want over turnout. the federal emergency management administration stopped issuing new policies under the national flood insurance program during the partial government shutdown, now in its sixth day. judge to throwa out a defamation lawsuit by men he called a pedophile on twitter. he said it was just an over-the-top insults that no reasonable person would take seriously. rescue theff help soccer team from a flooded cave in thailand back in july. offer ofized elon musk a submarine to help rescue the boys. two years after the u.s. federal trade commission file suit against qualcomm, the chipmakers getting a chance to clear the record. claimed jury trial

qualcomm is abusing its strength in the market. the agency will try to prove the company has forced apple and licensingpay inflated peace. that is your business flash update. back to you. a billionaire investor is glad he is no longer in the business. he slain quite in an exclusive interview earlier this month on bloomberg. -- he explained why. i said i'm not critical of the rhythms, they've just made my life very inconvenient. it is not that they are doing anything wrong. what i meant by that is, a big part of my process, and you have already kind of hurting throughout the interview, is taking signals from markets. i have always believed markets are smarter than i am. they send out a message and then

if i listen to them properly, no matter how powerful my thesis, if they are screaming something else, it's telling me, you got to reevaluate. you've got to be open-minded. maybe six or seven years ago, accommodation of central banks canceling signals, but maybe more important lee -- importantly, the hour rhythms coming in with very sophisticated models based on historical events and stuff picking up on the internet about who is shopping or this kind of they have come up with their own methodology of how to predict price movements and how to behave. with, someone

fundamentally like security and they buy from someone who fundamentally doesn't like security, and somehow the invisible hand spit out a very good answer and it was predicted over time. i also learned that things would change, and when the trends started to go up, that is supposed -- when i'm supposed to violin. i'm supposed to pile in. the algorithms tend to have different motivations. just when the trend might look like it's going up, it might be with a standard deviation or something going on and has severely inhibited my ability to read the signals. let's turn back to the markets. we are starting to see a little bit of buying coming into the market as we move into the last

30 minutes. the dow and the nasdaq well off their lows. also seeing a lot of activity in the semiconductor stocks. that is a look at the markets right now. this is bloomberg. carol massar along with jason kelly. we want to bring in joe weisenthal, joining us for the next hour and a half. good to have you here. we were just talking about the markets rebounding from those lows. it is a no-no to quote the dow in points. we are down 73 points. a pretty big bounce back. what is interesting is, when you look at the resilience we saw in the market yesterday, it's easy to forget we were actually in the red early on the day yesterday. maybe it gives people a little bit of hope that we are

reversing some of the trends in which previously, up until the last couple of days, nothing good can be sustained. bitterly since i started this answer, stocks have rallied even more. i'm just going to keep talking. [laughter] how long do we have, 25 minutes to go. jason: you are going to will it to happen. you are powerful on twitter and now you are literally moving markets. carol: let's talk a little bit about gaming. we do have in a start in the house. he covers the gamers and he joins us now. i was looking at some stats, revenue from mobile gaming apps likely to rise by 4% in 2020. we are talking some big numbers here.

industry and yet it goes under the radar because a lot of people think gaming is for kids and it is not real, but it is a huge industry. you were actually playing games on your honeymoon. who are the leaders when you look at the different companies? matthew: you're looking at , don't forgeta. tencent is the world's biggest gaming company. jason: and not all of them are publicly traded at this point. probably the best-known game is epic, maker of fortnight. my kids reenact the snl get of people doing the fortnight ansys . people spend a lot of money on this thing.

ces.oing the fortnight dan well.w: they are doing it's roughly in line with some of the big western aaa developers. joe: it's one thing to look at the hot title of the moment, but everyone all sees the same data at the same time. and by the way, the dow just went green. again, while i am talking. matthew: you want to companies that are not relying on hits. take two is a great example. of redd a record release dead redemption earlier this year. but we don't know what is next. there is no visibility to the future, whereas larger developers, someone like tencent

that has a huge portfolio games, we have good visibility to what is coming down the pipeline. it justifies a higher valuation in the market. listening to our earlier interview with scott and you said don't forget 30% of apple's services revenue is mobile game commissions. there are other companies you have to think about when you think about gaming overall. matthew: fortnight is public direct on android, not to google play store. apple is collecting 30% of all dollars spent on fortnight on ios, but google is getting none of it. joe: how much does an investor in the legacy game company have to worry that the model is going to change? the business model just isn't the same as shelling out up front for the latest blockbuster release. matthew: it already starting to go there and it will be shaken

up again. you are seeing the rise of subscription services take off. it will be a reality and not just a laboratory experiment. that changes the economics. it's the same as going to the movie theater versus paying $9.99 a month for netflix. we understand you're building a gaming station at your desk. we will not tell anybody, your secret is safe with us. you're listening to bloomberg businessweek. let's get a check on those headlines. uma: here is what is happening. u.s. judges are pushing back against justice department efforts to halt lawsuits involving the trump administration during the partial government shutdown, now in its sixth day.

