from china, we should be expecting from china, we should be expecting from china, we should be expecting be expecting perhaps a bit of a slowdown. yeah, i think that is right, and whether you sort of leaves the government figures, it is on target for it end of year growth forecast, so it is not off—track. so do not think we should be panicking or the overly, those issues within the chinese economy are not new. we knew about those before, and they will continue for some time, as that economy transitions over the next coming years. this saw the bigger issue in away is the relations between china and the us, i think it is too early to predict what the impact of towers will be, that will be quarter one, or even quarter two or three next year, we start to see the impact of that. but the relationship between the two countries is definitely starting to have an impact around the world, when you look at the world trade organization, that does have an impact on so that is unhealthy. u nfortu nately, impact on so that is unhealthy. unfortunately, we're going to leave it there because i could talk a

there is some expectation that um!ted from y they remodeled these stores, trying to revamp here that will impact margins going forward. there are greater demands from chinese consumers for healthier products, some of the yum! china franchises are having to repositioned for that. yum! china shares were up in late trading in the u.s., partly as a result of this announcement of a share buyback program will toextended from $550 million $1.4 billion, giving investors some optimism. an interesting set of results an interesting set of results from baidu and yum! china at of new york. >> thank you very much. china leaders have pledged to avoid a flood of stimulus. threateningnt trump tariffs on all chinese imports come up beijing's patience is being put to the test. let's get started with the pmi numbers we are expect today. what impact could we see from the trade war? >> we expect to see in earnest pressure on manufacturers. we know it is smaller and medium-sized businesses that are export-oriented, they are starting to feel

we are expecting them to go higher and we would expect to see green.do see green for many of these markets. waiting to see the weekend bounceback so some more exposed to the trade story. the sectors beaten up in yesterday's session. let's look at some of the individual movers. upside, wehat to the have a mixed bag. lvmh is one of the luxury names i see. we are waiting for an opening price on caring. stellar performance from the gucci label. that's expected to push those shares considerably higher. their.ir is also in -- there. little do with climate of the amount of sunshine, dry weather not great for the hydra business. those, keep an eye on deutsche bank a little bit weaker. down by 1% or so. matt? matt: european markets opening higher, this follows asian stocks looking to gains with chinese stocks leading the way. appointed they were much stronger after the lunchtime break and faded a little bit of the good news is maybe a little less volatility there. equitys lift asia's main gauge which was pushing towards bear tore tory -- bear territory. .oining

that was expected. the equity part is the problem everybody else was successful in the last quarter but deutsche bank failed to boost equity sales revenue it materializes that the problems in investment banking are bigger than people had expected looking at other divisions, revenues are on the decline in the business and client unit, which they say is the big growth area, but still revenues are down here as well. as management is not doing great, dws, they are seeing net outflows as well in the last quarter. so the mix is not positive for the bank the management board is trying to kind of steer against that trend with a positive rhetoric whether this is enough going forward, we'll see back to you. >> annette, thank you very much so much. i know you'll talk to the cfo at 12:30 central european time. we look forward to watching and hearing some of his comments during that interview. i'm happy to say we're joined by the global head of financial research from pimco. thank you very much for being with us. it

above expect assignings. but the key to the market upwar momentum may nb revenue not earnings why because higher costsithout higher revenues will lead to margin erosion. and that can be a rally quill o ll are. you don't want that. but the revenue steadily improved as the economy strengthens. venue growthistorically averages 3% to 5% process. now estimates of 7% to 8% the next few quarters making a the coany as job he is year with revenue growth in the 7% or 8% nge an increase in costs of say, 2% for higher wages or interest rates, can be absorbed. last week's market action tells us that investorsre clearly worried about a sudden spurt in interest rates. bank of americayn merrill leaked the global fund manager survey saying the biggest fear for money managers is the trade war but rate hikes are a close second. the bottom line is this. if we continue to get restraining and steady revenue growth it means the economy is still in good shape a tax cuts are working. that should be help offset higher rate concerns. f

expectations were from 27.9 billion.ty and business processes, an increase of 19% to 9.8 billion. commercial revenue saw a growth of 36% in the quarter. revenue in intelligent cloud, an increase there as well and revenue in personal computing, that was an increase. and surface revenue up 14% kirk mccore says commercial cloud revenue jumped 47% to8.5 billion with increasing profitabili profitability. >>> yesterday was the worst day for the nasdaq since 2011. a lot of investors will watch amazon and alphabet. they both have their results out later today. elizabeth has a bit of a preview. what do investors hope to hear from these two giants. >> these are companies that have beat earnings big in the expectations are high. a few key factors to watch are growth in the within services division, the echo device sales, and grocery sales. on the alphabet front we're looking for revenues of $34 billion, earnings per share of $10.29 one of the biggest things there is advertising and search. the question is if that has been hit at al

