y just dropped this off. he-he-he-he. ♪ mark: i am mark crumpton with bloomberg's first word news. as one of the deadliest wildfires in u.s. history continues to burn in california, officials say the risk of new fires is high. , dryding to new data conditions have widened to 100% of the state. at least 77 people have died. more than 1000 remain missing. warring urging yemen's parties to take steps to tackle the world's worst humanitarian crisis. the resolution calls on the yemen government and the rebels

to agree to a cease-fire around the keyport. more than 70% of yemen's food and supplies come through that port. ray dalio says years of low interest rates and quantitative easing have squeezed most of the returns out of assets in the united states. in an interview with bloomberg, he also said he is optimistic about prospects in china. >> i am not worried about the debt crisis in china or the debt situation in china. i believe it is going to be a very good place for long-term investing. mark: bridgewater is the world's largest hedge fund firm with about $100 billion in assets. the official in charge of the 2020 tokyo olympics says national government spending on the event is billions less than a recent government audit showed. earlier this month, the government said it was spending about $7 billion in estimated japan's total spending would

reach $25 billion to prepare for the games. the olympic ministry said today government spending was only $1.5 billion which included funding for a new national stadium. global news 24 hours a day on air and on twitter powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ caroline: this is "bloomberg markets: the close." i am caroline hyde in london. lisa: i am lisa abramowicz in bloomberg. caroline, what are you looking at? lower.e: the dow jones what is leading a slower is the

trade tensions between the u.s. and china after mike pence's speeches. with supplyg apple chain issues. there have been more reports that they are dialing back production on three iphone models. the dollar flat at the moment after housing sentiment came in worse than expected. the focus is on the fed. as the dollare, stays flat, the pound is creeping higher slightly. lisa: interesting to see tech is leading the way on the selloff. two-year yields are the haven. you are seeing the longest streak in two years since november of 2016. a huge rally after a lot of selling in this area. the euro is gaining against the

dollar. bitcoin is getting demolished today as people get worried about regulation. caroline: first time below $5,000 since october of 2017. time for a look at the big movers on the back of analyst recommendations. with a $51g at ubs price target. the analyst says shares have become less attractive. target.ice the analyst expecting sales to pick up in 2019. finally, credit suisse initiating coverage on airlines and negative on jetblue starting shares with an underperform. optimism for 2019 expansion is overdone. looking ton is

remove carlos ghosn as chairman after he was arrested in tokyo for breaching financial loss. the board will be discussing allegations at the meeting tomorrow. for more, let's bring in david wells. one thing i am still not clear on. what are the financial misdeeds that he did? >> you are not missing anything. it has been very unclear. they have not made specific charges. the c.e.o. of nissan was not clear in a long press conference this morning. the only thing that was clear is powerful he became too and abused his power. he did say there were many incidents dealing with company resources. he underreported publicly his income, at least that is what nissan is saying.

heis saying that misappropriated company resources. does that mean he used the company plane too much? we don't know. that was sort of the application. they have not put out exactly what he did. that was sort of the implication. they are saying it is serious. there is another side to this. we have not heard from carlos ghosn yet. there has been a power struggle most of this year because carlos ghosn has publicly wanted to merge renault and nissan. he has said publicly he does not see a need for it now. it seems the executives clashed on that. either carlos ghosn did something seriously wrong and he will be charged or he did something questionable and he is using this as a way to get him out of the way and maintain nissan's independence.

we just don't know because we have not seen the charges and we have not heard from carlos ghosn. caroline: carlos ghosn had already been stepping back from nissan. he was the architect of the three-way pact. he is the chairman of are no -- renault. >> renault has said they need time to review this. they don't know what happened. they were blindsided by this. the board will be looking at this and have to make a decision. they don't know exactly what he is accused of. apparently whatever he was doing at nissan was not being done at renault or they did not find it. they will have to do their own investigation to find out what is going on. also, where is carlos ghosn? is he in japanese prison or talking to them? all of that is unclear hours after this was announced. caroline: very unclear how long

the legal process might last. do you think this is a key concern for this company in terms of the tripartite relationship? who suffers the most? becausenk renault does he has the most hands-on management with renault. the other runs nissan independently. even if carlos ghosn were out, these companies are joined at the hip. electricmaking vehicles and autonomous vehicles together. that will not in tomorrow because they do not get along. the engineers still have a lot of work to do. that will stay. looking forward, is about who runs these. caroline: david welch breaking it down for us. thank you. coming up, letting the chips fall.

