week. it will be more earnings are dependent on trade and indian, the equity markets trade on earning and if you don't have that, you will have to share it on eps next year. inthere is the closing bell you can see indexes close in the green. the nasdaq up three quarters of 1%. we had a comeback them again around 11:00 a.m. and whether you talk about technical levels it wasor whether developments in the u.k. that may have prompted a surge, tech remains in favor. byit was really galvanized what was happening. once again, the key vote being delayed. nevertheless, they have decided

to run with the lows that hit on the s&p 500. course, the news of the summoning of the u.s. ambassador in china, the move against apple, all kinds of things to put people on nerves about that relationship continuing to deteriorate. anchor: key for the market to be digesting. kayla, what were you watching? reporter: i'm taking a look at the vix in dispute index. we talk about the vix and the volatility we have been seeing. you can see on the full-screen, a little bit elevated. we got up to a 23, but that is notnecessarily mean -- does necessarily mean downside risk on the market. that is what this measures. 250 and is from 100 relatively low level at 114, so even though it feels like the market is a little more jittery,

traders and investors not seeing any to standard deviation or .ownside risk to be less that is really interesting. the markets may not be moving lower, even though we are seeing jitters today. chart: let's take another for the long-term basis. often pointed out, you probably have not seen it. it is followed by panic selling and then greedy buying. let's see what it looked like back in august. you see the yellow spiking above 50. the s&p 500 dropping, some others dropping back in 2016 and even earlier this year, we had that huge spike higher and panic selling earlier this year that led to volatility.

take a look at the vix in yellow. not exceptionally high levels, but this area may be setting it up for a spikes in which what we saw earlier this year. aheadlling made be just -- maybe just ahead. anchor: 10 to that point, we are seeing people go back to bonds. it may have been the high we have seen and explain why investors are going back to longer dated safe bonds. u.s. aggregateng index and it had it -- its biggest week since april last week. etf that $10 billion tracks seven to 10 year itssuries and it had biggest inflow last week since february, so even though the bond trade has maintained this year, people are going back and

saying perhaps yields down, pricing up, we are going back to the u.s. bonds. anchor: thank you so much. .till with us is alicia levine before the closing bell, you're saying that the fed in its thisng next week could get into the year rally going. what would powell say that would give investors the reason to go by? -- buy. onso that they are not automatically going come of that they are going to wait and see how data comes in. let's also point out that the probability of the fed rate hike had gone up dramatically, so there is a sector of the market that believes -- -- that could pass? i think the rate hikes will be pushed out for next year. emily has a chart

showing debates. it is not elevated and has jumped a lot recently, but not where we have seen in other intense bouts of selling. what you look for? you said it makes sense for investors to have cash. what would be the thing? >> the first thing i would look for is the high, junky data stocks. when you have real stipulation , the stuffs a bottom that everyone hates is the first to move. as long as the vix is under 18, you could have a rally. >> what does everyone hate the most right now? is it the homebuilders? >> finance hills. everybody hates financials. that has been the terrible trade

of this year and if they work, it is safe to go back in the water. is it great, what is it that -- great -- rate? what has alienated people? >> the first is the yield curve, we are down. that is the first thing people are loathing, but there is also a section of the market that is looking for the end of the cycle and all the data that points to worsening data, second derivative problems. the change is going to affect the banks because the economy needs the financials. anchor: today, we had jpmorgan and bank of america signaling a recession and on the flipside, jpmorgan saying you are selling too hard.

