you dance with the girl that brought you. tack has been such a leader throughout this rally. when you feel some companies like apple. but with interest rates remaining very low, that's great for growth-type companies because the present value of future earning streams is pretty high. and the good news today is the number wasn't so strong. >> we have it there across the board, almost exactly in terms of percentage points moves but 42-point move on s&p and rally the past couple of days. >> certainly versus the 20-day moving average. when you look at the best performer, tech leading today and for the week.

tech hardware up 1.5% of the week. >> what are you watching? as you can see it is off by 9.5% and cutting back the orkforce, about 16,000 employees. growth has been arranging from negative 10% to positive 10%. they are looking at zero top line growth. next year could be negative 1 and looking to boost that around. if we look at the long time chart. you are back now down since the july of 2017 and hoping to turn around the bottom line. and earnings from share from 225 to 232. at least in the interim, that should help the bottom line.

you have to do more to drive that top line growth and can't cut your way into growth. >> it was pretty notable turn around in the bond market today and look at the two-year yield. t shot up four basis points. it wasn't a disaster as some had worried. in this chart, it faded back down by the end of the day, trading below 1.4%. that is near the lowest. curve ear yield so the is flatening. and perhaps it all goes to that feeling that the jobs report created. note that the fed funds future pricing at 70 percent chance in the october meeting. the chance of a cut in desist

now back to 50%. a coin flip for the december meeting. >> it sure has been quite the week. i want to take a short trip down memory lane to show how far we have come, because in the beginning of the week, it seemed as though bad news was bad news. on tuesday is when we got that manufacturing number, the worst in 10 years. that sparked the first back-to-back decline in the s&p 500 in the entire year. since then, since after wednesday, we have seen a rally of more than 3% and past four days, we are not even down 1%. what mike alluded to is that bad news reverted back to bad news being good news because people are talking about how much the fed will be forced to cut the rest of the year. and this will show you the start of the fourth quarter even though we are only four days in and how it compares to history. one point on wednesday, we were having the worst start since

2009. we have seen a rally today and yesterday. ot only the worst start to the fourth quarter. shows how far we have come. >> doug sandler, global strategist at riverfront group. and a micro strategist. doug, i want to go back out to you, there is so much stuff for investors to pay attention to right now, whether it's trade, earnings, ecodata, which is confusing, impeachment, trying to weigh the importance or the significance we are getting out of the head lines. what is the noise? what do you think is worth teing into to anticipate where the market is going? >> we have been watching for the last year what we call the three

r's, interest rates, resumption of trade talks. those are the things we focus on. the fed cut rates twice and probably going to do it again, that's what the market is telling us and central banks around the world. from the recession perspective, things are still ok, slow but ok. not so much in europe and that is something we are keeping an eye on. and trade talks, they start again next week. there has been a de-escalation of trade tensions and see if that lasts. one of the things people see when they see bad economic numbers and bad is good, it keeps the fed engaged but makes it more likely we get some sort of trade deal simply because the administration needs the economy to be humming in a presidential election year. >> and keeps the dollar slightly weaker. and i'm interested in your

perspective of whether that is stock to make. we have seen the major markets very aggressively bounce back. >> i think international markets -- lately it has been after markets get beat up a little bit, the first things that gets pulled back are u.s. stocks. so i want to see days where the international stock outperform on down days and that hasn't happened this week and outperform on up days. until we see a change in that trend, u.s. remains our favorite place to invest. >> you work about the new york fed adding repoes and does investors position themselves? it seems this is separate. >> i think there is a lot of -- don't say disinformation but

misunderstanding. i mean this isn't 2007. it's not 2008. t is an issue but relatively technical issue. it's not like the liquidity that has vanished from the ned's balance sheet that would be deployed in the stock market any way and isn't something that needs to have lasting repercussions for financials that might broaden out and radiate across financial markets. the new york fed i think on behalf of the federal reserve board has been proactive. we have seen the fed's balance sheet begun to rice. the reason you don't hear about it anymore, they have done the right thing and provided liquidity. >> the fed is taking care of it.

that does it for the closing bell and for me. we will be looking how the impeachment inquiry stems from a political hit job that's gone bad. ♪

new york. ive in >> this is how stocks closed today, higher and the s&p closes off by 8/10 of a%.

