, 15%,, 15% and studies show it cut the risk by 25%. amarin is a takeover target. apple, 1.6%, on pace for the best day in 1.5 weeks and will sports.com up to present with apple -- salesforce.com up 2%. salesforce.com -- with shares of salesforce up to present, -- to present, some %.ath 2% -- 2

up more than 20% each quarter on a year-over-year basis. the relationship could continue, perhaps salesforce will have a new all-time high soon. caroline: the markets -- thank you for a great breakdown. gainingications group popularity with three of the editions to the new group including comcast, disney, at&t, twitter. for more on what this will mean for tech stocks, let's go to mike reagan. up/all, comcast is . >> the new communication sectors are both in the green and the one thing that is interesting when you talk about the new communications sector and you hit on it, now that it has

facebook and alphabet, those stocks alone, about 45% of the entire communication sector. it is important for all of us to realize that, when we talk about sectors going forward, we are mostly talking about google and facebook. in the consumer discretionary sector, the weightings are skewed, about 32% amazon. we are talking about sectors but still talking about big stocks. >> let's say i am an investor who wants to buy a bunch of tech stocks. >> it depends on how you define tech. >> the way normal people do. eliminatingtf's are these stocks that are move sector, some are sticking with them and the big spider etf sector, aligning to follow this. if you want what we consider qqq, still be00,

popular for the broad internet, hardware. caroline: in terms of the weightings issues? >> a little bit broader, and the nasdaq 100, not all tech, you get biotech. to what do you define technology as? so many companies are involved in tech it became such an oversized sector that they are trying to rectify that. joe: literally no way to include facebook and alphabet in any sector without it being the majority. without a dominating the whole thing. exactly, you put them all in the tech and have a better waiting among individual makers index that you and up with a sector that is a out of whack. scarlet: tech would be 40% of the s&p 500? mike regan, you are sticking with us and we want to go to the featured guests, the american

rise -- anthony, how to the brand-new communications sector change the way you view the market? untoward not anything with the trading today, but you had to position for this? >> no doubt. you touched on a good point. if you look at the s&p 500 and the nasdaq 100, nothing changes in the indexes. technologylooking at or communication services or consumer discretionary, you are making a bet on faang stocks and other they are divided, you have to be more cautious about how you invest in the sector because you are getting so much exposure. joe: let's talk about the market today and the big picture. remarkable how the politics and trade headlines do not seem to matter. people say that as long as earnings are solid, this is

irrelevant. do you see weakness ahead on earnings? >> we tell our clients to ignore the drama out of washington and focus on the fundamentals. if you focus on earnings and growth in the economy, that is what investors have been focused on. today is a great example of that. you get washington drama and the market goes, ok, and move forward. that is what you have to focus on. view on earnings will be solid for quarter three and according for -- and quarter for. -- quarter four. caroline: what got me excited was the amount of m&a we are seeing. will this be a theme as we look at rates hiking? is it a surprise? >> that is very well possible it could be a reminder of back to 20 -- 2007 when there would be a merger one day and a $10 billion

deal left and right. to get back to the point of, is there demonstrate earnings? forecast obviously have not come down. if you look at the fed regional reports, the chicago fed report out today and the dallas fed, both trail estimate a little bit but none showing any real damage yet from the trade tensions. i wonder if people are a little bit on edge, if they do see the damage appearing in the forecast. caroline: fitch downgraded their global outlook today. scarlet: 0.1. last weekn was out saying donald trump may be overconfident about the economy. , ite see tangible damage will be the first sign of damage. we will see volatility that i'm not sure enough to derail the rally. i would not be surprised to see more volatility going forward. joe: your thoughts on the market

action as we close? >> i agree. the earnings forecast for quarter three and quarter four should not be affected by 2019, 20% down to 2%. the trade tariffs will get worse before they get better and you could start seeing a hairpin sectors like industrials and imperials, and i think that is something investors, with their lens out three to six months, may pay attention to, particularly if the rhetoric goes up in the tariffs. scarlet: u.s. market closing and a mixed day, dow and s&p retrieved without -- the nasdaq with a gain, up 1/10 of 1%. dow, first decline in five days and i do not know how much you can read into the pullback. there is growing take -- trade tensions and political headlines that maybe a time for a

