closing bell and it looks like we meant to come off of the dip as the different members of congress were speaking and recounting the lack of progress in their negotiations to reopen the government. -- s&p, nasdaq, and dow down and dow all gators. the dollar, as remain pointed out, remains weaker. romaine: we saw little buying on the tail end of the close, which is something we have seen for the past few sessions which seems to suggest that people are taking note of these valuation levels. caroline: and it was not just the federal reserve minutes that we got, it we had china-u.s. trade kickoff. it was a global risk appetite. we sought in asia, in europe, flowing into the united states. energy is the outperform are on the back of oil rallying. --rlet: we talk at the route

about the rally in 2019 and it begins before christmas. the s&p 500 has gained 10% over the last 10 days. the russell 2000 has done better in that period. middaye: i left the day u.s. time and it was up a percentage point, and now it went to have its best rally on record. romaine: you had the big selloff twostmas eve and then days later -- caroline: lisa, what are you watching? lisa: i'm watching inflation because inflation expectations have risen. this is looking at five-year, breakeven features. this is interesting to me. it's outpacing even the rise in five year treasury yields. andcan see that bounce back in inflation expectations over the past four days. the question is why?

got data showing inflation is rising more than expected a week ago in the u.s.. take a look at the next chart. oil versus the breakevens. you can see it is moving hand in hand there. rallies, so too does the expectation of inflation as measured by this bond market feature. abigail: let's dig into the russell 2000. it's been on its face for the best 10 days. extraordinary. a piece of that is coming this year. major averages, plus the russell 2000, 4 days in a row. the best four days since after the presidential election. that's how bullish investors have all of a sudden gotten. not much has changed fundamentally. this speaks to a snapback in sentiment. of 8.1%. it speaks to the january effect where investors, traders think stocks may rally in january

after declines in december. last year, it was extraordinary decline. take a look at 2009, we see three years of declines in january. two gains and three more years and declines. gains right now, the russell 2000 has gained more than 6% in january. the question is whether small caps can hold onto the gains. information doesn't make it clear one way or the other. romaine: the leverage bond market is not holding onto the -- >> the leverage bond market is not holding on to the gains we had seen. todaye a little pressure on the bk ln etf. companies that sell these leverage loans have weekend. the weakness today does nothing to a race it big rally that we

have seen, especially on the next chart relative to the s&p wh y. they're outperforming the etf attracts the s&p 500. you had three straight days of inflows, record five straight day gain in history for that etf. erasing all of december's losses. perhaps some people see caution as buying opportunities. scarlet: thank you taylor, lisa, and abigail. still with us is patrick and i want to pick up on something lisa mentioned which was oil prices. oil entered a bull market today. not so long ago, it was in a bear market. how convinced are you buy what we see in oil and doesn't have implications for earnings given companies are reliant on rising oil prices? patrick: oil is incredibly important. people commonly believed oil means consumer is doing better so therefore, profits go up.

it's the complete opposite. energy is such an important part of the benchmark. when oil falls, the profit for energy companies falls. it overwhelmed any benefit the consumer sees. for an investor, oil falling is a negative. romaine: when you look at oil prices recently, what is priced in here? this as ado you see repricing of economic expectations or is there something else at play? patrick: we thought the beginning of the year or at the end of -- the end of last year, the demand for oil was falling. the narrative no longer holds. we are hitting a backdrop with followingfor the year. that's in line with what we saw last year. the falling oil was a fear in deceleration, but it shouldn't have. i think we should be stable from

here. caroline: it seems the market should not of gotten so concerned about the fed. put his chair powell team into service about what he managed to give across the market. we freaked out and the caution was there. patrick: we know that's now. at the time, i think there was concern that perhaps the fed would bring us into a recession. historically, the fed has hiked which precipitated recession. will see something like a soft landing. the fed indicated they are willing to back off the hikes. the market is pricing in no hikes for next year. in the decline in fed raises 2020. the expectation of the marketplace is the fed will not move. scarlet: what do you do with that? how do you play that when it comes to sectors? what it mean -- what does it mean for financials? financials the higher interest rates. i would say we have a positive

in the sense that loan activity and the ability for companies to repay loans remains strong. i justify that with interest rates are into to rise. we are in an environment where financials are likely to rise. romaine: when you look at what is happening with the past couple of weeks with price action, we don't really see any new cause of individual stocks. overall, the basket when you look at the entire basket, it does not suggest this is something that can be sustained. , on a broadny sign basis, this rally will continue into 2019? patrick: maybe let me simplify the issue. if something falls by half, it must double to get back to where it was before. it will be time to for we see stocks hitting 52 week highs because they have fallen. thereaid, the backdrop is