the agency is arguing in court are loggers for the u.s. barred from working even as volunteers while the government is shut down for business. in other news, iraqi lawmakers citizen leaveu.s. their country. the president surprised and -- visit isolation a violation of sovereignty. roughly 5000 u.s. service members are stationed in iraq as part of the coalition against islamic state. russia is saying it can overcome any missile defense. hypersonic flight vehicle lies 27 times faster than the speed of sound, making it impossible to intercept. vladimir putin believes it will guarantee russia's security for decades to come. a wide-ranging overhaul of top

government posts. that move comes after the international fallout over the murder of jamal khashoggi nearly three months ago. the king and his son have come under intense criticism and scrutiny ever since khashoggi was killed inside the saudi consulate in istanbul. global news, 24 hours a day, on-air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm uma pemmaraju, this is bloomberg. oil taking a turn lower as equities try to stage a comeback. today,down a little bit with that 7% drop at the start of the week. explains thehink seesaw effect and likely not just find one direction and ride that?

>> because it is a roller coaster, there is no better way to put it. had the drop to an 18 month low. the next and we come back and it is riding high, the biggest increase in two years. this is not normal. a sleepy,sed to be quiet week between christmas and new year's. falla rooms are lower so the lack of liquidity make things move more outside and you would expect. we have a weird symbiotic relationship between the price of oil and equity markets. they have been locked together in a way that is not healthy. , oil is equity market along for the ride. nearne: correlation with zero at the start of the month. it is getting to a stage where the oil market is reacting

primarily to equities. >> what the oil market is the potential for global demand going forward. it's not simply that we are doing it because our friend is doing it, but they are looking at what is it mean in terms of confidence in the economic future, more broadly on a global scale. romaine: how are investors sitting with this type of volatility? >> it is a small subset of people trading in this market right now. the open interest has been dropping in oil for a while. we saw that start to come down back in november. if you look at volatility as a whole for the oil market, it was basically almost a flat line from the start of the year until about november, and then it spiked like the rocky mountains. as a result, you have seen funds

collapse, people that are not really able to handle this type of volatility. does an at what stage extended bout of volatility begin to affect oil producers, what is that stage? if you are major producer come you care about the monthly average, the quarterly and yearly average. concern traders that are looking intently day today. generally they are looking at the long-term averages. producers arenal thinking in terms of five or 10 years out. they need to be mindful more of that type of pricing. romaine: we are headed for one of the worst quarters for oil prices.

>> it could be the worst fourth canter since 2014, if you think back that far. when he 14 sort of started the downturn we saw and flushed out a lot of folks who went bankrupt because of the downturn. romaine: hopefully things will get better. that was tina davis, covering the energy markets. from new york, this is bloomberg. ♪

jason: you are listening to and watching bloomberg businessweek. i'm jason kelly alongside carol massar and joe weisenthal. we are getting toward the close of trading here in the u.s., and what a day it has been. you heard the numbers. john trainor is here with us, chief investment officer at people's united advisors. he made his way down on the train from connecticut, and while you did, the market turned

positive. we will give you some credit as well. what do you make of this move? john: we are pleased to see this turnaround late in the day. this is from a technical standpoint, i'm sure i will get plenty of research reports tomorrow saying this was a great turnaround. we want to take a look at those sectors that drove the market. what were people buying on a day when nervousness was high? carol: the out performers of the day are materials, industrials, and consumer staples. john: to be buying material stocks, you have to believe in the economies next year. to buy materials, to go out and buy those kinds of stocks, you have to be pretty confident about the market and about the economy, which is a great sign. joe: we see regional banks,

etf's, the regional wines, that is still down today. how much are you watching those financials is a measure for the economy and how much the market can continue to rally? john: if there's a sector that we the bellwether to hitting the bottom and things turning, it would be financials. the inverted yield curve or inverting yield curve is certainly hurting the financials and causing some concern. so again, we want to see those financials turnaround. joe: i'm curious on the data we ite seen, how much if any of would you attribute to the calendar, tax laws, interfere strategies? how much does that explain why the market is so weird right now? john: certainly there are people taking tax losses. i really think it is more the headlines. and i talk with their -- our

clients, no one is asking about gdp or the inflation forecast. i read this in the times this morning, hold my hand. what the heck is going on? carol: we were just talking about consumer sentiment turning down and people are reading those headlines and getting a little worried. john: our economic forecast is that the trump tax cuts were designed to create business confidence and get business investment going. they're really not been doing that. but theyrs were down, are still at a pretty good level, but if the consumer starts to get a little nervous come that would be a negative. shopping andy retail, what are you seeing in terms of early results there? what do you need to see to keep you confident in consumer confidence? john: the one company we look at

