china and u.s. relations? are you optimistic that it will be done by the g20 >> i'm hopeful. i know these are important trade partners and it is in everyone's interest to get to constructive outcomes. caroline: there's the closing bell. let's check out these numbers. the dow is up more than 400 and such a such ans acceleration into the closed. -- into the close. scarlet: the last 2.5 hours was buying with a vengeance, and in contrast to recent days where a lot of the gains we saw would , i'm looking at the advance and it is a broad advance. more than four stocks higher on everyone down the new york stock exchange. when there is an advance it is

broad and when there is a selloff that is brought as well. joe: the stock market is back to yesterday at 2 p.m. because we have the really intense selling. even with this impressive close it's onlythe bulls, scratching back a little bit of what has been lost. caroline: whiff to put this into perspective, the worst october -- the worst month since 2008 for the nasdaq. scarlet: it's worth pointing out small caps have outperformed the big caps as well. they sell less than the big caps yesterday and are rising more than the big caps today. we have numbers out of amgen and we are waiting for facebook. that will determine how these tech stocks go. caroline: this is a beat. scarlet: as a result, amgen

shares are moving higher in after-hours. maybe not. it closed at 189. joe: it looks like they are getting a bounce. scarlet: amgen is coming out with the beats, but we are waiting for facebook numbers as well. ahead of that, we want to bring in our panel of guests. david kirkpatrick, founder and ceo of tech economy -- techconomy. david, this has been a turbulent quarter. what investors care of facebook livers the numbers on daily active users and monthly active users? david: they want to see usage growing healthily in the developed countries like the united states where the profits are found. i think of facebook shows really good, surprising user growth, wall street will love it. i think a lot of the other data

is going to be hard to make look good although i'm not sure we will see good user growth. joe: paul, if facebook once cut , for they- wants turn up the cash? >> i think they can but i don't think they will. like a lot of other tech companies whether it is amazon or others, they are into the investment mode. what is a little different here in the second quarter from facebook was that they talked about slowing revenue growth just in the face of what would be higher spending tied to a data privacy and integrity in those types of things as a double when he. caroline: we are getting -- whammy. caroline: we are getting numbers. t-mobile comes in third quarter revenue $10.8 billion ahead of expectations. to gaming landscape once

keep a close eye on it because ea has been under pressure. scarlet: a pretty big drop off for ea. david kirkpatrick, it's interesting you say facebook, if they deliver on the numbers they investors will be pleased. will the broader audience be happy if the financial numbers come in well? this is a company that has committed to spending and making sure the content it puts on there is legitimate. if it is making a ton of money, does this not indicated is more concerned with financials than with making facebook a good company? david: totally. there's a little bit of schizophrenia with facebook because they have two extremely different communities to satisfied. theety is concerned about effect on politics, hate speech, all kinds of things that really are going badly in the society and, for facebook, on the other hand, wall street just wants to see the numbers look good. those two things will not get together.

facebook's stock dropped because profitability would declining growth rates declined. the expectations were that revenue would grow 34% this quarter but expenses could grow as much as 60% this quarter. the reason expenses are growing more than revenue is because facebook is pouring resources into trying to remediate the social harm it has caused. even so, i do not think that will satisfy society. scarlet: we just got the numbers. one dollar 76 versus one dollar versus one dollar $47 -- $1.47. daily active users is higher than expected -- excuse me. caroline: this lower. -- just lower. third-quarter revenue is 13.7 billion which is slightly shy.

ations have been pricing out 90 half percentage point moves -- 9.5 percentage point moves. joe: the huge bomb last quarter came on the call and it was not based on what was said in the press release. what we see here, we could be in for a long afternoon of watching facebook shares. scarlet: paul, wenzhou says the huge bomb came into the conference call, what did they say that got people rattled? we takeey said this data privacy seriously and might not be good for the near term fundamentals. that means we will clean up those accounts that are not good actors impacting their subscriber numbers and, they will increase their spending to monitor some of the content on the facebook platform. higher 10,000 new people for example, that cost is moderating revenue growth. isbe the slower pace anticipating and at the same time higher expenses which will

impact on profitability. caroline: third quarter ad revenue is going straightforward in terms of the mobile perspective. this company continues to see growth of the potential, is it instagram, and will we dive into those calls -- numbers on the call? david: facebook has a wonderfully hedged business because even if their core platform declines,, which it might be starting to do in the last quarter, they have instagram, whatsapp, and other have -- off which gigantic portions of her time. the company has enormous financial leverage to move over time. ultimately, i do not think they can solve their problems by spending money. will they have,

