take very long to do them." the president says his lawyers will review the answers before they are sent to the special counsel. the justice department has inadvertently revealed that prosecutors have charged wikileaks founder julian assange. his name appeared twice in that on an unrelated case. it is unclear what charges he faces. assange has angered the u.s. government with mass disclosures of classified information. he has been holed up in the ecuadorian embassy in london for more than six years. education secretary betsy devos is proposing a major overhaul to the way colleges handle complaints of sexual misconduct. the new rules would require schools to investigate cases only if the alleged misconduct is reported to certain campus officials, and only if it occurred on campus. the plan would also narrow the definition of sexual harassment, and allow students accused of misconduct to cross examine

accusers at campus hearings. secretary devos did away with obama-era guidelines last year, saying they were unfair to students accused of sexual misconduct. the russian military says nearly 270,000 syrian refugees return home in recent months. defense ministry official said today nearly 6000 people returned to syria in just the last week. syrian officials have been encouraging refugees to repatriate, saying the violence has subsided. western governments say it is too early, fearing that refugees would face persecution upon their return. global news on air, and a tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg.

taylor: this is -- scarlet: this is bloomberg markets the close. taylor: i am taylor riggs, here for the scarlet: end of the trading day. scarlet:the s&p up a third of 1%. competing drivers. the president's comments on trade overcoming a cautious message from the fed. the dollar has been weaker all day. the bloomberg dollar index -- hans redeker says the dollar has peaked. oil prices paring some of the earlier advance. retail under pressure again. xrt falling for a sixth straight day. taylor: this looks a little similar. i put it in the bloomberg dollar index as well, often about 0.5%. that is how much of a team it is today. onrlet: it is like we are the same page. i am looking at the yield is

well, coming in about four basis points on the 10 year. along a little bit of those dovish comments we got from clarida. are we at the neutral rate? what is the neutral rate? lots of questions. theng to the equity market, semiconductors and chipmakers continue to be the theme of the day. the stocks having a tough week. nvidia keeps getting worse. 24 hours ago, they came out with their earnings, and shares have not recovered since then. scarlet: the guidance left something to be desired. taylor: i also want to look at some of the top calls and the big movers on the back of analyst recommendations. first, buckingham maintaining rating --e target and raising its price target to $102 a share. the company is well positioned amid a shifting retail landscape. bank of america -- grading battery maker energizer and cutting the price target to $50 a share. the analysts citing concerns

over the spectrum auto care acquisition. goldman sachs cutting its price target on neutral-rated ge to nine dollars a share. sees further headwinds, citing more questions than answers. those are some of your top calls. scarlet: washington has been a big driver for the markets today. president trump spoke earlier on trade between the u.s. and china, after that nation put forward a list of issues for negotiation ahead of the g20 summit in two weeks. pres. trump: as you know, china wants to make a deal. they sent a list of things they are willing to do, which was a large list. not acceptable to me yet. at some point, i think we are doing extremely well with respect to china. i have great respect for president she -- xi. but china has taken advantage of the notice states for many years. more, let's bring

in washington correspondent kevin cirilli. the president cannot help himself and is always pushing this narrative that china is looking to make a deal. right now, the markets are responding. how is the rest of the administration catching these comments? kevin: it are navarro, economic advisor, gave a blistering critique of china. vice president pence making an asian tour. we heard from commerce secretary made thess, who opposite policy argument in terms of what peter navarro has said. people are trying to gauge once again whether president trump is listening to peter navarro or secretary ross. it is the good cop, bad cop type of argument you have seen play out. the president talked

about president xi jinping of china. the ministry's and forecast within the last 24 hours that this is going to be really well into january. it is really a first step. the framework might have to wait until the new year. isrlet: also talking a lot discussions about nancy pelosi be the houseto speaker. if not her, who? kevin: it could be marcia judge. earlierome lawmakers on today. i can tell you that i spoke with several senior democratic aides throughout the week, including this afternoon, and she appears to have the votes. whether she has the 218 votes, the key number she would need, or if she would need to use procedural work, it remains to be seen. if you are outside washington, watching from overseas, what you need to know is that the factions within the democratic party right now are on full display.

there were several democrats who ran on the notion that they would not support nancy pelosi to be the speaker of the house. but at the end of the day, they won. they won the house of are presented its. that is the key takeaway. scarlet: it was part of her strategy as well. let's have been made about previous speakers' ability to fund rise and wrangle votes, including paul ryan and nancy pelosi when she was previously speaker. what is the more important criteria to be speaker? kevin: it depends what folks are going to be looking for. riddick's would say she has to be in line with the base and activists within her party. supporters would say she turned the house blue, she contributed to that, she flipped trump districts and clinton districts, one them back. she swung independent voters and was able to unify the party collectively. handle thee to bloomberg element of the party. a congresswoman is the democrat

has california who constituents including the tech companies. she is supporting nancy pelosi and i asked her point like, why is this situation? she said, i don't know. it is like they forgot who got us here and got us through this fight. scarlet: there is a quickly approaching deadline to avoid a partial government shutdown. a lot of it is about spending bills and the wall. her be getting the government shutdown? kevin: likely. and i do not think the president sees it as a bad thing, particularly if he can start talking about the wall. kevin cirilli, our chief washington correspondent, in washington. taylor: coming up, dollar divide. one of the biggest dollar bulls is doubling down on the greenback, but others are taking a different path. ♪