>> u.s. stocks gained after fears of an eminent recession. taking money, we speak with a portfolio company. does the profit market consider in the near term. and the impeachment drama deepens, house democrats show hat the may have tried to have ukraine investigate the bidens. >> a mixed bag on the labor front. u.s. hiring and wage growth missed estimates while the unemployment rate unexpectedly low. d to a 50-year federal reserve chairman jay powell spoke this afternoon. unemployment is at a half century low and inflation is running below our 2% objective. while not everyone shares economic opportunities and the

economy zose face some risks, overall, the economy is in a good place. >> to put this all in context, we are joined by an economist. great to have you onset. first of all, obviously as we noted a bit of a mixed bag. maybe the pace of hiring slowing down based on the last five minutes. this isn't bad. >> it should give markets a reason to stop panicking and take their focus away from the idea that a recession is imminent and think about the fact that the recovery is continuing and we continue to move towards full employment. > this is reminiscent of 2015, 2016 and had drop in nonmanufacturing payrolls. but at the same time, you still had a drop in the unemployment rate. i believe wages kept going up

and g.d.p. did get close to zero, we managed to hold on. >> we are experiencing headwinds and look through those and look at the longer run fundamentals are strong. and don't get fooled again like we did in 2015 and 2016 when in reality we are in the middle of a recovery. >> was a recession panic or growth panic more and to the that we have got wage inflation will that feed into the consumer and the ability to support the u.s. economy? >> i would look it doesn't show that wage growth is slowing down. it is holding steady around 3% and that is still pretty solid wage growth. better than 2015, 2016. we should think about a tailwind to the economy. people are experiencing 3% wage growth and that will make them

feel more confident and overall consumer confidence, it is better than 2015. >> some of the research you have been doing and put it in context of the recent data. your firm put out a new study look at the freelance economy and i'm curious how things change as the economy gets better, freelance work, it goes from people do out of necessity because they don't have a full-time job or something that people have the luxury to do? >> that's probably the biggest change as the labor market moves towards full employment and job opportunities get better, we are seeing that freelancers are able to dictate the terms they work. more and more of them are choosing to long-term as freelancing and those who are doing it as temporary aren't doing it as often. >> i'm going to play devil's

advocate and freelancing reflects instability. you have a lot of jobs and wage gains but people are making multiple jobs to achieve that same level they got in years past with a single job. you think the certain parts of the job market is healthy from a long-term perspective? >> freelancing has been part of the economy. so it doesn't represent major new disruption to traditional work but how people have chosen to work. too much focus happens on the very narrow sliver of the economy that is gig economy work. freelancing is much bigger than that. this is skilled services and not sort of unskilled manual labor. >> give us an example. we think of uber driver and people who deliver your food. what is a specific example? >> the occupation that has the

highest percent are creative, arts and design and marketing and programmers and wide variety of skilled work. >> it feels as though it has been liberated by the fact that we have more work at home and digital revolution to some extent. any of those areas as opposed to trade tensions particularly when we have the support of fast growth and high technology companies? >> i don't think so. i think everyone in the economy risk trade tensions but i don't see freelancers being particularly exposed. >> going back to the macro economy, what should the fed look for in temperatures of saying -- you said we are getting closer to full employment but not like that wage growth is going crazy. right now, they are probably

more in cut mode than hype mode. what should the fed look for to say ok, this is what full employment looks like? >> faster wage growth than we are getting. an economy that looked like in the late 1990's. the prime employment rate to the share of working-aged adults is higher than it is now. 21%. you look at wage growth, the percent that have work, target inflation, those are the kinds of things we would look for to be more like the late 1990's which looks like we will improve. >> late 1990's in sneakers. we thank you very much. coming up, the republican senator has fighting words for president trump. the latest on the impeachment inquiry.

