for, signs of capitulation. i think we finally started to see that today. i do not know where the vix is going now but he got near 30 p are not quite as high as we have seen in the past with other things in the stock market but we have seen it. you look at the call ratio up near 2.0. you see the volume really took off. there is an expiration but that usually comes, the big jump in volume comes on the friday not on a thursday. we saw the advanced decline. the advanced decline was 35-1, negative. those are extremes that usually signally short-term bottom. i think we are getting that capitulation. >> you mentioned the vix got above 30. requested is notable we are seeing the volatility on thursday. what does commented on this a few times over the last several weeks.

the 10th of the selling has been, it has never felt panicky. selling. orderly some of these times like the vix picking up or the extreme divergence of the advanced decliners, maybe starting to feel panicky. caroline: the word capitulation coming in. into thee deeper market action with mike kicking things off. >> one of the interesting things about the market action, despite this strong risk off sentiment seen in stocks, treasuries have not caught that haven bid. earlier in the day, the two-year bond was selling off more than the 10 year. that brought up the issue of the flattening you'll curve once again. if you look at the chart, 10 -- what is interesting is the 10 basis point level. it ended up closing above the

low number. today looks to be no different. we got a little more than nine basis points, and the curve steepen the little bit from that level. a support level like that is like dribbling a basketball on a glass floor. the longer you dribble it, the more you have to worry about it breaking. this will be a level to watch going forward. especially with all of the concerns going along with that inverted yield curve when the spread goes below zero. how about you? context let's put the into the fourth quarter. we have strong selling action today, but it is dwarfed by what we had on the quarter. what i would really like to point out, into the fourth quarter, basically the first recorders of the year, we had solid gains for the major access. however, we are a piece of the worst fourth quarter. all of macro uncertainty finish ranking corporate profit for

2019 but we are now looking at these declines, the nasdaq is flirting with the bear market. -- russell 2000 and route tout transfers remain in a bear market. the technical suggest we may have more selling to go. romaine: while you guys were talking about the volatility earlier, taking a look at the timeones, for the eighth this month, we had a swing of more than 500 points throughout the entreaty high today intraday -- entry day high to the entry day -- entry day high to the entry day low. this is just one illustration of the increasing politician -- volatility. and s&p wase dow 50% higher than what we normally see on average.

scarlet? scarlet: let's bring back our matt and sarah ponczek. matt, i want to bring you in your on the possibility of a government shutdown. off,ts usually shrug it but they know something will get resolved. what's different this time the cause people to look at it with a glass half-empty point of view? >> it added another layer of uncertainty into the marketplace. the old saying is that the markets hate uncertainty. it is true. theseorning, we have hacking stories and issues with will raise concerns about what would happen with this trade war. we will make this more uncertain to the trade issue. yesterday, when fed chair powell about he was talking being quite hawkish.

yesterday he was both. more uncertainty there. we don't know what is going on in brexit or with italy. joe: there are somebody different stories. what matt was just saying, this is similar to what we saw last week as well when we saw more headlines on the mueller front and what was happening there. beginning of the year, markets kept shrugging this off. what is different as you have so many uncertainties that when you pile this on, especially one of the uncertainties is global growth and the potential for a slowdown. in that case, anything can tip you off. caroline: thank you both.

cigna, we will go to the ceo because they completed their $64 million acquisition of express scripts today. ed is standing by. >> that's right. david, let's kick off as caroline said the deal has crossed the line, and billions of dollars is a big deal. when i think of the two bank businesses, what is putting them together make a better company? >> we think about it as a way of broadening our health rent -- health footprint. equally as important, they typically contribute to your ability to deliver high-quality care by closing gaps in care, or not by managing incorrectly. it is now attending way to broaden our portfolio services to further improve affordability