licensed operate from society in the broadest possible sense. scarlet: it is an existential crisis for facebook. on the third-quarter revenue, we say it meets analyst estimates, but it is a little shy of consensus. it's worth noting that even though this is a gain of over 30%, over the past month, one estimates.sed their estimates have come down. joe: they missed what was estimates that have come down. you can see market reaction is getting worse after-hours. down nearly 5%. it's funny to talk about the existential problems of the story and vice today about how easy it was for people to buy ads on facebook claiming they were from a senator. ad anduld buy an say it was from chuck schumer. david: they are making some progress, but not enough.

if you want to see a piece of journalism to raise your hair, it is the frontline documentary. the first of half aired last night in the second half is airing tonight. that facebook has been warned about many of these problems for years and years and deliberately, or seemingly deliberately, disregarded the warnings because it was pursuing growth at all costs. they are still in a position to make enormous amount of money which is the drug that continues to sedate them. ultimately, they will have to do something about these problems. they are not doing enough. caroline: the question is whether the advertisers want to keep spending with them. the daily active users are still improving. monthly active users are still growing. is that enough of a little work to make them want to spend more? paul: when you take a look at the forecast for digital advertising in the marketplace,

there is a 20% growth business over the next 20 years. it has become a duopoly. there are only two major platforms where advertisers can put their money to work at scale. one is facebook and one is google. amazon may become a third player as it builds its business. advertisers simply follow the audience. the audience is going more toward digital and onto these platforms. particularly for facebook, messenger, instagram, and investors want to hear how quickly you can monetize those business and to what extent it will be cannibalizing the facebook investment. know how facebook charges for advertising rates on instagram versus the main facebook by four -- facebook platform? is that readily available? paul: instagram is younger demo which could be much more attractive on a cost per thousand basis. a very goodin

position where they have a broad swath of the population that advertisers want to reach. younger demos on instagram and older demos on facebook. the advertisers, coca-cola, when they come with a big advertisement digitally, there are only a couple of places to spend that budget. there are a couple of places to clean up the environment and they must do that, but some of the tailwinds are at the backs of facebook and google. caroline: they continue to spend and higher. they have increased 45% more year on year. i want to get your take on mark zuckerberg's statement. they say we are building the best services for private messages and stories and there are huge opportunities ahead in video and commerce. video was what they kept on banging.

david: i think those are all real opportunities. advertising on facebook works. as a result, advertisers still want to be there. if i were looking at the macro picture, if i were an investor who believes facebook can get a handle on the fake news propaganda, political manipulation questions, this is a screaming by at this price because facebook's profits could go high down the road. however, i don't think it is certain they can get a handle on it. the contrarian view would be that if they did not get a handle on it, particularly national and global park brands, advertisers might shy away from a platform that began to feel a little toxic. maybe instagram would be insulated from that, but the latest report is that instagram is also getting manipulated with fake news and political propaganda that is unhealthy for society. at the moment, it has been immune.

this company could go very radically in the other direction from where it is now. i think that is an unusual situation for them. scarlet: right now the stock is moving south as facebook misses the sales estimates and other of those monthly active users and daily active users as well. we see declines in shares of apple which will be reported tomorrow and netflix as well. paul sweeney,ick, you are sticking with us as we look through facebook's numbers. in the meantime, we have other earnings to come out as well. electronic arts and t-mobile. you can see here some of the reaction in after-hours trading. amgen is higher as well. that does it for the closing bell and for me. next we will dive deeper into the facebook earnings as the revenue numbers missed analyst estimates. we will look ahead to the earnings call as well. this is bloomberg markets the close. ♪

caroline: facebook and others reported earnings. here is the after-hours move. in particular, i look at facebook down by 8/10 of 1%. we managed to climb out of the lows, but this was a stock up on the day about two percentage points. they come in line with revenue and monthly active users. earnings-per-share was a beat. the call starts at 5 p.m. new york time. ba is not looking good in terms of the 2019 forecast. up.bile beatson amgen is joe: still with us is david kirkpatrick and paul sweeney. paul, let me start with you. a time toou have