scarlet: let's get a quick check on the latest business flash headlines. tesoro is surging after the cancer drug maker said it is exploring a sale, according to sources. shares of the company tumbled earlier this month after disappointing drug results. one of those buyers could be gilead. nordstromhares of fell the most in more than two years today. analysts are concerned by the department store chain's weaker than expected growth margins and same-store sales. our storm also had a credit card issue that resulted in a one-time charge. taylor: elon musk's warning workers at tesla he is coming for a visit. musk says he will walk the entire model three production line on november 27 and 28. he says from battery cells to finished vehicles, all facilities need to be able to support 1000 cars per day. tesla reported a surprise third-quarter profit thanks to breakthroughs and building more of those model threes. that is your business flash

update. scarlet: you can call it the great divide. wall street is serving up mixed opinions about the strength of the u.s. dollar and the path ahead for the world's reserve currency. one of the biggest dollar bulls is david bloom of hsbc, and he is doubling down. hans redeker says the dollar has peaked. let's bring in bloomberg macro strategist thence. -- vince. it is clear what people can agree on is there is a path one way or another for the dollar. what does it rest on? vince: i think it rests on trade. we always go back to the trade situation. the trade situation, if the tension sort of ease in the near term, you could see the dollar pullback. emerging markets will rally. some other currencies will rally based on the global growth story. in the end, the dollar will come back from that, because the u.s. economy is growing faster than any other economy in the world, and is likely to stay that way for a while. you mention trade, but

we heard from rich clarida today about perhaps some slowing economic growth. we're not quite sure where the neutral rate is. that is what moved the dollar today. we are off about 0.6% on the bloomberg dollar index. a much does the fed way into this? vince: the fed does way into this. -- weigh into this. the neutral rate, nobody knows what that is. lovely nose with the neutral rate is, so when we talk about something we do not know what it is? it is ridiculous. the fed is on a rate hiking path they are hell-bent on, getting rates back to neutral in the event of a recession. if data weakens, they will pause. otherwise, they are going full steam ahead. scarlet: we mentioned david bloom with hsbc. he says the dollar is strengthening further, to $1.30 versus the euro. for him and others, this is about the euro weakening rather

than the dollar strengthening -- the dollar being the beneficiary because of drivers pushing the euro down. vince: at the beginning of this year, i would say it is the dollar strengthening. this time of the year, because of the heightened trade issue, it is because of other currencies weakening. november 21, they have to deal with the italian budget, which did not give them any leeway. out somehave to put penalties against italy, which is going to weigh on the euro. they also have falling oil prices. falling oil prices weigh on the harmonized inflation rate in the eurozone. when that goes down, the euro goes down. that is what is more likely to happen in the fourth quarter. sorry, but the other currencies may go up. the euro, i don't think so. of the dollarch story is impacted by foreign investment flows, by rates looking attractive? you have money flowing in, and that pushes the currency higher. investment flows, as

flows, have been the driver of currencies, i think from the 1990's. somewhere around the 1990's, trade went out the window and asset flows became the key thing, a lot of that because of hedge funds, portfolio managers. thelet: trade during 1980's. i love that we have come full circle. we are back with president trump. taylor: how is that? another 30 years? that was been single relevant -- ignarella. the 10-year gilts coming in at about 10 basis points. 1%,semiconductor index off driven in part by nvidia, off about 19%. that has been the big driver since 24 hours ago, when they came out with worse than expected forecasts for earnings. again, looking at the consumer

discretionary. nordstrom's -- we did that in our top calls. the consumer discretionary and retail has been hard hit. we are only a week away from black friday. scarlet: gross margin comments raising concerns that this holiday will be as good as it gets for the sector. ♪ ♪

scarlet: this is count down to the close. taylor: caroline and joe are off. what are you watching as we are 10 minutes from the close? >> i started looking at gold, which is up 1% on the week. silver also rising. i looked at palladium. this was up about 6%. it is the smallest of the precious metals market. think about this. there is only one major metal that is higher year to date, and that is palladium, precious or base.

this has to do with news out of vehicleat the new pollution standards, which are reliant on palladium -- they are ramping up pressure. you have to wonder how the russian sanctions factor into it. it has become a huge trade. this is about four times the average on a typical week. a lot of activity we do not normally see. people swapping out platinum. this is where you go right now. i try to do my best wenzhou is away. scarlet: let's look at what is happening in equities, because you are seeing the defensives take the lead -- telecom, utilities. these are bond proxies leading the way higher on equity markets. on the flipside, when you look at what is leading the decline, the story,ll about but if you are bullish about the economy, this does not send a great message. when you do together, the

indexes have been meandering throughout the day. this late higher was when president trump said he thought china would do a deal. the big question is whether he is in the mood to do a deal. continue to hold onto the advances and the nasdaq is little changed. taylor: we are moments away from the close. i want to dive deeper into the equities with our reporters. lisa, what are you watching? lisa: pg&e stage something of a comeback, shares rising 30 print -- that it percent -- shares rising 38%. that is the 10 debut, down 48% view, down 48%. who are the losses? a clutch of hedge funds piled into california's biggest utility back in the three months that ended september 30. viking global and appaloosa collectively owned nearly 7% of the shares of this utility as of the end of september, from 1% at