and choice for consumers, and to strategically position our company going forward. about the growth opportunities. you have forecasted any ps in the next three years. how do you get from where you are today to that. david: cigna has a track record of delivering outstanding topline and bottom-line shareholder returns. about 475 percent total shareholder return over the last nine years. we do that by a disciplined growth strategy. combination, we will be able to accelerate at further and harvest some of the synergies by the combination. we committed to about $600 million for shareholders, and significant affordability improvement for our customers and clients. lastly, we will be able to deleverage the franchise over the last months. that will increase our service

responsibilities. all will result in a compound of growth rate over the next three years, which is outstanding. ed: talk to us about the growth you will steve -- will receive in terms of market share. walgreens is looking at potentially doing with humana. how do you become a leader in the space? david: we have a track record of great growth and performing, phenomenal medical cost trend. we have had the lowest rate of growth over the last -- years. you design solutions and service programs around the individual, and secondly, we are open architected. we don't own the delivery system assets, we partner with them. we support them more consequently -- comprehensively. partnering is what drives our

corporation, and the relentless focus on into beta and services yielded a phenomenal growth platform over the next nine years and we are looking to build the next chapter of that. ed: open architecture, when i think of that i think of tech. and i think of tech in health care i think of amazon. they are coming into the space. to do you build a moat protect against a company like amazon? think about open architecture, you're correct to think about a technology -- technologically, but add the dimension of choice. adding choice whether they want to access care digitally or physically. if it is physically, it is in a retail setting. if it is urgent care, is it in a positions -- it is in a physician'sfice -- office.

we think of driving value delivery. i don't think in many industries you can build a moat's uni-differentiation -- moat. you need differentiation. as a results to amazon, we see them as potential future valuers for sheer to delivery. we think a more modern approach to running a company in a fast-moving pace is to think about how can you create sheer value for the benefits of your customers and clients, retain that for your shareholders because you have to provide a return, and driver relentless innovation so that open architect and partner orientation as a thinking about building partnerships and building more value at a more rapid pace for the benefit of our customers and partners. ed: why did cigna decide not to get into owning physical assets but doing it in a seamless and

nonphysical way? back, in any step business, there are a variety of strategies that have the potential of winning. what is most important is making deliberate choices on what you will do. equally as important as what you are not willing to do. if you look at it to the consumer's eyes, in the u.s., consumers are increasingly telling us that they expect services to come to them with the level of modality or convenience increasingly through digital or service capabilities, and they are willing to travel to a venue if they have to or for a preferred experience. increasingly, digitally and technologically, we can bring additional individuals services through multiple modalities. we feel it is more a choice base open architecture to not have a capital intensive brick-and-mortar model, but rather to have a open architect

-- an open architect model. -- a varietyrantee of strategies. we have a track record of delivering phenomenal results for our customers, partners, and shareholders. ed: one factor that plays into the successor difficulties of a company is the regulatory environment. we are seeing some rolling backs of obama era health care policies, but we have not seen the full-scale replace. and where environment do you see it going under this administration? david: we operate in a regulatory industry. we operate in a variety of models around the world. regulations will continue to protect theable and consumer as well as to ensure, in their own way, ample choice. an environment of transparency, alignment, and choice. those tenants are on strategy to

just about any regulation. for example, in the united states, in our commercial marketplace today, 85% of all the employees -- employers we serve our served through a self-funded arrangement. that helps us drive shared innovation together. a second advance -- example is from medicare advantage. the majority of our medicare investors are served by value-based relationships where we share data, incentives, collaborate on kerry sources like nurses, health coaches, behavioral professionals, for the benefit of consumers. we will continue to be regulated. , we are a well-run company -- regulated. we are a well-run company. we believe we are well-positioned for a developing regulatory environment. market as ite

looks today toward volatility and the recent moves we have seen. are there any regrets about doing a deal just looking at where we are today? david: absolutely not. it's about long-term value creation. cigna is a corporation, one of -- two founding and innding entities was founded 1865. ofre the track record sustained growth and we returned approximately 470% or so shareholder return. this combination positions us for another long, meaningful track record of value creation. first and foremost for our individual patients, clients, and governmental partners. as a result, for the benefit of our shareholders. we are excited about building that next step about you. i like that we have an

