kavanaugh fits within the mainstream of legal thought. observed that judge kavanaugh is remarkably women in to promoting the legal profession. kavanaugh is more of a centrist than some of his critics maintain is reflected in the fact that he and judge garland voted the same way in 93% of the cases that they heard together. garland voted in more than 96% of the opinions authored by judge kavanaugh dissenting only once. weeks ofll this, after reviewing judge kavanaugh's to 32 hoursistening

of his testimony, the senate's and roll was thrown into a tailspin following the byegations of sexual assault professor christine blasey ford. the confirmation process now involves evaluating whether or not judge kavanaugh committed itual assault and lied about to the judiciary committee. because this is a lifetime appointment to our highest court, the public that death beres resolved against the nominee. others see the public interest as embodied in our longest thoseion of affording

presumption of innocence. in cases in which the facts are unclear, they would argue that the question should be resolved in favor of the nominee. president, i understand both viewpoints. this debate is complicated further by the fact that the senate confirmation process is not a trial. fundamental legal ,rinciples about due process the presumption of innocence, and fairness do bear on my thinking. i cannot abandon them. in evaluating any given claim of misconduct, we will be all served in the long run if we abandon the presumption of , temptingand fairness

though it may be. we must always remember that it is when passions are most fairness is most in jeopardy. the perception of innocence is relevant to the advice and consent function when an accusation departs from a otherwise exemplary record. i worry that departing from this presumption could lead to a lack of public faith in the judiciary and would be hugely damaging to the confirmation process moving forward. levied the allegations against judge kavanaugh illustrate why the presumption of innocence is so important. thinking, and particular,

not of the allegations raised by ford, but byd, -- allegations that when a teenager he drugged multiple girls and used their weakened state to facilitate gang rape. outlandish allegation was put forth without any credible supporting evidence and simply parroted public views of others. such an allegation can find its way into the supreme court confirmation process is a stark reminder about why the presumption of innocence is so ingrained in our american consciousness. president, i listened carefully to christine blasey

ford testimony before the judiciary committee. i found her testimony to be sincere, painful, and compelling. i believe that she is a survivor of a sexual assault and that this trauma has upended her life. nevertheless, the four witnesses she named could not corroborate any of the evidence of that evening gathering where she says the assault occurred. individuals she says were at the party has any recollection at all of that night. forcefulanaugh's denial of the allegations under

penalty of perjury. mark judge denied under penalty of felony that he had witnessed an assault. another person allegedly at the theredenied that he was under penalty of felony. friendor ford's lifelong indicated that under penalty of felony, she does not remember that party. she indicated that not only does she not remember a night like but also that she does not even know brett kavanaugh. ofaddition to the lack corroborating evidence, we also learned some facts that raised more questions. instance, since these

allegations have become public, professor ford testified that not a single person has contacted her to say i was at the party that night. testified that although she does not remember how she got home that evening, she knew that because of the distance, she would have needed a ride. yet not a single person has come forward to say that they were the one who drove her home or within the car -- or were with her in the car that night. professor ford indicated that even though she left the small gathering of six or so people abruptly and without saying goodbye, none of them called her the next day or ever to ask why she left or was she ok.

not even her closest friend. mr. president, the constitution does not provide guidance on how we are supposed to evaluate these competing claims. it leaves that decision up to each senator. trial andt a criminal i do not believe that the claims such as these need to be proved beyond a reasonable doubt. nevertheless, fairness would dictate that the claims at least should meet the threshold of more likely than not as our standard. meanacts presented do not that professor ford was not sexually assaulted that night or at some other time.

conclude thate to the allegations failed to meet the more likely than not standard. therefore, i do not believe that these charges can fairly prevent judge kavanaugh from serving on the court. let me emphasize that my approach to this question should not be misconstrued as suggesting that unwanted sexual contact of any nature is not a serious problem in this country. to the contrary, if any good at all has come from this ugly confirmation process, it has been to create an awareness that we have underestimated the pervasiveness of this terrible

problem. alarmed and disturbed by those who have suggested that unless judge kavanaugh's nomination is rejected, the senate is somehow condoning sexual assault. nothing could be further from the truth. person, man or woman, who makes a charge of sexual assault deserves to be heard and treated with respect. the me too movement is real. it matters. it is needed. it is long overdue. that rape and sexual assault are less likely to be reported to the police than other forms of assault. 211,000ge, an estimated

rates and sexual assaults go unreported every year. survivors and to every day we must seek to stop the criminal behavior that has hurt so many. we owed this to ourselves, our children, and generations to come. hearing, i have listened to many survivors of sexual assault. strangers whol told me their hard -- heart wrenching stories for the first time in their lives. friends that i have known for decades. yet the exception of one woman who had invited -- confided in me years ago, i had no idea that they had been the victims of

