i'm emma chandra. this is "bloomberg best," your weekly review from bloomberg television. let's start with the day by day look at the top headlines. on monday governments, businesses, and markets reacted to saudi arabia's account of the violent death of a journalist. arabia says that journalist and government critic jamaal khashoggi was murdered by a rogue operation that has sparked an international outcry. >> they said that they wanted to convince mr. khashoggi to come to saudi arabia and then discussions escalated to a chokehold that ended with his death. it is certainly not convincing too many people in the world. not the least the u.s. lawmakers . but also, as germany's chancellor made it clear that she would like to see more should come out, and the germans have halted military sales to saudi arabia, as well as the french. they talked about the need for the truth to come out. >> erdogan isn't buying the saudi version of the death of jamaal khashoggi. he says that khashoggi's killing in his stumble

i'm emma chandra.s is "bloomberg best," your weekly review of the most is important business, news and analysis from bloomberg television around the world. let's start with a day by day look at the top headlines. on monday, governments, businesses, and markets reacted to saudi arabia's account of the violent death of a journalist. >> saudi arabia says that journalist and government critic jamal khashoggi was murdered by a rogue operation that has sparked an international outcry. >> the discussion varied from the saudi side. they said that they wanted to convince mr. khashoggi to come to saudi arabia and then discussions escalated to a chokehold that ended with his death. it is certainly not convincing too many people in the world. not the least the u.s. lawmakers. as senator bob corker and lindsey graham have made clear yesterday in various interviews. but also, as germany's chancellor made it clear that she also would like to see more of the full truth come out, and the germans have halted military sa

we have emma chandra here to explain. emma: seeing a big rally in u.s. markets and that is following wednesday's rout which a race all of the gains on the year. all the major index in the green today. the dow jones in the positive territory for the first time in several days. the nasdaq up to it half percent, tech leading the rally after a round of positive likesgs reports from them of -- from the likes of microsoft, tesla and twitter. let's look at the debt -- at the up to .8% -- up 2.8%. amazon and output that as all of the other companies posted earnings. apple -- and off of

david: emma chandra is here with first word news. emma: there was engine failure minutes after launch from kazakhstan, forcing astronauts to make an emergency landing. nasa says rescue crews have been in contact with the crew who say they are in good condition. the most fell for hurricane edouard at the florida panhandle isn't finished yet. the 155 on our wind destroyed homes and brought a storm surge that turns never than the lakes. michael has now been downgraded to truck storm and is headed towards the carolinas which still haven't recovered from hurricane florence's record flooding. and president trump says when the federal reserve for the market settle, not his trade war with china. the president told fox news that quote the fed is going loco with raising interest rates. last month he said he was not --py the fed has rate raised

emma chandra is here. >> u.s.testy exchange with china's foreign minister in beijing. pompeo had a fundamental disagreement between the two countries. accusing the u.n. of escalating a trade dispute and meddling in china's domestic affairs. in the u.s. it is the deadliest accident since 2009. federal safety officials are investigating an limousine crash in upstate new york that killed 20 people. the limousine was speeding .ownhill when it lost control all 18 people in the limo were killed along with two pedestrians. two americans have been awarded the nobel prize in economics. william north house of yale was honored for integrating climate change into macroeconomic analysis. cited for his work on the role of innovation and economic growth. global news 24 hours a day on air and on tictoc on twitterberry held by more than -- on twitter. this is bloomberg. copper, aluminum, nickel, zinc all lower. copper able to eke out a flat existence. trade war tensions slowing growth in china plus a stronger dollar, a backdrop fo

is the company in the crosshairs area shares are falling after the company's is grounded.jet emma chandraexplain it all to us. emma: today we heard the u.s. defense department say it temporarily suspended white flightons for all -- operations for all. investors immediately began selling on the information. what the pentagon says it needs to do is a clean white et-wideion -- a fle inspection of a fuel to. there are some 325 operating worldwide. david: how long will it take to check the fuel tube in that many f-35's? emma: it can take 24 to 48 hours. it does not look good for lockheed. accounts for some 27% of their revenue. it is also a very expensive program for the u.s. david: if they do not show some costs, there will be problems here. emma: exactly. they are expected to spend more than 20 -- $10 billion on fiscal year 2019 on this. they are resolving over 900 deficiencies in the plane's software. what is interesting is there has been a common theme here that defense contractors have done well since president trump came in to office taking a look at the. here, how they perform since the

