>> i was surprised, effortlessly we moved from the previous resistance levels and 2800, we got above. we got above 2800 a couple of times. here's an interesting stat, the s&p 500 has closed above the 10 day moving average for 38 straight days. that's the longest in many years. also, back to january 4, the s&p 500 has not had a drawdown -- has had a drawdown from its high. that is not normal. caroline: we are 1.5 points down right now in the s&p 500 is completely flat looking at it. interesting moves in volume, the 18%.q we saw volume of scarlet: just looking at the price action over the last couple of minutes, the s&p and nasdaq tick higher as we got toward the close, but the dow went the other direction. you see that in the price action at the end. the energy is the

best-performing s&p sector. even in these contexts of big days, the consistent theme is that this is not a big week for volatility. caroline: we seem to be trading in ranges. let's get a little under the hood. abigail: let's break down one of those ranges. we look at the chart yesterday and it is worth revisiting because the 2800 level is so important. the key takeaway on the one your chart, it is a range, a battle between the bulls and bears. 2800 with a sticking point last year. that is where the sellers show up. that was especially true in the fourth quarter whenever the by the dippers tried to make an attempt to succeed. buyers backede down and the reason i would like to take a look at it again, it looks a little more obvious. you can see the sellers or more so in action and it suggests we

could find this that we had last year. perhaps back down toward support within this range or 2600. we will see. emma: talking about action, action for the retailers come tomorrow morning when jcpenney reports earnings. expectations are not high after disappointing announcements of holiday sales last month. we saw the stock fall in the last year, and that has taken the market value of jcpenney down to just $400 million. stock is trading at over one dollar $20 per share -- one dollar 20's and for share -- one $1.20 per share. they are focusing on women's apparel. a core segment for jcpenney.

we will be looking for more detail tomorrow as we expected turnaround on its way. romaine: all of the major u.s. health insurers are down today. unitedhealth group, well care, the whole lot of them. 4.5 percent,s down the biggest drop we have seen since november of 2015. all of this because of the head scratching bill that came out to democrats today. it's a 120 page legislation piece that would replace most private health insurance by americansll into the medicare program. it's unlikely it should get enough votes to pass, but it has a lot of cosponsors which is enough to make a lot of noise. many think there is headline risk and they are saying use it as a buying opportunity, but analysts think is headline risk

could re-persist and reignite the talk over health care carrying into the election next year. investors beware. scarlet: thank you romaine and the markets team. earnings coming through. booking.com shares are falling in after-hours trading. let's give you the outlook, because that tends to move the stock price the most. first quarter adjusted eps is anywhere from $10.90 to $11.20. expecting $12.88. you see a drop of 5.5% in after-hours trade. --ther simile falls similarly falls shy. for the fourth quarter adjusted cbs, -- eps, it does be the outlook. caroline: meanwhile, john blown, the billionaire kind -- blown --

balown, the billionaire behind this -- that's as well fourth-quarter 2018 results. that has beenany focusing on europe and moving away from the latin american part of the business and caribbean part of the business. this is part of a turnaround. we will keep an eye on other earnings breaking. in the meantime, with us is eddie and sarah ponczek. eddie, goldman sachs is saying the worst of the economic downturn globally is over. u.s. and china's economic slump, we are passed it. do you buy that argument? eddie: not sure just yet. i still think there are a lot of problems out there, china is

working on their economy and i think it's far too early to say we are clear of those hurdles. also, even in the u.s., where i'm still optimistic, but i still think there are big problems with china and other areas of the world. the idea that the fed targets the stock market or that this bed put is out there. this seems to be taken more seriously in light of the fed's response to turmoil lately and some things that chair powell himself has said. do you buy that? what do you make of the fed's view right now on the stock market? eddie: they say they do and they do pay attention to it, but given volatility, i think they were spooked last year when they saw the drop in a lot of construction related stocks in october and november. i think that helped them change their mind.

i think the expectations in the fed futures, that affects -- it is a two-way street. i wouldn't say there is a fed put but they do pay attention to the market. it's clear when their message is not getting a crossed, they change their communication strategy. powell is much better at this than previous chairs. scarlet: you certainly gotten better since december 19. we have other earnings as well. coming in with results in the stock is falling in after-hours trading by about 3%. its first-quarter revenue is missing the analyst estimates. that's what happened for the last quarter. for this corn grown -- this current quarter, adjusted eps to -- $.50 to $.53. that is in line at $.52. caroline: let's look at square.

