american trade as well. you might think you have a deal and that 6:00 p.m. on a random tuesday, you get a tweet from the president and it is game on again. cover intellectual property, which is really the key issue to resolve this more permanently. i think alex is right. even if there is a cover intelll property, which is really detene between the u.s. and china, the risk is certainly that we pivot ,o european autos, for example as the locus of the next issue. locus of the next issue. i think the white house feels -- they are stringing the market along a little bit as long as markets keep rallying, when he drip feeds this news, is going to keep going. caroline: s&p 500. scarlet: the russell 2000 i 1.7%, blistering performance. for theeen a laggard

past couple of months. joe: very impressive. good into this weekend. let's dive deeper with our market reporter. get us started. >> i am looking at this giant rally in biotech stocks. etf jumping,otech the second-biggest gain among etf's bigger than five dollars in assets. it was led by a chinese company after thed 37% company was said to take 37%. also rallying about 2%. aminogen jumping 28% after aminogen jumping 28% after boosting its revenue forecast for the full year. biotech is one of those sectors that is not broken out to new

record territory. 10%ibp etf still down about from last year and 70% from its high in 2015. it is an interesting sector to keep an eye on if and when the speculative growth stocks become darlings of the market. luke: i am looking at one of the last few things that bears are hanging their hats on. the failure to really confirm the recent highs in stocks. if you look at high-yield spreads, investment-grade spreads, even yields back to energy, we are not making new tape even as stocks make new highs. on thursday, there was a 37 basis point widening the chunk debts to push the index level to its highest bread since january. if you look underneath the curtain a little bit, you will see that it has been very concentrated. california resources, bonds are

getting absolutely smashed. the yield approached nearly 60%. what we have had today, we have had that company release yesterday its results a few days early after the close. we are seeing a big retracement that will be reflected in the ccc yield once it updates at the end of the day. talking about car rental company avis budget group. it is down but they did trim may decline. the company missed its estimates due to higher tax rates. this made analysts and investors a little bit skeptical about the company's ability to maintain profit growth. another area of concern, revenue per day, which fell 2% in its american business. avis budget group is up for the year but it took a more than 30%

drop in august. the ceo announced in a that he was leaving the company -- in may that he was leaving the company. he said they would focus on profitability into next year. scarlet: still with us is alex dryden from jp morgan and bloomberg news macro strategist cameron crise. alex, you were telling us that investors want to see the glasses half full, yet the resolution of -- of phase one of the u.s. china trade deal just brings up more questions between the u.s. and europe. looking into 2020, we work get geting investors not to carried away. in fixed income, focus on quality, making sure that we are not taking risks in the market.

high yields have done ok. definitely taking a little bit of profit off the table. joe: obviously, a very good week for stocks. also a good week for bonds. are we back to this regime where you can buy both and they are both working? back ined put that play? cameron: that is kind of the million dollar question. the market, for better or for worse, what they heard from jerome powell is, i am never hiking again. that is not what he said, but we all hear what we want to hear. they are going to run with it until the market tells them or market tells them or

shows them that is not the case. joe: the line came in response to the question that the bar for the next hike was sustained inflation. it wasn't part of the opening script. do you think it is possible that was an off script moment? one of the most frustrating things about the advent of these prescott'tis, anytime -- these press conferences, anytime the fed does something, now that they are cutting, when are you going to hike? he was never going to say 45 minutes after he just cut rates, here is how i am going to hike. that would offset what he has just done. i think the market overreacted. time, perhapss of we will see the move lower in yields over the next few days. for now, as long as the market -- market believes this, it is hard to see a real visceral selloff. today,e: on bloomberg

someone was saying, we have inflation near our objective. are you worried about inflationary pressures company? inflation'm not sure is high on my list of risks in 2020. as we are doing the annual outlooks, people talk about inflation. if we were to start seeing some sustained inflation, your asset allocation decision across much of the portfolios begin to change. inflationso much if were to come through, it is about the tolerance of inflation. many fed officials have been saying have been running inflation below the 2% target for a long time. if that is the case, we could run with some sustained inflation through 2020 and 2021 if the fed scarlet: felt the need to move.

europe -- if the fed felt the need to move. scarlet: europe would love to have our problems. thestine lagarde is now head of the ecb. of certainly has a lot challenges. but there seems to be a lot of reimism built in to her new ign. she has the skill set to convince politicians of the need to bring in some new fiscal stimulus. this was the message that her predecessor, mario draghi, has beaten on about for years. it is simply because monetary policy is tapped out. you have negative interest rate policies, you have a u-turn on asset purchase program in a region where you already own around 30% of the euro zone government debt. i would like to see some fiscal policy.

strong fiscal headwind. this view that monetary policy is tapped out, particularly in laces where the rates are already zero, have people been too quick to dismiss the potential power of fed cuts here in the u.s.? it does seem like some of the rate sensitive areas of the market have had a good year, especially housing. cameron: certainly and financial assets. monetary policy can influence financial assets quite forcefully. i think the impact of the real economy is much more muted. housing stocks have been great. you look at the contribution of housing gdp growth, it has not improved that much. people might be buying a few more houses but the larger issue is not going to be resolved because mortgage rates have gone down 70 54 100 basis points.