microsoft and nvidia are sliding. this is bloomberg. ♪

♪ caroline: this is "bloomberg markets: the close." i am caroline hyde in london. lisa: i am lisa abramowicz in new york. wall street trading desks will boost women's compensation this year to narrow the gap with men. the firm says payee quality is more in the forefront this year than ever. wall street is facing pressure to make their workplaces more attractive to women with better pay and faster promotions. has filed for bankruptcy in a deal that will keep stores open. it is not expect major closures or liquidation. shares of macron are falling.

reportedncial times" the chinese will deepen investigation into chipmakers. china says it has massive evidence of violations. that is your business flash update. king joins us from san francisco. talk about why we are seeing the fall of in chips. we knew about the investigation, right? >> we did. but this is adding to the concern investors have. accusations by macron against a chinese company are part of the d.o.j. case. it is seeking to curb the selected activity by chinese companies. the concern amongst investors is this will lead to a tit-for-tat beuation and macron will dragged deeper into the trade war.

reliable are chinese investigators versus a political maneuver? do you have any sense of that? >> i don't. if you look at it from a timing perspective, the chinese were investigating korean suppliers as well. that predates a lot of this trade war. alson's accusations predate. it looks as if both cases have been sucked into the broader rhetorical fight we are seeing. caroline: is all within the chipmakers in general. nvidia down 25%. >> nvidia has the problem of telling investors something was over and then three months later

saying it is not over yet. and then coming back three months later and saying it is still not over. the problem they are having is a credibility issue. in general, they were the stars of the show. over the last couple of years, so much money has come into that stock. now people are beginning to say if we are going to take money off the table, chipmakers will take it away from those who overshot what they are capable of delivering in earnings. lisa: give us a sense of whether the selloff in these chip stocks has been overblown given the fact chips will be in everything. they will probably be in your table. >> right. this is the debate raging now. companies have said and investors have believed they will be in everything. markets have while the --while the expanded. people wanted to believe that. now we are going old-school

talking about a cyclical market where we overbilled and then have a massive inventory correction and earnings come down. who knows whether we have hit the bottom or not. if you look at the ratios, they are well below even the dow at this point, single digits for some of them. that would indicate these companies will slide into losses. if that is not the case, maybe we have hit the bottom. lisa: thank you, ian king, joining us from san francisco. let's get you caught up on the market. take a look at the dow jones industrial average and s&p. 30-year yields unchanged. this is interesting given we have seen a decline in two-year yields any steepening of the curve. changing a little bit

with the dollar weakening versus other currency. i weakening across the board. from new york and london, this is bloomberg. ♪

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"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. ♪ "countdown to is the close." i am caroline hyde in london. romaine: i am romaine bostick. you were away for a few days and missed a lot. jon: when i left, they were selling tech. when i come back, they are selling tech. one thing that characterized october is how brutal the selloff in the momentum names

are. 8% and 10% decline for the sticks that were hot. romaine: you are looking for a narrative as to why they are falling and there is none. joe: the only narrative is everyone loves them. we had an ominous story at the end of october that pointed out despite the selling, people were overweight on momentum names. it looks like the great rebalancing is not over yet. caroline: of course, the key question is when apple will enter a bear market. we are moments away from the close. let's dig deeper into the equity action. romaine, what are you watching? romaine: i am watching the bear market with a lot of stocks. take a look at the dow jones industrial average. look at the names. we have at least six down 20% or more from their 52-week highs.

they are down into bear market territory from all-time highs. this includes goldman, ibm, caterpillar, dupont. additional 11 names in correction territory. neither one oft those is trading above the 52-week high. on the s&p 500, you have 200 stocks down more than 20% from their 52-week high. that includes apple, alphabet, momentum names that are now taking us down. are in correction or bear market more than the selloff in late winter or early spring this year. nasdaq areof the below the 200-day moving average. if you are looking are some reason as to why we are not

getting the bounce like earlier this year, that may be a reason why. lisa: i will take your bearishness and raise you one. let's look at colfax. it plunged the most in nine months, falling about 15% so far today. this came after they announced the $3.2 billion acquisition of an orthopedic device company. this shows how people are punishing stocks not only for general malaise but also for deals they think will not be worthwhile. colfax year to date has lost almost 40%. it has been a brutal year. it is not just the tech area. there are a bunch of potholes out here as well. abigail: take a look at apple carving out new lows on the day around slowly iphone demand similar to 2012 when the stock dropped nearly 20%. this happens every few years.