what more can we expect?at people he appoints, what policies are in place, but signs are for the medium term it is good for brazilian financial markets. you look at the tentative positivity in asian markets so far. looks like they have saved of themselves to live for another day, but could they prevent the selling despite being a massive week for earnings and data. -- for data and the bank of japan as well? reporter: absolutely. we saw a very weak finish on wall street at the end of a week when people may have thought the markets had already fallen off to represent values for people am a doesn't seem to be the case yet. it has been a dreadful month. people are saying the way the tech market is crumbling in the united states is beginning to weemble the kind of selloff saw in tech at the beginning of the 2000's, so a gloomy outlook. in the background we see no progress between united states and china, one of the biggest risks were global growth. it is a pretty gloomy outlook. the fact that october is almost fin

much less than expected. coming up after the bell, we'll hear from snap. analysts expect the company to lose about 14 cents a share that's right in line with a year ago while revenue is expected to grow 36%. the big question is whether the company will continue last quarter's user declines. analysts projectsing that snapchat will lose another 2 million daily users to land at 186 million so that is the number to watch. >> it seems that there's been a real change in our twitter's viewed because just last quarter we also saw a slow down in monthly active users. we saw the shares down about 20% on the back of that, here we are, its a different story. >> twitter has really been judged on that monthly active user number. what's changed, i think, in the past quarter we've heard a lot of warnings from ceo jack dorsey about how they're focusing on cleaning up the platform and how that will entail losing a certain number of monthly active users but he stressed repeatedly on the call today that its all for the long-term

which can be combined with expected inflation to get a read on expectations. these rates have recently risen to a line -- to get in a line that it will remain close to the says goal of 2%. survey-based measures of an -- inflation are in line with the fed's inflation go. the labor market today's robust and inflation is close to 2% inflation goal. the economy as near as it has been in a decade to meeting over mandatee do a objectives, which suggests to me that monetary policy at this stage in economic expansion should be at sustaining growth and employment consistent with keeping inflation at or close to the 2% rate with system price stability. policyropriate focus of had been returned to unemployment to levels can stumble -- consists with the mandate. the risk that monetary policy must balance are now more symmetric and less skewed to the downside. -- the economy growing risk lee the labor market operating in the vicinity of full employment and inflation running close to 2% i said this to session as another step of removing the in nor -- in removing -- however

by noontime, 65 and 70 expected for the afternoon high and low 6 0d expect -- low 60s expected as wel into the dinner hour this is the bay, 74 in oakland. and some of the warmer locations hitting 80 in santa rosa. by tonight and tomorrow, the wind kick up in the hill dollars and that will lead to the elevated fire danger. we have advisories coming our way. we have details on that and the extendthe police are investigating a pair of shootings that happened just blocks from each other. the first one is 19th and telegraph near the fox theater. and the police were then called to 21st and franklin. >> reporter: i' 19th and telegraph where five people alone were shot early this morning. this is a very busy and popular area of oakland's uptown. west fox theater and the soiled dove which is this circus themed restaurant. this happened just hours after first friday events wrapped up. here's a picture that the oakland police department posted on the twitter account. the officers were called to 12:40 a.m. and they found five people injured, suffering from gunshot wound. the police taped off the

a look at the afternoon highs expected for today. we'll drop off 5 to 10 degrees, 56 for the afternoon high for san francisco today. and warm 80s for locations, 81 degrees in concord, 79 in santa rosa, pleasant weather ahead today. temperatures will hold steady, and we're warming it time for the weekend. in the meanwhile, lets say good morning to sal. >>> good morning, rosemary, we're off to a nice start when it comes to the morning commute. you can see on 580, you can see traffic on the 205 interchange is off to a nice start for the tracy supercommute. traffic is moving well all of the way to -- moving well all of the way to castro valley. it's looking good in both directions and at the bay bridge toll plaza it's very light. this is the time of day if you want to get the go back to the >>> we're talking about a fire at the peninsula, one injured. the fire started on lancaster boulevard near highway 1 in moss beach. when firefighters arrived on the scene, the home was engulfed in flames, one person had to be air lifted to the hospita

expect us to go from seven to the total number we expect is worth it.se geography by geography because the u.s. has not kept pace with regulation drop the world. some things will be offered in the u.s., but more things will be offered outside of the u.s.. over the next those year, we wil offer the ones worthy of being offered. julie: what does institutional demand look like? when you launched, coinbase was around but crypto was falling in value. is there a lot of demand out there because the retail demand has pulled back but i wonder what wall street another hedge funds are thinking about this phase. asiff: we get more and more demand from traditional wall street and institutions every day so the biggest impediment for most of them is they need a custodian. they need a qualified custodian that can safely store crypto. we have been doing it for longer than anyone else. we have the best track record in the industry which is why they can to us last year and ask if we can become a qualified custodian to purchase in this marketplace. that is the prerequisite