sexual attacks. courageteful for their and their willingness to come and i hope that in heightening obligor awareness, -- outlook awareness, they have that theythe burden have suffered for so many years. for them, i pledge to do all that i can to ensure that their daughters and granddaughters never share their experiences. weeks, i havefew been emphatic that the senate has an obligation to investigate and evaluate the serious allegations of sexual assault. i called for and supported the additional hearing to hear from

both professor ford and judge kavanaugh. and supportedfor the fbi's supplemental background investigation. this was the right thing to do. ford never sought the spotlight. she indicated that she was terrified to appear before the senate judiciary committee and she has shunned attention instead. unaware ofcompletely chairman grassley's offer to allow her to testify confidentially in california. watching her, mr. president, i -- helpt help the field but feel that some people cared little if at all for her well-being.

testified that a very limited number of people had access to her letter. yet that letter found its way into the public domain. she testified that she never gave permission for that very private letter to be released. yet, here we are. we are in the middle of a fight that she never sought. arguing about claims that she wanted to raise confidentially. one theory i have heard espousing repeatedly is that our colleague senator feinstein leaked professor ford's letter at the 11th hour to derail this process. i want to state this very clearly. i know senator dianne feinstein extremely well.

i believe that she would never do that. i knew that to be the case before she even stated it at the hearing. she is a person of integrity and i stand by her. some argue heard that the chairman of the committee somehow treated professor ford unfairly. nothing could be further from the truth. grassley, along with his excellent staff, treated professor ford with compassion and respect throughout the entire process. that is the way to senator from iowa has conducted himself throughout a lifetime dedicated to public service. the fact remains mr. president, someone leaked this letter against professor ford's express

wishes. regrettably that we will never know for certain who did it. leaker, who i suspect is listening now, let me say that what you did was unconscionable. whohave taken a survivor was not only entitled to your respect, but who also trusted you to protect her, and you have sacrificed her well-being in a misguided attempt to win whatever political crusade you think you are fighting. hope is that your callous act has turned this process into such a dysfunctional circus that it will cause the senate and indeed

all americans to reconsider how we evaluate supreme court nominees. if that happens, then the appalling lack of compassion you afforded professor ford will at least have some unintended positive consequences. president, the politically charged atmosphere surrounding this nomination has reached a fever pitch even before these allegations were known and it to separatellenging fact from fiction. time of such great disunity as the bitter fight over this nomination fold in the the publicamong

clearly demonstrates. it is not a case of different groups having different opinions. of people bearing extreme ill will toward those who disagree with them. and our intense focus on our differences, we have forgotten the common values that bind us together as americans. when some of our best minds are seeking to develop algorithms that reinforce and cater to our views, we can only expect our differences to intensify. alarmed theave drafters of our constitution who

were acutely aware that different values and interests could prevent americans from becoming and remaining a single people. indeed of the six objectives they invoked in the preamble to the constitution, the one that was the formation of a more perfect union. their vision of a more perfect union does not exist today. if anything, we appear to be moving further away from it. it is particularly worrisome that the supreme court, the institution that most americans see as a principal guardian of our shared constitutional part of, is viewed as the problem through a political

lens. president, we heard a lot of charges and counter charges about judge kavanaugh. bestose who have known him have attested, he has been an exemplary public servant, judge, teacher, coach, husband, and father. despite the turbulent better fight surrounding his nomination is that brettope kavanaugh will work to lessen the divisions in the supreme fewerso that we have far 5-4 decisions.

the confidence in our highest court is restored. mr. president, i will vote to confirm judge kavanaugh. thank you, mr. president. [applause] >> a 40 minute speech by susan collins of maine. she was addressing the chamber and making clear her many points that she is going to judge judge kavanaugh on his legal record. the comments about the allegations made against him i dr. blasey ford, she said they do not meet a threshold of more likely than not. we are approaching the market close. >> so much of this debate in recent days has been of course about the allegations. she is really bringing it back

to what is more typical and a supreme court nomination fight which is in his judicial record. the ongoing element that there is such disunity. >> she decried that several times area. >> let's bring in our chief washington correspondent. what struck me was when the senator made the claim that judge kavanaugh and merrick 96% of voted the same in cases. she said judge kavanaugh deserved to be confirmed because of his legal record. >> senator susan collins said she will vote yes on judge kavanaugh. that came following jeff flake telling reporters earlier today that he will also be voting yes on judge kavanaugh. it will appear now that judge kavanaugh does have enough votes

