caroline: you need a trade deal for that? quincy: yes, you need a trade deal. a little uncertainty not in the markets so much but among the cfos. i think it will keep the money off the sidelines. theuch money as during lehman situation, how much cash would into 2008. that money will go back to the market. well, it went incaroline: today. not on our highs, but still a 60 point move. still significant. readth --he brett b breadth of the market is expensive as well. caroline: havoc -- scarlet: abigail, let's start with you. abigail: the s&p 500 was neutral a couple of weeks ago, but then it turned more bullish.

the reason we had this neutral trend, this sideways act and forth, for what turned them .ullish was a higher load the buyers have more conviction on each dip. we now have the rsi: -- coiling up out of the coil. moreuggesting we could see strength ahead for the s&p 500. one place there wasn't strength was defensive yield proxy stocks. interestingly, a $260 million etf that focuses on defensive stocks actually rose today. it is outperforming the s&p 500 by about 1% this year. it equals about 100 s&p 100 --cks that have strong prop strong profiles, but the holdings are not what you would think of when you think of the

textbook definition of defensive stocks. after that it is software, electronics, diversified financials, retail, bank stocks, they all have at least a 5% allocation in the etf. it shows you that defense really is in the eye of the beholder. palladium surge to a record high as cleaning air rules -- clean air rules boosted demand for the metal. there is concern that the high price of palladium could prompt automakers to find low-cost materials, but so far there is no sign of that happening. u.s. andon that the china are moving closer to a trade deal is also lifting prices today. security's ryan mckay says that better overall sentiment in

the complex is helping as well. palladium is up more than 40% year to date. bloomberg intelligence analysts say that reduction is likely to continue to trail amid increasing demand. scarlet? joe: thank you's -- scarlet: thank you so much. we are waiting and looking for earnings, tumbling in after-hours trading after dow jones reported that the third-quarter numbers showed that the company saw sales of of million and net profit $4.1 million. third-quarter sales, more than triple to $92 million, net income, its first quarterly profit. again, those numbers are according to dow jones. the company booking its first profit. we will wait to get more details on the actual numbers and some of the calls behind the numbers once they cross officially. caroline: meanwhile, we are

still with gina and quincy krosby. we were talking about that bear -- talking about the significance of what has been done. we are gearing up for the fed later this week. how, gina, is the fed going to tread this difficult line? scarlet: we have alphabet numbers. as i procrastinate, paid clicks on google properties, up 18%. much less than had been expected at 32%. costs overall seem to have been coming down. this is an area to keep it -- to keep an eye on. just shy of expectations. the $12 thated to was expected. third-quarter revenue, excluding

what they have against the attack, as it's known. a slightly muddy overall number. earnings per share, big mess, with pay clicks on google properties at half of where the market had wanted to see it. when earnings are in general ising out the factors, what it when it's the biggest stock on the s&p? it's particularly important to the communications sector. at&t earlierter this week. a couple of things to watch in this sector, this was the sector were you saw the greatest a .argin merges this year the reason for that was the enormous amount of spending the companies are having to do to keep up with competitors, find new markets, and in ace books case have security spending and the like.

many were able to cut spending to create a turnaround in margins. it may be why our that not doing as well as expected. a necessity for great spending with paid clicks not growing as fast as they would like. to consider is that these were stocks that were just starting to rally and there is an anticipation of great earnings coming into the meeting and i think you want to watch carefully short-term reaction versus long-term durability. this is a growth space and it has not necessarily been in favor in recent weeks. people have been looking to buy those turnaround stories, yet the stocks are still pressing towards highs. take it with a grain of salt, the initial reaction, and see how you get follow through to the next day. scarlet: and we have beyond meet coming up with its -- beyond m eat coming up numbers. they had anticipated 14.3

million, but the stock tumbled when their numbers were first reported by dow jones, even as they booked their first profit as well. clearly, we know competition is rising, so that might have factor, but we will need to begin to hear what the company has to say. absolutely. quincy, want to go back to you on the importance of these mega-companies that were bellwethers. facebook, amazon, stillwell off of their all-time highs. what will it take for that story to come back? can we live without them being in the lead? >> you saw this when it was google. they spend a lot of money, it pulls back, and then they come back. many of these large tech companies go through consolidation, they pull back. sometimes they will lose 30%.