walmart.wether is they have done a great job of coming up with an online and internet strategy. walmart has done a great job. if retailers are finally starting to figure out how to compete with amazon, how to leverage the physical space with the online, that could be great for us. we are seeing some good retail numbers, so we are excited. joe: i remember in the wake of the trump election, hard data versus soft data appeared today we got claims that were solid, no sign of weakness in the labor market, consumer sentiment, clear deterioration. eventually, one has to win out, right? john: you're hitting the nail on the head, the hard data and soft data. the hard data is actually pretty good. take a look at the retail sales number. that tells us when we get

fourth-quarter gdp, that number will be good. so the hard data is good. what wall street is concerned about is the soft data. we are starting to see some concern on the consumer side, we are seeing bank lending slowing down. good,rd data number is but wall street is really more concerned with the soft data. profit growth is slowing, the economy is slowing. things are not like they were a year or two ago. as the market corrected to appoint where you think that is factored in? john: we are taking a look at everything that is going on. jerome powell has the hardest job in the world right now. flicked the lights that the party is almost over. he is the guy who has to take away the punch bowl.

a lot is going on with the economy. the underlying trends are strong, we agree with that, but what we are concerned about is the fact that we have never been here before. we have never had to take away this much stimulus. we still have a phenomenal amount of liquidity in the system. he is raising rates. we are seeing global liquidity increase also. for a fellow like him to be navigating this is incredible. we think he is doing a good job. jason: you mention taking away the punch bowl. away a lot harder to take when you have an important person screaming at you to put it back. john: president trump is not doing himself any favors. i believe the fed is going to do the right thing, but he is hurting himself. say, stopebody would attacking the fed because you

are only hurting yourself. the key issue here is, they are navigating a market environment we have never been in before. we would love to see powell inically say we know we are uncharted territory and we are going to be cautious. the market was nervous about the october and the latest statement on the they seem to be a little too hawkish. we are in uncharted territory and we want to keep things moving. that is what they have not gone off of. joe: the question is, does the market believe they are data dependent or model dependent? we have models that say inflation should be picking up. pce, it isat the still below 2%. you take a look at the economy and inflation. they still have her into meth

economy run. the data is basically telling you, go slowly. slower,hey are going depending on protections that are out there. john, thank you so much and happy new year. john trainor is chief investment officer at people's united advisors. coming up on the next hour, our guests were tell us why he thinks apple is one of the names to watch in 2019, which is interesting. as i look at the markets, the s&p 500 is up about exploits, the dow up 110, the nasdaq down about 12. from new york, this is bloomberg. ♪ amazon prime video is now on xfinity x1.

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that's how xfinity makes tv... simple. easy. awesome. romaine: i have a here look at the market seconds before the close. another wild day here.

the major averages were well 2%, as well as the nasdaq 100 as much as 3% at one point and finishing into the green. the s&p 500 is up 8/10 of a percent. are each upvy's about 4/10 of 1%. even the russell 2000 is pulling into the green on the day, up about 1/10 of a percent. lifted by the board, a lot of the big tech names. at least for today. look at some of the sectors that we have here. today, about an hour ago, 10 of the 11 sectors were in the red. sector positive less than an hour ago was materials. now here we are with 10 of the 11 sectors in green on the day. the mosts is one of

disrespected of the sectors this year, managing to close today out up 8/10 of 1%. i want to talk about semiconductors. we saw some pretty significant gains in semiconductors. the philadelphia semiconductor index is up today, but then you see micron, lam research, they are all moving hires. applied materials and lam research benefiting from commentary around the semiconductor equipment makers. there were notes that singled out some of the valuations. the philadelphia semiconductor indexes a whole trades around 12 down fromn about -- about 17 times earnings. the nasdaq composite is one of the better performing of the major indexes on the year. still down about 2%, but not

nearly as bad as we see in the s&p 500 and the dow dust real. we still have volatility take into the market. the vix is still elevated. it has come down a little from , 29 76.as not quite above the 30 mark that has marked the last trading days. we are now trading at about 2976 . that's a look at the markets. fly from bloomberg headquarters in new york. i am carol massar with jason kelly and joe weisenthal. what a day. quite a rebound. joe, we were talking about the swing of the industrial average. a hundred 60-870 points. jason: the swing, you don't normally see swings like this. do you, joe? joe: these days normally, but no

you don't. yesterday at this time, we saw a furious final hour of buying, and it felt very similar today. it feels like panic buying, doesn't it? sometimes you get selling and then you. get panic selling you don't -- panic panic buying selling. you don't often get panic buying. carol: over the last few weeks, we start to see the selling stephen. -- steepen. joe: the trump tweet today you echo jason: he tweeted this morning -- today at? jason: he tweeted this morning, but it was one time about the shutdown. carol: he tweeted several times because we talked about border patrol agent's. joe: there goes that very. it felt like he has been quiet.