to get confirmed to the u.s. voteme court during that sometime this weekend as early as tomorrow. murkowski says that she will not vote to confirm judge kavanaugh. that is just the amount of republican senators who can defect and not vote in line with republicans. we are expecting another senator to speak momentarily on senate floor. he is unknown. what you saw from senator collins was more than a 45 minute long speech on the senate floor with the dissent of a centrist defending what she perceives to be a centrist judge to the supreme court in judge kavanaugh. she pushed back against the special interest groups that she claims of unfairly targeted him and his record. she also said that she did not

believe that dr. christine blasey ford's allegations of sexual misconduct from a georgetown prep high school party 36 years ago past what she said was the threshold for there to be -- for her to not support judge kavanaugh to the supreme court. she also said that she does believe that at some point and dr. ford's life, she was impacted by sexual misconduct. she said that she did not believe there was enough evidence presented to make her change her mind to lose support for judge kavanaugh. represents a likely massive political victory for president's administration as well as for mitch mcconnell who has ushered in this process every step of the way. i want to caution our viewers and global audience, this is why no means a final vote. it now appears -- appears increasingly likely that judge

kavanaugh has the votes to be confirmed as early as tomorrow. another democrat is saying that he will also support the kavanaugh confirmation. it appears that republicans have enough votes to confirm. we are moments away from the close. let's dive deeper into the market action. to bondsom politics and commodities. what are you watching? >> i am watching the gaming stocks. if you take a look, the biggest gaming companies. they are all down markedly today. how does this relate to interest rates? this is also related to the chip values area. the big questions are these are indebted companies area.

as well,wages rising that makes it more expensive to do business. >> i want to take a look at ipg. it is not quite a household name but it is one of the biggest losers today in the market down 14 sent. this is a laser company. they cut steel. they came out with political -- preliminary results that were under what most analysts were looking for. remember, one of their competitors last week also came that were alsos below what wall street was looking for. all sector has gotten beaten up. we saw a competitor down 8% today. this entire sector is getting

demand just by weaker but the tariff issues. it was pointed out the currency headwind, they got a boost from the tax cuts but the currency headwinds took some of the gain away. next i am looking at ge. if you look at the five day gain, it is a perfect week in the green. that is the best week since 2009. theid get some news about new ceo. they were announcing that he is going to be paid $2.5 million in annual salary was bonuses and incentives area that will all be tied to performance metrics. another reason for him to what ge to succeed. thank you so much. as we head toward the market

close with just under three minutes to go, let's bring in our chief equity investment officer. let me start with you eddie. the jobs report and the data we have seen this week has pushed rates higher and clears away for the fed to consider raising rates. that is putting pressure on equities. does that ring true to you? >> it rings true in the current moment. a year from now, i think we will talk about the end of a rate hike. and rising interest rates will be over before you know it. i say that because at some point, let's not forget that fed policy acts with a lack. -- lag. you are already seeing some cracks in emerging markets. i don't think the market will tolerate fed tightening too much. >> interesting point.

we are seeing this rate selloff. we seeing bonds in the green? >> because they are not seeing a selloff for either of the past two days. this is been a case of winners and momentum stocks taking on -- done great all year than in october following a part. we have to see that continue today. volatility, it is coming today. it is more the level and direction of rates that is wreaking havoc with some correlation. the correlation between stocks and bonds presumed to be very strong negative so you get the cushion, is that the weakest level since february. february, wheno we get intense selloffs and one they tend to spill into the other. or a little places to hide for the diversified investor. what

eddie: i think you want to stick with equities. the bond market does not have potential. i don't want to see you have -- be blinded by the market. pick the stoxx better closer to the 532 week lows and 52 week highs. if we look at the third quarter of this year, the s&p 500 produced returns of 7.75%, but it was led by defensive stocks that we have been talking about, utilities, health care, the defensive part of technology. this is where i would be putting my money and out be careful about balance sheets. if you too much debt, you will be vulnerable. scarlet: we just heard the --sing bell with the s&p the s&p, dow, nasdaq closing in

red. weekrices rise for the before the iran sanctions take effect. eddie mentioned the rotation. take a look at the center rotation we are seeing over the last couple of weeks. energy stocks in red are a lagging category. financials are moving into the improving quadrant as interest rates increase. you can also see technology and consumers cautionary -- discretionary is the weakening categories. you would think utilities would be hurt with into french rising, but they have gotten big this week. joe: they have been pretty unpopular with the winners losing. caroline: on another asset class, we see gold being a haven once again. perkin, when you look at the different sectors,

you said perhaps now is the time for rotation. how long do you wait before that rotation pays off? we don't know how much longer this turmoil will last. eddie: i think it has already been paying off. whether the market is on a bull run like we have had in q3 or in a bit of a mini selloff like we have had in the last two days, it seems like the defensive stocks want to hold their own or go up while some of the momentum stocks are selling off. i think the rotation is already underway and has been for three months, but it is more prominent in the last three days with the bond market selloff. luke, i want to bring in what you spotlighted earlier about a brief inversion in this curve. why do we care about this chart? luke: what we see here is the

front month makes future and the vixnd month fixed future -- future and the second month vix future. when this happens on the friday inversion, --ith >> what is the significance of inversion? luke: the historical pattern of volatility is generally that you have these spikes. .he curve is upward sloping on the curve is inverting it is saying the trouble is now. with the rise of vix exchange products, when you get long volatility, you get a next her kicker by going long. it might make you pressure bets rather than taking private. scarlet: the vix had gotten past 17 day. but it has gotten -- gotten past