>> we think the data is pretty good, but the market is looking for signs that it is coming. we have a 10 year bull market, tenure recovery. people are looking for the signs that it is coming, so every data point is going to have the market sell off. anchor: most of the data is pretty backwards looking. what are the pieces of data you would look to to be leading indicators? >> [indiscernible] with oil prices down, you said see -- you should see less. 4% of that has come from the energy complex as oil prices were rising and increased. you not only kill earnings, but you also kill throughout the

entire economy. anchor: i know we will talk about this with our next guest, but one thing that is curious this year is that even while the s&p was holding up, the rest was getting killed. when we saw the selloff in october, november it was joining the rest of the world. does that mean the pain has already been felt elsewhere and that the relative opportunities greater there? sells off next year, it is very hard for me to believe that em is safe. however, on a relative basis, i think it will outperform and so if there is any softening of the fed's stance next week, i think em is the trade. anchor: how contingent is that call on the fed not making an error? >> it is very contingent on that because it is to the u.s.

dollar. it even a pushing off a rate weaker u.s.ve a dollar, that should ignite the emerging market trade. anchor: how much are you worried about the brexit chaos going across the atlantic because that did seem to lead to a version, but then took it that shook it off. >> there is brexit, france, italy, the german auto sector. i could go on. -- the talked about how soft patch is not just a soft patch in the problem for brexit is not just the u.k., but also what will happen in the eu and to the extent there is uncertainty, it will weigh in on the excited -- the entire sector. anchor: how does mario draghi address this? he is not going to say that there are any changes or projected rate hikes next year. we believe that there will not

be any ecb rate hikes in september of next year. we think it will push out to the or -- if not 2020 and we think there will be some projection of slower growth in europe. it seems obvious. anchor: the old can being kicked. anchor: thank you so much. that does it for the closing bell. next, we will be talking to bruce lent it -- one of the 50 people who defined global business in 2015. this is bloomberg.

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anchor: headquarters in new york, i'm caroline hyde. anchor: here's a look at where we traded today. it was a volatile day and we ended up in the green. anchor: the question is, what miss?ss? -- what'd you growth became the first to hit $10 million in market value. he joins us this hour. hitching a ride to public markets, uber and lift filing ipos. the race for the ridesharing company's ahead. anchor: most of the world's biggest socks are in bear market

territory and to some -- according to some economists, the chance of a 2019 recession has increased. joining us now to talk about that. should i be worried? when i look at the data, you do see some signs that there could potentially be a recession and some signs say the opposite. >> there has been the rest of the world. you look at the mci world. market,the development so does not capture the pain we've had in emerging markets and it shows there is a lot of pain. is this a retracing of risk or does this have to do with the economic that drop? -- backdrop? anchor: so, what is the answer? >> there is a good note today

saying given levels of the isn and the u.s. stocks, it seems they are bracing for a recession. city on the other hand took a more cautious note. this is not necessarily matter to us, but a lot of recession 33%ls are flashing 30% to in the year ahead and whenever 40%, we always have a recession within 18 months. years. anchor: looking back to the chart that you have been talking getting mixedalso messages when it comes to jpmorgan saying we are likely to see a recession in 2019 and another overpricing it at the

moment. here peopleyou talking about this? -- hear people talking about this? is peopleng i hear fearing the end of expansion and we are getting more upside in equities does not seem as likely, so the earnings estimates that arginine -- that are getting trend -- anchor: i want to go back to the data because when you look at some of the data. if we were three or four years into this come up with the market reaction to some of this data the as severe? -- bs severe? -- be as severe? >> i think so.

worse than today, but kind of the same theme. constituents below that bear market territory. you see a 2010, 2011 move and then a 2016 move. we've had this episode through different parts of expansion. startk every time, you thinking this is the one that into -- that ends it. --the data is not that bad. the data does not screen major slowdowns, so from the fed expect -- the fed perspective, how do they navigate? >> essentially, what i think the latest fed communication does is it shows it is receptive to the market. the markets kind of never

so wet in -- bought in, have to see this being realized. the data doesd, not say it is going down the tubes in a hurry, but -- hey, a good chunk of the committee and to more hikes, so why not based on that? base on that? in,market is already priced so that is not realized. anchor: we thank you. a quick check of the latest business flash headlines. verizon says thousands of employees have accepted a buyout. arizon announced reorganization optimizing growth

opportunities. factories in the u.s. are posting job openings like never before. the labor department says that is a record dating back to the year 2000. [inaudible] buy a stake in the company. theel abroad is one of largest distribution systems. coming up, playing the time. theresa may delaying the critical vote on a brexit deal. we will have details next on bloomberg -- we will have details next. this is bloomberg.

