staples, just relative to the broader index. it's not necessarily looking classic defensive sectors which also tend to have a lot of duration risk or interest rate sensitivity it's getting a little bit more creative. iversifying differently by looking at consumer staples 0 low >> there is the closing bell. we did closing the red. another day of losses for u.s. stocks. the russell is the worst performer, off by 1.1%. >> underperformance in the small caps, we can't talk about that enough. down,h down, health care semiconductors holding their own. we are waiting on earnings from micron. that was one of the reasons we that movement in the nasdaq

towards the close. >> the s&p is below the daily average, so there may be headlines that won't matter to the market because you have to look past it, but maybe they were all transfixed in watching it on tv. >> that is your close on that for the day. thinking about that shuffle near record highs. is bigger than one year. range.the volatility there is that horrible volatility to the downside. welp into oversold territory. we go into somewhat overbought territory. uout. the s&p 500 stalling that rsi is on its third point

of a lower high, suggesting the bulls are getting weaker. this chart may suggest stocks could cool off a little bit in the weeks ahead. i'm looking at mcdonald's and t.they are testing a new plant-based burger in canada. beyond rising 10%, recouping losses. target ofn a major short-sellers, 40% of float being used to short the company. s3 partnersrding to head of research. they are calling this burger the t, plant, lettuce, tomato. bullsron earnings, a

win. topline revenue beats. also a bead on the bottom line. versus $.48. ,nalyst have been looking hoping this would come in and filter through and show micron can be profitable in a rough market for the chipmaker. this chart on my terminal, this relates to prices. micron get 70% of revenue from dram. prices in bluen, starting to bottom out, perhaps turning a corner, and that should be boost for shares. shares fluctuating between gains and losses now. they are watching that for guidance eps, despite

the current quarter better than expected. >> thank you. it looks like we did get more headlines, including a correction. fourth quarter adjusted eps, $.56, beating the estimate of $.48, but that may be the estimate and why it is moving lower. the consensus estimate was 49 cents. fourth-quarter revenue will be $5 billion, plus or -$200 million, and $4.78 billion from a so amiss on first quarter adjusted eps outlook might be why the stock is moving south. from wellscobson fargo asset management is to with this, and mike regan. brian, we were talking about micron selling off, also weakness in tech, the nasdaq underperforming today.

fast-growing software stocks to behemoths like amazon or facebook, they don't look great. i'm curious whether that rotation away from growth to value people were talking about a couple weeks ago, combined with the weakness lately, augers for you even more weakness in what was the true leadership of this market? >> my team thinks it could valueue, although typically outperforms growth and you have down markets, not up markets. a lot of that value premium is harvested in tough conditions. we have looked at six different countries going back to the 1960's. every time you get a yield curve inversion, value outperforms growth over the subsequent 12 months. we have positioned our portfolios to be biased towards value, but that value-growth this tension might be a

distinction without a difference, more driven by cyclical versus defensive, or by the sector composition, which is one of the reasons instead of thinking about value versus growth, it is about the underlying value of the companies you are investing in. we tend to prefer those higher-quality companies with stronger free cash flows, strong roes, and more are on the value as opposed to the growth side. >> we talk about recession risks globally, not necessarily in the u.s.. pemco talked about this low growth window weakness. when you look at the data globally, do you think there is a risk for u.s. investors with regards to how that economic picture way on assets? >> i believe a lot of people have been letting it weigh on their assets. predated the

financial crisis going back to 2005, calendar year gdp growth has not been above average since 2005. it has been slow, little variability, which has helped to support the markets. people just have low expectations, and they have had low expectations for going on five or six years now, which is one of the reasons we can continue to hit new highs. >> it might be low growth over all across the globe, but in the u.s., it looks better. the surprise index is the high since may 2018. mike, when we look at the data, housing data looks pretty good, data tomorrow, michigan , no one is pce talking about recession anymore, are they? >> well, i don't know. >> well -- , thecouple of things

surprise index has a pronounced seasonality aspect. it tends to start the year strong, then bottoms out in the middle of the year, then goes back up. it is following through with that. >> ok. >> the bloomberg index is. you can dissect what is causing it to move. it is really the consumer surveys, the labor stuff that has been surprising to the upside. >> it is getting back to brian's point. will this manufacturing weakness .lobally infect the consumer there are a couple of things. i point out the consumer confidence index.

