i'm abigail doolittle.ours "bloomberg best" weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a look at the top headlines. the final week of a volatile year for the global economy began with encouraging signals of a return to stability in china. >> china's economic performance improved in december with early indicators showing production in the world's second-largest economy accelerated as domestic demand stabilized and meanwhile, china's central bank has ordered lenders to adopt this loan pricing regime for all prices next year. what does the scrapping of the old benchmark mean when it comes to monetary policy? >> over the longer term, it means a more market led interest-rate system, which should be more flexible and less of the command economy style we have seen from the pboc in the recent decade. in the short-term, it might mean a bit of an interest rate cut for some borrowers, particularly those with floating rates. t

abigail doolittle has all the details. igail: there's a risk on muthu markets after the signing of that phase i trade deal between the u.s. and china -- risk on mood to markets after the signing of that phase one trade deal between the u.s. and china yesterday. russell 2000 joining in, up 1.3%. a bit of a move lower, take a look at the shanghai composite. during the asian session, chinese stocks not reacting favorably to the signing of that deal, but not a huge loss there. here in the u.s., it is risk on. let's use the imap in the bloomberg. all 11 sectors are higher. consumer staples and utilities near the bottom, among the defensive sectors. 1%, bouncing back from yesterday. consumer discretionary also up 0.7%. yesterday, after defining of that phase one trade deal come of the chip sector come a very sensitive to china via the supply chain, sold off of the lows. today reversing that, up 1.5%. we also had a move lower for soybeans, some of the other commodities. take a look at this two day chart of soybeans, down 2%. trade

i'm joined now by abaco doolittle. abigail about 0.5%, off of the highs of 2%, gaining 4% over the last three days, the best since late october. all of this on the increasing tensions in the middle east. global stocks down on fears that this could really escalate, but this is helping out defense contractors, raytheon and particular. investors and traders think there could be the dynamic that it could help their spending. we have citi making that case, and yuri and tim are -- and jury in temer making that case. you could actually make the case that it could go up because of these tensions. raytheon cells missile systems, space and airborne, and agree to defense systems. the reason this is really helping out raytheon, take a look at the revenue growth expected. it has grown since the beginning of 2018. we have the united technologies acquisition going in there, but it is sort of flatlining. investors saying perhaps this will help raytheon get revenues going a little bit. vonnie: in premarket, we had some big moves from these def

vonnie: abigail doolittle, thank you.ns around the world and admirers of all legendary athletes are mourning the loss of nba legend kobe bryant and thoughts go to the families of the other people who died on that fateful helicopter ride, including bryant's pierre-hugues herbert daughter gianna. bryant won five nba championships during his career with the lakers and began a second career as a filmmaker, author, and investor after his retirement. for more on his legacy, michael joins us now. michael, take us back to the early days of you reporting on basketball and what to kobe bryant mean at the time as a young man, clearly setting records all over the place. >> when i was back in detroit, i covered a lot of sports. i covered the detroit pistons when they won the nba championship. this was before kobe bryant came into the league. that was about six or seven years before that. and then all of a sudden, kobe bryant shows up on the scene, and he is playing for the lakers and is playing with shaquille o'neal and kareem abdul-j

thank you to abigail doolittle. now we want to go to san diego and michael mckee at the american economic association meeting. i will start. are they paying attention to this at all? michael: they are. obviously people are talking about it the way they do anywhere. the economists are all wondering what it might mean for global growth in the united states. i spoke with charlie evans a short time ago. he said it raises question marks about the economy but it is too early to know what kind of impact it will have. have to see how it plays out. said, but are up, he the u.s. economy is strong enough to withstand that because we use a lot less oil than we used to. they are much more concerned about the ism number. evan said it was quite a surprise to him in november. it goes up a little bit. he thought it was related to the gm strike, but that is over. now it does maybe suggest there is more weakness in the economy than the fed thought. they will look for other indicators to find out if there's anything that backs that up.

let's check markets more broadly now with abigail doolittle. se oil inventory reports adding to a neutral to risk off tone for the global financial markets. here in the u.s., we have the s&p 500 flipping between small higher,d losses, still but slipping between gains and losses. the area to focus on, the bloomberg commodity index down the most on a combined basis since december of 2018. that bearish oil report not helping, confirmed by the fact that we have investors going toward haven bonds. where a sense of risk off started off, the hang seng, open for the first day after the lunar new year, you see on the 24th, and then today trading down 2.7%. trading the worst day in about a week, but nonetheless, some reaction around that coronavirus, although something it is not as bad as expected. a big focus in the u.s., take a look at shares of apple, really popping higher. we also have l brands higher on the possibility of a thick tory a secret spin out. general electric at the highest level since 2014. finally, boeing up 2.4%. that investor call star

