>> welcome i am mark crumpton with first word news. paul plosive the husband of house speaker nancy pelosi was assaulted during a break in at the san francisco home. it happened early this morning just over week before midterm elections he associated press reports he was severely beaten with a hammer, paul pelosi is affected to recover. star quarterback tom brady and his wife are divorcing after 13 years of marriage. brady said they arrived at the decision equitably -- amicably

and they are glad for the time they spent together. he retired last season with a temp of a buccaneers but decided to return to the team. hopes that the euro zone can stave off a recession got a boost today, germany to fight -- defied expectations by reporting another quarter of economic growth. they grew the gross domestic product by 0.3% in the quarter, momentum slowed in both france and spain. french growth went from .5% to .2%. in spain gdp rose a worse than expected .2%. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg.

>> welcome to bloomberg markets. >> let's get a check on the market, we have a big broad rally on our hands you looking at the s&p 500 up 2% on heavy volume. a lot of that is coming thinks to apple. you can see that reflected in the nasdaq 100 the tech heavy index up 2.7%. that is incredible, you look at the bond market yields are marching higher, the 10-year treasury yield, up nine basis points, over that 4% level, we got below it yesterday, seems like a long time ago. we look at the dollar getting a bit of a bid, up .3%. >> that is playing into the energy story, not holding back some of the energy stocks, let's start katie with the story --

apple are performing amazon -- outperforming amazon. we see the enthusiasm for the giant. let's look at the stories we have been tracking today, intel has been a standout performer. they are looking at challenges ahead. the cost-cutting plans seem to be well received on wall street. the stock is up 2% right now. i mentioned the energy trade, even with the softness in oil it's up the fact that exxon and chevron had massive quarters, multibillion-dollar profits are those businesses. we are seething -- seeing modest reaction for colgate, not every industry reporting results is doing well. the botox brand is down 5% on an underwhelming revenue story. >> corporate news today, one of them is twitter, elon musk

wasted no time taking complete control, the billionaire appointed himself ceo and began restricting -- shaping strategy. let's bring in bloomberg's ed ludlow he is on location at the companies had quarters -- headquarters. you are on the ground, what is the latest? ed: we have seen people leaving twitter headquarters with boxes. we are trying to verify if layoffs have started. to what degree layoffs have started. as you guys know, on thursday night, most of the top ranks of twitter c-suite left the company including the ceo and ned siegel, the cfo for the last five years. musk quickly installed himself as ceo, we believe on a temporary basis at least. what have heard from sources in the last 30 minutes or so, is there is an all hands meeting called for next wednesday.

not everyone within went -- twitter receive the invitation. there are teams that have not received it. we are led to believe from a internal memo, that there would be an all hands this friday, no word yet on what time that might be or if indeed it would go ahead. there is a meeting set for next wednesday the curiosity, that not everyone within the company has received the invite. jon: obviously know that this is elon musk's business we do not necessarily have to get constant updates on the road ahead, do you get the sense that his larger vision as they go through these very quick changes will be shared in the early days? ed: there is still an interest from wall street, in the sense that the debt financing of this deal, $13 billion was affronted by the banks. it still has to be sold to the street, the bankers have to go

to the asset managers, saying, come on, by of the debt. he is offering himself up as part of the marketing plan to sell that debt to asset managers. the other point i make on that, we will learn some about elon musk's business plan and what he plans to do a twitter through that process. we reported earlier in the week that the business plan shared with equity co. investors in the last three days include the idea of, whenever the company ends up being called going public in three to five years time. it gives you a sense of the exit strategy in a long-term way to return value to the new shareholders. there is a lot of -- at play. the size of the company, whatever happens if there is material layoffs or not, the company, the building behind me will change. katie: bloomberg's ed ludlow, thank you for the reporting, every time. moving from twitter in the