the end of june. just giving you a sense of who might be feeling some of the hurt here, romaine. romaine: thanks, lisa. os is the wireless speaker company that just went public in august. of about 8%, 9%. dayas up 25% earlier in the on the back of its earnings report. the second we have gotten out of this company since it went public. his is one of the most heavily shorted companies going into earnings. about 60% of its float was tied to short bets. we're seeing a squeeze. they went public at about $15 a share. they have not closed above that since the end of september. assuming these gains hold, we are at about $50, and that would be the first time we have seen them back above their opi -- apo price on a closing basis. abigail: we have some outsized movers on the week. look at apple, down 5%, worst week since march, on continued

fears around iphone demand. nvidia down 25 5%, the worst 20.5 percent. ge down again. a crisis in confidence even as a new ceo took the helm not long ago. goldman sachs down 9.3%. another crisis in confidence around the involvement in that malaysian bond scandal. we have bright spots, but all of this has the major averages down. these are, s&p 500 -- the major actors on the year, each down more than 1.5%. big moves down and up. the summer mainly to the upside. october, those big blows. the first two weeks of november, we had big gains. we are seeing the first decline for the month of november. if you take out the weeks of october, big declines, it puts

us back to earlier this year in terms of the volatility that we are once again seeing. romaine: thank you, abigail, lisa, and myself, the markets team. [laughter] romaine: let's turn to chip stocks. we saw the philadelphia semiconductor index break the streak earlier this week. it fell today about 1%. a lot had to do with the report out of nvidia and applied materials, raising questions as to whether the cycle that had been bullish for the last five years -- whether that is coming to an end. let's bring in someone from bloomberg intelligence, who covers the semiconductor and networking companies, joining us now from princeton. specifically on with the demand cycle when we look at corporate spending, as well as consumer spending on the pc side? >> on the pc side, we have to bifurcate the market. first, on the consumer pc side, second on the data center side. if you look at the data center

side, it seems fairly healthy. if you look at nvidia's results, which are top of mind, the numbers were ok. at the same time, they continued to forecast growth on a sequential basis. if you look at the results at intel as well, those results were fine as well. but if we start looking on the consumer side as well as the industrial side, i think the trade tensions are starting to weigh on the chipmakers. some of the earnings reports i have listened to over the past quarter, they have cited a reasoning -- that as a reasoning, as a pullback on demand. there is a pullback on demand. taylor: what is interesting with what happened yesterday is you had applied materials and nvidia come out with disappointing guidance. applied materials is a leading indicator for the chip industry, because companies need to buy applied materials gear before they can ramp up. what does that tell you? >> in terms of the disappointing

guidance, i think it is really related to some of the chip guidance we have seen from their customers. if you think of someone like the apple chip supply chain, or like the industrial chip supply chain, like texas instruments, for instance, they would be amad as well. one feeds to each other. if you look at the implications of nvidia in terms of their guidance, for instance, i think that was a little more self-inflicted as related to crypto. taylor: we talked about the demand side of things. a big concern is supply and the inventory of chips. when does the market start to balance out in terms of supply? the fourth quarter of 2019 or even into 2020, what do you think? inventory, but as it relates to the crypto gaming does expect that

to clear out and get back to some sort of stable level at the end of the fourth quarter, the january quarter. it may take another quarter or so to fully flesh itself out and resolve the gaming issue. scarlet: thank you so much for joining us from princeton. great perspective. as we head toward the market close with just under two minutes to go, we bring in a market strategist, and a portfolio manager and bloomberg macro strategist, here in new york. kevin, let me start with you. when you look at the weakness in the chip sector and all the cyclical sectors, and you see gains across the defensive bond proxies? what does that tell you about where investor sentiment is? it is saying that the investors are becoming a little more circumspect about the near-term prospects for the economy. if you go beyond the sectors and look at the foreign and macro data -- start with china,

industrial output from china. there is weakness if you look at industrials. medals, you were just talking about. i think the story that played out this year is strength in the united states. we had a big improvement in profitability. it carried our market to highs. but within the last two or three weeks, we are starting to see some weakening beating back into the united states, and emanating from abroad into our markets. kevin, we saw a performance this week in emerging markets. i am curious whether that was due primarily to the weakness in the u.s., or whether there is a narrative coming out of emerging markets as to why we are seeing more buying there. kevin: i think on the very tip of the spear, there has been a bit of a change in narrative as it relates to the fed. part of this has been the fed tightening, raising interest rates. the strong dollar goes along with it. the last few days, as volatility has picked up, there is a

narrative where the fed might soften next year, and that would be a positive for emerging markets, particularly if the dollar were to soften a little bit. we are done for the day. and for the week. a mixed session for u.s. stocks. the dow adding points in the s&p 500 also in the green. the nasdaq not finish with an advance. really getting dragged lower by the semiconductor name, and facebook as well. weekrtainly has been a bad if you have been looking at some of the faang stocks names. romaine: they just have not done that well. maybe get a to boost from the economic and fed side which seemed two-putt underpaying in there. that did not last. scarlet: let's go to the market reporters. romaine: i was taking a look

