>> i'm mark cromple on the with bloomberg's first news. president trump sowlingt to clarify reports that he believes u.s. troops on the border could use lethal force. a caravan has been traveling through central america attempting to reach the united states. today the president told reporters the military won't shoot the migrants, a reversal from yesterday. president trump: what they did to the mexican military is a disgrace. they hit them with rocks. some were very seriously injured and they were throwing rocks in

their face. they do that with us, they're going to be arrested, they're -- there's going to be problems. i didn't say shoot. but they do that with us, they're going to be arrested for a long time. mark: retired military leaders criticized the president saying the directive would amount to an -- order and that soldiers shouldn't obey it. e man accused of sending pop pitch bombs to critics of jailed and ump is it's recommended he stay jailed until trial. his fiance is asking for president trump's help in remains. he saudi's

he said without his body, his loved ones have been unable to hold funeral prays for khashoggi. the united states was urged to lift its block cailed of cuba. putin president and cuban president met in moscow what they called "the united states' interference in sovereign affairs." the cuban president invited putin to visit cuba next year. bloomberg, powered by more than 7 -- 127 journalists and analysts in more than 120 countries. this is bloomberg. ts is bloombe.

>> from bloomberg headquarters in new york, this is "bloomberg markets" the close, i'm scarlet. >> and i'm caroline. technologies following, of course. apple causing a stir after missing expectations. markets getting quite fed up in terms of the emerging markets. the biggest four-day gain back to december 2011. the euro is lower because the effort b.c. could be considering stimulus? that's also in a report not from bloomberg yet performed and also, the best performing mark on the emerging markets as the u.s. lifts sanctions on turkey. >> quite the contrast because in the u.s. a pretty blood decline with 10 of the 11 groups in the s&p 500 lower. only discretionary is higher.

including the 30-year. they touched 3.4 %. that is a high for 2018. what's interesting is what's going on with the china trailed skigs discussions. -- trade discussions. and it's been all over the place. the latest is managing expectations but president trump saying he thinks a deal will get done. caroline: so up go stocks once again. scarlet: and apple, concern that they've stalled out. caroline: time for big movers. s -- citi upgrading wells fargo. the stock's valuation seems reasonablele with a clear past to better returns. >> cutting the price target to $47 a share from $59. the analyst says downward

visible revisions. a number of held winds, including weaker sales in the emerging markets and those are some of your top calls. scarlet: payrolls rose $250,000 for the month, topping median estimates of $200,000. bloomberg spoke with a guest about the numbers. >> solid numbers that point to higher growth and you see this in the labor parpgse market going up. second, this will make the fed talks even more interesting with the question of how much slack there is still in the labor market. and finally is this going to

make it more volatile? so great for the economy. complicates fed policy discussions, mean nag markets will remain volatile, up and down. scarlet: let's bring in u.s. bloomberg's senior analyst. setting aside the by storgs effect from last year's hurricanes and this year's hurricanes. .1% growth. is this normal? >> i don't think so. i think it's a little bit of a statistical aberration and the numbers for objects 2017 were distorted by last year's hurricanes and this was a negative number month over month. so it was minus 0.2% so that's why the year over year growth is sowing so strong in today's numbers so we think it's going to fall but nonetheless wages

are growing. they're growing but less rapidly than today's number would show. caroline: you've had a contrarian call on where the fed growls. you think they'll potentially pull back. if you revised those views looking at these numbers? >> so our call is actually based more on what financial markets would do and not on economic fundamentals so economic fundamentals will start doing really well. you saw that in the latest g.d.p. print and in today payroll report. it's all about the markets and what is going to happen, say, next week. a big reaction to the midterm reactions or is it -- elections or is it going to be a big surprise? we don't know and the fed doesn't either. there's also watching what is oing to happen and next week c e going to have an f-1

meeting and we won't know and they won't even. they can even postpone until later in the month. scarlet: going back to the jobs report. the unemployment rate stayed unchanged at 3.% but for good reason because the labor participation growth. increased. e haven't seen it grow above 3.7% and build on that. why is that? >> it's a lot of noise and different things -- things going on. -- of par piss pace rate is participation rate is getting lower. but if you look at the prime age, if you dig deeper into the details of the report. women's participation rate for

the prime age women ini creased even stronger today and the gap between female and male participation rates is continuing to close so that's a positive development in terms of so on. equality and caroline: why? you nk wage high enough to have set childcare costs? and men aren't doing so well. >> it could be a combination of factors. it could be that men were hurt more in the aftermath of the great resection. the construction sector was hurt a lot and basically maybe economic growth, the overwhelm strength of the economy is -- and now women are coming back into the labor force because they see greater prospect. care kline -- caroline: we thank you very much indeed.

