momentum left the building last year. we are looking for an opportunity where the market puts in a bottom there. that is a really cheap market. we need momentum behind it. caroline: seems to be a buying opportunity, up 9/10 of 1% as we look at the s&p 500. scarlet: scarlet: we are seeing a pickup in volume, at least in the dow jones industrial average. we might be off our highs, but this risk rally continues and you wonder how much it extends to asian trading as well. joe: pretty extraordinary. like you said, off our highs, but not that much. monday was brutal and week basically spent the rest of the week since then the racing monday. well.ne: even uber up as let's dig deeper. : sorry to rain on your

parade, but not everything was higher. the philadelphia; index down about 1.7%, all of this tied to to thesed the exposure companies have -- the philadelphia; conan index -- the philadelphia semicomponent. you also had momentum dropping about 12%, these companies highly exposed not only to huawei but this whole infrastructure with regard to 5g and this rollout. remember, and a lot of these stocks that valid recently sort of lost steam. a lot of analysts now including at raymond james saying the anllout from this huawei b or whatever you want to call it is going to affect earnings for a lot of the companies we just

had on the board and it will be interesting to see if investors are willing to take another try on them if this trade dispute is not resolved any time soon. luke: i would like to look at one of my favorite stocks right now and that is procter & gamble. i would like to show you just how much the market likes this big, safe, defensive stop. let's look at the big forward pe premium procter & gamble demands. we're pretty much at a record high. more expensive than s&p 500 companies in general, and that also holds true for nasdaq companies. p&g is up about 19% so far this year, and this is a stop known for his defensive characteristics, so it outperforms on a day like today when bond yields are rising at it certainly is interesting. joe: thanks, the market team. scarlet: we have breaking news on applied materials, and i mention this because semiconductors had such a down

day. applied materials coming out with numbers that meet analyst estimates. analysts were looking for just under $3.5 billion. $3.4 billion was the number. aboutd materials up by 3.6% right now in after-hours trading, and of course, nvidia will be the one we watch for next. caroline: pinterest coming out right now, the first public numbers since becoming a public company. than expected, $38.4 million, so that is a beat. the $200ahead of million they were expecting. full-year revenue, they say -- at one point $.6 billion or $.8 billion. we are keeping an eye on how many people are still using the social media company. it was more than 250 million,

which surprised me when they went public. joe: unlike some of these ipo's that have not done well, pinterest has had a pretty good market, but obviously, markets not liking what they see. most likely, it's that revenue growth. when you are a young, red hot company, even a slight miss on revenue expectations does not help. caroline: monthly active users did climb. it was seen they are also seeing international growth and average revenue per user also climbing 26%. it looks as though it is that full-year number that disappoints. joe: still with us is doug sandler of riverfront investment group and bloomberg's mike reagan. obviously, we still have this trickle of earnings coming out at the tail end of earnings season. walmart notably today providing a boost. what do you make of what you are hearing from companies and are there any red flags? >> retailers tend to be the most

under pressure, so i'm not expecting big things. one of the things we have liked in the earnings report is most companies say they have already anticipated an impact of trade tariffs and baked that into them numbers, so we do not anticipate a huge drop in earnings estimates because companies have been prepared for this and expecting it. >> companies have been preparing for this and expecting it, but we also do not know how long this will last, how much of a distraction is to company executives who could be doing other things in the meantime. they have to spend a lot of time reworking their supply chain and thinking through the various permutations of how this trade war could play out. >> sure, they do. of thehtning is out bottle, so to speak, with china that i think even before trade discussions we had companies leaving china simple because costs have gone up and they did not get access to the domestic markets like they had expected, so the glue came off the roads a little bit. this only accelerated it. once you know your global supply

