looking in the realm of flat, so would not be surprised if we come in slightly positive, but -- the consensus for next year is around 9% or 10%. full want to see management teams -- people will want to see management teams validating and giving reasons to stay in there on the polish side. there has been a lot of momentum chasing the market but we have gotten to a point where investors have to see the rubber meeting the road. to get another leg higher, i think people need to see fundamental improvement. scarlet: --romaine: into the red on the major indices. the dow suffering the worst, down about 0.4%. spots we don't have the screen, the

philadelphia semiconductor index and the transports were higher. aboutw transports up 0.3%. wellnot a huge selloff but off the highs earlier. that chip rally not enough to keep the nasdaq in the green. romaine: tesla up 4% today. the biggest mover of the day, apache. they found a bunch of oil. deeperive a little bit into the action with our markets reporters. abigail: apache having its best day in almost 50 years, all the way since they ipo din 1980. this is based on the oil

discovery off the coast of serena, -- of suriname. there is a short interest of about 7%. some of this could be a short squeeze. we are seeing an area where investors are becoming a little bit more bullish. bonds, whenapache it goes wide, it is ensuring the debt. last year, you can see, going wide by about 200 basis points. last year, there was the idea that they may not be able toet oil out of it easily. a hundred basis points. it will be an interesting stock to watch this year. apache having its best day ever and about 50 years. of microchips technology up 6%.

how connected this company, really all the chipmakers are. up 35% of revenue. consumers makes up 24%. really interconnected. inside my terminal, really such a cyclical industry. take a look at this. , tracking itring closely as we keep hearing, analysts really looking for a bottoming out of some of those prices. interconnectedness here in part to the broader economy as well. renita: appellate pharmaceuticals, the stock has risen to a record high, the

head2head study foray experimental -- study for an experimental anemia drug. olexionne slumped -- slumped. llis showed greater improvement than alexion. the price target to a street high have $26 per share. joe: still with us, bloomberg news across asset reporter katie grayfield and ftse russell managing director alec young. one thing you probably did not miss is the chinese yuan strengthening a little bit. what is this telling us about the state of the mobile economy? katie: it is interesting because

the dollar is up against most of its developed peers except the yuan. you have not seen a lot of data out from china this week. people,iment i get from , thethese iran tensions administration might want to dial back some of that trade rhetoric. also interesting that treasury has not released its currency report. int was supposed to come out october. the thought is that they are waiting until after the phase one trade deal was signed. as you know, china was named a currency manipulator. romaine: the move was interesting. the 300 closed at its highest level in a couple of years. the highest performing etf today is attracts a lot of those

internet companies. when you look at investor sentiment, does that not sort of ifchup with this idea that china has at least avoided the worst or is sort of bouncing back from the worst, that could be a boost to global growth? absolutely, and data integrators like alibaba, that is a big story. these stocks are leading the market. alibaba and tencent definitely give china some exposure. the dollar stalled out a little bit over the past couple of months. emerging markets always seem to in thatter sentiment versus a strong dollar environment. in general, big mega cap

tech, extraordinary. apple, $1.3 trillion. alec: i don't know about you, but i spend more money with them every day. theseoes this mean all of dreams and rotations away might be premature? alec: what is the hallmark of our time? companies are getting more successful. they are harvesting more data. to help those companies monetize it. those companies will be selling ads back to those people based on what they have been telling them. they are realizing there is no reason -- why is a trillion dollars a ceiling on the evaluation of some of these companies? world's like all of the aggregate data is being allocated in about 10 or 20 companies. katie, if youe:

are trying to diversify or be a little bit more broad in your outlook, if you are an asset manager come are you brave enough to say, i don't need apples. i have been talking to investors in the past week, i see a lot of bullishness overseas broadly. the indexing europe has been going straight up over the past sessions. there is a sentiment of a global growth rebound. we have heard time and again that we can expect mid to high single return to the u.s. that may be going abroad. central banks continue to liquidity into the system and the global economic picture brightens a little bit. joe: alec, how do you hedge year? -- hedge here? alec: it is always reckless to

abandon treasuries completely because that is the ballast there are a couple of ideas. integrated oil, which has appeals especially in europe. with the geopolitical tension, it puts a bit of a floor under the oil price. traps,ve been value great deals for a long time but they keep going lower. we need something to stabilize the situation. thee is an, higher than u.s. if you look at the european integrated. the other theme in terms of hedging, gold is acting better. you never know what will happen geopolitically, so one way to make sure you have some insurance built-in his through gold. the fed has narrowed the interest rate premium of the dollar over other currencies.

