situation and how that could develop, i think the risk is that you will have to , 22%am looking at volume to 25% above the average. to havee headlines seem sparked activity. joe: it is where it was 8:00 him yesterday. the volumes have been huge, very big block trades going through, altering the shape of the curve. caroline: interesting. into the action.

>> i'm watching a big apple supplier. 16%, now the highest since june 2017. supplier,ig apple benefiting from strong demand, the iphone as well. all this makes you want to look at the supply chain analysis. 81 percent of revenue comes from apple, up 5% from a year ago. is saying that apple pods givingving -- the company a big boost. well.g ford as

another good boost for suppliers. stock market did finish lower on the back of trade headlines and weaker than expected economic data, but we are still close to an all-time high. there is evidence that investors in etf's are getting nervous. from two of the largest etf's, $8 billion leaving. isn'tmbined value really that large compared to other voo is stickier money. for thee worst month fund on record. where as you would see this movement in spy as a vehicle for

investing, not so much in voo. in spite of stocks at all-time highs, some etf investors are wanting to get out and reallocate. copper, downng at 2% today, following other base metals. china's manufacturing sector dropped to the lowest since february, underscoring weak demand. aboutreases concerns china's trade tensions with the united states. there are concerns they may linger longer. copper has fallen by 0.6% this as minecently rising workers halted in support of protests in the area.

the outlook is bleak on metals demand because of the u.s.-china trade war. caroline: thank you. some interesting that companies are still trying to build bridges between the u.s. and china. 20.5% stake in a a chinese drug developer. the deal will commercialize experimental cancer drugs in china. $2.7 billiony worth of shares. amgen off by 1% in after-hours trading. >> we also have results out of dropping after third-quarter revenue missed estimates. $279.7 million, missing the mark, north of $280 million.

loss of $.23ss, a per share. monthly active users, 322 million, better than expected. the top line does not match what analysts were looking for. getting smashed. off 20%. a formerh us is chief and also a derivative strategist. tumbling.interest volatility or sectorsdo you see in like technology versus other parts of the market? wethat is the question, will see the value sectors outperform. is we expected global

ip momentum to trough in q4. upside, weooking for .ike emerging markets if you're looking for exposure to cyclical pickup, that is where it is cheaper right now. trough now, we have but there are sectors that will continue to do well. are describing the optimism you see in the s&p 500. when you look at international aspects to the market or cyclic ly expose, you don't see that euphoria?i fallenied volatility has to lower levels as a percentile. bullishlso seeing more

positioning in the emerging-market regions. aboutne: you were talking the volumes within treasuries, elevated in stocks. where do expect the most excitement in asset classes as we look and digest the u.s. data? question. a good i would say the equity market. becausebe really muddy of the general motors uaw situation. algorithms twitch if the numbers are way off, but the equity markets will lead the way. in the treasury market are a reversing of the selloff in the treasuries, getting back into the market, either cutting those treasury

positions or going along at the same time. the dollar situation has been steady. volatility, bump in it will be equities. >> looking that everything that has happened, will the jobs report tomorrow matter? >> absolutely. the rebound is predicated on the thought we are not headed towards recession, growth is see the jobs if we never disappoint, ism disappoint, that will have reverberations across asset biases. we have seen the first significant decline in interest rate volatility this week, all before the fed. so to me it is this rising recession fear, so if we get data that is worse than expected, we will see

followthrough on an asset class basis. thatit sounded yesterday jerome powell raised the bar for the next hike. it will be a long time before good news is bad news, good wage numbers, good in numbers, a good ism theory without worrying? conference, he talked about the bar for raising rates is very high. it was a dovish statement, a dovish press conference, precisely for the point you made. caroline: anyone talking about impeachment, brexit? >> i have a couple of algorithm traders who will ask me if this will trigger movement in asset classes.

