going off the rails for that reason. today, we shrug it off. >> we saw s&p rallying up to buy 5%. : and what jay powell said in his comments is the fed's patient, flexible, and he said that several times. he did talk about the balance sheet returning to normal levels, but it looks like investors are fixating more on the dovish tone. streak foray winning the s&p, longest since middle of september. it's getting to be a real streak here. scarlet: seven gain in nine days for the dow. seventh gain a 90's.

>> we are still far off those peaks we saw earlier in the month. lisa: equity markets very much open and green. credit markets also open. investment-grade bond sales, the biggest of the year. anheuser-busch coming out with a $15.5 billion bond sale including bonds that mature in 40 years, seeking to refinance some of the $20 billion in debt they have coming to over the next three years. a lot of the debt incurred back in 2016 when it agreed to buy sap miller. we are facing, of course, rising borrowing costs. this has been an ongoing theme, especially for triple b rated companies. take a look at the reaction to bond sale.er-busch take a look at the reaction in its existing bonds. this is the applied yield. you can see how much it has risen over the past -- less than

12 months because this was sold back in march. almost a percentage point more they will haved to pay on the new debt versus where it would have been sold a year ago. we will see how that affects their underlying credit worthiness. the s&p 500 down about .9%. bulls really trying to take charge, lots of momentum here, but this chart points to a stall in momentum at the same time. relative strength index on the s&p 500 at the green line or below 30. that tells us the conditions are oversold above the red line at 70. we see that during the rally much of the time period we were

overbought, and this downtrend, especially during the bearish action last year, it is interesting to note the highs of this downtrend are really holding to a bit of a stall in momentum even as stocks climb higher. this chart may suggest that unless the bulls can break out with more momentum that there could be bearish conditions ahead, perhaps accompanying that earnings season ahead. you talk stocks, i'm talking the bloomberg dollar index. we heard comments from fed chair jerome powell today. we seem to be a little bit optimistic. the bloomberg dollar index closing near the highs of the session. you talk a lot -- he talked a lot about how there are favorable dynamics and he also said we do not see an inflation risk as elevated and talked about the averages between optimistic economist views versus more pessimistic market view. he seemed to strike a little bit more of the optimistic tone. i want to look at the broader picture. we did break through some key

levels, but that 200-day moving providing a lot of support for the bloomberg dollar index. a little bit of an uptrend with a 50 crossed above the 100 and june when the 100 crossed above the 200-day moving average, so we will have to see again if this continues to provide support, although we will have to maybe wait until march and get anye decision to confirmation. scarlet: we will be waiting and watching. thank you so much. president trump speaking and taking questions at the rio texas.in he said he would love to do a .uch bigger immigration deal the president also says we have to create a barrier before any immigration deal. if you want to watch the president peak, it is available on the bloomberg at live go. our guests.s,

when i look at the performers in today's market, consumer discretionary is the only group down in the s&p 500. the covers automakers, retailers, and home builders. as we set up for the fourth-quarter earnings season on the commentary we are likely to get from ceo's, what type of companies are likely to have rising power? which type of companies are likely to lack pricing power? >> a lot of retailers should have pricing power going forward. certain high-growth companies, believe it or not, like tech companies should have pricing power, but i think your question is important. pricing power is one of the most radical things for investors to focus on this year. are still biased higher. the service economy is still growing strong. as long as that is the case and demand growth is slowing a little bit, the ability of companies to pass it along should be fairly difficult. joe: we talked about at the outset, kind of surprising the

strength we saw in the market, only because we had so much negativity out of retailers. what is your read on those? isolated and idiosyncratic and not reflective of something broader or is there a broader signal? think is pretty isolated. apparently we had a pretty fantastic holiday season, but certain retailers are being left behind in the holiday story. i think it is pretty isolated. i think there are pockets of the consumer that are relatively improving and pockets of the consumer that are relatively deteriorating. within the consumer space, you have luxury companies, which have a lot of exposure to overseas sales, which will probably struggle to produce strong growth after the growth of just had an also face a difficult operating environment with nondomestic growth slowing. in the domestic economy, you have an improving outlook for lower and middle income consumers that are enjoying pretty strong wage growth.

