sarah: it really has. very much so because we are seeing the individual names in the index outperforming. at the same time, when you think about u.s. and china the it makes you think is it affecting the underpinnings of the market. 500, butn the s&p still green. >> just barely. the nasdaq the out performer. we get fedex earnings later. earnings report took investors by surprise with that disappointing global outlook. joe: it will be interesting to hear what they say about trade. caroline: and they global bellwether as well. let's get the analysis. with so much action from

investors today, higher earlier, then lower. just about flat now. let's look at the technicals. this is the s&p 500 last all-time high. thatchart would support range. if you extend this back when , but 2600 is well-founded the near-term range is well-founded. we have the monster rally reversing. level ofck below that resistance. we could see choppy trading towards 2700. we could move lower if that asgestion continues to hold it has. >> one of the biggest u.s. ipos last year flew under the radar.

today, it is having its day, shares up 18%. it is the brazilian version of square. it sold shares to the public last october at $24, then fell below that ipo price. it has rallied off the lows it 70% from itser, up ipo price. i should also point out this company has some very big ,nvestors, berkshire hathaway walmartas the heris fortune, 3g capital, and ant financial. >> now does a market that does not have earning estimates going

up, that can't get a trade war resolution, show strength and resilience? real yields keep falling. the three-month correlation realen five-year yields in the s&p 500 is at one of its most negative levels in history. can that persist tomorrow? that will be a big question. this relationship holds across asset classes, credit, gold, etc., and you have seen five-year you yields come off their lows and the stock market start to crack a little, especially in rate-sensitive sectors. caroline: fedex out with numbers, a miss, third quarter earnings at $3.03.

that was down significantly from the previous year. revenue, $17 billion. that is a miss. earnings per share was set to fall. the market down 3.7%, almost 4%. joe: we have the quote "slowing global macroeconomic conditions" continue. they also cite costs as a factor hitting earnings. their outlook on the global economy is still not good. scarlet: this is the fifth straight quarter that fedex has fallen. this is just the first take. we will see what happens tomorrow. quarters, fedex has phone the day after it's reported its results four

straight times. the previous time it plunged 4%. caroline: this is already down 28% in the last 12 months. many thought this was a buy. scarlet: canada forecasting a $15 billion.t of it sees its debt to gdp ratio by 2023,wn to 28.6% versus just under 31% in 2019. not much movement on the currency, stronger at the moment. caroline: let's bring in matt and the sarah. matt, your take on earnings, global bad weather' bellwether . >> earnings will be in a soft patch this quarter, especially

companies that have exposure outside the u.s. when you look at companies with revenue outside the u.s., you could see double digits that will weigh on corporate earnings. we saw in the energy patch. we are seeing it now. our expectation is this is a soft patch and we will get through it. scarlet: isn't that everything in the s&p 500? exposurep 500 is inside the u.s.. outside the u.s., 30% on a revenue basis. many companies are globally exposed, but it is not the dominant exposure. joe: i mention the fund manager survey. it says one of the tail risks with china. that is confusing to me. we talk about that all the time.

it is striking the concerns overseas are not going away. they are top of investor mind. when you think about what this survey did show, equity investors across the globe are this is seen as its own tailwind. bank of america are saying investors are underinvested, sitting on the sidelines. if you get what you need, that could boost markets as people feel comfortable to get back in, but what is that next catalyst going to be? scarlet: matt, how do you position? >> stay with quality companies in the u.s.. we think earnings will resume in the second half. you want to stay there and look to international markets as they bottom them in particular asia. equities over time.

scarlet: thank you so much. we have fedex falling in after-hours trading after third-quarter adjusted eps in revenue both missing estimates. $15.10 --er share of $15.90. the stock falling in after-hours trading. that does it for the closing bell. "what'd you miss?" will dig through these numbers and get expert analysis as well. this is bloomberg. ♪ is bloomberg. ♪

♪ i am caroline hyde. joe: i am joe weisenthal. caroline: markets closing mixed. joe: the question is "what'd you miss?" caroline: trump says trade talks are going well. mrs.,ng news, fedex blaming slowing conditions and weaker global trade. rebuilding public education, meet one activist investing millions to improve schools. begin with mixed messages out of washington. negotiators telling bloomberg they are concerned china is pushing back against american demands. that is not weighing on president trump, who brushed off the issue during a news conference and said trade talks are going very well.

