mark: officials say a man who fatally shot his ex fiance monday night out tied a chicago hospital, before killing two people inside the building, was once kicked out of the city's firefighting a cap -- academy after threatening a female cadet. it included a police officer who police say had once been engaged to the shooter at the pharmaceutical assistant. it is not clear he took his on my floor was killed in exchange of fire with police. said thisyor emanuel just tears at the soul of the city, it is the face and consequence of evil.

officials say they have arrested 34 members of the caravan of migrants for minor offenses. police say the migrants were arrested on charges of drug possession, disturbing the peace, and resisting police. and that they will be deported to their home countries. tijuana passes mayor said the city is not comfortable with the caravan that began arriving last week. in brussels, the european union held an event marking the 70th anniversary of the universal declaration of human rights. against aautioned rising tide of divisiveness and nationalism threatening human rights across the globe. in a taped message, the secretary-general called the union rights declaration one of the most exceptional documents ever. these proclaim the shared vision of human progress. 1948, today, we're seeing

the dangers of fundamental rights and freedoms and rule of law. minorities,grants, these rising hate. we need our commitment to ensure all human rights for all people. mark: the u.n. commissioner for human rights warned that advances made in previous decades have stalled and are being pushed back. she also noted quoting hate directing migrants a minorities to generate and reinforce political support. the trump administration is preparing to add venezuela to the list of state sponsors of terrorism which includes only iran, north korea, sudan, and syria, and placing the us well on it could limit u.s. assistance and limit financial transactions. republican lawmakers have accused venezuela of rebels in colombia.

global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ scarlet: from bloomberg world headquarters in new york, this is bloomberg markets the close and i am scarlet fu. caroline: i'm in london. 30 minutes from the end of the trading day. a sea of red. check out the function gmm. markets acrosse the board in a state of selloff. we're seeing emerging markets as the dollar rallies in this selloff. it was a down day for the likes of greece and turkey. a lot of markets in there as

well p it when it comes to commodities, this is the eye of the storm right now. brent crude up, wti crude as well. we see them trading is the lowest in a year. that is hitting stocks and in particular, the energy market and the s&p 500. >> the brighter the red is, the deeper the loss is. thatook at brent, the fact they are so bright gives you a sense of the degree of selling in oil markets. you look at equity markets overall, the s&p 500 extending weighting of november games. -- gains. the only group doing a little better is semiconductors. you can see the etf tracks chip stocks now in the red as well off by .2%. outvix is elevated and it within 20.4. obviously not revisiting highs but still, it is higher now on the day.

crude is where we really put our focus. to keep ait is one close eye on when we look at energy and there has been a day where we see the usual what has gone up must come back down. we will digest it all as we head to the close. >> let's get you a quick check of the latest headlines. amazon reportedly bidding on the network that disney would that -- divest in its deal. that includes the yes network that broadcasts new york yankees game. the group and the yankees are bidding on the network. boeing is pushing back against criticism stemming from the fatal crash of the 737 jetliner in indonesia. there have been suggestions the company could have are alerted airlines to an anti-stall feature in the plane. boeing rejects the idea that they withheld information about it from customers. the company canceled a scheduled conference call with airlines about the aircraft or nasa is

going to -- the two companies on the space station. according to the washington post, this was prompted by the behavior of spacex founder elon musk, seen smoking marijuana on a podcast on the internet. spacex says it actively promotes work with safety. that is your business flash update. caroline: coming up, goldman cutting apple price target for third time this month. , is it finally experiencing iphone fatigue? that is up next and this is bloomberg. ♪

caroline: this is countdown to the close. as selloff continue among u.s. warks, the u.s. china trade threatened to take its toll on

the trade center. its own morning on small caps saying they will be in for more trouble as interest rates rise. here with more insight into the tobias isat is next, the chief u.s. equity strategist at citigroup with us on the phone. priority for you, the key risks facing the market at the moment, is it trade number one and fed number two? do you switch it around? >> there is a third one you left issues were these kind of almost evident back in september. some sentiment indicators were suggesting the markets got to frothy and investors were ignoring some of these issues. the fed and things like that clearly important. we probably will not get sucked into that until the december meeting as to what the fed is thinking about, particularly in 2019, but it is also earnings.

