there continues to be this belief that we could interesting, you still see stocks rally. 500.ints on the s&p holdingee the dow jones we26,000, but keep in mind are below the moving averages right now. over 1.1%.that, up cannot let the day passed without talking about oil and energy stocks are at it wti saw a rally that boosted energy stocks. 1% androse more than

exited alaska also pushed in a very shares higher. showed a bigger than expected drop in crude oil inventories a little different. it eases concern that the market is poised to head back into oversupply. >> surely before 2:00 today, all the major cryptocurrencies began selling off in a flash. bitcoin erased earlier gains to drop five and a half>> surely bo below $5,000 since the first time since july. cryptocurrencies are no strangers to set of moves that are not always explainable and

today, that seems like it is the case for now, many analysts trying to figure this out, one showing that the futures friday might be playing a role. one investor is sticking with his guns and saying that the next leg up could be as soon as investors start piling in. they're not quite giving up hope on crypto yet. >> thank you three hard to believe volatility in the crypto space. work andu do a lot of an interesting juncture because it feels like the last several weeks, people become negative. it is not like anywhere near bear markets.

characterize the sentiment? before september and before in complacent got territory and now we are trying to get a worry territory. we track one thing that is a little better on the data which is interests shocked correlation, have a trade relative to one another. it is a pretty good window and it is -- it has gotten up, meaning people are trading most of the activity. we would love to see it in the 70% plus area. it suggests people are only

looking at macro. when you have it down to 10%, they are only looking at micro. could be a tweet or missile firing. see a littleng to bit more concern creeping in, but i think the key issue is conditions really tightened up last year and that is a nine-month lag impact on spending, unemployment trends and margins. there is this need to trim back numbers for the latter part of this year and into next year. make sense of the gains we saw earlier today. the dropring how much for whys is explanatory we continue to see a bump up in

stocks despite all the issues. aree have to remember we entering the end of the month and we are supposed to see potential rebounds of very large funds out there. bonds have outperformed stocks, so you would imagine that some need to get back to their benchmark, so that is why you potentially could see stocks rallying to read what i found is a lot of people saying you should see bonds falling and yields rising as well. [no audio] for the majority of the time, it fallise, but you see further with them. not necessarily one you

should take to heart. >> is interesting amid the bid for safety and one in signs, that is having an effect on the u.s. dollar. i want to get your take on that expertise. we seem to get no weakness in the u.s. dollar. >> it is strange. when you go into the numbers and the data, you find so many different things you expect to see. when the dollar weakens, they weaken as well. i make money on this, not how i wish i would make money. that seems to be a different story. europe being very difficult right now, concerns around

emerging market growth and not as much about the domestic environment. i'm just fascinated by it. and ittalking about $.25 is not that dramatic if people misperceive that. 72% of sales come from north america and if you factor , it isconductor sales probably closer to 75%. small and large caps are not really that far apart, but the way they report the data, for those companies, half of the sales are international. there is nobody in germany buying managed-care insurance. the way the data is presented is a little different and i would

like to make one last point. if you look at the 10 year yield, it has come in about 120 basis points since the end of the year. the bond market is not necessarily saying inflation will come crashing down. that is not what it is saying. supported. not if you look at one set, that is fine. >> you are saying bond yields are really lower #>> yes. whenlooks really good you're looking at markets in germany. >> thank you. thanks to bloomberg's sarah ponczek.

the, the political risks in u.s. and the u.k. this is bloomberg. ♪

we are live from bloomberg headquarters in new york. >> here is a snapshot of the rally we saw four u.s. docs today. >> the question is, would you miss -- what did you miss? >> [inaudible] the go-ahead to form a new government in italy. why some experts worry

greenbacks could contribute to a u.s. slowdown. and tracking dorian. the tropical storm has been upgraded to a hurricane. >> the president will give the prime minister to -- permission to form a new government. , staying very the late -- very late. content originally resigned as deputy minister and now and is to rescue it with the new coalition. >> it is very stunning what he was able to achieve. content originallysomeone a yeaw about or heard of. he was not a well-known politician. he is already able to stage an

incredible comeback. resourcesand based on that he will get the mandate and will continue to be the prime minister and we are looking at a see newnt that will be forced outin of office. it has gone very bad for him. deal comes the through, how stable with the government the? -- be? >> i would not bet money on it. for the same and we thought this was impossible and would never happened. don't want to go

