i am caroline hyde. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. the week began on a rare note of harmony for global trade. the u.s., mexico, and canada reached an agreement after months of negotiation to replace nafta. >> united states came to terms of canada late last night, meeting its midnight deadline and setting up a new nafta, has been renamed. it is the u.s., mexico, canada agreement. the president said it is historic and has taken care of the nasty problems he had. >> a lot of the focus has been on those problems and the last-minute negotiating snags over dispute resolution. those are some of the least important aspects of this treaty. the agreement modernizes the free trade agreement that came into effect in 1995 by incorporating things that did not exist. the internet. there is a provision in this that allows canadians to buy american products on the internet shipped over the border duty-f

i am caroline hyde. this is bloomberg best. your weekly review of the most important business news, analysis and interviews from around the world. the week began on a rare note of harmony for global trade. the u.s., mexico and canada reached an agreement after months of negotiation to replace a nafta. united states came to terms of canada late last night, meeting its midnight deadline and setting up a new nafta, has been renamed. it is the u.s., mexico, canada agreement. the president said it is historic and has taken care of the problems he had. >> a lot of the focus has been on those problems and the last-minute negotiating snags over dispute resolution. those are some of the least important aspects of this treaty. modernizes the free trade agreement that came into effect in 1995 by incorporating things that did not exist. there is a provision in this that allows canadians to buy american products on the internet shipped over the border duty-free up to 100 dollars in both cases. that is a big increase

>> i'm caroline hyde in for emily chang. this is bloomberg technology. .n the next hour, tech tumbles is tech losing its shine. the microsoft ceo joins privacy regulation after google became the latest to reveal a security flaw. our exclusive interview coming up. cryptocurrency suffered. coinbase is seeing a big drop in user volumes. we will see what is ahead. first, to the top story. theirtocks have seen longest losing streak of donald trump's presidency. their lowest level since late july falling as much as 4.1%. investors are searching for answers. thatimplest one may be tech as a whole is not special anymore. here to explain is sarah. >> if you think about the, this season, heading in, tech as a sector is expected to have 90% earnings growth. but the s&pl great, as a whole is except to -- expected to see 40% as a whole. tech does not have as much luster into earning season. caroline: does everyone could bring out 20% growth. also this is a question of whether the mighty fall. i'm looking at how much the beaten up stocks

i'm caroline hyde.s won antitrust clearance for its proposed takeover of ca, according to a filing early friday. bloomberg has also learned that that.s. is investigating their technology were the victims of a stock manipulation scheme. the probe has to do with a memo circulating in congress, given the pentagon's assessment of the security risks involved. broadcom says the memo was fake. for more, i want to bring in hammond. let's talk about the european commission. is it free reign for them now? >> it was expected. there is very little regulatory clearance -- we only need antitrust approval in japan which is a foregone illusion. backdrop ofng this potential stock manipulation. >> so perhaps no wonder we got a sharemarket relief and the spike higher on the expected eu news. let's dig into this memo. happened?ly everyone initially think that israel. >> to bracket even further, this is something that has been in the u.s. government before, with qualcomm citing national security. there has always been this

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this is bloomberg. ♪ caroline: live from bloomberg's headquarters on caroline hyde. bostick. caroline: -- romaine: i am romaine bostick. done.ne: the deal is ceo.s what new ceo has the market expecting to bounce. the nafta rebound3. wide president trump's new trade agreement is no economic revolution. lagarde speaks with us about trade, trump, and much more. >> general electric shook up naming itss morning new ceo and moving out john flannery after two years. we want to talk about what this means going forward. we have justin bergner. he was only there about 14 months. and this new ceo coming in, with some of the changes flannery put in place, is this going to be a change in the complete direction, or just a change of the figurehead? >> that is a great question. my view is the strategy will not change much under larry coker'-- larry culp's leadership. takenk the execution will a renewed focus on the urgency. larry hats experience from his time at -- as ceo and dana herne. different accountability and goals for that type of structure. joe: what can he learned from his