sometimes it will take a while before they start to base again. that is what they have done. it is this sort of natural system that they have to go through, pulling back and coming back out. i think that is probably the case with our that. alphabet. that -- we have seen the likes of the .ndustrial names that we have seen the likes of the industrial names that are completely different come into terrible earnings. talk about crosscutting, pulling back, talking about cap and others. market punishes and then they come back up. not because of the immediate economic environment, but perhaps an environment that the market sees. but that is different from the tech bellwethers. caroline: what other sectors are we going to have to keep a close eye on, in terms of reflecting the consumer? it had reflected business

investment and that has accept, but what about the consumer part of the business? gina: i think that you watch apple in the tech space for how that is going but i think the biggest risk is the consumer names. that is because the consensus is that the consumer is the stalwart. the result is that consensus has high old into these stocks in anticipation that they would satisfy expectations. any wiggle on consumer names is likely to be greeted much less kindly than where expectations are very low. they are extremely low for the tech stocks. they are kind to the consumer stocks. scarlet: is apple a consumer name, though? you could make the argument that it is. apple is in the eye of the beholder. it is all of the above.

the market, though, seems to be saying that as long as they don't perform poorly, we are ok with it. if you notice, all of the analysts who have come out to put a buy on apple, it's not a y.rong bu even in terms of hardware sales, it has been bearish and bullish, the estimate somewhere that will go. but apple needs to perform because it is in the dow and the dow is being hurt because of boeing. you cannot have apple also disappointing and then have boeing, you know, the dow will just trail the s&p 500 as a result. , that does itight for "the closing bell," and for me. romaine bostick will be with you, next, as we dive deeper into the results from alpha

bet and beyond meat. this is bloomberg. ♪

caroline: life, from bloomberg has world headquarters in new york, i'm caroline hyde. here's the breaking news if you missed it in terms of alphabet, it's a miss on operating income and in terms of paid clicks, climbing 18%. some wanted to see --. the revenue -- double that. let's get a breakdown from san francisco with ed ludlow. what are the key numbers that we

need here? head: focusing on ed: focusing on revenues to start, it is beaten again in both parts of the business. the core advertising business and the other segment, including the business. but as you pointed out, it is amiss across the board for alphabet. 23% below the estimate with operating income in at 9.1 million, well below the estimate for 4.5 billion. focusing on that number, the google ad business, the core business is an engine and it has done for a long time. it continues to do so. think about the first quarter when there was a miss on revenue that brought concern over the health of the advertising business looking elsewhere.

where the new age streamers might be taking it and where there was concern about youtube. and then there was that concern being put to rest. is that business continuing to make some progress? there's also the other one, cloud and hardware. fantastic reporting, there. now for more insight into how the tech sector is weighing on a larger equity markets, i want bring in michael regan. there used to be a time when the broader market they cared about this, but now it seems like now tech companies, even really big ones, can report earnings and miss and it's fine. michael: is a fascinating stock on earnings. it is this huge company, but they don't issue guidance. ,nalysts are kind of guessing

to some degree. and you see this stock drastically after earnings a lot. for a stock that size, it's pretty big. it has a tendency of each, miss, rally or fall on earnings day, trading weaker in the weeks and months after earnings. i think about this with amazon, too. hugely important companies, but very idiosyncratic market reactions on earnings day it didn't seem to signal anything to the market in the long-term. well, we still pay a lot of attention because of the weighting, the other big names this week, facebook and apple. even with this drop, even though the decline may not see a lot about -- say a lot about the broader market, it is still going to be a drag. michael: yeah, everyone is looking for signs that weakness