we are just not there yet. months to go, maybe even another year. >> soon, this is true. >> thank you so much. that does it for the closing bell. "what'd you miss?" is up next. we will be looking at pinterest's latest results. this is bloomberg. ♪

♪ i am caroline hyde.

joe: i am joe weisenthal. caroline: here is a snapshot. we are down on the s&p 500. joe: "what'd you miss?" caroline: chinese trade officials uncertain despite nearing a phase i agreement. october 31, the u.k. remains. pound traders look ahead to snap elections. inside facebook, i spoke with sheryl sandberg on the impressive user growth amid regulatory scrutiny. china casting some doubt. officials are skeptical about the chance of reaching a long-term trade deal with president trump, even as the u.s. and china move closer to signing the phase i agreement,

sending stocks down by the most in three weeks. we are joined by one of the reporters working on that story, joining us from washington. thank you for joining us. how much of a surprise is this to you, this ongoing doubt. how much does this deviate from some of the optimism you here in washington, d.c. about phase one leading to something more complete next year? >> there has been a lot of skepticism in dc and outside the white house whether the trump administration can take the phase i deal and turn it into something bigger and more comprehensive. in thisset out to do story is as the chinese where they were. we spent a number of weeks hitting the phones commit meeting with chinese officials, with people who had met with

chinese officials and had gone through beijing recently. the common thread that emerges is the chinese very clearly don't see a path to a more comprehensive deal once they get narrow phase i deal. that may fit with the consensus view of the skeptics at the nks, but the fact we are hearing it from the chinese is the difference. idea and china, president she asian spring specifically, not to lose faith, jinping- president xi specifically, not to lose faith. separate things that seem to be on the chinese mind. these requests from

the trump administration early fundamental root and branch reforms to the chinese economic model. the chinese played along with that for a while, probably never going to go all the way there, but willing to talk about subsidies, things they are looking at themselves as part of their economic reforms. they were talking about these things leading up to may and the collapse of talks, but something happened in may whereby they seemed to lose a lot of trust in the trump administration, and a lot of has to do with the fact that the trump administration was not offering the carrot, the carrot was removing all these tariffs. he was not willing to take them away. the second thing is, over the last six months, the chinese have built this picture that

trump is an impetuous walks awayr, that he from deals he has made, and they are not sure they can trust him. people cite the example of nafta, usmca, the new then a few months later, threatening tariffs over immigration issues and so on. chinais a broad sense in it seems that they just don't have the trust in the u.s. side to close this deal. hopelet's set aside the for a big deal and talk about the phase i. that is still not signed yet. sure thing cana we count on this. b, there are another set of tariffs currently scheduled to

go into place. what if the prospects for that to be delayed or modified again? >> we should expect the two leaders to come together at some point in the coming weeks. it could drag it into december. narrow deal, ay deal of convenience for both sides. deal, a deal of convenience for both sides. it pauses the escalation on the u.s. side when it comes to tariffs, and on the chinese side, they agreed to resume agricultural and commodity beforees at a level seen the trade war, to re-normalize relations. then there are ip commitments they are largely doing already and they had nailed down and were part of the agreement. they were not that contentious in the may agreement. it is a deal easy to get done. there are always devil in the

details, and we should see some posturing that made drake out of it a bit, but the phase i deal is likely to happen. it may be as good as it gets. great to have your analysis. let's get you up to speed with pinterest, following her, down almost 18%. the seeming cause is revenue missed. that is not a massive miss. seemingly, the market does not like it. this is bloomberg. ♪ g. ♪

joined fore are now further reaction when it comes to analysis on pinterest numbers. tom, fascinating to see the earnings at the moment, why on earth falling so hard? what did you take away from the numbers? we seem to have a technical problem. terribly sorry. now let's get you up to speed with the business flash headlines. the deal will create one of the largest automakers. the two boards agreed to work towards a binding agreement. shareholders of each company .ill on 50%

hundreds of local leaders meet in detroit to review a tentative contract with ford. reache reached an agreement last night. ford promised to invest and retain 8500 jobs. wayfarer near its lows level of the year. it forecasted disappointing outlook for the holiday season. is your business flash update. to another story catching my attention, the takel apocalypse has left a lot of stores across the u.s., forcing landlords to find creative and spooky ways of filling their space, so

apparently people are using them for recreational spaces? what is the deal exactly? now they can be used for haunted houses and things like that. apparently a cost you $27 ticket in this one. joe: at least it is something. what about gigantic roller rinks? that would be fine. bottom-line is they are desperate to use this space.

