3.9%. declined.ative, it is scarlet: sorry. joe: rising rates lead to selloff in stock. rising rates lead to declining rates. >> that's exactly it. there is the closing bell. this is a genuine software. declines of at least 3% in the nasdaq is off by 4.1%. you are looking at losses and all of the industry groups. utilities are the best performers and they are only off half of 1%. technology is off by 4.8%. >> really interesting. the 10 year yield is different lower on the day. just to the tail end of trading. people are saying this will be a haven. isrlet: within the dow, it

falling 848 points. earlier was 600 something and now it is 848. joe: that is pretty remarkable. important that people started buying bonds at the end of the day because what characterize the volatility we saw in february is the fact that there is no place to hide. every part of your portfolio is getting wrecked. it seems like you get to that part -- point with so much volatility. lisa: two-year treasuries were gaining throughout the day. that is an indication that people were going to cash a short-term debt. that has been a reliable haven. scarlet: we are looking at falling in the dow but up from the 20 day average. look with a deeper abigail. look at let's take a the s&p 500 and the worst selloff since february. let's look at this five day chart. it started last week, thursday

into friday, but funny enough, relative to today's action is benign. this steep decline today over the last five days, down 4.8%, a worst five days since march, this type of selling tells me investors are looking for a capitulation bottom. . they are looking for reason to buy. this chart suggests traders have not found that capitulation bottom. yesterday, the s&p 500 held onto the 50 day moving average but the suggestion was that might not continue. looking at the action earlier this year when stocks fell on rising rates, it was below the 50 day moving average. take a look at the bearish chart. see moreests we could selling not just down to the 200 day moving average and blue, but

perhaps even through it as the buyers really look for some sort of bottom. it will be interesting to see how the rest of the week plays out. lisa: indeed. i'm looking at the relationship between stocks and bonds. the 10 year yield dipped below -- if the lower. the 30 day yield -- dipped lower. the 30 day yielded not. these frequently move in tandem dramatichave a diversion with 30 day yield shooting higher in the s&p 500 tooting lower. even as a get the selloff, romain, we are not getting the flight to longer-term treasuries the way we have in the past. romaine: when we talk about all of the money flowing out of stocks and etf's, the big question is where is the money going? take a look at some of these inverse etf's. are short bets against the

market, particularly the s&p 500. intow pretty heavy flows one specific etf up about 9%. look at the bond yields. quadruple what we would normally get on a given day. x is the inverse s&p rising as well. it is three times the daily average we would normally get. a lot of people are thinking and toothe sentiment short the market anyway you can. scarlet: great wrapup. thank you so much. still with us is jonathan of credit suisse. toathan, i feel like we need set up for tomorrow because we look at a stock market that closed at its lows. some would argue it is a bearish sign because there is a lot of pent-up demand to sell. what do people do or look for hitting ready for tomorrow? said this before,

is this a low point? i don't know. would i be by now? yes. if it was down to two or 3%, i would be buying more. we are talking about the price of the market, there is no discussion on new information on what made the stock market less valuable. season, expectations are almost 21% according to my math. if you get a typical beat, you are close to 25% year-over-year. of that,es added some but the underlying revenue numbers are solid. there is good news on the fundamental side of it. ultimately, it will win out so i'm a buyer. said, marketsg can continue on a downtrend for a long time because of the

cascading effects and people looking at what their neighbors are doing and panicking any motion. are there certain things you look for in the market that typically characterize volatility? whether it is volatility spikes or shape of the futures curve? things,: there are two when we see the vix and it is over 20 you tend to get this great return pattern over the next two to three months. is if you getear a return in two or three weeks. what it really means is the market got spooked and you need to sit tight. that maybe the most important thing. lisa: jonathan saying he would be a buyer is not today maybe at the bottom. you agree. are there particular areas that will withstand ongoing jitters