in the manufacturing sector might affect service sector. that was the first look at these numbers, hurting google too much. we will see with facebook. over the long-term you have russians about these stocks as far as regulation. if elizabeth warren keeps climbing in the polls, she has up thesebreak companies. the market needs to get its head around that. what does that look like? know, it bears to be a bit cautious about this until there is some clarity and a hint at what exactly a breakup of these companies would look like. we keep hearing this mantra to break them up, but how. how exactly with a break them up. caroline: today prior to this number we saw microsoft, apple, and alphabet at one point at

record highs. there?er the s&p 500 is or can we have the odd drag and it is now coming into its own? michael: certainly with rotation day in and day out, there was technology in the lead, but you are right, you can't have a rally without the participation of tech, just because of the huge waiting that they have. so my conductors are interesting. earnings reports in aggregate for chipmakers are pretty bad. the semi conductor index is near a record at. i think that people are really pricing a lot of optimism for the rollout of the five g networks. to: going out to -- back alphabet, other things, like where they mine the moon something -- [laughter] joe: i have a feeling that it

wouldn't he a successful ipo. a separate unicorn or whatever these days. but seriously, these are really big losses. michael: it goes back to the topic of if you did break them up, who gets the other bag? in retrospect it would make a lot of them look like a waste of money. joe: they are a waste of money. [laughter] caroline: they have also taken out waymo and some of the other successful bets that have become their own businesses. these are the more moonshot parts of the business. how much do you think, to joe's ongoing viewpoint, that we are now more about profit than we were revenue growth at all expense. >> certainly i think if we see the momentum in the equity market kickback up, we might go to -- go back to the old school

of speculative bets. trade tensions not taking a step backwards. i think that you could see a return to that. i agree with what gina said earlier. any sort of outperformance in value is going to be short-lived. people want to pay up for growth. is a good example of that. we had these strong growing bank stocks for a long time and it has settled down. people are clearly looking for that next area of growth. romaine: thank you there to bloomberg's michael regan, there. people looking for growth in terms of beyond meat, they are getting it in revenue guidance, beating estimates with a slight reaction in shares moving downward. expiration is tomorrow on a

stock that has a market cap a $6.5 billion on an agni will basis. also reporting earnings here, a modestly.ares up t-mobile beat on the main metrics, the story was about sprint and the never-ending saga of the merger. is anne: there interesting update coming from the cfo about that, including the memo on unspecified losses for the venture. romaine: we will talk about that in a little bit. from new york, this is bloomberg. ♪

all right,romaine:

in argentina, alberto fernandez cruising to victory. this a widely expected outcome after he crushed the incumbent back in the primary. after all of the vague campaign speak, investors are waiting to hear on the issues. for more on that, let's bring in patrick gillespie. imf and the debt, right? patrick: absolutely. he needs to tackle the imf agreement and renegotiate it in order to get the backing needed so that he can go to a crowded field and say i have imf support and ken renegotiate $50 billion in debt with private creditors. another factor is how fernandez is going to have a new relationship with president donald trump, because of course if you are going to get support

for a new agreement or a renegotiated deal, you need u.s. backing as well. that's an added ingredient to the current situation. but the first thing to tackle was the -- is the imf agreement. he is talking more about the economic social pact, raising salaries and social security payments. right now his priorities seem to be more on the left-leaning populist side. in the wake of the election we saw the central bank limit the ability of people in argentina the purchase dollars. -- to purchase dollars. how effective do people think that kind of currency control will be in preserving the central bank's war chest? patrick: well, it's a delicate situation right now. the central bank was losing reserves almost every day from late july up until right now.