breather. caroline: overbought conditions, have you looked at this in terms of the overall valuations? >> s&p 500, it has been overbought probably since about july. that does not mean stocks cannot move higher as long as companies move in and deliver on the earnings expectations. we think they will. i think you have to be more cautious. we have been telling clients to think about the targets in relation to your strategic targets. we are trying to move our tactical positioning to neutral positions between equities and fixed income and alternatives. even though the market is higher maybe to the fourth quarter, probably a good time to look at the portfolio and neutralized and maybe get more defensive, stay overweight the u.s. but start to trim on some high-growth sectors that have exploded over the last couple of months. 4:02.lmost

you put an interesting question on the live blog today. asking for anyone with a contrarian view, a positive case this matters because few people want to do that. >> people saying, if ron rosenstein is fired, obviously we will have political uncertainty until that is resolved. in general, the consensus is that it is the best bet to ignore the headlines and the politics, and just focus on fundamentals. i keep saying the buyback estimate is getting ratcheted up every day. every time i read a report, it is a higher number, something like $1 trillion in buybacks expected this year, a solid tailwind for the stock market. scarlet: you have to keep in mind that the macro environment,

higher rates. caroline: that was moving the fx market at the beginning of the on the back ofo what mario draghi had to say in terms of inflation. >> measures of underlying inflation remain generally muted but have been increasing from earlier lows. domestic price pressures are strengthening and broadening. underlying inflation is expected to increase further over the coming months as the tightening labor market is pushing up wage growth. caroline: sometimes not the most dynamic of italian speakers. how much is the market focusing on the rates, particular not just that the europe but on wednesday in the u.s.? >> mario draghi caught people's attention with his discussion on inflation. he saw the euro pick up. not sure, just move the deal as far as ecb expectations. the fed, everyone is expecting a

rate hike this week. what a lot of people may be curious about is the idea that the neutral rate can be a little higher in the short term. again, it will be one of those statements where they will parse out every single line and comment at the news conference. right now, the market is pretty -- getting much closer to the fed dot plot and what they expect or the rate for next year. it would be -- have to be a big shock to upset the apple cart. scarlet: thank you mike regan. anthony, talk about the fed and what it would take to surprise investors? jay powell wants to make sure everyone is surprised of what he is thinking. he has said he will be more transparent and open every meeting and everything live next year. what couldn't -- what could surprise investors on wednesday?

>> they will raise probably in december. you see in the press today is in market starting to anticipate they will continue with that gradual approach into 2019. to surprise the markets, you would have to see them raise more than a gradual 25 basis points hike, or they would have to communicate to the market that they wanted to continue past 2019. our review is that markets will anticipate that and sniff it out, and price those tightening conditions and it will not be a big issue. joe: everyone assumes they will hike, probably correct, old news. is it me or are people not talking about the fed much this time? it does not feel like one of the top stories. >> i said that the market will be ok as long as the fed

gradually tightens but for investors, you have to pay attention and as we get further rate hikes, it means more risky opportunisticless versus more conservative investments. back to my comments about balancing your strategic portfolio, this is a good time to take that into account because, as interest rates tighten, the risk assets and financial conditions would get tighter and risk assets will become more risky. caroline: more defensive great to have you here, anthony. .e had our mike regan a sector we were touching on a little bit, brent crude climbing about $80 per barrel, the highest level in four years after opec said less urgency and oil traders are saying $100 oil is on the cards as opec struggles to compensate for the u.s. engines on iran.