we expect that to impact.on our more bullish expectt, we don't oil demand peaking for the next decade. there's a threat impacting investment decisions, that we destroytory supply -- supply quicker than demand and its setting up for a potential supply crunch in the next decade. anna: thank you for joining us. we have the natural resources team and the future of transport at blackrock. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. morning dubai and this is "bloomberg daybreak: europe." the: i am an edwards from city of london. these are today's top stories. manus: the imf cuts its outlook turkeyal escalatin

we have taken that demand expectation. at the same time, we have reduced expectation.oks like the deficit will continue. as we move forward. francine: how much more can it increase by? svein: it is difficult to say. andave a full value chain we see there is strong demand. demand in the main markets. it depends on what is happening with the trade situation going forward. it could have a negative impact. francine: how do you see it, have you see tariffs developing forum here -- from your? svein: it is a concern. we're supporting free trade globally, but we see what has happened in the u.s. market with import duties of 10% of aluminum. that has created higher prices of aluminum. it depends on what is quick to be the next steps now. francine: what is your take on china, production and consumption? svein: consumption is continuing at the good level, on the production side there is a clear reduction on growth. we expected to percent-3% growth on production, but it is now %-3%, but it is now around 1%. francine: did you worry about china growth being significantly lower than

, % expected growth overme the sa quarter last year. s when you have those major contributors to th 500 earnings, you know, all kicking on the same tunethere, you do pretty well. >> but overall, mike, the overall growth rate of earnings when you put all the companies togeer, the percentage increase is starting to slow down from quarter to qua er to quarter, isn't it? >> indeed, bill. look, i mean, first of all, the s&p 500, in fact most companies in this country basically got a big boost from the tax reform package when theyed redhe effective -- the tax rate. so that boosted up earnings. and what will happen is it's just law of numbers. it's comparables become harder to basically beat those numbers. that said, even if earnings grow slow, the absolute amount of earnings continue to go up. so you have to feel pretty good about that. and i'll address the fact that, yeah, we may have h a peek in the last quarter. we had 25% earnings growth. this 22, 23, whatever it may be is a bit more modest and in the next quarter's down in the teens. tha

we expect it at 3:30 eastern. we expect brett kavanaugh to be confirmed. they're still making their final speeches on the senate floor. we're going to continue to monitor that. stay on top of this. much more on this historic vote about to get underway. also, the first lady taking her first solo international trip across africa. but not before sharing how she feels about her husband's twitter habits. >> i don't always agree what he tweets and i tell him that. i give him my honest opinion and honest advice. sometimes he listens and sometimes he doesn't. but i have my own voice. doesn't but i have my own voice. we saved hundreds on our car insurance when we switched to geico. this is how it made me feel. it was like that feeling when you're mowing the lawn on a sunny day... ...and without even trying, you end up with one last strip that's exactly the width of your mower. when you're done, it looks so good you post a picture on social media. and it gets 127 likes. geico. fifteen minutes could save you fifteen percent or more on car insurance. you might or join

transit center will be closed longer than expected. ( james ) developing now.of a missing east bay teen is found and now her ex-boyfriend is behind bars. ( james ) and we are tracking the rain in the bay area. john shrable is following the rainy morning forecast. ( darya ) good morning i'm darya folsom..( james ) and i'm james fletcher. lets start the morning with a check of weather and traffic... rainfall will be seen up and down the coast through the morning from the peninsula to the shore of marin, sonoma, and mendocino counties. isolated showers can be expected for the rest of the bay to carry us into the afternoon, evening and morning tomorrow. as far as temperatures no major hot spots. bay bridge wb 80 is less then 30 min from the maze to sf. ( darya ) a big story we are following this morning... a missing east bay teen has been found dead. 18-year-old mariah davis' body was found near lake chabot dam yesterday morning.. five days after she was reported missing. davis was last seen on surveillence video wednesday leaving la pinta restaurant in san leandro

here is is what we can expect. hurricane force winds extend well inland because it is to large and strong. 6 to 12 inches of rain. it means life threatening flash flooding. dangerous storm surge, destructive waves. i want to give everyone's heads up. it is also tropical storm vicente. >>> happening now san francisco computers facing another week of delays and detours. abc 7 news reporter is downtown live with the latest, amy. >> we are driving it for you right now so you can get a sense of what it is like. look at the street. this is howard. you can see it dead-ends into this conference. you have to make a turn here on third street. we are inching along. this is late morning. you can imagine what it is like at peak commute hours. they are trying to get used to these conference shutdowns. it doesn't mean they like them. another tech company's conference, another shutdown of howard street. drivers coming down howard being forced to turn onto 3rd street were not happy about it. >> it is definitely bad. it makes an imp