let's check the latest with pinterest. surprise, lot of people on twitter. the numbers are not objectively horrendous. almoste: revenue was $280 million. this is a talking about expanding, being in new markets, monetizing more markets. they have added a significant amount of users. most of them are outside the u.s., but most of the revenue comes from inside the u.s., so how do you monetize those? like a q4 2019 reaction. q4 2018, this in q1 --

it would have been a different is sobut the market punishing that fairly is small companies not nailing it on the financials. lyft felt today. caroline: we would begin much more in a moment. this is bloomberg. ♪

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>> let's get the first word. china and the u.s. close to signing the first phase of a trade deal. it also may be the last. chinese officials doubt a long-term agreement is possible with president trump. they are concerned about his impulsive nature and said they will not budge on the toughest issues. begin in the nation's third-largest cool district. chicago's longest teacher strike has come to an end. ther lori lightfoot made announcement after meeting with the president of the teachers

union. ae two sides agreed on five-year contract that includes a 16% raise in staffing to combat overcrowding. says elizabeth warren is ignoring the charitable contributions made by the wealthiest entrepreneurs. in an open letter to the candidate, cooperman accuses her of vilifying the rich. elizabeth warren singled cooperman out, saying what he believed in progressive taxation that he has fundamental disagreements with her approach. the treasury department plans on weakening regulations to stop corporate tax avoidance, to prevent u.s. companies from moving profits offshore. the treasury says the regulations are no longer necessary because of the tax law enacted under president trump. the had been implemented in

final months of the obama administration. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over than 120 countries. caroline: thank you. longer be theno deadline for brexit, but there is still plenty of fright. these are the scariest charts for investors. countries have been ramping up investment spending, but u.k. firms have been paralyzed. now u.k. business investment trails pierced by 10%. the headline index of real estate prices remains negative. the number of homes put up for sale the lowest since june 2016, complete stagnation. the scariest of them all, the ghost of deals past. reach for other

deals. to more decades of trying hatch a deal with the eu for many is a scary story. joe: for more insight in the u.k., we are joined by a professor of political science at wellesley college. thank you for joining us. we are beginning this election. it feels like everyone is getting deja vu from theresa may's election. despite the polls, could there be a different outcome, that the gamble proves wrong and blows up the entire plan? >> absolutely. boris johnson is going into this with optimism. the polls have the conservative party ahead, but there are so many unknowns.

in youth voter registration that picked up after the election is announced. we -- was announced. we see a lot of campaigning party, also by the small parties, and if they can pull support away from the conservative and labour party, this could be anybody's game. caroline: the fx market is starting to get cautious about a chance we could see a no deal brexit, if the brexit party in particular did well. do you think that is in any way the case thats it anti-brexit parties would be due better than expected? >> i think there is a chance it will be the remain and no breaks at parties. where the brexit party is a danger is it could pull away support from the conservatives.