so, the central bank had to take significant steps. i don't think anyone expected them to go from $10,000 purchases per month to $200. it's a band-aid solution to something that were wires open-heart surgery, for lack of a better comparison the controls are in place and the currency released today is stable. caroline: fernandez went to meet for a coffee on december the 10th. this before the rains are handed over. is that a good sign? patrick: was a nice olive branch to see them meeting together, see them shaking hands. nice optics. but both sides didn't talk about what was said during the meeting. apparently they met by

themselves without a formal team together. we don't have a lot of details about what they actually discussed and how their policy teams will work together. this afternoon coming to an said that he still doesn't know who the fernandez economic team is. there is still a lot on the front end of the policy side. certainly some nice optics today, but there are a lot of question marks about for the path forward will be. ministers, the imf, and creditors, it's a lot of uncertainty a day after the election. caroline: patrick lsp, we thank you. -- patrick gillespie, we thank you. this is bloomberg. ♪ the game doesn't end after that insane buzzer beater.

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market: -- mark: boris johnson's latest attempt to trigger an early election has been defeated by parliament. mps voted 299 to 70 in support of the prime minister's plan. the prime minister said that he would submit a simpler version of the legislation tomorrow, which would propose a date for the vote and require simple majorities. u.k. rejectedthe the brexit -- accepted the brexit extension.

the trumpf says that is building a powerful case for impeachment as the white house national security adviser charles copper min denied a subpoena today. --this is deeply can regrettable. he was compelled to appear and in the last few days the district court has ruled that the impeachment inquiry is valid. this is not investigation. these are depositions designed for a predetermined outcome. every time that we hear from a witness, every single witness that has talked to the president , each and every time they have said that he is innocent of any charges. two current national security council staffers are also scheduled to appear this week. it's unclear if they will in

fact appear. nancy pelosi announced in a letter today that congressional democrats will face their -- take their first vote supporting the impeachment inquiry. a democratic aide said that the vote has been set for thursday. republicans have argued that hearings are illegitimate as democrats have not yet taken such a vote. the speaker's letter to her colleagues claims that this argument has no merit that that a vote should be taken to "eliminate any doubt as to whether the administration may continue blocking witnesses and ."thholding documents mark esper's says that despite the weekend killing of abu bakr al-baghdadi, the situation in syria remains complex. secretary esper and the joint chiefs chairman mark millie spoke to reporters at the pentagon today. culmination of an interagency effort to find

him, capture him, and kill him. they were responsible for some of the most brutal of prop -- atrocities of our time. the general told reporters that a military working dog it was wounded in a tunnel beneath the compound is back on duty. global news, 24 hours per day, on air and on tictoc on twitter, powered by 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. let's get a right, quick check on the earnings situation. beyond me, this is probably one that a lot were watching. a negative reaction in the shares, raising projection for full-year revenue to 265 and $275 million off of what analysts were looking for. t-mobile usa, down about 2/10 of 1% there.

daca, moving higher, a strong finish because of june, 2019. alphabet, the company beating on key metrics but missing on others. let's get more on alpha that. revenue beat, but it seems that they are in some ways blaming venture bets. let's get to taylor riggs, in san francisco. you just got off the phone with key executives. taylor: you are right to highlight the income statement. it was a miss filtering all of the way down to the bottom line. the big question on the call is what happened on the right hand and left-hand side of that statement? the cfo saying that it was an increase in one-time expenses, highlighting that it was a noisy with its legal sediment charges in france that were

widely reported and interestingly, a knock on the left-hand side of that, a new accounting rules that sounds , but you nowine have to mark to market unrealized gains on the income statement, meaning that the recent activity around the ipo's for uber and slack may have been knocked down to the bottom line. a reporter wouldn't comment on those specific companies, just saying that recent ipos in canral, but you and i perhaps imagine what some of them might be. i want to talk a little bit about youtube. that has been a big growth story for the company and analysts say that if you want to increase the multiple, where do you see that future growth? it does have big growth to the upside. the company is growing at a healthy pace. it is allas you know,