it is down for three weeks in a row. michigan tomorrow. these indexes are at super elevated levels, but certain to come down a little bit, and that soft data leads the hard data. >> when you make about the ipo market? it is what it is? >> for us, we don't participate in ipo's. >> is it a signal on risk appetite? >> yes, that is one of the things i have looked at historically. a lot of people believe companies like to have their ipos opportunistically, so they look at that as a signal that there is froth in the market, but i am not seeing that being that systemic has an issue right now. a lot of the mergers and

acquisitions is not cooperating that. a lot of that tends to be operating synergies, so i'm not sure it is sending us any clear signal at the moment. micron report, shares down 6% after hours. a lot of other folks in the chip and storage space down. how much is the philadelphia semiconductor index tilde still a signal for broader issues? >> there was this expect expectation would be of certain chips. the index has hung in there well considering some of the numbers we have seen, so there is optimism built into 5g. is everyone ready to upgrade their phones? we will see. or $1000 for a

cell phone, i don't know. thank you very much. that does it for the closing bell. "what'd you miss?" up next with the latest on the impeachment inquiry facing president trump. this is bloomberg. ♪ oomberg. ♪

♪ romaine: i am a rain bostick. joe: i am joe weisenthal. romaine: stocks down, treasuries

up. joe: the question is "what'd you miss?" romaine: trump calls the inquiry another fantasy to her the party as details emerge. political turmoil has washington on pause from a while trade uncertainty continues to amount. plunge, the latest startup to win over investors in his debut. more and ♪ ♪ the latest congressional efforts to impeach president trump. the acting director testifying behind closed doors before the senate intelligence committee about the whistleblower complaint. earlier, he faced the house intelligence committee in a public hearing. we are joined now from washington by the person who leads bloomberg's white house coverage. what is your take away from the

day? health is the white house feeling about everything we learned since this morning? >> trump's advisers are getting uneasy. we heard from a number today who said things look bad for him and his lawyer, rudy giuliani. this hearing this morning in the whistleblower complaint were bad development for the president. the whistleblower complaint is cooperated in part by the transcript of the phone call with the ukrainian president that came out yesterday. the director of national intelligence, acting director of national intelligence, came out this morning, and when he was asked whether it would be appropriate to invite a foreign leader to interfere in elections, he said it would be unwarranted and unwelcome comes of that is not helpful for the president. romaine: help me out with the timeline. when this whistleblower filed his letter to, i believe, the

dni, didn't do you not go to congress and inform them of this? what did he do? president at, the the call with the president of ukraine and ask him to conduct investigations into his political rivals in the u.s.. on august 12, the whistleblower filed his complaint with the inspector general for the u.s. intelligence community. the inspector general agreed with the whistleblower that it was an urgent matter in merited reporting to congress, but the acting director of national intelligence joseph maguire disagreed and did not refer the complaint to congress. instead, he got an opinion from the justice department that sided with his reasoning that it was not a matter of urgent concern, national security concern, and therefore should be handed to congress, but the

intelligent committee in congress became aware of the complaint and begin asking the forp administration it until the president relented. cliché they it is a say, it is the cover that get you, but if you look at the transcript of the call with ukrainian president and look at the allegations against the administration or advisors to the administration, certainly calls were withheld from the public or the normal standards of dissemination because they , hidently, per the claim political motivation but didn't have to do with national interest, is that the scandal part as it looks at this moment versus anything set on the call specifically? cover-ups case, the confirms the crime. we have the president saying it