for stocks outperform over the next six to 12 months. thely, it's a function of fact that gdp remains healthy, revenues remain strong, margins are not likely to a road as much as people fear. that is conducive to risk on trade to stocks going higher. scarlet: you have to wonder, in light of what we saw this afternoon, how much the he said, she said, they said component of u.s. politics plays into everything. kevin mccarthy saying chuck schumer's account of his meeting with the president differs from his. caroline: and it feels like more of the same. it wouldn't be a normal day if we didn't have wrangling over the white house. this wrangling has really affect. ipo's are puts into limbo. i what point does this worried the markets? so far, they seem resilient. patrick: you have two different views.

one, the narrative will remain comfortable for the near future, and discord in washington remains high. that's likely to remain at the top of people's minds. on the other hand, it's unlikely to have a major impact on the data. scarlet: we're not getting some of the data. patrick: some of it, but what we are getting is healthy. the corporate profit trend, which we are likely to have this week, will corroborate what we see from the economic data. romaine: how rely do we have to be on what we hear out of corporations? you do this a lot that you have to ignore what is going on in washington. trust what is coming out of the corporation, even if we sea -- s discord in the in dc. patrick: i think it will remain a high topic, in the terms that companies will highlight trade issues in the difficulty in finding labor, that the reality is, we are not seeing wages move

higher, we are seeing margins eroded from the inability to find labor. datae same time, the trade has less than a 10 to 15 point basis impacts. scarlet: patrick palfrey, thank you so much for joining us and sharing your thoughts. patrick is credit suisse's senior equity strategist. that does it for the closing bell and for me. up next, a deeper dive on the fed minutes and why there is steep decline in demand for treasuries. this is bloomberg. ♪

caroline: live from the world headquarters in new york, i am caroline hyde. romaine: joe weisenthal is off today. caroline: here's a snapshot of the u.s. stocks closing today. higher across the board, but coming off of the highs from the shutdown. romaine: the question is "what'd you miss?" caroline: policymakers treading more carefully on future rate hikes citing muted inflation pressures. impasse over the border wall. president trump walks out of the meeting with congressional leaders coming in a waste of time. the government shutdown extended to its 19th day. a fallout from that extending beyond washington. uber and lyft planning to go public grinds to a halt. romaine: the fomc released their it'ses today, and again -- gave the markets something to chew on. let's bring in bloomberg

economistenior u.s. and a reporter. when i read the minutes today and i saw the reaction, the first question that came to mind is why was there such a difference tween what we are hearing out of the minutes and what powell said during the press conference following the revision. path, iregard to policy think the fed's message is the same. they would like to continue removing policy accommodations. flexibility.retain even dropouts forward guidance from the statement altogether to make it truly data dependent. i don't think the message is that different in that sense. i think they acknowledged all of the downside risk and in the speeches and minutes.

that probably is what drove them lower the path of policy accommodation. it was global risks and financial instability. outlook, though. inflation outlook seems to be modest, but it is still the same sort of. the fundamentals remain the same. it's this external factor that seems to be raising risks now. caroline: it seems the markets got what they wanted out of the minutes. they heard dovish tones and like to dovish tones. we have to think the dot plot says there will be two hikes in the market is not saying that. >> there was one phrase in the minutes that traders really latched onto. in decembercymakers wanted to raise rates.

that's exactly what people in the market wanted to hear. as you said, they are trying to maintain that flexibility and are not on autopilot when it comes to raising rates. that is really why you see the yield curve steepen and saw the big bid into the short end of the curve. yelena: i think it's an that someg point policymakers did not support the rate hike in december. that raises the possibility of a dissent at any given meeting. it's a dangerous thing. it's not such a dovish thing. it is telling us about the dichotomy on the policy committee this year. romaine: i want to bring up one other thing that the fed popped up there, unemployment. particularly, the labor participation rate. the idea seems to suggest some of the improvements may not be sustainable. yelena: obviously, aging

population will put downward pressure on participation rates, but the minutes talked about prime participation rates fromving, people coming the sidelines, this is a positive thing for policy. and for the economy overall. caroline: we saw steepening in the yield curve, katie. we don't have the market pricing in any rate hikes, but they see a rate cut in 2020. what we think about slows? jeffrey good lack says maybe it's time to get out of long. still treasuries are attracting haven flows. we saw the huge rally in tenure yields to end 2018 so there is still a demand for treasuries. caroline: and some bids to cover , actually today, on the 10-year note sellers. yes, the tenure bid to