here's abigail doolittle. tock of the hour is the netherlands-based technology company that looks like they could be influenced by the coronavirus. for the quarter just reported, comp sales missed, with sales coming up 1.3% versus the estimate of 5.2%. the real area of weakness came in the form of ip, or intellectual property, royalties. in addition, it is worth noting that if the breakout of the coronavirus extends beyond the first quarter, it could dent the 2020 outlook relative to the company's personal care unit. another piece of this is the company working to complete its transition to sell their domestic appliance unit after having sold their tv, dvd and lighting units. health care is now 98% of their business, compared to just 50% in 2011. that transition is very much underway. finally, phillips has been trading at a real premium over the last year. we take a look at a chart over the last year, they are up as much is 42% versus the stoxx 600. health care sector in blue and the stoxx 600 and white. one qu

here's abigail doolittle. igail: we are seeing gains right around the world. 0.2%.p 500 up about in europe, the gains are larger. the stoxx 600 up about 0.9%. the asian session was relatively solid. the nikkei up about 0.5%. confirming it from a cross asset perspective, we have bonds trading lower with the 10 year yield climbing by about three basis points. the top sector in the u.s. right now is the communications services sector. that includes telephone and communication companies, but along with some of the big internet names, you see up about 0.4%, the faang index higher. alphabet up 1%. yesterday crossing that $1 trillion market cap mark, let's go into the bloomberg terminal and see the elite club that alphabet has joined. here is in yellow and white, both amazon and apple in that $1 trillion market cap area. alphabet climbing up there. a very elite club for the and interneth names. in the u.k., we had some movers to the upside. company,transportation up 5% as the eu overhang has been removed. it is all mo

here with the details, abigail doolittle. taking a look at rp and what may have been an inevitable event. shares are down sharply is one of the company's ships is being held off the coast of rome on fears that one passenger may have the coronavirus. today's drop is just a piece of a big move lower for carnival and other cruise ship operators on concerns around the coronavirus and the possibility it could slow demand for travel and tourism, and cruising in particular. carnival is down about 12% in january, heading to its worst month in almost a year. . the alleged sick patient is from macau. as for the bigger concern for the cruise ship operators, china is the third biggest source of cruisers, or about 3 million passengers a year, behind north america and western europe. if parts of china remain on lockdown and fewer people are traveling, it could really eat into the top and bottom lines of these cruise ship companies. relative to what history may say about all of this, the coronavirus is being compared to the sars breakout in

joining us now is abigail doolittle. record high another for these big tech companies.hat is driving the gains today. it is more of the momentum we saw at the end of 2019. some missed out on the fourth quarter rally because they did it. we have central banks supporting markets, putting liquidity into the system. saying it is not qe, others say it is qe. responding.cks speaking of momentum, we have amd, talking about today up 7%. put ins enough for it to its all-time high. at that chart, not really stability. what goes up, must come down. investors want in on this big tech rally. volatility, you look for stability in the fundamentals. we are approaching earnings season. basis,a year-over-year declined within the s&p 500. what are you hearing as earnings approach quickly? >> that is a good point. people are hoping the earnings recession we were in for 20 in the tech sector, that it could come to an end. the fourth quarter is still expected to decline. that was an area of outperformance. that is expected to show growth of 3% for the fourth quarter this year. is chips, down

but first, the markets with abigail doolittle in new york. it is risk off. abigail: it certainly is. we start with the asian session. the coronavirus reemerging in a big way. at this point, that is a be 500 is down 3/10 of 1% and the bigger decline, declining all week,d ow transports, off of the lows of the last four days. losing about 3%, which is an interesting fact given that the airlines in other companies within the index are affected by travel and it appears there could be a real slow down globally. in europe, the stoxx 600 is down 7/10 of 1%. and there is the shanghai composite down nearly 3%. so news around of the coronavirus has really reemerged. dow transport underperforming on the week, the worst four days in a couple months. here is an interesting chart. this is your to date. white, dow transports. in blue, the s&p 500. it was up three point 5%, leading the s&p 500, but this week take a look at the decline. dow transports lower. this could be a bearish tell on the s&p 500. finally, really confirming the risk off mood, take a look at the bloomberg

joining us is abigail doolittle. i do not whip -- i do not know where to start. abigail: i think traders are tired. very small moves to the downside. in a week where some were talking about the possibility we could see world war iii and then the middle east tensions diffused. so many stories this week. investors seem to be taking a low bit of a breather. volume is below average. we do have a bid for bonds. gold higher. there is a slight risk off town even though the stop declines are small. earlier the dow did go above 29,000? we do have hedging going on in the haven assets. if you take a look at what is happening with the vix, basically suppressed, but as is normal the vix curb going out, telling you investors think there could be volatility ahead. david: this is the point where you say what counts are earnings. next week we get bank earnings. abigail: bank earnings and then the week after that the tech earnings. it is interesting to see whether we can come out of that. with everett -- with tech driving everything, the nasdaq up for the fifth week in a row. it wi