surprised by the lack of listening to donald trump's tweet? >> the opposite of what the president wanted when he came out with this last week. coaching from the sideline before the opec meeting. instead, the members got together, there was some discussion, a report on friday they may discuss a 500,000 barrel increase. that does not seem to have happen that instead they said we will respond when it is needed. joe: how is opec compliance needed -- looking? >> halfway through the increase the last time they got tweets from donald trump and it seems like this time they are not as swayed by the president as they were before. we have heard from the saudi's and russians, they are prepared to go higher. that --: we are hearing we have been on the ground, been speaking to some key energy decision-makers. take a listen. >> there are geopolitical issues

that impact oil and we try to put in a new context but we do not -- we will not allow with theinterfere economic motto the that is too critical to subjected to politics. caroline: seemingly geopolitics is everywhere. scarlet: they do not want it part of the conversation but how realistic is that? >> you cannot divorce oil from politics, not plausible. if you talk to the saudi's, they will say they cannot affect prices and are not any price setting business. there are different things people say and the actual reality on the ground. what is interesting here, when you hear the saudi minister talk about not letting politics affect, when they announced an increase, they did it clearly and the opec secretary-general said at the time that we are responding to our customers, we are responding to president

trump the manning we produce more. -- demand we produce more. for him to say politics do not matter is a little disingenuous. about $81rent crude and a vti, $72 and change come at what point do people say this will hurt demand? >> we talked to a ceo of the italian oil company and they say at $80 a barrel you start to see demand falloff which is a big problem. we said the saudis were comfortable with brent at $80 and they do not want to raise it high that you see something horrible happen and everyone switches to a previous -- prius. joe: the talk is back of $100 oil, what would have to happen to get us from here to there? >> we already have the iranian sanctions in november, november 4, they are already felt. one million barrels have come off that as that role stores the market.

you will need to see something cataclysmic in terms of the iranian output or something happening in venezuela. when oil gets to $80, the talk almost immediately starts that getting to $100 and some of this is the game that is played in the industry. it is not beyond a reasonable doubt we could see triple digit oil. scarlet: thanks to tina davis. that does it for the closing bell and for me, romaine bostick stepping in and they will focus on trade, the signing of the u.s.-south korea trade deal an escalating trade war between the u.s. and china. this is bloomberg. ♪

caroline: i am caroline hyde. romaine: i am romaine bostick. joe: i am joe weisenthal. what did you miss? caroline: deputy attorney general bob rosenstein was scheduled to meet the president on thursday after report says he is set to leave. comcast spending spree as they fell the most since february as investors think they may have overpaid. argentina pinning its hopes on the imf as increased and its credit line will shore up investor confidence. the tariff battle between u.s. and china intensified today as the donald trump demonstration imposed tariffs on $200 billion of chinese goods ranging from a

smoke let's to food seasonings -- baseball gloves to food seasonings. china refuses to talk trade with the u.s. and in -- impose tariffs. >> it is a trade war. >> it is an economic war. >> trade talks dominate the agenda going into the fourth quarter. >> we have a perfect storm. >> we are not seeing the u.s. rep up the script and walk away from trade talks entirely. >> bigger issue from the united states is if the dollar continues to strengthen. >> a lot of progress made with trade talks. investors have been rewarding that process as we have moved into the fourth quarter, particularly in u.s. equity markets. caroline: for more on china and the u.s. trade tensions, let's ring in patrick chovanec of silvercrest. the last speaker from jake -- did morgan asset management us

from jpmorgan asset management says there is progress. >> i think there has been progress compared to what is feared would happen, the u.s. quitting nafta for instance, we have not quit nafta. but the nafta that will be rewritten, even if canada agrees , is more protectionist and more restrictive than what preceded it. it depends on what your yardstick for progress is. is yourt interpretation, what do you tell clients for why a deteriorating trade situation with china, with whom we have so many economic linkages, have not had a discernible effect on the u.s. economy or market? >> i think it has had a discernible effect on markets in the sense that if you look at the difference between large more exposureve to international risk, more exposure to trade retaliation, they have not done as well as smaller caps, which have less

exposure. the u.s. fact that economy, the underlying u.s. economy, numbers are quite strong. if you look at the u.s. economy and forget all about the headlines, look at the data coming out, you would say, based on earnings and growth momentum, that this market should be doing very well. yet, there is hesitation, concern, valuations falling among large gaps because of these worries -- large caps because of worries around the corner. romaine: when you look at the outcome, do we go back to a trade system, supply chain system, that is somewhat similar to what we had before or is a completely throwing everything out and starting over? >> i think it depends on which advisor the president -- of the --sident you talk to, larry: larry kudlow says the president wants free-trade and this is just an attempt to get leverage which are long-standing issues, navarro whous peter