chain could be in danger from a political issue, you are no longer going to single source from china. if this gets resolved or not, companies will be moving out of china just to have more places they are getting supply from. scarlet: like health companies in the u k have already planned for all the eventualities. what sets a great example, yes. caroline: another great example is also what is happening in the middle east. how much has oil been a concern or indeed middle eastern tensions? joe: not a lot of people are .ringing up iran he thinks there is a little bit of a rent baked into the yields, there isy, that something back of mine for investors right now but that could move to front of mind really quickly. joe: doug, what sectors do you like? >> we are overweight's all caps. i think a lot of the opportunities are below the

sector level. in health care, for example, we like medical devices and do not as much like pharmaceuticals. simple pricing pressures there. we like aerospace defense but do not necessarily like cyclical industrial, so i think there's a lot of opportunities. along in a maturity of a market cycle, you will want to dig deeper and you can -- deeper and deeper and some of those opportunities are just not in these sectors. scarlet: would your next move the to be less conservative or to get even more conservative? >> a think it's more likely we would be looking to add equities . we are more conservative -- we are still overweight equities, but we are more conservative simply because there's so many things that need to be decided, if it's brexit or china coming out of its slowdown. are they going to pull the rest of europe out of it? these are questions that need to be decided, so we are playing a little closer to the best from an equity bond ratio and our

intention is some of the things get resolved and we start to feel more comfortable going out on a limb, so to speak. >> we might have to wait a bit for that. thank you so much. the to recap some of headlines we got, pinterest coming out with its first-ever set of results and in terms of first-quarter revenue, slightly higher. 200 2 million almost when analysts were looking for 200.8 million dollars. full-year revenue comes in a little shy. 1.06 billion dollars to 1.08 billion dollars. analysts were looking for $1.09 billion. deepening losses, off by 11%. we talked about how the stock has done ok's in the ipo, but these results do not look like they will help that. from bespokeet now investment saying this is not what you want for your first earnings report. you can see why investors not a fan. caroline: does not set a great president.

scarlet: that doesn't for the closing bell and for me. more on trump's huawei plans, plus an earnings from new york, this is bloomberg. ♪

♪ carolyn: live from bloomberg world headquarters in new york, i'm caroline hyde. here's a snapshot of how u.s. stock markets still managed to rally for a third straight day, the best three-day gain in four months. joe: question is -- "what'd you miss?" caroline: president trump takes

aim at china's huawei, china ramps up its rhetoric. why is the market shaking it off? prime minister may once again forced to confront the end of her premiership. and nvidia set to release results this hour at the tail end of reporting season that has shown few signs in recovery in chip demand. let's get you up to speed, though, with what is happening to pinterest earnings. up moments ago. shares really getting. light not want to come up on your first ever public report. romaine: president trump ratcheting up his battle with beijing, this time targeting chinese telecom by issuing orders that would restrict chinese companies' ability to buy from u.s. companies. wilbur ross told bloomberg the order will be effective tomorrow and the move was not part of the ongoing trade talks.

actually part of the trade situation, and it was not something that had been meetings in any of the , the many meetings that were held between china and the united states. : all right, but some are concerned about the administration taking this step without the support of european allies. the french president made it clear this morning saying europe would not block wall went -- while with -- huawei. to block anys not company but to preserve national security and european sovereignty. a trade war is not appropriate. first, it is not the best way to defend national security. second, it is not the best way to develop your of ecosystem.

i hope for a world of cooperation and decreased tension. remaine: you heard it from macron. he is standing his ground, and of course, we know what the u.s. position is. how enforceable will this be or how much impact will it have on huawei? >> is huge. i think people are underestimating this. the fact the market shrugged it off today should not tell you that it's really not a problem because it is a problem and there are heat up parts. one is the u.s. buying from huawei. potentially a major customer, but that's not the big one because, in fact, the u.s. -- government already put a lot of pressure. the much bigger impact is if huawei is not allowed to buy from the u.s. because roughly 1/3 of its components are includingourced