was a perfect call and he did nothing wrong. i am so transparent i have given you the transcript, but the next day the whistleblower complaint shows administration officials scrambling to conceal information about this call, almost as if they felt the president did something wrong. romaine: coming up getting a big boost from washington. we will discuss that next. this is bloomberg. ♪ ♪

romaine: micron technology

reporting. shares falling after hours. here is ian king. expectations for earnings going in for micron today were already low. they appeared to beat those expectations, but what happened? the revenueast from standpoint is they are or thereabouts. what is causing concern is what is going on behind the scene. increase inen an orders, particularly from china, but they think that is in inventory build based on concern supply might be in trouble in the future. joe: when you say supply might be in trouble in the future, is that referencing trade tensions? >> it is, yes, specifically the , whichapan dispute supplies to major providers of dram, so not a positive reason.

it's not like him saying demand is fantastic in the market is great again. they say yes, there is ordering from a but perhaps defensive ordering. romaine: micron in the industry it is is famous for being the ultimate cyclical industry. a lot of people have been predicting we were at a bottom in demand. i'm wondering is that bottom they would normally be in, is there expectation that will be elongated until there is clarity on trade? >> i think you nailed it. what analyst said is in the second half of 2019, we will be through the inventory buildup, imbalance, so thelanc hope was we would see the green shoots of return. right now they can tell you that because of the geopolitical risks that is still there.

joe: how much of a bellwether is micron and would we see it play out in other industries? >> yes, the market tends to be volatile and more of a leading indicator than the rest of the intor, but it is a sign terms of what direction we are handed in -- headed in. joe: great stuff. after a decade, finally easing constraints, potentially triggering growth for the four trained on market. here is rachel evans with more. etf's are growing fast. i did not know they were encumbered. is the sec going to do now? backstory is-known that etf's had to seek an exemption for every new issuance

that comes to market. that.c has done away with this rule means any new issuer can do so without going through that process. romaine: the idea is they have to meet some conditions ahead of time? >> they still have to file registration documents. this avoids having this long run up that usually takes more than a year. this where the existing law was built on law that proceeded long before anyone heard of etf's, so they had to shoehorn etf's into old law? is the case.at i think this is the etf industry coming into the 21st century. it started in 1993 in the u.s.

there was experimentation as we saw, but this is an example of the sec looking through those rules that have allowed etf's to thereerate, saying, isn't a better way we can do this? romaine: there have been a lot of etf's that come to market that have been questionable in their approach. does this open the door, could we start our own triple leveraged etf? >> that you might still have a little difficulty with. leveraged etf's are not part of this rule. this is for vanilla-type funds. questions about blockchain etf's, then is there more flexibly there? >> they have to go through the

original registration process. thinkan crackdown if they the name is misleading. if you are calling this a blockchain etf, you need to show 30% allocated to blockchain improve how you would do that. that still exists. what this does allow is new issuers have an easier path to market. issuers, it smooths out issues around how you get a debt instrument to an out of the fund. romaine: all right. our thanks to rachel evans. , itsing news on wework chief product officer is said to depart the company. that news breaking now. we will bring you information as soon as we can. let's check the business flash headlines. amazon defending its digital

assessment and introducing tools to reassure users after debate about the practices they are using. among the new products, the studio, a high-end speaker, and others. have fullsco police faith in a pilot program to use even electric patrol cars, though a vehicle ran low on power last week during a chase. a police officer was pursuing a suspect was his electric vehicle warned him he only had six miles of battery left. they nab the suspect a little while later. repairing for the possibly of no closingxit, one unit is to prevent potential disruption to the supply chain if the u.k. leads the eu without a deal. that is your bloomberg business flash update. coming up, more. this is bloomberg. ♪ here, it all starts with a simple...

hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today.