digest the numbers, we are still waiting on the call for more, what is your take away? paul: the business is stare storm -- is very strong. investors are breathing a sigh of relief. no negative surprises. it does not change the fact that the story has changed. the topline growth is little less on the margin than investors have been discounting prior to last quarter. expense growth is a probably a little higher -- is probably a little higher. i think on the call we looking for if they can give reassurance to investors that the as are having the proper reflect -- proper affect on the platform and not alienating advertisers. that is a tough line to walk. joe: looking at the after-hours action up 1%. not surprisingly a volatile day -- or afternoon already. should we completely erase everything we have said in the first block and talk about how

everything is going great? david: you are a slave to the market. [laughter] faults, and of its this would apply five minutes ago, it is just a money machine. david: it is the all-time greatest money machine of any company of its eyes in history. margins are still high, higher than any of the company we can think of. it is hard to factor his future the way we thought we could even as recently as a year ago. i think that is a significant difference that really does give justification for more risk price into the stock. as i said before, if you are confident this management team and get a grip on it, the company's profits have enormous opportunity for the future. they are still growing into these markets where the economies are growing, and even though they may be somewhat saturated in europe and the

united states, canada, countries like that, they are trying to become a global company. they only have 2.2 5 billion users. caroline: daily active users to download to again and gdpr is the newer strain on data privileges. u.s. had a tiny bit of growth. million -- 241 million users to 242 million users. zuckerberg and sheryl sandberg didn't really talk to the company or talk to those outside of the company quick enough. we started to get concerns about privacy. quarter, we saw the had another concern in terms of hacking in the system. do we think the leadership has learned enough? david: not enough. i'm disappointed in the leadership of facebook. in theirpointed

unwillingness to engage in public and critics on these issues. they won't come out and talk about it anywhere. i do not think they have shown they really have the ideas they need and the advice they need, and innovation they need to address some of the very serious problems that their services are engendering. i talked to a senior business person today who said -- and i had never heard this phrase before, social media has failed. this is somebody who is a major executive in a global company who is in this business and feels social media has failed. nobody has been willing to talk like that before. it probably is a little premature, but it is the kind of thing we may have to start asking ourselves. caroline: because it is so polarized? david: because the way allow society to get fragmented in so many ways that we are seeing reflecting day out

society even though it has wonderful community building capabilities. joe: i want to point out one stab that is interesting. facebook came out with its earnings slide. north american monthly active users up in q2 to q3. that is not much but it is not shrinking either. i wonder if we see some of this aftermarket reaction where the stock turns green whether there is some relief that in the most ,aluable market for the company flat or tiny growth is better than deterioration and usage. maybe one factor giving relief to the bulls here. canada -- we. and will have to see. joe: it's not great. caroline: but you are right. joe: it's nothing like field days. caroline: we will continue to

digest and more importantly is the call at 5:00 p.m. new york time. thanks to paul sweeney and david kirkpatrick will be sticking with us. from new york, this is bloomberg. ♪

caroline: we're looking at facebook because this is the company up 9/10 of a percent after hours. the numbers came in in line with expectations. we are still seeing costs. in the quarter, cost rose 90% in capital investment. the operating margin coming in the lowest since q1 2017. joe, you were talking about the stagnation in the united states,

however there is some growth of users. joe: that is the key -- a key thing that at least it is not shrinking. all the concerns about privacy and fake news and how facebook drives everyone crazy by being on it, it is easy to imagine a world in which usage goes into a decline. it is down a little bit in europe, but that may be new to gdpr type stuff. the bottom not falling out on the youtube side, may be a factor in why the stock is up 1%. caroline: more important is the call we get a tabcorp p.m.. athave sarah frier in -- 5:00 p.m. we have sarah frier here to talk. >> the numbers are not too great but they are more than what people thought they would be.

when the was a massive slowdown, people fear the worst, and it is not anything super alarming. the shares fell a little bit before recovering a little bit. analysts are waiting for the comments in the call. this is good that they are not shrinking. david: just an interesting number i'm pulling out of the slide, advertising revenue in what they call the rest of world north americac to or europe, declined quarter over quarter. that is not good and is not what fourth second or third quarters in the past. if they are not growing, it probably means economic downturn in developing countries is hitting them. that is where their long-term future lies is in the rest of world because some of these countries just entering the global economy.