qualcomm, texas instruments, analog devices. without those -- this has not happened, by the way. huawei would that be put on the so-called entity list. that is the so-called nuclear option. if trump did that. if china were put on that list the different companies were not given licenses to sell to china, that would be tech amount to a death penalty for huawei. joe: what of the interesting things is that contrary perhaps to some people's expectations, ,he u.s. actions against huawei including the actions against the cfo in vancouver, have not mingled much with trade talks. trade talks are not going great, but nonetheless, is this a big enough deal in the sense, perhaps i was giving a death penalty to huawei if they cannot get the components they need, that it could be forced to cross over and blow up any hopes of a

trade deal? >> the wilbur ross interview was remarkable in that ok, fine, it has not been part of the talks, but in of italy, china is looking at this holistic we, as is the u.s., and it cannot but be part of negotiations, so i agree with you that china will be looking for any tool that to fight back and the natural run is to say no to any trade deal. caroline: what is notable, 'sally, has been huawei reaction itself, saying it will do significant harm to american companies with which they do business, cost tens of thousands of american jobs and disrupt global trust. joe reference to this yesterday. it's interesting china is not afraid now to dial up some of the rhetoric when it comes to trade tensions and when it comes to responding to potential moves . >> this is a tough problem, let's all acknowledge that china

is a geopolitical challenger to the united states, and there are things huawei has done that cause alarm. you know, vodafone reporting that they discovered backdoors in some of its telecom equipment and other companies have found the same thing, that the u.s. government has repeatedly said it has evidence, which huawei denies. the question is -- what do you do in a situation like that? the u.s. and china on the whole have, if you look at everything together, still a productive relationship. the u.s. benefits from what it buys from china. china benefits from what it sells and what it buys from the u.s. we are unraveling that relationship at a rapid pace now, and i think there has been a bit of a failure of imagination about how bad things can get. i don't want to be too alarmist look what happened with japan with world war ii. that began as an economic

confrontation. u.s. embargo on oil to japan made it hard for japan to get e.pper and iron or you can imagine this thing getting much, much worse. >> always have the best insight and the best ties, by the way, too. ofwant to turn now to some the market impact because the trade spat is not the only risk in the market. investors also eyeing increasing tensions in the gulf region with regard to iran and our next guest says bonds are also in demand because these risks are related and changing investor views. we welcome the global managing director of economic strategy at medley global. i'm guessing you are not quite buying into the risk rally we are seeing today. >> not buying. i think the statement from huawei was very defiant, so the market will not deny this, and as peter said, it will become

part of the conversation, even though it were ross says it is not. market is very cautious, so this trade deal is very tense, very different situation than the last thing we went through. at this g20, japan is far more contentious and we're dealing with tension in the gulf and we are at a stage where both are really negatively impacting the u.s. economy. now.t's separate them for how do you really see it impacting the u.s. economy cap say it couldts affect inflation but it would not be the end of the world, we are not that trade dependent. what is the mechanism and what is the scale by which a full-blown trade war hurts the u.s. economy? >> worst of all, though the inflationary impact may -- first of all, though the inflationary

impact may be modest, a lot of those goods are so low in price that people will start changing their mind about buying those goods. people who are just changing the demand of -- so changing the demand and behavior people used to purchase these goods. people are getting used to the fact that we're in a rising tariff environment. markets already responded to this, but the tightening of financial conditions will impact data and if we are getting more of this kind of tension, that will filter through to the economy, so i think all of that is what the terrorists effect really is about. europe's you digested reactions? even though vodafone says in some ways it does not trust its supplier, it is sticking by its supplier in the u k and a broad and deutsche telekom is integral to the 5g rollout.