♪ acting director of national intelligence joseph maguire says he upheld his "responsibility to follow the law every step of the andht as he reviewed intelligent communities whistleblower complaint detailing president trump's interactions with the president of ukraine." house democrats had criticized him for withholding the complaints. he testified today before the house intelligence committee. >> we consulted with the white house counsel's office and were advised much of the information in the complaint was, in fact, subject to executive privilege, a privilege i do not have the authority to waive. unable of that, we were

to immediately share the details of the complaint with this committee. >> the whistleblower complaint shows that during the july phone call, president trump hurts the ukrainian president to investigate political rival joe biden. mr. trump has denied doing anything wrong. the president is back at the white house after a week in new york city, where he attended the united nations journal assembly and held by lateral talks with world leaders. after air force one landed from president spoke to reporters about the house impeachment inquiry. >> the witchhunt, here we go again, it is adam schiff and his crew making up stories and sitting there like pious whatever you want to call them. it is a disgrace, a terrible thing for our country. they can't do any work. they are frozen. the democrats are going to lose the election, they know it. that is why they are doing it. senateashington, the

confirmed the new labor secretary. democrats raise concerns about and accusations of violations. he succeeds alex acosta, who resigned in july and that outcry over his role in a plea deal for jeffrey epstein when acosta was an attorney in florida. the former french president jacques chirac is dead, serving from 1995 to 2007, led his country into europe's common currency and spearheaded opposition to the u.s. invasion of iraq. he was found guilty of misusing funds during his time as the mayor of paris after leaving office. he received a suspended prison sentence. he was 86 years old.

global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. as markets grapple with rising political uncertainty and , possibility for recession in the u.s. continues to be thrown around. ideaext guest believes the of a brief recession is not so crazy. he joins us now. ian, great to have you on set. how plausible is a recession right now? how close are we to one in the next few quarters? >> it will take a few things to fall into line. the manufacturing sector is in recession. we need broad weakness and spending come exports, and the consumer, which hasn't happened. the consumer is not feeling the

pain of the tariffs on consumer goods, just imposed the first stage this month, and the second in december. so that has the potential to upset people. it could be a hit to spending power and confidence. , people willime not like the slowdown in growth already underway, and it will probably get worse. although some manufacturing indicators are stabilizing, most in the u.s. are going down. u.s. export quarters appear to be cratering, so there are things that are quite week, and some things might become quite week, but to go into recession, you need to see big imbalances. if we get a reception now, it will be the first one triggered

by confidence stock, by the tariffs. romaine: we talk about that confidence shock and the consumer side of the equation, the concern has been if the consumer does turn, it will be see withan what you business sentiment or manufacturing. do you think that is a realistic way to look at it, or is that a little bit more pollyanna. >> consumer sentiment has been strong from a 4.5% in the second quarter, 3.5% in the third, but the danger is it falls off a cliff in the fourth quarter. chain store shelves shut up after consumer tariffs shut up, so if people were doing holiday shopping in august, what would they be doing in december, so there is a risk of a quick steepening? , onethere are two themes is monetary policy efficacy is not great, maybe because rates

are already low. there is this view there is not much more central bankers can do. ideayou layer into this that what could potentially hit us is a confidence shock. is that the type of thing that could counteract that? >> that is a tricky one. we don't know. is not interest rates. it never has been. the problem was the china slow down, and on top of that the trade war. it has never been about the fed. ratios are rock-bottom. it is a confidence event. the tricky thing for the fed is this potential slow down potential recession. tariffs andng that rising labor costs are pushing up inflation.

fed with aresent the conundrum. maybe they are throwing their hands up and saying we don't know. some of this become semantics. you had the atlantic and new york fed lowering their gdp forecast. edge,are on that knife's doesn't that complicate with the fed can do? >> absolutely. it is no man's land. will stay 1%and for a while, and at the same time inflation is creeping higher, and i think core inflation will be above 2%. we might print a number we have

not done since the 1990's, depending on tariffs, and that makes it difficult for the fed. think,at do you obviously if it is about confidence, tweet risks, maybe the trade war could end, and so, is it plausible that the simple view that next year is an election year, the administration will not want to tip us into recession? >> if we had asked the question , people would have said you were crazy, and yet that is what we are heading towards. we are in uncharted territory. would be forthing the president to take all the tariffs off and reset the relation with china.

