stop and pause for a while. meanwhile, no pausing in terms of risk on move. closing the day up. scarlet: we did see a bit of a retreat in the last 15 minutes or so. nevertheless, positive throughout. 11 industry groups in the s&p 500 finished higher. of the 24 groups, only telecom close down. everyone else saw gains. even the russell 2000. >> those are your s&p gainers. i found it interesting that one of our producers filled me in on that so far this month other than monday, all of the s&p sectors have moved in the exact same direction. so kind of interesting. caroline: breaking news. let's head back to president trump. this battle,t into

interjected. it was supposed to be a 30 day period and we have been there for many years. speaking to both sides, we have told president erdogan how we feel. but we are speaking to both sides and seeing what can be made out of a situation. but we have no soldiers in the area. we are getting out of the endless wars. have to do it. and eventually someone was going to have to make the decision. frankly, we are getting a lot of praise for that decision. people are saying bring our people back home. we were serving as a police force. we defeated isis. we defeated the caliphate 100%. erdogan and the existing groups of people, including kurds. k,u have the bak -- the pk which is a natural enter -- enemy of turkey.

they have been fighting for many years. they are bitter enemies, possibly always will be. so, we are out of there. we have been out of there for a while. no soldiers whatsoever. we are taking some of the most dangerous isis fighters out. we have taken them out and we are putting them in different locations where it is secure. in addition, the kurds are watch, -- if they don't turkey will watch because they don't want those people out any more than we do. but we have certain -- taken a certain number of isis fighters who are particular bad -- particularly bad and make sure nothing happens to them and respected getting out. i think we are doing a great job. i think the people of this country -- i campaigned in ending these endless wars. we are all over the world fighting these wars. half the people don't even know what they are doing over there. i feel that we are doing the

right thing and i feel the country feels that too. we have had tremendous support outside of the little washington area. even in washington people are saying you are doing the right thing. has to be done. at the same time we are dealing with both sides and we are going to see what we do. >> this morning you cautioned aragon. since then it has appear there are heavy casualties. are you concerned about the escalation and are you concerned that erdogan will wipe out the kurds? >> i will wipe out his economy if that happens. i have already done that once. i hope that he will act rationally. you have to understand, they have been fighting each other for many decades. actually for centuries they have been fighting each other. it was time for the americans -- we did a great job. we took care of isis, we captured 100%. you remember i was thinking of leaving at 97% and 96%.

that last 3% was the hardest part. they said it would take years to do it. they did in a month. i flew to a rack and met with a lot generals. i said we can do it in two weeks to a month? and we did it. and we took it. in the meantime, we have been watching over a lot with the kurds, watching over a lot of prisoners. some very bad people. a few in particular very bad. really bad. people we have already taken them out. they should go back, by the way. they should go back to europe. many of them came from europe. they should go back to germany, to france. i spoke with boris johnson a couple -- to u.k. some to u.k. they came from various parts of europe. they did not come from our country. and we did them a big favor.

we said to france, we said to germany, we said to various countries in europe, we would like you to take your people back. oh, we don't want them, we don't want them. how about you take them? we don't want them either. nobody wants them. but somebody has to watch them. we did you have big favor. you take your people back. they are citizens in many cases. they did not want to take them back. i gave them one chance. i gave them another chance. i gave them a third chance. i even gave them a fourth chance. they didn't want to take them back. not that i blame them. we are used to that and the united states, taking advantage of the united states. whether it is trade or nato, taking advantage of the united states. but we think that maybe the kurds will do a job. and if not the kurds, turkey will do a job. but thousands of people. thousands. i don't know if you know that. we have thousands of captured