abigail doolittle come over to you -- epochal doolittle, over to you -- abigail doolittle, over to youigail: take a look at the moves we have so far. investors want to see that china deal. 0.25%, the german dax down about 0.4%. we had strength in the asian session. the shanghai composite up 0.75%. sometimes that moves through to the european and u.s. markets. that is not happening. we could see a more bullish tone come about. the 10 year yield up three points. we had another selloff continuing, and that is oil. brent crude since the tensions with iran bubbled up, we initially see a bullish reaction , at one point above $70 a barrel. after those have diminished, plus week supply data in the u.s., crude oil down overall 3% since tensions began. turning to some of the automakers in the u.k. and europe, starting off with renault, down about 3% on the news that nissan is considering severing its alliance. beyondlyst says it is repair after the dysfunctional ties with carlos ghosn leaving. we also have aston martin down about 2% after a huge pop last friday on the possibility the to find fun

we are joined by abigail doolittle. abigail: shares are really plunging.hey put out a profit warning where adjusted earnings for the full year of 2019, their first full year as a publicly traded company, plunging from the year before by about 45%. they are expecting a range of routine -- of between 130 and 140 pounds, clearly going in the wrong direction. a number of factors here, including the overall downturn for cars, plus uncertainty around brexit, and you also have certain models that are doing less well. one bernstein analyst, it seems all analysts, actually come are pretty shocked by how bad these were. one analyst at bernstein saying it is shocking how much this story has unraveled since the ferrari,pposition to which has done quite well since it's 2015 or early 2016 ipo. for ari really taking off -- , aston martin off really in a slump. we can take a look at their bonds, and we see a bit of a plunge on the day. overall, you can see what a mess this is. they put out a disastrous earnings release. we have a bit of a recovery on some expectation that

joining us is abigail doolittle. they look reasonably good. how much is because of the usmca? abigail: not so much because of the usmca. that was priced in in december. the mexican peso is flat. markets doing what they have been doing. ,ruise control for this melt up new record highs for the s&p 500 . we finally have this trade deal signed. it feels a little more like a truce or a handshake. when you go beneath the surface, not a lot of substance. lots of questions. will the chinese by more than $30 billion worth of agricultural goods? tariffs $370 billion in the u.s. still imposing on chinese goods come off after the presidential election? a lot of uncertainty, but right now it is not worse than what we have had before. some earnings coming in good, too. david: bank earnings this week would not have encouraged investors. abigial: perhaps even encouraged. there is a macro commentary on the state of the consumer being strong. may be mixed messages around the consumer. for the most part, the bank earnings solid, strong kick off the earnings season suggesting maybe the earnings re

we turn to abigail doolittle. i think it is coronavirus. abigial: is absolutely coronavirus. big declines in the major averages. the worst days for the major averages since going back to october or august, depending on the average. oil is down for a fifth day in a row. january on pace to be the worst january since 1991. all of this is significant because we've been talking about stripping back whether it is headlines stairs or u.s. profit scares. right now it is probably more headlines stairs per stock, unlikely to affect the u.s. corporate profit outlook. the fact that you have oil down and demand for global resources, china being the largest user of natural resources, suggests investors are getting worried about the global economy. david: what about the sectors particularly hit like transports? abigial: transports down, you have the airlines in, some of those down more than 5%, american airlines down 6%. energy down for a sixth day in a row in sympathy with oil. we have a big confirmation from the haven bonds up for a fifth day in a row, the best trade for bonds going back

david: many thanks to abigail doolittle for that report on the market. we turn now to ritika gupta with bloomberg first word news. heika: president trump says will impose new sanctions on iran after a missile attack on american bases in iraq earlier today. speaking from the white house, the president said as long as he is in his office, iran will never be allowed to have a nuclear weapon. : iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world. no american or iraqi lives were lost. ritika: trump said the additional economic sanctions on iran will remain in place until i ran becomes less hostile to the u.s.. he also said he would ask nato to become more involved in the middle east. mitch mcconnell said he will launch president trump's impeachment trial on his terms. mcconnell said there'll be no haggling over procedure. he added "the house democrats turn is over. the trial is on abuse of power and obstruction of congress charges passed last month. it could begin as soon as this week if nancy