i'm caroline hyde >> i'm scarlet fu.ld be theanks big theme but it is giving way to big tex. >> it is still about tech and momentum. when you look at what got clobbered, it was the momentum hedge funds. when you look at what is bouncing back, it's the same ones. i have had my eyes on some of these hot stocks like adobe. they are all bouncing back nicely. the reversal of what we saw a early in the week. >> great timing for one company, and a plan. they went through with their ipo. >> amazing, and ipo in this market. >> now they can go forward and say it was a successful debut. you mentioned the software companies. way by farading the of 3.4% as a group right now. tech hardware is also doing well. netflix is up. on the flipside, if you look at the worst performers, you have the auto and components index. banks as well. >> they are widely thought to be good but not the story of what is driving the market today. next for the week, a totally different story. let's look at all the red on the screen. that is only one group fini

vonnie: thank you, caroline hyde.back at the sooner than you think conference not a bit. settle nbslion to claims according to the doj. the justice department talking about these residential and mortgage backed securities and saying the japanese bank has agreed to pay that much. it had been investigating all of the marketing sale and issuance of these securities in relation to number of misleading investors. the settlement was anticipated at the lower end. between 200 75 and $1 billion. its $280 million that nomura has agreed to play -- pay. this is bloomberg. ♪ guy: i'm guy johnson. vonnie: i'm vonnie quinn. this is bloomberg markets. guy: time for futures in focus. is fluctuating ahead of key inventory tomorrow. let's go to dan deming joining us from cme. which is the bigger factor in the crude market right now that of the inventory data or the story surrounding saudi arabia? >> in the short term the story surrounding saudi arabia. amounts certainly a fair of attention there. it's going to be a dynamic in the market

this is bloomberg. ♪ ♪ >> i am caroline hyde in new york in for emily chang.is set to be the largest ipo ever. plus, u.s. authorities have an investigation into the broadcom deal. they wonder if the company is a stock market manipulation target. alphabet share stocks --

in london from bloomberg world headquarters, i'm caroline hyde. and i'm scarlet fu this is bloomberg markets: the close. caroline: the stock selloff intensifies as the russell increases with higher rates. the hiring slowed in september but unemployment fell to a 80 year low. -- elon musk masses out lashes out at the sec and leads to an attack on short-sellers. all this and more, coming up. scarlet: let's get a check on the markets, with stocks and bonds selling off. the s&p 500 at a one-month low, set to fall for a second straight week, the first back-to-back weekly decline since late june, and not just related to the u.s.. you have emerging market and developed market stocks index off byd the 8/10 of 1%. the 10 year yield moves higher, -- 3.24% at the moment, and technology getting hit, off 1.5%. let's jump into this with our market reporters. and a, what are you watching? emma: i have to start with the tech slump in u.s. equities deepening for the second day. i'm looking at the imap function for the s&p 500 and tech is the worst performing secto

nadella sat down with caroline hyde for an extended interview wednesday. they spoke about the race for the pentagon deal, artificial intelligence, and a topic on everyone's mind, data privacy. satya: microsoft, all of our existence, we have had the department of defense as a customer and many other federal agencies. tomorrow, we have our government summit. we will talk about everything we are doing from the department of labor to the department of agriculture, fema, and veteran affairs and so on. we are investing in bringing cloud technology and our edge technology, which is more and more relevant and more taxpayer dollars being spent well so that we can get more efficiency out of the i.t. infrastructure and -- that needs to power these institutions. we are very focused on making sure we bring the best technology and compete in these contracts that get put out for competitive bids. caroline: with a focus on security, which must be front of mind when you are serving anything federally, serving the government, how much do you think there is a focus at the mo

i am caroline hyde. scarlet: i am scarlet fu. we are bringing in joe weisenthal.it is the theme of the week. this brutal market overall. have beenmebuilders one of the worst sectors overall. outperforming itv. etf's are in the green. that is major outperformance. when you look at things like sector rotation and tech continuing to get crammed. this is interesting. scarlet: they are like an early warning signal for some of the bigger economic systems. maybe because they crashed and came back, this could provide hope. >> they remain a warning signal. in terms of the gdp numbers. >> residential investments are not good. to the extent that interest rates are having an effect, that is definitely an important component. scarlet: when you look at markets, with eight minutes to go before the closing bell, the dow is not as lopsided. there are a couple of best performance here. they are actually gaining. caroline: that is one of the outperformance. tpoerfor -- outperformers. scarlet: this is home depot, cisco, american health, all down by 2%. >> that is one to watch. this i