fighters, and tens of thousands of family members. and we did a big favor to a lot of countries. and those countries did not want to take them back. so, that is the way it goes. -- what've these isis if these isis fighters escape and pose a threat elsewhere? >> well they will be escaping to europe. we could have given it to them. they could have had trials are done whatever they wanted. but as usual, it is not reciprocal. you know my favorite word, reciprocal. that is all i want. i do not an edge. i just want reciprocal. and it is not reciprocal. it is not a fair deal for the u.s. and when president obama took know, when they bring in pkk, they are a mortal enemy of turkey. when you bring them into a partnership it is a tough situation. it is tougher turkey, probably tougher them. they have hated each other for

many, many years. for hundreds of years. it is amazing when you look at history and you look at culture. you look at the length of the time and the fighting for so long. so, we impose our self into it. look, i said it just yesterday. wheningle worst country -- you look at what we are doing with countries and their relationships with half countries -- we have with countries. the worst mistake that the united states has ever made, in my opinion, was going into the middle east. it's a quagmire. we are up to close to $8 trillion and we are bringing our folks back home. we have great, talented military. we are bringing them back home. our military has never been stronger, but we are now acting as police. we are policing areas. we are doing jobs that other countries should be doing. we are doing jobs, frankly, that

europe should be doing. we are doing jobs that pressure should be doing, that iran should be doing, that iraq, turkey, syria should be doing. they should be doing this. we should not be doing it. we are 7000 miles away. >> iran was talking about imposing economic sanctions on turkey over this incursion into syria. what do you think about that? >> i have already told that the president aragon, for more than sanctions. i will do far more than sanctions. and i would feel differently. i think linzie would like to stay there for the next 200 years and maybe add a couple hundred thousand people every place. i disagree with lindsay on that. i do agree on sanctions but i think much tougher than sanctions. if he does not do it in as humane away as possible. but i have gotten him to stop virtually from the first day that i was in office. but they have wanted to fight, and out is the way it is. and they have done it for so long. humane way mean?

>> we will have to define that as we go along. he wantsn to erdogan, to have people go back to where they came from, go back to syria. right now he is holding millions of people that would be all over the place if he was not holding them. so he wants to repatriate. he wants to have them go back into the area that he is looking at. but we will see. we will see how he does it. he can do it in a soft a manner, he can do it in a very tough manner. and if he doesn't unfairly he will pay big economic price. >> with the u set up to nancy pelosi yesterday you appeared to declare war on the impeachment inquiry. can you tell us in your own words why you think it is incumbent on the house to authorize an inquiry. and if they were to hold a vote and it were to be positive, would you then cooperate? >> let me just say that the republican party, and president,

but the republican party has been treated extremely badly by the democrats. very unfairly. because they have a tiny margin in the house. they have eviscerated the rules. fair don't give us any play. it is the most unfair situation people have seen. no lawyers, you cannot have lawyers, you cannot speak, you virtually cannot do anything. on top of it you have a guy named schiff -- and nancy pelosi knows this because she is as guilty as he has. i had a perfect phone call with the president of ukraine. i mean, perfect. people read it, but they don't read that. they heard schiff's version of it. heat a the american public. he gave the most horrible rendition, adding his own words. mark meadows is here. i can say honestly mark, you didn't believe it when you heard it. mark has never heard anything like it. and many of the people that we

work with, including democrats, have never heard anything like it. he made up a phone call. he made it up. what happens is they spoke about it a day too early. they heard a whistleblower came out with a false story -- people say it was fairly close, it was not close at all. what the whistleblower said bore no relationship to what the call was. we have a transcribed call done by professionals. and the call was a perfect call. but schiff made it up. then it turns out that the whistleblower was in cahoots with schiff. then it turns out that the whistleblower is a democrat, strong democrat, and is working with one of my opponents as a democrat that i met and up running against -- i might end up running against. the whole thing is a scam,. affix. . -- a scam, a fix. the republican party has been treated unbelievably badly and unfairly by the democrats. in the house, if it

were to authorize, would you cooperate? >> i would if they give us our rights. if they say you cannot have lawyers or anyone present, all these crazy things. even some of the reporter said to me it really is an unfair situation. they ask all the questions and then for instance the ambassador who testified was a fine gentleman. he gave great testimony for us. but we don't get to do any of that or show any of that, so they brought out only the couple of negative things, all of which were knocked out his other statements. it was a great witness for us, but if you would have listened to them you would have said it was a better witness for them. it was not. it was not even close. he was a fine gentleman. we saw that and we said it is very under fair -- unfair. >> there are reports the chinese are lowering their expectations for a trade deal. are you also lowering your expectations?