abigail doolittle, thank you so much for that. climate change is front and center in discussions here in davos this year, including how the world envisions using more renewable energy. joining is ignacio galan, ceo of iberdrola. president trump talked about environmental alarmists. how alarm should we be that he is adopting such an attitude? but we: he said that, are very proud that we have been contributing to a $35 billion investment in the country to america be efficient in energy. we are already investing heavily in renewables, as you know. heavilyalready invested in -- for integrating these energies into the system, and we are really proud. so saying that, i think the energy policy is dependent on the states. in each state, they have their own renewable portfolio targets. they are already generating options to distribute a certain percentage of electricity from renewable sources. haslinda: but it is important what the leaders say. in particular, and australia, we have prime minister morrison not supporting renewables. how con

we turned abigail doolittle for a check of the markets.arkets are moving, not necessarily in a good way. abigial: markets are in a selloff. we may be at a turning point around the coronavirus. we may be to the possibility or likely certainty based on your conversation with richard clarida and based on what goldman sachs is saying about u.s. gdp that it will affect the global economic growth. we have had a few airlines today saying they are not going to be flying to china for a couple of months. those are specific numbers. there are probably doctors helping them try to figure out the incubation period. .t will affect stocks delta,rican airlines or if they are shutting down service to the world's second-largest economy for a couple of months, that will affect the bottom line. david: we do not know how bad it is and how long it will go, but it is not getting better. abigial: right now it seems like it is only multiplying. uncertainty around the incubation. where is it in the united states , the degree it is beyond the cases that have been rep

here is abigail doolittle. i would guess maybe some of it had to do with travel and the coronavirus. abigial: is out -- that is absolutely the case. the things you want to separate is is this a headline share or will it affect the corporate profit outlook. what is the impact on the chinese economy? it seems likely there will be an impact. the question for the u.s. stock investors is could there be an impact on the u.s. economy? we do have a risk off tone, small losses for the major averages. the s&p 500 down .6%, heading to its worst weeks in september. that comes amidst a huge rally up. the bigger question is is this a pause or is at the start of something more corrective? david: what about transport, particularly the airlines? abigial: airlines today are flat to up, that has to do with jetblue reporting their quarter. on the week, airlines down in a big way. the dow transport down more than 2%. all of this has to do with as travel has clamped down, there will be fewer airline travelers. plus people who work p

thanks to abigail doolittle for that report. now it is time to turn to viviana hurtado who is here with first word news. viviana: we begin with the standoff for the impeachment trial between nancy pelosi and mitch mcconnell. bloomberg has learned over the two week holiday break negotiation happened on house-senate trial would be -- no negotiation happened on how the senate try would be handled. close he says she wants to see a fair process. the pentagon is prepared to deploy more troops in iraq. defense secretary mark esper saying iraq is now in turmoil after a u.s. response to a rocket attack led by a u.s. attack -- by an attack on the u.s. embassy in baghdad. must --er saying iran iraq must do more to confront iran backed kim jong-un -- according to north korea's news agency, he wants the u.s. to paper the pain suffered by the country because of economic sanctions. president trump responded by saying kim is a man of his word. in france ongoing strikes have reached a new milestone. they mark the 29th day, making them the longes

we turned to abigail doolittle. it does not look good. abigail says it is a risk feeling. yesterday was as well but under the surface. it is continuing today. we have strong earnings report by being overshadowed by the macro concerns about the prone a virus you were just talking about. here in the u.s., the s&p 500 down for the second day in a row. that is the second decline we have had in some time, friday into monday. right now on pace for the worst week since august. if you take a look at the asian indexes which have reopened from the lunar new year, we have the taiwan stock exchange. it's worst day since october of 2018. the hang seng down for the second day in a row. the worst two day stretch going back to february of 2018. concerns around the coronavirus and what the impact of the global economy will be hanging over the market. david: i suppose that is one of the biggest question, whether you are a ceo or government officials, there is so much uncertainty. is that reflected in the volatility? abigial: we do not have that much in volatility. there is reason to think t

for that we are turning to abigail doolittle. abigial: not a lot of reaction. it has been such a wild week with headlines, the trade deal finally being signed. all of the banks reporting earnings, traders are tired at this point. david: it seems like they are near all-time highs but they are not selling off. people could be taking the money off the table. they are not doing that yet. abigial: seems like a little bit of a pause. a tiny bit of consolidation. still gains, but all eyes on earnings season. now with the banks out of the way, it is all about technology. david: banks did rather well, led by j.p. morgan. technology is next. : technology is next. especially the chips. on a year on year basis their profits decline in the double digits, yet you have the chip index trading at more than 20 times forward pe, the highest in the decade on negative growth. something has to give. hopefully they will be able to put up the number. one positive place for tech, alphabet now in any elite club with apple and amazon. david: does that margin expansion or extra earnings?