fourth-quarter growth payment volume is up 28%. billion number for the fourth-quarter growth payment volume. perhaps the market set its sights on something much higher. we are down almost 6% in after-hours trading. ,his 50% growth year on year but the income is still a loss. we will be looking at the forecast for next year. this is falling hard. adjusted revenue is $464 million, which is higher than estimated. joe: this is a stock that fell 50% in q4 last year. it's rebounded hard, up about 50% or more since then. now, you can see investors have gotten ahead of themselves with this selloff. caroline: what was the acronym? spam? it was a darling and we are coming off of our lows. scarlet: we are also keeping an

eye on fitbit because they come out with numbers, too. for the first quarter revenue of 570 $19 is higher than what analysts were looking for -- we will have to go through the numbers more carefully to see what about the earnings report investors were not keen on. for now, the numbers for the fourth quarter look better than expected. caroline: this was thought to be a make or break set of numbers and it looks they are breaking right now. checking in the after-hours move, first quarter revenue, they see 161 million to 162 million. the estimate was higher for that. in previous quarter came in line with estimates of $164 million. this is a company without a single sell rating on it.

it seems to surprise the market significantly with what his record revenue, but it was a make or break quarter after the share gains we saw leading up to this. ofrlet: eddie elfenbein crossing wall street and sarah ponczek is still with us. sarah, we had a lot of data and we would get more data tomorrow, including pce in the fourth-quarter gdp numbers. -- keyed in our are thesestors -- investors. sarah: it stated. we need to see what is next going forward, however, it's another clue into how the u.s. economy is doing. consumer spending has largely been downgraded the cousin of the retail sales number we got, but investors will want to see how is spending on services doing. what are other components under

the hood looking like? i wouldn't say it is as important as usual because the data is they did. -- is dated. joe: i want to get your take on these hot tech stocks. some of them have had and somenary months got clobbered. where do you see where sentiment is toward the darlings of last year? eddie: it is interesting. i think we are seeing a where before names it all moved as a group. we are seeing a breaking up of that. it's not so much tech, but what in tech is doing well? what is having better outlook's for the year? for example, microsoft has looked very good where other are not as rosy a

picture for 2019 and beyond. scarlet: that is eddie elfenbein . take you so much. and thank you to sarah ponczek as well -- thank you so much. and thank you to sarah ponczek. that's it for me and the closing bell. indiak at pakistan and and the ramifications of all of that. this is bloomberg. ♪

caroline: i'm caroline hyde in new york. romaine: i'm romaine bostick. joe: and i'm joe weisenthal. caroline: let's gaze straight to the earnings recap we see. we're looking at the laggards.

squares up by 6%. this is in the company -- this is a company that ramped up since december. the numbers are not quite hitting the mark. 28% growth in overall revenue volumes we saw. the market wanted 29%. they're forecasting fourth-quarter -- fourth-quarter -- first quarter estimates that missed. they're not quite delivering. it seems their 2019 adjusted earnings outlook is below the --k -- actually, i have vote actually, i head of expectations. romaine: a lot of growth over the past few quarters was because there was not a lot of competition, but now everyone is trying to get on the -- in on this game. caroline: especially when you get the cloud area and fitbit is

falling. another one that has ramped up more than 50% since december. we have to remember where we have come from. this is such a darling of the hedge fund. it is amazing to see this drop. i want to turn to another company we are looking at in the apparel state. ownsnd, the company that the torilla secrets and other brands, their eps is coming in above estimates at $2.14 per share. the estimate was for two dollars patent percent or -- two dollars -- $2.08 per share. tooline: this didn't manage meet the mark. let's have a quick look at president trump and kim jong-un. they began the second summit on an optimistic note. the two leaders should kansan made remarks with the president saying this meeting would theirlly be equal to

meeting last year. shery ahn is reporting live from hanoi. set the scene for us. what is it like there? it's before the crack of dawn and it is pretty dark. still a better day than the first day when president trump and kim jong-un met. it is a bit drier today, but that's meeting last night was a bit more friendly than what we saw back in the singapore summit. the leaders joking they had an interesting dialogue when they had the one-on-one and dined together. secretary pump it was there and conjunct own' number two -- kim jong-un's number two. sort ofquestion is what progress we can make.