yesterday, he didn't tweet at all. there has been the ceiling in the market that the white house is not a source of stability and go a couple ofu days with more mild twitching, you get rallies, maybe that bolsters that theory. jason: it's good. one thing we have not talked about, maybe on and off but not in a meaningful way, is oil. as i have watched some of the shows, i feel like tina davis has been on tv for every five minutes talking about trade. down another 1.8% today, if i read that correctly. what you make of that? joe: that is pretty striking. yesterday, we had a massive rally in oil. there is that vibe of buying everything. interesting that oil could not get back into the green today. there is obviously series demand

concerns around the world. at some point, when oil started tumbling this year, it started with the positive reasons, for the good reasons because of supply, no waivers with iran, and in the bad reasons about demand. we are still looking at oil this week and unable to rally, it's like, look, the global economy is really important. chinese industrial profits are falling for a year-over-year basis. this will be a huge stamen 2019. carol: maybe we can throw up a viewers. our we've seeing quite a slide. a some of the movers, we can pull up some of the energy indexes too. we saw moving in some of the drillers and -- in today's session.

mobil, one ofon the biggest integrated oil companies, that is up about one half percent. it was down as much as 3.7% at its lows. there are some of the other names at least on the tv side in terms of those drillers. nabors is down 6.8%. joe, it goes back to what you are thinking about, there is a lot of supply. joe: there are still questions about opec getting it together and everyone knows oil is overflowing from texas, so it's tough. jason: one of the names i wanted to mention, because i wanted to talk to our friend from sea rfa, salesforce. if the second-biggest gainer in the s&p. .hat is such a strong indicator that stock is up almost 3.3% today. to think about

the tech names that people are looking to, you brought of microsoft earlier when we were talking to scott as well. it is some of these names that we have may stopped thinking as much as about an hour faang theory. carol: salesforce is down from its high in late september, and that stock, even with the pullback, is up about 32%. they are buying their software. joe: salesforce is one of those bellwethers for a lot of different things. -- as cloud and the quebec kpec cycle was also be stimulated by the tax cuts. i think there is a huge new cell force -- salesforce tower in san francisco. if this is the top, that is one of the classic tower curses. that marks the top. you have to watch salesforce, because it symbolizes so much

right now. the fact that it is rallying today strongly, maybe a good time -- may be a good time. jason: the s&p is a racing 2.8% drop. it's the biggest reversal since 2010. i love our superlatives. joe: that's a good one. carol: take a name like facebook and the faang stocks is something that we have been watching. facebook at its lowest down 3.4% today and ended up about a quarter of a percent year. let's pull up amazon. down 5%ed flows about for the day, but bouncing off of their lows of the session. we definitely saw some tremendous moves there. jason: the biggest gainer in the s&p was micron-mu. like there was anything specific, maybe there was a ratings change recently, but that demand -- people really

look at electronics demand. mu is a name people watch. joe: one of the stories for 2019 is what is going to happen with the huge tech ipos like uber, lyft, and the others expected to hit the markets. i have been watching ipos like spotify of the unicorn variety, that couldn't close in the green today. i look to these as proxies for how much appetite will the market have for these companies. that will be a huge thing to talk about. carol: definitely more of a bullish slant by the end of -- end of trade today. we want to talk about apple. but get a check on your -- let's on bloomberg get a check of your headlines on bloomberg. >> i have your bloomberg first word news. a union that represents government employees macy the federal government for forcing employees to work without pay during the current government shutdown. bloomberg law has learned the

american federation of government employees, which represents more than 670,000 employees, may file suit under the fair laber act. federal employees in october of 2013 filed a similar class-action suit following a five-day shutdown and won. attorneys for boston marathon bomber wanted his death sentence overturned. judges arguing that the removed to move the case out of the city, where the bombs exploded. it was impossible for him to get a fair trial. twond his brothers set off shrapnel packed bombs near the marathon finish line on april 15, 2013, killing three people and wounding more than 260. more police officers have died in the line of duty this year in the united states then in 2017.

144 federal, state, and local officers have killed so far -- been killed so far in 2018. that's more than the 129 last year. the majority of officers who died were shot or fatally injured in car crashes. you can count japan's own waivers in those unhappy with the government officials -- whalers are upset with the plan. this comes a day after shinzo abe's government through international criticism with this decision to resume commercial whaling for the first time in 30 years. 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. am uma pemmaraju. this is bloomberg. ♪ romaine: checking markets right now. the bear market will have to wait another day, maybe even

longer. volatility in terms of the market today, we so the s&p down, nasdaq, and all of the major indices bounced act off losses earlier in the day to finish a positive. joining me now is mike regan, and editor for our bloomberg's market blog. is,thing i looked at here as we got toward the end of the trading day, it seemed to be sustained buying. mike: absolutely. to me and others who have been speculating, it feels like a rebalancing. andre getting of the month so any pension fund or institution that has a target or a 60/40 allegation whatever the ratio is, when you have months like this where we had the s&p 500 still down almost 11% in december, the exchange traded fund for