relating to trade? where would you be lying? >> where we see the greatest margin strength on the index right now is energy as well as industrials. they are groups nobody likes or nobody wanted to buy, but they are groups that can pass on price increases. some of the industrials don't count. the transportation companies and the like are struggling with input costs, but there are bigger industrials that show much stronger pricing overtime. i also like financials here. it is underreported that the yield curve is more upward sloping. nobody wanted to touch this group. some of these value cyclicals look good. seasonality favors them. nobody has wanted to touch them. the areas of the market that are dangerous are the defensive stocks that had a great rally over the summer despite yields rising. people are piling and again to try to annoy the risk and i think the defensive stocks have little pricing power.

why are you going to buy defensive securities when yields are rising and earnings are accelerating? it is a tough moved to make in my idea. scarlet: where does that leave the sector like technology, jonathan? jonathan: if you're looking to play the short-term story, you go into what got beaten up the most. that's will bounce back the most. you don't want to dip your toe into the water. or onesnto utilities that are defensive in nature, but you do not get the bounce back. as far as the technology sector and, broadly the faang stocks, the reason they are up is because of fantastic underlying fundamentals. the addressable market is huge and i like that. i think it will continue to lead. joe: one area that has been really ugly is the homebuilders. it is perceived to be rate sensitive. is nowith that, there

indication rate hikes will slow down anytime soon. is this telling something about the macroeconomy? the charts look terrible. gina: i think it tells you where you are in the rate cycle and economy. it is typical homebuilders and all goes together peak and underperform well in advance of economic recession. auto is a perfect example, they tend to peak when the fed hikes rates and underperform into the end of the cycle. housing is following along in the shoes of the same story. rate are rising because sentiments of the equity markets are underperforming. it tells you your tour the end of the cycle and does not give you a hint of where the cycle will end, it just means they are underperforming. lisa: does this mean the housing sector will fall out of bed? are we in the imminent throes of some bigger decline? joe: yeah, it's like we are

continuing on the sykes and this is a major part of the economy -- on the hikes, and this is a major part of the economy. gina: i hold a dinner once in a while inathan: i'll do deserve -- hold a dinner once in a while and the consumer is an brilliant shape. they are comfortable with your job -- with their job prospects. to want to buy the homebuilders and why is the housing data not strong enough i ask them. housing is less affordable than yesterday and will not be more affordable. i'm not fully convinced these things will not get a bit of a bid, but universally, the sentiment was negative on them. gina,t: jonathan, and fantastic conversation and thank you much for joining us on this pivotal day in the market. we have breaking news. square's cfo is stepping down.

accepted an offer to become the ceo of nextdoor. the shares are falling and after hours. also, square was already down 10% today alone. the 4.5% is on top of that. are still upshares about 100 to 3% on the year. this is a small dip considering 123% on the year. this is a small dip considering. scarlet: more to come. this is bloomberg. ♪

lisa: the market selloff

coverage continues. u.s. stocks are falling the most since february. the nasdaq to climbing the most since june of 2016. the s&p 500 you can see there is closing below 2800 for the first time since april. seehe yield front, you can 10 year two-year yields ended the day lower. 30 year yields are higher showing long stated u.s. government that is not a haven. joe: for more on this and everything going on, let's bring in luke. -- luke and michael. michael, what stood out to today's action? michael: we have a little bit of the 2011 2012 days when the best performing assets that year got sold during risk off. fewgtx was one of the

equities up on the day. this is somewhat indiscriminate selling here. i was listening to your discussion with your prior guest a few minutes ago and i have to say if the narrative is that interest rates are hitting levels and driving the risk parity models into an uncomfortable space, i would say and suggest if this was and inflation and not a nominal risk discussion, we would be in a scarier place. i'm a dip buyer and expecting this violence will be short-lived. romaine: when we talk about the potential for dip buyers and you look at the banks and the volatility with the option market -- look at the vix and

the volatility with the option market, -- luke: we saw 1.6 billion contracts tied to vix option straight day -- today which is the most since february. anytime we see that we are talking about bad news. to michael's point, they are on dip buying. if you're looking for reasons to do it, across all of the metrics, ice cream momentum with the etf being oversold and ever since the chinese the valve. if you look at growth versus value, the russell 2000 -- russell 1000 companies, that is the most oversold in a long time. all of these things are at extremes. we can get a little further and we saw that in the wake of the val.ese the foul -- dea lisa: i want to go back to something you said which is you would be a dip buyer.