75 100 basis points. caroline: give us a take next week. we have earnings still coming, we have a bit of data. what needs to happen to getwhata leg higher? alex: i will be focused on any material turnaround in economic data with a real focus on the euro zone. if you start to see that global laggard in the form of europe start to pick up, i think that provides support for earnings and that can lift markets as we move into the holiday season. scarlet: not all data is equal. alex: i will be looking closely at the pmi numbers and area closely at the survey with a focus on germany. germany needs to stabilize for the european lock -- european

bloc to do better. scarlet: that does it for "the closing bell." next'd you miss?" is up where we will be looking at the street battles. -- the streaming battles. this is bloomberg. ♪

caroline: we are live from new york, i am caroline hyde. joe: i am joe weisenthal. romaine bostick is out. stocks closed at

a near record high. a near record high. the jobs numbers come in at her than expected for october. a battle of the streaming services is in full swing. apple plus goes live at last. and, pelosi power. the u.s. speaker of the house tells bloomberg that impeachment hearings are set to kick off beginning this month. more from the speaker, coming up. federal reserve vice chairman richard claret exclusively with bloomberg earlier today to discuss his growth outlook for the u.s. economy following an unexpectedly strong jobs report. growth,ve ongoing inflation near our objective. growth, we have characterized it as moderate right now. the global economy has been slowing, and that is a factor. but the u.s. economy is very resilient and these are good

numbers, the gdp and labor market numbers. economic for an outlook is sarah house, director and senior economist at wells fargo security. so great to have you. as you scan the data, with the jobs report, is it pretty safe to say,as you scan the data, wit that a recession is not imminent? sarah: i do agree we are looking at still pretty solid growth over the next several quarters, especially in light of the backdrop of pressures overseas. while the industrial sector remains under pressure, we are not seeing that spillover into the broader economy. not seeing aare spillover to wages or wage pressure. what does it say for you in terms of household spending.

some are worried about the consumer going forward on the back of these numbers. sarah: i think the consumer is in ok shape but we are likely to see a downshift. the trends are still downshifting. as you point out, we really have not seen much of a strengthening or acceleration in terms of average hourly earnings. as you look forward, you don't look -- you don't see a lot of businesses looking to expand compensation right now. that does portend only moderate wage growth which points to somewhat slower household income growth. obviously, the data from the u.s. to some extent has been an v of the world, which does not say a lot given the weakness we are seeing abroad. are you confident that, perhaps with a little detente on trade and some other factors abroad, that the global picture is a little less risky than it arguably was earlier this year?

sarah: i think we are seeing some tentative signs of things stabilizing or at least not getting worse. at least that impulse in terms of the manufacturing side of things is not weakening any further. given that, that is really where the downdraft has been, i think that does portend well for the theder broader outlook in the u.s. caroline: chairman powell, social orientation, the reason he has wanted to keep the lights on his to make sure there is greater inclusion rate the participation rate. how much do you think the fed might be forced to do more going forward if they want to see the participation rate and greater growth within the overall hiring strategy? sarah: i think they have been doing what they can in terms of

lowering the fed funds rate again. in terms of hiring, keeping strong in those areas. we have really seen the participation rate continue to climb higher. that has been an upside surprise given some of these structural forces that a lot of economists thought were holding back participation. but we are also seeing the expansion really spreading terms of wage growth. even though overall it has been stuck around 3%, it is growing at about 4.5% in some industries. you are seeing the gains spread more evenly of late. joe: what about manufacturing? the way people talk about it is like, will this spread? is that promise sound or is it just, it is going to do its own thing and the services sector

can hold up regardless of how weak manufacturing is? sarah: there is the risk that it only in not manufacturing but also the onlyn manufacturing but also the goods sector. the environment is uncertain, some might be holding back on that. if you look at where that goods weakness might spread into, it is areas like professional and business services that are maybe doing consulting or legal work for some of these goods producing industries. there is some risk it would spillover but he would have to see a market contraction and we are just not there right now. caroline: sarah house, always house, always great to get your perspective. a reminder that you can catch all of our great interviews on bloomberg with the function tv

