perfectly confusing. it was this statement where the president said i've got 25% tariffs on all the chinese goods , and it is going to be 15% soon. i'm surprised people did not as tariffsread it are going down on the first 25, going up on the remaining. caroline: no one seems to be really trading off of it either. muted, s&pelatively 500 just not managing to clinch its record high. of 3100.short i know he likes the round numbers. i guess everything is hinging on what jay powell says tomorrow. caroline: and powell will be our espresso martini tomorrow.

let's dive in with reporters. abigail, what are you watching? term love your technical for trading today, meh for the s&p 500. one that had been neutral for a long time. the rsi momentum indicator also stuck in a range. surelybut -- slowly but started to turn bullish. a set of higher lows. on each dip i'm of the buyers had more conviction, stepped up. this congestion is broken to the upside. anis expected we will see equal and opposite move toward the upside. take a look at the rsi right below 70. everyone gets cautious when it is around 70 but technicians do not mind that. it is when you have a series of lower highs that it gets bearish.

havesuggests we could record closing highs ahead. mike: obviously, the rotation from growth and value stocks into volume stocks, but there is one opportunity for value -- for volume hunters that hasn't gotten attention. the version of the s&p 500. at 20.5 times earnings. trading at about 18.3 times earnings. since 2008. fors a similar story forward earnings. there is a way to buy the passive weighted s&p 500 including the 1600 with the ticker rsv.

flows have been negative for three of the four last four months. first positive month of flows, so it may be catching on. look at theng a continued debate between share withcks and companies dividends. take a look at the investment buyback etf. once that have increased their buybacks. year to datean 30 come up more than 11% alone. they have raised their payouts annually for at least 10 years, that is up only about 23 percent, and unchanged. from this perspective, it does seem that companies making their

buybacks are performing better than companies that are raising their dividends. scarlet: great context. that of course just encourages companies to buy back their own shares. andl with us, luke kawa, christina hooper. got back, you just from asia. obviously a big topic of conversation is the u.s.-china trade war. what did you learn from speaking with clients? christina: the economy remains quite strong in beijing. it seems to me that there is the potential for china to hold out in terms of negotiations. a phase one deal, certainly you would like to see that, but only under the right conditions. on the economy, really borne out

in the singles' day results, a lot of money that can be spent really indiscriminately on purchasing day like that. i think that speaks to the strength of the chinese economy. on a completely made up holiday. joe: speaking to the new , pickup on the holiday and growth expectations. what stands out to you right now about essentially how investors view the world right now? luke: how fast it has changed. what ever you start to see foam fomo andrt to see headlines, there is probably some degree of consolidation. it isne believes that behind us, everyone believes not a huge pickup.

we can let the data speak for you. how about that data? we have plenty of insight from the consumers, retail sales. what will you be focusing on to get a lay of the land of the u.s. christina:christina: we have to look at it holistically. any kind of stabilization is important. we also want to make sure that consumers are holding up. this scenario is not only one where they are curtailing spending, but also that it pours over into capex. again -- at the end of the day, what is overshadowing all of this data is the words of jay powell a few weeks ago, where he said the bar is very high to raise rates. scarlet: we are going to of

course get cpi tomorrow morning at 8:30 a.m. talkingit that we were to earlier? mark said his goal was to make no news at all and leave the when hehere it was started talking. joe: a significantly different message. of reinforce the idea that they are going to be on hold if the data will allow them to be. they wouldtion that be willing to move in either direction. that might get reinserted, something we have kind of heard recently as well. on theere you stand intra-market rotation?

a lot of cyclicals, companies, is this sustainable? >> i think a lot of it hinges on what happens with the trade talks. sentiment has gotten more positive for the sentiment around a phase one deal. it has caused a steepening of the yield curve and expectations around growth. that is where we see that rotation to cyclicals, also small caps. that could last up until next week. it could last a little bit longer. i suspect that it will not last dramatically. move back into growth outperformance probably in the next few months? it could be something where we

see trade-offs, go back and forth without either one being truly dominant. caroline: you mentioned that of course they worry has been slow down in manufacturing. deal, is that going to unleash any corporate spending? kristina: i don't think it will release a lot of corporate spending but it would stop the fear. i think what it will do is cause companies to not think about what else they can do to stop spending. i think, in that respect, to ang companies returned more business as usual mindset can only help. sustain the business investment environment. what we can't sustain as an economy because we are so consumer dependent, is a