coming up, jack maher and co-host have plenty to be happy butt for alibaba's earnings not so optimistic about global trade. coming up. this is bloomberg. ♪ ♪

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scarlet: one of our top tech stories, alibaba beating estimates of second quarter performance, however, toning down expectations for the year with a trade war in mind. let's bring in host of bloomberg technology, emily, from san francisco. should we be worried that the rowth might be a measly 53%? emily: 53% growth is still fairly incredible growth. it's nottable that they've lowered it slightly but they're

attributing it global mack wrong uncertainty, not directly tied to the trade war but not economy overall. this is a company still fairly well diversified offline and on line. and they're not really hitched to the global economy because there are so diversified. these superstores are a microcosm of where commerce is going and 65 -- 60% of commerce is online. essentially grocery stores. you're seeing a chinese consumer einvolving and all to the benefit of alibaba. scarlet: at the same time, people are going to exram late what they want or what they fear. what does this indicate about the shopping festival that alibaba basically invented? emily: i interviewed the executive vice chair and we

talked about singles day, very optimistic about it, as always. as you mentioned, it's a very good litmus test of the chinese consumer. the talk is always about the potential. like there are only 300 million consumers buying online in china today. that could go up to 800 million so the potential is huge. they don't have as much debt as american consumers so as the chinese economy, the weak continues to grow, alibaba continues to benefit from that. we did talk about the trade war and jack ma has promised donald trump that the company would be completing a million jobs in the united states. there was skepticism about how alibaba would create those and if that was a realistic number and then jack rescinded that as a result of the trade war. i asked joe what he thought

about that. take a listen to what he been. >> it's a good thing that the two presidents are sitting down and they're about to talk and we hope some good things will come out of that and the torrential will get reduced. emily: of course, as you've been discussing, an actual trade deal so so far off, even if those discussions are going well. joe tsai did tell me if the trade were were end, they would make good on that original promise to create sose so -- nose jobs. scarlet: thank you, emily. if you look at how things have shaken out, first weekly gain since september and it's a global advance as well. treasury fell every day this week. on the longer dated curve and utilities were the only group

among 11 to fall this week. caroline: from new york, this is bloomberg. ♪ show me movies a grinch would love.

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aroline: this is bloomberg markets: the close. i'm caroline. scarlet: and i'm scarlet. caroline: you're the bond girl. scarlet: that's right, i'm looking at bonds today and we're going back to that narrative of where's the haven? this is going to be the ongoing question and how do investors respond? >> and gold is pretty much flat.

what used to be a stock you could rely on to not be too volatile was apple and it's the third worst performer in the s&p today. scarlet: i'm impressed that you caught on the bond girl. >> come on, i'm going to pull out some gadget and start spying? scarlet: let's talk about the industry group performances. starting with the best performers. consumer services, item come. entertainment. these are gaining. everything else fairly tepid. look at that. semiconductor stocks, apple and its supply chain a drag on the market. food, beverage and tobacco and real estate, rates are rising. >> it's been a relatively volatile day. we started in the green. there were hopes about the china-u.s. deal and down we

plummetted. no optimism and then trump. scarlet: who is trading on those other things contributing each other? caroline: computers. scarlet: are they doing well on this? making money? >> this is a good question. scarlet: we're moments away from the close. let's start deeper into today's equity action. >> let's start with kraft-hines. down about 10%. its worst day since the company was formed. it was a mashup of those two companies let -- led by warren buff effort. putting them together this company was known as being aggressive cost cutters. hey kind of ran into that this quarter because rising trucking shorts. investors still aren't convinced that this company can actually grow based on anything other

than cutting dosts ask acquisitions. if the cost part is falling, then acquisitions is where you have to go but their leverage ratio continues to rise, that's their dealt. and as that rises and their equity value falls they don't have the leverage to make a deal like they would have say, a year or two years ago. so the concern is that if they don't have that ability, where does this company grow? and this is the issue for the entire packaged food sector and they're way down. the s&p food company index down about 3%, i want worse day since october 2016. a lot of those plaguing general mills, campbell. not the type of premium that had been built into these stocks and now some investors are starting to worry that the window of opportunity financially speaking

may be closing. lisa: maybe some of those m.m.a. transactions need a jolt of caffeine. starbucks shares, the biggest one-day gain since 2009. 10:5% game. why? they reported better than expected earnings. it shows that they were gaining consumer mproving the experience for people like my son who spends way too much money because he has the app. the consumer discretionary index higher today. one of the few that appears to be heading into the close in the green. something to keep an eye on here as people are buying more and drinking a lot of coffee that happens to be rather expensive. abigail: apple on pace for its worst day since juan -- the january of 2014. they beat out estimates for the fourth quarter but the