anchor: theresa may announced today that a parliamentary brexit deal vote scheduled for today -- for tomorrow has been delayed. >> while there has been brought support, on one issue there remains widespread concern. as a result, if we went and held the boat the deal would be rejected by a significant margin. the voteherefore defer tomorrow and not proceed to divide the house at this time. anchor: here to talk about what jonathan of king's college in london. professor, thank you for your kind.

the fact she is going off to see concerns is -- seek assurances, you think there will be enough to get for a second vote? >> i would say very unlikely at this point. [indiscernible] islandand in particular -- ireland said is -- ireland has made it clear it is not up for negotiation. everyone will do their best, but that does not change the legal position and without changing the legal position, it seems unlikely she can get this deal through parliament in its we appear to so have reached a dead in --

dead-end. whenr: there was a moment she said they parliament has to and whether or not it wants to have a brexit that is not a hard brexit. it is a door being opened to a second referendum? opened to a being second referendum? still somee difficult hurdles to overcome to to itsecond referendum would need a new prime minister in new government. we would need to address the questionof what the would be for a second referendum, but it is looking like the only way possible for a way out.

majority for any particular approach. decide the only choice out is to give the horse back to the british people. i'm wondering, what do we know about contingency plans that the government has for the parts of brexit that it can control like import issues? >> i think the government is making contingency plans, but as you said there are things the government can control and they can't. for example, they are worried about medicine. onhink the assumption is that thing, the government has made plans and the worst fears of some people will not materialize, but the government control what the other

countries are obliged under law to impose at ports, so the likelihood of significant economic disruption is quite large and even before we get to that point, we will face the anticipation of the risks of a no deal brexit. we had some pretty weak figures today. i suspect november and december will look worse. anchor: what is most likely to happen? -- the short answer is nobody knows, but i think it see theresa to may's approach survived. i think it is likely one in which parliament takes back control, a softer brexit or

second referendum. you, professor of economics at king's college in london. anchor: time now for a look at what is trending. close toey are recuperating their initial investments. they have recovered billions of dollars who profited, about 70% of the approved claims. most only get 5% to 30%. in another story, bloomberg.com reporting of an art gallery show in miami beach. work selling for tens of millions of dollars. the sculpture caught the attention of wilbur ross.

from bloomberg new york, this is bloomberg.

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anchor: i'm mark crumpton with bloomberg first word news. emmanuel macron is promising all means will be used to restore calm after protests that have shaken the nation. this evening, he addressed france for the first time since protests around the country turned to writing. he described what as anger in the nation among members of the public. no anger justifies attacking police or looting stores, saying both threaten france's liberty. the european union's top court

has ruled that britain's can britain,s mind over strengthening the hopes of people who want to stay in the eu, that the process can be reversed. the court ruled that when a country has notified its intent to leave, that member state is free to revoke unilaterally that notification. >> [indiscernible] of article 50. we have an agreement on the table which was endorsed by the european council on the 25th of november and this is the best and only deal possible. we will not renegotiate. our position has not changed and we are concerned that the united kingdom is leaving on the 29th of march 2019. 2016 tobritain voted in leave the 28th nation bloc and ,nvoke article 50 of the treaty

triggering a two-year exit process. a group of legislators had asked the court of justice to rule on whether the u.k. can pull out on its own. theite opposition from united states and a few other nations, nearly 85% of member states agreed on a sweeping, yet nonbinding accord to ensure safe, orderly and humane migration. antonio guterres said that 80% of the migrants living in the world have done so in a safe and orderly way. >> we cannot forget the tragedies that we witness every day in the deserts, the sea, everywhere people trying to have inetter life for themselves smugglers that harm

their life. 60,000 migrants have perished on the way since the beginning of the century. anchor: president of the saysnational red cross they have a right to set migration policies or should not increase suffering. signed aco's governor deal today to overhaul the u.s. territories tax law. it is an attempt to attract health investment and workers and some business owners in the midst of a 12 year recession. the island is still struggling to recover after hurricane maria . oficials say nearly 80% those in puerto rico will benefit from the measures. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

i'm mark crumpton. this is bloomberg. leadership,r his canopy growth became the first publicly traded cannabis -- -- publicpany cannabis company. he wants to become google of the cannabis industry. thanks for joining us. part of what people -- what got people excited for your country and we have seen others -- alcohol, other consumer brands tried to enter the cannabis industry. how much does this concern you? >> i think what concerns me more is the little companies by themselves and they slowly die.