jonathan gollum of credit suisse is a dip buyer. if there are so many dip buyers, why aren't they buying? michael: you see a violent shifted downward in price levels. that is disturbing. it is still falling so you can wait a day or two or three to catch it. it's nice to see the vix curve inverted and steepen as one of those indications. we are approaching key support levels and it will be interesting to see how they go through them. we ran through some of the earlier support levels earlier this week. --one has to russian rush in to buy this falling knife. we are between two earnings seasons. q3 is about to start, but all of the economic data since q2 has been pretty good.

quite good in the u.s. in terms of pushing this inflation like growth there. you saw that reflected into two 2 numbershere -- in g where operating markets didn't contract. since we have been tepid since then, the q3 numbers will come in strong and allow the dip to get bought. you want to see a couple of the earnings reports before people put to be didn and by the market -- to put two feet in and by the market. --e: lisa: what does that mean? luke: volatility futures curve is normally upward sloping because if you think things will and sometimes in the future they will, you kind of cluster and then you get a spike. frontou see the

month contract rate, that tells you the bad times are here. at the other end, and optimistic note, that is saying volatility is expected to normalize in the future. we are in a we're position where it is inverted in the first few months but reese deepens after the year. romaine: a lot of the talk today has been about rates and the inflation environment, but as we get into earnings season, if the uptrend people have been looking for does not materialize, could that throw another wrench and potential rebound in the market? season: if we get a q3 marginally worse than q2, which was strong, it will be a in interesting -- be an interesting view on how you consider equity performance into 2019.

one of the key metrics i will be looking for is operating margin compression. it's starting to show revenue pressures or cost pressures or maybe bottlenecks coming from late psychodynamics. we did not see that and q2 and i do not see an argument for seeing it in the season. clues are about those coming onto the horizon that the ceos go through in the discussions about their outlooks, that i think will be something to pay attention to. again, there is often substantial lag in when these things show up in earnings. lisa: everybody is a buyer but not really quite yet. .ichael purves of weeden & co

coming up, first reaction to the u.s. selloff and more impact. the worst is next with the worst day since february in u.s. stocks. this is bloomberg. ♪

lisa: we want to get more on today's selloff. for more, let's ring in our bloomberg columnist mike regan -- bring in our bloomberg columnist. a lot of the indexes falling the most since february. as we take a step back and look at the anatomy of the drop, what insights are we gleaning? >> you can look at certain sectors and stocks and say they are reacting to the news.

down on imports of luxury goods is a big one. from thengs outlook industrials construction sector you cany alarming, but only explain so much of a drop like this with fundamental news like that. at some point, there is forced selling. lisa: at some point you blame algos. >> right. sometimes they sell because of an uptick in volatility or reduce leverage as a result. what hard to know exactly happens in that space today. there was a lot of indiscriminate selling. all 30 stocks of the dow are down including home depot which is a stock that usually rally sunday's when a big hurricane will hit. it shows you there is a lot of selling that is not a result of

fundamentals, more because of various trading strategies that when x happens, sell. joe: momentum stocks. they are getting clobbered. what luke mentioned earlier went down. i andlook at shop if square earlier in the show with the cfo, it has been brutal. square is down over 25% since october force -- first. ones on thef the way up our people -- the ones people dump in a hurry. it shows you what an unusual day it was for the highflying tech stocks. romaine: i understand you would