disappointing guides for the holiday quarter weighing on shares but that's not all. let's use the financial analysis nction s.a. and this is q-2, .-3, and q-4 of fiscal year 40% year of -- over year. that's extraordinary, very big numbers. in orange, 11% growth. this is the first quarter, the december quarter we're looking at. yesterday earnings were still growing in the right direction but make taking a nose drive off single-digit growth. apple does this everyone now and then. in felt mar jinls went in the wrong direction so they really seem to have a book and bust cycle. let's look at the latest boom cycle by hoping into the bloomberg again and look at a chart we looked at yesterday at this time.

this is from june of 2016, spring of 2016. the buyers in control, taking the shares of apple up. every now and then, congestion around the 50-day moving average. apple below that, suggesting we will see apple likely drop not just below 00 but maybe even lower if the numbers continues to go in the wrong direction, caroline. caroline: great breakdown. apple has falled from that -- fallen from that trillion-dollar heyday mark, taking a toll on the entire tech sector. let's bring in bloomberg markets: live mike regan. how much do you think we'll look back in a couple of months and think wow, $1 trillion companies, what were they? >> it's looking like it's a bit of a reassistance. i think apple is endemic of a

lot of what we've seen in the tech earnings. . caterpillar was out earlier in the year saying this earnings growth is as good as it gets. i think these companies are sort of that to an extreme. these were the growth stocks, and now apple like so many of the other companies reported before it are signaling you can't count on that growth forever. whether it be just they've matured, become megacap companies that can't grow at the clip they used to or rising interest rates playing a role. people worried about now fixed income offering a steeper competition and higher borrowing costs prosecutor companies. this is a pretty nasty tech stock. it feels like it's not going to be a simple v-shaped recoveries like we've seen the last couple

of years. scarlet: let's bring in jason brady, thornberg investment management c.e.o. has this growth in stocks peaked and if so, where does that leave valuations? >> when we're looking at the province of those countries, if you think about al, their profit has grown over the last few years but really what's happened is p.e. expansion. i think that's where we might be vulnerable. these long-duration assets, tech companies, with the long-term value, gosh, maybe the price comes down a little bit. scarlet: so you're not buying any of these dips? >> the dips that are interesting are not in the u.s. , you look elsewhere, alibaba for instance, that's a great

business model. and we've seen a much more significant correction so we're looking all over the world. caroline: mike, how much have the con yankee -- ongrowing trailed -- trade concerns factored in? >> it's been up and down all day and gives you a preview what would happen if there is an or misist in the trade tensions. -- or mis'tis in the trade tensions. people are waiting to see. scarlet: people or machines? really? >> well, people program the machines. scarlet: good answer. >> i trust the people to some degree. scarlet: is there anyone trading on trade headlines? do you trade or invest on trade headlines? >> i agree, it's the people behind the machines and frankly, it's the people behind the people. where are investors putting

their money to work? people might be trading on these headlines but that's not our style. we are much longer term than that. caroline: that we go with the close. we started the day in the green but now we're clearly in the recommend. scarlet: and a pretty blood decline with 10 of the 11 groups in the s&p 500 in the red. the nasdaq the worst performer there but for the week, the nasdaq has been the best performer. the end of a three-day advance but it could have been worse if president trump didn't talk about optimism of trade deals with china. >> who is doing the trading and how do you know what it's safe to get in and at what valuation points? it's a really interesting time right now. caroline: and where is the safety when you have market selloffs such as this?

it used to be a significant setoff. now it's just another day in the markets. but now we're seeing a significant selloff in bonds. >> that's right. the 30-year yield, for example, at the highest point since 2004. is this inflationary expectations? no, we were talking about how you're not seeing tips taken or money. not that sort of implied inflation over the long term. this is fear, a feeling that you're not going to be company stated -- compensated going forward. caroline: what are you watching? >> on the day we have these declines but on the week we've had a bit of a rebound rally off of october's big monthly decliges. here are the monthly averages. the dow, the sepp and stocks all higher. each of the averages on pace earlier in the week since february. now for dow, it's closer to september.