amanda: there is an interesting chart we were looking at from abigail doolittle, showing copper versushe s&p five under. -- s&p 500. it looked like it was on the march up and it verged to the down side -- diverged to the downside, pre-coronavirus. is there some signal here about global growth? or is it sector specific? jason: the joke is obviously, dr. copper. it is about cycles and industrial recovery. we saw through the course of 2019, we saw numbers get worse globally and stabilize. copper iserhaps indicating that is overdone. looking at the individual names and sectors and investment management, we are focusing on, what does the progression look like? lasts, the value of the few years is extreme and through dividend stocks globally. that is more interesting to me than what is copper telling us. it is indicative of if we are recovering are not. shy: expect earnings on apple pay what should we see? jason: it is a job or not. it is expensive relative to itself. this is a quick statistic. at services grew in the mid to high teens year on year looking at the quarter advances. investors

increasing, we are looking at the overall financial market reaction to the situation so far with abigail doolittle. what stands out the most? abigail: probably the fact that there is not so much of a reaction, especially after iran retaliated for that airstrike by the u.s. killing the iranian general last week. the major averages in the u.s. are actually higher. europe is mainly higher. we did see a negative reaction initially in the asian session, but overall, not much of a reaction. that is true over the last four sessions since all of this started. the s&p 500 just about flat. gold, ahe big winners, haven assets. the futures up for the 11 stay in a row. the biggest winner, bitcoin, up about 9% over the last four days. basically apel market -- basically a bull market. guy: what is this doing in terms of market repositioning? you just told me a story of a kind of round-trip in terms of most of the major asset classes. is this changing anybody's perception about what 2020 is going to bring? is there a heightened sense of tension in built-in anymore medium-term perspective as you look out the optio

thanks to abigail doolittle in new york. now we will turn to mark crumpton for first word news. ,ark: as we have been reporting president trump sounding confident on the day his impeachment trial begins. the president's appearance at the world economic forum in davos, switzerland began with him calling the trial a hoax and disgraceful. his economic achievements and said he is sure the whole thing will work out fine. china is trying to ease concerns the country's trade deal with the united states will not hurt exporting nations. the vice premier told the economic forum that china's pledge to buy more from the u.s. will not squeeze out other imports. he also pledged to lower barriers for foreign investors, saying "china will open its door wider." justin trudeau's first order of business next week will be ratifying the new north american free trade agreement. the prime minister says his government will start the formal parliamentary process on monday. the deal has been passed in the u.s. senate and is awaiting the president's s

now, we want to go to abigail doolittle in new york. she has some market news. it doesn't have to do with the impeachment. abigail: we are looking at a risk off reaction to the cnn headline, they report that the cdc is expected to say a case of the coronovirus in china has been found in the u.s. that is a cnn report, an expectation of the cdc would say that. we have a bit of a risk off reaction. the s&p down by .25%. nonetheless, a down day. we are seeing a greater reaction -- of course, we always talk about the u.s. profit outlook. if this were to affect the u.s. corporate profit outlook, that is when you would see stocks selloff. we are seeing that in the russell 2000. a bit of an expectation that perhaps something worse could play out. .ight now down .8% the worst decline is for the dow transports, now down more than 2%. if this virus is spreading around the world and it is not known that that is the case in china right now -- six deaths, 291 cases -- but if there is a case reported by the cdc, it could crimp travel. headingsports right now for its worst day i

let's go to abigail doolittle. abigail: here in the u.s., the s&p 500 down slightly. stoxx 600 up. in the asian session, the shanghai composite down slightly. investors waiting for more qs out of the earning session -- more cues out of the earning session. where there is a greater sense of risk off, if we use the imap in the bloomberg terminal, we are going to see lots of red. 10 of the 11 s&p 500 sectors are down. the worst sector, energy, down 0.7%, even though oil is up slightly. 0.3%, andials up really helping out those banks, take a look at jp morgan and citigroup. jp morgan put up a very strong first quarter come up -- strong fourth quarter, beating across the board. citigroup also had a strong fic quarter. equities down a little bit, but the real laggard here is wells fargo. they missed the adjusted earnings estimate by more than 15%, putting up $0.93 a share, and litigation really wearing. delta airlines up nearly 5% over the last two days, today having its best day since april. they put up a very strong fourth quarter. andfuel cost helping them strong domesti

first, let's get a market check with abigail doolittle. abigail: the bulls are truly out on a global basis after yesterday's bit of a pullback. take a look at the green on this screen. the s&p up to a record high. that is true, too, for the russell 2000. in hong kong, the hang seng during the asian session really put up a nice recovery, up 1.3%. crude down 1.9%. overall, the bulls are out. this mood is reflected sector wide. if we use the imap in the bloomberg terminal, on the russell 1000, lots of green. the only down sector is energy, down 0.2%. in sympathy with oil, but all of the other sectors are higher. that is especially true for sectors.hier let's lift the lid on what is driving those. i want to start with consumer discretionary. tesla now up 4.8%. a market cap of greater than $1 billion since the may-june lows. may-june ibm up 1.4%. they put up a strong earnings report in terms of revenue, growing for the first time after five consecutive quarters. the red hat acquisition really paying off. netflix down 3%. missed thebscriber marke