let's bring in the senior fellow at the council on foreign relations. one of the interesting aspects of this administration as you will have different factions within the administration with different goals, different senses of what is going on. when you look at what is reported on what china has offered on things like intellectual property, can you see issues or concerns on the chinese side? i think the first and most obvious thing to note is .egotiations tend to stretch on without a scheduled summit, there will be more time to haggle. it is hard to know if china is really walking things back or if something not entirely clear remain so. what struck me most is there isn't yet clarity about the path

to removal of u.s. tariffs, and i don't think it is realistic for china to put its best offer on the table unless they get a clear sign that the majority of the tariffs will roll back. romaine: do you have a vision of what a u.s.-china trade deal would look like? generalnk there is some consensus on the broad contours of the deal. there will be a large chinese purchase commitment at the center of the deal. that tends to be what the president cares most about. there will be some modest market announced,me already the relaxation of jv requirements in automobiles and financial services. there will be some tit-for-tat tariffs that are rolled back. as part of the purchase

commitment, a rollback for soybeans, for example, then something on the structural side. what precisely is in that agreement remains in history. caroline: what remains of ministry is the timeline as well. -- a mystery is the timeline as well. what you get optimistic about if we had some sort of date or timeline? would that be enough? >> it depends on where the you believe we are headed towards a good deal. i don't. china has not been willing to make significant commitments and can train -- constrain its policy ambitions. inse sectors are critical terms of competitiveness, so you're looking at a modest deal that will be dressed up. , first date on the summit

whether april or the g20 in june would be possible. joe: we were originally going to talk about europe, and there has the europeanut how slowdown can be attributed to china and weakening demand. what did they need to see out of china? what is their goal in talks? ,> the great thing about europe the times probably want something quite different. share a lot of concerns that many in the u.s. have expressed about policy. the germans have a concern that the deal with the u.s. not

squeeze out markets. europe has no shortage of its own funds. mobilizingermany be european funds? will -- caroline: i will let mario draghi comment on that. romaine: china is still making progress with its delta and road initiative. africa, other parts of asia, and to a small extent latin america. china seems to be moving ford on the trade front. why aren't we seeing more movement on the u.s. side outside of china? it seems all the talk is about china, but not a lot of talk about our agreements or lack of agreements with other nations? >> there was an agreement reached by the trump administration and our nafta

trading partners. it has stalled in congress. until you get a deal with the democrats on the new nafta, it theard to move forward on other components of trumps trade agenda. trump is looking for a bilateral agreement with japan. there is talk about europe, but that seems the european trying to prevent trump from imposing automobile tariffs. there are various things that your worries about, and the threat of automobile tariffs is right up there. romaine: thank you. up, i look at the politics behind the meeting with brazil's president next. this is bloomberg. ♪

caroline: president trump announced it will make brazil an ally during a news conference this afternoon that gives the country referential access to u.s. military equipment and technology. is the senior analyst for latin america for the eurasia group. anything major an ounce from your perspective? >> thank you. abouts the announcement is anothere, there step announced. president trump has announced his support.

this is something the brazilian government has been aiming for. brazil still has a lot of homework to do when it comes to recovering investment-grade status, but joining the oecd would help. this has been a priority for the current administration. judging by trump's remarks, it looks like they will move forward. comments frome the present president was that he said for the first time in a long time brazil has a pro-u.s. government, advertising the change in stance from brazil. what else does the present president hope for? announced an agreement for u.s. space companies to use a brazil space

station. to make someants progress when it comes to trade, the status ons bilateral relationships to boost trade. negotiating a free-trade agreement with the u.s., which sounds very ambitious today with trump as president. the beginning of conversations administration's has happened, which sends a about brazil's and tensions on trade, lower bearers -- barriers, lower relationsut bilateral

, not anymore on multilateral , but now ons bilateral relations, a new approach for brazil. thank you very much. houston,o the blaze in black smoke billowing over the city for a third day, local officials abandoning a timeline, saying they don't know how long the petrochemical place will continue. here is more on the situation. yesterday they were saying two days come and now they don't know. do they have any sense of how long this could go on, and what are the fears about air quality as this fire continues to rage? >> the fire got worse overnight. a drop in water pressure interfered with firefighting at

to the. a couple more of these tanks erected, so the fire -- erupted, so the fire got worse. they do not know how long it will take to burn. hours, new couple of alarms have gone off. containmentoncrete wall they are worried about, the runoff from the firefighting. they don't want it to breach. if the wall fails, you will have a spill. romaine: these fires are not uncommon. is there any health risks signaled based on the smoke in the atmosphere, where folks in that area would need to be worried? >> this is almost are for the course for houston. --re is a fire or corruption