you get a big bouncing competence in the stock market. you would certainly help to turnaround the mood, but i can't have confidence that is what will happen. doublehe president will the tariffs. we just don't know. romaine: from an economic perspective, we talk about how we are in uncharted territory. we are there with regards to how the economy is shaping up, the change in trading relationships globally, and the fed and theral banks have admitted normal policy tools may not have the effect they used to. does that make it more vulnerable for an economic shock? >> absolutely. there is no room for error. let's say the trade war gets more intense, where is the protection. there are a limited number of

things the central bank can do. they need the private sector to dig itself out of the hole. this is the paradox, a typical u.s. economy in recession, there's not much the administration can do. waittially they have to for the private sector to work out the problem. this time, we have potential recession caused by the administration. we have an administration that could fix it tomorrow. i will be long the s&p tomorrow at the present tweets at 7:00 a.m. that the tariffs are gone. unlike previous presidents that have to sit back and wait for the fed to do their thing, this administration can fix it because of problems of their own making. romaine: thank you. still ahead, bitcoin extending the decline, concerns weighing on crypto. we will talk about that next.

this is bloomberg. ♪

romaine: time now for a look at stories trending across the bloomberg universe. softbank changing its tune. the head says businesses must focus on good governance before going public. onomberg.com has a story chicken going national. the ceo says to have 500 locations in the next six to seven years.

twitter reporting investment in robots is rising. annual sales will exceed the 2018 record of 16.5 plane dollars worldwide. japan, korea and u.s. come in germany round out the top five, with china investing most of $5.4 billion. the automobile industry and electronics industry are the biggest recipients. you can follow these stories on your terminal or bloomberg.com and at tictoc on twitter. bitcoin,rom robots to extending its five-day decline, dropping below $8,000 for the first time since june. for more, let's bring in our helpsuest, a company that raise money through ico's. before we get to the nitty-gritty, let's talk about the drop in bitcoin today. iraq below that a thousand

dollar level. i know these round numbers draw a lot of attention. >> there are a couple of things here. there will be big moves, a lot of volatility, but if we look at what is unique about this run going down, a few things stand out. almost all the volume came from derivatives exchanges, not spot exchange is. derivatives exchanges were doing more volume than spot exchanges. this points the idea it is not retail selling. it is larger, sophisticated investors going to derivative exchanges instead of spot exchanges. i don't know if it is good or bad, but points to the fact these are larger sellers from a not smaller sellers. there are a lot of data points that are interesting. they went from a 3% tangoe to 2% backwardation. these are people selling future

instruments, so larger holder selloffs rather than retail selling. that points to a larger set of people making moves. bitcoin pink, this was the week that the ice exchange, deliverable bitcoin notable we getis these turning points right when there's a new vehicle for money to come into the market. >> that's right. the lunch contributes to the narrative. i'm not sure how much it contributes to the actual practicality. it is still small compared to other exchanges. me is thesignals to

increase in comfort of institutions entering the space. we will see that octopus of the financial industry reach more into the space. why haven't we seen the sec get more comfortable? it seems we have been waiting for them to embrace it? >> there is a lot of fear about all the bad stuff the u.s. government has done. that isn't really true. there hasn't been a concentrated assault on the space. i was in washington, d.c. talking to regulators and legislators, it is just a game of patients. they just want to understand it before doing anything. there is so much ambiguity that is challenging. the markets are not orderly. it's hard to tofu the good players are, so tough to regulate a market like that. coins lot of the other