time now for smart charts with abigail doolittle.formal look. >> so many great charts were brought to us by top technicians. there were a few that stood out in 2019, but in the later part of the year, here are three. this one comes from frank apillary on small caps, longer-term chart going back a decade. top, the small cap etf. on bottom, small cap relative to the s&p 500. cap the last decade, small has been underperforming within this channel. frank was pointing out the areas of bottoming in 2012, 24 team, buyinghat represented a opportunity on small caps. he is pointing out the buying opportunity that seems to have appeared at the end of 2019. frank thinks we will see a stockmarket rally in 2020. he thinks small cap is the more attractive place to put money. another chart that has stood out comes to us from bank of america merrill lynch. the small cap relative -- excuse me,nd long bond relative to small cap. he is making the point we could be in an area where the long bond is going to outperform small cap. if that occurred, it woul

now to markets with abigail doolittle. abigail: take a look at the s&p 500 here in the u.s..nvestors seem a lot of it relieved that tensions between the u.s. and iran have de-escalate it for now. perhaps now looking forward to the corporate profit outlook that will kick off next week. whether or not we can leave the earnings recession that the u.s. corporate profit outlook has been mired. by for a few quarters we have also gained in europe with the stoxx 600 higher. in london, the ftse 100 higher as well. apple the big gainer on the day. another all-time high over the last year. up 49%. last year, gaining just about that same amount. surprisingly the best year since 2019. upestors have been snapping tech shares after the buying appetite after the selloff of the great recession. the bulls very much in charge for tech. not so much for retail on the day. there is one winner here, but some big plungers. 18% bath & beyond down after putting up a bad third quarter. capital, analysts saying it is the worst they can remember since the great recession. had a toughcpenney time with the

abigail doolittle, over to you. abigail: you just stole the words out of my mouth.isk off is what we looking at this friday. the worst risk off day in about a month. take a look at the s&p 500 and the nasdaq in the u.s. this in response to the increasing geopolitical tensions smd that disappointing i manufacturing report. nonetheless, losses down 0.7%. the nasdaq down more than 1%. in europe, the dax down 1%. of course, one area of the markets popping, oil. it's take a look at it today chart of brent crude. a pop of 2.42%. tensions inising the middle east, fears that the supply picture could be disrupted. masking the risk off picture for stocks, haven assets rallying on the day. take a look at the 10-year yield in the u.s.. bund yield german down. one area of weakness solidifying the risk off picture, the transportation index and airline index. we will see big losses for the airline index, down 3.1%. unitedn airlines and falling on fears of rising oil, fears that the economy on a hurt. basis could be vonnie: thank you for that. still ahead, does the conflict with ir

abigail doolittle, over to you. abigail: it is an interesting day, guys.oronavirus, investors concerned what it could mean for the global markets. we see the s&p 500 near session lows, headed for the worst week since august. this is the first time we have seen this since early october. the bears are out, taking their chips off the table after the big rally last year. .8%.ow is also down the ftse in london is down sharply and the real standout, the emerging markets index, down 1.1 percent. on the week, down sharply, headed for its worst week in two years. that could go down more next week when the main market in shanghai opens monday. perhaps a bearish tell. also a bearish tell -- this is the year to date chart on the dow transport. up 3.7% leading the s&p 500, but asthe coronavirus fears, they emerged, the dow transports falling, now down on the year two .4%. fell, but it may have more work to do to the downside. most sectors are lower in the s&p 500. at the top, consumer discretionary being held up i amazon. utilities higher as rates and yields are fallin

it is time for smart charts with abigail doolittle. k, take neil look at two of today -- taking a look at two of today's biggest movers. abigail: looking at the shares of apple and amd. one going up, one going down. apple last year was incredible, up over 100%. it is hard to believe that one of the world's largest companies could be a double last year. what do you think is next? >> very successful breakout above that 230 level. right now, we basically hit the target we have been looking for on apple. our company has a buy rating on this. our analyst really likes the stock. technically, may need to breathe a little bit. ,hen i am looking at this chart there is a gap, the best case scenario, you work your way higher. perhaps you work your way higher into the upper to hundreds -- upper 200's. we have i divergence right here, right now. prior divergence is have triggered some interruption to the trend. they viable dip on apple. goes to about 275, 260. abigail: speaking of fading momentum, andy, last year's best stock, today down about 7% or