expectations for earnings growth were 12% on a consensus basis for 2018. it is now nine. we think the market has to reset to the moderate earnings expectations growth. trade, a lotd to of people are hoping something hope ist next week but not really a strategy. a good political campaign. >> yes. .ou mentioned readjusting how much are we seeing in terms of the veracity of the move down is tied to that versus the end of your tweaking and positioning of portfolios? some, it is too late and the fiscal year ended in october. overweightthink the that a lot of people had in the technology space, chasing the tape as the stocks were going

up, the stocks with broken on the charts and things like that and investors are trying to showe out how to properly their exposure. will they come roaring back in the next month or two, probably not. overweight inbly the broken momentum name spirit we have argued for a while that value was more interesting than growth. normally 15 years -- bond yields go up, that will happen. it will happen again because people will play the price momentum and that hurt them pretty bad more recently. >> are you looking at changing your closing target on the s&p 500? what would be the catalyst to lead us back to that level? is theink part of it different earnings environment. i wouldn't be changing on tv anyway. when itidn't change it was at 2630. the process is probably a lot

more detailed in terms of how we think about setting our targets 12 months in advance. i do not think it is analytics. think it is chasing the tape. what would get us there is a sense that the fed is getting closer to getting done, that the does not get really bad. most importantly, it is having a reset of those expectations and an understanding that we can grow from here and it is not the end of the cycle. let's put it in this context. the end of cycle could be because the fed kills it. it could be because we have a problem with trade. it could be a variety of issues. are we seeing credit being cut off for business, the answer is no. the survey came out last week showing easing financial conditions for the business community that suggest -- should

-- suggests growth for the nine months. not necessarily cycle which is what everyone is afraid of. >> a great perspective. thank you for joining us, chief u.s. equity strategy there. >> energy is leading down. apple is the bear market. emily chang, in a matter where you look in technology, all the big names are in the markets or the cusp of the bear market. >> scarlet, it looked like it .ould be a dark day it continues to be very bad day for apple and with apple, a lot of other companies go down with it. you had beent talking about. the main news came out of goldman sachs, another downgrade talking about how they believe

apple miscalculated the price on its cheapest iphone saying at that price, it is too expensive for the market they are trying to reach. that on top of production cuts we had heard about is not good news for apple. there is a question of whether apple could continue to maintain numbers, continue to maintain --ling as many iphone iphones as they have, especially if they do not on this current quarter. there are analysts who believe investors are not getting the apple store that apple will maintain the broad-based of iphones, if it continues to grow that even in the single-digit, it is still a huge opportunity. >> give us your expertise. this is not that rare that we hear these sort of sounding of maybe it bells saying,

is not as you would expect. maybe it is not so bad. >> you are right. we hear this every year. apple reports guidance for the fourth quarter. it takes time for investors to jet -- to digest that. the early indicators are often not very good indicators. holiday atcloser, the end of it looks pretty good pair that is what he is talking about. digesting the supplier issues is much more of an art than a science. some investors are better than i at -- at giant that -- digesting that than others. huge challenges in emerging markets. a lot of challenges in india where they have not been able to crack it at all. >> great, emily chang. thank you. if you think it is getting rough for the nasdaq, check out this

side of the atlantic. insignificancef off by 10% year to date. it has been brutal, much more than we have seen in the nasdaq here from new york and london, this is bloomberg. ♪

caroline: this is count down to the close. scarlet: joe weisenthal is back in new york. the band is all back together. joe: what is up? really striking with respect to energy, a continuing collapse in oil. it had all kinds of ramifications for other parts of the market. obviously, energy stocks themselves were brutal. you start to look for the delete through to credit. that was already anxiety with

people wondering about the overall market volatility, spreading to credit spreads as it were. when you see a collapse in energy and you wonder how many of the companies rely on the ofd market, they have a feel the market feeding on itself. >> i look at the different sectors p are you break it up by two dozen, the best performer here, it is singular. ship companies are only up by .2%. utilities are holding up better but they are still down. on the downside, tech, -- hardware, energy, transportation, even some names like foods companies, down by at least 3%. give me a percent of the declines. we're seeing it in currencies as

well. dollar rallies, we see it across the board. we got a little ray of green in china on the short end. across the board, it is a risk off sentiment. clearly, concerns here. i'm looking at the markets and just had a breaking headline. we had talked about retailers so much today, walgreens, on the pharmaceutical side of things, we understand they are in early other.ith each this is the wall street journal reporting at the moment, early talks with stakes in each other. medical members were looking in the u.s. and puerto rico. the unitedalk in states in terms of where you can buy some products and goods. is this in some way a defensive mood -- move against amazon? >> an interesting want to watch. having someares

losses. still very deep in the red. we are moments away from the closed her let's go deeper into the action with lisa. lisa? lisa: the shares hit a new all-time low of the bank. it has to do with europe's biggest money laundering scandal in deutsche bank. that is being investigated though it is unclear whether they did anything wrong at all. people do not want the risk. shares falling five point 6%. at capital bonds. they would get wiped out or decline in value. certainche bank reached capital levels, you can see they were plunging near their lowest levels since 2017. definitely there were people getting concerned yet again about deutsche bank. during risk off mike -- markets and some news items -- news items, fetch

>> another source of pain today, not quite to the extent of deutsche bank. session, it's worst day since it was reported that disappointing quarterly report reducing the holiday guide. here is the bear market we now have the apple down 22.4% since early october. what i would like to point out is the month of november, much of the declines coming right now at its pace for the worst monthly performance since september of 2008. that is the selling pressure we are seeing for apple now. it is showing in the chart. have an uptrend channel out of the cycle when investors were very nervous about iphone demand and declining revenue growth. we see a beautiful trend with the buyers very much in control.