eruption every 36 hours on average according to the epa. , all the ground level monitors are green. the reason the local authorities site is the plume is going one-mile up, then spreading out, so it is not a ground-level yet. the folks in downtown houston, they look up and see this apocalyptic thing on the horizon and they have a hard time balancing that out with the assurances the air is safe to breathe. caroline: that is a stunning statistic. we are hearing concerns about a lack of regulation and funding for the epa. how realistic do think that is? is that to blame for what is happening today? >> today and yesterday, we noticed all the different

government agencies leaving it up to the owner of the property. that is who is taking the lead. there is this growing sense of discontent, shouldn't these government agencies be stepping in to make sure it is done competently, because the fire has only gotten worse? romaine: thank you, joe. the latest on that fire in houston. we want to return to some earnings. fedex out with earnings. shares falling after the company cutting its profit forecast for the second time in three months. it is citing weakness in foreign markets come specifically signaling out trade as one of the big issues that seems to be weighing on earnings for the quarter and going forward. sayinge: the forecast this is building in no further weakening. they expect some growth in the u.s. and no further deterioration in global markets,

but europe doesn't seem to be bottoming quite now. maybe this could be further headwinds going forward. joe: it is interesting the higher costs in the u.s. the question about the higher costs in freight had been a story that was common in the middle of last year. .t faded a little bit companies were saying we did not hear about it as much last quarter, so to see fedex say that is an issue. caroline: you wonder if this is just a fedex issue. wonder if this is unique to fedex or this is more of a macro issue. caroline: clearly they have been trying to integrate the tnt deal from europe. york, this is bloomberg. ♪

says "allnt trump options are open" when dealing with the crisis in venezuela. in a joint news conference with the brazilian president, mr. trump suggested the u.s. could impose what he described as a thetougher sanctions on nicolas maduro regime. extraordinary and supporting the venezuelan people's efforts to reclaim literacy and democracy. brazil has helped so much. brazil was one of the first nations to recognize venezuela's

interim president juan guaido. i want to express our profound gratitude to president bolsonaro and the brazilian people for efforts to provide humanitarian aid. >> president trump added that "notnited states was looking for anything other than taking care of a lot of people." mike pompeo was in the middle east with his first stop in kuwait. he will travel to israel and lebanon. he is leading the u.s. delegation at the third u.s.-kuwait strategic dialogue and is expected to meet with kuwaiti leaders to discuss regional concerns in kuwait city, and the threat from iran. european unions brexit negotiator says theresa may must eu why the eu -- to the she wants an extension on the brexit that like -- deadline.

>> extended uncertainty without as to the economic costs for our businesses, but good incur a political cost. >> he added the draft agreement the between leaders and prime minister may in november remains the only deal possible, and he warned of the danger that britain might crash out of the eu without a deal, saying "everyone should finalize preparations for a no deal scenario." expressed strong and ongoing solidarity with ireland over the brexit border issue, according to a joint statement with the irish prime minister after the two met today in dublin. added the eu must see what proposals emerge before this week's summit in brussels. by the end of the week, prime mister made is due to set out

her proposal for extending the two-year process of negotiating with a drawl under article 50 rules. 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. thank you. let's get you breaking news. tencent music fourth-quarter adjusted earnings per share at 59 renminbi cents. they listed in the u.s. in december. this is the first earnings report post-ipo. they say 5.4 billion yuan of fourth quarter avenue -- revenue. romaine: let's stick with earnings and move back to fedex. and gave a revenue forecast for the full year below estimates. shares down 5.4%.

we want to bring in brooke sutherland. this is the last time in three months they have revised forecast. when i look at spending and the trends in online shopping and i am confused. doesght, because fedex paint this global slowdown picture. their last report set off alarm bells across the economy as to whether we may see a slowdown in the u.s. with fedex, you have some idiosyncratic issues. 4.4 acquired tnt for billion dollars, significantly expanding market presence in europe. -- wasa with== was that they would be better positioned to benefit from cross-border e-commerce. europe has not grown and they have run into headwinds theyrating this deal, but

are not seeing growth because of bad decisions. joe: they are a bellwether, but unlike ups, which is not down as , fedex really leaned into the european economy. wanted the tnt deal, so they have dodged a bullet. tnt was going through restructuring at the time fedex bought it. billion dollars of accumulated integration expenses through 2021. in 2016. closed they also have that cyber attack. tnt systems were outdated old, fedexlnerable, costing $400 million to rectify that, not taking into account the losses. caroline: notable on a day of more cyberattacks.