spillover into hiring. that is going to be critical. scarlet: bloomberg news process that reporter luke kawa and kristina hooper, thank you. a look atnext, president trump's speech and a look ahead to what jay powell might say tomorrow. this is bloomberg. ♪

fromine: we are live bloomberg's world headquarters in new york. here is a snapshot of how the

u.s. stock market closed today. no new record high. joe: the question is, "what'd you miss?" caroline: pushing for negative pushing for negative rates, trump says the u.s. is at a competitive advantage for other countries. selling $30,000 of bonds. and, walmart's culture clash. why the retail giant's online investments are causing flexion -- causing friction within their ranks. eking out a 500 small gain. this after president trump not really adding much insight into the trade negotiations, maybe not quite as much as the market had been hoping for. speaking to the economic club of new york, the president said a deal between china and the u.s. could happen soon while also warning about the potential

consequences of not having an agreement pres. trump: -- agreement. pres. trump: if we don't have a deal, we will raise those tariffs. joe: we are joined by peter from the institute for international development. yelena,e in new york, bloomberg economist. is there anything in your view that backs up the idea that trump is kind of right with the on rate hikes? >> i would say, in general, not .eally in december, there was a mistake. they learned their lesson and that is why they changed their view so dramatically this year. overall, the policy is the way

it should be, probably should be a little bit lower. we definitely should not go into the negative rate territory. caroline: jeffrey, as someone who is passing through to get some kind of inclination on international trade, this is where powell has been having to tread the line very carefully, making it accommodative enough to offset some of the effects of the trade war. >> i don't think we heard anything new today but the news over the past couple of weeks has been generally positive. putting promised a paper, taking made andncements fleshing it out so there would be a phase one preliminary deal sometime in the coming weeks. i think the president still expects that but he threatened

to up the ante if the chinese do not follow through. joe: suppose there is a phase one deal and some of these tariffs are in fact rolled back, the peak market optimism what to expect right now. an ongoingslate to sustainable rebound or would businesses need to see even more to feel comfortable investing again at previous levels? the phase onenk deal will be fairly limited from an investor's point of view. even if there is some postponement of increases, even if there is some rollback from what was done in september, there will still be a lot of tariffs with a lot of trade. the likelihood that those will not be reduced probably through the election cycle, that is

that to create a situation is still wary of policy gyrations. preventing things from getting is what the phase one deal will do but the phase two deal has a very cloudy horizon. caroline: before we had, kristina from invesco saying it notd not matter if we did see investment that would not affect the consumer in some way. >> i think it is a very dangerous strategy to have both eggs in one basket and just rely on the consumers to drive economic growth. i think we would like to see business investment to engage at some point. i was just nodding because i

totally agree with jeffrey that some sort of rollback in tariffs is not going to solve the issue .n on certainty i think it will take more than that. joe: we have had like, what, this modests of growth that never really overheats. is there any reason that just can't continue disciplining growth? yelena: it can. but if you continue to grow and external shoceconomy is vulner. if you have stronger growth, you are more prepared to sustain it. caroline: today, what the market was waiting for was some clarity on auto tariffs being pushed

toward europe as well. how much do we need to factor in countries may or may not get embroiled in the future? other countries are embroiled in the u.s.-china trade war. trade skirmishes or trade frictions, particularly with europe on automobiles. that while the big event, the main event on the u.s.-china talks are still playing out, that there would be a postponement of a final autos.n on what to do on caroline: don't miss our special coverage. addressing the special joint

committee tomorrow. we will also be joined by san francisco fed president. joe: up next, the chilean peso some of its extreme losses but it is still trading at some of the lowest in history. more up next.

peso was the chilean off to a record low earlier today before paring some of the extreme losses. joining us in santiago. the central bank had to step in

because there was so much concern. the political perspective when it comes to the constitution. >> the government announced on it would make a change and that has sent some panic through the market because there is fear that a new constitution could undermine some of the free market fundamentals that the chilean economy has been built for the last 30 years now. joe: it seems like a pretty good -- pretty big deal to put in a new constitution. what would mollify protesters and what would change how the country works and, as you now, works for away that investors have been happy with over the years? 's first of all, it is a big gesture.