after the quarterly report down toward the bottom channel, below the 200 day moving average, and on this bear market, we have out, it looksng very likely to close in on a gap made earlier this year around the 170 level and possibly even a gap made of january of last year closer to 120. the chart is really breaking down. investors could buy shares of apple fast enough. now investors seem to not be able to sell shares fast enough. a shift in sentiment. >> thanks. another stock its shares of beer, adding to a 3.6% decline yesterday, three point 4% today. earnings report comes before the bell tomorrow. a tug-of-war here between analysts and investors over the company's fortunes. they depend heavily on u.s. farmers. if you look at some latest what wewide data for

call agricultural implements, basically a component of the industrial production numbers that specifically focus on machinery, it is up significantly on the year and 13% in the most recent quarter. analyst estimates for the is tracking a 10 percentage points higher than what the actual industry data is showing us. there is some concern there could be a big miss tomorrow if the high estimates analysts are ofecting are sort of out whack with what we're seeing in some of the lately -- slightly lower industrywide estimates. this stock hit its all-time high in jay wright. it is down 19% since then. back in february, into a bear market shortly after. there is a lot of activity in the stock today, in a market move of 7% tomorrow, up and down depending on what the company reports. we will toss it back to scarlet for some breaking news.

scarlet: thank you. we have some breaking details. teri valerio is now the temporary deputy ceo. coo andjerry was the has apparently won the backing of the french government. this are -- confirms that he will be the temporary deputy ceo. he cannot comment on evidence that has been gathered against carlos and the french carmaker has asked nissan, its partner, to provide all information in its possession. nevertheless, the nissan mitsubishi alliance does remain a group priority. more details on the state of the company management, it will be cherry ball air serving as .emporary deputy ceo caroline: fascinating international story that keeps on developing. let's return to the markets and retail lows.

the s&p 500 retail index fallen to its lowest in seven months as concerns about margins of targets playing the sector. more, how much should be worried about the effect of margins of retailers? does it seem to be linked to normal -- labor, depending on what company, in some cases like you don't need to revamp the business, and yield the cost associated with three organizing ont, it would weigh down profitability and years to come. it seems that even if you look at the index level, estimates have not meaningfully come in. in the consumer discretionary space, the four-week revision has turned negative for tech. highflying areas of the market are experiencing weakness on the fundamentals side. you have to also wonder if they are kind of marking to market

the equities, and just kind of overlaying that on earnings going forward. people might cut earnings forecasts based on what the stock is doing? i couldn't suggest that as a general rule but maybe once or twice. >> when you look specifically, how does it fit into the broader themes we have seen in the innings season this quarter terms of what investors are keen to punish? oni think the miss same-store sales is a big one in terms of what investors have not been willing to forgive. revenue misses have been punished especially in tech, but i think the inability to grow time when everyone is expecting would suggest to investors you do not have the pricing power as companies get more discerning going forward. >> you are sticking with us.

have 26 to go before the close. that went by quickly. a lot of breaking news today. u.s. equities deep in the red. about thistic talked bear market for a lot of the big tech names. you are seeing nasa caught put p a little bit better because of semiconductors. the other momentum names, it feels like a victory if they are only down 2% in this market. i was looking at right at the center of the selling. only down 2% and it feels like an up day given the overall vibe in the recent action. scarlet: that's a good points. there is no sign of an update in any of the energy stocks. upon a time, falling oil prices was seen as a good thing. things have changed. i'm looking at the decline advance line. caroline?

caroline: this has been another key day in terms of the overall selloff. let's bring in michael who is the chief investment strategist. when you look at the driving force behind the selloff, we heard from joe talking about energy leaching into credit and into across equities. how worried are you about the energy selloff but the moment? michael: i think the energy selloff is a combination of two real things. unexpected oversupply. lot are expecting a decline in surprise -- supply. we saw oversupply from a number of actors and now we see more concerns about slowing growth. a lot of the asset sales, whether it be energy or broader as a resultreally of economy and earnings slowing. caroline: in the meantime, let's title little deeper into the

action with our market reporters. lisa, what are you watching? lisa: i'm watching credit and how it seems to be not leading stocks but picking up the lead where stocks had been accelerating in their cell of earlier. today you can see credit default swaps increasing. if you take a look at the relative value between high-yield bond yields and the s&p 500 earnings yield, a comparable measure, you can see investors are earning the most extra yield to own junk bonds versus the s&p 500 going back to 2016. this is how the risk reward has shifted. a possible silver lining that money went into high yields this week. got more than $700 billion of inflows. that follows a couple days of slows. the flipside is perhaps credit is leading stocks suggesting

there are bigger declines going forward for them. abigail: here is something surprising. one bright spot on the day where we have seen major actor selloff, the thank stocks trade -- faang trade. down 3/10 of 1% relative to the markets leading. we have trade holding relatively well in reversing big losses on the day. facebook and alphabet are higher. is the big shift in sentiment. it is the highlights of the selling action. not just this month but also in october. the thank trade up 2% -- fang trade up. they are bailing out. brave by the dippers. startsre some any berry out there, apple, all of these different indexes and individual

equities rolling over. this might be the ugliest of all of the shorts. the reason is because this is the big engine for the market with the fanged trade climbing climbing.ade we recently had an air pocket of going below the 200 day moving average. on today's selling action, earlier today, even though it reversed the losses well below the next line, it suggests we could see the faang trade move all the way down to the 2017 lows. should that happen, that would be bearish. romaine: i hate to pile on to but there are stocks in the nasdaq 100 and the bear market territory. the s&p 500 is down slowing with correction levels again.