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>> a republican rebuke, senator romney criticizing president trump in a pointed tweet calling the president's appeal to china and ukraine to investigate biden. he is one of the few lawmakers from that party to publicly speak out. for more, let's welcome our national correspondent for bloomberg business week. there has been a lot of moving parts to this all week long. politics is full of dirty tricks, we know that. it seems this whole impeachment inquiry seemed from a start not om to discredit joe biden but from an effort that successfully discredited hillary clinton a

couple of years ago. > i did a a article on this. for most viewers, this came out of nowhere. all of a sudden, it's the cause of an impeachment inquiry. you have to go back five years. you may remember a book called "clinton cash" by a conservative author and came out on the eve of clinton's candidacy. he peter schweitzer book and had unethical behavior with shady donors surrounding the clinton foundation. that became a real problem for hillary clinton and tarnished her image in away she never recovered from. after she lost that election, peter and the organization he helped found, the government accountability institute, an

investigative nonprofit organization decided to go over again. they did a book looking into joe biden and his son. they first turned out this information. and the book came out last year in 2018. didn't make much of a splash, only over the last couple of months as rudy giuliani and folks in the conservative media began to pay attention to these charges and we know from the white house call, congressional testimony and trump himself picked up the phone the try to advance the reporting into biden to turn up dirt on a potential rival. >> something that you explained in your column is that kind of the beauty, if you want to use that word of clinton cash is when it came out, it was presented as sort of this -- it didn't necessarily appear partisan. the author of that was conservative but they did a good

job of getting mainstream media to pick up on the reporting in the book and explore it. and now it feels like this approach that trump took, a little more direct, trump is not exactly known for subtlety and undermines the strategy this time around. the biden allegations aren't surfacing in the "new york times" but now, it's clearly political. >> the first time around with clinton, this was very sophisticated political strategy. what the government accountability and steve bannon did was, they compiled this evidence and handed it off to the "new york times." and they did a front page story on a company called uranium one, russian -- i can't remember what it was, caused this whole problem for clinton and conservatives step back and let

this story evolved. the difference as you point out, you have a very impulsive president who is frustrated with the mainstream media wasn't picking up these biden charges and did what trump so often does, injected himself in the story and amplify on the one hand, we are talking about biden, but on the other hand, trump is probably going to be impeached in the house of representatives. we'll see if it winds up working well for him, but he short circuited the process. >> in so doing and may be back firing for rudy giuliani. what about the backfiring for the actual front shot for biden himself? do we think this could be a downfall of his? and he and elizabeth warren is going to rise to the helm when it comes to the 2020 democrat

push? >> there are no charges of illegality. even peter's focus is not on joe biden but his son and yet here we are in the midst of a national conversation about corruption and biden that won't be helpful to biden. whether or not it hurts him in the poll numbers. there are a few poll numbers that are have come out. biden was trending downward. if this has an effect, it won't be a positive effect and could well open the door for a candidate like warren, one of the may jor planks in her platform has been anti-corruption. if you are turned off by joe biden and still incliped to support a democrat, warren may very well be an appealing alternative. that would be tough for biden because she is the main challenger. >> given what has happened with biden, how hard is it going to

be for them drum up negative things about someone other than biden should say a warren or someone else rise up to be the democratic nominee? >> we don't know yet. what we saw from trump, he is very good at drumming you whether it's low energy jeb bush or crooked hillary clinton. i'm using his nicknames. now he has joe biden. i'm sure he will come up with something for elizabeth warren or kamala harris if they turn out to be the nominee. >> we thank you nor joining us. quick check on the latest. a merger with sprint is one step towards winning approval. five-member agency opposes the deal that would require agency ction by october 16.