have this indiscriminate selling on a day like today, but want to clear the people come back tomorrow or the next couple of days, will they gravitate back to the momentum names or growth names, or is there a reason to sit this out? mike: it is kind of the throw the baby out with the bathwater selling. it's something we say with a shaped recovery. whether we are at the bottom or there is more to go, we do not know. the other phenomenon happening a lot in equity market corrections is -- for the oneis -- for the e worst day is close to the bottom. there's a good chance today is the worst. romaine: you notice used the word correction there? [laughter] mike: what also happens reliably is you get recovery and then you read test the low again. don't be surprised if we see a little bit of stretch back and another retest of the low until

it is clear skies ahead. joe: should we be nervous all of the guests are saying by the dip and this could be the low? today did it feel like things are really bad. mike: you're right. by the dip has worked out for everyone for years. i would not criticize him too much for having that knee-jerk reaction. joe: i won't criticize them. [laughter] lisa: there has been a shift though and the ship has come in credit markets. and itsing at hyg shares are at the lowest since 2016 of november. you have to wonder, if you get money coming out of credit, what that does to the price of equities. mike regan, thank you much. we have much more on the selloff next to keep you up-to-date. the nasdaq is plunging the most since 2016, the s&p 500 and others dropping to the most since february. this is bloomberg.

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mark: i am mark crumpton with first word news. president trump has been briefed on hurricane michael. the storm made landfall near mexico beach, florida as a catastrophic category four hurricane pushing a deadly storm surge and whipping the coast with 155 mile-per-hour wind. during his briefing with homeland security's secretary and fema administrator, the president expressed concern for those stuck in the storm's path. >> one of the things that must be said is it is not that easy for people that have to leave. some of these people are poor and is not easy for the people

with the money -- without. the money necessary to leave. . we are doing a lot of different things to pull people from the area. a lot of people are poor and some of those areas. it is tough for them to leave. peopleore than 375,000 of the coast have been warned to evacuate. the u.n. office for disaster economicction says losses from earthquakes, volcanic eruption's, floods, and other climate related disasters surged to nearly $3 trillion over the past 20 years. it is up more than 150% from the previous twenty-year period. the u.s. topped the list at more than $940 billion, nearly twice china which came in second. japan, india, and puerto rico come pleaded the top five -- completed the top-five. areers of congress

demanding answers from saudi arabia about the disappearance of a government critic who turkish authorities said was his mission. a writer for the washington post has not been seen since he entered the saudi consulate to get paperwork for his impending marriage. >> i've never been more disturbed. if this man was murdered in istanbul, they'll across every line of formality in the international community. if it did happen, there would be hell to pay. this hangs over the relationship like a very heavy cloud. mark: president said he is spoken to the saudis about to the reporters disappearance. a warning from the ceo of microsoft has just been speaking to us about tech security. >> the next big security attack the hvac system.

we have a secure operating system talbot sure all microcontrollers going forward to ensure all micro controllers are going forward and are secured. mark: 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. joe: we will get back for more on the markets in a moment. the other top story at this hour, hurricane marco -- michael making landfall with some of the higher wind speeds in history. the strongest storm to hit the continental u.s. since 2004. here to discuss

the impact on the energy sector. what kind of damage are we seeing tina: we don't have damage reports yet. it is affecting infrastructure, property, so we will see losses associated with that. as the storm approaches, we see rigs in the gulf evacuated which is normal. the interesting thing about the storm is how it threads the needle. it did not hit any major population centers and skirted to the east of most of the gas production. while we have seen 40% of the oil shut in, the market is betting this will not last long and we will have people out on the rig shortly. lisa: is the damage worse than or less than people expected? tina: we don't know yet but the estimates are far below what we saw with florence. less serious storm in terms of the category number but caused a lot more damage with the rain associated with it.