>> i don't think so. they feel i am driving a tough bargain. but i have to. you know it better than anybody. you do a good job. i watch a lot. in terms ofr down where we started, from presidents who did not do their job for many years since the wto founding. china went in 2001 or so. china went in and ripped off the world. i told that the president xi. i said this cannot be a 50-50 deal, because a 50-50 deal, you are up there, we are down here. 50-50 does not work. you have to have a little balance. this has to be a better deal from our standpoint. and i think they fully understand it. one of the really good meetings i had today was with our people on opioids and drugs and fentanyl. and fentanyl in particular with respect to your question.

and they said that chinese leadership has a lot of respect for our president. and they are really being much more careful. it is a much different situation. we have some great drug numbers. 25%, it isdown 15%, still horrible what is going on in this country and in the whole world it is horrible. but no, i think they have a lot of respect for us. the first time they had ever respected us. i think china has a lot of respect for me and for our country and for what we are doing. and i think they cannot believe what they have gotten away with for so many years. >> are the chinese wrong to be putting pressure on the nba? >> the nba is a different thing. i watch this guy steve kerr and he was like a little boy, he was so scared to even answer the question. he was shaking. oh, i don't know. he did not know how to answer the question. he will talk about the u.s. very badly. i watched popovich, sort of the same thing, but he did not look

quite as scared. but they talk badly about the united states but when it comes to china they don't want to say anything bad. i thought it was said, actually -- sad, actually. it will be very interesting. >> are you ok with the chinese government pressuring the nba over hong kong? >> they have to work out their own situation. the nba knows what they are doing. but i watched the way that kerr and popovich and some of the others were pandering to china. country, itur own is like they do not respect it. i said what a difference. it is very sad. to me it is very sad. >> joe biden came out for the first time today and said you should be impeached. your response. >> he is falling like a rock. we have him on tape with corruption. i mean, he is getting the prosecutor, for i guess it was $2 billion, to say we will not give you whatever the amount was

unless you get rid of this prosecutor. then he goes lo and behold the prosecutor is gone. that was the prosecutor. excuse me? $1.2 billion. not a lot of money. his son takes out $1.5 billion from china. by the way, the $50,000 a month he was getting from ukraine, looks like it is $160,000 split among him and his friend. also there is a payment of about $3 million to his son. his son just got thrown out of the navy. so biden is dropping like a rock. i do not think he is going to make it. i don't think he is going to make it. and i guess this is one way he can do it. he did not say that until right now and he sees what is happening to him. i guess he is no longer the front runner. but look, i feel badly for him. because i know he is going through a lot. he has been hit. and he has been caught red-handed. here is a man who is on tape

saying exactly what he is going to do in terms of corruption. and he gets away with it. if that ever happened to a republican, they would be getting the electric chair right now. right now they would be walking into the electric chair. a whole different standard. what joe biden said on tape -- this is not like, geewhiz, we think. what he said on state -- the media does not want to play the tape. they hardly play it. so i feel that it is too bad what has happened to him. he is sinking and his campaign is sinking. but he walked away with hundreds -- i mean, you look at the numbers. his son, who is at best incompetent, got thrown out of the navy. i don't even want to say why. a subject that we just discussed. i don't even want to say why. all of a sudden he is making a deal with ukraine where they are getting $168,000 a month between them. and he gets $3 million payments? and all this money coming out?