the company lost more satellite tv customers than expected during the summer. and it's over the top streaming video services added fewer subscribers compared to the same period a year ago causing profitsis to analyst estimates and the stock punished down 8% to $$30.36. >>> meanwhile revenue at general dahms fell short of expectations. and investors cppearedcerned about lower business jet deliveries. when asked about business with saudi arabia ceo on the earnings confethnce call said e has been no indication yet that it's $10 billion sale of armored vehicle has beenat cked by the controversy around jamaul khashoggi. generall dynamics f to 173.24. >>> rival northrup grumman topped expectations saying a rent acquisition and strength in the aerospace systems and mission systems units held results. the company also hiked earnings guidance for the year but sales forecast unchanged. shares fell 6% to 285.86. >>> after the bell ford reported earnings that beat analyst estimates by a penny. revenue was also stronger than expected but the company reported a lot of weakne

it is expected he will not attend.s no longer serving as a media partner in that future investment initiative. still, not everyone cutting the ties. some of these people are not so public facing in their wrongs. jodi: that's right. comeof the banks that have out and said their ceos are not going, like hsbc, credit suisse, some of their other bankers are going to be attending. there is a lot of money to be made in deals and contracts as saudi arabia tries to diversify , change its economy from this great dependence on oil. there is a lot of dealmaking. fore is a lot of respect royalty. if people do not show up, if they are able to support the clients there, that is -- the allies there, it is important to future deals. there will still be a congress. people will named not be coming, the top officials from companies, many of their other representatives will. haidi: thank you so much, jodi seniorer, bloomberg international editor. we continue to watch the saudi situation. meet one of the country's first female fund manager

we saw the banking stocks perform relatively well in yesterday's trade, possibly with the expectationf the yields rising and the steepening of the curve we could see the bank profitability rise what wi what will the term structure look like going forward? >> as i outlined, we expect moderately higher treasury yields and steeper curves that should be a favorable environment for financials in terms of specific numbers, we are at 3.20 on the ten-year, we expect 3.85 by the end of 2018 and move as high as 3.50 or 3.60 at the end of next year. as far as the curves, i have to tell you, one of the most recently asked questions by clients in the past couple of months, when will the u.s. curve going to invert? our response is we don't think it will. we think we're looking at the spread between twos and tens to get up to 35 basis points area, right now it's 22, 23. >> so, we will see that steepening effect happen one other point is the idea that there's an appropriate interest rate, a neutral rate that we talk about sometimes do you have a target or what do you think the ten-year note should be

expectation is we see expectate fourth quarter surprise on the upside. jon: does that mean that you think maybe the markets are underestimating that part of the story? >> i think that's exactly right. the government has been easing monetary policy, broadly cognizant we think of the underlying pressures to growth that result from policy decisions they have made to have hade debt, that these consequences of slower growth, particularly the private sector. the beer question is the implication of the trade war with the u.s. and is this uptick likely to last into 2019? threats, not are least of which, the massive amount of debt that the banks have. can china manage that? >> we think they can in the short-term but the stresses underlying in the financial system and the fiscal regime are starting to present themselves in significant ways. shoulde medium term we be expecting structurally slower growth from china. it's inevitable. vonnie: what would china be ok with, 6%? the question of what number they are willing to print in terms of headline did and what the re

it is expected that mr.pected the conservative candidate will win. >> we have seen the margin narrow, but he is 12 points ahead, and markets are priced in for him to win. carol: is there any chance of an upset? because the markets are expecting this win as well. >> it's always possible, we had it'sentful election cycle, very hard to overcome such a big margin. carol: let's bring in tony volpon, how you see this impacting brazil in the long-term, assuming he wins this election? a lot of it will depend on what their economic implementation of the proposals will be. one would expect for them to have a honeymoon. period. look forhe market will movement on pension reform, this is an issue that has been heavily debated in brazil for the last is co-years and everyone understands -- for the last two years, and everyone understands that the country's current interest is unsustainable and needs reform. and if brazil is to stabilize its fiscal situation, this has to be job one for the new administration. carol: the tog

what are we expecting this time around?have been reliable don'teliable, so we just know. he did better than expected in the first round. i think he did 10 points better than the polls were rejecting. show his league narrowing a little bit but will have to see on sunday what actually comes up, if it prompts more people to go vote or what the outcome is. right now the markets are taking him as being more market friendly. believe can we really what the expectations are? will he really be as freely sec missed to be? >> it seems to be. we're expecting a announcement, an announcement from the economic steam, maybe that will try to pass something in congress so they start off 2019 in a better position. i remember when i was having that conversation with he won tot president, get some of those things legislated through congress before he left. >> there's been a lot of mixed messages from his team. they arele said scrapping the pension reform because they don't like it. some reports have said maybe they will try to negotiate parts o