at department stores. the s&p 500 was on fire for most of the year. it was up about 46% before the end of last week, but this week, down about 16-17% and a lot of that added to the narrative unfolding from nordstrom, macy's, walmart. it comes into gross margins. the companies are spending a lot more money to get people in the door. they are spending more money to get people to go on to the website, and at the same time, they are spending more time luring customers who are only buying the discounted items and not trading up to some of the more expensive items. this is not the best setup we have seen going into a black friday for quite some time. looking back at 2015 and even 2014, we had strong rallies in the holiday shopping season and by friday. that this time around. lisa: i'm focusing on credit because we saw a mixed market at the end of the day today.

credit continued to weaken if creditk at for example default swap indexes. the biggest five-day weakening for the applied spreads widening the most for a five day. since march. investment grade is -- five day period since march. investment grade is the blue line. people are very concerned right now that what you are seeing is a wholesale repricing of the top-rated corporate debt. this adds to the pain this year. we're looking at the worst performance since 2008. this we did not help that, abigail. abigail: confirming that sense of risk off you are talking about, let's take a look at the markets overall on the week. the major averages, as we were looking moments ago, lower on the week. the first down week in november. the iphone demand that apple is

a real drag on chip stocks. lots of points of weakness confirmed by the fact that haven bonds rallied. on 11 basisgilts points and this is a reason to think the rally for bonds could continue and turn. that may suggest the volatility for stocks may return similar to what we had in october. to's take a look at a chart monitor its progress. and ratesig backup with the 10 year yield moving closer to 3%, but we are andnged on between 2.75% moving closer to 3%. asuld area for support fold looks likely. we could see a rally and rates continue. that tells us on's would be rallying too, and in turn, perhaps we have a little choppiness ahead similar to what we had on the detailer. >> watching the three of seven

andort, thank you abigail the markets team. i want to bring in kevin -- sorry, we still have kevin and i want to bring in cameron crise. you are part of our markets blog and you always talk about trading on fundamentals rather than headlines. a lot of fundamentals are making a choppy market. his volatility here to stay or do we need to get used to it? goal of notxpress only the fed but monetary policy around the world for most in the pros crisis era has only been to depress risk premium to give volatility from being too high. clearly, we're moving away from that. as fed policy becomes closer to neutral, we are not there yet. as it becomes closer, that put a lid on volatility and the lid is being removed.

as uncertainty continues, that should naturally increase uncertainty in markets and make -- think of it this way, volatility will sell on rallies are most in the last seven or eight years. it is probably a buy on dips henceforth. romaine: when you think about some of the volatility we have had an uncertainty with regards to the political issues going on, where do you position your self particularly going into the end of the year given all of the gains we have had. how do you make a recommendation to remain overweight in this market? >> that's out allocation portfolios that we run it washington crushing, we follow our -- crossing, we follow our barometer. the data for us, risk appetite, plus market signals, that all peaked back in february after the euphoria following the tax deal. throughout the deal, we have

reduced our equity closure. at the moment, our barometer is roughly neutral so we have kind of a neutral posture. trying to figure out where we go next. we are looking at the fundamentals, but keep in mind too, the market can create the fundamentals if investors decide to take the ball and go on. if there is risk aversion that asserts itself here, it can feed back into the fundamentals in the economy. we have to be careful. risks, youeaking of write today's macro column that many issues are geopolitical. this is a scenario where traders don't really have an edge because one guess is as good as another. an edge might not even be possible. what is a result of that? is there more participation or just less volatility?

cameron: volatility is the most obvious outcome. the impact on a portfolio depends on who it is we are talking about. more tactical traders may find themselves chasing headlines which i think is a pretty low ratio proposition. in each of the last couple of days, we have had a trade positive headline. today, was followed by a less friendly headline, wilbur ross and the cnbc leak about don't preach too much. -- don't read too much into trump's comments. brexit is another example where there is lots of noise. it may be the case that there is no ideal solution because the functions of the various actors are mutually exclusive. is no equilibrium where everyone can maximize the utility.

that is a difficult market in which to trade. you have gap risk. you wake up and there is a headline that goes against your position, and there is no we to call that back unless you cross your fingers and hope there is a headline coming in your favor. kevin, another classic trade we watch is the growth versus value trading. growth is outperforming here. his momentum still the trade or we -- or are we switching to value seeing a selloff? kevin: trees don't grow to the sky and we a couple of years ago started to create models that look at valuations between -- and value -- growth and value. we tilted the tactical portfolios toward value overgrowth. for a while, that did not seem to be much of the right choice because growth kept going up, but some of the high valuations.

lately seem to be catching up. . we would expect to see value outperform growth. we sticking with that call going forward, but it has been a rocky trade so far. scarlet: kevin corona, thank you very much and cameron crise. i want to put your attention to the fact that bum barnier, the train maker made a two-year low. this week.en 37% the biggest drop since 1988. what is going on? regulators are reviewing the stocks program in the wake of an earlier share selloff. there is extra pressure on this company as the decline accelerates. they are off 38% in one week. romaine: and they had the big cuts in their cash flow forecast so their stock was down even before this came out. now it seems there is no hope. scarlet: that does it for the closing bell and for me.