to elections because they are polling so bad. strong of a is how coalition will it be? it is a very difficult decision they have to make and there is a planned hike for 2020. it is always very bad, so they have to find a way to get funding to avoid the hike from being implement it. -- implemented. you.ank for more on the political risks, we are joined by alex harris. talk to us about the market .eaction in italy to this news >> at the same time, very skeptical. a bt yieldought was

sinw 1% and it is like germany some roses. relative to the rest of the world, italy benefits from being a member of the eu because everybody is riding on become tells of germany and it's very generous funding. i think it is one of the reasons you see germany not rushing. >> do you get the impression people are looking for any excuse to buy? >> i think so. think about how much risk there is. they still need to deal with the budget issues and they are fighting with brussels on that

so the problems don't go away. they have a huge mountain to climb. nothe five-star movement is necessarily sustainable. you look at what is happening in see them get a huge bed -- bid. >> i think it benefits from some of that. to makingen it comes tough decisions, the u.k. has to ticket -- kick it. i think there would definitely morsee room, but i think johnson is trying to get the upper hand. we are going to see.

news and thegood u.k. gets chaotic news, people by bonds. does that suggest it is being ?ooked at as a credit product # for thenk it is a plan central banks. people are also saying no matter what happens, you are just going to see more accommodated rhetoric. i think mark carney has said they might be back in and looking at stimulus there. i think the matter what you are doing, everyone is like you have to get in here now because central banks are just going to continue this path. >> everyone buy a home.

>> bloomberg alex harris, thank you. coming up, with a look at cannabis operators. this is bloomberg. ♪

.> breaking news forever 21 has been struggling to turn around. familiar,to people potentially filing for bankruptcy. stalledions so far have according to people familiar with the situation. operator reported

revenue of over $38 million. want to welcome the largest shareholder, the biggest u.s. company by market value, so thank you. .alk to us obviously, a lot of growth in the space. one of the themes is people want to see profits and people wonder when they will be more readily available. the revenue is there. talk to us about what you envision. >> you have to differentiate between the canadian tennis mark of it -- canadian cannabis market. market, it got going

about five years ago so companies are still at an earlier stage. and wea major turnaround had a lot of depreciation. that provides a lot of non-cash and so, we are still income negative as we intend to finish. we forecasted our earnings be $1.3 billion. the industry is turning around. we are the largest player. reported today and we are starting to see the u.s. business turnaround. >> when you talk about the positive, but what about the actual growth?

there was a lot of euphoria that the u.s. market was ready to take off and that kind of seem like it has stalled. >> i don't think that is the case. the u.s. market is booming. companies growing at 50%. we're starting to see growth rates over 300%. we will grow 300% next year. the growth rate is quite stunning. it is quite substantial for a five-year-old company. >> you have been making deals. the department of justice, talk to us about how it will eventually get through. >> we think the department of justice is trying to educate on sector.abis specter --

it got going the last five years. we think everyone has gotten a second request and that means the doj is trying to educate itself on the cannabis sector. anticipate the fourth quarter and hope to see some of the transactions late last year to approved. do you see further need for opportunity that would require you to raise more money? >> we are in the second inning of one of the fastest-growing industries. countries all over the world are proving cannabis.

it go for awill see few more years and once u.s. companies get access, you will see them raise more money. it is obviously limited by the capital we can raise. partnerships? verythink you have seen big partnerships in canada. there are not happening in the u.s. because u.s. companies are federally legal, state legal and therefore the big multinationals are still watching, but not doing anything. they are waiting for regulatory moves and that has stalled in the pre-election year. >> do you expect that to come out in 2020? >> i can tell you democrats in the house are at least going to vote in the fall having to do it

ranking and the senate has started to debate the issues. although it is thinkican-controlled, i president trump has said if the -- if there is legislation in front of him, he will sign it. joining us, for chairman of to really. no longer retains audio recordings of interactions with siri. to improve the product, but the program was suspended a few weeks ago. has been sharing partnerships with hundreds of police departments around the state. police can automatically request

video and homeowners can decline those requests. to go quietly raise its minimum wage to $15 an hour. she asked the ceo on whether he would consider raising the minimum wage to $20. >> coming up, the greenback. rise for a possible recession could be a bad omen around the world. this on bloomberg. ♪

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bloomberg first word news. dorian became a category one hurricane as it struck the u.s. virgin islands. mainland as u.s. early as the weekend. other islands were also in pathn's past with -- with power outages possible. scotland first minister condemned british prime minister

horse johnson's decision to temporarily shut down parliament in makeup over -- in mid-october. he spoke to queen elizabeth who approved his request. minister's move was met with outrage. >> it is egregious if not entirely surprising. we should be frank about this. trying to shut down parliament in order to force through brexit is not democracy. it is dictatorship. today will go down in history as the day that democracy dies if it cannot shut down. >> britain's main opposition party has written to challenge the move to suspend parliament and give lawmakers less time to stop a deal.