continue to beat expectations.rd when you need to focus on the fundamentals of the business. do we have confidence they understand the direction of the markets they are in, do we feel confident they have the right strategy going forward and do we feel they have made the right investments? in those cases i think we see good signs of that. likewise, alphabet, the parent company of google, reported a 37% rise in profits but it's been far from plain sailing for this firm. they have lots of stuff happening at the company and lots of costs as well. they have, and they continue to invest in new areas. they have the core advertising platform, the mainstay of the business. but they are investing heavily in other areas. google is no longerjust google, it's also alphabet. within the google brand you have other google businesses, specifically cloud and hardware that they have been investing heavily in because they see them as good markets going forward. any other bettws you have businesses like verily and waymo moving into an

that's the expectation. a final vote is expected in the afternoon. >> two key undecided senators, republican susan collins and democrat joe manchin say they will support him. >> "abc 7 news" reporter melanie woodrow is live in san francisco where she spoke with the sister-in-law of the bay area woman who first accused kavanaugh. >> who is this all sitting with dr. christine blasey ford, melanie? >> reporter: ama and raw ford mendler came to speak with us. she says she believes there is time for it to come out differently. as the senate prepares to vote on brett kavanaugh's nomination to the supreme, dr. christine blasey ford's sister-in-law hopes kavanaugh will withdraw his nomination. >> because me being a supreme court justice at this time in this country is not good for this country, and i care more about my country than i care about my own personal ambition and there's time for me maybe in the future, but right now is not the time. >> reporter: sandra ford mendler describes watching her sister-in-law who

expecting.g 3% also aboutuarter and 8% decline, much lower than what people are expecting. because of this, we think the earnings are probably peeking out of it. because it is very cheap valuation and it has continued to remain 20% with a four times value. the momentum is not there. nevertheless it is cheap. >> we have got to ask you about samsung versus apple. the lack of traction they are getting in handsets. this chart is samsung's market cap as a percentage of apples, which does keep falling. you have this structural slowdown when it comes to the cash cow. you still have the led screens. there is a broader slowdown in this handset market. is this a problem for samsung that they cannot rely on this as a future revenue of strong future strong revenue growth, i should say. >> it is probable all the smartphone makers, if you look at the numbers coming through, the decline of the volume for the first quarter 2017 was 8.7%. to first quarter declined 3.4. the second quarter declined 2.8. the only r

higher than expected.r market conditions and an unfavorable product mix resulting from customers trading down to less-expensive products. less forecast is about 25% than what analysts are looking for on the etf level. be tied to the weakness that we are seeing in the economic data with regards to residential investment. was anp number interesting residential investment number. this is marking the third straight quarterly decline. that hasn't happened since the tail end of the housing and financial crisis in 2008 and in 2009. a lot of competitors of mohawk like fortune brands, armstrong they are all selling off dramatically today. quite a bit of divergence here between what we are seeing and some of the enthusiasm for the people that build homes and the people that i shall supply the materials that go into those homes. sarah: this is a stock that is bucking the trend today. up 3.8%. almost as caroline was mentioned. -- mentioning. they give a more bullish forecast. we saw a number of analysts raising price

course of the quarter to 326 million. 4 million short of expectations. company expects another mid single digits million decline in the fourth quarter, daily active users grew 9%. jack dorsey says both daily and monthly user numbers were impacted, but the company's focus on cleaning up spam and fake accounts, saying improving the health of the platform is their top priority, saying it is key for the long term growth of twitter. guys, back over to you. >> julia, thank you. let's get to phil lebeau, he is looking at tesla and ford earnings phil, both those stocks moving higher >> they're moving higher start with tesla you knew tesla would report higher once it reported a profitable quarter and that's what's happened. in the last week, dramatic move in the last seven days average price target, up more than $10 today to $315 two important drivers. elon musk says there's no plans to raise capital and he believes the company can achieve sustained profitability. another auto stock getting a pop, ford up more than 5%, close to 6%. moved after q3 earnings came in

to kick in and the fog is expected to make a return. here's a look at the lunch hour, we'll be mostly sunny, outdoors, at the coastline, at the second part of the afternoon, it moves in and we'll be hugging the coast as we get to the second part of the day, especially at the coast, we'll feel the cooldown. here's a look at the afternoon highs, in pacifica, 54 degrees, 66 in san francisco, and the afternoon high in antioch will be 82. i'll look at the forecast, the full forecast coming up in a little bit. let's go to traffic with sal, good morning. >>> good morning, we're off to a nice start as you head out. you can look at the bay bridge, that traffic is light so far. if you're driving on 80 trying to get to it from fairfield and vallejo, it doesn't look too bad. there's a good start to that commute and continuing to hercules and certificate van day, lot there's a 17-minute drive between the carquinez bridge and the bay, lets go back to the desk. >>> survivors of last year's wildfires in the north bay held a ceremony in santa rosa remem