i am emma chandra. , pepsiup, hugh johnson coat cfo." ♪ now to your business flash. toys "r" us may be poised for a comeback. lenders could be taking their heat for the decision to liquidate their company and are working on refining the plan. the plan they cancel to cancel off -- auction off its intellectual property. they want to reorganize into a new company. twitter is ramping up before next month's elections in the u.s. the company is challenging 9.4 million accounts each week. accounts thatved have misrepresented themselves as fake members of the republican party. there is another sign that petroleum trade routes are being redrawn. kuwait has stopped shipping oil to the u.s. for the first time since 1990. booming demand for oil in asia, where kuwait can charge oil prices. that is your bloomberg business flash. it has been over a week since the second largest ever change up of the global industry classification standard. after the rebalance, the largest sector remains technology, followed by health care, financials. thebiggest chang

i'm emma chandra. this is bloomberg.h.: let's talk the $200 billion rout is entering uncharted territory. the chinese internet giant has lost more than any company worldwide. why this is such an important story. >> it is a combination of macro issues and issues that have -- first ofo with all we know that china is in a trade spat with the united states. the overall market is down this year. they have warned earlier about profit margins. the government itself that has helped it to rise so dramatically is now hurting its growth. it put a freeze on the online games which is the bread and butter of the company. it is struggling and posting the first profit decline in more than a decade. down about 40% from the high in january. vonnie: should american technology mega caps be concerned? >> they should. on the broader scheme of things the chinese government is controlling to some extent the china tech mega caps and the control of the american government is not even close. we can say that alibaba and , the companies that are com

we have emma chandra here to explain. emma: seeing a big rally in u.s. markets and that is following wednesday's rout which a race all of the gains on the year. all the major index in the green today. the dow jones in the positive territory for the first time in several days. the nasdaq up to it half percent, tech leading the rally after a round of positive likesgs reports from them of -- from the likes of microsoft, tesla and twitter. let's look at the debt -- at the up to .8% -- up 2.8%. amazon and output that as all of the other companies posted earnings. apple -- and off of that report after the bell today so we should see whether this rally in tech will continue once we get those other earnings later in the day. i mentioned tesla as well. tesla finally posting a profit in the market and investors rewarding elon musk and tesla. the other autos also having a good day. most up 8.5%.e updated guidance, this despite investors -- despite the fact that there was softer news out of china. ppg, this on news that -- is looking to oust ceo michael mcgarry at e

emma chandra is here with more. chandra is here with more. this is off of bloomberg reporting. bloomberg scoop found china is considering cutting its tax on cars in half. that would affect 70% of cars sold in china. and alsoeen g.m. rally auto parts makers. yet it is to jumpstart flagging sales in china. china accounts for 40% of all global sales. u.s. names have invested heavily there. they're are starting to see flagging demand in china impact. responsibled it was for fizzling sales and lower profit. g.m. reports later this week. european counterparts had also flagged the impact of the trade war. david: not all automakers are created equal, especially in china. buick is the fourth biggest car brand in china. they sell 5.5 times more buicks in china than in the u.s.. david: do you know why? emma: i don't. popular there. it is one of the most exposed of the global carmakers to china. we should temper this g.m. along with the rest of the u.s. auto market. it is still in a bear market. the hope is the stimulus in china could fuel demand and help the stock. a couple of analysts co

looking for new ways to engage with shoppers, and as part of our series on retail disruption, emma chandraretailers drive to produce content to generate sales. she works with a luxury fashion website. >> things have really changed in the retail landscape this year. they have purchased whatever they are buying and then they told leave, and in order really gain the trust and the loyalty and to have the customer come back you need to do something special. we really started on the content journey, about six and a half years ago, we believe the way to engage with our customers was with the content. >> what sort of things are you producing? >> we want to create the ultimate lifestyle. so they don't have to go anywhere else for their travel, their fashion shoots, inspiration on how to dress. interviews with musicians, people behind brands. we want to build our content platform so they can come to us. >> in the end, content must have a business purpose. it must also be about driving sales. >> sure, and it's about engagement. we find customers who read content are 24% more likely to like a purchase

amash chandra is here -- emma chandra is here.atement saying there were going to sell more than $2 billion in bonds. it brings their total debt to $10 billion, which is a huge amount when we know the company is burning through cash. last week they said they expect to burn through $3 billion of cash this year as they continue to prioritize the creation of original content. their stock fell earlier. questioningyone is how long this business model can work for netflix. .o far, it is delivering subscriber growth is up. emma: that is true. the model is one of bonding to fund new content. starting to change, which may have some investors being a little bit concerned. other people saying the credit cycle is in its late stages. netflix is doing incredibly well with this business model and it is a business model they are very open about. everyone knows what it is doing in the earnings. we saw they continue to add subscribers at an impressive rate. take a look at the bloomberg. i have a chart which shows it was almost 7 million customers ad