lisa abramowicz is stepping in for "what'd you miss?" we look at the increasing role of crypto in sports betting. this is bloomberg. ♪ ♪

taylor: live from the world headquarters in new york, i'm lisa abramowicz. snapshot atquick how u.s. stocks are trading in mixed session. the dow in s and b is higher. every sector in the s&p is makes. the nasdaq is lower led by the chip stocks. romaine: the question is "what'd you miss?" when the chips are down, more pain for the semiconductor sector as nvidia falls the most in a decade. bitcoin is a longer boring. they roared back into the spotlight this week with the biggest selloff since august. plus, why you should think twice before listening to anyone predicting armageddon in the debt market. romaine: last year's cryptocurrency was all of the rage. this year, the currencies have taken a leg down and there have been questions about its future. we will bring in right now the

founder and ceo of unicorn. he joins us now from seattle here to talk a little bit more about the shifting trends in the cryptocurrency space. raou --- how you look at this where we have a cryptocurrency and blockchain that has potential but people say there is speculation and the no use for it gone speculative plays? >> last year was an unbelievable year for crypto. there was about two dozen coins created out of nowhere. many projects have gotten off of the ground last year. there are some really good nuggets and could companies working on actual depth and usage on platforms that are the next generation of companies.

lisa: i want to talk about unicorn specifically because one aspect is getting a gambling license for crypto-based betting on e-sports and gaming. what's the attraction for going toward some of these less savoring areas? rahul: we are in a highly regulated space, but unicorn was founded in 2014. we are a global e-sports platform and backed by people like ashton kutcher, sherry redstone, and we have very good investors on our platform. effectively, it is a highly regulated business given heart of our business is regulated gambling. when we started to build a platform we looked at blockchain as the best foundation we could

build on when it comes to doing things like ky see or know your customer and aml. walletdo better tracking, forensic wallet tracking, we can do things on blockchain that we cannot do on a traditional platform. this is why we are the only company in the world to successfully get a license for betting with crypto from the isle of man and it opens up our platform to about four continents. -- an amazing technology and gives us the ability to drive usage like few other platforms can. taylor: interesting -- it's interesting you mentioned regulation. it's up to some of the individual states to talk about individual regulation. what states are you going into and how much of a tail wind is the lifting of the e-sports betting for you? rahul: we expected the u.s. to

lift the ban. when we started the company in 2014, we expected to -- expected it to happen within a few years. worldf the developed were betting on sports is a part of culture so we really spent the last four years building a great platform for betting on e-sports, but also betting on yourself in video games. we created great products that we new overtime eventually, when the laws lift in the u.s., that's will come to the u.s., but it is not a huge priority for us. it is still state-by-state regulated. you need to be partnered with a land-based casino and unikrn is partnered with land-based casinos. we run tournaments inside the mgm grand every week. i imagine you would hear more about us expanding across the u.s. in the very near future. romaine: what is the advantage or point of tying the e-sports

business to crypto token or whatever the currency is going to be called? rahul: that's a great question. we have something called unicorn in -- unicoin. point.it as a loyalty a back then, it was a token that could not be transferred or sold, but it could only be earned. it can be earned when gamers connect their gaming accounts to our platform. you can connect your league of legends account, dota accounts, fortnite account and earn these coins. last year we created unicorn -- turnn gold but you have to over coins on the platform before removing them from the platform. they can use them in betting, all of the platform and berries ways, and then we collect a lot of data from the users who

connect their accounts to our platform so that we can put odds on their chances of winning games. it is part of our ecosystem. the unicoin is the center of the unikrn ecosystem. taylor: can you give us a sense of how big -- lisa: can you give us a sense of gaming ands unikrn unikrn devices are? rahul: he sports in general, there are hundreds of people who watch e-sports. about 300 million fans that watch e-sports everyday. who would've known you could play competitive video games and make millions of dollars a year doing it. the reality is, you can. now, a lot of mainstream sports are looking at the space. you have the nba who created their own e-sports league. you have the nfl who is trying to do the same thing and major league soccer are all getting into e-sports and very us ways. the reason is because traditional sports are becoming

less relevant. the best way i can put this is that if you look at the median age of a pga tour fan, it is about 79 years old. the median age of a major league baseball fan is 57 years old. every day there's is a new e-sports fairborn, that is why. lisa: thank you so much for being with us. as a mom of two boys, i'm cranking -- quaking in my boots at the prospect of them making millions of dollars playing video games. u.s. bonds on their pace for the steepest losses. taylor: his arm again in the head? that's next. this is bloomberg. ♪ -- is armageddon ahead? that's next. this is bloomberg. ♪

lisa: 2018 has been the worst year for u.s. corporate credit in a decade. some are saying this could be just the hint of a broader decline to come. bank of america calls a day " perfect storm for credit." our next guest says not to fear. --bring in brine to potter we bring ina -- brine to discuss. >> we have the who's who of any big fund managers saying watch out in investment grade credit and there -- it has been a week year. easyinvesting is not anymore is what it comes down to. you cannot just invest in any corporate bond and express the spread too narrow and never a. there is a risk involved and we are starting to see it. islor: i think the concern when the fed raises rates, yields rise. it's the second derivative, the rate of change that has people little nervous. is that what is concerning here