about the cloud. i tried to ask her how she differentiates yourself. amazon and microsoft are such a dominant force in she really highlights that for google and how for that --alphabet it is a security hybrid and within the cloud business she is highlighting the revenue being of about 39% there, continuing to see some strength as well. taylor, there was a report attempted toogle purchase fit it. did she say anything about that? >> i tried, i asked her, she said they don't comment on rumors, but you and i know that if this were to be true it increases or highlights the google play into wearables, a really competitive market. apple and samsung are in that

market as well, but she said that they don't discuss rumors. all all right -- romaine: right, taylor riggs there on everything google, alphabet. louis vuitton, bidding to take over a jeweler. for war -- for more on what this let's go to crystal. this luxuryrmed tron of the- vol various brands. how does tiffany's fit in? >> if you look at them at the moment, it's a lot of luxury brands. how tiffany would have fit in is that it opens up the mass market for lvmh, which they previously didn't want to do.

but maybe now they want more high street that luxury. are there cost savings? what is the deal? crystal: it would help lvmh base. the client and on their side, retail is not doing great. rent is high. with property consolidation they could potentially put the shops together. more importantly, tiffany hasn't been performing extremely well. it's like their biggest one-day gain for them in forever. know, there have been previous proposals in the past and tiffany has not taken it. if this is sweet enough we could see the lvmh empire growing even bigger. caroline: analysts seemed to like it. they say it could accelerate growth with marketing synergy.

but there are other players. is this why we saw such a rally in the stock? that perhaps this offer is in the end? -- isn't the end? crystal: 120 per share compared to today's close, that's a discount. compared to friday it's about a 22% premium. in that sense of someone comes in with a 30% price, maybe someone else will take it, but the general sense is that yes, there could be other players in this. is a recognizable brand asset worldwide and it wouldn't be entirely surprising if another arty came to give them sweeter price. romaine: with the rally in the shares, when you look at it, is there an advantage for tiffany's to go on its own?

seems like some of the problems they have had our more cyclical, things they can work through. it's still an iconic that -- iconic brand. no one is forgetting tiffany. do they really lose value beyond the initial payday? >> tiffany, like you said, is a very recognizable brand. can they go on their own? the answer is yes. but they have changed hands several times in the past and, after all, if the idea is to remain the legacy, better that than someone like lvmh taking control to take the marketing to the next level. romaine: have you ever had breakfast there? i've never met anyone. joe: do they ever -- to they even have breakfast? -- do they even have breakfast? crystal: they do have pop-ups. romaine: i smell a "what'd you

miss?" outing. [laughter] coming up, the robin hood investors conference. we get a look from the jpmorgan guru. this is bloomberg. ♪

all right, it's time for a bloomberg exclusive. the s&p reclaiming an all-time high after its july record, is the smart money all in? are there still concerns on the horizon? quinn atby with vonnie the robin hood conference. -- vonnie:nk you,

thank you, joe. the s&p closing at an all-time high for today, but we have now surpassed where jpmorgan said we would end of the year. do we stay at these levels? wouldsaid that this happen in the first quarter. the publisher note from earlier was that it might have an earlier. our price target is still above. we are still positive on the market overall. we don't think we are going into recession. there is perhaps some upside from here. vonnie: you wrote a note recently saying that the window is open for value. how long is it open? open: we think it could be as long as the election is next year, but most likely in the first quarter of next year. we think that pmi's are likely to be bottoming and we are

seeing signs of that in asia. if you look at the historical context, we do all kinds of by looking at correlation between factors and the inflection point. it has been going for several weeks now, but there is a lot more to go. newie: every time we have a trade headline, how do you factor that into your models? it has been hard and frustrating for the last 18 months. it has been disruptive, starting april of last year, through to this year. but we do think we're making progress on trade. it we are definitely seeing less noise and we are hopeful that going into election year some of these issues will have progress made. -- vonnie: given that we