joining us now is abigail doolittle. really much of a reaction to the stories, but as we were talking before we went on air, it is all about earnings. there is a bit of a risk today. we don't quite have an all-time high for the s&p 500, but less than one point away. we do have an all-time high for that nasdaq, and bonds trading lower. the banks are one of the worst performing sectors today, up just slightly. investors are waiting to see what they do. david: you say it's all about the earnings. we did not have a good week for any of that. we will look at the banks to figure out whether it has turned around. >> a lot of pressure on jp morning -- morgan. they are expected to pose numbers moving in the right , but from a macro standpoint investors will probably be looking to see what jamie dimon says about the global economy, and can we come out of the earnings recession. tech be the week after some of those big names coming. the first big name is netflix. they had a rough 2019, so they have some work to do for investors to

abigail doolittle is here with market reaction and michael is in san diego where he is heading -- attendingn economic association meeting. we'll be interviewing very important people from the fed. let's talk about what happened with that attack. let's go to bill faries in washington. what do we know? bill: the u.s. has said president trump ordered this attack on the most senior iranian dilatory official, someone who has been deeply involved in iran's activities, not just in iraq but in places like lebanon and yemen. next -- it is a marke

scarlet: let's get to smart charts with abigail doolittle.s taking a look at that suggest the rally is set to continue. >> to do that with me is stephen suttmeier. thank you for joining us. today.etty remarkable the s&p 500 was down dramatically and then closing at an all-time high. it seems like all risk is not out of the market. but we have this reaction. your view of the s&p is pretty bullish. stephen: it seems like they only come out at night. [laughter] chart basically shows a daily chart moving average. we did achieve the triangle 3220 which is what we talked about. i like when things work. ist will keep things working if we can say about the 3200 level. level in hold that think it stays intact, and the s&p can plan. abigail: we are a bit above the 50 day. we are about 10% above the 200 day moving average. when that has happened in the past we see consolidation. what you think about that possibility? stephen: i look at the chart we show on the show a lot. sincebeen overbought december. as long as it is overbought and above -20 we grind

abigail doolittle, thank you.o remember the function gtv on bloomberg, it allows you to view the recent charge featured on bloomberg tv. catch-up on key analysis and save your favorite for future reference. this is bloomberg. ♪ tony: live from new york -- vonnie: live from new york, i am vonnie quinn. guy: and in london, i am guy johnson. let's check in with the first word news. >> the pentagon has prepared to deploy more troops in iraq to iraq.re troops in the defense secretary says iraq is in turmoil right now after an assault on the u.s. embassy compound in baghdad by a run back to -- by iran-backed militias. house speaker nancy pelosi and senate majority leader mitch mcconnell are locked in a standoff over president trump's impeachment trial. bloomberg has learned that over the holiday break there were no negotiations on how a senate trial would be handled. pelosi had delayed sending the senate the two articles of impeachment. she says she wants a fair process for the trial. china has temporarily halted a

for that we turn to abigail doolittle. abigial: today is about earnings. earlier today we had the major , thenes solidly higher when then he announcement was made about the world health organization having an emergency meeting tomorrow, stocks started to climb back up. it is little bit more risk off, we have the commodity complex down again. we have bonds trading higher. it seems investors do not know what to do with risk assets, but apple clearly higher. david: explain those things. people are buying bonds and buying stocks. abigial: it tells you investors are probably hedging. they do not want to miss the possibility that we melt up -- the melt up we saw in 2019 and 2020 could continue. on the other hand, if things get worse on a macro perspective they do not want to be exposed. copper is down for a 10th day in a row, the longest losing streak ever, going back to 1988, the worst streak since 2015. the divergence between copper and the s&p 500, both the risk assets. the s&p 500 affected by fed liquidity. copper, not so much. the connection to china has to

thanks to abigail doolittle. now we turn to mark crumpton with bloomberg first word news. mark: mike pompeo is accusing iran of trying to work to sabotage efforts to bring peace to afghanistan. pompeo spoke at state department briefing today. >> iran has refused to join the regional and international consensus for peace and is actively working to undermine the peace process by continuing its long global effort to support militant groups. mark: secretary pompeo also said general soleimani was not on a diplomatic mission in iraq before he was killed in a u.s. air strike. more than 50 people were killed today at more than 200 hurt after a stampede broke out at soleimani's funeral. the presidents of russia and syria met in damascus. it was vladimir putin's second visit to the country where his troops have been fighting alongside syrian government forces since 2015. russia has been a main backer of syrian president assad and has tipped the balance of power in his favor over the past four years, with government forces now in control in most of the country. in spain, the socialis