and the kid has no expertise in energy? no expertise. both know much more than he does, john. then you walk into china and a couple days later, 10 days later, he gets $1.5 billion out of china. and he has no expertise? and i have friends that are the smartest people in wall street. i said is that possible? they say no. it is a sad situation. >> i want to clarify something. if pelosi holds a vote on the floor on impeachment and commits to the rules of previous impeachment proceedings, you will participate? >> if the rules are fair. i don't know exactly your definition. if republicans get a fair shake -- because republicans -- look, we were very nice to them. when paul ryan was the speaker, he really would not give subpoenas. and i am not saying good, bad or indifferent. here's a man who knows it very

well. they go in with all the corruption or reading about and all the things they did wrong with comey and all these people. and all the things they did wrong. when we wanted a subpoena, meaning they wanted a subpoena, it was very hard to get it. i am not sure he ever even issued a subpoena. an nancy pelosi issue subpoenas, come on and give them. gives them to nadler, gives them to crooked shift. this shift is one crooked guy. the guy made up my phone call. in the united states congress, he made up my phone call. and i have had people who said i did not like the way you talked to the ukrainian president. i said, did you read my speech? schiff.ard shift -- i said let me see what he said. a lot of people saw that. and frankly i think it was not for me i don't know if anyone would have noticed and called him out. he took my really, believe it or not, congenial and gentle words,

and he made me sound like a tyrant. it is a terrible thing. he defrauded the american public. honestly, i do not know what can happen, but there are those who say he should be prosecuted for what he did. he should certainly be impeached,, but he should be prosecuted. i think he is a very bad leader of this movement. >> on the phone call there is a new report out today that the whistleblower said the white house official came to him and said you committed a crime on that call. did any white house official express any concern to you or speak to you about that phone call? >> it is all a big con, don't you understand? the phone call, you have it. it is a transcript. they keep saying the whistleblower said this and that. what happened is if they saw the transcript early, they would not have had a whistleblower because there was nothing he could say. all you have to do is read the transcript. ver calm. -- very calm. and what is even more important than a transcript?

although it is really plain-vanilla. no emotion or nothing. these are crooked people. these are democrats headed by a big democrat lawyer. it is a con job. a con being perpetrated on the u.s. public and even the world. in the world is watching and they get it better than a lot of other people. it is very interesting. a poll came out today, a very small people want to see something. i get very bad press, not you necessarily. so i say this. all you have to do is read the transcript. you know what is almost as good as the transcript i think? sayingainian president he did not even know what they were talking about. no pressure. the foreign minister of ukraine saying no, it was a very normal call. there was no pressure at all. what is bad is when you see all of the elements. when you see that schiff saw the whistleblower.

when you see what the whistleblower said about the phone call, and it was totally different. he made it up. and i don't know why a person that defraud the american public should be protected. ok? your administration tried to bury that transcript. >> that i don't know. i am not a lawyer. i assume it was for leaks. i have no idea. i am just answering. because this city is like the leaking capital of the world. if you want to get something out to the press, all you have to do is hand it to somebody in washington. so i assume it was for leaks. i read that and it does not see micah big deal. what is a big deal is they are prime -- probably trying to protect it from leaks. here is the other thing. we gave that transcript over almost immediately. it was not like until -- we waited until now. we give that transcript up almost immediately. and when i heard schiff's phony version and when i heard what

was being horribly sad by this so-called whistleblower -- and i would like to find who is the person in between the whistleblower and hearing about the conversation. the conversation was i think a perfect conversation. but who is the person giving this information? if that person exists, i am not sure that person exists. but i think it is important -- and i say this to congress, it is important to find out how -- that person is. because we could have a spy. and i don't want to have spies when i am negotiating with china and syria, and all the countries. if you look at turkey with erdogan, i have calls with all these people. and kim jong-un. i do not to have spies in the white house. i want to be free to make calls. i do not think it is fair that someone interprets a call. he did not interpret it wrong. i do not mind and mr. printers -- that call was perfect.