treasuries on the long end up 4%. surgee: there is a huge in selling, particularly in long bond. mike: yeah. a lot of selling in the long end. using the etf as a proxy, up more than 1% which is a pretty good day for the fund. basically, all of that disappeared by the close back to unchanged. it might even settle a little lower. it has a bigger chance of rebalancing. there is no way to know for sure, but it seems like it. romaine: this is probably the first day i can remember and a while that we had 52 week highs. they want from a notable company, but it is still significant because we went through a stretch where we saw up five or six days were nothing hit a two-week high. mike: seeing yesterday's rally get extended is good percent -- sentiment if nothing else. the turnaround is so dramatic. almost every s&p 500 stock is down.

490 some were down. now we close with 490 up. all 11 sectors went from red to green during the day. it's probably a mistake to try glean too many signals from sentiment from this type of action today. and really all week. it's a strange week with the holiday, volumes are light, the markets really get pushed and pulled in different directions. rebalancing, especially when there's not a lot of fundamental news, no earnings coming in, -- romaine: across the tent, we had 9 billion shares trading, which is above the average we normally get. are there a lot of people in this market? mike: that's mostly towards the end of the day too. most of the day, it was tracking below average. if you look at the tech index, which measures stock trading on up to ask rather than down takes, it is looked at as a proxy for traders.

we saw the market blog shoot up really high, to one of the highest ratings of the bull market. it looks like someone came and strong, whether it be rebalancing or whatever else. romaine: it will be interesting to see what happens next week. that's mike regan, our senior editor for bloomberg's live blog. from new york, this is bloomberg. ♪ loomberg. ♪

bloombergs is businessweek simulcasting on bloomberg radio and bloomberg tv. i want to jump into our next guest. gene munster is with us. veteran tech water and manager -- managing partner it joining us here -- managing partner joining us here. you said this is the name to watch, apple.

among the big tech and faang stocks. thee think apple will be best performer of the faang stocks in 2019. the reason is that there will be this slow adoption view from the buy side that apple is a services company. that should yield a higher multiple. to largehere is risk numbers when apple reports the december quarter, but that is missing the point. the point is that the new reporting methodology around getting rid of iphone units is going to be critically important to investors focusing on what is most important. this business, not just the software piece to it, but the hardware part, operating like a services business, which means higher visibility. we think this new methodology will yield that. carol: and you view that as a positive? gene: absolute positive.

jason: one headline crossing the bloomberg. it's a brand carol and i know, and joe does as well. green growth. this is based in columbus, ohio. they are making a hostile offer for africa -- afria. that's one of the big canadian cannabis company. the stock jumping about 70 -- 7%. joe: that was a $15 stock a few weeks ago, and now it is a $16 stock. some of these cannabis companies have cratered. at ae already consolidation hostile. jean, is this something that you guys are looking at in terms of the cannabis market. joe: we look at about 1000 companies per year. plays on that,ve so we are open to making those investments, but we not made any investments into cannabis. carol: why?

gene: the filter for our investment is so tight. we invest in 1% of the companies we look at. it happened to be that that makes between business model and founders, culture didn't fit. maybe there is something about the cannabis market that those founders don't fit our playbook. we are open to it. joe: something we were talking about earlier on the show's major selling in tech stocks across the board. what does that mean for the ipo class of 2019? lookingr perspective, at private markets, what is the spillover toward a diminished ipo market, potential acquirers of the companies you invest in. --you think a trickle effect to you see a chick will affect happening on private tech space from what we have seen in public markets? gene: we haven't seen it yet. but you wish and in the private space continue to inch up.

if the market continues to be down, that's will eventually impact to the private market valuations. talking about private companies, one of our predictions in 2019 is that this will be a big year for ipo's from some of the unicorns. there are about 230 or so unicorns, more than $1 billion in valuation. i don't know what the exact violation will be, but i think we will see a push. what's implied in that prediction is that 2020 will be a more restricted year in terms of these big ipo, tech ipos. carol: are there any among the big tech ipos that you find interesting and are watching? gene: we are looking at all of the big ones that everybody is. the two in particular that we are most interested in our lyft and uber in terms of what they will say on the roadshow about the future of autonomy, how they

will address that opportunity. if we think about tech trends, what will happen in automotive is one of the most apparent. they are in a position to have a big influence on that. carol: do you think one is positioned better than the other? gene: i think lyft is positioned better because of their partnerships with existing automated oems. and conversely, some of the headache uber has had with autonomy and the things they had with the accident in phoenix. i think i would give advantage to lyft. joe: thinking about apple versus the other faang stocks, what the state wishes -- what distinguishes apple besides their business model. an aspect of their business model is data. they are perceived as not exploiting customers the same way some of the competitors are. is this going to be a persistent problem, the two julie for facebook -- particularly for