this has global implications. >> undoubtedly. i think the u.s. cannot completely isolate itself from the situation. in other words, you will get this competitive landscape changing, too, and countries like europe, you get separate arrangements about in this case, huawei with this 5g rollout, so i think the whole idea about the terror of shifting things around the globe, if that's in this case production or demand, so i think this is negative. romaine: i've been fascinated by this. some people talking about yields could get down close to 2%. where do you see fair value right now? yield could look at the saying it is a combination of .nflation, growth you add those together, it looks something like 1.20 5%, so we are not too far away from that, so i think that will probably be and also discounts at a

rate cut completely priced and, then you could see potentially , and i think that's real uncertainty is and therefore, yields are so low, it is really the uncertainty about what will growth be from here. there was a lot of optimism -- i was one of them -- going into the second quarter, and that has completely changed. caroline: interestingly, we're seeing not only trade tensions, brexit going backxit and forth. how much of a risk is that globally, or is it very much contained to the u.k.? hand, brexit is

seen as a systemic issue because of the disruption and financial markets. the ecb and bank of england were close together to not have any kind of lehman situation recur as a result of change in the derivatives market. on the other hand, it's a political issue and political uncertainty does affect particularly european markets because people look at this in a sense of if this becomes a hard speak, which a lot of people thought it would not, it would have clinical ramifications. in the u.k., nigel farage has seen ain the u.k., nigel farages seen a tremendous upsurge in the polls. i do think that has an application, but not systemically. i do think that has an implication, but not systemically. : thank you so much. we want to turn out to some breaking news. nvidia is out with earnings right now. first quarter revenue and eps is beating most of the estimates we had, but it looks like their aidance is giving investors

little bit of excitement. they are seeing second-quarter revenue coming in at about 2.55 billion dollars, slightly above the average analyst estimate, also giving a gross margin forecast of about 59.5%. this is bloomberg. ♪

caroline: we want to bring you up to speed with some of the key earnings coming out. pinterest sinking after hours on the back of their earnings which really underwhelmed. the outlook for their revenues well below where the market had thought. well, it's not well below, but certainly, the market is concerned by it. it seems to be 1.0 9 billion is where the market wanted to see. they say 1.05 to 1.08, but they also see if falling low $26 for

the first time since april in terms of overall shares. joe: i feel like the common t isad with uber and lyf real punishment if there's questions about the business model. : you wonder what people were actually expecting. sort of the opposite story going on with nvidia. we are seeing their shares moving higher after hours. there was a lot of concern they were facing sort of a slump, but it appears they have sort of rebound a little bit. first quarter results beating estimates and they are giving second-quarter guidance that appears to be coming in well above what most analysts had expected. joe: after hours have been ok for the chip sector. : expectations were kind of low. joe: much more after the break. ♪

♪ ♪ mark crumpton with bloomberg first word news. president trump is laying out a new immigration plan to convince the public and lawmakers that the u.s. legal migration system needs to be overhauled. speaking at the white house rose garden, the president said his plan aims to create what he described as a "fair, modern and lawful system of immigration to the united states,," adding "it is about time." >> today we are presenting a clear contrast. democrats are proposing open borders, lower wages, and frankly love is chaos -- lawless

chaos. we are proposing immigration plan that puts the jobs, wages and safety of american workers first. effort,e latest spearheaded by jared kushner, the president's son-in-law and advisor, focuses on border security and favoring people with high-level skills and degrees and job offers, instead of relatives of those already in the country. house speaker nancy pelosi says that the emphasis on merit-based immigration is condescending, adding that families have merit, too. on speaker weighed in growing tensions between the u.s. and iran. pelosi said that the trump administration should provide a briefing to the entire house mentorship, not just a select group of lawmakers known as the gang of eight. i like what i hear from the president that he has no appetite for this.

one of the places where i agree, we hope that, and will prevail. the president of the united states, even though some of his supporters are rattling sabers. house minority leader kevin mccarthy said any action the administration takes "will be thoughtful and in full consultation with the house and senate." the administration executive order aimed at banning huawei equipment from u.s. networks goes into effect this week. commerce secretary wilbur ross spoke with bloomberg. >> the order dealing with huawei itself will be effective tomorrow. hip products or software or services to them, they would need a special license from the commerce department.