if you are lucky enough to own a terminal. -- wee smoking to the will be smooth -- we will be the chief equity strategist. we may need to see growth globally if we are to support some of the earnings growth for 2020. this is bloomberg. ♪ 0. this is bloomberg. ♪

stocks jumping to record highs after that unexpectedly strong jobs report. groupg us more, capital chief strategist peter. youas been a while since have been on the show but in the past, you have been cautious. yet, here we are at record highs. market?ust respect the

you always have to respect the scoreboard. but i am also glad that i am a strategist so i can come here after the close and explain what happened during the day. the number is interesting because employment numbers have been trending downward. it is interesting to see the revisions, massive revisions. you tend not to see that. so, let's see what happens next month. we had the ism number that was below 50. we are managing very small expectations, just like earnings. earnings growth has declined but it has beat expectations. a, i think giving everybody participation trophy in the market has been fantastic. the scoreboard says, let's by apple, which is mind-boggling to

me. it is a trillion-plus stock and its market cap goes up more than the last 150 market cap value. how long can that continue? caroline: can it continue as long as the trade music continues getting better? peter: kudlow was on today and says the tariffs are not off the table yet. the chinese say, well we are making progress. i think the proof is in the pudding. obviously, seasonally, it is such a great time of year. as any first year technical analyst will tell you, when every single industry is making new highs, you have to respect that. joe: it is great to come on and say you have to respect new highs, but at the same time you are pointing out that are not great in the economy. highses one respect new

while also being mindful of some of the data and news you are identifying. peter: as a strategist, after it goes down, you had come back on. the reality becomes what any successful manager, you have to have risk management. if you are long, you have to say, wait a second, what is the risk reward here? beanstalk does not grow to the sky. we have seen that previously. you have to give the benefit of the doubt to the upside, but you should probably tighten up your risk parameters because there are still a lot of things that can go wrong. caroline: someone from credit suisse yesterday was talking about how we seem to be getting to extreme levels. extremely bullish and that means

that we sort of can't go higher. or getting extremely bearish and that means there is some sort of bottom on the market. how much are the technicals at play here? how much are we likely to see the s&p 500 able to push higher if we have some sort of unbridled optimism? peter: our job is to try not to whereat on the ship everybody runs to one side, a dozen go there, it doesn't go up, and they all run to the other side. you have to put the weight of the evidence on the data. we think in the short run that the technicals are far more important than fundamentals because fundamentals change with a lag and respect all the information you are talking about. joe: what are you looking at either index or component level that was a this is something to watch for a break in either direction? the transports

have diverged. the stocks that have kept us out of trouble, fisa, mastercard, they are strong on their earnings. they did not make new highs. we are going to look you want to sell the stuff that is going down, you want to be long the stuff that is going up. don't try to pick a bottom. if the stocks are going down in this environment and it turns around, they are likely to accelerate to the downside. if you think you are negative, you take a stock like visa or mastercard, you have risk management levels in which that is the most important here. now, is the economy slowing? that is what it looks like. but again, the market can stay irrational far longer than i can stay solvent. discipline is the key. caroline: great to have you with us. house, speaker of the

nancy pelosi weighs in on the impeachment inquiry and protecting the constitution. this is bloomberg. ♪ mberg. ♪

>> bloomberg's first word news. china's ministry of commerce the country has achieved a consensus in principle with the united states on trade. there was a phone call between he chinese vice premiere and robert lighthizer and secretary treasury. and they are towards finalizing the phase one trade accord between the world's two largest economies. china has won the permission to impose $3.5 billion in sanctions against the united states. the damages awarded are the

third largest in w.t.o. history. it pre-dates the current trade war between the two countries. did not meet a deadline to modify its antidumping regime and set back for the way america restriggets cheap china imports. erdogan held talks with united states secretary general. the discussions were likely to have been dominated by turkey's offensive in northeast syria. earl on this trip, he addressed a mediation conference. chicago teachers and students affected by an 11-day strike returned to classrooms this morning. it was chicago's longest walkout by teachers since 1987. attentative agreement that ended the walkout is expected to shape education for the next five

years include class size limits and additional social workers nurses and support for homeless students. both sides secured key victories and fell short on other priorities. >> a strike doesn't just change a contract. it changes the people who participate in a strike. we feel a little bit of what it means to have our voice count. >> the teachers' union members must vote. they haven't discussed a time line for that process yet. global news 24 hours on day and on twitter powered by 2700 powered by journalists and analysts in over 120 countries. caroline: now speaker of the house nancy pelosi said she expects to begin public hearings this month and there is no deadline to finish the