ceo: that was microsoft's speaking to caroline hyde with bloomberg. back to the stock selloff, having gone global. tech and the nasdaq down by 4% in yesterday's session. shanghai composite, down by more than 5% and now in the european session, interesting to see the european moves have been cushioned by a lack of exposure to technology stocks. favoray be playing in the of european assets this morning, but still, selloffs of more than 1% across major markets in europe. let's get to our next guest, who is here to talk about etf's. they are becoming more liquid saidding -- nearly 92% funds are at least as liquid as they were three years ago. let's talk about what is driving growth in and out of etf's. guest is the head of institutional sales and trading for europe at jane street. headline,come to a european institutions are prioritizing competitive pricing to a greater degree than anywhere else. european investors are focused on the price of accessing etf's as more important than elsewhere. is that because of regulation? what is going on? >> thank you fo

. ♪ caroline: live from the bloomberg world headquarters in new york, i'm caroline hyde. maine: and i'm romaine bostick. joe weisenthal is off today. caroline: a pretty flat day but the dow jones finished in the green. romaine: the question is "what'd you miss?" caroline: caught between a rock and a hard place, turbulence and economic slowdown adding to the china trade problems with the trump administration. the financial world grapples with the growing outrage of jamal khashoggi. holiday is having to catch a break as the eu commission was a slow on the government spending plan. trump has just been speaking about the showdown with saudi arabia. he says the country has been a great ally, but sanctions could be considered over the killing of jamal khashoggi. all this as they struggle to respond to the mounting crisis. with --now how's the social impact coming when we look at saudi arabia? >> it is an awkward time for this to be happening. we think maybe because the beginning of the year, he sent this letter to executives of public companies saying you need to consider the so

. ♪ caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. maine: romaine: romaine: i'm romaine bostick and joe weisenthal is off today. caroline: tech is under fire. romaine: the question is "what'd you miss?" caroline: it is not all fun and games. netflix overshadowed by activision's disappointing color duty. weakness coming from the east. china as trade tensions between the u.s. and china. and betting on going slow. the u.k. and that you are hoping taking longer to forge the deal will and the brexit deadline. probably one of the biggest development and markets over the past couple of weeks has been the breakdown of the correlation between stocks and interest rates. here to talk more about that is and has the fed gone loco here? [laughter] [laughter] >> when i talk to people from my article in the magazine, a lot of people set my agreed with the president. they agree to to the extent that interest rates are affecting the stock market. they disagreed a fed is overreacting. probably do need higher interest rates at this point. the interesting

i am caroline hyde. u.s. stock market managed to stay in the green. p 500 and the dow jones in the red. joe: "what'd you miss?" caroline: closing marks up with the bond rallying. the yield retreats for multiyear's high -- multiyear highs. president trump said the u.s. does not have to move as fast on rates. the imf is citing trade tensions as a cuts it forecast -- as it cut its forecast for the first time in years. and what canadian arm is looking into the possibility of selling canadian-based rocks -- products. >> yields have paired some of the gains today, that we are still back above the levels we saw earlier this year. we will bring in brian chappatta, a bloomberg opinion and a senior economics advisor. let's start with brian. we saw this pullback in yields, but when you look at the volatility in some of the measures in the market, it seems to imply this rise in yields will continue. brian: i would debate you on that. an interesting day because you saw yields rise across the developed markets and treasuries saw a relief rally. the treasury market m

. ♪ caroline: live from the world headquarters in new york, i am caroline hyde. maine: i am romaine bostick. joe: and i am joe weisenthal in washington. caroline: stocks closing not off of the highs. a new record high for the dow jones industrial average. joe: "what'd you miss?" caroline: taxing times. -- talks trump plans about his finances calling the report a hit piece. raised treasury stakes. investors bet on the world's biggest economy. sticking on the yield the scene, plenty on powell. a have him speaking at particular event today. he is happy with the economy is. inflation is right at the 2% goal so says the fed chair. these are remarkable economic circumstances and he said we are not worried about wage increases driving inflation anytime soon. also talking about the -- talking about a curve. joe: meanwhile, the tax man published the results of a long-term investigation into the source of president trump's wealth. the times claims tax evasion. for more on the story, laura and the report to that covers president trump's real estate information. if investigat