for this, it is much more than -- much more of a wind story instead of a rain story. it will be over the ocean my thursday night or friday morning. it will probably leave four to eight inches of rain. 12 inches in isolated areas. that's nowhere near what florence was jobbing -- dropping. romaine: so that means we are not going to see the same type ,f disruptions like energy supply-chain, or manufacturing. tina: we are already seeing power outages but not anywhere near damaging -- as damaging as the carolinas. after florence, more than a million people were without power. aboutis we probably have 200,000 because of where it struck and how it is striking. some people will lose power for substantial time because you see pulled come down. but it will not be as widespread and hit as many people. , ourne: tina davis

bloomberg editor here talking about the hurricane. we will get back to the markets and the selloff. washington,kevin at and he is a market strategist. we saw the s&p closed below the 2800 level before july and it was the ceiling we had been bumping up against for quite a few months. once we broke through it, everyone thought it would be smooth sailing. from a technical perspective, how significant is it that it went below the level? kevin: i don't know that it is significant, but from a technical point of view, but i not aay -- and i'm technician, but what i will say is that corrections are very normal. we would expect to see volatility in the short run. investors have to be careful in the knee-jerk reactions. getting out of the market on the

way down. once the market remains volatile, it can be rain -- remain volatile from the upside as well. one advice i give to people is not to make knee-jerk reactions as you could find yourself out of the market and against the market flying in your face if you're looking to trade. it is difficult. lisa: i want to do a poll since and michaelm gina purves. ll be ay this wi buying opportunity, do you agree? stockswe have a list of we have wanted to own, very good companies with great balance sheets and consistent businesses, but they have been too expensive to purchase, we are one of the managers looking at this and kind of getting interested because the suddenly

-- because suddenly, the price tostocks that were not set -- since we hadhile this. it is a good thing. joe: why don't you give us some names? where is the value gekko -- value? we are not seeing it in tech yet, but we are seeing things in a consumer staple area. it may be a little early for utilities as the backup and yields is somewhat interesting. i cannot give you specific names because we are looking to purchase them, but the general characteristic of the companies with very consistent cash flows because we are late in the cycle. we want to see less than 30% that in the capital structure. -- we like the idea

companies are raising the dividends year-over-year. we want to move up the quality spectrum in the portfolio. lisa: kevin, thank you so much. a market strategist and portfolio manager. g the selloff after a volatile day. we will continue to follow that from new york. . this is bloomberg. ♪ s is bloomberg. ♪

lisa: a republican senator calls for a federal review of broadcom's $19 billion merger today after a memo sparked national security concerns. broadcom said the memo was likely fraudulent. kevin cirilli spoke with the senator on the proposal. >> earlier in the year, broadcom

had a deal they were working on qualcomm and the world national security interests involved. it was president said something that was against our national security interest. i see no difference in this. computer associates have a lot of their software and hardware scattered throughout our electrical rid in our power plants -- grid in our power plants. it goes to the core on is this a national security? this used to be a chinese acurity but inez -- it is united states company but does that change anything? kevin: the pentagon is saying there is a document on capitol thisin your office said document has fraudulent claims regarding the potential sale. >> i have not seen the document so i'm unaware of it.

kevin: have you urged the white house for review and at what time do you think we could get on that? >> i told the secretary of homeland security we should have it. it was a one-sided exchange and that she was not reviewing whether there was already a cf sayreviewer not but we will to the entire community this will be something needed reviewed. the president has said he talked to the saudis at the highest level about this washington post columnist missing and a critic of the saudi arabian regime, what do you think this means for u.s. saudi relations? we should say presumed to be killed, but i'm alarmed by it. i would say saudi arabia, for some time has been doing things i do not approve of. the war in yemen, over 10,000

civilians of died in that war. last year was 150 civilians at a funeral procession killed by saudi bombs. one month ago, 50 schoolchildren killed on the school bus by bombs. i do not think the united states should be involved in that war. i have been opposed to selling arms to saudi arabia. vote on is supposed to when we go to war and we are involved in that war. even before the journalist went missing, i was opposed at arming saudi arabia. now with this brazen attack where 15 saudis arrived in planes and they have some of them on camera unloading and getting their and their planes took back off and there is no more journalist. this is a journalist who head been working here for one of our newspapers so i'm very alarmed at this and i will be trying to get to the floor to stop their arms. it is not a privileged motion this week, but as soon as any