investigation. she discussed the proceeding. >> we have decided that we are going to defend and support the constitution of the united states. for a long time i resisted weighing the equities of whether this is divisive for the country, but what the president did with the president of ukraine removed all doubt that we had to act upon that. and this is not about his personality, his policies, that's to the election. this is about defending our democracy, which the president has said article 2 says i can do whatever i want. it doesn't. article 2 makes him a monarch if he interprets it that way. that's not what our founders. a republic, benjamin franklin said, if we can keep it. we think the times have found

us. thomas paine said, the times have found us to do all that our founders did. they wrote a constitution and thank god they made it amendable so we can expand freedom over time and continue to do so. but what the president has done to say the three separate and co-equal branches of government. article 2, it's about me, i can do that. >> the president's dealings with the president of ukraine that we discovered in part of that modified transcript, can you limit the inquiry going forward to that subject or will it broaden into all sorts of other questions? >> that will be up to the committees of jurisdiction. not to trivialize what the president did. but in that call he undermined our national security by interpreting what congress intended in a bipartisan way to send military aid to ukraine and

who doesn't like that? putin. what he did in syria, who likes that? putin. giving him a stronger toehold in the middle east. what he has said about the nato and our commitment to nato, who benefits from that? putin. they are not all related to the constitution. but the call, the phone call did. i have kind of tried to weigh the equities in all of this, trying to avoid dividing our country. and also to -- we have no choice. we took an oath to protect and defend our democracy and that is what he has made an assault on. if the republicans have a higher loyalty to the president than they do to their oath of office, that's their problem. the american people -- just imagine, suppose a democratic

president emerged, do you think those same people would want that president to say article 2 says i can do whatever i want? i don't think they want that. he rule of law is democracy. rule of a person is a monarchy. we rejected that at the beginning of our country. >> you served with mike pence when he was in the congress. what would he be like as a president? >> i have no idea. we haven't made a decision to impeach. this is what an inquiry. proceedings, a the logical extreme would be removal of the president >> i don't think it is extreme if he violated the constitution. our responsibility is to make a judgment about impeachment and that would go to the senate and they have to decide whether they are honoring their oath of office to protect our democracy.

this is what changed everything for me, because, you know -- people wanted me to impeach president bush for the war in iraq. without the election, it's not about the impeachment. i thought it was wrong to impeach clinton. i don't like impeachment. it divides us. whatever you do, remember that we are one. and i think that is important. but what we are talking about now is taking us into a whole other class of objection to what the president has done and there may be other -- there were 11 obstruction of justice provisions in the mueller report, perhaps some of them will be part of it. that will be part of the inquiry to see where we go. joe: that was u.s. speaker of the house nancy pelosi speaking

earlier. now, coming up, apple joining the streaming wars. apple's launching today marking a critical moment for the company. what are they doing to keep up with the growing set of rivals. this is bloomberg. ♪

caroline: stories that are trending across the bloomberg universe. striking back with an stiesing campaign and employees clear up his image. one full-paged ad is head lined. you heard their stories, now hear ours. and four billion in

inappropriate remarks. the catchy tune and has become so lucrative, the family behind sitting on a multi-million dollar future and the kim family the rth $125 million and billboard top 100 charts. and she plans to redirect her spending to the government and warren says medicare for all ill cost $20.5 trillion. joe: we have a headline moving now that the saudi crown prince is giving a green light. i'm being completely honest and

realize this was a s was a crucial step in the process. there were a lot of false starts. this is a key point in moving it forward. caroline: see if it comes to the market. let's talk to another company, apple. the company is launching apple tv original video streaming service today to match shows. nd a big library of content. great to have you with us. hardly any content, a lot of which has been panned. this really about the streaming wars for apple or something much bigger at play? >> it is essentially free and if you buy an apple device, it's free for the first year and have to make it free because it's not

the content library. the real play is apple going after what you can call an all entertainment package, watch it, listen, play it or read it, apple wants one subscription that encompasses. tv, apple news and apple games. that is creating a whole new playing field and disney will step on to and netflix that probably will step on it. joe: how many winners can there be in this game or is there going to be a sort of winner take all or winner take most environment? >> right now, common thinking, average household was subscriptions. everyone is forgetting, the score right now is 151 million subscribers to zero. disney doesn't have a single subscriber and neither does apple. this is a seven-day free trial.

netflix has number one spot. disney is going to be number two and apple is trying to create a new playing field and you need omething for live programming. basically, hulu, skinny bundle. everyone out of that is basically competing for scraps that are left over. caroline: are they getting in on gaming? >> they announced their first podcast today. they have the entertainment hours when you are at home. but outside of new york city, people drive to work. they announced the first podcast. it occurred on november 1. form of content m of content you can get from netflix, wirs fun today. few years ago they did original programming and spend billions on it. joe: interesting.