a weaker dollar is good for gold. i would maybe take a look at that from a hedging perspective. romaine: gold, highest level since -- bitcoin is up, too. joe: congrats. romaine: thanks to bloomberg news cross at -- cross asset reporter katie greifeld, and ftse russell managing director alec young. that does it for "the closing bell." "what'd you miss?" is coming up next and we will be looking at those tensions in the middle east. this is bloomberg. ♪

romaine: live from bloomberg world headquarters in new york, i am romaine bostick. here is a snapshot of how u.s. stocks closed today. gold holds its highs and the stock remains range bound. willopolitical risk rises, financial conditions get looser? investors trying to figure out what middle east tensions really mean for markets. chip stocks have the best sessions of the week as commentary out of the ces technology show add to optimism that a slump may be over. investors may have been overly cautious in trying to avoid negative interest rates. and people should not dismiss the idea of a subzero fed funds

rate. joe: even though iran tensions continue to escalate, the market reaction seems mild. learned that in the last decade, that markets can get over these things relatively quickly. it is not unusual for markets to get a shallow response and back to the positives they can find. for more, let's bring it the managing director for global macro strategy at medley macro advisors. everyone is kind of taking this view, the market can see through this, people have seen this play before. what is your view? does it make sense to be sanguine? >> i look at it more economically. i thought the market reaction was rational and a sense that

.he markets have underperformed i think that is what the market has really thought. expectations, as you asked your colleague earlier, why is the market not further down today even with still simmering tensions? there is a major liquidity factor that has happened because of the federal reserve's repo operations, but other central banks have done it. andtioned conservatively therefore ready to reengage if tensions were to ease. romaine: so this idea of reengage in, a lot of say, if you look at financial conditions, there is no real

anticipation they will tighten too soon. is that what you keep an eye on? >> i thought of this chart this morning that -- not exactly breaking out of their highs from 2018-2019. people are looking for .pportunities to reengage again sonali: reading some of your morning, some trades you should be putting on given this is a risk in the market. ben: you can look at this as a proxy go forward trade. , those typeks, oil of sectors will perform. we are also still dealing with the trade war.

sectors, health care and utilities, that can perform. reallytion, if you are conservative, liquid instruments as well as gold. ultimately, in these trades, you want to at some point get out of this. think that, like previous episodes have shown, geopolitical tension is very lucrative for investing. it has shown each time that has these dips happen with geopolitical tension, opportunity is there. these tensions, whether it is this one or trade or anything else that comes up, will it keep a lid on treasury yields? there is mildk inflation as we speak. you could think that oil price going higher could affect inflation. maybe, but locally.

people in liquidity, every engaging idea. if you have the upper teeth -- opportunity to reengage. yes, treasury yields, probably not too much to get all the way to 3%, more like upside of 2%. romaine: can you talk quickly about the upsides we are seeing in the market and particularly where the upsides of those yields are right now? widert has only gotten now. industrials, health care underperforming, but i like mostly the asia-pacific markets were the real underperformers have happened. ofre is a huge gap in terms value. those markets have underperformed. sonali: iran was really only one risk at of a multiple of risks

going ahead. what should we be more or less worried about in the next couple of months? ben: as you see with this development, the side effects of this. there are tensions happening in the gulf come out of europe. there is obviously our own political situation that we are going through, meaning not only the election but political tension. in the background, adding to uncertainty from the trade war. net-net, uncertainty remains elevated. i think this is another year where it dominates. sonali: thanks to ben emons. coming up, a sign of things to come? microchips may be signaling that semiconductor downturn has bottomed. this is bloomberg. ♪ ♪

microchiphares of technology rising today after preliminary sales stronger than expected, which reinforces the view that a downturn may have bottomed. joining us is bloomberg intelligence senior analyst. aboutsults, is this just the long drawdown or is there a real catalyst with regards to the economics and business aspects? the inventory play is part of it. microchips, inventory has bottomed at their distributors for quite some time now.