what is already priced in? the shares are falling. , so cane has eroded 28% it get worse? >> the optimism is people view tnt as a long-term growth plate. we are finding out how long-term that is. another factor has been the amazon threat and how much of an impact that might have on fedex's future growth. we have a lot of reports about that. people fall on one side or the other. some say amazon is a significant threat, others say that fedex has carved out a competitive moat that will be hard to bridge. joe: now let's switch gears. apple and google are not the only companies rolling out new tech products. recently unveiled its new signature hardware wallet.

enabledbluetooth wallet. it sold over 1.5 million units. joining us now is the ceo. thank you for joining us. that a bunch 2017 of people getting into crypto, corns ledgers and moving -- coins into storage. what has the downturn meant to your company in terms of sales? >> the units we sell are directly linked to the price of bitcoin. the higher the price, the more new entrants. we have been overblown by the interest in nano x. the use case was to buy and hold until now. now people want more to use it. that's why we had to go mobile with the bluetooth.

caroline: you are seeing more trading? you can store assets on the ledger. >> they want to buy, sell, but want to use. getcustomers want to passive revenue from their , this ishe interest the kind of mining you can do directly. so these new use cases are possible. joe: does adding bluetooth add any security risks, increases the complexity, the way other devices can interact? the idea of cold storage is that it is disconnected from everything. ngw you are addi connectivity, but what about the security? >> it doesn't change our security model. operates under the

assumption that it can be compromised. if it was broken, you can only have a privacy issue because you always check on the screen when you sign. even with the bluetooth, that does not change at all. the connectivity and security of chip that, there is a is always cold because the private he never goes online. romaine: i understand have this would appeal to the consumer, but at some point you will have to have people involved on the other side of the transaction can so are you pitching them this product as a link between the consumer buying it from you and how that consumer will use it? , you can usele

crypto on the go anywhere. that can be useful only if you can have use cases in real life. right now people are holding, alongcting, but it is wait before we will see businesses adopting crypto. learned with this crypto winter is you need to be patient. caroline: give us a link of time when we will see spring. one person tweeting that it is already spring, use cases being born now, but when realistically will i be using crypto on a day-to-day basis and when will the erosion in violation with crypto come to an end? >> not only do we have decentralized currencies like bitcoin, but we have new utilization. we will see the dollar on

crypto, unlocking a new kind of use case that will be more mainstream. mid-2020ction is by that we will see a real spring and the market will be back. it will take more than a year. joe: going back to the security side, i get the addition of bluetooth does not change the security model but the idea of using the wallet in stores raises the possibility that someone can come at you with a wrench and say put in your password or i will hit you with this rich. there is -- ranch. rench, so will people carry crypto with them? >> you can have been codes that can hide a part of your assets. -- 10 codes that can hide part of your assets. joe: you can say i only have $10

worth of bitcoin? >> that is true. if you want perfect security coming unique governance. romaine: fascinating. thank you. coming up, the power of education. we will hear from an activist, philanthropist, and cofounder talking about the future of education in the u.s. this is bloomberg. ♪

u.s.ne: half of the 50 states are spending less on education than before recession, and federal funding is being curbed, but there are those stepping in.

our next guest cofounded partnership for los angeles schools with a gift of $50 up to $85ow bumped million come the second largest donation by a private individual to a k-12 education program. the partnership manages about 18 schools, not charter schools, but in the school system, but not altogether. ceo called it a hybrid, a third way of approaching education. can you explain that? >> sure. ,f you are systemically broken you need to fix it from the systemic perspective. system, youchange a have to work inside the system. this required us to go inside lausd, and work with

run the schools on their behalf. they have the oversight. we are able to accomplish a number of things because of the fact that we see obstacles in the system, then we can find solutions. we are doing this for an additional $675 per student, per year, which is very low for a turnaround organization. romaine: you are the second largest private individual donor to the public school system. the largest was mark zuckerberg. of0 billion, by a a lot measures, that was considered a failure. your initiative so far is by most metrics considered a success. >> it is. romaine: what are the metrics used to measure that success? why are you succeeding in a way that others didn't? >> we have done a public impact