mark: huawei would be the largest business ever subjected to the control, a law enforcement measure requiring it to obtain u.s. government approval on purchases of american technology. global news 24 hours a day, on air and at tictoc on twitter powered by more than 27 00 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. romaine: some quick breaking news. searchthe chinese engine, earnings coming in a yuan onoft, about 2.77 profit. revenue about 24.1. i should point out traffic acquisition costs went up 41%. caroline: thanks. sticking with soft results, pinterest reporting its first-ever reports as a public

company, seeming to be a big mess from the market perspective, the adjusted loss much more than anticipated and the full-year revenue guidance not living up to expectations. getting hit hard in the market, although it rallied 50%, over that, since going public let's get the analysis. you like this company? ceo willooks like the be rather confounded by the market reaction. the market does not see success. >> thank you for having me. as early and longer-term investors, we are looking longer than this. the first quarter was good, beating most of the metrics. j overall on the top line, a good number. ebitda is good. you really have to, this is the full-year miss, i don't think it is that big. it is a miss, strictly speaking, but in the bigger scheme of things it still has a long

runway. the fundamentals are solid. this is a unique company with very good position, in the virtual ad business, the search business, so this is nothing to worry about at this point. joe: let's talk about that long runway. when you talk about online ads, it is usually facebook, google, increasingly amazon. even on facebook, they have a really exciting road story, instagram giving the company sort of second life, which in my it it wouldike invade on some of pinterest, so where does the runway come from? >> you have to separate the buckets. facebook is more of a social media company, and this is more of a virtual search business. the buckets are different, and this has a good position. roi in this business is very high. advertisers love the business. very niche, coveted user base,

good referral rates. so advertisers love to come to this business, and get a good roi. it has a runway of its own. the brands love it. the main thing is the demographic profile, which is growing, unlike the social media companies that are kind of in and out. and facebook is different. let's not compare it -- pinterest does not have to be facebook or twitter. 250has its own niche, users. to 290 million they keep coming back. romaine: is there a risk that you alienate some of those users as the brand gravitates to this, i know form personal experience searching, sometimes the brands can overwhelm your search results where you have trouble finding something. santosh: they have been particular about that.

they don't want to clutter up the site. that has been the success story. that's helping them, no clutter, very seamless in terms of advertising. caroline: but when do we see it seamlessly turn into monetization and a profit rather than a loss? santosh: this is a small loss. this business is eight years, nine years old and didn't start monetizing until four years ago, and it is still a work in progress, still adding more ways to monetize. a long runway in terms of monetization. it's still very early. so considering everything, it is early days for pinterest. joe: we have seen a lot of ipo's lately, some that have done very poorly like lyft, some also poorly like uber, some phenomenally well like beyond

meat, pinterest sort of in general. what is the market telling us overall romaine: -- overall? santosh: investors want high-growth and profitability or a clear path to profitability. ft kind of stumbled in terms of profitability. believers in transportation as a service, long-term investors there as well. investors want profitability, and they will get that here pretty soon. joe: santosh rao from manhattan ventures, thank you very much. coming up, a pioneer in crypto investing. we speak to barry silver, one of the earliest and most active investors in the space. this is bloomberg. ♪

♪ bitcoin enthusiasts are cheering the recent resurgence of crypto, even though no one can quite pinpoint why it has been rallying. joining us is a pioneer in the space, barry silbert, who began buying bitcoin in 2012, and is now founder and ceo of the digital currency group, and grayscale investments, the largest digital currency asset manager. great to have you. what is the story this time? is it institutions actually getting in? that was a big hype story a year ago that seemed to fizzle. why has there been a higher price, or just another up and down in crypto? barry: probably more of the latter. sentiment. 80% drawdown in price happened three or four times before, and every time it happened, record highs. so when you get the price going back up.