cover this afternoon bumped up a little bit, but 2018 saw the lowest ratio. since 2008. one thing for president trump to bear in mind as they ratchet up the overall deficit. thank you to yelena shulyatyeva and katie freifeld. sticking with the fed, michael mckee spoke with the boston federal reserve bank president in an exclusive interview. he ask about how recent market volatility is playing out in the economy. >> we are trying to get to the point where we are consistent with our dual mandates. at a time where forecasts are telling us, more than likely, we won't have a bad outcome, but in fact we will have a reasonably good outcome with real gdp being readily to be strong --

relatively strong, but at the same time, the market data has come in weaker and applying a bigger slowdown in the economy. when we have these differences, we need to have an understanding of why they are so different. my guess is over time, we will see in 2019, the economy will be reasonably strong. the unemployment rate will drift down from the rate it is right now, and financial markets will recover. i realize my forecasts can be wrong, end of the financial markets have such a different feel, at least in the last couple of days being quite negative and volatile, i have to take those arctic considerations into account. somesuming we don't get weird outlier strength or weakness in the numbers, but they come in as forecast, how long is patience? is it a quarter you wait to get enough data or half a year? >> it will be data dependent. get intoxpect, as we

the second quarter, we will have a lot more information about what are some of the concerns and that it in the financial markets show through to the real data. my best guess is that we won't see that much of an impact, and into the second quarter, it will be clear we are continuing to grow above 2% and the unemployment rate is declining. hopefully, the stock and bond markets and financial markets will reflect the fact that some of the tail risk they seem to be pricing as a high probability turns out to be a lower probability. romaine: that was the federal of boston president speaking with bloomberg news. to bring you up-to-date on earnings crossing the wire. katie holmes releasing its earnings. homes releasing its earnings. they're coming in above estimates. one negative spot in the earnings, net orders were down

about 12% in the quarter read not quite sure how that matches up with estimates. caroline: meanwhile, we get numbers out of bed bath and beyond. everything is soaring up 19%. third-quarter earnings per share beat expectations. third-quarter comparative sales down 1.8%. the sales aren't looking pretty, but the fact that earnings per share to be looking good, is helping. >> look at the price reaction. caroline: i feel this has something to do with dividend and maybe their outlook overall. this is the company that they have to keep looking at not only right here right now, but what they see throughout. pro-eu.p, theresaellion against may's break the deal.

two losses and row. that's next. -- in a row. that's next. this is bloomberg. ♪ mberg. ♪

caroline: two days in parliament has we can theresa may and made the future of brexit even less predictable. pro-eu torres joined with the opposition to restrict the ability to raise taxes if there is no deal. i next guest joins us from washington. two misses for theresa may. she's being forced on her timetable, finance bill, but we are back to where we started before christmas. >> i think the big picture is that she is still likely to lose that is nowul vote

set for next week that is now set for next week on january 15. what we are starting to see with these two important losses to theresa may government is that there is now an alternative majority in the british parliament, beginning to crystallize that consist of the opposition at a critical mass of pro-european tour ease. they are in a much better position to take control of what happens next after theresa may's likely defeat next week. romaine: given we are now looking at a potential defeat, and measuring the possible scale of that defeat, is there sort of a possible extension of article 50 in the cards at all? jacob: i think there are two ways in which you can get through that extension of article 50. i think this one is the least likely option, there is a complete change of heart's the

british parliament, they -- and they quickly decide to have another referendum on a version of theresa may's deal and whether to take the deal or stay in the eu. unless they do that, the eu is not going to agree to it. there is another way in which extension, which is you have an extension or the eu agrees to have an extension, but only once the u.k. parliament has approved the withdrawal deal. -- so that the extension of article 50 is used to rectify this deal across the importantly, you can have the second vote on deal or no deal right before the deadline, were obviously, there will be maximum pressure on mp's

to vote against no deal. caroline: perhaps a second referendum is spoken about. jacob, what do you think the most likely outcome is? jacob: i don't think personally a second referendum is likely at this moment. i think theresa may has successfully run down the clock too far for that to be credible. either thet believe top leadership of labor or the tori party is interested in the second referendum. i believe that what we have here is the prospect of pro-european in voting through the softest possible brexit. romaine: we will have to leave it there. that is jacob kirkegaard of the peterson institute of economics. -- international economics.