i think it is really a story of retail company by retail company, not a story that is symptomatically anything going on in the broader economy necessarily. one thing we are watching in the earnings reason is this massive divergence starting to open up between the most multinational companies and most investment companies. the most multinational companies are not going to produce growth, and then they will produce negative numbers, whereas domestic companies are holding up pretty well. that is the earnings story to look for in the season. you lookingind, are at more domestically or smaller caps or internationally focused companies? if we get a trade reprieve, that could help. >> three things you will really need to focus on -- tech company earnings, tech company earnings, tech company earnings. that is really it. in the communications sector, you are looking at 35% of

earnings in its very unlikely you will have a down year in earnings. if the worst fears about trade, etc., are not met with company earnings -- >> we keep seeing this move from faang into software companies, particularly those that have related to buying in some way, the center companies. square and paypal come to mind. >> you could bias yourself, but i would leave that to the individual and a list. what i would say is i do not becausebe out of faang your return on investment relative to the cost of capital, instead of recession, you are going to have massive cash return over the next five years. as long as investors believe that and hopefully, the next date of earnings seasons will support that, mark's higher. joe: your thoughts on tech? >> it is going to be a difficult

earnings season for tech, but if you continue to get dollar depreciation, that will help a lot with the rest of the year. we are expected to see a slowdown for several consecutive quarters. if you continue to get that dollar weakness and you may get a little bit of a trade reprieve, tech can skirt through this the word of weakness. it is a key point -- what is tech now? tech today does not look the same as it did a year ago, so i think you have to clarify what you mean when you talk about tech. scarlet: if we are going to look at tech, tech, tech, do financials for the bank give us any signal for what the economy looks like overall? >> not really. lending growth never really picked up significantly. lending growth were pointing to significant deterioration, it might tell you something, but by and large, it does not bring any signal. we will probably get a greater signal on the trajectory from the global economy.

joe: looking at how different 2019arket feels so far, versus the end of 2018, how much of that is directly attributable to the fed? ofi think a large portion the rebound is a attributable to the fed. at the latter part of 2018, it was clear the fed was interested in offsetting economic strength with tighter financial conditions. you add trade uncertainty on top of that, and lo and behold, you we got in culmination on christmas eve. the fed reversing, so to speak -- they are not dovish, but they are less interested in tightening financial conditions. there has been some hope that trump wants a deal. the has obviously contributed to it, but a lot of this is the fed. scarlet: great conversation. thank you both for your time. that does it for the closing bell and for me. we will'd you miss?" look at cryptocurrencies coming

under pressure. bitcoin falling below $100,000. this is bloomberg. ♪

caroline: live from lumbar world headquarters in new york, i'm caroline hyde. u.s. stock market closed up for the longest winning streak since mid-september. joe: the question is -- "what'd you miss?" caroline: waiting and watching -- that's what jerome powell

says the fed will do before moving on interest rates again. data from the u.s. department of agriculture falls victim to the political impasse. .nd retail holiday hangover macy's cutting its annual forecast while kohl's reported disappointing seasonal trend sales. now for some instant replay. withed chair speaking david rubenstein at the washington economic club of new york earlier today. >> financial markets really quarterg in the fourth with got more volatile and seemed to be pricing in a more pessimistic outlook, which, as i mentioned, seems to be rooted in concerns about slowing growth and a related concern about ongoing trade negotiations. the principal worry i would have is really global growth. if you look at asia and europe, you are seeing slowing in growth. the question will be how much that affects us. it's a tightly integrated global economy and global financial

markets and we quarter will fee. we have an extended shutdown and i think that will show up in the data pretty clearly. particularly from our standpoint, one of the agencies that shutdown is commerce, which had the bureau economic analysis in the census bureau and some of the important data we get is published by them. would have a less clear picture into the economy if it were to go on much longer. carolyn: let's welcome a man who pretty well, was an economist for it, now is an economist for us. it felt like month again desperation to unwind what happened december 19. >> i think that is a clear way to put it. the fed isith waiting and watching. i think we are watching and waiting.