a checkup after the worst mega financial crisis. it is down 4 %. on monday, and underwrote the deal. and one more job rework. a rental work said that job cuts ill take place this month. some of those cuts could be in business units. >> coming up, the court in hong kong allows the mass band to stand. demonstrators call for did he tines in protests. we'll discuss that next. his is bloom

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mark: first word news. house investigators want vice president pence to give the documents that could shed light on whether he helped president trump pressure ukraine to investigate joe biden. in a letter to the vice president today, the democratic chairman of three house committees cites a pence aid may have listened to the july phone call between president trump and ukraine's president. they also want to learn more about pence's september 1 meeting with ukraine's president. british prime minister boris johnson's lawyers promises a scottish court he will uphold a

law to postpone brexit if he cannot reach a deal. hours later, the prime minister tweeted that does not mean there will be a delay. in brussels, a european commission spokeswoman was asked about the brexit deadline. >> what we have always said is every day counts, especially as we approach the end of october. technical level meetings are currently ongoing as we speak in order to give the united kingdom the opportunity to present separate proposals in more detail, but no deadline is set. mark: key european leaders proposedasures johnson this week will fall short of the concessions needed. in hong kong, a court decided not to grant a temporary suspension of a law banning protesters from wearing masks. the government invoked an emergency law.

there is due to take effect -- the ban is due to take effect at midnight. protesters called for a mass demonstration with protesters wearing masks. the u.s. supreme court have a great -- agreed to rule on a louisiana law that requires doctors performing a procedure to get permission from a local hospital. measure struckr down in 2016. diahann carroll, the actress and woman as the first black to serve in a non-servant role in a tv series, has died. she was 84. carroll's daughter told the associated press her mother died of cancer. arroll played julia baker,a nurse whose husband was killed in vietnam on a groundbreaking comedy on nbc from 1968 to 1971.

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'm mark crumpton. this is bloomberg. >> let's talk british politics. prime minister boris johnson says he is holding strong, noeting deal or no deal, delay. was put in court documents. we meet with an opinion columnist. as ever, the plot thickens and becomes ever more muddy. >> it seems the latest turn is potentially the hungarian veto.ment will act as a

all of the countries in europe have a veto on this, including the u.k. they could use eu law to ifnically bend u.k. law boris johnson extends three months of negotiations. some of the countries such as hungary stepping in and doing the deed, therefore veto any extension. it seems the british government has a fairly aggressive plan. they say they will obey the law, yet somehow get around it. it is conspiracy central. a reason for optimism in terms of soft on the eusite -- softening on the side? >> what is happening at the

moment is the eucannot reject out of hand what are sorted details. -- sordid details. they have asked for a few days to a week from various formal sources -- various sources, it is not formal yet, but it is clear the eu is not happy to what is presented and will not agree to what is currently presented by the u.k. government. this is not the only deal for flexibility. i expect the eu will say no, but they could equally come back with something that the u.k. government will say no to. if this carries on for a week and there isn't bad press coming out, then we are in this tunnel and maybe we get something i had of the october 17 summit -- ahead of the october 17 summit.

ofre is a small sliver light. it willetty unlikely happen, because both sides are far apart. >> thanks for joining us. let's turn to hong kong, officially invoking a rare set of emergency powers not seen in over half a century. the move banning facemasks in public. chief executive carrie lam calling the move a necessary one to stem violence. >> it is not an easy decision to legislate, to ban masks, but given the current situation in hong kong, this is a necessary decision. >> the decision sparking fresh protests, demonstrate is: for a ma -- demonstrators calling for a mass show of defiance. ban the facemask