this is bloomberg. ♪ ♪

mark: i'm mark crumpton with bloomberg's first word news. trump got up and walked out of the meeting with congressional leaders, a summit he said was a total waste of time. afterwards, chuck schumer spoke to reporters. he said if i open up the government, you won't do what i want. that is cruel. that is callous. that is using millions of innocent people as pawns. it was wrong. later, hew minutes , andof slammed the table

when leader below she said she didn't agree with him at all, he walked out and said we have nothing to discuss. mark: earlier, the president joined the senate republicans at a private lunch on capitol hill. trump reiterated a wall on the border of mexico is needed to stop what he describes as a humanitarian crisis of the legal immigration. the president told reporters that during today's private the president told reporters that during today's private lunch quote "there was no discussion of anything other than solidarity." >> we want border security. we want safety for our country. for 25 years, that we have tried to do this, this is pretty bad. speechesive you 15 made but i don't think you would enjoy that. mark: the partial government shutdown has been in its 19th day. execute president -- mexico's president is offering a muted response to the televised

address last night. when asked what his administration thought, on the comments, president over door to answers "not going questions generated by the internal situation of the united states." he added his government is " persuading, convincing the government of the united states that the best thing to stop the migration crisis is development of the countries of central america and of mexico." 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: mark, thank you. walkout, house congressional leaders of both parties emerge from the meetings with competing narratives about how things went down. senator, chuck schumer, said the president walked out of the meeting calling it a waste of time which the president echoes in a tweet.

republican congressional leaders remembered it differently. you have been speaking with both -- nancy pelosi and others. let's start with policy. what do they have to say? >> we just spoke with them and speaker pelosi said she did not see this as a serious negotiation. she called it a petulant president, that you can't speak --h someone that prevents presents his perception of reality rather than facts. i've never seen the sides further apart. we spoke with kevin mccarthy after that and he said how can you negotiate with someone who doesn't provide a counter offer. both sides were saying the same thing, but two reporters, not to each other but -- but to reporters, not to each other. romaine: i wonder what the republicans in charge of the ofate, we have any sense what mitch mcconnell and the leaders there would be willing to sign off on?

>> we are at an interesting the house hasuse passed appropriation bills to open the government. these are bills written by senate committees led by republicans. the pitch from democrats is there should be no reason why these are controversial. they have no democratic writers, and these have wide bipartisan support in the senate. the problem is, mitch mcconnell has said he won't put something on the floor the president donald trump doesn't publicly say he supports. to avoid a situation like right before christmas when the senate voted unanimously to pass the appropriation bills, and the president, the following day, decided he wouldn't sign it. --oline: meaning while meanwhile, the 19th shutdown day. what is the impact here? this is wider than just washington. us is affecting, potentially, thousands of people who are not getting their paychecks for example. anna: it's not just federal workers.

it's also government contractors. the people contracted to clean federal buildings. i spoke with a taxi driver who said his business has suffered because there are no tourists coming to the smithsonian museums because they are all closed. i spoke with a 50 50 paralegal who works at the u.s. international trade commission. her office is responsible for reviewing complaints of intellectual property theft. she said her office of 21 people is close, and they are not doing this important government work because their department has not been funded. romaine: when we talk about the here, and not only people getting paid, but do you see rigid wall effects on people who may not be part of maybederal workforce like restaurants or things that are dependent on federal employees? anna: there certainly a big impact in the d.c. area. small businesses, restaurants, people that cater to tourists. outside of washington dc, in

texas, there are almost 9000 employees of the treasury department, so this is a widespread impact. there are national parks in montana and alaska, so it's not just about the beltway. although the local economy is feeling the impact of the shutdown strongly. romaine: thank you, anna. that's anna reporting from capitol hill. isn't just taking a toll on federal bureaucrats. dealmakers on wall street are feeling the pain. companies looking to go public have not made an emergency cut. now, all ipos are on hold including the highly anticipated opening of uber and lyft. for more on the story, we bring in bloomberg law reporter and remoaners.- andrew a dealhard trying to get into the pipeline, nothing is happening. what is going on? >> right now, everything is sort of in the state of limbo. the timing for the uber and lyft