that's just because there's not much that has changed in the last seven days. i do think he was successful going out and massaging market fears that he is not listening toit felt like month again desperation to the markets. we saw in december that there was some issue with what he was and markets responded. >> we did hear a little bit more about the balance sheet, probably more than we need. >> i think he is trying to tell us that things are as they have been and will be as they have been. he said there was significant reduction and literally in the next sentence said it will still be way above where it has been. time,k he thought in real oh, my god, i just said significant. i need to rewind that. they will not use that as an active policy tool unless there is some dramatic change of economic conditions and that is

not what 2019 is lining up to be. joe: they can always cut first. they could just cut rates, right? >> absolutely. when we say cut, i don't think the markets pricing in -- like, a 25-basis-point cut is not meaningful. they would cut a full percentage point because we are entering a really dark period. i think some of this talk about cutting, you'll see right cuts and you will see that happen before the balance sheet. >> they could also say we don't see any full hikes for the here and that would not be a cut but a de facto easing from where they are now. >> absolutely. they could have press conferences every other, they could try to contain the conversation a bit, try to open the conversation. there's a lot of things they can do because the balance sheet is not viewed as a tool of monetary policy. they are trying to get back to a place where they can actively conduct policy.

caroline: how globally focused is the fed in general? they're starting to look globally at the slowdown. look at manufacturing data. >> i think that you have to parse out what is communication and what is policy. the u.s. economy is as close as you can get to being a closed economy for an advanced country. in that sense, the outside world is less impactful than other places around the globe. that said, they cannot say they are watching the fed from china. that is a nod to the risk, to the outlook, not necessarily saying those events will pull down their forecast. carolyn: great to get your thoughts, as ever. missed the full powell,tion with jerome

show.n to our macy's holiday slump bringing down other retailers with it. what it means for retail and 2019 next. 2019 next.means for ♪

: time now for a look at what stories are trending across the bloomberg universe. terminal uses are reading about the new floats in a parade of bad news. bloomberg.com has a story about how residents of westchester county new york, a suburb of

manhattan, are adapting to the private -- the highest property taxes in the union. meanwhile, sales of sit for aily homes sixth straight quarter. and tictoc on twitter is looking at a new report from the west detailing the health and environmental benefits of not eating beef. according to the west, cutting beef from our diets could cut 5% inouse emissions by height and middle income countries. on can follow these stories the bloomberg terminal and of course at tictoc on twitter. e: the christmas retail boom in the u.s. may have turned into post holiday gloom. bloomberg opinion columnist sarah has it is here to talk more about that. when i look at what happened today, you saw macy's dropped

18%, the worst day it has had on record. then i look at the comp sales they had for the quarter, for the holiday period, and i look at the forecast and it did not seem that bad. they are still forecasting 2% or forward. going what is the real issue investors seem to be concerned about. >> i think this just allow them to indulge their worst fears about what is ahead in 2019. 2018 was a sort of rare moment of pause in the retail apocalypse where we saw consumer sentiment was so strong and these long-term investments that retailers were making in e-commerce and shoring up their stores was really working and investors were starting to get jitters about how long it could last. the macy's results suggested it could not last that much longer. : let's talk about target. they seem to be doing better. investors still punished them. are they showing real traction? >> i think they are.

that increase in comparable sales was really strong. byot of this was driven traffic, right? by getting more bodies in their stores. one thing target has been really good at has been remodeling its blend online and in-store shopping. it has these >> and collect counters position right near the door to make it easy to do a buy online pickup in-store order. they have drive and services were you buy online, they put it in your car at the store. postings were important in driving growth and offer suggestions for what other legacy players should be doing to grow in this environment. caroline: we talked about peak christmas in a way. perhaps this is as good as it gets, but in the earnings season we are about to throw ourselves into, will we get this divest a vacation of companies that got it right and companies that misjudged perhaps the ? scounting