same thing is true for the nasdaq. the semi500, the stocks, up 7.5%. that is sepp's best week since 2012. again, is this something you want to buy a or a head fake? let's look at a weekly chart of the s&p 500. in 2016 and 2007 we had corrective action. a beautiful uptrend. the byears very much in control marked by that blue line. this year some volatility earlier this year as rates were rising, causing buyers, giving them pause then taking back over for most of the spring and summer. then in october, rising rates again from the fed. and we have this bear irk activity. a bearish area of congestion breaking that uptrend, suggesting wither likely to see the s&p 500 back down towards this year's lows. we could see it drop back to

levels seen in 2007. time will tell but this tells us that the sellers are getting ready to pouges. >> that's the big question but when you look at the fundamentals there was a reason to guy buy and there were quite a few stocks out there that posted some of the biggest weekly gains we've seen in quite some time. biggest gainers this week, names like under armor. if you look who's at the top, work day, micron. all of those were also in the earnings category posting either bullish earn ogs or forecasts. dow-dupont. caterpillar, nike all rising dramatically over the past five day. a few decliners this past week. g.e., kraft-hines. over the past five days when you look at what this factor has

done, particularly in the s&p 500, you had about 40 stocks in the s&p 500 that rose 10% or more this week and more than half of the index post the -- posted gains of at least 3% or more so this was a pretty blood broad-based rally on a weekly basis but as abigail pointed out, how much of this is going to carry over into next week? lisa: a vast majority who are looking for the haven trade are finding it in short-term dealt. two of the biggest e.t.f.'s that have benefited this year. the white line is shares of e.t.f. targeting ponds bonds that mature in less than one year. it's almost doubled its assets this year. the blue line is floating rate securities. that has also nearly doubled its

assets to $12 billion as people say we're not investigating for very long term and we're generating real cash. this is the rate that people are charging to legend out dollars for three months. it has kline told nearly 2.6%, a new post-crisis high. really interesting but cash seems to be the place to go for safety. scarlet: lisa and the entire market scene thank you so much. of co-tom -- come, jason thornberg. jason, lisa talking about short-term debt getting a lot of love. what's your estimation? >> i think what we saw today from the jobs report is that we have a pretty strong economy. continue to have a strong economy. in fact there's a little bit of infrustrationry pressure. so we saw it in the bond market.

the belly of the curve traditionally the most sense tv to the fed where that's starting to creep up. so we haven't seen inflation come out in prices that much. the fed is in play. they are in the race. as we see those rates continue to rise, one, from a risk perspective you say maybe i don't need to be in this high-i.p. stock and that starts to be a drag on growth. kevin: earlier we had a guest talking about how options aren't reflecting any wild-scale concern. this is a stock-specific selloff. not whole kale ca pitlation. do you agree and what has catalyzed this volatility in the market we see from day-to-day? >> first of all, we're worried about a hard lining here but the reality is, it's just a little

bit of disturb lens and they're still serving drinks in the aisle. we're ok there that perspective. not real volatility. but it's stock selling off and as you guys have noted, it's specific stocks. there seems to be a rotation happening. certain sectors are interesting, even those that are valuable as rates rise. we've been investing in financials and has been pretty successful trade because they're benefiting from rates rising. it's volatility we're going to have to handle and a return to a more normal market environment. >> you're talking about ow gher yields are going to impact. golden sacks said that mutual und pensions and -- were net sellers of stocks. s this sort of consensus or an

anomaly? >> that's a good question. jason makes some excellent points, though, and you did too about this competition from cash now in the short-term treasureries and you look at data today and the market year to date this p.-35 market is higher year to date. age growth of 3.1%, that's the fastest in nine years. the jobs growth by 5,000. the s&p higher for the year. unless the fed is really intimidated by the president of the united states, there's really not a lot for them there to sort of back off the rate hikes. looking at the interest rate probability on the terminal, 76% chance still of a hike in december. >> up from 71% yesterday. >> yeah, so the case for being

long stocks is not super compelling right now. obviously if you're a long-term mutual holder like in jason's funds, you probably want to ignore all this but if you're sitting on cash and have the discretion to buy or sell. there's not a lot of compelling reasons to buy, i don't think. scarlet: you said you've been waiting for rising rates. what's the one idea you're waiting to execute and you haven't found the right entry point yet? >> so i think the trade we've been thinking about and executing now. we've been investing front end particularly in higher quality bond funds. floating rate notes that are investment grade. e think the credit is past its beef. it's a self-correcting mechanism so the fed raise rates to the point where things tart to slow.

whether that is 3% or higher, you're going to want to be out of that short-term cash into a longer term investment. that's what we're looking at. when do we execute that trade in more instant size? scarlet: jason, thank you some and of course mike regen. that does it for the closeing bell and for me. we'll look at how president trump is taking some inspiration . om "game of thrones" this is bloomberg. ♪ ♪