ipo's could be thrown off because of the shutdown. there is paperwork right now. one of my colleagues reported there is paperwork right now at the sec that uber and lyft hasn't received responses to. , typically when we talk about longer-term ipo's, like uber and lyft, they will be happening in the first half of this year or even longer. there's a certain cadence that goes on at the sec. the sec receives the initial forng, it takes 30 days them to respond, and after that, subsequent filings might take 10 days. there is a cadence that gets thrown off when there is a shutdown like this. things could be slow down in the ideal front. caroline: they are massive ipo deals that are waiting, but

there must be smaller ones that want to get out of the gate in january and february. some of the data might be going out of date, right? andrew: right. this gets problematic. their information could go stale, and they are not able to move quickly and launch. this could thwart their plans for doing that, launching in january or february. said it helped move ipo's,he process on 12 but if they didn't get in touch with the sec before it shut down on december 27, things are going to be delayed. romaine: in addition to ipo's, the sec has a lot of other functions. we are talking about 4400 employees or more not at work

right now. what else is being affected despite the ipo pipeline? andrew: enforcement is a big issue. emergency matters and solving markets, protection, protection, market intensity. there's not a whole lot the sec can do. i've been talking with sources , and the effects here things that need to be project quickly. cases that need to be brought quickly like offering frauds, pyramid schemes, and cases involving insider trading involving people overseas. these cases need to be brought quickly and they are not. this could cause disruptions for that type of work. but, when we look at cases that are bigger and more complex and take a while to complete, this might not be that big of a

disruption. if it ends relatively soon, the shutdown. caroline: andrew ramonas, great perspective there. thank you. we will be diving deeper on how ipos will be getting hit on bloomberg television. meanwhile, let's look at what stories are trending across the bloomberg and averse. arminal users are reading goldman sachs's co-general counsel of 20 years is stepping down. he made about half $1 billion working for goldman defended the lender from congress and against the one scandal they had. on bloomberg.com, you can read about the suspicions of the multibillion-dollar leggings seller. former consultant have sued the company on allegations that it is a ponzi scheme.

running a piece on the chrysler building. paid for stake in the building in 2008, and now they have hired -- a live the stories are on your terminal, bloomberg.com, and it tictoc on twitter. up, let's getg technical. warm-up the gtv function because march arts is next. this is bloomberg. ♪ this is bloomberg. ♪

caroline: a quick check of the latest business flash headlines.

t-mobile is the fastest-growing telephone carrier in the u.s.. verizon. eight even their increases are coming at the expense of other carriers. golfhile, shares about giant constellation brands so -- ofst since 2013 alcohol giant constellation increase the most since 2013. the richest person in the world is getting a divorce. jeff bezos said on twitter he and his wife mackenzie have decided to split up after 25 years. according to the billionaire index, bezos is worth more than $137 billion. that is your business flash update. according to washington state law, if you have to down the middle, you have the new wealthiest woman in the world.

romaine: and she's kind of an interesting figure too. in was pretty instrumental some of the early days of the company, getting set up. it will be interesting to see what the next chapter in her life will be with this split off. it sounds like she might still be involved with the company. caroline: and it seems amicable. it was a long statement from jeff bezos saying they had a loving exploration trial separation. nevertheless, they remain cherished friends and she continues to work at amazon. quite -- one of our colleagues wrote [over talk] it's an amazing read. romaine: she gave it a one star review. caroline: perhaps she felt he was tough on her husband. in that review, she said i was there at the beginning and there when he wrote the business model. for smartt's time

charts, the weekly segment where we dig into timely topics with the street's top technicians. abigail: joining me today is chief market technician for mgm holdings. happy new year to you. thanks for taking the time. we retire in about this. the last 10over days gaining 10%. the best ten-day since 2009. the thing fundamentally has changed which takes us to the technicals. we have a huge move up in sentiment. is this the start of something new? >> i think this rally caught investors by surprise. when you judge the sentiment, at the end of last year, everybody was bearish. there were more bears than fingers on my hand. when the sentiment swings so far one way, you typically get a reaction in the opposite way from the market. abigail: let's talk about this in your chart. there is that bearish sentiment reading.