we hardly exist. >> locals expected a fierce storm but michael expect -- surpassed that expectation with winds reaching 155 miles an hour in just 2 miles short of a category five. >> we have not had cell phone service for a couple of days now. no way to connect with people other than walking around and trying to find people. this is unbelievable. this storm, catastrophic is not even the word for. >> reporter: 3500 members of florida's national guard have been called up to clean up the assist in recovery efforts. president trump plans to visit florida and see it for himself. mike tobin. "ktvu fox 2". >>> four sisters, three husbands and a brother-in-law were all laid to rest yesterday. they were on their way to a 30th birthday party when the limo they were in crash. the driver and pet -- passengers as well as two pedestrians were killed. >> it is a very emotional -- it's very tough for the community. my heart goes out to these families. it is heartbreaking to see tragedy like this strike where local area. >> the operator of the company is being charged with criminally negligent homicide l

you expect -- the renminbi, you should expect weakness in the sectors. renminbi to go below seven. then we saw the renminbi appreciate quite a bit, back to 6.3, 6.4. markets have expectations. of course, they behave a little different, especially on the currency side. investors should take this with a grain of salt and not have this day, negative sentiment towards the renminbi, where everybody expects it to go to 7.5, especially when you see these contrary and trades out there. haidi: if you look at domestic policy -- i don't want to say threats, but maybe uncertainties -- you see the relationship between what beijing does and, for example, what the biotech sector does. you saw that in tech in particular. what would you be watchful for sector wise? >> and a given sector can be exposed to any certain policy restrictions, which does hamper earnings growth. it is harder to predict because we don't know which sector the chinese government might want directly. but currently, the noise out there and weakness in the overall chinese economy, we expect to see tha

what are your expectations? mr.my main point is that we are at a good level of rates today for our environment today. we don't have to be projecting planned rate hikes at this point. we can react to data as it comes in, we can feel our way, see where we want to go. but i don't think it's a situation where we need to get a lot higher with policy rate in order to contain inflation, because there just isn't that much inflation pressure in the u.s. economy. phillips curve effects are very weak today compared to what they were in the past. ♪ ♪ matt: you are watching "bloomberg best." i am matt miller. let's resume our round up of the week's most important business stories with the bloomberg scoop involving regulatory changes in china. we got some interesting news on china, and that is the country is planning a major expansion of its too big to fail rule. bloomberg sources say beijing will increase the number of companies deemed systemically important to financial institutions. the concern is, if a country is doing this,

holiday sales are expected to grow in a strong economy.hild advocates warn parents to keep their kids from facebook. jane king is live at the nasdaq with those stories and more. ( jane )good morningholiday retail sales this november and december are expected to reach up to $720.9 billion, according to the national retail federation.holiday sales aren't expected to climb as much as they did in 2017, in what ended up being the best holiday season since the great recession.for some retailers, november and december can account for up to 40 percent of annual sales. meanwhile, there's a report that sears will close. more stores before the holiday shopping season, maybe even 2 days before christmas.business insider says the latest round reportedly involves at least six sears stores and five kmart stores.the company has closed several hundred stores in recent years as it tries to stabilize its finances amid deteriorating sales.a coalition of advocacy groups filed a complaint with the federal trade commission on saying that facebook's messenger kid

we would expect those businesses to diversify our revenue streams.enues are 100% transactional. the other businesses are more fee-based or aum-based. that will grow as part of overall revenue which gives us more stability and predictability to the revenue stream. selina: the company has been growing dramatically, expanding the business, so speaking of 2019, should be expect to see an ipo? asiff: there will not be an ipo anytime soon. we have so much to do. at some point, yes, we will go public, but that's not even close to the top of the list of things worried about. selina: what are the top priorities? asiff: just for my financial point of view, we want to diversify revenue streams to have a more predictable revenue. the p/e of an asset manager is much higher than the p/e of a broker which is much higher than the p/e of an exchange. we are a broker and custodian and exchange, but the fee structure at the moment is 100% transactional and that will morph as time goes. that's the first thing. julie: one thing you mentioned earlier this year, you launch

santa cruz 69 and 79 expected for san jose. low 80 in los gatos and 80 expected in gilroy. this is the extended forecast, bay area wednesday, not a lot of change happening, as we get into thursday, slightly warmer, upper 70s around the bay, low 80s expected inland and we'll bump it up a little more as we get into the bay area weekend, friday, saturday, sunday, up at the coast, we'll go 80 for the bay side communities, mid-80s expected inland. dave? >> the time is #:52, the car here, it's the most likely to help you from getting hurt during the crash. lets check if with gasia. good morning, what's coming up on mornings on 2. >>> when i join you in minutes, the internet search agent, google is taking itself out of the government contract. it's not going after the cloud computing contract with the bent gone. >>> and a new study that is a quarter or a third of hall foods that are gluten-free contain trace levels of gluten and why the risks appear to rise as the day goes on. we'll be right back. do you hear that? no. it's quiet. too quiet. xfinity home cameras. xfinity home give