this constitution was drawn up during the dictatorship of pinochet. it is seen as enshrining a free market system that has created createdalth but also great inequality. strictwant to ease the control over private property, which has allowed them to privatize water, for example. we are now in a drought and that is causing a lot of controversy, the fact that the water has been privatized. more than specific things, it is a gesture. caroline: it is a gesture that, .s yet, hasn't stopped we saw workers take to the streets today. is there rebalance that can be found, that does really counteract the inequality that

has been building. but it sends the economy into a tailspin when it comes to exchange rates. >> it is a balance. we are nowhere near finding it yet. the constitutional change is just beginning of an enormous process. the government has not said how it will reach agreement over a new constitution because the opposition has come out and said the vega mechanism the government has come out with is not good enough and they would not support it. new constitution is at the very early stages. the economic steps that have also been taken, they are also at a very early stage. there is no real dialogue going on, no prospect of dialogue, and no end in sight. joe: thank you for joining us. now, a quick check of the latest business flash headlines.

giant american milk producer dean foods firing for -- filing for chapter 11 bankruptcy reorganization. they are also in talks with the dairy farmers of america for a sale. they have been losing money since losing their biggest customer, walmart. americans have been drinking less cow milk. the ceo of nba's brooklyn nets and berkeley center is quitting after less than two months on the job. he walked away from the sports operation owned by alibaba billionaire joe sipe. he spent 30 three years previously at turner broadcasting. and the launch of disney's streaming service marred by technical glitches and crashes. still, disney plus worked successfully for many customers and generated excitement and buzz on social media. disney said consumer demand has exceeded its highest expectations and it is working

to resolve the problems. that seems like a good start, a good sign if you crash. caroline: i guess you are so popular, you break the internet, right? few hours.it is a i am confident they can install some more servers or whatever it takes. youtube, hbo, amazon, they all get glitches. interestingly, many writing today saying that hulu could ,eally be the sweet spot disney basically going back to the bundle situation. joe: hbo is expensive. have you subscribed to that yet? caroline: no. coming up details on the largest bond sale this year.

the offering sold $77 billion in orders. this is bloomberg. ♪

with i am mark crumpton bloomberg's first word news. president trump delivered a speech this afternoon at the economic club of new york. 's touted his administration economic compliments, pointing to job growth, energy independence, and tax cuts. he said many of these gains came in spite of the federal reserve. pres. trump: i did this despite a riordan -- despite a near record number of rate increases and quantitative tightening by the federal reserve since my election, eight in total that work, in my opinion, far too

fast an increase and far too slowly decrease. mark: the president also accused the fed of hurting the u.s. by not deploying negative interest rates. the supreme court's conservative majority seems prepared to allow the trump administration to end dhaka, the program that allows some ridents work legally in the united states and protect them from deportation. as protesters assembled outside the court, chief justice john roberts indicated that he saw daca as illegal from the start, covering far more op than previous deferred deportation programs. the cancellation then provided by secretary of homeland security kristin nielsen. >> you are looking at some of the most determined and courageous people in the united

states of america. they have lived their entire lives under the shadow of an immigration status that has raised questions every time someone knocked on the door. they have been counseled and warned by their parents not to say or do the wrong thing or their entire family could pay the price. mark: some of the liberal justices indicated they will vote to block the president. said theomayor president would find a way to keep them here. a lawsuit to go ahead against the maker of the rifle used in the sandy hook elementary school shooting. appeal fromected an the gun maker, remington. they argued a federal law shields firearm manufacturers from most lawsuits when their weapons are used in crimes. the trumadminirationas creased pressure on the wto,

so --, suggesting they may block the budget. they expressed concerns about several of the wto's financial processes. numbers have until december 31 to adopt a budget fo2020 and 2021. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. am mark crumpton. this is bloomberg. caroline: thank you. of bonds tobillion help finance the acquisition of allergan. finance reporter molly smith. why is everyone trying to get in on this deal so much? they are not actually having to togh up much of a premium

their existing debt. >> excellent performance today for abbvie, all things considered. the cheapest borrowing cost of the year, so why not get in on this? we have kind of had an idea that this deal has been coming since june. just a matter of time really when they would come forward to the debt markets. it looked like it was timed pretty well. joe: ultimately, stocks at record highs, rates are pretty low. in this environment, there is a lot of appetite for credit, especially decent quality. >> the higher quality is doing well. today was incredibly busy in the high-yield market. we saw at least 10 year deals going forward, most of them bb. not seeing much in the lower .uality single b and ccc