17 but it has gotten down to 15. make of the pickup in volatility and what does it spell for the coming days? i think the volatility we have seen in recent days is a function of where we are in the calendar. we are at the beginning of the fourth quarter. a lot of corporate's who have been heavy buyers of their own stock are out of the market and in their blackout. why they wait blackout -- like periodiod -- black out while they wait. that is why i don't think this volatility will last. the curve is telling us things will settle down in the coming days and weeks. caroline: i'm looking at what the ramifications have been on the emerging markets on volatility because em has been

sold off when you look at stocks but the sx marker is performing better because of the down day. id pick through this news? -- how do you pick through this news? eddie: i think the reason emerging market the -- market equities are interesting are because of the differentials. i don't think the fed can tighten policy without emerging markets coming along as well. the outperformance we have seen on the u.s. market versus elsewhere in the world, i think that gap has to close. it's getting close by the u.s. marking going down or emerging markets going up. it is more likely to be the latter. joe: tell us about the fed speak we got this week in the action, particularly in the curve. luke: i think the fed is telling had this r-star thing, but you should be focused on that things look extraordinary and we will be hiking. that cause people to reevaluate how high the terminal rate will

be in the cycle. that relates directly to the steepening of the curve, and the move has been in real rates rather than inflation. when we talk about the equity bond correlation breaking down, it's important to note that i would be more worried personally about the correlation if this were driven by inflation. the fact that it is driven by real rates implies that if the selloff gets too bad, the fed's circuit breaker, is very much in effect. scarlet: i'm looking at today's worst performers. the big tech names. for the week, they are higher for the week. when you look at some of the weakness in tech, you have to wonder it is part of the let's get out of a growth stock, but the bloomberg scoop about a chip pack has to play into this. -- hack has to play into this. joe: i want to get your take on that.

it feels like the anxiety over in china and concerns about the integrity of international supply chain could make people wonder about the strengths of some of these tech companies. there are things to worry about in tech. there are all those things you mentioned and the likely regulation coming out of washington for some of the social media companies. we are right up against an election so we will see what the aftermath on that looks like when it comes to the regulation of these large tech cap companies. thinkina, we don't even investors will how to room or -- how to remember how to spell the word terrorist -- tarrif. china is a different case because it is not just about tariffs, it is about intellectual property and spiting. we had to warships in the south

china sea come in within 45 yards of each other. i expected to take months to play out. base case is that we will strike a deal with china and move on to worry about something else. caroline: moore worries to come. eddie perkin, fantastic to have you. luke, thank you for your perspective. we have a bit of m&a for this late friday trade. you are seeing jb unit, jb holding which has been plowing money into coffee. they are going to buy a coffee company over in italy. it is all about giving singleserve coffee portions or wrapped up in espresso. it's the battle between nestle and jb holdings -- jab holdings.

scarlet: i want to bring in another story we're watching. it's not just the selloff in equities, we see a wild ride in shares of tesla. another day, another tweet storm. his tweets are sending tesla tumbling. here is more insight is bloomberg's sec reporter. tripling theusk is names before the settlement is finalized. his deal has not yet been finalized by a court. oh, afterty pro forma the agency and someone they accused of wrongdoing reached a settlement becomes a done deal. but, it is not normal at all that the person that reaches the settlement goes out and starts trolling the agency.

it is are seeing now is wait-and-see. we do not know what this means for the settlement. in the settlement, there is nothing saying you cannot go on twitter and write something calling the short seller enrichment commission. it is a deal he reached to neither admit or deny anything. some people say the agency, if they want to be aggressive, can take this to be a violation of the agreement. where waiting to see what happens here. might bele think it aggressive because if you remember a week ago they had a settlement they thought and he walked away from it. and ended up suing mr. musk ended up reaching a deal on saturday. another wild ride and he re-are at the end of the week to see what comes next. do: what kind of president

for this? precedent ben: we don't have precedent. kind of knew. most ceos of a company of this size are not taking to twitter turnouts such information. the sec said it is ok to do it on social media but it is uncommon this continues. isn after a settlement reached, it appears to be ongoing. caroline: there are more headlines coming in saying in some way tesla is similar to lehman. how have you digested that? ben: there is no love lost year between you on musk and the short-sellers. if nothing else, we can't take away over the last 24 hours is that this battle of people who mr. musk considers targeting him and his company, and those