if you read the whistleblower's report, it bore no resemblance to the call. >> can we go back to your conversation with boris johnson? there was a case involving a car crash and a diplomat's wife. what did you decide? >> what we are going to do, it is a very complex issue, because we are talking about diplomatic immunity, which in itself is quite a subject. you people could lecture me on it, i suspect. but it is quite a suspect -- a subject. a terrible accident occurred. the person driving the car, they have it on camera. a young man was killed on his motorcycle. he was killed. sounds like instantly killed. through diplomatic immunity, left the u.k. and came back to america. andwhat i am going to try

so and see, because i understand -- and frankly a lot of americans feel the same way. i was telling boris, we have a lot of americans, they side on the fact that you have two wonderful parents who lost their son, and the woman was driving on the wrong side of the road. and that can happen. those are the opposite roads. it happens. i will not say it never happened to me, but it did. when you get used to driving on our system and all of a sudden you are on the other system, it happens. you have to be very careful. so a young man was killed. the person who is driving the automobile has diplomatic immunity. we are going to speak to her very shortly and see if we can do something. it was an accident. it was a terrible accident. we are going to speak to her and we are going to see the person driving the car, the wife of the

diplomat. we are going to speak to her and see what we can come up with, so that there can be some healing. there is tremendous anger over it. it is a terrible incident. and i understand the anger from the other side very much. you met with robert mueller in may of 2017 in the oval office, were you in fact interviewing him for the position of fbi, and were you aware at the time that he was in the oval office that he had had prior conversations with rod rosenstein about potentially becoming special counsel? >> to your second question, absolutely not. i had no idea he was doing that. to the first question,, he absolutely wanted to become the fbi director. i said no. you have been there for 12 years and i said no. it has since been proven that i was right. plus we have witnesses to it. i interviewed numerous people that day. and he was one of the numerous people making a decision ultimately. but he was one of the people.

i said no. nicely, respectfully. >> did you speak about a potential conflict of interest because of the dispute he had with you over the golf membership? >> we did not speak about that because i was not going to accept him. that may have been one of the reasons i said no, who knows. we had a businesses be -- a business dispute. we had three basic conflict of interest. none of them were very good. but we had a business dispute. but i thought he was there for 12 years, that was long enough, especially when you saw what happened with the fbi. nobody respects the fbi more than i do. i think if you took a vote in the fbi, they would vote me president right now. a vast majority. and they are great people. i know a lot of them. but your leadership was terrible. whether it was comey or mueller. this leadership turned out to be a disaster for this country. when you look at page -- caroline: you are listening to

theident trump, taking opportunity to discuss a wide range of topics, whether regarding turkey in particular. saying the u.s. does not endorse turkey's attack on syria. prime minister johnson and the u.k., he says he has been discussing the death of harry dunn. also discussing the nba and china and saying that situation is pretty sad, but they have to work it out in their own situation. so, plenty to be looking at. he mostly said he will target the turkish economy if the kurds are wiped out. romaine: we just want to bring you some breaking news. bed, bath & beyond have found apparently a new permanent ceo. mark tritton named president and ceo. their last ceo left i may amid activist pressure. a company has had 10 straight

quarters of falling shares. we will see if we can dig deeper into that later. right now let's get back to what is arguably the biggest story of the week, china/u.s. trade. china said it is open to a partial deal if president trump -- kicking off talks tomorrow in washington. for more we want to welcome professor at the university of virginia school of business, dennis yang. he specializes on chinese markets my financial systems and economic development and growth. expectation for this meeting, the 13th round of talks, are not necessarily high on our their side. i am wondering that if the u.s. was willing to lift the tariffs or freeze the tariffs, do you think that would be enough for china to, i guess, give into some demands beyond just buying agriculture products?