>> on the top, we had the s&p 500. on the bottom we have the aaii bears. that's a survey judging institutional investors and they say are you bullish, bearish, or neutral. from a technical point of view, we like to see massive bears. that means investors are washed up and that means the market is ready to move higher. typically, when you see aaii bears reach above the 50% threshold, that is the signal that the sentiment low is in. that is not mean the market low is in. to 2016, remember the ugly january? that decline into february, we had two readings of 50% bears. that set the stage for a substantial rally coming out from the sentiment point of view. we think sentiment is washed out here. that doesn't mean we are at the lows, but that means sentiment are set that the lows

are potentially close to being fulfilled. abigail: that's encouraging for the bowls. let's take a look at your next charge, the all world index for the 200 a moving average. >> when you look at the msci all world index, not taking into account emerging markets, it gives you a feel of what the global equity world is looking at. too far below or above the 200 a moving average, you typically get a snapback rally. it doesn't matter if it is a bull market or bear market, this has been a strong magnet. here,look at where we are we were 14% below the 200 day moving average. that is pretty rare. on the bottom panel, you look at individual constituents of the msci all world. when you reach readings under 20%, you are oversold in terms of trend. at the end of 2018, we hit 14.

--t means there was only 86% or 86% of stocks were below moving average. abigail: before turning to your next charge, out of curiosity, if we could go back to the last charge a possible, if not we can i talkedo the banking, to the colleague about lower lows. is that a concern to say there is maybe a wash out there? >> the prior lows have been in the 15% range. we have met that's. that doesn't mean we can't rule out a lower low, but that means 80% of the selling is behind us. abigail: so another positive chartier. >> so bad it is positive. abigail: i like that. how would you encourage investors to play this bullish backdrop? >> only to look at the market, especially moving so far in one direction, you want to see what

areas of the market have been beaten down the most. banks fit that category. down 30% from the 2018 highs. top five one of the worst-performing sectors from the october highs to december lows. what happened off of the december lows? banks came into the top six performing industry groups off of the low. we want to look for areas that have been beaten down, and they were the first to rally. if you look at this etf, the momentum behind it has plenty of room to run. one way we can get a price target tier is when you look at prior declines, we typically retrace 50% of the prior move. 50% from current levels is 7% to the upside. we think while it is up 10% from lows, it has another 7% to meet the 50% retracement. abigail: a new year and i love your optimism around it. >> we are trying. abigail: great insight and i love the confirmation through all three charts. thank you so much for joining

us. caroline: abigail, great conversation. after a one-day extension, trade talks have finished between the u.s. and china, we see what was accomplished. that's on asia ahead. this is bloomberg. ♪ s bloomberg. ♪

romaine: now to asia ahead. the trump administration wrapped up their trade talks in beijing. we asked our guests what they believe investors need from a trade deal. >> we just want the deal. we want uncertainty to retract and be lowered in the future. not only for trade description, it's the case for all [indiscernible] thatclear statement planned increases won't happen, and this temporary pause in the trade conflict, which currently runs until the first of march, that that will become permanent and not temporary.

>> they just need a deal. they need to remove it from the concerns of potential stimulus for deceleration. that is what investors want to see. the more opening there is, the better there is. romaine: for more, let's bring in shery ahn. did? get -- we shery: get shery: progress out of this meeting it depends on how you look at it -- did we get any progress out of this meeting? shery: it depends on how you look at it. we got concessions out of the chinese by buying more agricultural products from the united states, but the caveat in the u.s. statement that came out after the talks is that the trump administration now once very viable enforcement of any deal that could come out. they say the official discussion for need of providing complete don't include

effective enforcement. simplecomes to purchases, this is not to do apart. when it comes to ip theft and forced technology transfers, this becomes trickier. these are the structural changes that the trump administration once. -- wants. still, we have not seen anything substantial amount. caroline: we have person after person seeing -- saying we just want to deal. do you think trump will use smoke and mirrors to say we have some sort of progress to calm the market? shery: that is what some people are afraid of. especially the title hawks -- the china hawks. we've seen a similar narrative on gold with a nafta 2.0. a lot of people say it is not that different from the original nafta, however given all of the

-- surrounding the negotiations, president trump can claim a lot has changed. we have seen some concessions coming from the chinese. they keep vowing they will open up their markets more. they have even passed a new law that enforces ip theft more. i think we talked about it last time. or regulations and punishment for companies that infringe on intellectual property. romaine: are there any sticking points be on what you mentioned that we will still have to get through? shery: auto tariffs i think. session 232. the u.s. commerce department comes out with their reports, whether or not car imports are a national security threat on february 17. caroline: it's great to get your perspective. don't miss her on "bloomberg daybreak: asia" at 6 p.m. eastern. that's all for "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s.. have a great evening. this is bloomberg. ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." next hour, from a shut down to a slowdown. how the u.s. government shutdown could delay the most highly anticipated tech ipos in 2019. plus, cracking down on tech theft. u.s. government is using new legal tactics to take on china. and, could elon musk be the voice of reason in u.s.-china relations?