arms deal go through the process and are announced, i will force the senate to vote against this. 47 senators voted against the arms deal. with this latest possible execution or murdering of the journalist, there's a possibility we could get to a majority that says no more arms. kevin: see you think this incident but that risk the sales of arms? >> absolutely. i hope it motivates everyone to and everyur kinship thing we do with saudi arabia. kevin: the president has said he has spoken with folks in saudi arabia. secretary pompeo has said he thinks there out to be an investigation into what happened , but is that investigation good enough coming from saudi arabia? >> no. that is them investigating themselves. the early reports have shown this is linked to the saudi government. nothing happens in saudi arabia

without the government approval. journalist turned up alive, i think we should discontinue our arms sales to saudi arabia and we need to be voting in the senate and debating whether or not we should be involved in yemen. kevin: your republican colleague from tennessee had said the forrt for the arms sale saudi arabia is the lowest ever. >> let's hope so. i have pushed the issue in the past and he is not been supportive but i hope you will this time around. kevin: even more broadly in with regard to how the president has negotiated internationally, what do you naftaf him renegotiating and turning his attention toward china? tariffs.t a fan of they are just attacks on american consumers and i'm not for more taxes on americans. i waseing said,

pleasantly surprised we are not losing nafta and maybe we are coming to a deal. the fact that they have come to a deal with mexico and canada, we are looking to the details and i do not like we'll does on how many american parts had to be in cars and with the wages had to be here and there. there's a lot of managed trade to not only this. deal but the original nafta a lot of government bureaucracy is -- this deal but the original nafta. a lot of government bureaucracy is still involved. hopefully this will be a deal we can cement and some of the things not so good in it, maybe they can be removed. lisa: that was the republican senator from kentucky, rand paul. it's time for smart charts where we dig in to timely topics with top technicians. abigail: we're going to be digging into the selloff today and breaking it down with david keller. joining us. you for

the s&p 500 and the dow is down 3.3%. the nasdaq is down 4%, the worst day since february. the s&p 500 has its first five a decline since november. risk off. have we found a bottom? david: the short answer is no. to be honest, this is a pattern we have seen approaching for a number of weeks. one of the things we're looking at is negativity and breath. we have seen distribution in terms of stocks staying above the 200 day moving average. things are recognizing stocks are trading lower rather than higher. this is the s&p 500 with the moving average here. as you can see, we approach moving average support which is where we hit the bottom in may and april, and in february. what concerns me is if you look at the bottom panel in white, we have the percent of s&p 500 stocks above the 200 a moving average. stocks above the

200 day moving average. a lot of the stocks are above 200 day moving averages but have of the stocks have already broken down. a lot of groups outside of the s&p have started to show distribution which is a concern. abigail: the candle we have today is ugly going down toward the 200 day moving average. no capitulation bottom and not even coming close to finding it. do we go the 200 a moving average? where does support taken? david: the way to avoid fear is yesterday. have a good plan yesterday and have a sense of where you would want to revisit a long position. andlook left on the chart see where we are relative to significant support levels going back. we have broken below so far assuming this is where we are

at, below the 2800 level which is back here in august and july. below their, we look at the 200 a moving average. below that, you have support around 2700. in this range, the level at which you would expect markets have sold off to find support, we're not showing a measure of momentum, but it is right at or below the sold region coinciding with short-term balance. we have to see thursday and friday. abigail: caps off the buyers step up, cautiously tiptoe back in? david: exactly. abigail: this is the longer-term chart of the stocks relative to the 200 day moving average. control, bute in one thing standing out is the , a bearishme high divergence and hugging the 200 day moving average. buyers are trying to hang on but not doing it.