confidence moves away. what i would like to move toward is the chart in the terminal because the stock is breaking down. this is a shorter term chart before the report that suggested there could be weakness. we are looking at a new level of weakness. not only are we well below the 200-day moving average, right now apple is below last week's low. that is supported by the idea in may after a good quarter, typically these gaps tend to fill. it tells you investors got overexcited and over assessed the situation. not in truly oversold territory. it looks like it could be pulling a facebook going sharply lower. the facebook chart has broken down. this chart of apple is starting to break down significantly, too. that could be a big drag on the markets if it continues.

joe: pulling a facebook not what you want these days. in thee, let's bring asset reporter for bloomberg news. a lot of companies pulling a facebook now. >> ugly charts galore, you nailed it. it is not just apple. we are seeing it in amazon, alphabet. we are also seeing it across the board. the worst performing sectors are also consumer discretionary, tech, and communication services. any of the charts are brutal. caroline: how much was the spark by china were mike pence over the weekend? how much of this is underlying issues when it comes to concerns about valuations? >> would say it is a mix of both -- i would say it is a mix of both.

i was asking investors to tell me the cause. a lot of people go to the trade front saying vice president mike pence over the weekend did say the u.s. does not seem to be backing down soon. they want the concessions from china. at the same time, you're dealing with the apple news. if you look at valuations, considering the slide, tech companies look the cheapest in two years. however, it looks like investors still want more out of that. romaine: being cheap does not make it valuable. when you look at the price action today, you have so many names falling for seemingly no reason other than sentiment. have we reached the stage where the idea of a bounce is lost? >> i would not say it is completely lost. a lot of people are still talking about the santa claus rally, still saying we should

see a bounce at the end of the year because of the seasonality. it does not look that way. a lot of people said we would get a relief rally after the midterms. that lasted one day. a lot of people are still hopeful that after the g20 summit it could help stocks go higher. as we head into the ubs globale, the wealth management head of allocation. are you still thinking get out of high momentum tech names? >> it had been an overweight allocation for a number of years. evaluation story had become -- the evaluation story had become stretched. some of the selloff is more than we would have anticipated.

given where valuations are, they are more attractive. things that are more consumer related, you can see more weakness there. enterprise spending on the corporate side has good fundamentals. you have to become a stock picker rather than looking at tech as a blanket statement. salesforce.com down 9%. adobe is getting clobbered. i was starting to get to the point -- are we starting to get to the point where there is value here? the price action today suggests people are rebalancing their portfolio. going into a short holiday week, people do not want to take a lot of risk. some names become more compelling. right now, it is the markets overall. weaine: where below 19 --

are below 19 on the s&p. these are levels we have not seen since 2016, maybe earlier than that. >> the valuations are attractive. allocation.our now you get to the point where it is attractive. we knew going into the call we would get a few weeks of choppiness and volatility. i think it will hinge on the trade outcome. i view the mike pence comments as headline noise. i think the most important person is trump. most of what he has said is i want a deal. other people in his administration are acting as bad cops to his good cop. if there is progress, that will be positive for the markets. caroline: where are we sitting currently on volatility? >> i would say most investors

are expecting volatility to continue in corporate. many are saying this is probably the new regime we are in and we should expect it to stay close, four seconds to a and that is a really brutal finish. really, across the board. the dow down nearly 400 points and the nasdaq down 3% with the carnage in the tech momentum. romaine: about 388 s&p companies down. a huge chunk of the nasdaq down as well. joe: i'm looking at software and services down 4%. semiconductors down nearly 4%. pretty much just blood red across the board. caroline: it has been a down day. we've been seeing volumes at the moment maybe a little bit lower than they have been. this is a shortened week by holiday. we have to thank sarah ponczek.