better-than-expected third-quarter earnings. s&p 500 down 1.8 percent. 75% of s&p 500 companies have beaten on etf so far. then you have the likes of caterpillar down almost 10% adding to concerned that may even haveits may even have peaked. joining us now is gina martin adams. this kind of selling for the likes of caterpillar and 3m is it panic or warranted? panic.ink a lot of it is we mentioned in environment over the last month in which several tributes have been reached. of thoseare one triggers. expectations for margins have led to equity market corrections in 2011 as well as 2015. expectations for margins peaked again this summer and started to get downward momentum over the last month. i think that's showing up in the earnings releases. a lot of companies are guiding analysts to expect less market growth going forward. would say we were in a process of every pricing our earnings index.tion for the and that's contributing to overall weakness. which started about a month ago but is accelerating into earnings. it's got to be

today, a local 0utback is expected to give out free lunches.me, in the aftermath of a hurricane like this, where people in this community will be relying on anyone who can lend a helping hand. around 1,000 people from honduras have begun to walk to the united states, saying they need to escape their country's poverty and high levels of crime. they started out a day after the trump administration said it is again considering plans to separate migrant children from their parents if they try to cross into the united states from mexico. bill hayton reports now on the hondurans' epicjourney. dawn broke to the sound of hundreds of pairs of feet heading out of town. the organisers of this march had expected a few dozen people to join them in the city san pedro sula. almost 1000 turned up. all seeking a better life somewhere else, but worried about the risks of the journey north. translation: there are thousands of honduran men and women who had died in mexico. so we are we have come together, not to bring undocumented people into mexico, but to ask th

expectations were for $1.47. revenue up 33% from a year ago to 13t billion but ts slightly less than expected. you have volatility in the after hours. the stock initially fell and then moved higher. julia boorstin has more on ok face results. >>> the growth of facebook's user base is slowing. gt the social mediant is still fwroeing its profits faster than expected. facebook growing earnings per share by 11% instead of nearlyl 8% d analysts anticipated. facebook grou the daus by 9% from the year earlier while moll users grew 10% but down fromdi 11 guaran greeting of both groups a quarter ago. mark zuckerberg looking to shift the conversation away from the core service and slowdown to the apps. saying 2 billion people use one of the messaging servicesvery day. saying they are building the best messaging and stories and there are huge opportuniti in video. and commerce as well. >>> dow component coke on a health kick. higherales of sugar free sodas and vitamin water helped top itvenues and earnings estimates. and be

the public today will wa nt to public expect. to know, has austerity ended for schools, hospitals, the police force ? for schools, hospitals, the police force? if not, they will be disappointed. and this is part of the problem, from the moment the prime minister said austerity has ended, expectations have been ramped up. will there be enough there to make people believe that the difficult times, those cuts to public services, have come to an end? the prime estimate it very clear in her speech that this is the process by which we are ending austerity. and she made it clear there would be a spending review post brexit. but in this budget, what we see is we are making sure that the gains that we have made, the improvement to the economy, the millions ofjobs that are being created, the extra money that is going into the nhs, the extra money going into the nhs, the extra money going into the nhs, the extra money going into transport and road—building, that these things are secured. because if you look at the labour party's secured. be

still we don't expect a major impact process. quite frankly we were already hit with the earlier tariffs. we don't think a later change will have an gas chromatography are impact on us. it was baked in for us. >> cat like 3m plans to raise prices on the productst sells to make up for mier costs. analysts say economic growth is still solid but that investors are taking a trade relatedto ri further accounts. >> cat executed quite well. it's surprise to the upside as youft mentioned quarter quarter. that's not easy to do. cudos to them. i think tariffs are introducing uncertainty and they are managing through tha we understand the risk then we can sort of price that in better ank make the r comes down. >>ry similar sto for united technologist as the industrial conglomerate says it hikes prices across the portfolio as long as tariffs are in place. for niginly buss report, morgan brennan up in new york ock exchange. >>> he investors did have a few things to cheer, notably mcdonald's quarter. in fact thed fast fhain stock was the best

revenue of $56 billion up from last year but less than expected. and tt sent the stock sharply lower in h initial afterrs trading. has morea >> the main things investor focus on is amazon's outlook for th holiday quarter. usually a blockbuster run for the ecommerce giant, amazon's guidance failedo impress the street. brian osalsky said they anticipate a strong holiday ason and everything is ready to roll. analysts are getting nervous aboutg costs, particularly wage inflation as amazon raises minimum wage for workers in north america and as that faces potentially higher shipping costs from u.s. postal services. amazon's other hike rose cloud computing advertising and subscription services, they performed as analyst expected. and the company notched another quarter of record profit. noe focus is squarely on the holiday sales. for nightly business report, i'm dedra bosa, vancouver, canada. >>'s goog parent alphabet reported a rise in profit but slow growth in revenue. the company saw sales from advertisingisusiness revenue from the cloud unit also gre