is saying, no, tariffs are a long-term solution to change, the complexion of the global economy. romaine: are some of the issues like that -- intellectual theft they negotiated? publicly it seems all about the trade deficit. >> the sensible reason many of the tariffs are in place is because of ip theft and issues. romaine: the bright -- caroline: the president speaking right now. president trump: i would like to take our great vice president, president pence for joining us and bob lighthizer for his incredible efforts as he has worked very hard. thank you as well to treasury secretary steve mnuchin and director of national economic council larry kudlow. for their tremendous work.

everybody has worked very hard. this is long in coming. many years, actually. moments, we will sign a document pledging that our countries will take the additional necessary steps to implement the new united states-korea trade agreement. i want to express my gratitude to president moon and his entire team for their dedicated efforts to reach what we would call a historic milestone in trade. something most people thought was not going to be happening. from day one i promised the american people i would renegotiation a trade deal to make sure our agreements were fair and reciprocal. for decades, politicians have talked about fixing broken trade deals only to do absolutely nothing about them. my administration is the first to actually keep our promise and deliver. in addition to this deal, we

have many in the works and they are fair deals, reciprocal deals. they make a tremendous difference to our workers, companies, and to the united states as a whole. the new u.s.-korea agreement includes significant improvements to reduce our trade deficit and to expand opportunities to export american products to south korea. in other words, we will now start sending products to south korea. these outcomes give the finest american-made automobiles, innovative medicines, and agricultural crops, much better access to korean markets. i think our farmers will be extremely happy. it was limited as to what they could do and send, and now it is an open market. they will be sending a lot more farm products. it makes me feel very good, i love our farms. as part of this agreement, we have secured access to more of the u.s. auto industry and korea

will double the amount of american car sold within, in other words, we used to sell a maximum 25 and we would not get to that number. now we will go to $50,000. we are doubling it per manufacturer. manufactured car, that is each year. that is a doubling of the cars per manufacturer that can enter the market, meeting u.s. safety standards. we are going with u.s. safety standards, the standard was at a point you could not get cars in re. over thisment bureaucracy and increase prosperity in both of our countries. anders in south korea america will find new customers and new opportunities to expand and grow. our teams will be working hard to make sure that the terms of the deal are fully implemented. president moon, i just want to

tell you we have developed a great relationship on many different fronts. this one is on trade and we are working very well on north korea , a lot of positive things are happening with chairman jim up -- kim of north korea and you will be hearing about that in the coming weeks. important things are happening. n agreement to work out another summit. we look forward to doing that. i will be meeting with chairman kim in the not-too-distant future. on location is being worked and the time is being worked on and we will announce it. as far as these negotiations, our countries have set an example of friendship and cooperation for trade that rarely you see in this age. and i want to tell you i am honored to be a part of it and am honored to call you a friend.

i am honored to say the united states itself and korea have a great friendship together. thank you very much, mr. president, thank you. [speaking korean] caroline: that was president trump speaking with the president of south korea, a new deal announced, a u.s.-korea deal, they said is a big deal and revised the trade fact. south korea will send over more products and a lot more positive things he says are happening with north korea.

something for the automakers, farmers. let's go back to patrick chovanec. this is one trade deal signed. what about the rest? >> we had a trade deal with south korea. we have had it since the bush administration. donald trump threatened to quit. the south koreans, given e.g. a political situation, made some modest concessions. it is being announced as something brand-new. on china, there is a consensus that the issues with china are real. the playing field with china is not even an needs to be addressed. if i were to think of how to address that most effectively, i would look at very targeted sanctions. not having tariffs on every chinese import or threatening check -- tariffs on every chinese import.