>> i'm caroline. >> and i'm lisa. in for joe. here's a look at how stocks closed, down for the day. >> what'd you miss? president trump says he thinks that the u.s. will reach a deal with china after his top economic trade downplayed progress on a trade agreement. that and a strong jobs report closing the 30--year treasury ields to a 30-year high. crude falling for a fifth day as u.s. sanctions on the purchase into nian oil go back

effect on monday. caroline: the china trade war could be nearing a true. president trump spoke with reporters as he left the white house earlier this afternoon. president trump: i think we'll make a deal with china. caroline: he's set to meet with chinese president next montgomery at the meeting in argentina but whether the question of trade is on the agenda remains a question. sean joins us from washington. there was a bloomberg scoop earlier in the day. stocks rallied higher and then larry kudlow pours cold water and then trump comes out with optimism. who do we believe? >> i think we believe them both. it's the sane of the tension in the white house. president trump wanted his

cabinet to lay out the outlines of a possible deal, something he could take to the meeting in argentina. that's the first time we've heard from within the white house of signs of a deal. larry kudlow has been playing out expectations that we get the grand bargain in buenos aires later this month. he's been cautious about not raising the expectation for buenos aires, at the same time it's clear that president trump wants to make a deal, as he said to reporters this afternoon. >> making a deal means they have to work through a lot of the issues that have been at the center of the stalemate. any indication that some of these issues are going to be resolved ? >> absolutely none and that's the important thing to keep in mind here. they're talking about some really stuff -- tough stuff including chinese industrial

policy. we've heard of the phrase made xi hina 25 -- 20 25, a plan has rolled out to lead the world in robotics. that's something the white house wants to see ended and no sign they're willing to do that. what we could see out of the g-20 and buenos aires is some kind of cease-fire, an agreement that we're going to stop escalating and start talking. >> thank you so much. this issue is not going away. meanwhile, president trump taking a page from george r.r. martin. tweeting a promo from u.s. sanctions on iranian emily: that will go in full effect next monday with a nod to the "game of thrones." hbo wasn't too pleased about the commander in chief appropriating their show. mike, i'd love to get your view on the idea here that we're getting some reprieve from all

iranian sank globally with inside to to other countries importing their emily:. basically trying to bring down price and trump being aware of in where are we held something >> when you put the pieces together, the big news today was the headlines in the news that that have been sanctions waivers. this was expected. this is not a surprise. what does it mean? does it mean that we're backing off on the sanctions? no. all it means is that for the various countries, most important once are south america, india, asia and japan. in exchange for them cutting something, not the full amount that the u.s. says they want to get to eventually, in exchange for cutting something, we won't put our sanctions on them. essentially it's a negotiating tactic and also recognizing the reality of the markets that it

takes time and some of these countries don't have a lot of other options so basically wait means is, in our view, we still think iranian flows are going to come down a lot. we think that from normal levels -- levels, what we saw in the first half of this year, we think iranian flows are going to come down by 1.7 million barrels a day. we're still halfway there so we're still going to lose in the next couple of months up to a million barrels a day. also, we have a lot more crude in other countries than opec. we have a lot more crude from the u.s. more crude from russia. so big picture, the markets are going to be balanced. we're not going to have a shortage but it's not going to feel sloppy, oversupplied the way it is right now. >> haven't we already seen a little bit of a drawdown in the lead-up this?

is there going to be much more of a shock once we get to monday or tuesday? >> real good question. when we get to 12:01 a.m. on monday, does anything majorically happen vs. sunday? no. this is a process that's been going on for months and will continues to go on for months. one of the reasons the market has felt ugly and oil prices have essentially come down, it's a weak season right now. crude demand is down because refineries around the world are in maintains plus -- maintenance, plus we're between the summer and the win. -- winter. in the next two months demand picks up. at the same time we're going to be losing up to a million barrels a day of iran. are we out of the woods yet? do prices continue to go down? sure, you don't catch the falling knife, right?

but i think the next significant leg in oil prices is higher. >> how many higher? >> could be significantly higher, could be 10 bucks. >> where is the level that you ink is the long-term equal librium between the producers on one side and trump on the other? >> we think brandt will be around 75 bucks and others in the high 60's. the period of maximum group prices driven by iran is in the next couple of months. we'll see it this winter. november, december, january. after that we start to relax unless the -- until the second half of the year when we worry about shipping regulations. >> is the potential they could provide waivers to countries going to affect things? >> i would take it seriously. again, the waivers are real but

all it means is, it's almost a negotiating tool. so if the u.s. wants to give a waiver to india, for example, we're saying your normal imports of iranian crude are 500 k.b.d. if you work your way down, to let's agree on 300, then we won't sanction you so we'll let you import part of it but not all of it. >> if prices do stay where we are, around $62 a barrel, do you see a lot bankrupty -- bankruptcies in the shell patch? >> no, if you're in the permian, your productions costs are still $40 a barrel or less. maybe a little bit higher in north dakota, some of the other recommendation ros but they can -- recommendations they can weather this, no problem. >> they've been showing some distress. i was wondering. >> global held of oil research

at society general. coming up, starbucks has a beg expansion plan oversea. all the details ahead. ♪.