with the ceo said at ces today is that was more of a demand pull that has been driving to higher sales guidance for the quarter and their outlook for the march quarter. what does this mean for semiconductor demand going forward? help us understand what microchips mean for the rest of the industry? plot --hose micro microprocessors and microcontrollers that go through a host of different devices from washing machines, consumer goods , automobiles, industrial goods. they have a broad exposure. given the positive commentary, it means that we are starting to see the tide start to rise a little bit more from the semiconductor downturn. it should be indicated that the rest of the industry should be

rising as well. joe: what are the most surprising and compelling areas right now overall? x anything 5g will excite investors. that is going to be reflected into the multiples. microchip does have some 5g exposure but there are other companies such as analog devices, qualcomm, that have 5g exposure as well. romaine: this stock is already up about 15-plus percent over the past year or so. there is a lot of anticipation here for i guess what microchips could generate in terms of how much ofprofit this run-up is also because of optimism with regards to u.s.-china trade?

x if we look at the multiple expansion of the last quarter or , it a lot of it has to do with the optimism or some anticipation of a u.s.-china trade deal. next week.e signed billion --ve $300 25% on $300- billion of goods outstanding. phase 2ibility of continues to string along investors on earnings upgrades not only for microchips. joe: our thanks. a quick look at the latest business flash headlines. tesla ceo elon musk has something to celebrate. tesla has kicked off production in china. it is a major step in musk's push for electric vehicle

domination. he was outside the plant in shanghai. the company handed over the first china made model 3 sedan. the battle to be the official provider of the english powerhouse soccer team liverpool, following a court battle between liverpool and it's for -- and its current outfitters balance. nike offered to pay liverpool almost $40 million this season was a percentage of sales. the company will also use stars such as lebron james when advertising liverpool products. that is your business flash headlines. now, here is something that is kind of unusual. peopleelic drugs, associate them with hippies and using a's, but

substance in the psychedelic magic mushrooms for treatment. it has even received the backing of billionaire investor peter thiel. romaine: i guess this is the world we live in. a lot of the things that were demonized and pushed to the side years ago, people are finding out there are practical applications. made theeter thiel has case that the fda has gotten in the way of drug innovation. this is a progressive way to move forward in that space. joe: i think there is a lot of general dissatisfaction with the current slate of products geared toward targeting clinical depression. people find they can benefit from this if it can be administered in a controlled way. romaine: you can catch all of our interviews and discussions on the bloomberg with the function tv .

find live events and be part of the conversation. this is bloomberg. ♪ and they lived happily ever after. the end.

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sure. i've got plenty of time. life line screening. the power of prevention. call now to learn more. i am mark crumpton with bloomberg's first word news. president trump says it is not the right time for the united states to pull out of iraq. that country's parliament called for foreign troops to depart. speaking during an oval office meeting with the visiting prime minister of greece this afternoon, president trump saturday u.s. departure would be a mistake because it would give iran a foothold in iraq. senate majority leader mitch mcconnell says he has secured the republican votes needed to start president trump's impeachment trial and postponed

a decision on documents democrats want. he is expected to launch the third impeachment trial in u.s. history as soon as house speaker nancy pelosi sends the articles of impeachment to the senate. democratic and republican senators are reacting to a statement from former national security advisor john bolton, who says he will testify in a forthcoming impeachment trial in the senate if he gets a subpoena. theon said he has waived issues of executive privilege after "careful consideration, he would comply with a subpoena." >> mr. bolton should testify. i would hope that majority leader mcconnell and my republican colleagues will realize this is a constitutional responsibility. we need to have a full and fair trial. national security advisor bolton

, it would be pretty remarkable if he published a book months from now that had answers that were relevant to this impeachment proceeding. to, they house wanted should have called him. they can still subpoena. i am not sure it is the senate's job. mark: president trump again today railed against the impeachment proceedings by calling them a partisan hoax and witchhunt. rocked byo has been another series of earthquakes. they are the largest in a series of quakes that have struck the u.s. territory in recent days, causing heavy damage. at least one person has been killed. widespread power outages have been reported.