but the difference between this versus the bubble in 2017, the infrastructure is different. you have custodians now, you have trading software, you have client software. romaine: that is interesting, because it seemed like part of the selloff we had seemed to do with mistrust regarding the entire space. barry: the ico's in particular. romaine: so if not resolved, that has been addressed to some degree? barry: you had all the demand for ico's go away, and the projects on bitcoin were trying to sell in business and trying to sell the bitcoin. we just launched a big advertising campaign, just before the prices started going up, so our campaign might've had an impact. caroline: we have some pictures of the campaign. the campaign is based on getting people to see digital gold as

gold, getting gold bugs into digital gold. what's the number one thing you need to break in terms of viewpoints? barry: the ad is designed to be provocative, start a conversation. and i'm a connoisseur, anything that provokes gold bugs this way. how many angry tweets did you get from gold people? barry: this has already gotten over one million views, and just started today appearing on tv, broadcasting today. what is important is to start the conversation, and highlight number one, a generational shift happening in the way investors think about gold. the younger generation, i was born after the gold standard, didn't grow up during a period of war where you had to store your money via something like gold. for the younger generation, money is digital, and anyone can

access this asset class. so you have approximately $68 trillion in wealth handed down from boomers over the next 25 years. that won't stay in gold. it will not go into bitcoin, but certainly it will diversify. who has: as someone collected gold since i was a kid, i can open up the safe and see the hold -- gold. joe: that doesn't surprise me. [laughter] romaine: but the physical nature of it, at least for people of a certain generation, provides a little comfort, whether it is a great store of value or not. history,ld has cultural significance, but lacks in utility, in usefulness. bitcoin as a way to move money around the world has the potential to be incredibly balua -- valuable intrinsically. gold is used in jewelry, in

tronics, -- electronics, and is down 30% over the last nine years. its only real utility is going down. the more expensive gold gets, the less useful it is, because they use something else. so central banks are buying, so if you are buying gold you are betting on central banks, which is weird because gold bugs think that central bankers are idiots. so there is a real disconnect. the changego back to in infrastructure from 2017. more's now more software, custodial platforms so institutional investors can get into the space. what do you see on the ground? can you give any numbers or hard data to back this up, or is it just the story? barry: grayscale investments, the manager of the bitcoin trust that trade publicly, in the

first quarter of this year, over 70% of the money that came in was from institutional investors. what's interesting, over 90% of it went into just the bitcoin fund. we have 10 funds. the demand is coming from institution, and right now just bitcoin. caroline: and retail? barry: we saw a broadening into the hedge funds from individuals in q1. caroline: when we introduced 145 we said you have over of which areme based on bitcoin not being the end-all. will bitcoin be the winner or can there be many? barry: they will be winners perpendicular use cases. digital gold will be bitcoin. privacy will be a big use case,

and digital currencies like horizon for privacy. reum, contracts, ethe but they will not be hundreds of winners, but a handful. joe: a lot of the money is going to the bitcoin fund. you have 10. i looked up, what is the horizon trust, is that a coin? barry: a privacy coin. joe: so do you think the proliferation of all the coin products, talking about ico's in 2017, helped contribute to the collapse of the bubble, with so much supply coming onto the market? do you think your products contributed to that? barry: there's thousands of grupo currencies out there -- crypto currencies out there, and nine of them are in the top 15, and the 10th is a fund that lets you invest across the top five currencies. the ico boom brought a lot of

capital to the space at attention. there was probably some negative consequences. but this is an incredibly exciting industry that is innovating at experimenting and trying different things, and what came out of the ico market is more discipline, more infrastructure. caroline: so many people also were hanging their hat on hoping for an etf, some sort of index, but regulators push that back. how much are institutions getting in whether or not red raiders -- regulators give it a thumbs up? barry: grayscale is the beneficiary of this. it has been trading over $100 million a day the last week, and assets under management are over $1.5 billion. so regulators publicly have said that eventually we think there 's, and we expect the grayscale bitcoin trust will be one of the first. romaine: thank you. , founder and ceo

of digital currency group. recapping some news. nvidia, a lobar but investors seem to be cheered by a work through of inventory is to use -- issues. we want to bring in bloomberg semiconductor analyst, announcement of awesome -- anand srinivasan. anand: this is a sign of relief or investors looking for invi -- nvidia to return to the old growth paradigm. in-line quarter. so solid, good, a big sigh of relief. romaine: what is working right now? is still 65% of the business.