jason of ubs is sticking with us. let's dig in a little more to the market perspective. , ion, before we get to jason want to dive deeper into the action from the markets. we thought what are you watching? i'm watching two-year yields. it has been the longest decline in two-year yields since november of 2016. this is a retracement of fed rate hiking expectations. this has been a huge driver of a lot of the action in markets. if you look at where people are putting their money, the two year yield dipping after that long, steady climb up. investors are going into cash. if you look at the $16 billion exchange traded funds, ishares, it has actually gotten the biggest daily inflow friday

night since march. definitely showing that people are flooding into cash, staying there, seeing these yields attractive where they are, and not going into longer dated debt. there is too much uncertainty. romaine: thank you, lisa. the talk has been about technology stocks and the leadership they had and the leadership they lost. when you look at what has happened with the nasdaq, we see tech companies selloff just over the last 2.5 months. the s&p technology sector as well as the nasdaq are still one of the better performing sectors, but when you think about the nasdaq 100, we are headed for our third straight monthly loss. this would be the worst year the nasdaq 100 has had since 2011, barring some sort of major rebound going into the last few weeks of the year. michael over at market field asset management had a note

where he talked about the ratio of gains between the nasdaq and the s&p 500 and how the nasdaq 100 is almost in a position where it is starting to trail or on the precipice of trailing the gains in the s&p 500. that could mark a turning point both in terms of sentiment as well as some of the price action heading into 2019. abigail? ateneo: let's take a look at this from the standpoint of a chart we looked at before. this is a one-year chart of the s&p 500. what we see is the sideways range. we now have the battle between the bulls and the bears. we had that big selloff. we then see these rebound rallies. the buyers stepped up and bought the index, sending it higher in the summer and then in september, the fears caused by,

not just trade war and technology, but the fed raising rates perhaps too quickly, has caused a steep decline. now it is acting as resistance. we also have this area of congestion, but because it is toward the top of this entire range, it perhaps is a bearish pause, suggesting we could see this chart do what so many other charts are doing, rolling over. it suggests there could be some more pain ahead for the s&p 500. joe: riveting chart. thank you, abigail. still with us, jason, ubs global weapon management, jason the fed. are we getting to a point where there is some real tension emerging between what the market is starting to price in with regard to 2019, and what the fed has indicated?

you saw last week, the market kind of fullback is rate expectations. it went to 65%. the number of hikes next year has been pulled back. i interpret that they are going to be a little more data dependent. think it is probably going to be a little bit on both sides. it may not materialize on the dot plots just yet. there's no real reason for them to stop at this point in time. ,aroline: with the housing data a hint of things to come? jason: i think the housing data is interesting. the way we look at the markets, for the past six weeks, it feels like it has been pricing in a lot of growth and slowdown. it has probably overshot on the downside. you saw the housing data this morning.

it was week. it also wasn't as expected. the home buildings were saying things are bad. if you look at the sector, they've traded ok. i kind of look at that as a microcosm for what has gone on. whether it is growth, trade, this is one of the reasons we upgraded our equity challenge. news.of bad things play out that way. it is already priced in. if things get better, you have more room to the upside. romaine: when you look at the u.s. economy, can we still have substantial growth, above the average we've been, with the housing market maybe isn't as healthy as it has been? jason: there is a lot of nuance to the story. you've seen weakness in some coastal regions. you've seen a lack of supply. we had a housing boom.

we haven't fully replenished the supply. you also have a move higher in rates. there is some rebalancing. i think we are going through that process right now. you always get a little concerned when you see those numbers. i think once we kind of go through this, it stabilizes, then it alters our generally positive outlook on the economy. joe: i'm reluctant to call it out performance, but it is marginal outperformance. only down 1.3%. is this a case where maybe we are reaching the end of the e.m. selling? around september when the u.s. equities had outperformed significantly, we were getting questions, why would we invest

abroad, and whenever you get that many questions, you think this is going to probably turn. the kind of outperformance we saw was 20% over six months. only a few times has that happened. back to thelly go beginning of october, e.m. has outperformed the nasdaq by about five percentage points. then you think about where we are on the cycle. maybe china is later in the cycle. they've already had their recession. the markets may be sniffing that out. i kind of take that as a constructive sign on the valuation story, but also what is going on in asia right now. caroline: jason, wrapped up with e.m. is the u.s. dollar. where do you see the u.s. dollar going? jason: more of a sideways movement.