there has been a sense of urgency. president trump saying he has not backtracked fromthe de nuclearization pledge. kim jong-un was requiring a lot of patience in the last eight months to get some sort of progress. trump seems optimistic and he tweeted after the meeting thing the dinner was great and he is looking forward to the conversations tomorrow. which would be in a few hours time this morning and hanoi. joe: the kimchi looked really good. in terms of the schedule going forward, for people that want to watch the action, what time are we expecting to hear from trump and further public comments? shery: they will have another one-on-one sit down, also an expanded bilateral meeting and a working lunch. we have plenty of time for the leaders to get face time, but the focus will be the statement

expected to be signed this afternoon. what sort of progress could we see on a denuclearization deal? also, could we get the declaration of the end of the korean war? those are the key questions at this moment. for the unitedp states seems to be perhaps easing of curbs on travel and humanitarian aid to north korea. president trump said the singapore summit was a success, but he's expecting a better outcome this time around. joe: thank you shery ahn. it will be a long day. for more on these stories, don't miss "bloomberg daybreak: asia" at 6:00 p.m. eastern live from hanoi. let's bring in bruce clear, the former cia deputy division chief for korea and a senior research fellow at the heritage foundation. he joins us from washington. great to have you. what, in your view, has happened

since the first summit that suggests further progress can be made? bruce: not much has happened. there has been no denuclearization of any kind of since singapore. there are reports they have expanded and refined their production facilities for reentry vehicles, missiles, and mobile missile launchers. in singapore, we had the president except another vague, poorly crafted agreement like previous u.s. presidents that did not clearly delineate their requirements. the denuclearization section was weaker than the one in 2005. in the press conference afterwards, trump surprised our allies and pentagon by declaring an end to allied military exercises. we've canceled at least nine since then and north korea did not reciprocate. as he was commander on the peninsula said, they are engaged in a million man winter training

cycle that don young does every young does every year. romaine: we talk so much about denuclearization. i'm wondering why we have not heard a little more discussion about the biological and chemical weapons that several reports said the north koreans have been developing for years. 11 u.n.nder the resolutions, north korea is required to abandon not only its nuclear missile programs in their entirety, the arsenal and production facility, but biological and chemical warfare. i think that issue is even more complicated than the nuclear issue. it requires a whole new set of inspections and experts. right now, the focus has been on nuclear and bringing in the missiles, hopefully into this summit and the last is something that has not been discussed before. the ecw will be seen as a bridge

too far. it's hard to get progress on nuclear and hopefully missile as well. caroline: are you optimistic there is enough progress to be made to get people around the table? the six countries, china, russia, japan, north korea, south korea. we have hints of it from russia and tweets from trump. will we see more people at the table? bruce: we have to get progress at this summit, and there are concerns on whether the president is so eager for an agreement that he will lower the bar on what is required under the 11 u.n. resolutions or that he will declare victory on things that are either -- that have been achieved before or things that sound good but really aren't a good idea, like a piece declaration. we should try to get back to multilateral focus. is always describing the nuclear issue as a u.s. versus north korea issue. we have pointed out that the

yuan resolutions are multilateral and requiring north korea to take action. u.s.-north into this korea aspect, it makes us look like the backup and other countries like south korea can't be the good cop to offer benefits -- can be the good cop to offer benefits. it's the yuan community requiring north korea to take action. joe: what would be the consequences of a pre-announced and to the war? bruce: a peace declaration is getting a lot of focus. the president is likely to focus, but it is something north korea has been looking for decades. symbolic,itical, meaningless document that does nothing to reduce the north korean nuclear missile or conventional force threat. risks beyond not to come pushing anything and reducing the threat. it could further undermine international resolve to

maintain the required you and sanctions until north korea's triggering behavior is eliminated. it could be a slippery slope on the security side. if you have a meaningless piece -- peacen p declaration, why do we have carriers in the area, and all those issues? instead of a declaration, we should be working toward a peace treaty. have --at, we need to we need to address the north korean conventional threat. gestures like a steps we had in the conventional armed forces in the europe treaty were recapped the military forces, send them out from the contact zone, and that reduces the threat of a warsaw pact invasion of western europe. caroline: thank you, bruce klingner. bringing out the perspective and

current senior research fellow at the heritage foundation. meanwhile, michael cohen continues testimony over the house oversight committee on capitol hill. we will bring you any developments. this is bloomberg.

romaine: we want to recap a few earnings because we see severe share reactions after hours. square is down after missing on its gross payment volumetric. we see l brands falling after giving the week forecast for the year. box also reporting their shares are moving lower as well. caroline: we are breaking news on the deal as well. be bots.s looking to its top holder does not support

the deal. we will have more after the break. this is bloomberg. ♪ s bloomberg. ♪ you.