caroline hyde and scarlet fu caught up with him to see what changed.n musk has made such a sideshow of himself that people start to forget about the underlying business. all the headlines are about he does this and he does that. then you read about the car did as a's -- car. as a short seller, i checked my thesis. all, my god, this car is dominating and the model numeral asked -- and the model s is dominating. but can they make money? that, all these years, i didn't really understand the tesla story. is still a lot of factors in execution, but i think being short going into this quarter, knowing he made earnings a week earlier, on top of ford's earnings, and knowing that the company is hitting stride with production of the model 3, the short interest, that is just wrong. the october 28 earnings is a positive sign. where do we go in terms of capital needs for tesla? there is always a worry they need to raise more money. are you not worried about that anymore? hours?ours, 27 see if they generate free cash flow. for years, i doubted muck. -- musk. there a

david: that was the ceo of microsoft in an exclusive chat with caroline hyde.e: let's do a quick check of business flash headlines. bloomberg is told that tesla is close to acquiring land in shanghai for the first production facility outside the u.s. the decision by the local government could come this month. tesla reached initial agreement with local authorities back in july. david: netflix shares fell the most since july of 2016, finishing more than 8% down. the plunge came as at&t's warner mediaset it will be launching a better streaming service coming fourth quarter next year.the new product will be devoted to entertainment , and a direct challenge to netflix. a disney streaming service is also planned for 2019. yvonne: the american express gold card is getting a major upgrade. but bigger parks, they higher fee. it's the latest bid by amex to retain members and attack new ones in the face of rising competition. david: let's get a sense of where we are in on the markets. hong kong is the biggest mover. substantial losses across this big percentage. yvonne: t

>> i am caroline hyde in new york in four emily chang. this is "bloomberg technology." in the next hour, softbank is set to be the largest ipo ever. authorities have an investigation into the broadcom deal. they wonder if the company is a stock market manipulation target. stocks --hare first to the top story, u.s. stocks give backings friday following a strong early ra lly in the midst of using trade tensions. the index rose the most since may, however, other technology giants have collectively lost $329 billion of stock market value at the beginning of this month. for more, let's bring in a bloomberg opinion asked. opinionist.sked -- what has gotten china so spooked? faq configure poison. it is the same issues we have seen in tech that the rest of the u.s. market worries about. they were about stock valuations for these growth dependent tech companies like netflix, amazon. we see in the chip sector, the tariff worries are where that is starting tstarting to be help -. that is linked to the stories of hardware hacking to. we get a bit more insight into this. particularl

emily: that was the sofi ceo there with caroline hyde in new york.rosoft's cofounder passed away monday at the age of 65 after battling lymphoma. he founded the iconic company and he went on to be a philanthropist, real estate owner, and a sports team owner. he left behind a league you see -- legacy of ai as well. i spoke to someone about his contributions. >> i'm deeply saddened because i think he was one of the giants in the tech industry. his partnership with bill and what microsoft did was tremendous. after microsoft, he went on into interval research and his institute for ai, both of which had a lot of friends and i'm saddened by that. >> over the values he was committed to? >> it felt like it was about openness and sharing in the not -- sharing and not about building an empire. he did it quietly. it is not like he was beating his chest and telling the world what a great person he was. he felt this was the right thing to do and he hired great people on a great path, and hopefully they will be able to continue. emily: paul allen was 65 years old.

. ♪ caroline: live from bloomberg world headquarters, i am caroline hyde. ares coming off their lows. we close in the red. joe: the question is, what did you miss? caroline: crowning a new emerging-market champion. wild swings amid u.s. stocks. oil in the geopolitical crosshairs. as saudi arabia pledged to produce as much as it can. and hot off the boil, a disappointing debut for aurora. shares of the cannabis company fell 11%. it is tracking down further. 2018 has been a punishing year for emerging markets, and relative to the rest of the world, e.m. stocks have been generally bearish the last seven years. but cheap valuations could get investors back into the space. john, seniorn editor for markets. john: good to be here. joe: in the past, the case for investing in emerging markets was kind of an optimistic story. the role of the new economy and all of that stuff. now it is like, it is looking cheap area john: you could dress it up and make it sound a little better than that. it is about value rather than growth, if you want to make it sound technical. we