>> i think we will definitely continue to see this winners and losers dynamic. we have not gotten results yet from t.j. maxx or ross stores, but i expect they continue to thrive. they had strong merchandising in the quarter, and i think we will continue to hearlosers dynamic. we from more losers. gap, yet,t heard from for example. i do think this is going to be a bifurcated earnings season for sure. >> let's talk about that bifurcation, specifically along the lines of different classes of retailer. a real demarcation between those three elements? >> yes, i think discounters will continue to look strong. walmart and target, of course, have been really aggressive competing on price, and they really made a strong bid for those toys "r" us dollars that were up for grabs this holiday season and i expect we will continue to see that show up in

their results. i think the middle is a tough place to be right now. like a deal. they like a treasure hunt or they like something that feels as per ration and experiential and macy's is one of those retailers right in that middle ground. joe: who do you think is clearly getting it right that when you expect to see numbers from them, they are thriving, and that is excluding amazon? >> i think urban outfitters is one to watch. have really upped their game in terms of supply chains, being faster in terms of replying to trends and remaking their stores in the anthropology vertical and the urban outfitters radical to be a place where you actually want to go there. it does not feel like an error and it does not feel like a chore. i expect we will see that continue. lululemon is another one to watch. the term lifestyle bland has become -- lifestyle brand has become such a frustrating cliche, but lululemon is one

that actually gets that right, resultedver has to discounting. you, as: great to have ever. a quick check of business headlines for you. ford is launching the structuring of european operations in an attempt to make the business profitable again. thousands of jobs will be cut and the operator will not rule out shutting down factories and a shanking market in the u.k.. meanwhile, the wife of carlos ghosn says she is worried about his health. he made a statement that japanese authorities refuse to tell her if he has been transferred to an infirmary. that is your update. coming up, market uncertainty 'skes a bite out of blackrock

workforce. details next. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first witness. president trump's former attorney michael: says he has accepted an independent patient from a democrat to testify publicly before congress next month. he says he looks forward to having a platform to give a "full and credible account of the events which have transpired." but beforeo testify the house oversight and reform committee which is investigating payments made during the 2016 to silence women who claimed to have had affairs with mr. trump. mr. trump has denied the relationships. former senate majority leader harry reid's has says he would

like to see republican senator mitt romney challenge president trump for the 2020 republican nomination. the associated press reports in hisnterview with k mpr in home state of nevada, that he said of mr. trump come "i have had dealings with a man, i think he is a moral. i do not think he has a conscience." he said later in the interview that he did think there was much more hillary clinton could have done to defeat trump and the 2016 election, calling trumps when "an aberration." president trump today threatened to declare a national emergency to circumvent congress if you cannot reach a appeal with democrats to fund his promised border wall. he spent most of the day in texas near the u.s.-mexico border to draw attention to his case that a negotiation with mom -- with lawmakers collapsed. pres. trump: what i say mexico is going to pay for the wall, that is what i said. i do not say they would it write me a check for $20 billion or $10 billion.

i said they will pay for the wall. if congress approves this incredible trade bill we made, with mexico and canada, but with mexico in this case, they are paying for the wall many times over. mark: the partial government shutdown, the collateral damage caused by the disagreement over funding for the wall, is now in its 20th day with hundreds of thousands of federal workers off the job or working without pay, as the wall fight continues. meantime, union leaders staged to rallies in washington to bring attention to federal workers who were going without paychecks. hundreds of thousands of federal workers are off the job or working without pay as the border wall fight continues. affected workers face loss paychecks tomorrow. >> this lockout is yet another manufactured crisis cooked up by politicians looking to score political points, and american workers are fed up.