>> strong sales in china and in the u.s. for starbucks. the world's largest coffee chain. their shares rising almost 10%, their best day since 2011. here is bloomberg news u.s. consumer reporter ann moffitt. what was the main thing that jumped out at you? >> they've hurn turned around in every region. they had been slumping in the u.s., and definitely had a surprise negative quarter in china over the summer and both

of those have turned around driven by new drinks and new food items they're bringing into stores. people used to eat and drink a lot of frappe chinos and aren't anymore and they're trying new things and they're working. >> because they saw the calorie count. i wonder if pre-ordering from boosted things too? >> i'm sure that's helped. they said something lining 14% of their sales are now digital r online pay, which is huge. caroline: how are they managing to reflect what's going on in china? just managing to grow faster than consumer demand over there? did they mention forecasts for that country? >> sure. china is a big part of their growth plan. they have about ,000 locations there right now and they're trying to double that to 6,000

by the end of fiscal 88, which is pretty fast. they're experimenting with delivery there, because that's how people want their coffee. although in the u.s. they're only doing a pilot and it's only in miami. >> when i heard kevin johns -- johnson talk about how fast they're able to get new products out. in the old days to get a new product out it took something like 18 months. now they're trying to speed things up. >> how is that possible? >> they had a pretty bloated management structure. they're slimming that down and now it can take as little as 100 days to go from the innovation line to the cafe. people want what they want and they put out a high-protein cold brew in summer and that's very on trend. a year ago that wouldn't have been on trend. >> what's in it? >> i think it's a pea protein

powder. i haven't had one myself yet. >> is starbucks more of a coffee company at this point or a food company? >> they're always going to be seen as a coach company but in the critical afternoon segment they're not getting people in for caffeine for the most part. that i so they're trying to be the place you go to for a salad or two in the afternoon. they're starting to make headway there. aroline: from a management point, are we going to see more innovation come from china back into the u.s.? >> that's a great question in all of their markets they always have some things they don't play in the u.s. but if they do well in choirnings i don't see why they wouldn't bring them back. >> do all of you drink coffee in the afternoons? i'm a caffeine imbieber, all hours. >> that's who starbucks likes to have come in.

what can i say? >> we thank you. great breakdown of starbucks. coming up, elon musk going after one of america's most iconic carmakers. why he says ford my fail in the why he says ford my fail in the next re

why he says ford my fail in the next re comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers.

"activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. mark: i am mark crumpton with bloomberg's first word news. as a caravan of central american migrants continues its slow journey northward, president said today that troops at the border will not shoot migrants if they throw roxette americans. his comments today were a reversal from remarks yesterday when he said a rock thrown should be considered "a rifle." today, he said, "i didn't say shoot. i didn't say shoot. but if they do that to us, they are going to be arrested for a long time." the u.s. government reimposed

all of the sanctions on iran that had been lifted under a nuclear treaty. presidentne of obama's signature foreign-policy achievements. >> we are very confident that our sanctions will be incredibly effective. frankly, i can prove that already. the iranian economy today is already feeling the effects of this. the sanction effect will not occur until monday, but brand new this was coming. this was coming. mark: the foreign and finance ministers of several countries criticized re-imposing sanctions. the impact ofing the american move. united nations secretary-general precipice is on the

of what he calls imminent catastrophe as the risk of famine grows. it is the latest sign of frustration over a conflict that pits many in the arab world -- one this poor country of the world's poorest countries. >> we need to prevent an imminent catastrophe. the time to act is now. mark: the trump administration is demanding a cease-fire in the endch of political talks to the proxy war in yemen. president putin praised russia's

military intelligence agency today, which has been accused of being involved in election hacking and sports doping. putin said he was confident in their electoral is him, determination -- in their intellectualism and determination. i am mark crumpton. this is bloomberg. >> thank you. , elon muskview talked about a wide range of topics, saudi arabia, apple, ford, and more. let's begin with our tech editor. he has been looking at this. he made some amazing statements, potshots at apple were kind of .nteresting >> not necessarily a new thing to say about apple. the people would agree that magic of the steve jobs era -- everyone waiting for the new