it comes down to risk off events happening. if we get positive news on the trade front, if we get any further dovish type of comments, that could be dollar off. if there is any kind of greater stress, then you are probably going to see dollar strength. draho, ubsason global wealth management, thank you for joining us. that does it for the closing bell. "what'd you miss?" is next. we will be looking at the momentum players. this is bloomberg. ♪

caroline: live from london, i'm caroline hyde. romaine: i'm romaine bostick. joe: and i'm joe weisenthal. caroline: peers a quick check on the u.s. market. closed the day significantly lower. joe: the question is, "what'd you miss?" caroline: the nasdaq closes 3% lower. on weakness in tech weighs the market. bitcoin is at its lowest price in more than a year. leader tells labor us why his party would vote against the government's brexit deal. that exclusive interview coming up. momentum place in tech are taking a turn for the worse.

the once reliable names of apple, netflix, amazon, are now underperformers. let's bring in gina martin adams and bloomberg markets live editor michael regan. i want to start with you and the pummeling we see. is it a surprise to you that what goes up must come down? >> i don't think it is a surprise. it doesn't always by necessity need to come back down. stock prices over a long time generally go higher. you're just embroiled in a reset of expectations. we've been saying it for a couple months now. especially when it comes to tech stocks, some of these stocks were very high expectations baked into prices. the expectation was that these companies would continue to beat growth expectations. unfortunately we just experienced and earnings season that tells us otherwise.

investors have lost a lot of confidence. it is also not a surprise that the strongest leg of the market falls last. we've been through this pretty rough correction in october. well, buts didn't do the weaker sectors where the super cyclical sectors. -- the finalind of capitulation it seems for tech. romaine: during past selloffs, i feel like you can gauge more of the reasons and that helps you gauge maybe when the bottom might be. this time around, that seems harder. >> just looking at today, you can kind of suss out the reasons for a few areas. apple, there's a story in the "wall street journal" about cutting iphone productions. you are right. we had mike pence over the weekend talking about china. i look at some of the biggest movers today and there's not a

lot of news on them. they were these highflying momentum stocks. adobe was down 8% or 9%. sales force was down 9%. mungo dvd, i hadn't heard of them, but they are down double-digit. like sort of business focused tech as opposed to software, as opposed to the consumer angle. it feels a little bit like this crowded momentum trade is still unwinding to some degree. joe: that is what i was going to ask you about. i was throwing tickers into the terminal and i was really struck by the consistency. no matter what it was, spotify, netflix, adobe, salesforce, when you see that kind of action, does that tell you people are just hitting the cell button on everything? >> pretty much. there's not a lot of earnings

specific lines. it is a matter of rotation. investors are rotating and looking for opportunities. as they should in an earnings reset. these were the most expensive stocks in the index. once you miss those expectations, they get beaten down the most. some of them are getting beaten down by default. they are in a basket of securities related to a certain style. they are going to experience selling pressure in consolation with the rest of their friends. caroline: mike, you mentioned the "new york times" piece on apple. viewe sensationalizing the that the iphone orders are getting pulled back? is it right when you are seeing this sort of pullback that we should be highlighting it? >> "wall street journal" article, but yes. it happens a lot. almost every iphone cycle,

something like this happens. this is more severe than anything we've seen. apple down 20% is not something you see every year. that demandonfirms for iphones going forward is not as robust as people hoped. they are not going to break out there category revenue anymore. market,ook at the stock it is still about 1% for the year, maybe less. so, they are are all still putting in pretty strong years. it does go to speak of pulling that out. 2690 on s&p 500 today, below where a lot of strategists had said the s&p was going to end this year. what is the catalyst that would

get us back to some of those predictions? >> the only catalyst that i can see that would be tremendously positive would come from either some resolution on brexit or italian debt or some resolution on trade. the policy headlines could go a long way to providing some confidence. you also can't ignore seasonality. once you get through thanksgiving, you usually have a nice rally into december. we could have a seasonal event in which stocks recover from oversold positions. it doesn't necessarily have to have a trigger. it could just be oversold conditions. the end of earnings season should help. we should not have this constant drumbeat of negative guidance and negative revisions dragging on stocks. weird.ke, it is for the last several days, it