pawns.tired of being we are tired of the ones who are always heard. we will not take it. we are going to remember. paul reynold a, president of the national air traffic controllers association, said his union members are "real people with real consequences." hungary's prime minister says he wants anti-immigration forces to become a majority in all european union institutions including parliament and the eu's executive commission. speaking about the upcoming european parliament come -- he predicted there would be two civilizations in europe, one " that builds its future on a mixed islamic and christian coexistence" and another in central europe that would be only christian. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

caroline: thank you. as a managers are under pressure cap blackrock is cutting 3% of its workforce, its largest reduction in headcount since 2016. state street started trimming its management rank by 15%. all of this ahead of earnings kicking off next week. let's get to our reporters. they are a number of issues across asset managers. worried about volatility in the markets, what seems to be at play in the moment? wasn the memo that announcing these layoffs today, the president of blackrock, he cited a number of things including shifting investor preferences and market volatility and uncertainty. picture, they are trying to trim down headcount as they move forward and like you

said, this is the largest number of layoffs we have seen since 2016 on the firm. of: prior to the beginning 2018, blackrock had been on an extraordinary run, the most incredible growth stories in the last decade. their stocks started turning before the market turbulence and october. is there something about their business model that reaching maybe some natural limits, natural size? annie: they are a huge asset manager. they have $6.4 trillion in assets. the question becomes, how much bigger can you grow, especially when index products are so essential to your business and even though the products are growing and growing, there is extreme pressure on products like etf's which is the very heart of their business. etf's. to me about those they rode that wave of passive investing. is there a way for blackrock and some of these other managers like state street to pick it if we do enter some sort of prolonged period where it will not be as popular?

annie: i think that his -- the pivot is passive. the difficulty is the shift to passive means fewer human spread the shift toward automation and financial markets is alongside the passive shift. the cost cuts we have seen recently i do not think of the end. i think markets will move increasingly toward fewer humans. to aine: what does it say certain extent about the moves, the promotions we have seen in blackrock? it seems as though the etf king is becoming a more global strategic king when they look at the management shakeup. think ats clearly are a huge market and they are growing and a lot of people are still surprised by how important and popular they have become in a short period of time. people who are on the passive side, looking at equities in my world, i have seen equities have big stars in trading

because they have seen the move toward passing. one other the growth areas that blackrock season its future? fore: they see huge growth etf spear they predicted the global market for etf's is still on a huge tear. ats have not permeated beyond the borders of the u.s. as much as they would like. that is one area. they also have these growth areas including technology, they sell risk management software which is called aladdin. when you ask analysts, where do they fit into the broader analysis? they say this is a diversified business. more so than its competitors. romaine: we get citigroup earnings on monday and we are kicking off the bank earnings season. is there any hope. ? it seems everyone is dour. what are you hearing? very hopeful.e last time around, the ceos were bullish on the outlook for

banks. the market did not agree. we had a 19% selloff in bank stocks last quarter. the question is going to become whether the ceos can still remain optimistic while also acknowledging the volatility in the markets. whether they look -- they will look tone deaf if they do not acknowledge it or sparked concern and panic if they do acknowledge the downturn. romaine: bloombergs annie, and one , thank you for joining us. and oh currencies -- joe: cryptocurrencies plunging after a calm start to the year. bitcoin flipping 10%. joining us now for more, spencer bogert. he is in san francisco. let's start talking about price. there is a lot of different stories. in your view, what will it take for the market to find some sort of bottom? spencer: for one, we have a regulatory overhang right now. we have seen a number of actions that i think --

what we see is that that increases through the end of the year of 2018 which tells me we will see more negative headlines . i think we need a couple of those to come to fruition. i think we need time. the market went up way higher than it should have in 2017. now we are on the other side care we need time for the building to occur. one thing that is clear is that entrepreneurial activity hasn't come down with prices. romaine: that is interesting. can you talk more about that? shutve seen a lot of folks down or at least scale back their operations. we are also hearing a lot about how the institutional and the more respected, if you will, facilities getting involved in this. if they are not there, are we going to end up with some sort