.acebook will this continue to gain attention among regulators? gene: it will. a year of019 will be greater regulation on those two companies. we think facebook will have difficulties. we think their best days are behind them. not just because of the privacy fees, but to the world is not a better place because of facebook. i believe we will see a step up in regulation around privacy. what does that mean for people listening? it means you will have more visibility in terms of how your data is used. you might click ok and move on, or you might view where your data is going. best daysn you say are over, does that mean it's a smaller facebook that we have, or are we talking about 5-10 years that we don't have a facebook around? gene: facebook will be around. they will have different progress -- products whether

it's whatsapp or the are. just a smaller facebook. carol: we will continue the conversation with gene munster. if we can get into the faang names we have watched this year. jason: i want to ask him about the concept of the good phone. one prediction is less tech use in 2019. carol: in the meantime, let's get another check on your top business headlines and a reminder of those closing numbers, because we saw them bounce off of those lows. this is bloomberg. ♪

checking the markets, we see one of the biggest reversals for the s&p 500 since 2010. at one point today, the s&p 500 was almost down 3%. the nasdaq was also tracking more than -- i will percent losses on the day. all of the major indexes managed to finish in the green. 1.1%.w jones is up the s&p 500 is up about 8/10 of

1%. even the russell 2000 which was struggling squeezed out 1/10 of a percent. oil fell. it was the big story over the past couple of days having two big swings. 40%is still down about year, andber of this down 15% over the past two years. when we look at the activity in the market today, i want to show you what happened with the 30 year bond today. most of the day, we see buying into the haven assets like the 30 year treasury. as a got toward the end of the trading day, after 2:00 p.m. in new york, we saw a huge amount of selling. that put yields up to 3.07%. the yield were really tracking also down to where the 3% level. that's a look at the markets. in new york, this is bloomberg. ♪

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free shipping too. just go to buyleesa.com today. you need this bed. >> i am uma pemmaraju with your bloomberg business/headlines. instagram is redesigning its but from for horizontal scrolling. almost immediately, the effort went sideways. the social media apps set a technical bug forced lots of users to swipe left and right is set of scrolling through vertically for incoming posts. users are voicing their complaints on social media with #instagramupdate trending on twitter. dozens of sales are being held off because the government shutdown has not implemented new policy.

the government shutdown is now in its sixth day, forcing the federal emergency management administration to stop issuing new policies around the national flood insurance program. blue row -- blue apron is on session.its largest shares remain below one dollar and the stock is down 70% for the year. romaine, back to you. we talked a lot about marijuana stocks this year, and we got news that we are seeing a little more consolidation, potentially in green brand buying aphria. shares of aphria are trading of 21%. here to talk about the industry is a senior analyst with

bloomberg intelligence joining us now from princeton. when you look at a deal like this, what does it say about the potential level of consolidation that we might be headed for in the marijuana industry? ken: hi, romaine. one of the things we have been talking about for 2019 is more consolidation. it also speaks to the scarcity value of some of the leading cultivators in canada. constellation bought its stake in canopy an update to almost bought when all tree a 45% stake in chronos, it did it with the knowledge that at some point, these scarce energies could be prone to other outside entities. i don't know the after story --h, but as one of the le leading cultivators in canada, i think this is an opportunity in

potentialf this acquired to seize one of these scarce entities that is a leader in the space. romaine: do you think it's necessary for these type of acquisitions? we have had so much public offerings in canada and some phantom offerings in the u.s. of cannabis companies. it seems like there has to be for anyt of retraction of these companies to really make a dent in the marketplace. once you get outside, the first half-dozen or maybe doesn't large cultivators, you are talking about companies that have market caps in the half a billion or less. companies still trying to figure financialy, get a footing, and diversified their operations into more than just a niche. the first wave of the industry was the cultivators, the growers.

now we see consumer products, and services come online. it is diversifying to many more opportunities than just growing. romaine: thank you, ken. that is kenneth shea from new york. this is bloomberg. ♪ >> you are up-to-date on your architect. we will continue with the conversation with gene munster. i'm jason kelly alongside joe weisenthal and carol massar. one of the things i want us to talk about, you have these predictions that your team has one -- we were starting to get into it before we took a break -- was the idea of the good phone. this speaks to something that i think we all talked about over the holidays, which was people buried in their phones. their obsessing about facebook, instagram, twitter feed. tell us how that plays through