joe: what is your take away on usage, sarah? sarah: i think the company still has a lot of levers it can pull to bring people into facebook. they are sending out your medic notifications to get people to come check the app. they are getting people invested in things like live video and facebook watch and using instagram as a tool to get people to check facebook. there are still ways to squeeze more information out of the user base -- attention out of the user base. the question is where do they go from here. do they think these can continue and are they going to be able to monetize some of the places users are turning their attention to. 2ey now said there are billion users who use at least one facebook product heavy -- everyday. caroline: a phenomenal fact you cannot take away from this company. thank you to david kirkpatrick and sarah frier from breaking down the numbers. coming up, we stay with technology. --britain's plan service tax

planned service tax the right move? this is bloomberg. ♪ ? this is bloomberg. ♪

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150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need mark: i'm mark crumpton with bloomberg's first word news. a boston gangster has died in federal custody nearly five years after sentenced to spend the rest of his life in prison. prison officials say he died today in west virginia. he was 89. mob in therge irish boston area. he also served as an fbi informant who read it on the gang's main rival. the pentagon is a pulling troops to the southwest border. aboutomes as trump warns

migrants attempting to get to the united states. the caravans are hundreds of miles from the border of mexico. earlier today, jeh johnson was on bloomberg television. we have deployed our reserves to the southern border, but because of the law against what we refer to as a posse, titus -- possicomatitus, the military can help in supporting roles. mark: in an interview with actio, president trump declared he wanted to end the constitutional right to citizenship for babies born in the u.s. to noncitizens. says heecretary-general is confident the western military alliance and russia "

will act in a respectable way" as the two sides hold drills in the same area off of waters of norway's coast. he made the comments as he attended the wargames in his native norway. he added "this is not a cold war situation." the core of nato is to show we have the capabilities. this is about preventing the conflict. [indiscernible] the best way to preserve the peace is credible to terrance. -- credible deterrence. mark: there could be increased too activities and the plans test missiles in international waters close to where the alliance is conducting those military drills. 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. powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. caroline: more earnings, coming from china this time. baidu third-quarter numbers beating in terms of adjusted profit per. -- $2.77.s 77 fourth-quarter revenue estimates are a bit china the forecast. this is a company beating on the third-quarter but the fourth quarter lookahead is not looking pretty. joe: to point out how bad u.s. tech companies have done, the chinese ones have done worse. baidu off 35% since the high-end may. caroline: a 5% after hours is not much. joe: and they make the u.s. companies pretty nice right now. caroline: we will stick with the

technology discussion and we go even more global to britain. the british government is withng to tax tech titans annual revenues of at least 500 million pounds. that will take effect in april 2020. ae next guest says it's it is -- says it's a prudent step at the wrong one. our guest joins us now. talk to us about this new tax pushing its way. why do you think it is prudent? >> i think a digital tax is prudent if we take the revenues from that and reinvest that money into digital skills training, digital education the does are seeing great drop growth on the horizon -- job growth on the horizon and we want the workforce equipped for the future. in that regard, it is a prudent step. all we don't agree with is the u.k. going out on its own,

creating its own policy when it should be working in orlaboration with the oecd that you to have a more consistent approach across many markets. joe: it will always be hard to really coordinate taxes across multiple countries, but would you expect now to see more countries follow on the u.k. and say this is a huge pot of money and the tech companies will not go away if we take a fee from them every year and they want to raise revenue? are: in fact i think there already countries that have made similar noises like germany, france, and others. they are looking at evaluating something similar. the view is let's not do this on a country by country basis. many of these countries say we need to have some type of digital tax or see these companies pay their fair share, and let's reinvest those taxes into education and training. if countries go out and do this

on a limb and do it one by one, many of the larger tech companies will say wait a minute, we are trying to have a , butand equitable approach if we going to britain and they have their own tax policy, why should i invest more of my business into the country. why should i be hiring more talent from the country if they are going out creating their own unique tax policy. many of these are u.s. businesses. we want to make sure that as they look at this, the u.s. does not retaliate in some way. we need to do this. easyur point, it is not an thing to do, but there are tax treaties where there is reciprocity. we are saying let's do this across many markets and not do this in isolation. britain has its own issues with brexit on the horizon. this could come how that. caroline: what has the reaction been like in the u.k. from the voters? we know this has been low hanging fruit from a political

potshot point of view because tech has been out of favor. the big tech companies have not been that loved by politicians in particular. russ: i think in general, people are supportive. many in the tech community are supportive of digital tax. revenues can be redeployed into training and education, that is a win-win for the economy. where people are concerned, in the tech sector, many of the giants have played an active system overding the the years. and we start to move in isolation, will these companies invest resources and employ more people across the country in the sector? that is where i think people are saying wait a minute, this is probably not the right way to go. if britain is part of the court needed effort across the oecd,