opportunity in our stock price for the benefit of our shareholders to provide them a phenomenal return in 2018. ed: a few years ago, i covered another deal cigna was involved in with anthem. the deal did not go through ultimately. is this a better deal? are there any regrets about not having done that deal when the opportunity was there? david: that deal was not a deal that could be completed. twohat point in time, at that time.ce thosevernment concluded two horizontal deals would not be approved. they were deals that could not get funded. from a regulatory, doj standpoint. ons deal has demonstrated march 8 and completed on december 12, it is the deal that could get done and clear the department of justice without any exceptions from the standpoint.

it is viewed as one that is consumer friendly and value creating for the marketplace. we are excited to move that forward, especially in an era where pharmaceutical costs have grown to 25% of the cost equation. gets mission critical to the care, quality, and coordination for the benefit of individuals. we cannot be more excited about this deal and day. ed: thank you so much, david cordani, for the time. scarlet: we should mention that cigna shares are down 7% today. the worst-performing health care company. it's the only member of the subindex that is red for the year. we have earnings while ed was talking to david cordani for nike. caroline: it's a beat. scarlet: revenue also beating estimates as well. a gross margin of 43.8%.

slightly higher than the estimate of 43.5%. caroline: it's whether or not this will be a bellwether for ae market because this is company that is geopolitically and globally exposed. --: it's one of these things the wall of worry, so many different stories. you can imagine that this is global, this will help movement. the one thing that could overall change markets is that the people thought economic growth was staying healthy, and therefore, earnings growth was robust. any signs that is not deteriorating is good. scarlet: which is why people reacted so drastically to fedex as well. we will wait to see what's nike has to say about the supply chain and how is expanding its supply chain out of china because of the trade tension. that does it for the closing bell and for me. we will continue to take false

of all of the market action. this is bloomberg. ♪

caroline: selloff deepens. u.s. stocks fall as the shutdown was way on the market. that is adding to concerns about trade tensions. 2%.op of almost nasdaq is on course for its worst december ever. -- was someas room brutal tech numbers today. where you tryngs to pin it on shutdown worries or the fed, it does not work for the narrative.

romaine: and you have to wonder what the pricing action is going to be. caroline: more volatility set. there will be moves on nike. fourth-quarter earnings and they are beating in revenue. $.52 which is is well ahead of expectations. we are up 7.8% after hours. i'm looking into the geographical breakdown. a 40% increase in china. romaine: that came in above analyst estimates, in terms of what they are getting out of europe and china. they cut the geopolitical issues would hurt them in china. joe: it still could at some point. if the trade war ramps up, that could hurt. for now, looking ok. caroline: all are prepared to see how the market digests this end of nike can prove to be some

sort of bellwether. let's talk to one particular key ceo because we have gotten some sound pieces today. moynihan spoke with david westin about his brexit preparations and the situation in europe. spent more money and we have done a lot of work. operating ased and a europe and u.k. business. that is all terrific work. understandingr to the rules of operation. we have to prepare for the worse. we are preparing that the whole world changes and there won't be a lot of guidance. we hope it is better than that. hope is not a strategy, so how we are managing risk, liquidity, operations is turning to the

customers and saying how do they make sure they don't have a disruption in the life. but it will be, because the rules are not clear sets. it's a tough political, social political debate. businesses have been handed the outcome and we are doing our best to make it work. no one is going to get a new project, new service, new activity for anything going on in brexit. you doa problem when these things. it will take a while for that to shake to the system. we have seen some of the effects on the british economy, but how much about europe? compare it to something's going with italy with their budget problems and france for that matter. you mentioned the exports to china. when you assess european growth, what are the headwinds? brian: all of those are headwinds, but i don't think brexit is as big of a headwind as some of the other stuff.