about 200 of the stock indexes are actually 20% below their peak down in their market levels. amazon leading the levels in terms of market cap. there are seven names in the s&p shed market cap from their peak names. we talk point out, when about what will happen going forward, bloomberg monitors strategists and price targets for the s&p 500 for the year and the median estimate still said that 3000. about eightequire 13% run-up in the s&p 500 by your and over the next five and a half weeks to meet the target. scarlet: thank you so much. i want to pick up one where they left off because still with us is michael of global advisors and luke kawa. michael, you heard from them talking about the tech names and the faang names. they have been the one leading the decline.

does that mean the sector will perhaps be the first to buy them out as well? could we get a tell? other leading indicators for the broader market? michael: technology has become the leader in the -- leading indicator. investors are repricing the stocks to reflect a slower point,rate, but to some they have become attractive from a valuation standpoint. 99 mediaot like the telecom bubble. there is strong revenue growth and valuations are not nearly as stressed back then -- as stressed as back then. the faang and broader tech becomes more interesting to investors. it is a question to whether we have got there or not but we are searching to find it. out insee a wash technology, that to be a sign of bottoming. caroline: the technology selloff has been tied up with concerns

of u.s. and china trade relations. are we all waiting on the g20? you have any ultimatum bacon or are you deciding this trait tension is here to stay? michael: i think there was a change in sentiment in early october with vice president pence's speech at the hudson institute. there was much more anti-china rhetoric than expected. most folks are expecting some type of deal to occur between the u.s. and china. i think that has become a lot less certain. my own view is that both the u.s. and china are incentive to reach some type of trade deal. the chinese economy is slowing and the u.s. economy is slowing. the second-quarter gdp was more than 4%. atlanta gdp figures now suggest we will be at 2.5% in the fourth quarter. we are headed into an election year. the trump administration cannot afford a slowdown. this will bring the two sides together to reach a deal sooner

rather than later. luke, going back to the tech stocks, one of the things that struck me at the end of october was reporting from bloomberg and another was that for a the selling, people were heavily exposed to attack. ech.o t what do we look for to suggest investors have flattened out exposure and aren't crowded into these? luke: i think some signs of capitulation bottom is what people are looking for. ge, weanother example, saw a lot of block trades and institutions were getting out. things like that might help, but again, these are the big market weights. think about the divergence trade. essentially, tech in the u.s. was one of the big selling points on why the u.s. would continue to outperform the rest of the world.

that has switched to a headwind. i want to bring back michael once again. how does this -- how do you fold this all in to how the fed looks at everything when they meet in december? it will be an interesting meeting. they will have no shortage of topics. michael: what is interesting about the fed is that some might argue a have already made a policy mistake. if you think about it, inflation is slowing. economy wase growing at 4% earlier this year. you had energy prices pushing $80. you started to have wage inflation, unemployment low, and we had inflation of 2.4% depending on what measure you're using. now, energy prices are in a bear market and you are trying to see economic data. autos,larly housing and two areas where you see rising rates show up first are rolling over a little bit. the real question is, had the fed already gone too far? we will see if this impacts

expectations going forward about rate hikes. for me, i expect the fed will not raise rates aggressively in 2019 as many are feel for all of -- are fearful of. michael joining us from a very dark boston already. and luke, thank you both so much. we have more retail earnings. this time from a specialty retailer, foot locker. scherzer higher by as much as a .5% -- 8.5%. the epa is beating estimates. dollar per share is also exceeding expectations.

gross margin higher than anticipated too which is why the stock is building on its advance. that doesn't for the closing bell and for me. romaine bostic is stepping in the next four "what'd you miss?" where we look at the tumble in bitcoin. another asset class in the red. this is bloomberg. ♪ ♪

caroline: live from london, i am caroline hyde. here's how the u.s. markets .losed the day, in the red

volumes elevated on the holiday shortened week. joe: the question is "what'd you miss?" caroline: target misses the mark, the big retailer is narrowing margins and slowing sales and drags down the retail sector. suffers its third worst selloff in history as regulatory concerns remain in the forefront. and it's cure legal loophole allows some lenders to turn the court system into a debt collection machine against borrowers across country. the bloomberg reporting ahead. salese: retail earnings to impress. we have heard from most of the retail sector and there is a decision by investors as to the to be to the seems downside. here to talk more about that is matt boyle who joins us. the first thing when we talk