caroline: this week, we have been rolling out an exclusive interview with the allergan ceo. this deal hasn't got through regulatory approval yet. his a little listen about confidence. >> it is kind of a tale ofs t ik having the ability these expensive and important bets will be important to the strategy of the company. caroline: that was more his viewpoint on why research and development, the fact that r&d can be such a winning force for them. cansually we see that usually affect timing of deals. for example, t-mobile and sprint , sti all t lawsuits from

the state wanting to block that tie up. a big factor plays in deciding when the companies want to go forward with these issuances. now, the u.s. banking enjoying a record third quarter with revenue for the six largest firms climbing for the 12th time in 13 quarters. but it will not be showing up in the paychecks of the rank-and-file this year. bonuses across wall street are set to drop with traders faring the worst. wouldn'tre good, why they just automatically filter down into higher bonuses for everyone? mentioned, we saw a good third quarter, but that comes on the heels of the worst first half for a decade for traders specifically.

some there have been existential questions around equity specifically, down about 15% bonus-wise. equities has been a tough business across the industry and tech has had a lot to do with that. you pair that with what else we are looking at with the rate environment heading into 2020 and people are less excited overall. joe: who is happiest? it doesn't look like anyone is doing that great but at least some people are going to at least match cost-of-living adjustments. >> private equity, hedge funds. m&a advisory, a bit across the board. hedge, private equity and funds. private equity specifically we know is huge right now.

forline: where does it go 2020? it was interesting that ubs wealth management put out a piece today. this balancing act? >> that is always the question with volatility. the2020 this is something survey really emphasized, that , the rateutlook environment now in the u.s. and elsewhere is going down, not up. that has been the engine carrying the commercial operations based on the rate environment. caroline: stick with us, traders, until 2021. coming up, high-fashion, low

prices. we will be discussing the rise of the online retail market and what it means for luxury brands. this is bloomberg. ♪

caroline: time for a look at what is trending. citi with a warning to clients that the white house in 2020 may entail a war against wall street. some candidates are pushing greater accountability for corporations while some are worried that loosening the reins might foment another financial crisis. chrysler manufacturing more cars and trucks than its u.s. dealers are willing to expect.

put ampany says that it predictive analytics system in .lace this year at tictoc on twitter, reporting that facebook has announced facebook pay. to be rolled out more broadly over time. they will install card and bank account numbers, provide notifications for account activity. you can follow all of these stories on your terminal, bloomberg.com, and of course tictoc on twitter. joe: a culture war is brewing inside walmart. the world's largest retailer has been investing heavily in e-commerce largely to the dismay of its brick-and-mortar business. still, there is obviously

walmart's brick-and-mortar business. sidetion on the business in terms of who gets resources, or is it something fundamental about the values of the company? >> big reason -- big retailers like walmart will always have the battles of will get the smartest employees. walmart kept their digital business hived off. it was a standalone company back in the day. now that walmart wants to be omni-channeled an retailer, they are bringing those divisions together and ifts have exposed those r inside the company. caroline: as they try to streamline, what are the negative ramifications? who do note people

see the world in the same way. the people inside bentonville who say, we are making all of the profits, the stores. these guys out on the coast, they are messing with ar, vr, making these acquisitions that don't work. there is a bit of jealousy there possibly. joe: letting tech people experiment on things that may never come to fruition is part of what all tech companies have to do. is that particularly hard at a place like walmart which, i imagine, is not their first choice of the place they want to work? matthew: walmart is not historically a tech company but their ceo wants to be seen as a tech company. they are going to campuses like stanford, princeton, yale. this has created a little bit of a conflict. walmart, at the end of the day, is a brick and mortar retailer.

they are doing very well online but it has exposed this culture war. caroline: how the old school is mocking the new school. matthew: try a fax machine. when is the first time any of us used a fax machine? in silicon valley, something coming up more and more is employee activism. microsoft and amazon pressuring businesses to work with the government, deemed to be bethical, is this going to an issue with the values that people in san francisco have? it is already an issue. when walmart had killings at

some of their stores, a few of aeir dotcom employees staged walkout. there were letters sent to the ceo. they wanted to get walmart entirely out of guns. at the end of the day, walmart forced a compromise where they got out of some types of ammunition. it is playing out already on issues like guns, lgbt as well, wages another hot button issue. caroline: thank you for giving us some of your time. stick with retail because resale is en vogue and even luxury brands can profit. covers retail. you got together with andrew to put together this great piece that shows, cannibalizing demand for higher end luxury goods, it could actually help.