dennis: i think from the china side that the positioning is the u.s. is talking to continue to impose these tariffs. tariffs, china would be willing to consider a deal. i think the chance for a smooth deal is quite high. this is probably the last chance to reach an agreement before the 2020 elections. side then the u.s. clock is ticking. in pending tariffs will hurt consumers seriously. it is not a factor. it could push the u.s. economy into a recession. on the china side the pending tariffs will hurt chinese companies more than earlier tariffs. damage to themore multinational companies, the

joint venture firms in the supply chain. looked away more than once before -- walked away weather once before and they know each other's bottom lines. sidesime hopefully both have more incentives to reach a deal. caroline: trump has been saying -- we can see him speaking -- he would love to make "the right deal with china." we will have to see if a limited deal is deemed the right deal. professor yang, your view on whether the economy will bounce back. you talked about how it is multinational companies hurt the most. in the u.s., we could be pushed into a recession. see a stay of execution, will businesses be able to get some more confidence investing again? will we see a correction in

terms of movement higher in the economy? or is it just the same playing field? i think there have been interest on the website and the china side. side, i think they are aware of the major issues raised by the u.s. delegation, the administration. ii think that not only covers the trade deficit, but also state-sponsored and industrial policies. state-sponsored subsidies and policies. some part of these core i think theychina will maintain the stand to keep the core interests.

i think those will include the state-sponsored technology programs. also the industrial policies. those are the backbone of china's plan to accomplish industrial upgrading and technological advancement in the absence of well-functioning markets. i think we can give up other things. andess the trade imbalance continuously improve ip protection and someone. what you mentioned about the impact on consumer investments in china, that relates to the core interest of the u.s., which is different. that will continue to hurt foreign fdi into china. romaine: we have to get to this idea about market access, particularly for u.s. firms. there is a lot of controversy around the mba -- nba.

some had to retract an app people thought favored the hong kong protesters. we don't really have a situation in these trade talks where it looks like the interests of those companies, those u.s. businesses are being looked out for in this. at the end of the day will begin up with a situation where we have to abide by the rules of china without them necessarily having to abide by the rules of the u.s.? -- my owna very interpretation of the situation is that china is cautious in sending a message to u.s. companies. during this more than your long negotiations china has tried to express a view that is pro-business. there is some tit and tat

back-and-forth, but china has been relatively restrained. -- theyl show images have not touched on apple in the past. they want to distinguish their core interest. at this time if the sovereignty issue, hong kong's sovereignty is an issue, those are the bottom line and core interest. they want to protect that. at the same time they want to have an image that fdi will be protected. they will protect interests of multinational companies. the example is apple and nba, what happened in the past several days that illustrates the core interest of china and the attitudes of business or

market access to china. caroline: wonderful to get your expertise. we thank you, professor dennis yang from the university of virginia. let's talk geopolitics. arkey's president announced military offensive into northeastern syria. president trump speaking about it moments ago. >> i will wipe out his economy if that happens. once. done it i am sure -- i hope you will act rationally. is bo farroining us is. what is national -- what is restrained that not only trump but foreign leaders are looking for? >> president trump has spoken out on this twice. he has given different next when nations for what he things are basically his redline.

hishe hours and days after sunday announcement that the u.s. would stand aside of turkey if it invaded syria, the president said one redline for him was turkey having to take charge of these prisons, this network of prisons where isis prisoners are kept. earlier today, he basically expanded that instead of the kurds are wiped out he would enact tough sanctions on turkey. not clear that turkey -- any of this has been communicated to turkey. u.s. forces have pulled away from a couple of regions as president trump called for on sunday. are now in syria, along with terror attack some earlier. there is some fighting taking place on the ground and the k urds are calling for the u.s. to intervene.