-- i think in the time we have been on this interview, 11 more people started a marijuana company. i think this will make winners or losers quicker. we are doing the right thing to do -- to be a dominant company. that youou mentioned be by google. what does that mean? >> i trust google. we are a tech company that gross cannabis. it.re governed not to lose from day one, we could tell you were every gram is in

production. we then start running systems and then making a consistent product because you don't want to walk into a cannabis story word you say how strong is it today? and soct uniformity everything we are doing, we are trying to push the boundaries and we use everything digital. a hundred percent of the time we don't need paper. on a global basis, we run a business where you take away aws, we disappear. you take what paper, you don't own us. anchor: i want to understand how -- first built your most moat. is it about brand loyalty, what is it? >> cannabis plants have been around forever. i think you can go back about

5000 years. it is about extracting the ingredients. say, how do you get them out of the plant and how do you remix them? beverage that doesn't make you drowsy or make you feel -- that makes you feel upbeat and nondrowsy. be running a to cynical trial. we're all going to be older longer, which means you will be --we are doing our clinical trials or how to make people sleep. you wake up at 3:00 in the morning, what should i do? we are running a clinical trial on how to cause you to stay

asleep and if we can get the answer we want, i would think dominant places like ambien would say oh no. the recreational market has opened in canada, what can you say about the affinity people have for your brand specifically? when you and 90 years of probation -- they buy what is in the store. the brand part is starting to come back. it looks like we are in demand, but brands are still kind of fake. if you put your name on cannabis, the cannabis may not be differentiated. if i take out the ingredients, that is where the brands go. anchor: when do we get to that stage? right now and you try to search , it is kindnnabis

of a hodgepodge of things. a lot of things look sketchy. at least some of my age, it could be intimidating. >> when the federal government and state government say it is ok and they sanction stores where you would go today, a trusted shopping pattern. anchor when yo walk into the store, people have been educated . that is what you are starting to see in canada. people walk in, they interact with somebody, they go home and enjoy it and come back. the brand becomes the store the product inre the store becomes the brand. all of a sudden, the brands of trust locations. storelk into the apple and you don't know what you want, but you know it is the sort you want to be in. i think that is what will happen

with this, but it happens very rapidly. anchor: come back soon and tell us how it goes. up, the ride-hailing ipo race is on. this is bloomberg.

anchor: [inaudible] may have been first in line, but now uber it is doing it to -- uber is doing it to. us. is emily chang joining

ly -- looks like uber does too. >> it is absolutely fascinating that both of these companies, which are fierce competitors that managed to file at the same week, so i think there's something to that. this is a race to the public market and the thinking is that whoever gets there first, might be the initial appetite. both of these companies are money-losing companies. uber is a lot bigger which means it is losing a lot more money, but as it stands, now that we know uber has filed to go public as well, that apparently moves the timeline for them. the ceo says they were planning to go public the second half of next year and now sources telling us it could be closer to march or april. anchor: is your view between the relationship and the timing of

these files -- filings particularly in tech? >> absolutely. we believe this has to do with the volatility we have been seeing. if there is a longer lasting downturn, these companies want to beat that. we don't know how long this volatility will continue. sort of long-term phenomenon, but we do know the numbers and while they are making a lot of money, they are a lot of money. uber lost $1 billion in the fourth -- the third quarter. i was talking to someone and he said the most recent quarter should scare people. publicer what, the market should be skeptical about the uber and lyft. to economics do not appear