everybody is playing on an equitable landscape and britain does not stand out. if the likes of facebook and others start to withdraw and say britain is not friendly for us, investe want to as much, that will have an overall effect on the ecosystem. caroline: and when london is fighting for its tech supremacy. coming up, ea is not playing games. more on the earnings miss ahead. this is bloomberg. ♪ ♪

joe: ea earnings missed estimates sending shares lower

after hours. let's bring in matthew cantor men -- cantorman. was it about ea results that investors are not liking? >> they took down guidance again and the already did in august. some of their games are not meeting expectations. battlefield five, it raises a lot of red flags around there live services. that is their high-margin recurrence the avenue. joe: are they a different model than some of the others or is it just flavor of the month people are not into it? matthew: a little bit of both. repetitionrious for and recurring natures of those games. like takee developers to spend a lot of time and effort making these blockbusters. get into take two, want to get into these shares. they have eroded their value by 40% highs.

you don't think that getting any better anytime soon. what do they need to do about their leadership? matthew: we need to hear about the live service growth trajectory. accelerate, it looks better going forward. joe: let's turn the page on take to. in my wasting -- take two. mi wasting my life that i'm not played red dead redemption? it?ld i go out and get matthew: yes. it is the fifth highest videogame ever over medic riddick. caroline: and that is the course of one weekend. matthew: it's the largest opening weekend for any entertainment product ever beating avenges infinity war. rockstar, the label that me this game, they are in the torilla's

for these massive open world experiences that are pushing the limits of graphics integrity. this is just the latest and greatest. it is no -- by no means red dead on arrival. caroline: is every market they run into by u.s. standards. matthew: this game is counsel means it is western europe and north america and a little latin america. there is no consul business in china. this game probably will not play well in china. too pilot and gory and they have restrictions on that content. in general, you see a crackdown on certain content and gaming in china are you have the freeze on approval hitting everyone. western developers are mostly insulated from that. you see tencent take it on the chin because of that. istern developers exposure less than 5% of revenue. joe: those clips to look good,

will you invite me over to play it? matthew: absolutely. joe: i'm excited. caroline: we were looking at twitch where you can watch other gamers game and these are companies that could ride on the coattails of these big launches. matthew: the other thing we have noticed is the increasing socialization of videogames. inh more social content bedded into twitch and more online modes to play together. that is benefiting gaming headset sales. turtle beach is up 1000% year to date. their sales are flying. joe: great stuff. thanks to matthew kanterman on the breakdown of videogames. one week to go until the midterm elections which are next tuesday. president trump is busy campaigning in red states he carried in 2016 as well as more unexpected places as well. let's bring in the cross acid reporter, -- sarah and sahil

kapur. start with you. what did he tweet about the markets. sarah: this is not something new. president trump likes talking about the stock market and takes to twitter. since the election, if you look at how many times you tweeted, about the stock market, it is about more than 30 times. if you put it on the chart, they would not fit. a lot talk about all-time highs. you would imagine months like october when we were higher, those are the times were we saw him tweed a lot. i really like the animated version we have here. i don't know if we have this last one. he would like the fed to do a little pause there. himline: today, we hear talk about fox news.

it seems to be fed bashing that is the main tweed storm at the moment. sarah: absolutely. we are seeing this over the last couple weeks several times. this was very outright and it was the first time he tied it to the midterms, particularly it seems. it seems he's trying to find a scapegoat. midtermsing up to the and the fact that people are unsure and maybe democrats will take over the house and that is the reason why we see market selloff. joe: i want to bring in side hill and talk about the more conventional aspect of the ahil and talk about the more conventional aspect of the campaign. are these the stories people are talking about at the congressional level debates or are they focused on other issues? about if you are talking immigration, that is absolutely

what many candidates are talking about and many voters are thinking about in the final stretch, especially on the republican side. this is probably the single biggest issue as part of the closing argument for republican candidates more than the economy because the president knows that is the issue that mobilizes his base more than any other. it worked for him in 2016 elections. for the democrats, it is different. they have a different view about the caravan and recent comments by the president calling to an end to birthright citizenship is a distraction. they want to talk about health care. they want to keep republicans in charge -- and keeping republicans in charge would threaten that area. caroline: will it help with turnout do you think, what trump is doing. he seems to change up where he is going to go and hit the road. >> this is a million-dollar question.