does feel like we've been in this vacuum. earnings season coming to an end. is there another event on the horizon, or is it just seasonal, technical, maybe some black friday stuff that people hope will change the narrative. >> i think it is a little bit of wouldtion that the fed probably cause a little bit of a rally. you look historically at the market, we got so spoiled in 2017. this market feels extremely volatile. was like 20vix before last year. the average market swing -- the swing we've seen from high to low is only about 13%. had a post on our blog talking about this. this would likely be the smallest swing from high to low

since 2005. it feels more dramatic than we have a right to believe it should be. >> i want to add something. since 2005. if you look backsomething to cor perspective. historically, there were 11 down years for stock. in this cycle, flat years are considered down years. we're looking at a flat year, very similar to a 2015 or 2011. we think, this is horrible for stocks. but it is all about perspective. this bull market has been so strong on such low volatility that a flat year seems like a bear market. caroline: gina martin adams, we thank you for your perspective, as well as mike regan. coming up tomorrow, a bloomberg exclusive. we speak with morgan stanley chair and ceo james gorman. this is bloomberg. ♪

joe: "what'd you miss?" atfinancial corporate debt 25% of gdp. companies haven't been investing into r productivity. bloomberg's molly smith joins us now. companies raising all this money, but what are they doing with it? >> they are using it to help shareholders, paying out stock,ds, buying back not putting it into growth in the u.s. economy. this is not the kind of stuff that bondholders like to see. it is going into the wallet of the shareholders. wheneverse is also true

you see companies that have started to cut the dividend. when you cut the dividend, bondholders are applauding that kind of move. especially in companies that are overleveraged. some analysts take that as a sign of commitment to deleveraging. caroline: is this ringing alarm bells? are things going to get much worse? >> this isn't anything new. what we are seeing right now, i think the statistics really speak to that. what is consistent with what we've been seeing. has largely been used for m&a and buyouts as well. generally, things that bondholders don't like to see. romaine: what is the outcome of this? if you have a long time where all this cash has been used to reward shareholders and not really buy back into the companies, into the economy themselves, when the ship start sailing, what does that mean for

the debt market as a whole? >> that is not positive for the economy as a whole. . the lower corporate tax rate was going to be used to put that money back into the economy, which hasn't come into fruition. we're seeing economists come out with lower forecasts. romaine: what was the reason for taking out this debt? what did the company say they were doing? >> a lot of it has been used for m&a, which we've seen has really been for corporate quality. we talk about the buildup of the market and how overleveraged a lot of that is. so much of that stems from mergers and acquisition activity. joe: if we were to see a real downturn, or at least unwillingness of the debt market to finance it, we might not see the growth, because not much of this has been used for capital

investment, things like that. >> right. when you are looking at, from a returns percentage as well, investment-grade debt has been one of the worst-performing asset classes this year. a lot of that is due to the rise in rates we've seen. we are seeing lower supply met with lower demand. these are investors -- activities that investors don't like to see. caroline: mollie smith, thank you for your insight. a quick check of the latest business flash headlines for you now. the head of investing at fidelity says they are in the midst of a $22 trillion shift in assets to women, in part because ofthe head divorce. according to kathleen mercy, fidelity is preparing for it by increasing diversity. mercy said the firm is trying to eliminate what she calls the confidence cap that women have in investing.

societe generale has agreed to pay $1.3 billion to settle a u.s. sanctions case. the bank executed more than $8 billion of outbound payments over a 10-year period. a former goldman sachs vice president who was fired while on maternity leave has filed a gender discrimination complaint. job because she took goldman's entire four-month paid family leave. she's seeking more than $1.5 million in damages. goldman says she was dismissed for strategic planning reasons. that is your business flash update. coming up, the crypto challenge. why bitcoin broke below $5,000 today. london, york and from this is bloomberg. ♪

withr: mark crumpton bloomberg first word news. democratic senators have filed a lawsuit challenging the appointment of matt whitaker as acting attorney general. they argued that the appointment violates the constitution because whitaker has not been confirmed by the senate. they are asking a judge to declare the appointment unconstitutional and prevent whitaker as serving as head of the two justice department. vladimir putin has gathered top military officials to respond that the u.s. would absolve a