i would work with every ally i could to align support against chinese practices we all disagree with. one of the things going on today is president trump is meeting japan ando abe from he is basically entering belligerently saying we will shake down japan. abe has tried to play nice with president trump but has not gotten very far, whether tpp, the steel tariffs, aluminum tariffs. withnt to be working countries like japan. we want to work with countries like india, another one we picked a fight with in the last couple of days on trade. instead, taking on all comers at the same time. joe: what do you expect to see from the domestic policy response. forget about trade. some china's perspective, we know they want to deleverage and people are wondering, that maybe

to be postponed and they may need to ease credit or ease -- or do more stimulus, how far will china take policy measures to offset the domestic pain from slowdowns? had an export shock from the united states in 2008 and many imbalances we talked about with the chinese economy today, overinvestment, exclusion of credit, resulted from their response to that export shock. you hit them with another export shock. i think they were probably double down on the approach, closing down the chinese economy and trying to pump up different aspects of it, rather than engage. i think it would be much better if they did open up their economy but i think they will probably that down the hatches. romaine: what does that entail and is there any possibility we could see china compromise somewhat on their new road

initiatives? >> that down the hatches is not a policy i would recommend any sense of moving china in the right direction. when china's stock market took a dive a year or two ago, there was a move to oppose capital controls, there was a move to basically intervene very heavily in the stock market. that is the inclination of the government, to try to manage from a top-down basis the chinese economy. in the short run, what china and a lot of countries are doing, including chen -- canada, trying to play down the clock on domestic politics. we have a midterm. come from it stronger with more political capital on trade or weaker. areink a lot of countries trying to play out the clock to see where he stands after the midterms. romaine: moon jae-in is being translated as we speak. >> uncertainty surrounding this

has been limited and both countries can do business under more stable conditions. i am hopeful that this will provide us with a platform upon which our eye lateral economic ties will be innovated to a higher level and a freer, fairer, and a more mutually beneficial effort. if both countries live up to the spirit and the free trade agreement, i believe we will be able to expand future trade and investment and create new jobs and usher in a better future. i hope the revision of this deal will contribute to solidifying our cooperation. i would like to thank president trump for his leadership role in making sure this successful conclusion of the negotiations for the revision of this agreement. i like to commend the members of our negotiating teams. thank you.

caroline: we will witness the signing of the new deal, trade deal between south korea and the united states for president trump and moon jae-in. patrick of silvercrest is still here. their chief strategist. nothing much new in this deal. important, when looking at asset management, strategizing where you put the money at the moment, is the only deal in town china, do we care about the eu and canada signing nafta? >> i think we have to care about all of it. we need to realize that there is sometimes the rhetoric its way ahead of the reality. if you listen to the president on any given day, it sounded like he would scrap the korea trade agreement. notfact he has not, necessarily a positive from where we were but a positive it

was a concern on markets. politics, doioned you think something could happen after the midterms that changes our stance on trade? alreadybecause republicans in congress have expressed some concern about the way president trump has used existing trade laws and discretion he has to impose tariffs. there has been talk among republicans on opposing restraints, though they have not gone anywhere. democratsas -- if the took control of the house, that may have more legs than it does now. romaine: when you look at what is happening with china and south korea and the u.s., even though it may not be a new deal, symbolically it says a lot about how the u.s. is trying to position itself regarding these other trade disputes. how much does this help from optics, politically?

patrick: removing a conflict with any one of our trade partners helps in a sense it refocuses attention on china, which presents most of the substantive issues. to the extent we pursue trade battles with europe and canada -- romaine: sorry, donald -- caroline: sorry, donald trump is speaking. president trump: hopefully he will be confirmed quickly. caroline: president trump talking about brett kavanaugh, the expectation, brett kavanaugh is talking about -- he has been is -- willan assault talk on thursday. we are with patrick chovanec. one last key takeaway in terms of the trade deals. where do you look in terms of assets?