be good yet and there is no guarantee they ever will be. the big question remains as well these companies hold up to investor scrutiny? anchor: for a company like uber going public at a late stage, i wonder if that could work against it as well? >> that is an interesting point. many companies have waited much longer in good market conditions. for snap, it did not work out well and the potential valuations that were floated, bankers have told this company they have -- they could fetch up to 120 billion -- $120 billion. they say the company is investing heavily in things like , scooters andkes

in markets like the middle east and india, so they are investing a lot of money and putting a big bet on future growth. we're not sure if that growth will be there. if you look at the ridesharing businesses the last couple of quarters have slowed. the ipo has a name and timely am a project liberty. is this about making those within the company finally earned cash? >> uber comes up with provocative codenames. ,hey had one with the name hell so we were fascinated that this one was not called heaven. i think this first to the companies -- the employees that have worked for years and not have liquidity -- have not had liquidity. that said, uber has done some

secondary options -- offerings and freed up a number of employees to sell their shares to stop rank. they are right that this means a windfall for a lot of employees. anchor: interesting that this happens on the day that something has a part of the telephone business. at india'shakeup central bank. that is next on asia ahead. this is bloomberg.

anchor: a quick check on the latest business flash headlines.

nutrisystem named $1.3 billion in stock. it provides health and fitness programs. if you have not got your invitation by now, you're probably out of luck. india is preparing for what could be one of the most expensive weddings ever. the weeklong extravaganza is expected to cost a cool $100 million. the guest list includes beyonce, othery clinton and billionaires. anchor: i was going to ask if you got an invitation. whatr: they compared it to princess diana and princes charles wedding would have been like some 30 years ago and it was going to be more than that.

they are having it in the father's home which is a 27 story palace. who has a 27 story palace? is to: at least it billionaire families keeping it together and not spreading the wealth around. apparently, they are doing a lot for the city. they will beating 5000 meals per day, so there is positive coming out of it. a shocking exit from the reserve bank of india, another round of uncertainty. for a key india races elect oriel test. we have been talking about the reserve bank of india and just like that, governor out. he is leaving

because of personal reasons, but we saw that brewing for the longest time. we saw the deputy governor come out and they really talked about the importance back in october and finally, we have the governor leaving. this coming less than a week after the r.b.i. cap interest rates unchanged and ahead of a board meeting on friday. this chart on the bloomberg showing inflation. we can finally see that inflation has fallen below the r.b.i. target of 4% and what this will bring to the markets of course is the key question. anchor: a lot of this had to do with lending and different -- how with regards to much they needed to be involved in the market. anchor: you guys were talking

about the billionaires in india, maybe they can spread the wealth and this would not have happened. i think this is a key background because patel came out and he waged a war against weak lenders . the government did not want to see that, especially with a reelection next year and a state election this week and we have already seen from exit polls that his party may not be doing that well. anchor: we were expecting volatility because of that election. the fallout from this was really quite something. years.e most in four following thensex in two months and the rupee the most gain in years. all of this just putting into

doubt and dependents of the central bank and investor very -- investors very worried that the next steps they will take. anchor: there is a spectrum of central banks of how independent they are and how much credit ability they have accurate tell us about the r.b.i. and the stature it has. >> we knew before patel came , we had seen independence of the central banks play out. that helped investors concerns over the market in india. three years after that took place and after the power was handed over to patel, he is now resigning. now, analysts are saying going into the next year, the key will be who is the next goldilocks because they need to have high

credentials when fighting inflation, but at the same time able to reassure investors they are independent. right now, the expectation is for a reaction when the markets open this evening. anchor: we have any idea who will replace him permanently? heard anyhave not names yet, but they will come out in the next few weeks. anchor: watching that. for more on these stories, don't miss daybreak asia. i will be watching for producer prices tomorrow. and --speaks at a forum in frankfurt. anchor: have a good evening. this is bloomberg.

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emily: i'm emily chang. this is "bloomberg technology." qualcomm strikes back. the chipmaker wins a battle in court to ban the sale of some iphones in china. plus, it turns out uber and lyft have a file to go public. and disrupting the $445 billion beauty market. a ceo will sh d