compact.ar arms russia has denied reaching -- breaching the pact. president putin voiced hope that washington and moscow could reduce tensions spirit meantime, russian space officials praised their joint work saying that cooperation remains strong despite political attentions -- tensions. the head of nasa says there is trust. >> it has been a blessing that both of our governments have seen the wisdom and avoided getting us caught up in political things. they don't fully understand the value of space may be, but

somehow respect the value of space and let us work together. added i think that we have something precious here. the verbal battle over brexit continues. the u.k. labor leader says his party will try to stop britain from leaving the european union without an agreement. the brexit deal is rejected by parliament to he said in a meeting that the 2016 brexit vote was an act of protest against the political system that was not working for the people. >> to tackle the greatest challenges, we should not fear change, but embraces -- embrace it. instead, use it as a catalyst for economic transformation. that outdateded

banking has created a situation where 20% of britain's wealth is thehe hands of just 1% of population, making us one of the most unequal countries in the u.s. -- in the european union. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. anchor: cryptocurrencies resuming their -- bitcoin dropping below $5,000. there are some issues here surrounding regulatory action out of washington. here to talk about that is stephen. , these two the issue

penalties against the companies are not registering their icl three how much of a message is being sent not only to these two companies, but the rest of the crypto universe? >> i don't know if they are in the business of sending messages when it engages in enforcement activity or when it enters into cease and desist orders. time has mademe it clear that this could be really nifty technology and i think it is. about the ether you look ator if or eric fox orders

that came out friday, what they say is actually pretty common sense, which is just because it is newfangled technology, does not mean that these principles don't apply. sec issued a statement saying basically the same thing. onyou read the statement friday, it suggests there is a path. the message might be that we told you about the law. if you don't and you are not a complete fraud, maybe there is a way to make things right. perhaps that is a message we can take. to your point about the price of bitcoin, i'm not sure there is any connection between recent

sec activity and the price of cryptocurrency. the regulatory concern bitcoin -- obviously, were crypto etf coming to the market help spur rallies. do you think this latest ruling is going to put to bed ico's? we see them fall off a cliff. >> i got a call from someone who wanted to get advice from someone who wanted to do what is called an sto. they were calling from europe. i don't think that the interest

has gone away. , there was notion this notion that a few of us, there was a notion that you could raise money by selling something that would give access to the business you are building applyingay with not securities laws. i think the notion that you could use ico's is a way to raise capital, i think that for anybody with an ounce of common latter. a debt i don't think the model is completely gone. u.s.ten pointed out, the is not the only market in the world and security flaws are different elsewhere. i don't think we have seen the end of this. what will this look like? i'm not sure.

i would not write off the coin. it is very interesting technology. i wrote some notes down about prices. if you look at the bitcoin it went from $300 and i want to say it is about $4800 now. if you bought in at $19,000 and want to sell today, it is a huge loss. investment, some people have one a lot and some have lost. said the sec is not in the business of sending messages. do you believe there are a lot practicest year to falling into the same category? >> 95% of them.

coinmarketcap.com, there is a list. there are templates. the language is the same. 's are the same, they even have the same initial footnote. they have done this before and they go after folks. i don't know if you have invested. pali is a token called the token. anchor: got to get on that one. stephen, partner at anderson kill. thank you very much. ♪

♪ a quick check on the latest business flash headlines. -- uit trading wall street trading will boost women's -- the firm says pay quality is more the forefront than ever. leaders are facing pressure to make their workplace is more attractive to women. amazon is betting that americans will forget something for the thanksgiving dinner. that is why they are offering delivery from whole foods stores until 2:00 p.m. on tuesday in some cities. --gross retails online. that is a business flash update. anchor: i like that idea. anchor: you ready? anchor: i'm not ready, so i will

be going for the last minute delivery because i have done nothing to prepare. let's turn now to the world of marijuana and cannabis. we got a little bit of a public market going. now, it is trying to get some putting and regain more tension. now, the ceo of green brands. we have talked a lot about how the industry has gone. where do you stand with how your company is moving us to the next step or i can go into these stores and not feel like i'm doing something illicit?