. ♪ >> i'm caroline hyde in for emily chang.berg technology. .n the next hour, tech tumbles is tech losing its shine. the microsoft ceo joins privacy regulation after google became the latest to reveal a security flaw. our exclusive interview coming up. cryptocurrency suffered. coinbase is se b

caroline: i'm caroline hyde. romaine: romaine bostick. joe: i'm joe weisenhall. "what'd you is miss." caroline: among the biggest losers dropping down the pot sector. glaring the brexit red line, teresa may trying to soften the after a xit the e.u. weekend of protests. and betting on the big names, lifted the nasdaq ahead of a busy week. for more now on our top story, less than a week after canada historic step forward legalizing marijuana nationwide, pot stocks having the worst record.on the biggest pot e.t.f. fell 11%, the biggest drop on record. christine joins us from toronto. christine, any real catalyst for this? catalyst at all. this may be a classic example of buy the rumor, sell the news or case, buy legalization, sell post-legalization here in canada. of course, the broader market weak as well and so enerally speaking when you see stocks that has run up as much stocks,rhyped as the pot they're bound to fall disproportionate when the market turns. that is what we're seeing today. e.t.f.s posting their worst on record. stocks falling 11, 12, 15% so pretty

satya nadella speaking to caroline hyde. we will bring you more highlights today and tomorrow.ts a lot today is starting in asia. let's bring in shery ahn who will carry us forward. what do you expect asia's reaction will be? shery: asia stocks ended flat after seven sessions of losses and now we see this in the u.s. -- dips in the u.s. market. joe: flat is the new rebound. shery: [laughter] that is so true. it is completely flat, but that was good news. the shanghai composite rebounded in last two sessions. even when we had the strength of beenapanese yen which has stronger against the u.s. dollar for the last five sessions, which would usually take a hit on japanese stock market, they didn't yesterday. they rose. it is great having these new numbers and data out of the japanese economy showing that core machine orders were a leading indicator of. when it comes to --indicator of capx. when it comes to that, we expected to fall. romaine: the biggest loser in the s&p 500 was tiffany. we get news out of china that they are bringing more -- they are being more cautious about what

. ♪ ♪ >> i am caroline hyde in new york in four emily chang. this is "bloomberg technology."oftbank is set to be the largest ipo ever. authorities have an investigation into the broadcom deal. they wonder if the company is a stock market manipulation target. alphabet share

bloomberg's caroline hyde set down with the ceo to talk about the launch and the future of 5g.any use cases. fiber intohaving their home, we have wireless. it is a revolution what they can do with wireless. we announced two weeks ago that you can order it, and today we will make the first customers in the world get 5g. it is just an exciting time for us. >> why is it revolutionary right here, right now? to many, the internet of things and the application of 5g doesn't become a reality until 2019. >> many things are happening in solutions,ise we as consumers we will get smartphones in 2019, which will be a new experience. there are so many facets of 5g. there are two things you can trade on. now you have latency that is super low. we as consumers we willyou havt can be extended for a long time. there are so many things you can do with it. we think this is a new market where we can address our customers. >> how many signed up? >> we had massive interest. it is only four cities, but we had so many people coming in and checking if there is a code is included. we are starting small.

this week, caroline hyde sat down for an exclusive conversation with microsoft ceo satya nadella.e many business leaders, he is concerned about global trade tensions and he says multinational companies must work to empower consumers around the world and gain their trust. satya: i think about people and the institutions people build to outlast them. those are the key things we think about when we say empowerment. being an american company, i always say that we are a multinational company that is an american company. we are fundamentally dependent on and proud of the american values and trust in american institutions and values that the world has. clearly, that has served us well and today, it serves as well. our form of government, our form of democracy, with all of the debate we have, our ability to be able to set an example for what is a place where a lot of people of diverse backgrounds can come together, have a debate, and move and make progress. i think is whatmakes america unique and us being born in that culture is what gives us our credibility. of course, we can't take any