people who think about against haslett is a good bet, is just going to get -- against tesla is a good bet, is just going to get worse. ben, thank you so much for joining us with the latest on tesla. for the closing bell and for me. romaine bostick is stepping in next four "what'd you miss?" we will be looking at emerging markets and specifically what could be the most important presidential election. this is bloomberg markets close. ♪

caroline: live from bloomberg's

world headquarters in new york, i am caroline hyde. here's a snapshot of how stocks closed. significantly lower and it seems only utilities outperformed. joe: "what'd you miss?" caroline: the jobs report is sparking more selling and treasuries. the latest read of the labor market has speculation of the fed raising rates for a fourth time. brett kavanaugh's nomination hangs in the balance. and, the man without an economic plan. why investors are embracing brazil's right-wing strong manned which could be the country's most important presidential election. it is friday so it must be jobs day. to a seven-day high on speculation that the latest data could clear the path for highest interest rates. we have our reporter on

this. you think technicals could drive higher? >> absolutely. in the last few days, there were key breaks. a 30 yeare number is breaking at three and a quarter percent. ten-year treasury is more of a benchmark and there's this wedge that is unlikely to be resolved until we had the 340 area. it is not certain and subject to great deal of economic data over the course of the next couple of weeks. romaine: is the 340 area of the equilibrium area receive folks come back into the market? guy: we are already seeing some. one of the challenges is that despite the wide yield differential in nominal terms between german bonds and u.s. treasury's, once you adjust for currency hedges, we are not getting a ton of foreign sponsorship. that level would support more

foreign sponsorship around that's level. joe: how do you interpret the fed speak? particularly the recent commentary suggesting we are not close to neutral and that traditional measures may not be useful. how does that factor into the market movement? guy: if you look at the fed dot plot from about the euro go, fed officials considered neutral interest rate and the neighborhood from 250 to 275. 75 basisnumber is points higher. i struggled to see what has changed in such a long scale economic sense. it is a long run concept. i struggle to see what has changed in a large-scale. i think many fed officials are getting id. word with consistently strong economic performance with the myth of what might happen a few years down the road. caroline: i'm interested you

brought up the hedging cost if you are a european investor or asian investor getting into u.s. treasury's. we are selling this as a global selloff. are we likely to see convergence at some point between the yield seead -- are we going to bill gross's that pay off? guy: it doesn't appear so in the short term and is a three triangular sliding resource problem. treasury yields, bond yields, in the shape of the currency forwards. tose things have to align reduce hedging costs and make it more efficient for foreign investors to buy treasuries. that situation has persisted where it has been inefficient for months. i don't see any obvious catalysts likely to change it. it tends to get worse heading toward your end. joe: what is your interpretation

of today's jobs report? guy: i think the number was solid, particularly taken into concept with last month's numbers as well. there was not a lot of particular pieces of strength. one thing that six out is the first period in which we have had 2.3% or higher average hourly earnings print since 2008 if memory serves. in 2008, average hourly earnings rising for a temporal region -- terrible reason. caroline: 3.4%, here we come. guy, thank you. coming up, the u.s. economy is not running out of steam, but as unemployment ticks lower, are we running out of quality labor? we will look at the global race for talent next. this is bloomberg. ♪

joe: here's what i am watching. we had the jobs report today with the wage numbers not going anywhere. it still remains a mystery what is going on with wages. i have a chart in the terminal not to based on today's data but captures what is going on. the blue line is small businesses saying find good workers is the number one problem. that has been soaring. on the other hand, measures of wage growth has been stagnant. this is different than what we have seen. why are companies having this trouble hiring without raising wages more? for more on the shortage of quality labor, i want to welcome william kerr. codirector of the

managing future work initiative and the author of the new book. he joins us now from boston. thank you for joining us. a very different environment than several years ago or companies were not having trouble finding workers at all. who is feeling this right now? this struggle to find workers. william: i think the struggle can be broad-based. one of the challenges immigration policy has for immigration work is that we are all participating in a system that could be crude and selection process. it could be that j.p. morgan chase is struggling just like google is struggling on the west coast. says a lot industry of the critical talent is foreign-born. romaine: you have an administration that says they are clear -- it is pretty clear

that they can cultivate the talent. is there any sort of pathway to boost the quality of the workforce without relying on immigration? to always boost the workforce domestically and abroad. alabama, and developing the education system throughout the country is important. we also have to recognize that u.s. has a special pipeline of talent coming from abroad. inventorsly, of the that have migrated around the world have come to the united states. that's important to tap into. that global talent for has been an advantage for the country. joe: if the u.s. starts diminishing the high skilled immigrant labor, could you think to see as the beneficiaries? william: i don't think anybody wins if you think about it in a global sense. us to matchfor