warning that it has pushed american society to what he describes is a breaking point. an upcoming book was published says he quit the trump and in 2018 when he realized advice from the president no longer resonated. he announcedfter he was pulling all u.s. troops from syria. [inaudible] facing a growing backlash over handling of a massive spill a decade ago. the jury has decided that the contractor breached safety duties, exposing hundreds of thing of workers. more than 200 workers say it cause numerous illnesses, some fatal.

global news 24 hours a day, powered by more than 2700 journalists and analysts and at tictoc on twitter, in more than 120 countries. >> let's talk about the danger of a strong dollar, the u.s. currency gaining power. experts are wary about the greenbacks in a striking -- and -- and a shrinking economy. i want to bring in a former economist from the treasury department. thank you for joining us. it is pretty astounding because it is not just there is a cyclical strength in the dollar right now. thee are major calls that persistent existing of dollar

strength is a real problem for the world. what essentially is going on that allows the dollar to have the strength, even if the fundamentals don't justify it? >> it is largely a network effect. if you look at international trade, 70% of the world has currency linked in one form or the other. you look at the amount of debt we have issued to the world which is about $16 trillion. trillion, so there is this global financial cycle which in turn is really a dollar cycle. >> we have heard time and time

sort ofas create some other reserve currency or some sort of independent global currency, but as long as the united states is the largest , is there any realistic option where that would happen? strongork effects are and not only is the dollar grip where it is, it is getting stronger. every time there is a crisis, it falls relatives in terms of other financing and other issues, so we see more debt and dollars outside the u.s., so the dollar cycle actually builds up. it grows with each crisis. shrinking,he economy the reach of the dollar is growing. >> what do you make of mark carney's a currency -- currency?

>> i love the name, but i don't think it is a great idea. he has called the right reasons for proposing it, but the reality is in order to compete for the debt, there is about $16 trillion in assets and another outside your status 28 trillion -- $28 trillion. you want to compete with that, i don't see the central banks of .he world comes together there is no substitute for the dollar currency. in the u.s. here >> the danger for the rest of the world i think are fairly well understood. that could mean tire policies and country's dollars during the

good times and save them for the bad times come up that means that and is persistently weak. it is also really hurting the u.s. and you see legislation saying we should tax foreign investment in order to weaken the dollar and remove several. should the u.s. unilaterally do something dramatic to discourage so international purchases that it weakens and the dollar does not become [inaudible] >> it definitely needs to be addressed somehow because there is a real cost. we typically have an overvalued dollar leads to budget deficits and ultimately, more leveraged economy than would otherwise be the case, so my fear is what the the does it -- is reduced amount of safe assets available. where we we saw this

had the crisis, the dollar got stronger yield. be moreal that might issued permanent currency for major part line -- that would make the banking system more secure and also require some political persuasion, so politically, i don't see anything happening. >> let's turn to what is going on with the fed. a lot of criticism that we of it that by idea standing pat, you are allowing the financial conditions to tighten. ofyou think the criticism the fed not moving aggressive enough is fair given the environment?

>> absolutely. if you think of the textbook story of how we do monetary , arguably the trade wars in the uncertainty around them has lowered that. by doing nothing, the fed is doing something. it is a passive tightening of policy. i think it behooves the fed to get out and run of it. i know the op-ed did not help. but yeah, i agree with you. >> thanks for joining us. research fellow at george mason university. up, bloomberg's david westin sit-down for theod of bls is. she talked everything from

investment strategy to increasing politics and local banks. this is bloomberg. ♪

>> puerto rico bracing for a hit from hurricane dorian. threatening, but not the heavy winds from two years ago. joining us with an update is brian sullivan. where is the storm right now and when do we acted to make landfall? >> it threats the needle before -- between puerto rico and st. thomas. the threat of puerto rico is diminishing. >> what are the concerns right

now in terms of how severe it could be if it does, in fact hit florida? is ae official or cast category three which would make it a major hurricane. this will be one of the strongest storms to hit for quite some time. >> it is a key area of concern. what are the defenses like in this sort of area and how well-adjusted are they? >> florida gets hit by a lot of hurricanes and they do hurricane preparation well. rapidorm undergoes intensification. the other thing we have to worry about, the king tide zone.