patrick: i think you need to be aware of the vulnerabilities. companiesprofile u.s. that are subject to retaliation. k sectors like agriculture that have a lot of political significance and become targets need to be aware of the vulnerability -- without getting too far ahead of yourself, just because the president says i may scrap nafta, you do not want to conclude that will happen. -- cross thatep bridge when you come to it and see what is likely to take place. we have seen a steady march toward much more substantive and real action in terms of tariffs on china than in other areas. caroline: great to get your perspective, thank you. patrick chovanec from silvercrest asset management. let's get the first four news. >> president trump not saying whether he will fire deputy

attorney general rod rosenstein but he says he hopes his thursday meeting will help them "figure out what is going on." the president told reporters on the sidelines of the u.n. general assembly that he wanted to have transparency and openness but refused to say whether he has confidence in ron rosenstein following reports he discussed possibly secretly recording the president. senate majority leader mitch mcconnell has a message for his colleagues today, judge brett kavanaugh's nomination to the supreme court will be voted on in the senate in the near future. his remarks came as the new yorker magazine published a story that says a second woman has accused brett kavanaugh of sexual misconduct. mitch mcconnell lames democrats for engaging in 11th hour politics. senator mcconnell: it's how psychic choreographed smear campaign to ignore dr. ford's request for confidentiality to enforce maximum damage at the

last moment on judge kavanaugh and his family. >> one of the key votes in the senate is maine republican susan that she wantsys to hear from judge kavanaugh's first accuser. senator collins says she is close to a decision on the nomination but she is not there yet. british prime minister theresa may is getting hit from all sides on brexit. her fiercest critics spelled out their demands, boris johnson and the former brexit secretary david davis endorsed a plan calling for a much harder departure, and the opposition labor party is leaving the door open for a second vote on leaving the eu. we spoke to the shadow chancellor. >> this will be about the deal itself. as much as the original referendum. we have our own proposals. a customs union, close

relationship with a single market, some elements of reform and our european partners are up for that negotiation. what they have been witnessing from the existing government is a form of negotiations that is unacceptable. threatening to walk away. >> bill cosby's lawyer says he is a poor candidate for prison because he is old, legally blind, and dependent on others. clientyer says that his would be at rest behind bars. he called prison and excessive hardship and suggested an alternative punishment program would be more appropriate. the prosecutor is asking for a sentence of 5-10 years. a judge is expected to sentence him tomorrow. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. caroline: thank you.

ron rosenstein lives to work another day -- rod rosenstein lives to work another day. he was at the white house this morning amid reports he had resigned. sarah huckabee sanders said that the president and ron rosenstein had an extended -- had an extended consultation -- conversation and would meet on thursday. you are currently a counselor -- thank you for joining us. what you make of this? >> it is hard -- it is a combo get a situation when the news first came out on friday, it seemed like a firing offense. we have seen donald trump react very precipitously when he fired james comey.

hand amidhis indications the republican brain trust thought it would be ill advised to fire rosenstein before the midterms. notwithstanding's today's theatrical meeting with the staff and the anticipated meeting on thursday with the president, that seems to be the status quo. his job security is not strong after the midterm, nor is it of his boss, jeff sessions. anynow, does not seem to be reason the previous tactless of the republicans would be too big a blow to inflict before the midterms. perspective, what is the significance if rosenstein resigns versus if he is fired? hasesigns versus fired

possible significance in an arcane issue in the law. doubtresigns, there is no the president can put in his stead anybody who already has senate confirmation. under a law called the vacancy reform act. there are any kind of partisans and friends of the president who could be in that role and therefore supervising the robert mueller probe. if he is fired, there is some doubt as to whether that law is available to him. wrong,r, if he guesses that law has a provision that and private citizen sue says the action was taken by someone who should not have been there. you can expect a landslide of litigation. they played this out before with shulkin at postal a few months ago and it looks like the white house wants to stay its hand and

not fire him, and try to force them to resign. but rosenstein seems not to want to play ball. joe: if he does leave or is pushed out, is there some case to be made that the molar investigation should at least -- robert mueller investigation should be put on pause while they sort out this issue at the justice department? >> i think it will go on. the case to be made, there will not be any sort of transition. under whatever regime they do, there will be somebody in place nominally to supervise it. but that person could be more or less sympathetic to it. i think it will go on. if it is someone who seems inclined to try to tempt it team i think the mueller will have plans in place, already having plans in place to

try to keep the probe from being curtailed too much. it matters a lot, including in the in game, whoever is in the role gets the report from robert mueller and decides what to do with it. these stakes are high. litman joining us from california. coming up, skied bidding war sending comcast shares down to earth. all the details ahead. this is bloomberg. ♪

romaine: megamerger monday and probably the biggest deal we saw was a comcast, winning the auction for sky, $40 billion was the price tag.