nigel faraj is making the case that the deal porsche johnson brought back from the eu is still no good. away can pull enough votes , that makes these other smaller parties more competitive. potential for these smaller parties to be spoilers, combined with the fact that people might engage in tactical voting to get their desired outcome, does that mean polling will be especially useless in this election? >> that is a really good question. useless.ot say it is it will show us important trends , but once we see the smaller parties move and strike a with each other, and remember what we have going on here is not about a straight election, but boris johnson being able to get enough conservative seats to form a majority government without

being dependent on the smaller parties they have been dependent on the last couple of years, so ist the polls will tell us one thing, but we will be waiting until election day on december 12. it is just the exhaustion of the whole process, even those who are pro-remain just one to deal done, they would rather we move forward. do you get a sense of that, or the fact we are going towards a general election going to stir up all the initial dividing lines we had to begin with and make the polarization as it was before? absolutelyink you're right to pick up on the sense of resignation. the deal that boris johnson brought back with some exceptions really is not that much different from the deal theresa may brought back, and

yet there is already support. the labour party is entering into the election with the same resignation as well, but that being said, boris johnson, jeremy corbyn, they tend to be polarizing campaigners, so this is were not just be about brexit , they are putting the national health service in the table, the scottish party will commit with scotland's independence comes of this will have unanticipated polarizing effect. joe: thank you so much for your insight. , theng back to pinterest social media company getting clobbered after a slight miss on million.f $279

they beat on monthly active users. narrower, but this where there was a lot of interest. people want to see solid financials across the board. pinterest did not deliver it, and the stock is getting punished. caroline: coming up, facebook defending its political ads policy. my exclusive interview with sheryl sandberg. this is bloomberg. ♪ this is bloomberg. ♪

caroline: pinterest results. 18% as revenue barely misses. let's get the inside track. what is everyone so worried

about in this set of numbers? >> if you look back at the tryings preview, we were to determine whether it was a trick or a tree. it is clearly a trick. the big challenge for pinterest is their audience 70% international, but monetization is 10%. saw the rate of growth in yes, ational sales, and small miss is not significant, but the deceleration in international is why you are seeing pressure on the stock. joe: to use the selloff does not look out of line with results? >> i think you pointed out earlier that it was a tough day for mid-cap internet stocks, lyft and others. to have that kind of performance on a day like today results in a

material downturn after hours. the call will be starting soon for there is to vote the company to explain what is going on. caroline: they are adding users in less lucrative international markets, but couldn't they make markets more lucrative? better was one of the performing, newly minted ipos in a very challenging class. more recently the stock held up well followed by the lockup of exploration. onneed to see what's going with international monetization. a rough market for all kinds of recently public companies still in a growth phase, not showing profit, and that includes all kinds of

business models, some capital-intensive, some capital light. , iscompanies like pinterest the core operation one that at some point will deliver cash to shareholders, even if they are not quite there yet? >> the answer is absolutely yes. is not generating a lot of edida, but over time they would generate a lot of free cash flow. cover a lot of grubhub -- do you think the market will show such

ordain if you underperform, the aftereffects will become less painful and people punished to a lesser degree? to find the word that combines tariffs and recession. you are seeing a lot of investor anxiety on tariffs. the u.s. and china are still trying to forge a long-term agreement. when you see all the cuts by the federal reserve, it is on concerns that are recession. there is a lot of anxiety in the market right now. until you see some final word on both, then that could be bloodletting for the stocks. glad to haveare you. fantastic to get the inside track. ,ticking with social media

facebook shares into the day higher after reporting sales that beat estimates. to notk's decision block political ads, i asked sheryl sandberg to explain. not doing it because the money. this is less than 1% of revenue. but we believe in free expression, political speech, and ads can be part of that. we are focused on transparency. library, and we .nnounced an ad tracker that kind of transparency we think is really important to in their understanding. one of the things we talked about just now is the size of the investments we are making

for 2020, working with election commissions, hiring engineers, really doing what we can to make sure people are kept safe. caroline: when twitter goes the opposite direction, does that mean you question your own decision? >> market said we thought about this for years, and certainly we have been thinking about it now. we fundamentally believe political ads are a part of the dialogue and can be important, but we also believe free expression across the board is something we stand for as a company, and people all over the world are using that, certainly politicians, but people, and that is how you see growth continuing. toughne: it will be a year in terms of regulatory scrutiny.