taylor: in an exclusive interview with caroline hyde, satya nadella reveals how microsoft is protectingttacks. satya: when it comes to operations security, software supply chain, it is all about every day being in practicing. in that case, we are confident we had no exposure. but we are constantly, we have a lot of people dedicated to it, a lot of technology dedicated to it,, a lot of rigor and process dedicated. caroline: do you think the legislative agenda is where it should be? regulation is where it needs to be when it comes to privacy of individual data and when it comes to security of company data? satya: we are already living in a world where, for example, i think the secular movement allowing individual data is that we should think of privacy as a human right. gdpr legislates that. we have done a lot of work implementing that into our products. we have taken some of the rights from gdpr globally. i think it is something the united states will look at. we know california has looked at it. we hope there will be more of a national privacy law, because we don't want increased costs

caroline hyde and scarlet fu caught up with left and asked what changed. >> elon musk has made such a sideshow of himself that people started to forget about the underlying business. all the headlines are about how thatmusk said this and then you read about the car. , as a short seller i am always rechecking my thesis. a few weeks ago i was short. a few weeks ago, i was looking and i am thinking this car is dominating. the model s is dominating. they are completely smoking the competition. can they make money? i started to go deeper. and i realized of that for all these years i didn't really understand the type of story. musk is uber tesla bull, but i think the short going into this quarter, knowing that he made earnings a week earlier right on top of ford's earnings, and knowing the company is finally hitting stride with production of model 3. i see the short interest and i am like, oh no, that is wrong. >> so using the new date for earnings is a positive sign. where are they going for capital needs for tesla? there is always a worry that they may have to up supplies. are you not wor

. ♪ caroline: live from bloomberg's world headquarters in new york, i am caroline hyde. re's a snapshot of how stocks closed. significantly lower and it seems only utilities outperformed. joe: "what'd you miss?" caroline: the jobs report is sparking more selling and treasuries. the latest read of the labor market has speculation of the fed raising rates for a fourth time. brett kavanaugh's nomination hangs in the balance. and, the man without an economic plan. why investors are embracing brazil's right-wing strong manned which could be the country's most important presidential election. it is friday so it must be jobs day. to a seven-day high on speculation that the latest data could clear the path for highest interest rates. we have our reporter on this. you think technicals could drive higher? >> absolutely. in the last few days, there were key breaks. a 30 yeare number is breaking at three and a quarter percent. ten-year treasury is more of a benchmark and there's this wedge that is unlikely to be resolved until we had the 340 area. it is not certain and subject to gre

. ♪ caroline: this is bloomberg markets and i am caroline hyde.we're seeing reds across but the bigger theme where there is a lot of risk, there is a lot of pain. e.m. underperforming small caps underperforming, tech's underperforming, and basically come investors are punishing the riskiest part of the markets wh, there is a lot, where ever you want to look at them the hardest. it is important to understand the action today. >> there is also no a chip scoop going on with bloomberg making the -- hitting the technology stocks even higher -- harder. joe: news like that exacerbates all kinds of concerns about and some of the best performance companies that rely in a globalized system of manufacturing and reject -- logistics. all kinds of reasons for winners today. >> the story hit the tape lets a week ago it perhaps would not have done as much damage. kind of edgy. joe: right. it would be interesting to see what happens tomorrow with the jobs report to see if it's sort of wars some gasoline on these concerns so to speak. >> to that end, we are looking

. ♪ caroline: live from bloomberg world headquarters, i'm caroline hyde. a snapshot of the u.s. stocks closing higher today. the first backed by gains all month. joe: the question is, "what'd you miss?" caroline: more tricks and treats for the global economy. the risks of a fed blowback and worsening trade war may be here to stay. the blue wave sweeping to wall street. areamerican securities opening up their wallets the democrats. and betting on the new iphone investment, we will be watching for signs of apple products following the new phone launch. we are in the halloween spirit here in bloomberg so our question of the day is a little spooky. what scares you about the markets? >> the fed clearly. bull markets never die of old age. they are usually murdered by the fed. >> there's only one truly systemic geopolitical risk, and that is the relationship between try not -- china and the u.s.. so far, it has been skirmishes. does deteriorate in the full-blown trade war, there are no winners. this is two great superpowers crushing. >> it has to be the tensions