raising questions by investors. for more let's bring in rich greenfield of btig. at a $40 billion valuation, what does comcast get out of this in terms of competitive landscape? >> look, you are seeing scale redefined on the programming side. when you look at a company like disney buying fox or a good chunk of the fox content assets, when you look at discovery and scripps merging, every time we have seen a merger with a scaling up in content to programming, it is usually driven a scaling up in distribution side of the equation. normally that occurs within the u.s., the government permitted comcast from buying time warner cable. comcast is looking for new ways to get global scale, or get scale and doing it globally by buying subscribers in sky.

the largest video distributor in the world with 44 million subscribers across the u.s. and europe. joe: a concern facing companies economicss like the of pay-tv is less fulfilling all the time with services like netflix threatening them. is the situation any better in europe or are they buying an asset that is fundamentally facing some of the same business models we are seeing over here? >> that is now the $40 billion question investors are struggling with. if you look back over the last 12 months, comcast has gone out of their way to redefine themselves, not as a video distributor or video company, that as a connectivity company. that is harder to digest when you look at sky, which is not a conductivity business. they do some resell in broadband but it is really a video distribution is this any video cable network owner. from that standpoint, this is a

cap one for investors to digest. comcast is one of the largest video distributors for many years in the u.s., but as you look at how they have shifted their messaging to investors, this makes this much harder to digest from the investor perspective because in the u.s., what is happening with the netflix affect, it is playing out all over the world. caroline: having just moved from the u.k., sky has been thought leadership ahead in technology, they have their own means of providing streaming and have some very competitive sports rights. bob iger of disney has always said this is the jewel for him and he still owns 39%. will they keep it and does comcast have to swallow disney as a minority shareholder? >> i would presume comcast is more than happy to let disney be a minority owner and own 39%, reducing cost and leverage

contest takes on with skillful control if they can get over 51% of shareholders to tender their stake. i cannot figure out why would disney want to be a 39% shareholder. if i were in disney shoes, it does not hold a lot of value now that you have lost the larger acquisition. i think your comments about bob iger's commentary is what is fascinating, he wanted distribution, surprised that they were willing to not bid hired to make comcast lose. i expect disney to tender their shares for comcast would be happy for them to do nothing and sit without minority stake for years. caroline: contact does comcast down the most at one point since january of 2009. thank you rich greenfield. it is sector in flux with the comcast acquisition of sky. the vice president chairman and ceo of liberty global spoke to

at hammond in denver about the shifting ground and view from europe. >> content business is going to massive disruption. everybody is making it and wants to be in it, using it for defense, offense, big particle integration moves and consolidation moves. some of it out of fear and some out of need or want to compete with the larger platforms and better global. some of that tribe -- trying to drive scale but it is a local question, contact. we have built regional sports networks and invested in small broadcasters in ireland that we have rebranded and has gone to great. we will be more opportunistic and offensive on capital and do not see need to be defensive and some of these moves feel defensive. >> is big tex not something you spent a can of time -- tech not something you spent time or you about? >> that netflix but other content players. -- in the u.k.

was netflix next to bbc and itv and are happier. ott guys, who are leaving in video, we are quite rating -- we are cooperating on the platform. >> explained to me about the differences between the u.s. and european markets? there has been a lazy interpretation, they are similar or the same or europe is slightly behind u.s. in terms of disruption. you have a different view. walk us through the differences? >> i spoke about one, video is in -- is cheaper, high higher-margin product while here video caused -- costs 45 dollars per month and the past the prices on to the consumers. video is inexpensive in our case. 20 euros, 15 euros. content costs are very low.