and spot file's earnings, they talked about podcasts because it is hard to do original music and not a thing that people want. but in the podcast realm. do you think apple original podcast and everyone else? >> apple distributes pod content and distribute games. tv is where they are having to do their own programming. so they had to lay out billions of dollars. you are going to see this market move towards, if you can't cover all forms of entertainment, it has to be acquired. caroline: we have seen google started gaming offering. it is organic. do you think there would be a lot of consolidation. what companies will be picked off? >> i think the gaming sector overnight is becoming more valuable. when you bring those, there will

be a lot of acquisitions in the gaming industry and buildup gaming as another part of their overall offering. if you are an investor in a gaming company, you will see companies become more available. podcasts, it's like the music industry. it's not clear. joe: just going back to original shows. the earlier reviews on some of the apple shows, not that great. a lot of people didn't think netflix original shows were not that great. and this is the golden age of tv, a lot of it is not that great. does it need to be great or graze viewing, watch a few episodes? >> just the sheer amount of money they spent producing these shows. netflix fills the hours when you

are not watching the great shows. apple is not trying to fill those hours. they have hired the biggest stars and best directors and there appears coming up short at the gate. they are in it for the long haul and all-entertainment bundle. joe: really great insights. the sticking with streaming, netflix testing a feature that will allow you to watch movies and shows at 1.5 times normal speed. this gives you more time to take ice baths and drink oil in your coffee, read books. caroline: i can't wait to make myself more of a better specimen. joe: how does it benefit you? optimize and optimize and maker

leisure more efficiently. caroline: this is why on earth would you want to speed it up. my husband speeds up podcasts. it's like a different mentality. joe: it's a little depressing and feel like we need to optimize our lesh you are time but seems like that's the way it's going. caroline: who needs breakfast when you can just drink it. quick check on the latest business lines. and it's assign that chinese consumers look for bargains. better shopping recommendations. exxon is outperforming expectations and in the last few weeks. and the so-called supermajor energy companies facing investor

skepticism. 71% is buying fitbit, premium that was prior to reporting. e deal could shore up good google's business. starbucks, the newest store is a generous living room. 300 square feet and digital sales. nd the mini cafe is located in new york's penn plaza. paying less in rent and wages. cheer he bailout, we say yeoh. we discuss that later. this is bloomberg. ♪.

ye

caroline: really ahead of the curve in terms of how much the real estate market has been worked. nd now it feels as we work itself. >> that's right. jack has great contacts in the london commercial real estate. and as you mentioned, the story of the day seems like rework is reassessing the projects it has in the problems in london, which is one of the top cities. and close to 30 of their leases are up for reconsideration and this is actually a big proportion because weework has 50 offices that are opened in

london. joe: we know the premise of any wework location is going to get to profitability. hen we see wework for existing offices, is it they no longer think they can get to profitability maybe due to sat ration or this is the moment for cash conservation and until the shift is really stable it's not the time to engage in any investments that's not going to pay off any way? >> probably the latter that we assess the profitability of their locations based on whether they are mature or not. this is language they used. used to be 12 months and now it's 18 months. as you mentioned, this suggests that they know for the first few months up to a year and a half, it's not likely to perform that well. it would be hard for them to say

they will ever perform well but they are thinking this is not the time to be investing in growth and how can they be saving short-term expenses and cutting expenses because that's something they are doing across the company right now. caroline: have we gotten an inside track how the company is going to evolve and c.e.o. coming from the bank to share a little more? any more flesh to the bones of how you resurrect this business business e and you are starting to preserve cash and not throw the baby out with the bath water? >> it's what they talked about before, so cutting back on their expenses, lowering some of the growth expenses and cutting side businesses, they are preparing for layoffs of thousands of employ yes, sir they expect to come in the next few weeks. the top banking skf executive is

chairman of wework and talking about how he is impressed with the business and wants to help turn over a new leaf and get to profitability. he is put iing a public face. he is not the c.e.o.'s. but they are running the show and making decisions about how the company is going to move forward. joe: thank you very much for joining us and reminder to subscribe to her weekly podcast it's called "what'd you miss" this week. you may never have to go a day without consuming. that's all for

"what'd you miss." "bloomberg technology" is up next. this is bloomberg. ♪ here, it all starts with a simple...

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♪ taylor: i'm taylor riggs and this is "bloomberg technology." google gets fed. google gets fed. they will buy fitbit in an effort to boost hardware. plus, a matter of national security. is -- tiktok is said to