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mark: i'm mark crumpton with bloomberg's first word news. -- michael cohen casted him as a best casted trump as a racist in a command who lied about his business in 2016a throughout the prudential campaign. public testimony today before the house oversight committee, he tested -- testify that trump knew that damaging emails from hillary clinton would be released. republicans on the panel were not swayed. important to you, to

look appear and look at the old adage, liar liar, pants on fire. no one should ever give you credibility. it is sad. >> it seems there's not much he won't lie about when you stand to gain from it. the prosecutors for the southern district of new york noted each of your crimes "they are common sense characteristics that each involve deception and being motivated by your personal greed and ambition." he was also known as mr. trump's fixer told the panel " i'm not protecting mr. trump anymore." vietnam, the president and kim jong-un projected optimism as he opened talks about curving pyongyang's pursuit of nuclear weapons. the white house says the schedule for thursday promise a signing ceremony after the summit

concludes. mps will have a chance to block a no deal brexit and get a vote on extending the exit day if no agreement is reached. that is something the prime minister wants to avoid. 50, the government's policy is to get the advising changes so a deal will be brought back to the house in the house can support the deal and we can leave on the 29th of march with a deal. mark: fighting between india and pakistan has raised the possibility of a war. pakistan says it has shot down two indian jets and captured the pilots. down aays it shut pakistani warplane after it violated indian airspace in the kashmir region. pakistan's prime minister has called for negotiations saying better sense should avail. 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. as is bloomberg. caroline: $71 billion search for celgene seems to be on tenterhooks. investor welling agrees the store markups should be an active business development but don't believe a celgene transaction is an attractive path forward. another active investor nominated five directors to the --rd of bristol meyer's crib bristol-myers squibb. let's talk politics. we talk brexit with none other than our bloomberg editor in chief. there is back and forth in the throes of political drama.

it seems this is getting quite amazing in the u.k. right now. >> it may just be the can is kicked down to one bit of the road to where it's quite difficult to push further. and now looks as if on march the 12th, we will have a vote on theresa may's deal. as mark crumpton laid out in the news. after that, if it does not get through, which i suspect it's likely they will then -- likely it won't, they will then rule out no deal. meanwhile, a fact that a deal could get through, that got to little bit more likely. joe: we've seen a little improvement in her odds. hard liners say maybe we can support the current deal with a few changes. how much of their willingness may be to back the deal as a function of labor endorsing a second referendum, teresa opening the door to an article 15 extension, and the other no brexit. >> it's like a poker game.

you are shaking down the other people. jacob, who has always been the purest of these people, is beginning to say maybe i might. i would support may's deal if the alternative is no deal. that's the point. it's a situation where nobody has a perfect outcome. amaine: why are we seeing little more softness on the eu side of this and the prospect they would even consider extending this? john: to be fair, i think that was one thing we could all slightly predict. on the one hand, the eu will never give that much, because they finally managed to make this deal, there is a lot of sympathy for ireland on the idea of standing behind the irish part of the deal, but the whole history of the eu, which i have lived through, is that you keep negotiating and at the last minute, you have a massive panic and compromise emerges and you kick the can down the road. british havethe

got themselves out of this thing, so they stand a terrible chance of being ejected without the deal. caroline: and this is something front and center of investors minds and businesses mines. two businesses feel this poker game is played slightly more in their favor? john: on the whole businesses --ld, on my reading and reading, if there was a chance of britain remaining happily inside of the eu, they would love that, but their second option is some sort of variety of may's deal with the british come out and they still keep some access. city,ot too awful for the not as if everything goes wrong, but two things they don't like it all is, one, a no deal outcome, which does look chaotic. even the europeans, that is

beginning to frighten people. the other thing, i don't think a jeremy corbyn government is popular. joe: how much is the prospect of a jeremy corbyn government at some point in the future been weekend by the recent defection? john: i think it has been. up to that point, he was a terrifying figure inside of the labour party. the way in which the corbyn takeover the labour party has worked is the idea of this man who was on the extremity of what we knew about labor before, and he was never part of any meeting during the brown days or miliband days. milesly, this guy pops up from the left of bernie sanders, on the scale you can't even begin to appreciate. you come somewhat close to what jeremy corbyn is if you'd take bernie sanders and doublet. he brings a group of young people and this force of momentum who go constituency

after constituency to deselect people that don't believe in that. the moderates fought that or tried to hang on to that, focusing only on the labour party. who talksee people about maybe 30, 50, 60, 70 labor mps who could conceive of a breakaway. you have to clear up the anti-semitism and it is a really big thing inside of the labour party. the second thing is remain, which he is on a bit. the third is, you cannot be as left-wing as you are. caroline: fascinating, the way in which the lands are shifting in slow motion. john: the history is right, the whole history is right. end.ght have panic at the isn't that reassuring?