david: thank you to abigail doolittle for her check on the markets. is here with first word news. >> john bolton says he would testify in the senate positive impeachment trial if he is subpoenaed. he previously declined to participate in the house's probe, citing instructions from the trump administration directing him not to comply with congress's request for his testimony. bolton says he has had to resolve the serious competing issues as best he could. the head of nato is making its first public -- his first public comments about a u.s. air strike that killed a top iranian general. he spoke to reporters at an emergency meeting in brussels. >> all allies have expressed concern about your on's -- iran's destabilizing activities in the wider middle east region. we agree iran must never acquire a nuclear weapon. we share concern about iran's missile tests. we are united in condemning iran's support for different terrorist groups. added that the airstrike was a decision made by the united states and not by nato. he says nato has suspended its training mi

david: many thanks to abigail doolittle. now it is time to go to mark crumpton with first word news. mark: president trump's impeachment trial is expected to begin next week, but the president strategy remains unclear. he has sent conflicting signals about key aspects of the trial, including whether witnesses should testify. bloomberg has learned mr. trump is still considering whether to make additions to his defense team. the house is poised to vote wednesday on the impeachment managers and on the rising transmissible of the impeachment articles to the senate. the stage will be smaller but the stakes will be higher when the seventh democratic residential debate in des moines, iowa tonight. elizabethidates, warren, bernie sanders, joe buttigieg, tom steyer, and amy klobuchar will face off. during an appearance on bbc breakfast, the prime minister discussed the deal and last week to down by iran of ukrainian passenger plane. region -- the the important thing is that tensions in the region calm down. i was over the weekend tal

taylor: thank you on all things market with bloomberg's abigail doolittle.omcast officially unveiled its entry into the streaming universe. the service, dubbed peacock, is not launching until april. while it will feature new original content, it is going to rely heavily on hopes that viewers will continue to tune in and pony up for old favorites like the office, parks and recreation, and brooklyn 99. there will be three different pricing tiers ranking from free to $9.99 per month. to tell us how peacock will fare against the likes of netflix and disney plus, our analysts are joining us. how does peacock stand out in this crowded market? >> what comcast has said and telegraphed is that it is free to a lot of people. you see in the marketplace, netflix costs $10 to $13 depending on your package. apple service costs about five dollars. disney plus is seven dollars. from sixnywhere dollars to $10. the two that are coming up our hbo max and peacock. hbo max is loading as much programming as possible and charging a high price relative to the others. that is $15. p

let's check in with abigail doolittle and find out what is going on with those markets. ail: very small moved to the upside post the nonfarm payrolls report. a bit disappointing, but some may say it's goldilocks. the s&p 500 up 0.2%. crossingmoments ago above the 29,000 mark for the first time, now retreating slightly below it. it will be interesting to see what happens as friday progresses. in the u.k. and europe, we also have small gains at this point. the ftse 100 and the stoxx 600 up marginally. this comes on a below average time for the s&p 500. we see it is below the 20 day moving average at this point by about wealth percent, so we have these very small gains here in the u.s. on below average volume. where we have more action for the health care sector, if you take a look at the s&p 500 health index, it is up 18 points over the last year. , starting out with shares of their nejra -- of lilly. on a buy from eli eli lilly making a bid for the skin drug company. that stock already up 83% this year. shareholders will receive up to $93 per share in cash. received a bid

david: thanks so much to abigail doolittle. 28 we turn to a thought -- talk with senator tom carpenter of delaware. we ask what he thought about the briefing on general soleimani. that is next on "balance of power" on bloomberg television and radio. ♪ david: this is "balance of power" on bloomberg television and radio. congress has been demanding a briefing on the u.s. attack on general soleimani. yesterday they got that briefing , but some members, including mike lee and rand paul, were unsatisfied. we welcome senator tom carper, a democrat from delaware. you are at the briefing. where u.s. dissatisfied is what we heard from senator lee and senator pohl? -- and senator paul? sen. carper: one of the things i found troubling was the revising of history. the secretary of state radiance had indicated no interest in 40 years for diplomacy or negotiation. as it turns out, i thought we negotiated five years ago a deal on nuclear weapons. that was a big part of negotiation. one of the guys who was most against the deal to take away nuclear weapons from iran was solomonic -- was general soleim

joining us is abigail doolittle in new york. i am not sure it is what we talked about. are we not concerned about the virus? abigial: that is probably the bigger influence. the bulls are back in charge. today lots of green on the screen, record highs in the major averages, including the s&p 500, the nasdaq outperforming, up .5% due to tech being the best sector on the day. behind the tech strength, take a look at the philadelphia semiconductor index, outperforming, of 1.5%, this before texas instruments reports tonight, ticking off the chips reporting in this earnings season. an all-time high for the stocks. one interesting divergence is the dow transports. certainly not down. take a look at tesla over last few days. right on the open this morning, crossing the $100 billion market cap milestone. the shares up more than 200% since the lows last spring and over the last few days, up more than 15%. on the year, up more than 40%. it is incredible. the bulls in charge. as for other big drivers on the day, earnings. we see ibm up 3%. they put up a rare sales beat, the first t