we still have margin in the video business. it is an important part of our bundle broadband speeds across europe are lightening fast. regulation has forced competition. u.k., skyt like the would be at 80 meg. broadband is super important and super competitive. convergence between fixed and mobile is at an advanced stage, not so here. we were thoroughly into that. telcos in europe mostly have national footprints. when you have a national footprint for broadband and a national mobile footprint, you will sell the product together. when you do that come in ps goes -- customers are happy and the global space is challenged with -- with regular for pressures. fixed mobile convergence is here tuesday. the vodafone deal with us is

about synergy which is real. and about a full quad-play product to compete with deutsche telekom. we are happy to do that. >> can we focus on switzerland? you talked about needing scale or fail in various markets. what is the situation there? something you could do a deal to get bigger with the likes of sunrise or exit altogether? >> strategically, we look at the spectrum of ideas. most important, we are investing in a turnaround plan. the business has been solid for a long time with high free cash flow margins and cast convergence. still a great business. we realize the market needs consolidation and we are playing on the side with some opportunities. in the meantime -- not many operators in the market but in the meantime we are intending to invest in network and products.

the video product is important and we are launching a new platform, incredible user experiences and lightning fast video products. we will invest in a turnaround first and foremost, and it looks to be pretty positive from our point of view. >> we have just spent a while talking about european cable, you are the biggest player. a stunning view of the rockies behind us. , the fact that he and mr. murdock are going through the biggest reorganizations of our businesses, what can we deduce for the future of the media landscape? >> a couple of things, each are extremely savvy and smart. in the case of john and rupert, john likes to say the store is always open, meaning we are valuable and -- value creators and at the end of the day,

opportunities to combine, consolidate, by, we are trying to be nimble and agile and how we look at the landscape. caroline: the vice president and chairman and ceo of liberty global with ed hammond. coming up, the president of brazil says relations between the u.s. and china will be softer. we will hear more and an exquisite interview. -- exclusive interview. this is bloomberg. ♪

caroline: the trade were between the u.s. and china is impacting all corners of the globe and south america is no exception. we sat down with the president of brazil and asked about brazil's relationship with china. >> it has not affected brazil. is one of the largest trade partners.

they and the united states are the largest trade partners and that is unchanged. i have met with my chinese counterpart xi jinping and welcomed. , no affect on her political, economic, trade relations. no impact with the u.s. and china. caroline: now with shery ahn. what was your key takeaway? >> he was talking about there being no impact between the u.s. and china trade tensions to brazil. if there was impact, it would be positive goes brazil gets to export much more soybean and agricultural products to china, given china is avoiding u.s. products. interesting to say that for him.

and the fact that china is brazil's largest trading partner followed by the rest, and then argentina. -- followed by the u.s., and then argentina. they say brazil is not much affected and there will be no contagion. joe: let's talk about president trump in the korean president. what is your takeaway? >> president moon jae-in south korea meeting with president trump had his key message, that was trying to find some solution to the denuclearization issue with north korea. we knew he was bringing a private message from kim jong-un. interesting was the signing of agreement, that was signed six years ago and already in place. i was covering that and there were so many protests in south korea because south korean agriculture did not want to open up the markets are now president trump comes and he says let's renegotiate. they are finally signing it.

he gets more concessions in the auto sectors to the u.s.. at the end of the day, it seems president trump has gotten what he wants from the south koreans and is using it as a base to boast the fact that he was able to achieve some sort of better , althoughsouth korea the caveat is south korea is a very small nation income person to china. caroline: to hear more about that, tune in to daybreak australia at 6:00. the exclusive interview with the brazilian president. high-level debates begin at the un's general assembly. nike reports results. bloomberg technology is up next. joe: have a great evening. this is bloomberg. ♪

emily: i'm emily chang in san francisco. this is "bloomberg technology." the u.s. and china hunker down for a long trade war. as the latest round of tariffs hit, bringing more tech into the firing line. plus, sirius x.m. buying pandora, giving the satellite radio company a leg up in the ompetition with spotify. and a deal to bring more

business to the iphone and