about how quickly it is moving? brian: i think there is a ton of leverage in the financial system generally. that's part of the reason why people are concerned. you see certain names like ge come up with a lot of leverage as we have talked about. that is a problem, but the question is, is that systemic? things are selling off like there is contagion risk. people are trying to connect the dots, does this mean this or that. we have to take it one step at a time and see if a big conglomerate -- see how a big conglomerate deals with it. romaine: you are probably one of the smartest people i know. brian: thank you. romaine: scott minor is also pretty smart. our plaza rias pre-smart -- mark lazzari is pretty smart. brian: are you saying they are smarter than i am? romaine: will hold on. in all seriousness, the alarms sounding do not come from one

group. these are people who have looked at the market and is said there is some fault in the credit market. why are they to be believed right now? brian: i think it is still early days. the federal reserve is just starting to gradually raise rates. we are not at the level where interest rates are punitive for any companies yet. they are higher than they were now, when it comes to refinancing, rates are still historically low. maybe people are going to have to cut back on their borrowing or maybe not buy back as much stock is they were going to, but what it comes down to is there are ways that would rates go up, companies can deal with it. lisa: what is armageddon mean? perhaps is a definitional issue. there will be pain but will it be a systemic meltdown? probably not. i think this could be a semantics issue as well. romaine: so we need another descriptor other than armageddon ? lisa: i think it's armageddon to whom and how.

there will be potholes but not necessarily another 2008 financial collapse. romaine: semantics aside, how protected our people for real downside? brian: not protected at all. bond investors don't have a lot of buffer. 15-20-30 basis points means a lot more when rates were two or 3%. bonds are susceptible here, but -- longas long the fed as the fed is gradual, companies will get the message and figure out how to adjust. there will be a little recalibration. there's a little pain, but it will necessarily be wiped out so quickly, so fast. with higher rates taylor:, you can reinvest the money -- taylor: with higher rates, you can reinvest money. a quick check on the latest business flash headlines. cancer drug maker is

said to be exploring a sale, stock surged. shares tumbled earlier this month after reporting disappointing rug -- drug reports. nintendo are concerned switch may have disappointing holiday sales. 9% in tokyore than today. it was one of the fastest selling consuls in history after its release last year, but the supplier of the key chip for the device, nvidia, david on the revenue forecast for the current quarter. down revenue forecast for the current quarter. shares of viacom are higher today. that is your business flash update. coming up, we're sticking with it chip stock carnage. the plunge and nvidia gives a lackluster forecast on inventory. that is next. this is bloomberg. ♪

mark: i am mark region with bloomberg's first word news. jim acosta returned to work today hours after a federal judge ordered the trump administration to immediately return his press credentials. the senate would do so " case overy" while the the credentials continues. they had not determine the first amendment was violated. >> journalists need to know in this country that their first amendment rights of freedom of the press are sacred. they are predicted in our constitution -- protected in our constitution.

i was confident and felt this would be the result at the end of the day that our rights would be protected to continue to cover our government and hold leaders accountable. mark: following the decision, president trump prompted the white house's action and told reporters that if the press doesn't "listen to the rules and regulations, we will end up back in court and we will win." wikileaks has accused the united states "of an attack on democracy" with confirmation u.s. officials have filed charges under seal against its founder, julian assange. this came after prosecutors mistakenly named him in an unrelated court filing. he has been of trying to leave the equity issue -- >> it's a very serious matter for journalists and journalism.

the justice department in the states takes this step against the publisher and editor of a legitimate journalistic organization. ais is extremely worrisome, black taper journalism i would say. mark: the british prime minister once support for her break the deal today from key politicians and business groups. she remains dogged by internal opponents determined to remove her. ao cabinet ministers and handful of junior government members resigned in protest. today she chart -- sought to shore up the case. she named steven barclay as her -- sect roadcoming on board, amber as the intention secretary.

-- thisis that in the is not the time for changing our leader, this is a time to pull together and make sure we remember who we are here to help and serve. that is the whole of the country. i worry my colleagues are too rather than keeping there are lot there it -- what their job is. mark: rudd is a former minister who resigned as home secretary in april. amid a scandal over mistreatment of long-term u.k. residence caught up in a grove government -- in a government drive to reduce immigration. we've been speaking with anthony kennedy. in an interview with david rubenstein, they discussed the battle over brett kavanaugh. thate public will soon see the court is operating in a ,eliberative, thoughtful