talented people to where they can best educate and train and put their skills to use, that is not a zero-sum game. that is a game everyone can participate in. whether there is one country going to gain the most, i do not think so. cities around the world are trying to move up their position and grab global talent. i would expect there to be a broad-based redistribution. caroline: it's interesting that i've come from the u.k. and that is the executive issue on the exit debate -- issue that the brexit debate is making. they are struggling to fight the overall national narrative. how much are we seeing these concerns happening in the u.s. and u.k. replicated in other countries as well? william: the mood toward nationalistic policy around the world throughout europe has been a struggle. when we are trying to compete with people.

it is not just one-sided we want , we also have to understand talented people get their choice across a lot of country options. how are we looking in the eyes of global talent? that is where rhetoric or policies that have little direct influence on global talent omission can impact choices -- emission can impact the choices of people. romaine: are you seeing any migration of talent that would have come into the u.s. prior to the latest immigration issues moving to specific countries? william: there are early indications that would favor canada and europe. mba admissions are down about 7%. we have some indication that has been preallocated north into some european opportunities. likewise, we ended the international onto per numeral in the united states, and other countries have been trying to track entrepreneurs to the

countries. there is early evidence that is moving away from the united states to other locations. caroline: fascinating trends you have been monitoring. william kerr, the author of the new book gift of the global talent. great global perspective. dayng up, it is decision approaching. we're live in sao paulo to discuss what many are calling brazil's most important presidential election ever. meanwhile, we will look at how emerging markets have been performing on the week. dayave seen an overall down and a down week for the emerging market index closing of the lowest since may 2017. this is "what'd you miss?" this is bloomberg. ♪

mark: i am mark crumpton with first word news. says she will support brett kavanaugh's nomination to the supreme court be but ensuring he will confirmed after a bitter fight over sexual assault allegations against the nominee. collins made her intentions known during a speech this afternoon. >> its legal principle about due process. the presumption of innocence and fairness. do fair on my thinking and i cannot abandon that. mark: lisa murkowski is

suggesting she will vote no on judge kavanaugh's confirmation tomorrow. she told reporters is time to think about what is called "the credibility and integrity of our allegations." that confirmation vote is scheduled for tomorrow. the nobel peace prize has gone to two activists for their work against sexual violence. the nobel committee says the two are being honored to try to end the use of sexual violence as a weapon of war. volunteers are burying more victims a week after a powerful earthquake and tsunami hit and indonesian city. emergency service has been burying people after they have been found after the disaster which killed more than 1500 people in and around the city

and island. will mostth toll likely continue to climb and the government has been clear on that. grim work, work -- but it is important for the dignity of people who died and important for their families. citesthe associated press the indonesian vice president saying it will take at least two years to redevelop and reconstruct the disaster zone. into congo today, a police officer was convicted of secondary murder -- second-degree murder. the victim was carrying a knife when the police officer shot him 16 times as he walked away from police. thers also convicted officer of aggravated battery but acquitted him of official misconduct. it is the first time in half a century a police officer in chicago has been convicted of

murder for this kind of death. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. brazil heads to the polls on sunday. even though we see emerging markets have their worst week since may 2017, brazil has outperformed on the back of this policy. markets are hopeful the winner can fix the stagnant economy in their country. the two front-runners are intensely disliked said there is a risk of a divided congress. elections, let's well can bloomberg's bureau chief joining us from brazil. earth are the markets liking this right-wing, rather disagreeable leader? >> he is what has become their

best choice against the return of the workers party. we had a lot of pro-market candidates. 13 candidates this election. the former finance governor -- minister and governor did not go anywhere. the one that is pulling highest is the former governor of sao paulo. people are tired of the workers party and they see this candidate as the best alternative to prevent them from coming back to power. joe: for people who do not know the mechanics of brazil's elections, what specifically happens this weekend? julia: this is the first round. voting is mandatory in brazil so the turnout is usually much higher. we all vote on sunday all-day. it is electronic voting so we are likely to get the results by the end of the day around 7 p.m. or 8 p.m. new york time.