more on all of that in a moment, but first, let's get to emma chandra with breaking housing data. emma: we are looking at u.s. pending home sales seeing a rise of -- a rise on the month. seeing slightly better-than-expected news when it comes to pending home sales here in the u.s.. that will be good some news for -- some good news for the housing sector. ak of late, quite we and we saw pending home sales fall by 1.8%. housing data has been weaker over the past few months. today's rise of .5% beat out the average estimate, so good news there. let's take a look at the major indexes here in the u.s.. green across the screen, something of a change in the discourse as we look at the week as a whole, and all the major indices in the green. tech is really leading the gains, which is why we are seeing the biggest move. the nasdaq, up over 2% at the moment. a little note of caution. i have another chart that shows you even with today's rally on the month, we are looking at quite a difficult october here. you can see the falls and all the major averages, down for october. what we are seeing

david: emma chandra, first world news. nate is preparing for make or break on brett kavanaugh. republican holdouts, jeff flake fbisusan collins say a investigation appears to be thorough. brett kavanaugh says in a wall street journal article that he may have been too emotional at the senate hearing. mike pompeo will be lacking leverage returning to north korea for a meeting with kim jong-un. the push for nuclear disarmament has been undermined by calls percent in release and my president trump's desire for another summit. nadia is a victim of war crimes and there is another victim in the democratic republic of congo. they are being honored for trying to end domestic violence. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra, this is bloomberg. thanks. one of the most important developments has been the rise in the yield for tenure treasuries. the backdrop of federal reserve members speaking out. >> interest rates are sti

for special election coverage, but were now let's find out what's going on in the markets with emma chandra. >> this is the last day of one of the worst months for the bull market. highs, thef their nasdaq 100 is here for you in this is the one that has seen , 1.8%,gest gains facebook earnings jolting the second-highest, hoping that today's rally will sustain after seemingly bouncing over the last nevertheless, stocks could be regaining support here, showing you the dow industrials index regaining some of that support here at the very end above the 200 day moving average. that's a key long-term technical support level. looking at the s&p 500 we have a chart that shows you it's been open for two days. if that holds it will be the first two-day rally for the s&p 500 in seven weeks. earnings finally getting the attention that they deserve, like gm reducing the s&p. the s&p 500, we will avoid having its 17th loss in one month. that was back in 1970. finally, let's take a look at the movers on the board. it is all about tech stocks today. microsoft, apple, amazon, facebook, all advancing by some

i'm emma chandra, this is bloomberg. week is an earnings bonanza. more than 160 stocks, 32% of the s&p companies will report including caterpillar, ford, google and charter. ,oining us is thomas digenan head of u.s. intrinsic value. good to have you with us. we are only a little ways into the earnings and we have a lot coming up. thus far they have been quite strong, but the market has in was rewarded the country -- companies. what's your take so far? thomas: there are a lot of factors you need to look at. is it topline growth, margins. right now its guidance. people are focused on the sustainability of earnings and are worried the earnings growth we've had is not going to be sustainable. david: what causes that question about whether it sustainable? is it because there won't be tax cuts down the pike? thomas: we will say or test we will see if they are -- if there are more. i think if you look it corporate confidence, while it is high relative to the store at levels, you have seen it pullback a little bit and we are at

emma chandra is here and she has first word news. good morning. : president trump achieve the trade deal he wanted. the u.s. and canada have agreed to scrap the 24-year-old nafta and include mexico and a new three-way deal. among modest changes comic called for u.s. farmers to have more access to canada's dairy market plus canadian auto exports up to a point would not be affected by u.s. tariffs on foreign cars. president trump has called nafta a disaster. in indonesia, the death toll from an earthquake and tsunami is now over 800. the government has continued to search for survivors from the disaster on the island. beyond the human cost, indonesia also is likely to take a hit to its budget for reconstruction. the disaster might hurt the all-important tourism industry. the nobel prize in medicine has gone to james allison at the university of texas and tasuko their work. global news, 24 hours a day, on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra, this is bloomberg. dav