the good news is that it is still a positive number because it took them so long to get back positive. there's a lot of democratic -- demographic issues. energy prices are coming down to help the european economy. the world was not the pending on that. the economy growing faster than the rest of the world or something. as long as it stays within the range, it is fine, but it is affected by all those factors and more. they will continue to work on the issues and work on the budget. you saw progress there. things will fall into place, but it is hard work when you really have that environment. , the pierow slower eight getting big and a fast enough to have everybody do what they want to do. that is a tough thing. political processes tend to get grinding. then everything is just a little harder.

the reality is, because of the size of the economy and structure, the growth is going to be ok. caroline: brian moynihan one hand there, the bank of amercia ceo. romaine: the day after the fed decision, the market has had a chance to digest what has come out of the fed and jay powell himself. our next guest says the fed has only their self to blame. at theg in a professor university of or gone. tim, my first question, do you think the fed provided the clarity that the markets really needed here? tim: i think the answer is no. the market needed more recognition that there is downside risk. they didn't really get enough of that out of the fed statement. all the statement and ancillary materials talked about growth but it's really

only aggravated the anxiety of wall street because you have growth slowing and continued interest rate hikes. that was not the message that wall street needed to hear this week. chairman powell talked about 2019, he said maybe the economy will not be as kind as the forecast. he said they will do what it takes to keep the labor market robust. he talked about 2016 and how they expected to hike several times, and only hiked one time. do we emphasize the significant degree of flexibility in data dependency? you would think that was the type of thing the market would want to hear, but why do you think that's message did not come through? tim: i think it was a hard message to deliver in the context of both the way the statement was written, which did not give enough i think, uncertainty about the forecast. , which wasorecast

downgraded a little more aggressively than the documents were downgraded, -- dots were downgraded. the total message did not come through the way the chair might have wanted to. note, we spokeat with william dudley of the federal reserve in the bank of new york earlier, and he said the fed is not there to take away the market pain. should the fed care what they are saying with a exactly what the market wants to hear? tim: the fed does not exist to take away the market's pain, but this downturn we have seen an equity markets has been deep enoughand gone on long that from a mismanagement risk management perspective, it should raise questions for the fed and the possibility of downside risks. we don't know very much about them. i think there was a really good

opportunity here. opportunity for the fed to say let's pass on december, not worry about the models so much, and be a more risk management mode right now. we can always pick this up in january. -- that would have been a better approach to this. it would not have needed the sense, but ite would recognize there is something going on that maybe we don't copper meant -- copperhead at this point. joe: when people were trying to figure out what the definition of a dovish hike was, i didn't see anyone forecast that there would be some message about the change to the balance sheet runoff, yet, if you look at the market reaction yesterday and the lots of the commentary today, you see disappointment that chairman powell was not more flexible with the run-up. could you explain what it was about the message that seemed to

unnerve people because it done -- did not seem like this would ever be in play? i think there was a hope that if the fed kept a hawkish interest rate path, they could compensate for that with changing the pace of the balance sheet. obviously, there is concern about how the balance sheet runoff and liquidity on wall street -- there is an underlying sense that maybe this was a way out for the fed, and the fed did not choose to take it. romaine: when we look at some of the market signals we are getting, it seems the market seems to be suggesting maybe the data the fed is looking at is telling a different story. i wonder whether we get to a point where the market could prove the fed wrong. is the fed making a policy error here or is it the market making the error? it isduy: i would say

more likely the fed making the policy error than the markets. if you look at the fed's position, the underlying data is also think the underlying data is in transition from a faster to slow growth economy. there should be some risk that maybe it slows down more aggressively than we thought. we have posted a long significant downtrend in the equity markets, and stress another market. we have a lot of uncertainty coming out of wall street -- excuse me, at the washington dc right now with trump and uncertainty. of thatyou put all together, and to top it off, you don't have any significant inflation at times. at this point in time, there is a real good reason the fed is not taking a path that this meeting, let's switch the risk management mode. they didn't take that opportunity. i would say it is more likely mistake in the market having something wrong at this point.