about target and look at target and their earnings, this morning, what was the main take away? the same-store sales growth looks good. matt: they were never going to match the second-quarter blowup, but the sales were fine. profit margins really had people worried. dropped an entire percentage point due to increased digital fulfillment costs. the cost of getting online orders from the warehouse is to you. inventories were also way up. they are ordering more toys because they want to take advantage of the demise of toys "r" us so target is making a huge bet on toys. in 500 stores, they have added 500 square feet to all of them. they are making a big bet on that with toys. romaine: is the story of retail right now and the christmas season generally like all of these companies are going to kill themselves to deliver to the consumer gee prices, lots of sales, -- matt: what we saw over the

past weeks where that term bi -- target and amazon reduce the minimum purchase to get free shipping. that is risky to do. usually if you artery cell phone case costing 10 bucks, it could cost nearly $10 to get it to you. that is why retailers insist you by $35 or more to get the free two day shipping. this year, some of those rules are going at the window. we are going to see it not today, but we will see it when they report fourth-quarter margins in february. caroline: earnings, peak christmas, and the peaks keep going. there was some silver linings for the second parable sales looking good. staple is saying they gained share in all five of its areas. is this a volatile point in the retail is catching the heart and of it? matt: this is a volatile point.

expectations are high. there were bright spots, target bright spots with sales. best buy was one they have not talked about today. they had a good report even though their margins were perhaps not to everyone's liking, but they were still up today. one of the few bright spots. when we talk about some of the other retailers, particular the apparel companies, cap earnings just came out and they are a little different than target and some of the others, but what is the main challenge for an apparel retail? matt: that's a fine thing you bring up. retailers refuse to speak about tariffs, it is like baltimore to -- voldemort. they say we won't really know and they are talking to their supplier and refuse to go on record and don't want to talk about what it might do to them in general. the tariffs that hit already,

best buy said it is hitting a marginal impact -- having a marginal impact. this is coming around the corner and the retailers, i'm sure they are figuring out how they will deal with it but have not said much publicly. caroline: one to watch when it comes to retailers and future earnings. after hours.g matt boyle, thank you for your insights. amazon is affecting the retail sector and let's stick to them. upload 22looking to regional sports networks for the 21st century fox merger. include blackstone, sinclair, and amazon. for more, let's bring in paul sweeney for bloomberg intelligence. is mist by, everyone amazon's interest in sports.

they are going into football, soccer as you call it in the u.s.. why are they building up so much in life sports? paul: because they can afford to. they are spreading their bets across programming across the board. they will spend $5 billion amazon prime this year. one major area they have not been, i would argue, is a sports. to the extent they wanted to step up and take a look at some of these regional sports networks that disney and fox are going to be divesting, that is a big step for them. this is an asset we have valued between 15 and $20 billion. this would be a sizable stake on the part of amazon and amazon prime business. joe: is that really going to pay off? -- romaine: is that really going to pay off? usually paying whatever you can force forces the winning back, but it seems not the case anymore. paul: sports is still the best programming on television because from an advertising

perspective, advertisers value that programming. distributors still value it, but not as much as they used to. there aren't as many subscribers willing to pay. if you are big media companies like amazon, google, facebook, it is one of the areas in programming and content that still demands a large audience. it is an area they have not played into date. netflix has no sports programming and decided to stay out of it, but this would change the game a little bit. joe: some of these other giants have gaveled into sports, not in a massive way, but twitter streams football games and facebook has soccer rights somewhere. is it the fact that amazon is interested in these areas meaning these experiments are yielding fruit? experiments are

yielding fruit? paul: i think in some sports, there have been experiments and dipping their toe in some of these things. i think they have, to this point, have the subscription models to support the rights for these. have a big base and the really committed to the sport. today, the streaming services have not been. the regional sports network business is business that has been -- investors are concerned about our subscribers still willing to pay for local sports? very popular here in new york, but other parts of the country have not been good business -- country, it has not been good business. caroline: paul sweeney their telling us how does - there -- there telling us how it is. this is bloomberg. ♪

joe: "what'd you miss?" crypto currencies extending their slide to one point -- slide at one point today. the biggest drop since february. let's bring in crisper nitschke chris.is bernanke --= a mirror image from a year from now. what do you say when people ask what is going on? >> first, there is broader risk throughout the markets. your riskiest assets tend to get sold off most in a risk off environment which is definitely happening with crypto. etherium has-- been going for a broader boom and we can think of it as a

cyclical deleveraging. the third thing i would say, bitcoin was forming at 6000 43 or four months and there is a lot of turbulence around a child of bitcoin called bitcoin cash. that has perturbed the market and broken the technical indicator. now we are searching for a new bottom. romaine: when you look at these technical indicators, what is the main metric you use to value on where bitcoin should be? that is a hard thing to sort of price. chris: it is very hard. it is particularly hard with this asset class because it is so new. most ethic classes, we have standard models we use and we look over the inputs. within crypto, we are creating models as we speak because the asset class has only been around for 10 years. ideas put ideas out around models and so have others but there is no consensus model that the market can put information into and say this is where your assumptions are