if no one gets more than 50% of the ballot votes which is the vote discounting if you spoil or .on't vote if you get more than that, we go into a second round of the top two. it looks like the top two will be the leftist workers party and bolsonaro. romaine: once we get to the second round of the vote and we find out who the new president is, what kind of change is he potentially going to bring other than getting rid of the workers party? are there concrete proposals he has for changing the economy? outer --om both an onaro, he said he wants to privatize everything he can. he also wants to cut government spending and make a smaller state. this goes against a lot of the things he has always voted for in congress. he has been a congressman for 30

years and does not have a particularly liberal history. we don't know what this policy would look like. it is what his economist is proposing, how much he can get through is a big question mark. joe: is it possible that bolsonaro gets 50% and anne's in the first round? -- and ends this in the first round? julia: it is unlikely. it would be a surprise. had a person in here of signing the possibility of 20%. the possibility emerged over the past week as bolsonaro begin to rise in polls, but it would be a surprise. ite thank julia le you. for more on brazil, let's bring in brian. it is wonderful to have you here. the emerging markets sold off

this week, the worst week since 2017. brazil is the real outlier here. the election, of which is in the headlines now, the thing to keep in mind is brazil was part of the bricks. it was one of the faster growing economies in the world. brazil has significant theyultural surplus and have this hedge for higher oil prices in terms of ethanol production. there is positive things still there in brazil. some of the political situations have happened more recently with a car wash scandal and the personment of the last indicates the political system in brazil and democratic institutions are strong. joe: investors want the government to cut spending and deal with the deficit. wins, will he have the political capital to go

ahead with it? brian: if he wins in the first round, that will give him a lot of political capital. everyone is aware of the situation with the fiscal deficit. from the macro economic standpoint, that is the one big negative for the brazil economy. shrinking,eficit is investment flows are starting to come back in, inflation is coming down. it is a lot of economic indicators adding to this better picture for brazil. the bigger picture is the deficit issue of an overly generous retirement program. resolved, that is the one big negative on the table. romaine: i feel like this story has been playing out in a lot of developing countries, but at the same time trying to maintain growth. how is brazil going to reconcile these two? brian: ironically, part of the

dispute between trade -- the traded beat between -- trade disputes between china and the , with the decline in soybeans from china, brazil is taking up that and that is mitigating some negative pressure on growth. joe: you are positive on brazil, but how specifically should investors capture some of this upset? brian: given what is going on in em, the last couple days a meaningful selloff, brazil has already had their recession. a lot of the negativity is built into the market, so there is not a lot of room downward in this point -- at this point in brazil. there are good quality companies in brazil.

one company has a 70% market share in the beer market in brazil. despite the recession, consumers are going toward more premium beers which is helping drive growth despite the recession. caroline: really interesting potential points to invest in. brian, wonderful to have your perspective. coming up, kavanaugh winning support from both sides of the aisle sending his nomination forward. we had to washington for the latest. this is bloomberg. ♪

caroline: brett kavanaugh is gaining support from both sides of the aisle. >> mr. president, i will vote to

confirm judge kavanaugh. , another shortly after democratic senator said he would vote yes. silk joins us from the latest -- with -- sahil joins us with the latest. is it pretty much a done deal? have 51augh appears to votes in the senate barring any surprises. the one democratic vote he will get is joe who came out in support for him. . the one republican against him is lisa murkowski of alaska. it was never expected to break .arty lines for him there is a five to four majority that is very significant and will lock in the majority on issues where the supreme court already tilted to the right such as voting rights, gun rights, campaign finance.

it stands to tilt the court on issues where it has previously leaned left including abortion rights, gay rights, operative it action -- affirmative action, the death penalty. brett kavanaugh can be a on the court for another 30 to 40 years . listening to the beginning of susan collins's speech she went through his judicial check record -- track record in i was waiting for the pivot, but she didn't spend that much time on them and was fairly dismissive of those allegations. in the end, the pro-kavanaugh argument got its first 45 minutes uninterrupted argument across cable news. a very nice way for the gop to end their argument. it worked out well. sahil: senator collins's

argument was that she believes the president has wide latitude picks up record justices and you have to find a high bar for disqualifying a supreme court justice. she is voted for every nominee that has come before her to the senate including bush nominees and a couple of obama nominees and neil gorsuch. collins said she does not see anything disqualifying in brett kavanaugh including his ideological record and in the allegations he has faced. she expressed sympathy with christine blasey ford who is his accuser, but said she did not see corroborating evidence which is not enough to deny kavanaugh this promotion. one interesting thing she did not bring up was the part of the nature of his confirmation -- of his the -- of the hearing where he attacked democrats and went after the left and talked about a conspiracy theory where this conspiracy when he

was part of the chem star legal team in the 1990's. there was a lot that collins did not touch on that has been cited by democrats. this is going to come down to about 51-49 vote. have we had a supreme court confirmation that came down to a narrow vote before? sahil: the closest in modern thomas'twasarence thomas which was 52-48. but it is highly unusual. most of the votes have been confirmed with at least votes in the realm of the high 50's if not the 60's or 70's.