-- i understand why hong kong is doing it, but it seems like the protesters are going to use this inan excuse to flout it some way or another. what you think the outcome is going to be? >> we have already seen it in the reaction of the protesters so far? this will invite widespread civil disobedience, which will further erode trust in the government. this move by carrie lam was one of desperation. the protests started in reaction aconiancobian law -- a dr so, the extradition law, thinking you will solve it was seemsr draconian law ill-conceived. >> is there something carrie lam and the hong kong government can

do to really quell the protests? >> well, you could listen to the remaining demands of the protesters. there are four that are still outstanding. crucially, one of those demands, universal suffrage -- to elect the government of hong kong -- is a bridge too far. there is no way that beijing will succeed to that. you have a case of both sides, beijing and hong kong protesters in a stalemate. ofwe have seen viral videos bankers hit in the face as they are going into work, perhaps adding fuel to the fire. a celebration is happening this weekend. there is not we could get even -- is thought we could get even worse protests. do you anticipate that?

if we are looking at the trend ifviolence collation -- >> we are looking at the trend of violence escalation, it is possible we will see more. this,ice respond to sometimes ham-fistedly, sometimes with deadly force, that just further in flames this -- enflames this cycle of violence. as we watch this unfold, it is important to remember the banker of j.p. morgan watching the video, whatever side you come down on this, was attacked. saying i am a chinese person is not sufficient provocation for assault. >> i think we can agree with that. you look at these images and the potential impact on business and the economy. long-term, do you think this will shift economic sentiment

for foreign companies doing business in hong kong, or is this something companies are willing to ride out? >> i think these wounds will take a long time to heal, partly because hong kong no longer plays a central role it did 10 or 15 years ago for global companies. there are other places where you -- set up shop, seoul, tokyo i hope there is a peaceful resolution here and the road to healing can begin. we should not expect hong kong to return to a state of normalcy for some time. >> thank you very much. coming up, we will take a look at how the three biggest names in m&a fell from grace. this is bloomberg. ♪

>> pride comes before the fall. in recent years, we have seen three recent m&a powerhouses upend industries with their ideas. they inspired fear and envy, until it all came crashing down. here to explain is our bloomberg deals reporter. this happens from time to time. you have some companies doing an extraordinary amount of m&a, then it crashes. some short-sellers look at players, and that is a red flag. what are some of the common m&a failures? >> bigger is not always better. investors are trying to push back on these companies that have been very inquisitive.

initially, some of these investors have gone along for the right. -- the ride. as my colleague wrote in this story, you have to look at valeant and softbank. g. talk to me about 3 joe gave a pretty dramatic intro -- i felt like we should have added music or something. [laughter] 3g has been in the news a lot for some of the stumbles, particularly the tie ups they had with buffett. >> they are behind some of the biggest well-known names in america, burger king, etc. they have a zero-based budget, where they force their businesses every year to justify every expense. the idea is you can't cost cut your way to growth. these investors have suffered . >> softbank has been very much eyes, throes of the media

particularly when it looks at wework, but also from an m&a perspective. it seems the fec might sign up for the sprint deal. >> even if the sprint deal goes through, softbank will be pretty underwater on their initial investment. they put in something like $12 billion of equity when they bought sprint. 27% will be diluted to ownership if this deal goes through, but they will still be underwater. they have to deal with $40 billion of debt on this investment. it hasn't gone very well. sprint is very interesting, because that was the beginning of the play for grand empire building. he was going to buy sprint and t-mobile in one go. regulators blocked that. there is uncertainty whether this sprint revival deal can go

through. even though the sec is on board, there is still the state ag's lawsuit against the company's. they don't think the deal is good for customers. it looks like it may end up in trial in december, which means further delay for investors. >> this is a story you will be following a longtime. thank you so much. talking softbank, we will talk to a company that has received money from softbank's division fund. the company is celebrating its seventh anniversary. joining me is its ceo. thank you for joining us. money --zing to take you were just all together. how do you change his view on what he wants from portfolio companies? do you have to look at the bottom line rather than revenue

growth? an ongoinghave dialogue with him. we are not like some companies .hat might have had an investor we have a canadian pension fund, qia, and many others. >> what's type of influence do you are investors have? we talk about softbank and what masa does, primarily because he sets the tone for investment. you have been an incredible growth story, but at some point, is there pressure from investors to deliver on profitability? >> i am fortunate that we don't have pressure to go public. investors are really great partners for us. we are net profitable in the majority of our markets. we can decide to be profitable in any part of the company in a 12 month period.