romaine: the u.s. was in northern syria. we pulled out. we knew this was going to happen. we have condemnation from the eu, saudi arabia, iran. does the u.s. somehow get dragged back into this militarily? clarify, the u.s. pulled away from a couple of bases in northern syria. it still does have forces there. how far is the u.s. willing to let turkish forces march around northern syria? how much are u.s. forces willing to let their kurdish allies get attacked? if you start seeing u.s.-backed kurdish allies getting heavy casualties, it will be extreme pressure on the president to reverse his decision or reach some sort of an agreement with turkish president erdogan. we have seen a strong reaction from many of the president's closest allies on foreign policy, whether you're talking about lindsey graham, liz

cheney, even mitch mcconnell who also the president should rethink this decision. to bill fromthanks washington. giving us the update on turkey. we want to make you breaking news on bed, bath & beyond. they have appointed a new duethw ceo. that's effective on november 4. they lost their previous ceo two an activist battle back in may. the new ceo said his immediate focus will be on accelerating the ongoing business transformation of bed, bath & beyond. began turning off power for almost 800,000 people in california. the latest on all that next. from new york, this is bloomberg. ♪

caroline: time for the stories trending. -- dumped the world top robots could save active money-management from doom. concerning news for bacon fans. the u.s. could see tight supplies or shortages of pork bellies along with ham next year as the spread of a pig killing disease. the global market. in 2020.change tictoc on twitter is returning to the campaign trail after his heart attack this week.

sanders will remain active but will scale back on rallies to ensure he has the strength to continue his candidacy. the campaign says he will participate in the next debate on october 15. all the stories are in your eternal and that -- terminal and that bloomberg.com. romaine: pg&e taking a drastic step to keep the power lines from sparking anymore for spires, cutting the power to half a million homes and businesses across northern california. we learned the power company will be starting the second phase of the shut off later than initially planned. bloomberg's carol wexler joins us with the latest. this was supposed to take three phases of the shut off. we got one of the shut offs. what is the status of the second? >> the first part has affected areas primarily to the north of san francisco, much of the winegrowing region, sonoma, napa county.

we were expecting the next round sometime around noon in areas closer to san francisco like oakland or berkeley. they are shifting those to later in the evening because of changing wind patterns. caroline: plenty of confusion. plenty of concern of people running to the shops to make sure they have the right produce. reminders he was being affected? >> a lot of the areas outside of san francisco. san francisco itself is not expected to have power shut down because's climate does not make it susceptible to wildfires. areas that are heavily populated, full of people who commute to san francisco and silicon valley that will be affected. we are talking about the east berkeley, a little deeper in. a --is the first some

first time a densely populated area has been affected by the shutouts. unfoldssee how that when some other areas are hit. romaine: when they turn off the power do they have to go out before the turn the power back on to inspect the lines or someone flipping a switch? > the whole purpose is to make sure that powerlines are not going to start fires during periods of high winds. they are forecasted to leave sometime on thursday the pg&e was to check all its powerlines to make sure there was no damage or anything that could spark a fire. that means the powerless could extended through several days. caroline: great analysis from san francisco. now a quick check on the headlines. mark zuckerberg will get a firsthand look -- the social

network ceo will testify before the house financial services committee on october 23. they will examine facebook's impact on financial services and housing industries. production outg of china. the company is trying to avoid u.s. tariffs. fitbit says by january it with no luck cap products of chinese origin. no word where the devices will be made instead. update.your newsflash romaine: time for your favorite charts with abigail doolittle. stocks are hovering near all-time highs. abigail: you are right about that. we have deanna russo. -- da russo. seven trading sessions so far but five of those basically a 1%

mover greater. yesterday the s&p 500 falling slightly below that. volatility is back near all-time highs. let's look at the first s&p 500 chart, which seems to have mixed signals. dan: october, despite his reputation is certainly volatile but is generally a positive month. we are seeing the volatility. there is reason to believe the volatility could continue as the index trades between the 200 a moving average any declining 50-day moving average. the level i'm watching is the bottom of this range. for the up with 2820 s&p 500. the bottom of the consolidation we were in before breaking higher. down for that level we will complete a double top, a bearish reversal signal. i think that support level will hold.