.nspiring way [indiscernible] they will see that in the opinions written. mark: you can watch the full interview with anthony kennedy on the david rubenstein show " peer-to-peer conversations." 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. romaine: nvidia falling about 18% today. forecast andeak wrote issues about inventory levels. we have seen a slew of downgrades and price cuts. our next guest lowered his price target but said the issues

nvidia is dealing with may only be temporary. director atging bernstein and joins us by phone. when i look if the inventory levels, up about 40% or so from the most recent quarter, will would lead you to believe this is something that could be worked through in a relatively short fashion? >> i think you are a little confused. you are looking at the inventories on their books. those are primarily due to the new products launching. the inventory issue causing the guide down his inventory in the channel. these are parts they have already sold into air the their needs are to have two monster solo -- soul -- two months to sell out. -- what nvidia did,

they filled up the channel to bring supply and demand back into balance. what happened instead, was the crypto bubble burst and they were stuck with too much product. that is what they are doing. the reason i think it is temporary is they are taking their medicine. this is the biggest cut they could take. they're going to zero. the part of the market impacted, , they willsktop cpus be zero in q4. they are not shipping any and they will let the channel sellout the inventory they already have. it cannot get worse than that. unless you think they will never sell a midrange card again, which is ridiculous, it should come back. romaine: so when you look at the consumer demand side, specifically for gaming, you see there will be at least some sort of inflow of new customers above

and beyond what they have had in the past? stacy: that's a good question. overall units growth in gaming has been reasonable. nvidia had something like low double-digit unit growth takeover in the last five years or so. -- have things like eve e-sports bringing in new users over time. it looks like they are high-end demand and the premiums look fine. hopefully, you can get modest unit growth. their new products as they ramp the new architecture last -- next year, ideally you can get pricing going into next year. taylor: i love that you call this an opportunity and not a thesis changer. i wonder with some of the other stocks to cover, what is the rate through for those? are you maintaining a new

bullish standpoint on those as well? stacy: i don't cover apply the -- applied materials but we have been cautious on the semi-space for a while. cautious a little bit on the semi-spaces for a little while. we have been in the demand driven cycle. the signs have suggested there has been little support if demand were to fall. expectationowth above seasonal. these are all good things if demand keeps getting better. what it means is there is not a whole love the -- whole lot of support demand rose over. given the triggers around trade and tariffs, that maybe the trigger that sends demand over. that is where we are in the cycle. numbers will come down. lisa: what would you have to see to change your thesis? stacy: on nvidia? lisa: yes.

stacy: you don't buy nvidia for crypto or for midrange gaming, you buy it for data center ai, automotive, professional visualization, all these other markets that are doing quite well. i don't think the thesis has changed. if you had a change of heart on those businesses, that might be a thesis changer that i don't think we are near that at this point. lisa: thank you so much, stacy rasgon. he's a senior analyst at bernstein joining us by phone. taylor: now we are looking at some of the stories trending across the bloomberg universe. i want to start on terminal isscribers reading pg&e having its biggest rally since bloomberg collected this data on the company in 1980. the heads of the utilities regulator hinted the state could push for pg&e to prevent bankruptcy.

top 10 items netting half $1 billion on their own. bloomberg.com is looking what else that money could buy. million onpend 55.4 . jackson pollock's composition twitter, they are maintaining the ban on the trade of tiger and rhino parts. criticism got china to halt their plan. traditional chinese medicine uses tiger horn and rhino -- tiger bone and rhino horn. lisa: thank you for the rhino horn update. from westminster to whitehall, everyone is feeling of brexit fallout. we have the latest, head. this is bloomberg. ♪ -- ahead. this is bloomberg. ♪ loomberg. ♪

taylor: brexit kss theresa may fights for her political life. she is staying the course on her brexit deal while fending offer conservative party calling u.k. financial institutions dealing with brexit turmoil of their own. spoke to bank executives and got their take. >> we have had no choice all along other than to assume a hardened system. we have to be prepared on brexit plus one. >> what worries me more is that the issues our customers have, the industry has to really adopted new rules and regulations that are very big as well -- >> nobody knows and the british

don't know. we need to stand ready, be ready to serve the clients for whatever happens. >> you have to plan for the outcome he said is the hardest to do and go against the one that is easier to do. for more let's bring in john authors who is qualified to talk about this because you have a british accent. [laughter] >> indeed i do. lisa: let's talk about the past week and brexit. it was not a great way for sterling. setting up for next week, what are you expecting and how bad will this be? going to be for london? it is bound to be bad. when i started as a financial journalist, london was in a fight for brexit to be the biggest financial center in

europe. battle that london very one -- very emphatically one. in part because much of the eu --emphatically won. it's in jeopardy if you have the heart exit from brexit it becomes very questionable whether bank can meaningfully run its european operations at all and the possibilities are significant. in terms of what is happening next week, obviously i don't know and i don't think anybody in the operational conservative party -- i personally think theresa may's chances of being prime minister in a weeks time are looking better now than they did 24 to 48 hours ago. taylor: why is that because we

heard earlier she brought in more of a camper, amber rudd, back to her cabinet. used to be the home secretary and resigned over a separate issue to do with about people that had immigrated from the caribbean 50 years ago. she has been very close to theresa may. she was an obvious person to bring back into the cabinet. i wouldn't read too much into that. what was interesting was the appointment of young master berkeley. berkeley -- barkley all the way up to his position. i know he's a very impressive operator. he has been a supporter of brexit, but he has been a quiet, low-key, loyal one for theresa