of position where we never rebound from where we are at now? spencer: we are definitely going to rebound from where we are. isrepreneurial activity definitely accelerating. we have seen some slowdown in the lower quality, some people who were more opportunistic that we are seeing this frothy market and say, i want to get involved in that space. what we are seeing is the cream of the crop is in building. when you have a 2017 that was as huge as it was for crypto, some companies group larger than they otherwise should have and now they are downsizing. their businesses are healthy and a lot of them will survive and we will see more come into the market. caroline: hopefully some of the activity gets wiped out from -- and better projects come to fruition. when is the next killer going to be? when will we see an application of this distributed ledger that is more useful than storing cryptocurrencies? spencer: [laughter] sure.

i can't tell you when the next will be. one of the greatest dax is it going. the big -- the bitcoin story is playing out. this is a multi-decade, multiyear kind of story. it is materializing. joe: one of the things that happened in crypto over the last coins,ne of the bigger the syrian classic got hit with a 51% attack. where people were able to change transaction history. there had to be a halt on transactions, while that was addressed. as prices come down, and as some of these lesser coins lose power, which secures their blockchain, do you expect to be -- expect to see more of these attacks, undermine the entire premise of a coin that they are is this record? spencer: 100%. is an attackthis that has been no people have warned that this would happen. when you have a giant growing market, people are inclined instead of to attack and scale networks, to keep building on other ones.

a more profitable use of their time. in the slump we are seeing, you see more nefarious activities. ultimately, what this tells us is some of these subscale coins are not going to be able to survive. what does that mean? it means we have a power law distribution of coins and we need to pay more attention to things like bitcoin and ethereum. caroline: the bigger players and up winning out. to whato go back romaine mentioned about the institutional players. there was much excitement and we know fidelity is getting into it. not just part of the line. how sure are we about the commitment of institutional buying of these cryptocurrencies? have tremendous conviction. everything we are seeing from behind the scene says this is full steam ahead. maybe there is a couple on the french that were being more opportunistic and have decided they are not going to pursue their plans. but we will see them again in the next all market and they

will restart those plans could something like fidelity, even better than buying the assets themselves, did -- building the critical trust that people will be able to use to enable that institutional inflow. caroline: everyone needs a custodian. spencer bogart, great to the get opinion. coming up, day 20 of the partial government shutdown. it is not just federal bureaucrats feeling the pain. closure, it is weighing on big back and the company trying to fill that gap, he will be speaking to the next. this is bloomberg. ♪ this is bloomberg. ♪

romaine: the partial government shutdown is approaching record legs. tomorrow, paychecks will not be

going out for workers and the u.s. department of agriculture will not release the report. the private sector is trying to fill the gap with forecasts of their own. pro-intelligence is a data and analytics firm. itsill relate -- release own report tomorrow we will welcome in the founder and ceo who is a former vice president for morgan stanley's group. welcome. this is a pretty big report. the january report is usually where we find out what happened at the end of last year. farmers, brokers and traders have a low out what will happen in january. a lot of payouts also occur based off the final yield and production numbers that were reported in january. could have implications for insurance payouts to farmers. that is tied to how much farmers have in the bank to determine what they will plant the next season. this could have affects, not

just for the previous season, but the next season. joe: tell us about what you do and how in the absence of official public sector usda data, people who need to know this can get a feel on plantings? a company focused on all things agricultural grow globally can we have built a data platform that in this point, 40 million unique data sets that are related to global agriculture in any way. over 500 trillion data points linked to agriculture. what we have done is we have leveraged that to build a predictive engine. using a series of machine learning algorithms. to build our own forecast models. when the government shutdown occurred, the first thing we did was say, we should provide free access to data. because a lot of databases were going down, numbers were not updated, and we knew we had access to all sorts of data sets that were being reported from other parts of the world. caroline: it is interesting