bigger picture with a rally we are seeing any stock market there is a lot of push and pull them tech stocks today, today apple is losing the charge. earlier we heard from dan morgan, he said investors need to be more selective going forward. >> the days of buying bank a stocks and everyone doing great is over with. obviously the apple report was better than the report we saw with alphabet. ibm had a good report last week. no one talks about that stock. it is up for the year when everything else is down. within tech you have to be careful come yet to pinpoint the names that can do extreme wellness environment. not everyone will do great. you cannot throw a dart at the stocks and expect them all to go up. jon: arguably we are seeing that selective nature of investors today with the stocks higher, amazon is still down. let's bring in a long time tech

watcher, equity researcher. how do you think, of investors that got used to making widespread bets on the biggest names in technology? >> tackett is in a -- tech is in a downdraft, is not popular right now, we have lost support, numbers are going lower, multiples are high. we have said tactically our positioning is stay inside, you can be long energy, other recessionary trades that are better for this environment and come back to tech selectively as things come off. i think clearly our strategist have had an underweight attack, our overall strategist continue to believe we are about to hit a recession in 23. i think we will see a low bit of a rally and relief near the end of the year. as q1 comes may the companies have not taken numbers low

enough -- many of the company's have not taken numbers low enough. they have not reset. you see the companies accelerate hiring or keep hiring really strong in the face of decelerating demand. it is fair to say we are in a time out for tech. we have to digest what is happened during the pandemic were tech was a leader. it is not the leader right now. it will come back. do not buy it. we are set if you look at the leading energy index, most of our work clients are long. the safer trades and energy, consumer, health care, there are better places to be in the short-term. i think it will come back. it will not come back until 23. we will see numbers resetting. katie: timeout protect, long energy a trade that is held pretty much all year, when talk about amazon specifically. if you look at the enlisted tracked by bloomberg that covers this stock there is only one

celebrating, acu among the buy s. the price target of 135, it feels pretty far away at this point. what will the market need to see from amazon does take the shares to the price target? >> yet to have 2 things, the retooled business stabilized. the cost on -- the cost supporting distribution, the cost above the demand. that probably happens early in the year we get a hold of that. number had -- numbers have come down for six quarters in a row in our model. the second is on aws. that is a cash cow business. under short-term duress, corporations need relief they feel economic tensions. they go back to amazon and say we need savings.

ultimately the business was weaker than we thought, still growing the backlog over 5% year-over-year these are incredible -- 85%, year-over-year these are incredibly numbers. they are looking for short-term relief because of the economy. they will come back. this is a never one cloud provider. it is an incredible -- number one cloud provider. this is a incredible story. the cloud business is powering profitability and excitement around the story. the retail business will come back at some point, sometime next year. we are trying to look forward and fully admit we are wrong in the short-term. i think we are right in the long term in the sense that they are getting their act together on the cost side. you look across all large cap tech, everyone is off on expenses. they are all offsides. they had to get control of expense.

that is starting to happen, hiring is slowing, we should reach equilibrium on this into early next year. i want to say tactically we have been very bearish. this will take some time, there is no rush to come back. ultimately, as you going to next year, things start to look a little better. barring the question of how long does the recession last. one or two quarters, four quarters, our economist or saint could last the bulk of the back cap -- are saying it could last the bulk of the back half of next year. katie: coming up we have all eyes on brazil, we will preview sunday's nailbiting run-up for president, we'll tell you what is at stake. that is next. this is bloomberg. ♪

katie: this is "bloomberg markets," i am katie with john, brazilian assets under pressure today with the much-anticipated president election sunday. joining us now is from that is a coanchor from bloomberg

daybreak: asia. put us -- put into context, how tight is the race? >> we are talking about a race that isn't and that. we have seen the polls, calling for lula to get pity 3% of the votes. -- 53% of the votes and jair bolsonaro trillion 47%. the -- trailing at 47%. they are trying to tweak representative samples to get this one right, this week jair bolsonaro momentum has been trading -- fading with recent gafs including a violent gun battle with one of his allies and police. we are watching the debate between the two candidates. jon: are there some characterizing this is a referendum on democracy? >> we have already seen president jair bolsonaro this