global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ iran said it is evaluating 13 possible ways to inflict a historic nightmare on the u.s. the threat has not deterred the trump administration, however. secretary of state mike pompeo wased claims that soleimani in baghdad on a diplomatic mission. >> there has been some story that he was there representing a saudi peace deal. i have spoken to my saudi counterparts and i can assure you that he was not their negotiating some kind of agreement that would reduce risk to the lives of american's. in terms of what we are

looking for next in the where he, is it mainly ran might retaliate -- where iran might retaliate? >> i think we need to get past the formal burial of soleimani in iran, then see what happens in the coming days or perhaps weeks. we don't know if we are talking about some sort of a cyberattack or a more conventional terrorist or military style attack either by iran directly or by proxies such as has bilal -- such as hezbollah. the u.s. has been actively sending more forces to the region. yesterday, we reported a three ship naval battle group with marines being sent to the persian gulf region. that is on top of about 3500

troops from the army's second airborne sent to kuwait. is that theren could be a reprisal in the days, weeks to come. >> how fast are things progressing? >> things are progressing at lightning speed. i think every day since the strike, we have had half a dozen major events taking place that would have been surprising just a few weeks ago. they promised to get u.s. forces out of the region. troops20,000 additional being sent to the middle east since may. if you look at the fury this has caused in iran, the government

has to find some way to respond in a way that satisfies its public. we seem headed toward more serious events. irandea that the u.s. and will find their way to the negotiating table is dead at this point. romaine: do we have any sense of what europe is doing. obviously, they are the only thread in that nuclear deal than iran saying they would not abide by it anymore. that theye saying would like to keep the nuclear deal alive, that they are working on that. --ping up the richmond enrichment and any limits placed .n it thinrs are focused on that

thread of hope that can be salvaged. they would like to see both sides de-escalate. joe: thank you very much. coming up, october deadline. it is a new year and gas stations across the country are rushing to upgrade their card readers. we will have that story next. this is bloomberg. ♪

a look at whator stories are trending. users are reading about a senior money manager from oaktree who depend from the firm as a result of a consensual relationship with a colleague that violated company policy.

oaktree said that workplace relationship needed to be disclosed. similar situations at black rock and mcdonald's. bloomberg.com has a story that canadians are smoking more marijuana than they are drinking beer. that appeared to be the trend in the first full year of legal cannabis. declining beer sales have led to several alcohol-cannabis partnerships. quicktake by bloomberg has reported that there have been 50 5000 few related hospitalizations this year. related0 flu hospitalizations this year. things that can be avoided are at the gym, and remote controls. likejust when it seemed

the tide had turned against the experience of negative interest rates, former fed chairman ben bernanke entered the conversation with some thoughts that have raised some eyebrows. that negativeview rates, they have not been particularly successful. thanks hate them, they are politically unpopular, and they don't even seem to do anything. what did bernanke say that kind of reignited the question that maybe we will see them one day here? >> basically -- a lot of fun. he is saying that we should keep this policy option on the table, we should not completely write off negative interest rates because it could be useful in some future economic crisis. i happen to strongly disagree. if we look at the track record of negative interest rates, it

is unsuccessful. i think it is a dangerous endeavor for the fed to be considering a toxic policy option that could give -- that could think the downturn even worse. sonali: does anyone agree with ben bernanke? what other kind of person would think this would be a good idea? >> i think there are sympathetic views on the others of the atlantic. some europeans. we know that northern europeans hate negative interest rates. we saw sweden move away from negative interest rate policy. i think the best course of action for the ecb would be for christine lagarde ripped the bandage off. negative rates are penalizing the banking sector. while it may be fun to eat up on bankers after the global financial crisis -- we certainly don't do that here. but a healthy banking sector is

necessary negative interest rates do not foster a healthy banking environment. thatne: one of the things bernanke he kind of hinted at was that we should not be surprised if we do get to subzero or near zero. there is a sort of sinkers asian effect. if everyone is at or near zero, than the u.s. can't stay two points above them for long. >> of the rest of the pack goes into negative territory, i could not advise u.s. policymakers to follow suit. this is one of the reasons jay powell -- he did not have a phd in economics. but he has a strong understanding and private sector finance. that is a strong edge for him. that is why there have been more rational minds to say that

negative interest rates will clobber private sector finance. >> forget the bankers. to what extent are we seeing negative interest rates hurt the customer? >> we are seeing it in part of europe already. we don't have to go into the nuances. look at gdp growth and we can see much -- conditions in the u.s.. romaine: let's get a quick check on the latest business flash headlines. the pentagon says that lockheed martin is doing a much better job of delivering f-35 jets on time. jetsdelivered 134 of the in 2019, 7 more than its contractual requirement. the f-35 program has been hurt by years of delays and flawed performance. creditors are trying to force endurance race organizer tough