because you are using nasa, customers data from portuguese from brazil. of datae in each set that is more fulfilling than what the usta provides. does it outline completely with what the usta gets or is it even more? sara: it is definitely a lot more. they are also complementary. what the u.s. ta gives, strongest for the u.s., but what it does is a gives a good job of taking and aggregating these national level statistics. and creating a global balance sheet. giving you a world of view of it. one of the challenges of doing that for any normal person is the best data out of china comes in mandarin. building portuguese. what we have done is it harnesses that which is how we are automate the process. of forecastingse

things like production and do do betterodels because we have real-time information coming from satellite imagery that updates every single day. as opposed to waiting once a month. you have these real-time automated -- automated transparent models. romaine: have you seen an increase in people coming to you since the shutdown and asking for your data? sara: absolutely. the first thing we did with the shutdown was offer our platform for free. that, thatg obviously attracted a large number of commercial and public sector users to come and access it. with us announcing we will publish an alternative to the wad see, we see a bigger increase. that is a critical report. recent know that in years, there has been a surge in alternative data, whether it is satellites or credit card data or anything else. from agriculture to other areas as well. has this diminished the

importance of the monthly report, in any category, in terms of the market impact? so much of it can be anticipated and it is proving less surprised where the market was before. sara: i think that is why we exist as a company. we believe good, consistent, transparent information systems make markets more stable. this is really had a global scale. you have agencies like the usta that are well-funded and the u.s. that many parts of the world and not have that much funding. in the absence of that funding, can you leverage technology? to build models for india, tanzania, china? which is what we are doing. the power, it becomes highly complementary to it. what it does is it re-purposes potentially how some of these reports are generated and how some of these agencies go about generating these reports. caroline: baby in a future, -- in the -- maybe in the future,

shutdowns will not hurt so much. great to get you here. a busy time for you. coming up, china's number two phone maker losing $6 billion in three days. we will hear about investor fears ahead. this is bloomberg. ♪ bloomberg. ♪

for asia ahead, xiaomi had a wipeout week. second largest phone maker in china, lost $6 billion in three days. for more on the story, let's bring in shery ahn. the reason is the ipo lockup is over, and now people can start selling and they are. yeah, 3 billion shares could be sold. now the controlling shareholders like legions and his cfl, they say they are not selling, that they will hold the shares for another year. that that should inspire confidence. however, we have seen a huge decline. the ceo is confident,

in an interview with bloomberg, he says because 5g is coming up. take a listen. >> 5g is coming very soon. at this point, the demand for smartphones are declining. i believe when 5g finally comes, we should expect to see a peek to the demand for smartphones. i want to ask you to explain 5g. it does seem like analysts are bullish on the stock market? have cut their forecast, but really not as much as the stock has fallen. this chart on the bloomberg, you can see that the price targets have fallen but not as fast as the stock price. the gtv could chart on the bloomberg, you can see it is still in the green. we can also of course -- there we go. still, we are seeing analysts prediction will rebound to a

range of around 16 in hong kong dollars on average. kong dollars. right now, trading at around $10. joe: when apple came out and warned about its sales, there about a chinae problem, and demand problem, and apple problem. it does not seem like anyone is doing great. shery: yeah. samsung has come out and warned about their profits. we have seen lg in south korea talking about an 80% drop in operating profits. really, it seems to be an industrywide issue. new research that market sales could decline in 2018 which would be the first decline in sales in this market, the smartphone market, ever. xiaomi, the brightpoint is they are number one in india. 900 million people in india still do not own a smart phone. caroline: a cheaper price point, the reason they have been able

to take market share is is they make these high-end phones but at a smaller price target than apple. been one of the advantages for these chinese companies. like while way, the vote -- like huawei, vfl. they provide cheap phones when they are really high-end products. wantine: fascinating could to watch. great interview. that we will get more in your shows. more with shery. tomorrow, looking at gdp. more economic data. cpi for december is out at 8:30 a.m. tomorrow romaine: don't miss this, canada's producer reports of second-quarter earnings tomorrow. caroline: that is all for "what'd you miss?" romaine: bloomberg technology is up next in the u.s. joe: have a great evening. this is bloomberg. ♪

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