2019, and how an investor can think about that. movement started by one of the partners at loup ventures. freedomc idea is that is the ultimate luxury. -- whether you are poor or wealthy, you're not free today because we have some level of tech addiction. some of it is mild, and you can operate well. others, you can probably think about people in your lives when you sit down at dinner and they are constantly checking their phone. this awareness is the first step about tech addiction, and becoming free from it. in order to become free from it, we need more than software. what apple and google has come out with recently is tools to measure how much time you've spent. thats like putting someone has a drinking problem, put a lock on the liquor cabinet in their home. deviceaccess to the

can get people to fall back into the habit. the good phone is a minimalistic phone absence of things like social media. .t's absent of youtube it does have the ability to do i message -- imessage or phone calls. you can decide what you actually have on your good phone. that creates rails that will make it easier to free yourself from the sedation. carol: it's a my first mobile phone. gene: in a lot of ways -- we are tech investors and we believe in tech. we believe tech is virtuous at its core. i think it can taken -- be taken to an extreme. we think people should still have a smart phone, because there are benefits. for example, summoning and uber -- an uber.

that's the basic idea of going back to what you really need. carol: do you need more health care on your mobile devices? i am curious about this. this is one of the remaining avenues that really needs to be disrupted for lack of a better word. do you see that as an area where things can evolve? gene: for health care in tech? for's another great example something you can use a smart phone today to have some benefit in your physical health and well-being. let me give an example. is thatebook does well they understand exactly how to get you to stay in the newsfeed. they use artificial intelligence to advance that. there are ways that company that can help maybe your activity level for example, use some of the same ai intelligence to help you do behaviors better for you.

i think the smartphone is good at its core, and things like health care is an important aspect. there are also aspects around health monitoring. the apple watch came out with an ekg monitor. these are good use cases for tech. , when youother areas look at the startup world, private tech, are promising to you today? gene: we think the future of retail is one big segment that we are exploring. the basic idea of how you can make retail more streamlined. amazon has an example of that. narrow tech, we are big believers in that. too evasively or noninvasively tap into your brain to self -- help solve paralysis. we don't want to create superhumans, but narrow tech is ro techpportunity -- nue

is a big opportunity. carol: what is tesla 2019? gene: it's higher. i think elon will continue to have disturbing tech coming out, but i think where they are approaching a nascent market and i think they have a pull position which should be good for the stock. carol: so great to have some time with you. happy new year. gene: thanks for having me. carol: everyone should check out his picture on the website. of loup ventures, joining us. >> i'm uma pemmaraju with your bloomberg first word news. is likelynt shutdown to enter the weekend. a republican aide saying the rub -- house of representatives is not scheduling votes for friday. house members have been told

they will get 24 hours notice if they need to travel to d.c. to vote on any deal to reopen nine federal departments that closed funding ran out. backces are pushing against lawsuits involving the trump administration. arguing lawyers from the u.s. are barred, even volunteers, while the government to shut down for business. an independent journalist watching a strike for freedom and democracy. this is the latest are protests calling for longtime president, -- the longtime president to step down. water utility will

continue to pay bondholders, even as the government works to cut its debt in bankruptcy. officials told bloomberg the puerto rican aqueduct and authority will make its january 1 payment without using reserve funds. according to the data compiled by bloomberg, the utility still owes $84 million in interest at the start of 2019. the island is still working to recover from hurricane maria from back in 2017. 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. .'m uma pemmaraju this is bloomberg. remain, back to you. romaine: one of the bigger stories of the year has been with qualcomm. emily chang sat down with the ceo earlier this year. >> we have a dispute over the price of ip. we think that is moving into a period of time where our strategy is unfolding, and the environment is such that i think

you are in a position where things can get done. at the same time, i think there is no better opportunity and part of her qualcomm then to work with apple. it makes sense that the technology leader in mobile should be partnered with the product leader in mobile. out, things tend to work that the way we think about the business, eventually get disputes figure out -- figured out. >> see think apple will remain a customer? steven: i think so. if you have leadership , your roadmap will eventually dominate the business relationship between companies. there is no reason why that should be the case. emily: you are taking on the world's most viable company. they have stopped putting your chips in their phones, say the patents that they are paying you for are invalid. does something so bitter get resolved favorably for qualcomm? steven: i think bitter may be

the wrong term. we have had disputes with licensees in the past over the price of ip. if no different here. it's just bigger companies. we are both big companies. we are not a small company. those things will get resolved. sometimes they get resolved on the courtroom steps, and sometimes they don't. the strategy is putting forward the way we thought. romaine: that was the qualcomm ceo speaking with emily chang. the markets are closed, let's get one final check. we saw a wild day on wall street. jones, s&p 500, and nasdaq finished positive. we were down almost 3% on some of the major averages here. pretty late into the day. if you take a look at some of the moves we saw on the s&p 500 today, at one point, we were below the $2400 level, down to

2397. -- we saw them push it back up into positive territory. right now, the nasdaq only down about 18% over the year, the nasdaq down 15% -- excuse me from their highs on the year. the dow is only down about 14%, so we are well away from bear market tell atari -- territory. taking a look at the vix, we close below the 30 level, which is significant. on julystarted the year 2, the vix opened at 11 and close below 10. we averaged around 15 for most of the year. has month alone, the vix averaged a reading of about 24. volatility is relatively elevated heading toward the end of the year, even with the rally we see in stocks.