caroline: university of oregon economics professor, timothy duy , thank you for joining us. let's get the first word news with mark crumpton. began --sident trump again reiterated he will not sign the senate's version of a spending bill that would avoid a partial government shutdown as it does not include funds he demanded for border security. >> i've made my position clear. any measure that funds the government must include border security. not for political purposes, but for our country, for the safety. scalise says the house gop is set to lose its majority to the democrats in two weeks. it's counting votes for a new measure that would add the $5 billion in wall funding the president is demanding. the house today overwhelmingly

passed sweeping legislation to replace decades of rigid war on crime sentences in the criminal justice system. the measure includes more flexible guidelines for judges as well as aid and training programs for nonviolent offenders preparing for life outside of prison. senate bill heads to the president's desk to be signed into law. wendy gramm said the decision by the president to withdraw u.s. forces from syria "rattled the world and must be reconsidered." the republican lawmakers spoke out against the move at the joint press conference with two representatives. >> is bipartisan support to ask the president to reverse course. all three of us support the idea of withdrawing from syria and everywhere else when you get to it safely.

it's in our national security interest not to withdraw at this time, in my view. many senator graham added american troops in syria are brokenhearted over the president's decision, and he doesn't know where it came from. the runway at roman catholic --port remains o unavailable because of drones. or than 100,000 people have had their flights disrupted or canceled on one of the busiest travel days of the year. 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: for more on the markets, we're joined by bloomberg live editor, mike regan. dig into us, if you will, what .appened today

we have options expiring, individual stocks expiring. mike: witching days are unpredictable. they can be prone to unexplainable swings up and down. especially at a dreaded -- dramatic month like we have seen today. basically, the story today, so many of the -- got resurfaced today. the one thing that sticks out to me is this china hacking indictment. it strikes me as quite an escalation of trade tensions between the u.s. and china. not that the justice department would be used as a weapon in the trade war, but he could be interpreted as that. this is digging trenches in the trade war, rather than getting closer to an armistice. there's a lot going on i think. romaine: we talk about trying to find the catalyst, particularly over the last couple of weekends. what is the market trying to

price in right now? it's that clear to me. mike: we get a lot of penpals on mliv. the catalyst people are talking about are all over the place. yesterday, it became clear that if there is the level of the markets where he would pause rates, it is much lower than anyone has thought it was previously. look at the data coming in, the surprises are negative around the world. it's not just the fed is hiking, they are hiking at a time where people are worried that the economy once be able to stand it's going forward. especially with these uncertainties. joe: how much are people talking about these shutdowns? mike: not as much. it's in the mix along with everything else. to me, the big story is rampant risk reduction. partially because the year is ending, and a lot of it -- it feels irrational because a lot the riskorced

reduction from risk managers and various funds. they see markets going like this, and it triggers a lot of stops where people have to liquidate some positions just to reduce the risk. i think there is some hope possibly that when the calendar turns to 2019, some of this pressure of risk reduction will abate. it doesn't look great until then. caroline: bonds sold off as well. where is the haven? mike: exactly. one interesting question we had is that emerging-market stocks have been fairly flat over the last spasm of volatility. you would think that would be the riskiest trade, but not really getting whacked as much as the u.s.. beth at the for almost the entire year is, where is the haven? they are hard to find. in cash, we see this tremendous surgeon assets. now that they are in a

competitive yield. gohave seen a giant surge over $3 trillion in money market ferns. joe: mike regan, thank you very much. a lot of focus on how stocks reacted to the latest fed hike. what about the dollar? we more on currency moves, bring in our research director at the jerome levy forecasting -- the research director at the jerome levy forecasting center. >> i think the market was already in a position about digesting a lot of things. when you look at this year, the rest of the world, emerging markets, europe, they have all been taking. they are catching up to the earnings outlook which is being downgrade and the broader economic outlook being downgraded for next year? volatility. so the