mobilizeident trump republicans or democrats more? the answer is that it mobilize republicans more. of presidentct trump in the white house seems to be more energizing to democrats than the theory of him being in the white house. his campaign schedule is a strategic one and clever. he's focusing on the states and parts of the country and races where he can have the biggest impact, west virginia, indiana, missouri. close senate races in states he won by big margins and where he can be an asset to republican candidates. there are a couple of governors races he is getting involved in like ohio and florida where he can be an asset by mobilizing the republican base. he stays away from the house battleground races which are in affluent suburbs where he is a net liability. joe: with one week ago, does the

number of competitive house seats or the number of opportunities for democrats to pick up how seats feel like it is shrinking or expanding? sahil: probably neither. there are several dozen races on a knife edge within two or three points in the polls. those are the races to determine which party controls the house. democrats are probably in a better position. the consensus is that you would rather be democrats than republicans in the house because the battlegrounds there are affluent suburbs, lots of college educated voters and women in particular. that is the democrat -- demographic. we have seen a particular. the senate map is different. redill be fought in rural states that president trump one by big margins. i think he's in a good position to help these candidates in his party when the states. caroline: let's tie this back to the markets.

people are you speaking to saying i am staying on the sidelines until the midterms are over? is this a catalyst for future moves? sarah: not so much. if i ask investors to rank the risks as they see them now, that can be back and forth between the rising rate environment and trade. they may talk about earnings in the profit outlook and what is happening next year and i have to ask them, where do the midterms make it on your list? they are not thinking of it too much. a lot are saying we might get a trade deal after the midterm elections, and a lot of people are saying it is positive because typically, after midterm elections, you see a run-up at the end of the year. maybe a positive thing because of history in the way the markets work. not so much a huge risk. sarah in new york and sahil kapur in washington, great analysis from you both.

a check on business flash headlines. ubisoft is weighing its options to compete with larger rivals. a firm oversees more than $2 trillion. is aimed atulus preventing the economy from slowing further while they support rolled material demand. the sea over the tinto -- >> lots of talks about her divorce, but if you look on the what weif you look at have in terms of aluminum and iron or and copper, they are full. the chinese machine is working well. caroline: rio tinto takes and

40% of its revenue from china. that is your business flash update. coming up, we stay on china. can china support its economy during the trade war without resorting to major spending? this is bloomberg. ♪

caroline: it is time for asia and ahead. china is trying to avoid stimulus spending during the trade war but with the u.s. considering putting tariffs on all chinese imports, the situation might be too dire to handle on their own. what is the deal here? we already hear about them talking about helping autos and the like. what can they put into play? shery: they have put in measures but they have all been targeted. not like 2008 or 2015. it is not that approach anymore, it is more targeted.

we talk about fiscal measures to stimulate consumption so tariff cuts, and poor cuts, tax cuts. we all see stimulating exports and giving them rebates given the trade tensions. monetary policy as well, not in more targeted measures. joe: are they going to have to capitulate eventually? shery: that is a big question, but analysts are saying they did they do have more firepower given the size of the economy and the fact that this is the chinese government. right now, they need to put something forward because as bloomberg economics estimates, we have 10% tariffs on $200 billion of chinese imports and a 25% tariffs on $50 billion worth of chinese imports into the u.s.. that is cutting their gdp by half a percentage point.

we have this nice graph that we made that shows all of this affect when it comes to gdp growth in china. take a look at that. we are in the second one. president trump has threatened to take the tariffs to 25% starting january 1. on all do go all the way chinese tariffs an extra $267 billion, that would be a drag on the economy of 1.5 percentage points which would send the chinese gdp growth to 5%. joe: that's a great-aunt. caroline: jamie dimon -- a great chart. dimon spoke and said the us and china is getting close to the trade war if they are not already. ,o not miss more of her stories "bloomberg daybreak: australia" and aberg asia -- and "bloomberg daybreak: asia". bank of japan's monetary policy is expected overnight. the and i will be watching jobs report at 8:15 a.m..

caroline: that is it for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪

>> i'm selina wang in for emily chang. this is bloomberg technology. in the next hour, facebook user growth is its lowest since 2011. we dive into the third quarter results. plus, apple's big hardware overhaul. a revamped their macbook and ipad for the first time in years but i