report, 60 pages that tells us everything we have succeeded at. our graduation rates, mendez high school started out at 42% graduation. we are now at 90%. this suspension rate and our schools was 22% when we started. 1%, which iswn to amazing. it is all done through metrics. it is all calculated, various state testing. we are 14,000 students, and as a result, we are the size of most midsized school districts throughout the u.s. romaine: why do we need this private money? local governments have always funded our public education with the help of the federal government. people look at large donors and

wonder why we need these benefactors to help public education. what do you say to those people? >> it is public-private philanthropic partnership. there is not enough public dollars today, health care am a juvenile justice, public school -- health care, juvenile justice, public school education , so the philanthropic community has the obligation to step up and to fill some of the gaps in funding. in california, when i went through lausd, we were number two from the top. now we are closer to number two from the bottom in funding, so the resources aren't there. romaine: there has been pushed back from teachers, parents, the community. states hadear, nine major work stoppages by teachers, partly due to some of

the reforms being pushed by philanthropic people or the school administration itself. , what areachers teachers looking for out of their school systems? >> the professional development and the resources and support they deserve. teaching school is one of the hardest jobs in the world. i go into our classroom sometimes and will observe for 10 minutes. i am only observing. i want to go home and take a nap. it is extremely hard work. we have charged our teachers with being responsible for so many aspects of our students' we ll-being. romaine: what is the next step? >> the next step is to become the national model.

we have been contacted by 12 school districts recently from outside california. for the purpose of using our model. we are now putting together a playbook. we are hoping to go out. they houston mayor wants our program, so we will see where it goes. thegoal is definitely to be national model. this can be done. our children are extremely smart. romaine: we have to leave it there. >> thank you. romaine: melanie lundquist, the partnership for los angeles schools. caroline: a quick check of the headlines. congressman has twitter. gained moreccounts than 60,000 followers.

he also said twitter impose a shadow ban. people will now be able to buy things they see and like directly through the app. a shopping feature called check out. joe, you say instagram gets you. so you will be using this? joe: i am worried. romaine: really? caroline: your wallet. joe: i will sit there and think that looks cool, that looks cool, ties, sneakers. not allowed to use anything online that is not directly selling something? joe: is that the future? romaine: the present. it seems like it is inevitable. joe: so many direct to consumer

businesses have been formed on instagram. multiple times i have tried to bicycling on instagram, then i have to get out my wallet. here is the future, right here, right now. from new york, this is bloomberg. ♪

negotiators raising concerns that china is shifting their stance and trade talks, with china stepping back from initial promises, even as the countries inched towards a deal. what is hard for china to agree to with in these ip protections? >> what we are hearing is in the pharmaceutical industry, biotech innovations that could flow into china.

agricultural secretary saying they were hesitant on agreeing to the details around that. right now they are pushing back --those eight of protection data protections of pharmaceuticals, patents as well, which is not surprising. it could be part of the negotiating process, but we have not seen a lot of details coming out from chinese officials yet. romaine: they will get on a plane and go back over there. they will head back to beijing, then the vice premier will come to washington. the key concern is what happens to the markets, right? we have seen so much straight optimism built into this deal, and it keeps getting postponed. will it happen in april, june? caroline: it is interesting you show this chart. forasn't all been rosy

every asian asset class. the hong kong dollar has been feeling this pain. >> when you think hong kong and , you sometimes bundled them together, but a-shares and local money flowing into their and long yuan trades mean it is taking money away from hong kong , hong kong exchanges, and the hong kong dollar in particular. the hong kong dollar has been pegged to the u.s. dollar\ . it has remained in a range since 2005, but given how appealing it is to change hong kong dollars, long yuan, then by a hyphen shares, hong kong dollar has been pressured. caroline: we thank you. fourth-quarter numbers for the uk's figaro cpi out tomorrow. joe: i will be looking at micron reported second-quarter earnings. romaine: don't miss our special coverage of wednesday's fed

decision at 2:00 p.m. eastern caroline: that is all for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪ want more from your entertainment experience?

just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.

>> i'm emily chang in san francisco and this is bloomberg technology . coming up in the next hour, kenchtive bias. president trump claimed that social media companies discriminate against stemb conservative speech on their platforms, adding, we have to do something. plus, google gains. alphabet unveils tuesday a new game streaming service at the game developers conference, marking a major knew foray into the $180 billion industry for the tech