iphone, what was the new feature, what would it look like this time -- is pretty much over. but he still decided to take that potshot. musk do thison podcast, and can you draw a link between his media appearances and what the pressure has been publicly between the sec and elsewhere? >> i think he did it because the asking him every 45 minutes for the last few months. said theterview, he wall street journal is full of journalists who are terrible. he didn't like one of the stories they did. he wants the public eye. he wants to be understood. --thinks he is parentally perennially misunderstood. bring one of our automotive reporters into this because he also made some

comments about ford and talked about it being monumentally difficult to build cars. >> he absolutely did. this point over and over again about how hard it is to make it in the car business. he talked about this idea that, just look at the u.s. auto look at the fact that only tesla and ford are the ones who stayed out of bankruptcy. todaye this point again in a podcast posted today, and said oh, by the way, the next time around ford might not make it. wakes there's a good chance -- >> there's a good chance ford might not make it through the next recession. >> there you go, thank you. we have had some discussions in the last couple of weeks about .ord's earnings

they gave everybody only a day or two days notice that they were going to have earnings last week and scheduled it right on top of ford's earnings. they had to move their call back by an hour because analysts complained. andaking potshots at tesla taking the mystery out of this taking the mickey out of people who love cars. said he thinks it's absurd that tesla is even alive. i also like where he's going next. apparently, there is going to be a blade runner pickup truck. do tell. >> they had a little teaser image. i don't know what that means. they have had a teaser image that they showed at an event that was a sketch of what this hiccup will look like. talked about the truck having a lot of titanium. i don't know where that will go. he talked about the idea that he

wasn't sure how many people would buy this truck. >> i want you to talk about him dying on mars. not the reality of him dying, or of this but the appeal to the space crowd. how crucial is that question mark just like we were talking about people not being excited about apple products anymore, he has been able to capture that space of what happens next? he puts up these products we speculate about for months. that is something apple doesn't do any more and tesla does, sort of. is he the most high profile person when we talk about tech -- aspirational

inspirational tech leaders. is he that person? >> i'm not sure. hehink for a lot of people still lives. i think for these hijinks he gets into, these controversies he seems to create for no good also have a drag on the brand. i think a lot of people of elon because they see him as a rebel who pushes the status low and a lot of people are not interested in that anymore. they think he's too much -- pushes the status quo. a lot of people are not interested in that anymore. they think he's too much. >> the image of driving up punk and sayingto mars sayonara. thank you so much. lookg up, the fed doesn't like it's slowing down. details ahead. this is bloomberg. ♪

>> jobs friday. payrolls rising 250 thousand, topping estimates of 200,000. we have been covering the numbers here quite a lot and here is what some of our ts have had to say. >> a solid number. >> a solid number. >> wage growth. >> of that, to me, is a very important psychological level. >> i think the underlying strength is good and it's what we were seeing before we jumped up to this 3%-4% jobs growth rate. >> growth is strong. the jobs market is hot. the fed is going to keep going.

the first to rivet us of growth is stable to slower. of growth is stable to slower. it is good but it's starting to go down. >> the markets will remain up and down. volatile. brian chappatta joins us. was, iprise to me expected the front end of the longero yield more to dated debt. that's not what happened. 30 year yields sold off more. what was going on here? it was an interesting day of price action. which makes sense. >> the fed was going to keep going. it's a great jobs number without runaway inflation on the long end. but then what happened is this idea that there was going to be a big 30 year bond option tax auction the next

week. people are building up cash to buy potentially cheaper tech stocks. stocks.er there was a lot of talk, including earlier today about whether the fed was going to seems allse, but it but certain they are going to raise. the november meeting is an happening. december does seem likely. they will take the data as it comes. so far, it's month after month. how much handwringing is there about this? >> not too many. the 30 year yield curve is closing at the highest level since april. a lot of buffer has been built in by longer rates. the fed has to be smiling. this year, there was a

20 basis point spread. if you like one more time, the yield is going to curve. >> the fed might be smiling. the treasury department is not. will get more expensive to borrow as a nation and for companies to borrow long-term. could curve -- curb growth even as the yield growth deepens. rising ratesct of is something that will bite eventually. we are seeing at a little in housing, not so much on the corporate side yet. in a fed tightening cycle, it will eventually hurt, but it hasn't yet. we seeing any change in expectations with regards to inflation? when you look at the report we got this morning, it sort of fed into it, but it sort of didn't. wage growth,e which is good.

oil prices are coming down. there are a lot of mixed feelings right now, the 2% inflation target. there is no risk we are going to overshoot dramatically. is this why we are seeing a flood to the market? >> i'm not entirely sure. i don't think the yield is going to go up dramatically more than spreads arenow, but good. the market has settled down a little bit and that's hopeful. >> some companies have been bond salesrporate through the turmoil and are now coming in as things start to wind down for the year end holiday. it's getting shorter and shorter with this turmoil, that's what people are saying. thank you. brian chappatta talking all things debt.