significant outperformance for particularly em after underperforming the first nine months of the year. is there some fundamental change in dynamic you see here? >> not in the long-term, but in short-term, e.m. is down so much for the year and the u.s. is catching up to it. romaine: strong dollars. as was the story for most of the year. the dollar has weakened a little bit or flatlined a little bit. as we get into 2019 and the trade picture changes or progresses to some degree, is that story over? do we get to a point with currency differential with the u.s. and the rest of the world narrowing? srinivas: what drives the dollar, if you look at its and involved in the 2011, and the big rally in 2014, what drives the dollar fundamentally is the growth between the u.s. and the rest of the world. a short-term it can be anything. that picture remains intact.

if you look at the latest quarter, the gap between the u.s. and the rest of the world widened. there is nothing that will change that picture. caroline: what are the major selloffs we have -- one of the major selloffs we have seen is an oil. where's that relationship between the dollar and oil, and do we see one supporting another at some point? srinivas: the dollar and oil relationship remains the same. a strong dollar is not good for oil. that's largely because a strong dollar -- but both reflect the rest of the world not doing well. one of the main drivers is market growth. , in the restalters of the world you see commodities rican -- we can. when that happens, the dollar tends to strengthen. i don't think the forecast will change because we have become

net zero on oil. joe: so you don't see any possible catalyst for a growth up to globally? there is not some new round of stimulus coming somewhere or anywhere? srinivas: that's the key thing. china has been reluctant to do the things that would need to beat changing the stories. joe: what would be something we would watch for out of china? these are the type of actions that could meaningfully change the view on global. srinivas: [indiscernible] either tax cuts or new infrastructure spending. they move the needle on credit where you can see the total credit pickup revenue. m1 is decreasing rapidly in china. romaine: we were at the fed meeting and no we are getting back to normalization, but when you look at central banks around the world, rates are low

relative for the individual countries and those banks. dourder, given all of the warnings or prospects about forth, how prepared are we a global slowdown from the central banking perspective? srinivas: the central banks in are -- in countries europe, they remain on the floor. it's not like credit picked up and people got excited all us your an earlier this year, but fundamentally, the economies are not growing fast enough for companies to be investing in new capacity. it's not the monetary policy can do much. see the intercept in moving that in the direction. --: how does the fictional fiscal picture look like in the u.s.? you hear some people talk about the end of the sugar high from the tax cuts, but on the other hand, the deficit gets wider and wider.

becomes: it has automatic will cyclical tightening. so have all of the tax cuts the stimulus from the caps were lifted. lifted, the caps were they didn't let suspending up as much as they could have. we might get a little bit in the first quarter, but beyond that, you look at tightening on a cyclical basis. caroline: srinivas thiruvadanthai, great to get your insights. research director at jerone levy forecasting, thank you. bloomberg. ♪

caroline: the quick check of the business flash headlines. qualcomm and its global legal fight in apple. the court in germany says qualcomm can block sales of some iphone models, but the ban won't start immediately. qualcomm accused apple of infringing on its patent. china said it would be banning sales of certain items. the tobacco giant is spending stock inof dollars in juul. the investment could be best the fund management firm funded by george soros is moving away from the strategy that made him a billionaire. bloomberg learned his firm has reduced most of its macro wages

because of your opportunities. the macro team has lost between four to 5% this year. that is your business flash update. seems to be the new cio making these wagers. romaine: she is clearly moving in a direction. overall, look at the industry. there are a lot of people wishing they could take bets off of the table rather than forcing it. romaine: we had the comments from druckenmiller. joe: they're doing great. romaine: we're going to turn back to earnings coming out. nike reporting it second-quarter earnings, beating across most of the metrics investors were looking for. is hen grlk more izudis. hadprevious quarter, china