>> since we last talked, we started trading. so far, we have been treated well. cannabist is not about brands, it is about customers. that is why we are in this market. right now, there are some decent examples. there is no such thing as a great experience. here we are creating businesses from scratch. if you are creating a business from scratch, why would you not take the best of the best and make it amazing? we are not comparing ourselves to other people and cannabis, we are comparing ourselves to lululemon. think that tells you we are a company moving past the stigma.

anchor: we don't have that much ,ata on recreational marijuana but based on what you're seeing early on, do you see people start to gravitate towards brands and products that they really know and like for our a bunchtill trying out of things with volatility? canada, the product is generic. it comes from the state. it does not really have any branding. produceia grows enough to see the world, enough cannabis for people to breathe apparently, but the brands are strong in california, however they are not strong elsewhere. the supply chain is constrained to the state. believe that it can

be grown in exactly the same way in nevada. brands, in terms of consumer products, i would say very early right now and i don't know how big that will get. the biggest brands now are tiny. wondering about the products from canada and the united states. you lead the international brands. i never really hear about that part of the world. outside ofthe expert north america. i know people are talking about germany and other races. when you are growing a business, you have to start from the core.

are you trying to go into the retail side as well? >> we are focused on retail. brick and mortar retail, but with brick-and-mortar comes the smartphone, emotion is in the store, functional, tactical. we definitely. consumers can order online and go order at the store. consumers in certain jurisdictions can have it delivered to their home. it is going the way we know everything else in retail. anchor: we thank you, this is bloomberg. ♪

anchor: a much warmer welcome, words.ing in a war of it is time now for asia ahead.

jinping?ext for xi reporter: he had a warm welcome at the apec summit. mike pence talking about the theserap that could clean asian countries. i found it really surprising. i knew that vice president pence had a hard-line rhetoric, but this time around, actually telling these companies to avoid been a lot ofs talk about this. course, they have disputes over the south china sea. it is fascinating how much this has had. thatey are getting hints perhaps the trade tensions are

not going to be easing anytime soon. to --er: they are trying it is interesting to see and after they took over the philippines, they veered away and now talking of china. manila hasgs in present xi jinping is becoming the first chinese leader to visit the country in 13 years and really interesting because you can see those islands. we have seen those disputes unfolding and even though this could undermine, the philippines claim going head and calling the u.s. to stop military drills. china is already in possession. there something

else in development over there? reporter: in brunei, but then you hear they have agreed to cooperate on oil and gas development in the south china sea. also, very interesting some of the rhetoric coming out from president xi jinping, saying he is very grateful that china is appreciative of supporting the policy. this whole aim of gaining friends in asia is not only against the u.s., but also or takingking friends friends away from taiwan to -- away from taiwan. do not miss out from more of her stories, tune into daybreak asia. now, time for a bloomberg exclusive. jeremy corbyn is pushing back on theresa may's next -- wrecks a deal. -- brexit deal.

>> we will keep our options open. we will voteis against it and if it comes up in its current form. >> on what conditions would you support a second referendum? >> the priority is the deal and it cannot command , then you ask yourself isn't it time to have an election so people can run this question mark-- run this question -- run this? relationship with close ties to europe. steelt back theresa may

-- deal? >> custom arrangement for several years and we have no say whatsoever and can only lead with permission. also, it doesn't deal with the but the lamb order, where will it go -- the order, where will it go? the rest of the u.k., does not meet those tests. reporter: what about those who back the deal? >> they are addressing parliamentary this evening. we do not believe this deal needs those tests. it is our duty to hold the

government accountable through it and i believe the party will vote against this deal. agree and forced the government to accept this deal. >> you said that time is running out. will you accept that if you don't, it will take you closer? >> now telling us there is not time. representing a failure of negotiation. this is the kind of arrangement we want. i believe in majority support. we have spent a lot of time talking to people. we're not in government come a

but we have made clear that we ofe not sent the equivalent 40 trade deals, none of which exist. we can cut wages and cut conditions. as if thist sounds could take us closer to no deal. would that be worth paying to see a general election? deal that demand a protects living standards. the eu has a whole history of saying nothing can be changed. anchor: that was jeremy corbyn speaking with anna. now, bank of england appears before the treasury committee to

discuss its report in germany's finances. numbershousing tomorrow.

♪ anchor: this is bloomberg technology. betweenp, a new report zuckerberg and sandberg. ago bitcoin a year 50 $20,000 mark. now, it is down to 4900. has its best days come and gone? xiaomi is relying on