we check on the latest business headlines for you. funds looking at a toymaker. people familiar with the matter say asset managers are looking at the capital required to revive the chain under the name jeffries toybox. says congresswoman susan molinari has transitioned to an advisory role. afterparted the company battling accusations from president trump and republicans that the google search engine is biased. uping up, couples splitting have an incentive to do so by the end of the year. of taxally thousands

deductions. this is bloomberg. ♪

>> this year's midterm elections turned conventional wisdom and longtime stances upside down. with only four days to go, candidates are twisting themselves into curious positions. our political reporter joins us from washington with the story. twisted positions. do tell more. >> it is not uncommon in past election cycles for candidates to do some sort of role reversal , but this cycle takes it to a whole new level. it is bananas how far-reaching it is. there is a republican congressman in kansas who says his democratic opponent is not likely to stand up to president

trump enough. this is a congressman who voted with the president more than 90% of the time. this is a republican accusing a democrat in south florida of being too close to coal. the partymocrats are of environmental regulations and doing more about climate change. these are just a few examples we have seen with these role reversals. >> i wonder how much this plays into the idea that quite a few swing voters are unaffiliated with either party. they are really going to be the difference maker and a lot of key states like new jersey, florida, and elsewhere. >> it definitely plays into the idea that voters writ large across the board are dissatisfied with both parties. more than anything else, there are issues heavily associated with one party or another that are unpopular, not just to in southregions like

florida, environmental regulations are a big deal and climate change is a big issue. there are a lot of areas that are dealing with rising sea levels. there are republican candidates who have actively fought to roll rollbackacare and protections as if they are defenders of those -- you are now campaigning as if they are defenders of those same regulations. a baitedoing to ask question for a friday afternoon, this matter of to voters or do they just take what they want to hear and run to the polls with a question mark >> i think it matters. the cover of their local newspaper, they see it on the evening news at home, one

candidate being accused of lying or twisting the facts, it does matter. bit of a a little public truth era because candidates can increasingly go around to press, go around news outlets to get their message directly to voters through social media. more are more ways, no -- escape hatches for them, but at the end of the day, it absolutely does matter. a post-truth, how depressing. brilliant take. amidst all the headlines the gop tax bill, one ignored effect was on divorce. getting a divorce by years and could save you tens of thousands of dollars.

as our reporter pointed out, quite a lot of people were interested in this story, which says a lot about our customer base. why is it better, if you are going to get a divorce, to get it by the end of 2018? overall changed the rules on alimony deduction but they waited a year because they figured there were divorce negotiations in progress that needed to be finished. they waited and they changed the rule starting in 2019. no longer, you will be able to deduct any alimony payments you make. i get confused because this gets collocated. the recipients of alimony had to pay taxes on that. complicated. the recipients of alimony had to pay taxes on that. a tax raise to

because the payer of alimony and the receiver tend to be in different tax brackets. clientst get calls from asking for advice on this. gohow long does it take to through a divorce? does this mean people are going to say we had better get on this? >> if you are a wealthy person, your chances of getting before december 31 are almost zero. you have to catalog all of your assets and you have to negotiate this stuff. in a divorce, only one party wants it more than the other. i want to rush my , how much am i saving? >> we are talking about tens of thousands of dollars. it's best for somebody making millions of dollars a year.

it's affordable, but it's still a little bit of an incentive. people who have a deal already in the works are trying to wrap this up as quickly as possible. >> people are actually rushing this through? >> they are. it doesn't necessarily make negotiations less acrimonious, but it makes them have a deadline. this is always a busy time for divorce because people want to be divorced before the holidays. they want to file as a single person in the new year. it adds to the crunch time. >> i had no idea that prior to the holidays was crunch time. alsoparently, new year is a busy day. people decide i don't want to go through another holiday season with this person ever again. [laughter] what about summer?

>> couples seem to enjoy each other then. -- oh my gosh. >> stay together, everyone. >> love each other. the markets aren't making people move to that conclusion either. >> have a conversation this friday. it has been a great story though. thank you very much indeed. over a iranian oil go back into effect on monday. , midterm course elections are on tuesday. don't miss our special coverage starting at 7:00 p.m. new york time. upbloomberg technology is next. >> have a great weekend. stay together. this is bloomberg. ♪ berg. ♪

emily: i am emily chang in san francisco and this is bloomberg technology. apple shares take a hit after it reports a lackluster results and the iphone maker says it will no longer share how many iphones it's selling. we talk about the tech giants next era. conditions in a state of uncertainty for