it is hard to believe justice scalia and ginsburg were overwhelmingly confirmed with somewhere between 90 and 100 votes each. scalia was unanimous. the supreme court confirmation process has become more partisan, but this is a level above anything we have seen in the modern era. caroline: and it feels it is going to play itself out. sahil, thank you. a quick check of the latest business flash headlines. one of the nation's most ever.ive weapons system turkey could cut off the flow of aerospace parts to lockheed. turkish companies will make about $12 billion of components for the the plane. yale university is getting into the market for cryptocurrencies. according to a person with knowledge of the matter, the school is among investors

focused on assets raising $400 million. that is your business flash update. joe: "what'd you miss?" office rents in cambridge are now higher than those in new york thanks to biotech firms. we talked to alexander, equities co-founder -- and equities co-founder to discuss the market. >> there are 10,000 diseases known to mankind today and only 500 of which have been addressed in some fashion whether it be treatment or cure's. if you think about that, 5% of diseases have been addressed and the rest of not. how do you manage a country, a world population without making much greater inroads? our thesis has always been the biology revolution being in the

very early stages. almost in94, it was its infancy. this would be a worthwhile industry to watch. >> cambridge, before you were here, it was a lot of parking lots, kind of drab office buildings and th not a lot going on. what made you want to invest? >> in 2003, they had made an announcement to decide to transfer worldwide headquarters from switzerland to cambridge. that informed us that we should take an ever increasing, bigger stake in the cambridge market. no one ever imagined what it would be today. >> take me back to 2006 after you purchased this lot. how easy was it to fill with biotech and pharmaceutical tenants? >> we saw an opportunity to do high-intensity labs there and

create rents from lower office rents to much higher laboratory rents because of the infrastructure. we never imagined rents in cambridge would begin to climb at a rate they did over the next couple of years. >> i want to ask you about that. this is shocking for me that last quarter, of all the major u.s. real estate markets, ingrid has the lowest vacancy rate of , the highest asking rent for square foot at about $85 per square foot, it has seen the greatest growth of any major u.s. real estate market. what is driving that? >> on the lever tori side, which is 11 focus, the market or 12 million square feet. the vacancy rate for lab is closer to something up maybe around 1%, maybe more or less.

rents have continued to climb over the years at a pretty healthy pace. the reason is because this is a very dense and concentrated area. there is not a lot of excess land and not a lot of buildings you could tear down or convert. good markets are driven by high demand and limited supply. and, a healthy industry. story,e: for more on the visit bloomberg.com as we report on health care. coming up, he said she said. president trump warned saudi arabia's leadership might not last two weeks without its relationship but then saudi arabia praises their relationship. we will have details on this rocky relationship next. this is bloomberg. ♪ ♪

caroline: president trump is

warning the saudi arabia leadership might not last two weeks without american support but they say the saudi crown prince plays -- praised their relationship with the u.s.. it seems there is plenty of love still there apparently. >> the crown prince said he loves trump and workings with him. we asked him specifically about this rude line of donald trump's about the crown prince's father saying the king would not last more than two weeks. the crown prince thought he would last more than two weeks, but he brushed it off and said you have great friends and 99% of what they do you like and 1% to have to put up with. we are saying it is a bit more than 1% with donald trump. he said he loves working with them. there was absolutely no change in the u.s. on the relationship

despite -- u.s. saudi relationship despite trump saying this. another trump like character in the orbit of the crown prince is elon musk who has talked a lot over the last several weeks about possible saudi investments or taking tesla private. what did he say about that? >> he was a bit dismissive. he said he would not want to say anything negative about tesla because the sovereign wealth fund is invested in tesla and he company, but the he did not sound like he was falling over himself to do a major investment. we asked them personally if he had ever driven a tesla and he admitted he had in california with the king of jordan, but yet not asked to have a go. he did not seen that -- seen that excited about it. he has talked about -- seem that excited about it.

manufacturingt batteries. he is interested from that perspective. romaine: regarding the aramco central ipo, did he address some of the concerns investors had with transparency? >> i wondered whether this was the part that he had granted us this interview short notice which ended up being 80 minutes. there had been this view that the big ipo's would build as they raised $100 billion of sovereign wealth funds. it was delayed. we heard of the deal that aramco was going to be buying, raising money in the market to buy part of subs. he said absolutely not. in two years, we will have the ipo. i think he was trying to answer some of those doubts. caroline: thank you.

live from london. she is staying up late for us. the first round of the brazil presidential elections. that is all from us. romaine: thanks for watching best joe: things are watching, this is bloomberg. ♪

emily: i am emily chang in san francisco. technology."mberg in the next hour, the big china hack revealed by bloomberg. the supermicro impacted software and facebook and apple were hit. another tweet storm from elon musk. he fired off more than one dozen messages lashing out at the sec and short-sellers. could this jeopardize the settlement he struck days ago? tencent