also, you have to worry about subsequent hurricanes and we get a lot of damage when one hurricane moves to another. >> erin is contributing to that. it is going to hit nova scotia probably sometime this weekend. it is going to fizzle out. it is kind of polling that tropical moisture east and there are flood warnings across massachusetts and eastern new england. >> getting an update from the national hurricane center, saying it is moving away from the northeastern caribbean sea. >> it is going to head out to the subtropical and. there is no interaction.

that means there is no limit to how strong they can get. this is probably the best place for the storm to develop and get stronger. fors not a good forecast florida. let's get a quick check on business flash headlines. 40%.s have fallen the offer is invited at about $3 billion. at chinaheadline summit this week maybe the u.s.. [inaudible] present len's to china becoming a world leader.

and tiffany posted second-quarter earnings that beat estimates, but a drop in spending by foreign tourists. sale iss same sort of expected. that is your business flash update. consider. >> that is the best. waitere was a three hour trying to get into the car park. it was overwhelmed in cost to and china, but now we understand that they are having to refrain from entering the second day to ensure we get them. >> this is what the dream is.

who needs that? it is time now for our smart [inaudible] let the >> running today is the chief market technician. becaused to first start it looks like we are in the poor zone and then we are looking at the average is providing key support levels. walk me through what you see. >> we want to know the zone that we are in, the death zone. we don't want to sound too negative. there is a chart that we want to pay close attention to.

it is scary because you run out of oxygen and the terrain gets deeper and the risks increase. i think that is where the market is now. the levels that we want to pay attention to are the moving average and the two day moving average. they are very simple, but great guides of trends. you can see they have flattened out. we are in a market that is strenuous. at strong resistance and if you look back here, that has been a pretty good guide for support. we tested it wants, tested it twice. because wey bullish were stuck under the moving average. >> there's another story that has been catching my eye and it is money market funds.

to me, it seems like people are getting a bit more cautious. what do you see? >> probably risks are increasing or just i don't know what to do with money. where do you put your money? you have your chart over here looking at the s&p. we have assets in money market -- 18e last two years months, that is when we start to see the flow of money really start to accelerate and to put that into context, if you apply a 20 day rate of change, how much money is going on, the rate of change is actually the highest since the financial crisis, so there is a strong gravitation as they put it into the money market.

>> you are also taking us, where does this leave us? what is your take russian mark -- what is your take? >> and a lot of clients say any to have market exposure, so what do i do? one strategy that is working out is a market mutual strategy and we have a basket that goes long. we actually see back in 2018, we saw the market selloff. we saw the market basket price relative, so you can really see it is starting to accelerate

which means you are outpacing it. thank you. that was the chief market technician joe, back to you. >> coming up, the one currency that even george soros could not break. why the billionaire investor and ramp big-name hedge funds wagers rangers -- once again. this is bloomberg. ♪

>> just to bring you some breaking news what is going on with hurricane dorian, the governor of florida is already declaring a state of emergency ahead of the storm, advising ands to prepare their homes followed the path of this storm closely. we are not sure when it will hit

landfall over the weekend. andow to asia ahead continued protests of hong kong come bearish bets against the hong kong dollar roughing government created in the past, investors like george soros attempt to break it in now they are trying again. this, theyealize tried with the hong kong dollar and then failed and everything years they say now it is time and it never works. why do they think it might work this time? >> they say it will be the cornerstone of the financial system. george soros back in 2011, they did not work. now we have more hedge funds betting on this against the hong

12g dollar, not surprisingly weeks of protests in hong kong. the economy on the brink of a potential recession. board.ryone is on >> there are a number of hedge funds. tune -- tycoon that bet against the pound. that saying that he close that's closed that in -- closed that. thereasoning here is environment is not that bad at the moment. we talked earlier on the segment .bout how it was surging

this chart on the bloomberg shows that we have seen liquidity concerns ease of little bit and if you maximize this chart and look at it from the timeframe of the 1990's, you the asian during crisis. not to mention we talk about the chinese. we are seeing investors increasing holdings for 15 straight weeks. more of this starting at 6:00 p.m. eastern. eu defense ministers meet to talk climate and security. out.mbers for u.s. gdp >> best buy reporting it second-quarter earnings. >> bloomberg technology coming

up next. have a great evening. this is bloomberg. ♪

[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org emily: i am emily chang in san francisco, and this is "bloomberg technology." coming up in the next hour, ivends ya looks to take advantage of the trade war two the u.s. and china. the country easing foreign investment rules, a big win for companies like apple. facebook gets ready for 2020. it updates rules for playing adams, but will it be enough to make a difference?