the reason i think that is because if you look at the bottom of the chart, that the advanced decline line for the s&p 500. back in august it broke out ahead of the market and made a new high recently. there is some good for dissipation in the market. we are likely to hold at 2820 level on the index, probably about the rising 200-day moving average. that leads us to new highs before the end of the year. abigail: if the potential double play, it points to the fact or the big yet the s&p might go down. if we get the other situation pt where you are thinking we see new highs, how high are you talking? he was saying 3100, 3200. range is about 200 points wide. you are looking at 3200 on a breakout. not immediately but if we broke

out and held above 3000, it could go to 3200 absolutely. abigail: one of the most trade sensitive factors -- sectors is semiconductors. talk about this chart. dan: semiconductors. these are relative to the s&p 500. if i could only look at one chart, this would be it. semiconductors are so pervasive throughout the economy they really have become an important industry to watch for the overall health of the market. the new copper maybe. the we are looking at is chip stocks relative to the s&p 500 on the verge of breaking out through a two-your resistance. when there is a positive correlation between this ratio in the s&p 500, relative to the broader market, that bodes well

for the broader market. evidence does point to the fact that we could see a breakout. we are above a rising 200-day moving average. if a look at the momentum of the rsi, ishe 14 period holding within ranges. it does not get below the 50 level. momentum to the upside is strong for this ratio. it increases the odds of it happening before the broader market. abigail: it looks like you are bullish to some degree. a little caution but mainly bullish on the s&p 500 and looking at the chips relative to the broader market. thank you for joining us. back to you. caroline: let's bring you updates in terms of turkey and turkish sanctions. this is coming from a bipartisan framework built by lindsey graham and van hollen of maryland.

they reached an agreement on turkish sanctions. they will be releasing a bipartisan framework on turkish sanctions. we will bring you those home we have further details of what exactly the sanctions find tail. this is bloomberg. ♪

caroline: the nba on the outs with china, losing almost all of its major chinese sponsors. apple finding itself a target of the comet's party's fear. furor. stance saying we stand for freedom of speech. chinese put it in the newspaper, freedom of speech is never free. >> what was interesting to see was a contrasting positions on other companies that have folded

to pressure coming from beijing. commissioner adam silver defending freedom of speech, saying the nba cannot dictate what people say or don't say. the global times coming out with saying freedom of speech is never free. the nba incident might have the western world to pay attention to what and how chinese ordinary people feel about the hong kong riots and why they are offended. very different from what freedoh is never free. the nba incident might have -- ofaine: there are a lot other companies involved here. talk to me about activision blizzard. you had a gamer making a pro hong kong statement in the game. blizzard was quick to sort of pushyou had a back, push the gan

take away his prize money. now there is a huge backlash. how do these companies deal with this situation? shery: it is difficult. you are seeing this class between the political system, between countries in the west in china. you have seen this china coming from -- backlash coming from the online community. you have activision blizzard trending on twitter. we have seen these firms in china have all these ties with the nba. issan.alking about n about theking sportsman you group. there is really a list of all these businesses that have been doing work with the nba now cutting any sort of cooperation with them. caroline: is this the new rule of the game? good point that if you went to thrive and

survive in china, you will have to ensure you are incredibly apolitical and willing to apologize. shery: the unspoken code of doing business in china. he speaks all these firms and businesses and they are very firm about that. they have to be super careful not to wade into controversial issues that china thinks is off limits, like hong kong or taiwan. romaine: companies are not only more global but companies in the u.s. are being pressured by they have to be super careful not to wade into controversial customers to be more political or take stances on things. i don't know how you balance those. shery: it makes the situation incredibly difficult. romaine: you will sort all that out on daybreak australia and daybreak asia starting at 6:00 p.m. eastern. we went to bring you some quick breaking news. u.s. officials see kurdish officials mobilizing for battle. u.s. officials have halted anti-islamic operations.

technology is up nextbe more in the u.s. have a great evening. this is bloomberg. ♪ ening. this is bloomberg. ♪

♪ taylor: coming up in the next hour, zuckerberg to testify. he will appear before lawmakers this month on the social networks controversial cryptocurrency. we have the details. up in smoke. some life insurance policies will start seeing vapors as smokers.