caroline: john micklethwait, as always, great perspective. staying with brexit and the money manager who saw the subprime mortgage market move has stayed away from markets in brexit and he says nobody has a freaking clue and it is foolish to take a position either way. however, he is shorting and has -- has been shorting metro bank. he's looking to short more. romaine: he said it is about 6% of his strategy. as a process of elimination, figuring out on your own. joe: i don't get that it is full hearty to take a position either way, but i'm shorting one region . [laughter] caroline: we will see and we will dig into the story on bloomberg and bloomberg.com. topwhile, president trump's trade negotiator is dialing back expectations for a trade deal

with china. emily chang has an exclusive aterview with the vice chair stanford sports summit and asked him about the impact of ongoing tensions. >> the dialogue between the u.s. and china is going to be a continuous dialogue. trade is not the only issue. there are issues on intellectual property, issues on industrial so i expect that will be a continuous conversation. iscourse, the tariff itself an enforcement mechanism, but if you look it all he by the's business is driven by domestic consumption and corporate digitization. caroline: to catch the full onerview with joe tsai "bloomberg technology" at 5:30 p.m. eastern time. from new york, this is bloomberg. ♪

caroline: michael cohen is back again for more testimony. he continues his testimony on the house oversight committee on capitol hill. we will bring you the developments. tune in to bloomberg's terminal if you need it. the largest private equity gathering in the world is kicking off in berlin. then kelly sat down with carlyle group co-founder, david rubenstein, and that is where he topics.er many >> we thought that when we turned our late 60's or got close to 70, it would be a good idea to have the younger people running it. we asked two people to run it day-to-day. become executive

chairs, bill and i. we have influence if you are a big shareholder, and bill is still in co-cio. i do spend time on other things. i this my money outside of carlisle -- carlyle. i'm the chairman of the smithsonian, chairman of the library of congress port, and chairman of the council of foreign relations. i generally have a tv show you may know on a very good network. maybe the best network. jason: i think it is the best network, absolutely. what have you learned in this new role? it's not that different from what you were doing before, but as an investor, how are you going about that? david: i'm doing some of the things i did 20 years ago, i'm

spending more time on investments and more time directly with the younger professionals and i enjoy it. one of my daughters works in a family office. we have a good team of people. i'm reliving my youth. jason: what has been the biggest surprise investing your own money all over again? you boys been doing it to some extent, but this is really yours and your family's money. david: my surprise is that there are a lot of people out there that don't think i'm too old to put their money with me or have me invest with them. i don't think i will live for another 30 to 40 years, but people are willing to have me and that makes me feel good. jason: i would be interested in your thoughts on wealth right now. we are at such an interesting political time and you have been very involved in the giving pledge. of are part of a cohort philanthropists who get a lot of talk -- give a lot of talk to it. david: in the united states, there is a feeling the wealth

disparity is so great that the government needs to do something about it. you will see it in the democratic primaries, a talk about wealth reorganization. you can't just tax the people in the forbes 100 and solve your thisems, and i think probably helps the republicans politically. the more people talk about wealth access and higher state taxes and higher taxes on people of certain incomes, you will get people saying i don't think i could support that party. you have to wonder whether some people in the democratic party that talk about this are plants by the republican party to get more attention on to the fact -- if democrats got control of some of these things, it would not be good for the wealthy. there's no doubt that some people visible on the wealth changing situation are probably people that help republicans. jason: where does that and in your estimation?

we are -- in your estimation? david: i don't think there will be any textile between now and the next presidential election. there's nothing that the house would pass. in the next presidential -- in the next presidential election would be one by trump, i don't think you will see a lot of changes. if one of the democratic candidates were to win, there would be more change. jason: so more regulation is not coming in at the moment. do you think there will be any changes that would materially affect private equity anytime soon? david: i think private equity is generally regarded as doing a good job. i don't see a lot of regulatory push. interest, i don't see the house of representatives passing a major tax bill that the senate will also pass.