trouble, but it seems to have sorted itself out? >> i think yes, china is doing well. we had concerns about what is happening on geopolitical tension in the tariffs. however, it seems like they are doing well. europe as well is doing well. many felt that fedex had rung the alarm bell in the region, but it is going great when it comes to nike. >> right. when it comes to nike, it might be a story of taking chair away from other brands. they had cut their sales outlook for the year and cut sneakers in particular being bad. they come in with double-digit decrease, which tells me -- caroline: that is the underlying working for them because they have purely online. chen: being a european company is over indexed in a company

like a six which is u.k. based. at a company look like nike, how much do you view it as telling us something about the global economy, versus what it says about nike, the brand, versus other brands. chen: it's a tough -- a little tough for nike, because they are a global brand. time, they go to market drum global regions, it really can be taking chair from one brand to another. romaine: marketing is kind of everything for nike and adidas. this is the first quarter we have had results since they ran the kaepernick and kaepernick --paign which was confident the ran the kaepernick campaign.

chen: it's hard to see if they have any impact. they took a position, and the consumer appreciated it. the other side of it, american football is only a small part of what's nike does. 60% comes outside of the u.s.. don'td argue that results have to do with a lot of the marketing of kaepernick. caroline: is there a risk, supply-chain wise, going forward. how much is that hanging over the company when we have such geopolitical tensions? chen: china is responsible for about 25% of product according to nike, but to all regions globally, not just the u.s.. ofthing between 10% and 15% the products in the u.s. are made in china. it might have an impact, but i think it will be a no margin. joe: one last thing, are there risks for the company if there

is a brand backlash with china? sayeth things deteriorate and there is a backlash against loan on american products. chen: it's definitely a possibility. we saw,the great report we are missing the guidance for the rest of the year. it depends on the comments they will make on europe in china. the stock might move a little more. fromine: chen grazutis bloomberg intelligence there. breaking news from ibm. we got news that china's ministry of states had been hacking-- potentially as the doj says. have information that there are reports of hacks but they had taken no measures. earlier today, royces reported china hacked hpe, ibm, and attacked clients. reuterseing reported by

-- royces today. we are still higher after hours. this is bloomberg. ♪ ♪

caroline: breaking news surrounding the report that the department of justice is accusing chinese officials of coordinating a decade-long espionage campaign. it has been reported by the likes of royces that ibm was among them. reportinghey are that there is no client data compromised and they are aware of it. , this is something that drove market-rate today. concerns that are ratcheting up between -- ratcheting up trade tensions between china and the u.s.. shery: earlier today, the doj

announced the indictment up to bang -- two chinese announcements. also, government agencies trying to get a feel in intellectual property. this is coming as we see trade talks starting to gain momentum. we have heard it would start in january. we have already seen some of these purchases from china. was when the cfo of hauwei arrested, people were like is this going to derail them? it didn't seem to. when you build on top of that, on top of this, does that pressure the trade talks? shery: i breathe that it well. there is no way, despite all the comments from the government officials saying these tracks are separate, you have to keep that in mind going on the background. has nothingictment to do with the trade talks, but

you can't help but wonder how this will affect the broader move out there. also, coming at a time where we have a third canadian citizen, again arrested in china less than three weeks before the hauwei cfo was arrested. romaine: speaking of arrest, where is carlos actually going? shery: great segue. this is key. carlos ghosn has been in jail for the past month. he has been arrested since november 19. the big news is that prosecutors were trying to extend his detention. they don't want him out. as soon as he is out, his lawyer will tell bloomberg news people have a press conference which could invest -- affect the investigation. because be getting bail a court has rejected the extension of the detention. caroline: fascinating. a lot of things going on. shery ahn, thank you so much. for more on that, don't miss

.bloomberg daybreak: asia" romaine: "bloomberg technology" is next in the u.s.. joe: have a great evening. this is bloomberg. ♪ ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." next hour, thee u.s. justice department accuses chinese officials of coordinating a decade-long espionage campaign to steal ip and data from dozens of companies around the world. we will talk about the fallout of this hack attack. plus, another legal win for qualcomm. they claim another victory over apple in germany. will the iphone maker have to