different from where my assumptions are. everyone is disagreeing over the models and assumptions to begin with. joe: explain the deleveraging you say we are seeing. this year,nd incredible explosion of ico's. what is the reverse look like -- does the reverse would like? chris: if you think about how it ico goes about, maybe i create an asset of 100% and sold 20% of it for ether. i then created 80% of assets apply. and use that extra 80% invested into another asset, more than i did the same, you have this nature where as you start to sell, the true fundamental value created collapse as quickly as you would see in deleveraging environments. caroline: that your fundamental value for crypto in general needs to be built upon usable applications when it comes to bash these businesses raise

money to build product. at the moment, it remains a speculative. i will point to we move away from speculative assets and move into products? true: i think there are uses and fundamentals that we can point you within the crypto markets right now. bitcoin continuing to process billion dollars daily using block chain around $1 million per minute which is punching above discover's weight. this continues on despite what is going on with the market. if you look at what etherium did, there was -- it raised a lot of money. if you look at something like something more exotic, it is a credit facility having nine figures and loans. i think we have to look at the areas where there is traction. , greate: chris burniske

to get your perspective on all things crypto. from london, this is bloomberg. ♪ .

mark: i mark richt and with bloomberg's first word news. i mark richt and with bloomberg's first word news. the u.s. has added companies to an international blacklist on shipping oil to syria in violation of sanctions. this provides revenue for the islamic revolutionary guard corps and hamas and hezbollah. >> the united states and its continued efforts will not allow these dealings. iran will not be allowed to explore the financial system to hide revenue streams the use to fund terrorist activity.

list placement on the prohibits american entities or citizens from dealing with the companies. bloomberg has large president trump is on track to submit written responses to robert mueller perhaps as early as today. the president told reporters he and not his lawyers wrote the responses. it is unclear if mueller will be happy with the responses or try to interview the president in person. hospital intoercy cargo is in mourning after a deadly shooting last night that left an emergency room doctor, pharmaceutical assistance, and a chicago police officer dead. the violence began outside the building where police say the gunman shot his ex fiance. the police officer and pharmaceutical assistant were killed inside the gunman. killedknown if he himself or died in an exchange of fire with responding

officers. >> this is a tragedy. it is a senseless loss of life. we have three, young, vibrant people with bright careers. i will go back to what i said last night, it's officer who but died senselessly courageously. authorities say the kicked out ofen the firefighting academy after threatening a female to death. angela merkel is stepping up pressure on the u.k. government to back the right to deal suggesting a european union summit would fall apart if theresa may reopened the accord. speaking to reporters today, the chancellor said it is time to sign the agreement and she is unwilling to renegotiate.

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. caroline: in new york loophole is filling its lending machine crushing small businesses across america. reporters have investigated the problem in the latest issue of businessweek writing rather than breaking legs, these lenders have co-opted the court system and turned it into a debt collection machine. government officials, a few are getting rich doing it. zach helped cowrite the story. this all revolves around cash advance companies. notably a little-known thing thing called the

concession in court. predatory lenders making loans to small business across the united states. of getting these loans, they are asking borrowers to sign a paper that allows them at any point in the future, the lender can go to court and get a judgment without a trial or hearing and take the money right out of the bank account of the borrower. thatis a powerful tool exists in new york state, but is used across the entire country to enforce that. joe: does the lender have to demonstrate any sort of failure to pay? is there some bar they have to clear before they can start taking money out of borrower's bank accounts? zach: they submit a statement saying so but there is no hearing, no chance for the other side to weigh in. because they have the paper signed by the bar were they give

up all of the rights, that is all they need. they can claim a default and there is no evidence as to if one exists. joe: one of the companies -- romaine: what other companies doing this? there are pretty big companies in the space, right? zach: the company's filing the most confessions of judgment are within the alternative business lending space. they are on the high risk side. companies like yellowstone capital, which is founded by a guy who was on probation from a stock scam when he founded the company. 25% of all of the seo jays filed across the coys filed across the country. you see goldman sachs doing stuff like this. caroline: you say in your store this has mostly been happening in the last couple of years. about $1.5 billion has been gained by this. it's a fascinating read and you're really highlight one particular couple that have been

butte in this way and they got kicked to thought this was about to happen -- tipped off that this was about to happen. who is doing the tipping off? zach: this is such a common practice that there are dead advisory firms that go around and keep track of the court database and call up people who are in the process of getting their bank account cleaned out and warn them about it hoping that will lead to being hired as a debt advisor later on. in the case we wrote about with the duncans outside of tampa, florida, they thought the caller sounded fishy so they did not listen to his advice. joe: why does the law allow for this? zach: i think because new york state law has never -- a lot of states have banned confessions of judgment -- joe: why are they a thing that was created in the first place?