do you worry about parts of the business model under attack? how do you see ural in this -- this?ole in privacy and ads are not at odds. we can do both. advertisers,lion 100 40 million businesses using our services you want to show an ad to women in their 50's who live in california, we take the ad and show it to that person. we give you back aggregated results. we can do very good ads targeting that makes us good for people and help advertisers reach the right person without violating privacy, and that is something we must do in much better job of explaining. caroline: you talk about the focus on the family of apps from a facebook, whatsapp.

do you think this will help ensuring you remain one whole business? >> that is not where this was coming from. what we really want to do is use, and infrastructure to build our services, but making sure the services provide their own unique experiences. one of the things that happened as instagram was growing is that the growth is explained by their product leadership, but also what facebook brought in terms of infrastructure and advertising. we want to continue to support those mobile apps to make sure they have with the need to deserve people throughout the world. caroline: through commerce as well. i know business is hugely important to you, not just the individual. how much do you think eventually, especially on the

instagram front? >> people are excited about commerce. we are a great platform for people to find things, services they want, products we want. we continue to see our role as helping people to connect, to not just sell, but message. one of the cool things on the platform is how many businesses are connecting two directly. it is pretty cool for a person to have the opportunity to message a business directly. project: is the libra an important part still? >> we are committed to it. we will not roll this out until we have regulatory approval. most of the efforts really have

nothing to do with libra. our commerce efforts by things on our in services to help you buy it on our site as a service. joe: that was sheryl sandberg speaking to caroline hyde. falls intohong kong its first recession in the decade. how protests in the trade war could push the economy over the edge. this is bloomberg. ♪

head of theasia hong kong plunging into a recession, exceeding the worst estimates of damage from five months of protests. let's bring in shery ahn for the latest. numbersget the official

, not one economist addicted how bad the number would be. 3.2%.ontraction of we have not seen a recession hong kong sense 2009, which was the aftermath of the global financial crisis. we have seen the hong kong monetary authority cut the rate to 2% last night, in line with the fed rate cut. to help theexpected hong kong economy because banks have their own funding considerations, so really no relief for the hong kong government or economy. economistsow long do think it will last? >> it depends on the ongoing protests going on for five months. because of the protests, the was 5.5 million

chinese people coming into hong kong. in january, that is less than half. chart showinggtv numbers. we had a similar situation in 2003. -- mainland chinese chinese tourists have been coming back, but this time is a different issue, right? joe: how much are the trade tensions contributing to this? it seems like the protests are the main driver. >> it does not help that exports are not doing better because of the trade tensions. dampening the demand across asia. now we have this new bloomberg scoop saying perhaps the chinese have more doubt over what happened after stage one.

nothing had changed in the bargaining positions of both countries, including the fact china once the removal of these tariffs. nts the removal of these tariffs. we just heard from the communist party plenum, where they talked about the trade tensions and worry around that. they talked about hong kong, saying they must govern hong "strictly."au president xi jinping consolidating his power. find ae: let's try to bright spot. >> there is still a stimulus package that will hopefully help the travel and transport sectors, not so much the broader sectors. real estate is still being supported in hong kong, which is

good news and bad news. people are not happy because home prices are so high and still being supported. joe: you mentioned hong kong imports u.s. monetary policy by keeping tight to the dollar. that is always a popular trade. did anyone think this time could be different? >> the hong kong monetary authority has said they have enough reserves that have increased from the beginning of the year to defend that peg. caroline: we thank you. for more, don't miss daybreak australia. , don't miss this. christine lagarde as head of the ecb. joe: i will be watching the u.s. jobs report for october with economists expecting an impact

from the recent strikes at general motors. caroline: that is all for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪

taylor: i'm taylor riggs in san francisco. this is "bloomberg technology." coming up in the next hour, twitter upstages facebook. twitter will then all political sites freebook speech. you can't mention facebook without the cambridge analytica scandal of 2018. we we