may. he is much less ability to damage or than the previous two brexiteers. it allows her to actually take more direct control. this point, the nation is humiliating itself and running the risk of very serious damage to the country for years to come. it's appropriate the prime minister herself should be in charge. she will be involved in more backroom work now that the negotiations are with her and not somebody else. romaine: doesn't matter who's in charge because this does not seem like it has to do with what the fundamental -- why the --damental issues of brexit has to do with the fundamental issues of why brexit happened in the first place. john: personalities matter in

this -- the largest personality beaming over this -- romaine: where's the? john: he's keeping his -- where is he? john: he is keeping his head down. he has not called theresa may to resign. his younger brother who is my predecessor on the financial times, his younger brother hadn't resigned in favor of having another referendum and staying in europe last week. [indiscernible] he's keeping very quiet and very far away from the action. he cannot be the person to wield the knife. you go back to margaret thatcher, michael wield the knife and did not get to be prime minister. none of the people who might have gone for the kill have gone for the kill. taylor: will the good news is brexit is not going anywhere so

we will get you back for another update. that was john author. coming up, count on to black friday one week from today. we take the pulse of retail ahead of the holiday season. this is bloomberg. ♪

taylor: let's get a check of the latest business flash headlines. fidelity investments has named their head of asset management according to a memo seen by bloomberg. google's cloud ceo is leaving. she has pushed for three years to catch up with market leaders. she will step down from her post and be succeeded by a former oracle's executive -- oracle executive. supposedly are ponying up for their pets. more than twice

as much on their pets as consumers overall. millennial households will fork over an average of 183 thousands -- 183,000 for gifts. romaine: will it be more or less than that? taylor: all i know is i get great satisfaction from by my cat toys. so i might be one of the ladies that dies alone for my cap -- with my cat. romaine: i'm been a walk to rockefeller center. they just opened a new fao schwarz. that was the most fun store in the world and i'm so sad when a closed. it became iconic because of the old tom hanks movie big back in 1988 with the piano on the floor. taylor: had you ever play that? romaine: not well. when they first put it in the store, it was not for sale. than the movie came out and everybody wanted to buy it, and

it was $15,000 or something ridiculous. they created one even bigger, 20 feet. you know what i'm doing tonight. taylor: and they're bringing back the build a bear workshops. lisa: you are buying gifts for your cat and remain is going to fao schwarz, hot friday. mistake yourhe with retail earnings because we're all going down flames. stores like macy's are heavily competing with amazon during the holiday season. the investment is paying off and strong sales numbers. profit margins are streaking -- shrinking. matthew, you put it will set earlier. great numbers, poor stock reaction, what is going on? matthew: wall street is concerned all of the good news is already out there and been absorbed. retail stocks have had a good year. the retail sector, the index has

doubled the broader index because of strong consumer confidence, low unemployment, good result as well, but now it has caught up and people are saying we have hit the peak that results in worries. lisa: i'm sorry, but at a certain point, shareholders want their cake and eat it too. if they want these retailers to be ahead of amazon, they have to invest. why are they not looking forward? matthew: is because they say, are we investing too much or getting return out of those investments. walmart spooked a lot of people and said last year that it would be the most they will ever lose online and they came back and said actually we will lose a little more this year. that puts a little spooked into people and gets them worried a little. the specter of amazon is always there. the matter how much you spend, are you spending enough? not just in the u.s.. look in india as well. romaine: you talk about the specter of amazon, with a lot of retailers have done well or

better in playing amazon's game. they've leveraged the fact that they have more locations. matthew: they are all using their stores very well right now. that's a great thing and that is a reason why they are doing so well. at the back of everyone's mind is the sense of ok we are going into the holiday and amazon commands $.50 of every dollar spent online so are they doing enough and what will happen with the margins as we look into the fourth quarter? romaine: when you look at consumer spending, we are getting a sense that the consumer might not be a strong as we thought they would. we see them relying on discounts. will this be the trend? matthew: don't take any trends from what we see in the next couple of weeks. we will see heavy discounts because black friday is coming up. a company like walmart can do well in any environment. if we see spending to be crimped, that will play toward the discounters. dollar general's and companies like that.

let's go to black friday. we've been speaking with consumer analysts and they said the consumer is fine, just the shopping habits are changing. we know the shopping season is extended and not just black friday anymore. how much are we still starting to focus on that? matthew: we are and we are talking about it now. it started earlier. black friday fever is so strong that it spread to the u.k.. there is no thanks giving in britain. what were they doing? it was one of those things where they got caught up in the fervor. it did not do well and they backtrack -- backtracked. one out of every five dollars spent on the holidays are spent online. there are still a lot of excitement for the stores -- there is still a lot of excitement for the stores. romaine: that's matt boyle. don't miss this, building permits are coming out on tuesday. lisa: and i will be rushing the crude oil inventory report on

wednesday. taylor: and u.s. durable goods report on wednesday. that's all for "what'd you miss?" romaine: "bloomberg technology" is up next. lisa: happy friday. this is bloomberg. ♪

emily: i am emily chang in san francisco. this is bloomberg technology. stanford fires back. the facebook ceo defends herself and her company over accusations that she was asleep at the wheel. backlash from employees and even users not letting up. diane greene is out as google cloud's ceo. why one of the female execs is being replaced despite calls for more women at the top.