this is what analysts were expecting. they were saying to expect strong new case sales growth.onger than the street was expecting. margins looking for a boost. a mystery the first half, revenue number, 31.7 3 billion pounds. running, 19 up and pounds a share. that is what you need to bid if you want to be part of the austin martin story. bid foring making a in 2014.rtin back austin martin has a market value of 21.3 billion pounds. pounds, james bond, popping the champagne cork. let me get to this market. you take your choice. 2189. it is on your bloomberg terminal. what they say, they go over two years. what am i talking about. press reports. are talking about the republic of coming out with new numbers. this is not an unsustainable number. the spread will compress. that is according to riley. overdone, above 3%. me leave you. extraordinary economy. comcast, $27 million in bonds coming to the market. there you go. take it away. futures, how are they looking? nejra: let me bring you more lines out of tesco. up 2.5%.s the interim dividend per share, 1.67 pence. what we are gettin

themehe growth divergence coming in, and as we expect, the fed interest rate expectations willbe takinge u.s. dollar strength, and this will provide a major driver for recovery of emerging-market asset going into 2019 in our opinion. haidi: are you worried about you weakness? -- yuan >> the chinese government and the pboc make it very clear that they have no intention to use the renminbi, the valuation as a tool to fight against trade war. the pboc have taken measures to stabilize it, the renminbi, so with introduction of the [indiscernible] for the renminbi we have already seen a stabilization of the currency over the past month. china's policy is going to provide the part of it currency as well. announcedas not just another 100 basis points. [indiscernible] this will provide liquidity for the economy, and we expect there would be further fiscal expansionary measures in the coming months in order to stabilize domestic growth amid the trade uncertainty. provide us theo ability -- the ability for economic growth, and we expect china gdp growth to stay resilient at 6.6% this year. economi

give us a sense of a we should expect.t would be different, as certainly just as kavanaugh got here in a different way? >> very much so. the saying is that every time you have a new justice, you get a new court. time.s even more so this a bitter divide over his nomination. we saw it last night when the justices went to the white house and listened to donald trump kavanaugh how brett had been wronged. everybody is going to have a lot relationshipips -- building to do. he will have to earn the trust of his colleagues and they will have to learn with him. chief justice john roberts will have to decide in the middle of the court, how quickly he wants to move it to the right. a surpriseley making announcement earlier this morning, the u.s. ambassador to the united nations announcing alongside president trump that she would leave her posed by the end of the year. why she is stepping down remains in question, but she was quick to roll out one theory. >> for all of you that a going to ask about 2020, i am not running for 2020. i c

president trump is expected in the damaged region tomorrow. in mexico beach, florida, fox news. >>> sears is expected to file for bankruptcy tonight after a plan that would allow them to operating through the holidays. sears due it pay back $143 million debt by tomorrow. the new york times is reporting the bankruptcy filing is expected to give southeaster a loan of $500 million to stay in business and pay employees. sears is planning planning to close 150 stores to restructure under u.s. bankruptcy protection. they will keep other stores open. the company stock fell more than 50% to 40 cents a share. >>> san francisco mayor will get more involved in the hotel workers strike. the mayor offered to meet with union leaders this week. thousands of workers are on strike in san francisco, oakland, san jose and other cities across the country. on friday 41 hotel workers in san francisco were cited and released for blocking the road during their demonstration. they are demanding livable wages so they don't have to work several jobs to make ends week. m

and what you can expect for the weekend. details on that coming up. >> let's go live to capitol hill. senator susan collins is announcing her decision on brett kavanaugh. >> that didn't even bother to fill in the judge's names on its prewritten press release. they simply wrote that they opposed donald trump's nomination of xx to the supreme court of the united states. a number of senators joined the race to announce their opposition. they were beaten to the punch by one of our colleagues who actually announced opposition before the nominees identity was even known. since that time we have seen special interest groups with their followers into a frenzy. by spreading misrepresentations and outright falsehoods. about judge kavanaugh's judicial record. over-the-top rhetoric, and distortions of his record and his testimony at his first hearing produced short-lived headlines, which although debunked hours leaders, continued to live on in this spread through social media. interest groups have also spent an unprecedented amount of d

a good job's report, we are expecting friday morning, do you think it's priced in, what -- expectations 190,000 jobs in october? >> i would like to see a report that's over 200, that's been a trend we have enjoyed in the past. fact that expectations are below 200, hey, you know, it's a great problem to have, i suppose but i would like to see a print above 200 if we can pull it off. maria: would you put money to work in the stock market today? >> no, not yet, you know, i would say, in fact, quite honestly, maria, i would use the november, december historical rally as probably a way to reduce risk because i'm starting to secret conditions tighten, we saw spreads widen, we see another credit card company starting to lower their -- their capacity to -- to take on new customers and lower credit limits so i just do start to see a little tightening of credit and you add, you know, high valuation, slowing economy and tightening credit, it's not a great formula for putting new money to work right now. maria: we will be watching, thanks so much. >> jack ablin, stay with us job's in america, speci