does that tell us the s&p 500 will go the same way? this is a leading index. what does this mean for the major averages? david: what is concerning about the chart is that semiconductors content to be leaders. when semiconductors underperform, it is hard for the market to do well in a sustainable way. rotation from an accumulation phase where higher highs and higher lows is a sideways trend that we have seen for the last six months or so, we now see a rotation onward and distribution -- see distribution. is raking down to the 200 day moving average for the first time since back your at the beginning of 2016. all of those things suggest a rotation from offense to defense. when a group like this trades lower, you have to be concerned about the ramifications. abigail: the area of congestion there, if it were to break down, it would be below 1000. do you think we could see that

going back toward 2016 levels? david: we could. once we are below the 200 a moving average, if it slopes downward, that illustrates a .otation of accumulation to distribution that is not the thing that tends to turn up, it tends to be more of a process. abigail: let's take a look at your next chart. this is oil. david: oil is at an interesting juncture. when we see so much negative rotation on the equity side, thinking about what is looking more attractive is important. oil is a chart where you can see the opposite of semiconductors. any have rotated into completion phase. we are at significant resistance around 75. comparing that with a bearish convergence, complying with the fibonacci consistence level, long-term it is an interesting bet. even higher than $80 a barrel.

abigail: david, thank you so much for joining us. i'm so excited about our conversation i cannot get your name outright. lisa: let's talk tech. we have been speaking with microsoft's chief executive and discussed the tech giant. >> we're lucky to be a software company at a time where our economies are being shaped by digital technology. we needed to be much more ourortable in terms of identity and empowering others. i think that is a key part of what we have to in terms of our own refresh. satya nadella speaking to caroline hyde. we will bring you more highlights today and tomorrow. the markets a lot today is starting in asia. let's bring in shery ahn who will carry us forward.

what do you expect asia's reaction will be? shery: asia stocks ended flat after seven sessions of losses and now we see this in the u.s. -- dips in the u.s. market. joe: flat is the new rebound. shery: [laughter] that is so true. it is completely flat, but that was good news. the shanghai composite rebounded in last two sessions. even when we had the strength of beenapanese yen which has stronger against the u.s. dollar for the last five sessions, which would usually take a hit on japanese stock market, they didn't yesterday. they rose. it is great having these new numbers and data out of the japanese economy showing that core machine orders were a leading indicator of. when it comes to --indicator of

capx. when it comes to that, we expected to fall. romaine: the biggest loser in the s&p 500 was tiffany. we get news out of china that they are bringing more -- they are being more cautious about what people bring into the country. shery: last week, we broke speculation that we were in forcing customs and being more strict about it. now the cfo comes out and says that is what is happening. joe: they should have traded on the segment. shery: i know right? pictures ofaking their customs enforcement and that is what happened. we saw of the mh take a hit -- l vmh take a hit. the luxury industry is making a third of industry. lisa: who is leading here in the selloff? tensionsof the trade

of who stands to lose the most. a big question. who wins or outlasts the other. the chinese economy seems to be slowing down more which is what the trump administration would like to see in that regard. it does not help but when you see all of these trade tensions and people talking, you see the chinese stock market plunge more than 3%. shery.hank you so much this, the world agricultural supplies demand report comes out at 12 p.m. eastern. joe: i will be watching economic data cpi out at 8:30 a.m. romaine: and numbers on u.s. jobless claims at 8:30 a.m. eastern. lisa: that's all for "what'd you miss?" romaine: "bloomberg technology"

is next. joe: have a great evening. this is bloomberg. ♪ ♪

emily: i'm emily chang in los angeles, this is bloomberg technology. the latest on the broadcom acquisition. a memo sent to lawmakers calling for the deal to be reviewed has been tagged a fake. plus, is the verge of a tech disruption? we will speak to the analyst behind the forecast. can give it the