. ♪ emma: i am emma chandra. coming up, darrell cronk.is bloomberg. ♪ we are 1.5 minutes away from the ecb rate decision. i want to do a market check. it has been a very, very difficult week for equity investors. now you are seeing a little bit of a relief rally for the s&p. is this actually some real value buying in the market? the nasdaq coming off his force selloff in seven years. the futures market up by about 1%. european stocks flat. dax losing some speed. in positiveome on top of the pmi's. this is the euro-dollar. the dollar has been surging, adding to tightening financial conditions. how does that play out heading into the ecb meeting? buy then italy, it is a store here. down by 10 basis points. three-yield market here, basis points is the rally you see. the back end it's a seven-your auction coming out today. crude up by .3%. no change expected but it will be a press conference. mario draghi a lot a fine line between what is happening with italy normalizing. how do they wind up dealing with that? we are awaiting the ecb rate dec

scarlet: emma chandra, thank you so much. emma chandra with our stock of the hour, which was apple.inking outside the black box. how the superrich are stockpiling their wealth in a different type of charity. we will explain. this is bloomberg. ♪ ♪ caroline: i'm caroline hyde. this is countdown to the close. we are about an hour and 10 minutes still away from it. the s&p 500 is still on a down day. seeing a significant selloff in the nasdaq today as well. this is a global rout. we are currently not seeing the all-important measure of the market, trading at the lowest since may 2017. it is surprising we have a lower dollar and the e.m. emerging-market fall, but it is all pegged on the selloff in bonds. the 10 year yield is now up four basis points, 3.23%. is the big story this weekend. meantime, if you look at donor advised funds, they are becoming all the rage in charitable giving in the corporate world, but it had some charities worried. boston explain more is college professor ray madoff and suzanne willie, who wrote a story about this. suzanne, let me start with you to get nation

we turned emma chandra. emma: good morning, david.s direct the accused the power behind the saudi throne of involvement in the death of journalist jamal khashoggi. princeide says the crown has "bloody his hands." those who ordered the killings should also face justice. the head of the house's tax-writing committee supports president trump's support for 10% tax cut for the middle class. kevin brady says if republicans retain the house and senate, they will move forward on the plan. it is a signal the tax overhaul is improving. president trump stepped up his attack on jerome powell. the president told the wall street journal he may be regrets appointing powell. he was not say under what circumstances he would fire him. he said he was intentionally sending powell a message he wanted to lower interest rates. global news 20 hours a day on-air and a tictoc on twitter powered by more than 2700 analysts and analysts in more than 120 countries. i am emma chandra. this is bloomberg. alix: i love that clarity. i want you to lower interest rates.

we turn to emma chandra. emma: thanks. we're still looking at a continued selloff in the u.s.s the screen for the u.s. major indexes. the dow jones down from 4/10 of 1% as s&p 500 is down contents of 1%. the pain is in the nasdaq. down for the third day and a row. down over 1% each day for the nasdaq. really feeling the pain at the moment, especially as we have heard about it continue deepening of ties between the u.s. and china. we heard there was an exchange between mike pompeo and his chinese counterpart in beijing earlier in the day. that is being felt across the market. certainly intact. a lot of tech companies with exposure to china. we know a number of them are falling today. we are looking at the nasdaq down over three days, down from 4.2%. david: thank you so much. journalist jamaal khashoggi disappeared after visiting the turkish consulate last year. president erdogan saying saudi officials must prove that he left the consulate, remarking turkey's second request. the prince spoke to bloomberg on friday saying he has nothing to hide and is ready to allow certain -- i

i'm emma chandra. this is "bloomberg." thanks. a big announcement in new york city today.eiling products. one of them is a new pixel three phone. as they try to increase revenue and become a rival to apples and -- apple and samsung. joining us is ramon llamas. what is newnse of about this phone and why it might give google the boost it needs? ramon: when you take a look at the smartphone market, we're only growing by smaller digits every year. google wants to establish itself dealer as thee heavy operating system for vendors. ,hey want to demonstrate without the bloatware you see from vendors. it is important for google to say, this is what we want to have. what our fans want to experience. that is why you see google coming out with these phones. david: once you get an apple, they have you hooked. to break mettempt out of the apple ecosystem? have: they want to everybody in that android system as much as possible. all of these are important, do not get me wrong. once we continue with that, having the music and the videos and the photos and the different kinds of distributi