i think the threat of these sites, the luxury industry is all about exclusivity, and that would be a threat. but what we are seeing is that prices remain decidedly still in the luxury tier. louis vuitton handbags, the median price is $1000. .t still puts these goods it is not cheapening the brand. in some cases, with rare and vintage pieces, you can see those over $60,000 on the real real. that is more than they would cost at a store. joe: there were concerns, maybe how they would play out with pricing. brand others, is there a positive value, exposing people

to these brands and building the value in a way that existing channels had not been doing? there is.hink one of those is allowing them to have this halo of sustainability and recycling. there is this backlash brewing. the likes of burberry can team up with the realreal and let customers get a free personal shopping session. toallows them to telegraph customers, we care about sustainability and recycling. i think that could be good for these big fashion houses. caroline: one trend that spoke to me, and very boringly because i am looking at expensive purchases of things like bassinets at the moment. do i buy a new one, secondhand? you can get a high price on the secondhand market, so why don't

i can get some money back eventually went i sell it on as well. what we are seeing is that millennials and gen z in particular actually take this resale value into account when they are buying new luxury goods. let's consider you are buying a new $2000 bag on balenciaga. if you can go on the real real and say, i might be able to sell this bag, recoup some of the money i spent. withe that particularly younger shoppers. could becases, it pushing a new shopper to these luxury brands for the first time. caroline: the wedding dress i bought, i cannot sell this

secondhand. i cannot vindicate the too much money i spent at the time. joe: you should write up a piece. caroline: you have a lot of con artists living on oil rigs who want to buy your wedding dress. joe: quick check of the latest business flash headlines. bowing to rising competitive pressures. it is now offering a no frills fare option that cannot be changed or canceled. plus, you board the plane last. they are feeling the pressure from carriers like frontier. boeing's, sales of grounded 737 max slipped in october but it was not all bad news. a customer converted 16 of its

max orders to five of the 787 dreamliner. theng has -85 orders for max this year. caroline: coming up, the unrest in hong kong continues. some lawmakers warns. we will have the latest. this is bloomberg. ♪

hong kong--joe: protesters plan to disrupt wednesday's commute as they clash late in the evening at a university. let's bring in bloomberg's shery ahn. the protests, how many weeks have they been going on now? shery: at least five months. it ist this point, increasing the likelihood that the hard-liners in beijing may

--t to take a stronger shery: what sort of response that would be is the key question. many say you could still respond strongly with existing hong kong police on the ground. we saw the increasing violence in the last few days, including people being shot, including -- caroline: set on fire? shery: set on fire, that is really huge. it was a pro-beijing supporter being set on fire by pro-democracy protesters. hong kong police asking for help in finding the people who actually set that man on fire. thinkne: so you don't beijing is going to step in even though there is now a real danger are those who seem to be pro-beijing? analysts say that will not happen because hong

n international financial city and all eyes are on hong kong. one of the demands from protesters, that there would be an independent inquiry into the violence coming from the police. when i talk about international condemnation on these actions of -- actions by the police in hong kong using force, we have seen, for example, the state department releasing a statement last night, saying that the situation was of grave concern, that they are condemning violence with a famous phrase of on all sides. also some in congress urging the passing of the hong kong human rights and democracy act, which of course has passed committees but has not been put to a full vote on the floor. we are still waiting for that to

happen. that would lead to an annual review of hong kong's special trading status. caroline: hong kong mtr saying that the east rail lines have been suspended. sherry, you will be covering it for us throughout, i am sure. daybreak asia starts at 6:00 eastern time. a quick check on stocks moving after hours. it was deemed one of the worst ipos in the u.s. of the year. smile direct club still sinking even though they project full-year revenue that tops expectations and revenue group. invisible brace company to do, except clearly more? tilray up 5% even as they missed expectations. joe: coming up tomorrow on the program, he --, we will hear from tilray ceo brendan kennedy. caroline: tomorrow, fed chair

powell testifies for congress at 11:00 a.m. eastern. joe: numbers for u.s. cpi for october out at 8:30 a.m. eastern. "bloomberg technology" is next in the u.s.. this is bloomberg. ♪

♪ riggs in santaylor francisco, and this is "bloomberg technology." disney's streaming service disney plus is hit by technical issues in its debut but some call it technical setbacks -- temporary setbacks. they say they will reach their al