we think long-term sales growth for gaming is in the low teens. there is some china bumping is going on right now. we think there is an architecture transition that could impact the growth story. there is a new feature called ray tracing that is sort of clouding things up. but in the long run, we think that sales growth for gpu's tied to gaming is in the low teens. so the second part of the business, gpu's have become popular in the data centers for a.i. training, so that's about 30% of the business, which is growing gangbusters. but that business is going into a little bit of an air pocket as well, so the second half is hopefully better than the first half. we think that is a long-term growth business, as well. intel's a little on the ropes. so all these things help, but the fact that they are able to continue on this slow reversion path using both of these pillars of gaming and ai/datacenter is

big. caroline: to make it circular, another key pillar has been crypto. certainly it caught on the wind of excitement, whether it meant much in terms of revenue, graphics chips were going really good because of that. the sudden turn up -- is that beneficial? one of the things i wanted to ask barry, our guest earlier, is whether the fundamental of mining have changed and if the landscape has changed. we see institutions, and blockchain is an interesting phenomenon, and it will be slowly widely adopted, i am sure. to the extent new currencies are being mined, the economics of which are different, will that become a significant portion ofnvidia business again? i doubt it, only because they have been bitten so hard, with a rapid decline, by this business, and i think they will carefully control exposure there. caroline: great to get your

perspective. anand srinivasan. coming up, elections in australia look likely to produce the seventh leadership change in five years. what you need to know. this is bloomberg. ♪

caroline: elections in australia look like they will give the country its seventh leadership change in 12 years. for a read on what to expect, let's bring in shery ahn. how many? shery: i believe it is eight. we are losing count. talking about turnbull, morrison, and we are heading for will shorten -- bill shorten, because most balls put labor ahead. we usually talk about the australian economy being so

great because they haven't had a recession in 27 years, but under the hood it is different. gdp per capita really trailing the u.s., or just a steady growth of china after the commodities boom, as you can see on the gdp chart on the bloomberg. romaine: you mentioned the economy, but there have been some week spots in personal spending, in property prices, in personal wealth. is that linked to the election? shery: that's exactly what's happening. we are seeing now home prices, they used to be a flashpoint where people could not afford property. right now we see a slump in home prices. the other dtv chart on the bloomberg shows how home prices have really been lagging, have not been growing. the residential price index has the red, and that is causing a lot of concern. this week, we had the unemployment rate also gaining ground, a surprise that is now causing people to wonder if the rba will cut. the only reason they were holding off was because hiring

remain strong. joe: so housing weak, unemployment coming up. seems like a pretty good recipe for rba action. labor, ad if we see more left-leaning policy in the cards, what will that mean for the australian economy? a big question. he has called president trump mad," and said he welcomes the rise of china in the world, so this will be interesting. caroline: we will see how the twitter account goes for him as well. thank you, shery. more on daybreak australia and daybreak asia. e.u. miss tomorrow, finance ministers in brussels discussing plans for the budgets. joe: and i will watch preliminary numbers for u.s. consumer sentiment for may. romaine: and second quarter earnings before the bell. caroline: that is all for "what'd you miss?" romaine: bloomberg technology is next in the u.s..

joe: have a great evening. this is bloomberg. ♪ ♪

♪ ♪ carol: i am carol massar in boston, in for emily chang. this is "bloomberg technology." in the next hour, we look at the best boston's burgeoning tech hub has to offer. the cutting edge in some of the city's biggest industries, and todaoufo