you mention other states have it in others don't. zach: they go back to the beginning of the banking ages, then the middle quarantine merchants. in the merchant of venice, there is a confessional judgment so it goes way back. it was a way to avoid the fuss of trial if you had a debt that both parties agree to. the problem is that asking for the judgment to be signed before there is a case and let alone a default. caroline: read your legal documents. that's a great expose. , thank you for discussing it. get the latest issue in businessweek. amazon, could the massive tech giant be hindering capitalism? we explore that, next. this is bloomberg. ♪ is bloomberg. ♪

romaine: another selloff in the stock market. bear markets, corrections everywhere you look. it seems everything is down. unlike some of the past selloffs, we have yet to see a bounce. here to talk more about that is john authors. i feel like in the past selloffs, there was more of a rotation in and out of things. it does not appear the money sold is going anywhere. john: no. [laughter] john: in a way. what you do see that you did not see in the last big correction in february, which is now clear cut, is that there is a rotation within the stock markets. the momentum trade has really hit the buffers this time in a way that it did not do in february. momentum sailed through.

we have been talking all day about the faangs and particularly apple. that is a big component of this. i would suggest if you are trying to ask what is creating think there isdo something approaching an old-fashioned growth scare going on today. if you look at inflation breaking even, they are too well influenced by oil prices, but it is interesting that tenure inflation breakeven to have gone below 2%. that's for the first time all year to date. notion, theou some belief that there really is an international slowdown happening here. then, obviously, the retail numbers had a lot of hope invested in the traditional

retailers. i had a lot of making fun of -- lot making fun of this etf. people are worried about the u.s. consumer, so i think there is a genuine old-fashioned growth scare beginning to take hold. to changeis it enough view in terms of the pace of rate hikes. is that something the market will anticipate? john: it already is. that is explaining why you haven't had more of a move in bond yields than we have had of late. it also helps to explain why you see a big shift in expectations on the fed funds future markets. you have a number of excuses

should the fed want to pause, not to raise rates as aggressively as they currently are saying they will do. am dubious about some of the arguments going into this. i think the fed speak we heard last week was nowhere near the attempt to sell a different direction to tell the market that the reaction function was differently. signso you have telltale of what capitulation looks for? john: not really, no. that the apple is done for the year, i'm not sure it -- juste definition because it is a drop doesn't mean it's in the bear market in

anyway. i do not think we are in capitulation. worrying, the is kind of thing you have to express very carefully given what has happened the following year, looking for parallels, the year that is the most similar to this one is 2007. we all happen to know what happened the year after that. i'm not saying this because this -atr is similar to 2007 - this point in the year, we have had a double top for the year and some concerns gather pace at different points through the year. am i saying therefore next year will be full on 2008? not necessarily. are saying some conditions obviously of the same species of look quite a lot like that. joe: we will have you back next year to see if that is what turns out. john authors, thank you so much.

its capital like no other company in the world amid its latest expansion into new york and virginia. further solidifying their influence on our economy. the next guest says the power of large companies is a hindrance to capitalism. jonathan is the author of a new book on capitalism and joins us now. the ability of a company like amazon to shape policy and get subsidies, is that a threat to capitalism that these gigantic companies can shape policy to their favor? >> i think that capitalism is the opposite of to capitalism. companies seek to be rewarded orh either tax cuts subsidies. that is the opposite of capitalism. joe: is the economy less

competitive than it used to be? >> very much. 75% of industries are much more concentrated than they were -- more concentrated than the were years ago. increasing concentration has been doubling and many industries go on from many players down to four and even two. romaine: has capitalism ever sense thatble in the people on the ground like you and me are sharing at the same pace as others had before? jonathan: absolutely. you can look at a quality levels and the enforcement of antitrust and industrial concentration levels. thee were much lower in 1950's, 60's, 70's. the change came through with the rate merger guidelines. a merger wave in each decade getting bigger and bigger, we are beyond what we saw in terms of ureters --

mergers. caroline: how long does this remain because we already have regulatory eyes in the u.s.. in the eu, we see focus coming google, looking at fines, looking at how to control these monopolies. well that end? jonathan: people are calling the ground swell a tech lash. it is also happening in other industries as well. charge,s leading the but it is certainly happening in yhe united states and man senators want to break up tech giants and change the way guidelines are and passing the sherman act. i think it is overdue. joe: the conventional wisdom is that there is a lot of anxiety and criticism of big companies, particularly big tech companies in d.c., but no one will get acte act together -- their together. are people too sanguine about whether it is

legislative level or regulatory level that major changes will, and the power of these companies will reach a limit where policy action has to be a response to it? jonathan: there certainly is a revolving door in do-nothing institutions currently. on the other side, things are changing. romaine: is there a way for these changes to happen without a major disruption to social order? i feel like most of the backlash is going to things that are rather extreme. jonathan: one of the things are wrote the book is that i believe in capitalism and competition, and as people who care about markets get involved, we will probably have procompetitive reforms and if we do not, it will happen by people who do not believe in markets which will be much worse. caroline: there is the argument , thereen you gain scales