the pressure i get is from our customers. we have 13,000 agents, all looking for more tools. my mom is an agent. she expects a lot of me. [laughter] >> when you say you could theoretically be profitable at if you you want, but continue to have demand for more tools, more resources from your mean the does that model would be profitable at the flip of a switch? >> the budget for profitability is around your desire for depth versus breadth. it was widely reported. i think other companies have tried to conquer the world. we are in 135 cities. >> that is close to conquering. >> you have gone bank on

opposition intelligence. have an executive -- executive leave, but a rehire from microsoft. what sets you apart from everyone else? roger: joseph was cto of microsoft before that, cto for consumers at amazon. with him, we have more than doubled the product team. ai has many applications. --will transform and the will transform every industry. one example is recommended for you when you are searching listings in real estate. it will tell you what you are most likely to buy. images are really important in real estate. it is an image business.

a lot of images can be fuzzy. ai can predict which pixels should be added to a picture to make it clearer. >> ai has made a great for customers like me, but how do you balance that out with the idea that you have this army of agents, the traditional human beings that would do these transactions, and now they can be done without them? >> 90% of homes are bought or sold through agents. the only reason compass exists is because people who come into real estate from outside the business have tried to replace agents. we are the one company with 400 plus software engineers and designers trying to make agents better. the industry has aggregators that build for consumers, for agents, but no one collaborates

for both. >> thank you for being here, ceo of congress. from new york, this is bloomberg. ♪

>> capital has advice on how investors can win in the sector, just saying stick to the plan. we spoke to the comanaging partner, asking him about his approach in investing in today's environment. >> i think it is important to be more disciplined to your strategy. >> i don't think anyone in private equity would have admitted to being sloppy before. >> i would not say sloppy, but i think you could be less focused. there is a certain level of inefficiency in the market that the private industry could take advantage of. now that is not the driver of value. strategy,nk about our

there are two poles, one is actions that are manageable. teams brought by j.p. morgan or goldman, you get a nice presentation and dinner. a lot of times, those are very good companies. you know something will happen there that is actionable. we focus on what is interesting. we will spend years and years way in advance of what might not become an opportunity, just so that we understand a theme -- to use an example, the health care one -- who will be on the side where do youngels, think opportunity will arise over the next 10 years? we put an enormous amount of time in that. >> sourcing. >> sourcing focuses instead on what we really have conviction. as an organization, we operate

tandemll, and we work in and protect things together when we have deep convictions as a team. >> that was tpg's capital todd sisitsky. apple reportedly had a problem it hadn't counted on. demand for the new iphone stronger than expected. according to the nikkei asian review, apple is told to increase supplies of the iphone by 10%, adding up to 8 million units. bitcoin seeing its first buy signal after wild gyrations. a measure of a board and downward movement of success in -- of successive closing prices. bitcoin is adding to further optimism it could catapult the coin higher. another blow to facebook's efforts to developing a digital currency.

paypal saying it will forgo the libra association at this time. the company saying it will remain supportive of libra's aspirations, and will continue to support facebook in various capacities. i thought this was an interesting story. we know lieber has had trouble gaining traction's for a variety of - -libra has had trouble gaining traction for a variety of reasons. charge -- e facebook >> another personal loan. -- personal blow. >> the original supporters have to reengage their commitments by the end of this month. >> i have to been skeptical this will go forward from day one. facebook is the most controversial company in the world, and the idea that regulators will let them infant a new cloak -- invent a new

global money? >> they seemed to know this would be an issue. for "what'd you miss?" >> "bloomberg technology" coming up next. have a great weekend. ♪

taylor: i'm taylor riggs in san francisco and this is "bloomberg technology." coming up in the next hour, target 2020. microsoft says a group targeted the emailed accounts of american presidential candidates. in the tech sector. 136,000 jobs were added in september.