therefore, i don't think there is likely anything in the next presidential election. jason: macro economically, what is your biggest concern? david: the biggest concern for the last couple of years is can the economy keep grow at a rate that will escape a recession. at some point, the economy will slow down. the other concern is the amount of debt. $22 trillion of federal debt and -- 1.3 1.3 chilean trillion being added this year. jason: one of your former colleagues, the chairman of the federal reserve, you have interviewed him, jay powell. what you make of the job he has done so far, especially given pretty dramatic change over the last few months in terms of interest rates? jason: he had a difficult situation -- david: he had a difficult situation. whoever was in his position would have to normalize rates and he did that.

that was david rubin style -- rubenstein. romaine: it's time for smart charts, where we walk through the latest market analysis with the streets top technicians. abigail? abigail: joining me today is mark newton from newton advisors. great to have you here. there is so much focus on stocks with the s&p 500 on its rest previous years. we will start off with the foundational asset class versus the dollar. mark: the dollar has showed increasing signs of stalling out , and i believe we are peeking out. we have growth, but overall, longer-term consolidation. dollars should start to have further pressure to the downside over the next few years. my thinking is that is good for em and china.

abigail: you would think that would be the case, but you would think it is true for copper, the commodity. mark: we've seen a decent push-up in a lot of the base metals and copper in particularly being engaged for economic strength. we are set to make the highest monthly close over the last six months. you see the longer-term breakout that happens from 2016, minor consolidation, it seems to be turning back higher. 33277, that would be very bullish for a continued bounce in this metal. a lot of these fears about the economy turning down and it could intentionally be unfounded if copper has a turn to the upside. abigail: a pretty strong range as well. china is the biggest user of natural resources. let's take a look at this long-term chart of stocks. mark: this is the fx i for china, the large-cap etf. we have seen the highest monthly

close, with only a couple of days left in february, since early 2018. this breaks the entire downtrend for fxi. that's fairly positive. my thinking is that we could see further strength in china and the intermediate-term. some of that is dollar related. abigail: i said i wasn't going to challenge you, but you don't think we will see the fxi go back onto long-term support? mark: i don'tmark: -- mark: i don't. you might get a pullback. it has had a 15% move in the last couple of months, but i think pullbacks should be viable and that coincides with dollar turning down with a bit more aggressive force. abigail: mark dayton of newton advisors, thank you for joining us for smart charts. from new york, this is bloomberg. ♪ bloomberg. ♪

joe: pakistani prime minister --

the pakistani prime minister is planes for talks after were shot down. analyst south is it -- south asia analyst joins us now. how are the reason flareups s similar and different to previous episodes in the past like this? >> the similarity involves the fact that you had a militant attack that had a significant casualty accounts, and india did a strike several days later. then, pakistan disputed the strike. best the similarity, but the difference is in the kind of strike. what you had is the indian side launched an airstrike and went , and the next day, you have the pakistanis launch

an airstrike against the line of control. one key difference is that we are an escalation in the kind of format both countries are using to do a retaliatory strike. romaine: if this were to escalate into something beyond this tit-for-tat we have had so far, what is the extent this would broaden out beyond those two dubnation's? are there other nations that -- nations? are there other nations that would get involved? >> if you look at the heart of the india pakistan rivalry, a lot of people look at the fact that china administers a part of cashmere. china, if there was going to be a serious escalation, you would quickly see china tried to spend a more active mediating role. u.s. is a military partner in various capacities to the india and pakistan. you might see the u.s. try to

play a mediating role. caroline: u.s., russia, china is all calling -- are all calling for calm. do you think the calm will prevail and do you think emery othersl be able to bring to the table? faisel: there are a couple of situations to consider. india said they would give a response and they did yesterday. i can stand gave one today. -- pakistan gave one today. take the choose to situation and try to ease off the pressure in the military front, in terms of the airstrikes, and they can ratchet up diplomatic pressure across the line of control with cross-border firing, but if india decides pakistan does need of older, stronger response and do decide to launch another strike, you could see an escalation. caroline: we will hope not for that. thank you.

on that note, that is offer "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s.. joe: have a great evening. this is bloomberg. ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." the next hour, a busy day on capitol hill. president trump's former lawyer, michael cohen, accuses him of criminal conduct in a hotly contested house hearing. separate hearing, robert lighthizer says the administration is pushing for a deal with china that includes significant structural changes in beijing's economic m