is economy to scale and a lot of your argument is based on -- jonathan: the evidence is overwhelming. reducing the number of competitors raises prices. the book has tons of footnotes and studies and i want for your listeners without. when it comes to pharmaceuticals, beer, you name it, there are higher prices. broadly, increases and concentration are horrific for prices, wages, economic dynamism. it is just bad news. wages continues to be something economists would characterize as a "puzzle. with unemployment as low as it is, how much would you attribute the laborntially

buying power of the companies? causal explanations don't tend to work well so having china join the wto, that thatportant for one area has been understudied and not discussed well is the increasing corporate power. while you see a steady decline in unionization, you see an increase on the corporate side. when you put those two men together, you have an imbalance of corporations and workers and the loss of bargaining power. for your thank you timely discussion. jonathan, great to have you on. it is time now for a bloomberg exclusive. on the day or saw steep selloff in u.s. equities, bloomberg spoke with morgan stanley chair. they discussed weather today is reminiscent of the tech selloff decades ago. >> it is not the.com bubble --

the doc com bubble burst of 2000. this is a market correction we're going through right now. this as well as in the wheelhouse of what we can handle. >> is it a healthy shake the? this contraction-- though. this contraction? jonathan: first thing, we are in a tightening process around the world. three and probably for rate increases this year. that has consequences. the ability of monetary authorities has limitations on what they can do. we have a lot of political turmoil. it's not surprising the markets have been anxious. it's not surprising you are seeing some correction against the backdrop within certain sections. the thing stocks, incredible run-up in valuation -- the faang stocks, incredible run-up in

valuation this year. and ire's a lot of debate guess the volatilities we see over a number of the things you just itemize. the sustainability of u.s. growth for example, the rate increases, the magnitude of rate increases, the implications of the standoff that the undertakingon was with china for example, is there any consistency around that debate as far as what we hear from clients? >> i think the most important thing to take away is there is a lot going on. every morning you get up right now and there is a strong news flow from overnight. you have brexit, political risk, protectionism, anti-immigration. >> it is a much longer list. >> before you get to china and

the middle east, the sections in russia, the war in syria, before , it is ao north korea lot for investors to absorb. when investors are confronted with a backdrop of an the one hand, strong economic fundamentals, and on the other hand, tightening, with the --porate credit quotas tightening, the corporate credit quotas fall. what.s markets do win the deal with uncertainty in the short-term, sometimes they get wrong, and the long-term the market is always right. caroline: that was our exclusive interview with james gorman. breaking news for you. we are confirming bloomberg's early reporting that donald trump's legal team has submitted written responses to questions from robert mueller. it was thought it would be as

early as today, but he has been given -- but it has been given in writing. ons is years of negotiations how trump would respond to questions from the special counsel. we understand we have to work out whether these written questions and answers would be enough rather than a wide range interview which is exactly what robert mueller requested a year ago. romaine: now to age ahead, chinese stocks falling the most in the month as the tech route it's a fragile market. let's bring in cherry and. seems a good -- shery anhn. it seems like the life in the markets has come to a halt. shery: we saw this rebound of more than 5% in the month of november up until friday. this is coming after the longest losing streak and 36 years. yesterday, all three indexes

lost more than 3%. tack leading the decline. the chinese tax under underperformed as you can see by this chart on the bloomberg library. we have had mixed earnings reports coming out from chinese tech just this morning. we had a social e-commerce sites reporting and they announced a fourfold increase in quarterly loss. so that story continues similar to the u.s.. those chinese tech stocks were extraordinarily hot during the. of volatility in 2016-2017. shery: i was in hong kong when tencent was rallying. my colleagues would talk about you have to get into 10 sent. we can't get into one single name as reporters, but i was

hearing that all the time and that can crushing down. we have for example j.d..com reporting lower-than-expected revenue. a lot of these companies say this is because of future growth that they are making all of these investments and saying because they were cutting back or boosting market spending. interestingly, in europe, we have seen european tax underperformed. similarly, we see an underperformance in china. to seeh are we likly in chinese stabilization? shery: if you take a look under the hood of the shanghai composite, bloomberg shows you 70% of the stocks listed on the shanghai composite are trading above their 50 day moving average. 11% above the 200 a moving average. a lot of people speculating there would be more stimulus coming so still a little optimistic. caroline: the hopes for policy,

don't miss ""bloomberg daybreak: asia" caroline: that's all for "what'd you miss?". joe: have a great evening. this is bloomberg. ♪ his is bloomberg. ♪

emily: this is "bloomberg technology" in the next hour, volatility remains the main headline with apple leading the way. where we stand in the markets now, we break down tech's role in the slump. paid $750 million to fund elon musk's solar factory but it looks more like an empty walmart with