week attack the electoral authorities. for years he has tried to undermine the electronic voting system. there has been fears that if the margin is very close he would not concede defeat. we are watching, lakhdar -- watchdogs are signaling more disinformation on social media more attempts to bring about violence if this election is this -- is contested. we are watching for more signs of turmoil that could cost the brazilian economy $12 billion cording to bloomberg economics if we take into the account the market impact in the brazil rialto appreciation as well. katie: she is coanchor of bloomberg daybreak: asia come we have breaking news from bloomberg news, lack stone, apollo, kkr among the private -- blackstone come apollo, kkr

among the private equity firms facing justice department investigation. let's bring in the antitrust reporter, great reporting here, walk us through exactly what is being looked into. >> the antitrust laws forbid interlocking directorates. when a person sits on the board of multiple companies that compete in the same sector. the justice department is concerned that some of the private equity firms that have people representing the firm on the boards of several competing companies might be encouraging the companies pull their punches. do what is best for the industry as a whole instead of competing vigorously that would be good for consumers lowering prices. jon: blackstone, kkr, apollo declining to comment on your story. maybe you can walk us through the mechanics it is quite common for dealmakers to say on multiple boards.

>> it is pretty common. under the law, this law was passed in 1914. it has been sporadically ripped -- enforced. the last time they did it was the 2009, 2010 era where they post the google ceo to sit -- step down from apple. when companies compete against each other they do not want their directors to be the same. right? a lot of these firms say, maybe these companies do not compete directly. they are in the same sector, but they do not compete. the justice department is taking a look at this and is concerned that some sectors, technology and health care are among two of them, this has become to common. they need to take a look at it. jon: just to clarify, you are alluding to it, there are some

separate issues that are being reviewed by the justice department. this is a separate matter. >> this is not related to any particular merger. this is a civil investigation that is separate and looking broadly across the industry at potential overlaps. jon: great reporting, great to have you on this breaking news, leah nylund from the bloomberg team. blackstone, apollo, kkr among the private equity firms facing a just apartment investigation -- justice department investigation on boardroom influence. the s&p 500 on the session high up 2%. this is bloomberg. ♪

jon: this is "bloomberg markets ," i am john with katie

greifeld, we're just talking to sherry about the big develop men's in brazil the elections taking place as we can we want to get the story. she is the brazil -- he is the brazil analyst at the economist intelligence group and enjoys us now -- joins us now. how tight this race will ultimately be we see the markets on edge, what part of the economy, what industry would be watching most closely pending on who emerges victorious? >> firstly, hello john and katie, that you for having me. the race is really really tight. the polls have lula ahead at 2%, the markets will be very uncertain in the week to come. in terms of the markets, we are seeing a lot of movements right

now with other state owned enterprises. especially with the elections and clinical uncertainty right now. katie: in your view would be the most market friendly outcome that could transpire on sunday? >> right now, it would be, having a clear win by one candidate. we do not ink that is -- think that will be expected from any candidate we think a dispute will happen. we think that lula is expected to win, a disputed result is expect it from that. even if bolsonaro wins he is known to have a more pro-market administration government. he would have less turmoil with regards to a transition government, but that is unlikely given the current polls we

think. jon: we have about one minute left, the idea of the polarization, we talk about that in north america with election cycles, but it is very much present in brazil. >> absolute, the polarization, detentions, the mudslinging -- the tensions, the mudslinging, has gotten to a low point in brazil for elections. there is a lot of misleading information coming out of both sides. the electoral board had to intervene. which has raised concerns. specifically regarding lula --bolsonaro's campaign. we think with the election coming on sunday, things will dissipate. tensions will remain high over the coming years. the congress will be much more

-- will be more right-leaning year. katie: analyst at the economist intelligence, thank you for your time. that will do it for "bloomberg markets," today, this is bloomberg. ♪

just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.

>> now keep me up-to-date with news from around the world. i am mark crumpton. this is first word. a person familiar with the investigation says nancy pelosi was the intended target for the -- intruder who beat her husband in her home. the assailant is in custody, and confronted paul pelosi with a hammer and shouted where is nancy. he attacked him. the attempted attack highlights increased concern among lawmakers over risks to their safety. the treasury secretary says that growing political pressure on the fed