folksday, the bear market have been predicting has been pushed off for a little bit longer. at the markets today. from new york, this is bloomberg. ♪ bloomberg. ♪

jason: you are watching and listening to bloomberg businessweek on this busy thursday afternoon along carol massar and joe weisenthal. we will and the show with really interesting conversation with a guy we have gotten to know little bit. that is steve rosenberg, the ceo of greystone working in the area of affordable housing. great to have you back with us. --ordable housing has also

always been an important issue. seemingly becoming more and more important now given income inequality, especially in some of the bigger cities. you've undergone a rapid expansion it feels like tell us what is new. >> affordable housing from my perspective is the most exciting area of housing. .he need is incredible it seems to be growing. certainly in the large cities there is incredible need for people to have safe, affordable, housing. what we're seeing across the country, may be across the world, is the stability of a family's housing is equal to the stability of their lives. much of the challenge is regulatory? thewing people to build

volume of affordable housing in places where they currently can't. steve: a lot of it is certainly regulatory. zoning approvals, cities have a lot to take -- a lot that they can do in their power to encourage development. we were talking a couple of minutes ago that the opportunity zone legislation, what that legislation does is drastically wheres the cost of equity developers are trying to build affordable housing and urban areas. -- in urban areas. there's a lot from regulatory perspective that impacts affordable housing. carol: you guys have been involved many years in the real estate investment and advisory. what is the solution to affordable housing so you have major cities where you will have people along different economic

-- along the economic spectrum if you will who need to live there. how do you make it work and viable for them? and it's not just a secluded neighborhood where the affordable housing is. it's well integrated into society. steve: the components of that environment where of affordable housing gets built is a combination of the regulatory that we discussed, real estate taxi basements -- tax embatements. itentity greystone created is going out and buying housing properties that we commit to keep affordable. as a result of that, we get away with real estate taxes. carol: and it's a not-for-profit? steve: correct.

they waved our real estate taxes. that's a strong motivation to keeping the housing affordable. there are a number of components. creatingg, regulatory, real estate tax waivers, all sorts of motivations. is it our control to determine how much affordable housing gets built. you can create the right motivations were developers will be more motivated to build that housing than just luxury housing. have been doing this for a long time and have seen cycles. where are we in the real estate cycle at this point for residential and commercial? steve: on the luxury side of clear thatthink it's there has been a lot of pushback. is coming backk onto the affordable side. we've not seen rents pushed

back. there is so much affordable housing subsidized. that ha his workforce housing. we are not -- that is workforce housing. are not seeing rents pushed back on that side of the market. joe: what about the issue of construction costs? particularly labor. we saw, up until recently, a lot of talk about commodity pressures. just the cost of building and cost of construction going up due to supply constraints, shortages, things are that. is that easing or the will that -- or will that be a story for a while? steve:steve: construction prices are still going up. notwithstanding the fact that the market had a bit of softness in it. does it seem like it is abating or going up any less now? doesn't seem that way. the question is i guess that

that is on the table. doesottom line is, what it is affects the value of the land. the land that's being sold for affordable housing. determineds we do is by what the construction costs are, and the ultimate income. in the value of the property before you build on it. carol: i'm thinking about investors when you think about in terms of real estate. everyone is thinking about performance and returns. it's commendable what you are doing with this. why are you doing this? steve: the reason we are doing , our that, as a company culture and mission is to enhance lives. company, butprofit the mission of the company is not to enrich any specific individuals. the purpose of the company is to

enhance lives. , a highare doing percentage of the income goes to philanthropy, helping families distress, and not only that, we are buying housing and taking the properties from the housing and giving it away to families in distress. carol: stephen, thank you so much. ofve rosenberg, the ceo of -- ceo of greystone in our studio. jason: we told you a few minutes ago about green growth, planning a hostile offer reported. it is now confirmed that green to buyis making an offer aphria at $11 per share. this is a nice premium for aphria basin where the stock has been trading. joe: you have to wonder is the year of cannabis consolidation here?

a's happening so fast from legal drugs, to legal, to consolidating industry. jason: it's an interesting day in the markets. carol: our most read story in the bloomberg is volatility back in the market. you have stocks back to the lows of the day to close higher after just flirting with a bear market. oil slipping below $46 per barrel. that's will be an important story to watch whether it is supplied, concerns about the economic outlook, or both. jason: it's a lot of optimism. maybe it's time spending with gene munster talking about big tech and fighting tech addiction. i feel good about today. carol: i have a 15 and a half-year-old. a significant bounce off of our lows. you been listening and watching bloomberg businessweek. this is bloomberg. ♪

>> i'm taylor riggs in new york in for emily chang. this is "bloomberg technology." who will outperform and 2019? gene munster says apple will beat out it's tears and next year. plus, will be tech fizzle out -- bittech fizzle out in 2019?