intor -- tough mudder bankruptcy. races in organized which 5 million people run obstacle courses through the mud for some reason. home prices in 10 u.s. states are still lower than they were before the great recession according to a real estate analytics company. corelogic leads all states with a 17% equity decrease since the price peak. are downand nevada 10%. stations across the u.s. are rushing to upgrade fuel pumps chip readers. they must update now that visa and mastercard ejected requests to delay the cutoff date. bloomberg banking reporter joining us now with the story. i am curious why gas stations

were resisting the technology in the first place? not resisting but gas stations have some of the lowest margins across retail. if you talk about the kind of outlay needed, the average store will be spending $30,000. that means ripping devices out of concrete, putting in new ones. it is a very labor-intensive process. they have been complaining that this has been a very big lift for them and they will not be ready by the deadline. sonali: it doesn't seem that visa and mastercard are being very patient with them? >> they have been talking about the need to go to chips for almost 10 years now. they are saying that retailers across the country made this transition. gas stations have already been given this extra five years. they need to make sure that the

entire system is safer for consumers. romaine: what happens if we get to october and we are not there? we are not even a cash society anymore in many parts of the country. jenny: a lot of gas stations, there have been surveys that have been done, and they are saying the cost is not justified. a lot of these gas stations do fraudderstand how much they will be liable for. the thing is, hackers no where the biggest vulnerabilities are. they will migrate to the stores. that is the real risk we are seeing with these gas stations. joe: explain that last part. the chips in. reducefraud -- in theory fraud, so they will still be able to have the old swipe, they will just be on the for fraud. jenny: they will have a

liability shift. right now, if there is fraud at the pump, your bank will cover it. after that, if they have not upgraded, the gas stations will be liable. alsoi: there are fines embedded in this just for not switching. jenny: it is not so much a fine, it is really just this liability. a lot of folks said that gas stations don't understand how much fraud they will start to see. a lot of people talk about how ,reative fraudsters are identifying where the most vulnerable stations are and attacking them relentlessly. to bloomberg's jenny surane. coming up, taiwan gearing up for a presidential election this weekend and independence looming large in the race. what is behind the china-taiwan

divide.

romaine: now to asia ahead. as hong kong deals with the political unrest, china's next crisis may be dealing in -- may be brewing in taiwan or a pro-independence camp may be gaining strength. peter, we have a big election coming up in taiwan, and this is kind of the night normal -- kind of more than a normal election, about the identity of taiwan and the backdrop of the one country, two identities approach.

peter: it is being extremely closely watched in taiwan and strengthening the hand of the incumbent, the president of taiwan now, running for reelection. the candidate closer to seeking ties with mainland china had been advocating for one country, two systems along the lines with the relationship hong kong has with china. now, watching this turmoil and see a now -- seeing how it is being received, let's try to keep the status quo as long as we can. verythe status quo is weird, people using the right terminology. is schrodinger's country.

where could the rubber meets the status?h that the jinping used a speech like china must and will be united. importantly, he put a timeframe on it, saying this task could not be passed from generation to generation. until now, there was kind of this fig leaf. we are one country, at some time we will reunite. xi jinping wants to be the man to make it happen. when the rubber meets the road, he is intent on making it happen. taiwanese to say, we do not want that. sonali: how to those problems start to play out?

peter: it is interesting. i will say it in a bloomberg-friendly type of way. happening, it is the factory. foxconn, which makes parts for apple products, has massive manufacturing in taiwan. the head of foxconn has been an advocate of closer ties with the mainland. meanwhile, now that taiwan is exempt from some of the tariffs trump has put on china, some manufacturing is starting to come back to taiwan. sonali: that gives them a little power? peter: a little bit. china could overwhelm taiwan any time it wanted to, it just has held off. joe: the election is this weekend? peter: january 11.

it is going to be interesting. it is clearly a huge issue. romaine: before we go, can we acknowledge, this is sonali's first appearance hosting "what'd you miss?" the most loved program on television. he did a great job. sonali: thank you. bloomberg's peter coy, thank you so much. don't miss this. tune into our live coverage of nissan ceo carlos ghosn's news conference in beirut at 8:00 eastern. joe: constellation brands reports third-quarter earnings before the bell. romaine: beyond reports. sonali: that is all for "what'd you miss?." joe: this is bloomberg. ♪

♪ taylor: i'm taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." micron stocks rally. we will hear from micron ceo and others come alive. facebook takes action -- and others, live. plus,