did much worse. is there still too much garbage in the space for it to be taken seriously? is there stuff that is still too frothy, too many projects that need to go some people can focus on what matters? >> there is a lot of garbage in the space. what needs to happen is other good assets need to develop their own narratives and usage and outperform the noise. you need to have more use cases, more adoption, and that is what will drive attention. see anythingre to not rising and falling with the market. wheres still a market everything tends to move in the same direction. >> that's right. bitcoin is increasingly uncorrelated with the market, but other assets moving

correlation with each other. romaine: does it still serve a purpose as a haven assets? we saw it behave that way earlier in the year, didn't necessarily behave that way over the recent bout of market volatility? >> i think bitcoin is developing as a safe haven asset. helpsnew event happening it, whether the china trade wars, impeachment talks, that is all affecting the price of bitcoin and people are buying into that narrative in the safe haven argument will become stronger. romaine: thank you. some breaking news, delta sealing athe company 2.2 5 billion deal, taking a 20% stake in an airline, expanding its reach in latin america, primarily brazil, chile, and

other south american nations, a $2.25 billion deal, 20% stake in latam airlines. holdsoming up, carrie lam her first public dialog session amid the ongoing process. what she had to say. this is bloomberg. ♪

romaine: let's check the business flash headlines. peloton makes its trading debut on the nasdaq, closing down. raising $1.16 billion. it was the third were starts at the 2008 financial crisis among ipos. amsterdamlunging in come after dutch authorities open a criminal investigation

into the bank under anti-money laundering laws. a prosecutor is accusing the bank of failing to report suspicious transactions and not conducting sufficient checks on clients. confirming a strategy outlook that is underwhelmed investors. the company sang in the statement that the bank is no longer anticipating a rise in underlying revenues for 2019 due to the deteriorating market. shares of carnival fell come the operator cunnin cutting earnings blamingions, rising fuel prices and the impact of hurricane dorian. lam taking carrie the stage amid protests. she says it is the government's responsibility to do with the unrest's. is there anything at this point she can say, carrie lam that would actually diffuse the

protests? >> she couldn't so far, because the protesters have focused on this one slogan, five demands, not one. there was a town hall style dialogue she had with the public , took questions from different numbers of the public. everybody was asking where are the other demands. we get you withdrew the extradition bill, but where are the other demands, the inquiry into police tactics can own resignation, the free election that the hong kong people want, so unless you get off five from the protesters are saying they are going nowhere. romaine: we have seen data the hong kong economy. bloomberg intelligence put out some data predicting a recession for q3 for hong kong. what do we know in terms of the data have these protests have affected it? >> and the second quarter, the

so aaction was your .4%, potential technical recession. we have seen the slump in retail sales. shops are open, but no people coming in because they are afraid where these protests might corrupt. you're hong kong's exports and imports taking hit. you have weakening demand due to trade tensions from exports falling 3.3% year on year in august, but imports declining 11.1% in august, and that is because the bulk of those imports, demand would come from china and that has been slowing down. beenthe hang seng has doing pretty bad with all the weakness. are people starting to buy the dip? >> down 14% since april, now analyst sang we could see our price of 7.5% by the end of december, the price target 28,000 come at the moment

26,000. raised the ab invev ipo $5 billion, some more optimism over valuations there. joe: thank you. for more, don't miss daybreak are straight and daybreak asia. goes insideoomberg the hong kong protests in a special program, hong kong on edge. we will hear from key players and look into the causes of the unrest and possible solutions to a crisis threatening the future of the city. you do not want to miss that. it airs tomorrow at 8:00 p.m. in new york. don't miss this, u.s. numbers for consumer sentiment and person spinning out tomorrow. romaine: more economic and industrial data from china coming up tomorrow as well. that is all for "what'd you miss?" bloomberg technology coming up next in the u.s. joe: have a great evening. this is bloomberg. ♪

♪ emily: i am taylor riggs in san francisco. this is "bloomberg technology." coming up, a bumpy ride. peloton opens below the ipo price. we hear from the ceo john foley, who cited disappointment. plus, micron reports, shares fall after hours after gross margin and profit outlook nest estimates.