are near late cycle, wouldn't you anticipate risk off trades would do better than risk on? marko: so we think of this more as a cycle reset, if you remember, like around the european crisis. and we had it again around emerging markets in china. -- 2019 2020th, not the and 2020 is probably not the cycle reset. cutting the blanks -- cutting the banks to the global record. how will that impact your trades at all? the consensus is that the the fed will cut

rates. they are already cutting, injecting liquidity into the repo market. we think that should be positive for risky asset classes. vonnie: energy is a big part of your outlook at the moment. you seem to be far from that. you give us your key levels for oil and others? we certainly think that energy stocks are trading at low valuations, unloved not just from those investors but by quant, you know? the chance to your shorting value with high data, we think a is viable.et up if there is a turnaround in the looking at the trend following investors, it's short of oil with signals changing.

mid-to-late november, suddenly oil will be in an uptrend. we think that some of the equities will short positions on energy stocks. we think there could be quite a bit of an upside here. challenged,somewhat and we should see equities -- caroline: lichen palladium. -- like a lady him. -- like palladium. that has been the main driver in the cyclical underperformance. the strength of the dollar is related to the trade war. many of these things could actually start turning around. we already see the dollar being weak or. .- weaker

stocks and semi-conductors are one example. is notk that energy responding, but it should be the next segment to respond. obviously, september was a very difficult month. and then we had february of 2018. you are the fund positions now -- where are the fund positions now? spike inoking at the volatility positions, so many clients were on a high level of leverage with high levels of exposure to equities and short on market volatility. so, we were nowhere near their. , 50thge is about 30 percentile. similarly, people had the beginning of the selloff last year and the leverage was very

high. we think that the situation is a lot more safe now. there is certainly much lower in the community. to long equities, that is again exposure around 30% off. i don't think the risk is very high coming from these market segments. vonnie: thank you so much for your time today, marko kolanovic . guru, asu -- quants you say, joe. coming up, blockchain investors snapping up everything inside of them. president she looks to -- xi looks to increase investment in technology. we break it out -- break it all down. this is bloomberg. ♪

caroline: we are seeing also [indiscernible] not doing quite so well. beyond meat, up 6.4%. what more is a company to do then give you a 200 and 50% increase in sales forecasts? technicals are at play, the lockout coming to an end and people may be looking to get out of that ipl extravaganza. romaine: all right, it has been two years since the chinese president gather the communist party.

almost 1.4try of billion people. let's bring in shery ahn, the host of my favorite program on this network. what can we expect this time around? >> the expectation was that you focused on politics for, this time let's talk about the economy. but it seems that the expectations are centered against towards politics. back then he secured the blessing to become president for life, scrapping constitutional term limits. now we are hearing from state news saying that the party leaders would make greater efforts in sticking to an improving the system of socialism, with chinese characteristics, as well as strengthening the chinese system and capacity for government, code for centralizing more power. how does socialism with

chinese characteristics fit in to blockchain technology? shery: don't you love it? at one point we had china talking about cracking down on bitcoin mining because of excessive electricity use. now it is a national strategy. they had come out to say that had sent all- xi of those crypto related stocks -- u.s. in 2017. all that mattered was the name, right shery:? shery: -- right? shery: not even the name. these stocks are barely linked to the technology. developerthy app gained 30% in hong kong training.

encrypted user identification system. to some people that is perhaps code for a blockchain to knowledge he. basically, anything related to that is rising at the moment. and we are expecting more r&d warning to the president and the news. it doesn't necessarily go against the crackdown. they don't want access in those regards, but when it comes to --ional strategy if strategy, perhaps a more government focused approach. thank you, that was a great breakdown. for more on those stories, don't miss her and romaine bostick show, "daybreak australia." stay tuned to our coverage on blockchain's, yesterday. blockchains.

i will be watching data for pending home sales tomorrow. romaine: gm, reporting tomorrow. caroline: that's all for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪

i am taylor riggs san francisco. this is "bloomberg technology." coming up, click bates. we have complete analysis of search engine earnings including comments from the cfo. plus, jedi mind trick.