i'm emma chandra. coming up, an exclusive interview with the state bank of india chairman.erg." david: saudi arabia signed more than 25 deals ranging from energy to metals in riyadh. joining us from riyadh is yousef gamal el-din. thank you for joining us. there are headlines coming up. there's something else going on today. speaking todogan parliament and having words about saudi arabia. was he as harsh as we expected? most observers were expecting a bombshell and that did not materialize. were that the turkish narrative differ from the saudi version of what happened that day. maintainsh government this was a killing, it was planned in advance. it was not an accident. the question that remains unanswered is, where is the body? we will wait for more details. david: we have this odd situation developing. we had siemens say they're going to put off signing that power deal in saudi arabia. what is that about? the ceo decided he was not going to go to the conference. yousef: the conference is underway. to make arying showing that it is business as usual. latest headlines from se

david: and emma chandra is here with first word news. all 10 of the similar looking packages had return addresses from democratic representative debbie wasserman schultz whose district is in southern florida. the return address included missed spelling -- misspellings of street names and the state of florida. theresa may's cabinet unable to advance talks with brussels. the top independent research institute says equity in the european union without a deal would crush british gdp and rising .3% next year down from the nearly 2% that will be expected. >> the turkish president wants saudi arabia to hand over banks it into fight in the murder of journalist. goodwill byw keeping people involved in the killing which took place in istanbul. he also announced a prosecutor that visited turkey over the weekend. news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. the battered homebuilders might see relief after a bullish call on wall street. stephen can has upgraded the g

emma chandra is here with more. a types -- tough time. >> it's one of the highest volume trades today and so far in the session and one of the biggest drags on the nasdaq and it was downgraded to neutral from positive. from target cut to $45 $75. recents were saying that checks suggested incremental weakness for cloud and enterprise services among a number of businesses within the first half of 2019. caution among a number of global executives at the moment. also check pricing is headed lower. we've got a chart which can show you how it has become what is known as a double bear. shares down over 40% from peak levels. vonnie: that is not in my terminal. >> hopefully we can show it to you. it is a double there. guy: was a fantastic function. macron fit in terms of the chips? >> the chips all doing fairly badly today. susquehanna analysts cut its rating for the semi industry as a whole. downgraded another six other stocks including applied materials. if we take a look at the philadelphia semiconductor index. at its low

here is emma chandra. >> we are seeing the stock accelerate losses across the board, red across the screen. the s&p 500 down 2.6%. the pain in tech, the nasdaq down from 3.3% and the nasdaq down 100 -- nasdaq 100 down more than that. amazonpoor earnings from and google, despite the fact we got a gdp stronger than forecast. extended by 10%. it is flirting with correction territory. the nasdaq fell into correction territory on wednesday. the nasdaq is down over 12% across october. amazon and google dragging but dragging the likes of apple, netflix into the red today. i want to draw your attention into western digital. it is down almost 22%, having a shocker of an earnings report that came out earlier. miss.w an earnings in a quarter would be below -- would be a team percent below consensus. consensus. 18% below we're seeing its peers fall as well. we are seeing the yen strengthened, the 10 year rally and gold is rising. vonnie: thank you. leading techphabet shares lower. we are joined by romaine bostick. also alex webb joins us. let us start with you in new york. we are seeing a selloff. how

the businesse world, we have first word news with emma chandra. >> as we have been reporting here andave been discussing, angela merkel will not be seeking a new term as ahead of the christian democratic union. the coalition government took a hit when the special democrats suffered their worst defeat since world war ii in a state election held in frankfurt. she has indicated she wants to remain as chancellor. the max jet operated by lion there has crashed with 180 nine people aboard. at lost contact between sumatra the oil slick from the downed aircraft. officials say they are not expecting to have any survivors. the search is currently planned to last seven days but could be extended. the leaders of the pittsburgh affiliate of the national jewish presidenton wants trump to denounce white nationalism. the organization says that the president will not be welcome in pittsburgh until he is -- he stops inviting violence against minorities. global news, 24 hours per day, on air and on twitter, powered by 2700 journalists and analysts in more than 120 countries. alix: thank you so much. oil

caroline: that was bloomberg's emma chandra speaking with the ceo of rio tinto diamonds.g up, fighting on one less trade front. what trump's have to rewrite means for his future with china. ♪ caroline: president trump is taking a victory lap on his nafta rewrite. the white house has a new deal and one less trade front to worry about. now the trump administration has made peace with north america, so advisors are hoping it clears the way to focus on china. >> there also is some negative implication for china in the new rules of origin, because they have been shifting a lot of parts in through the nafta regime. so these gains are coming at the expense of non-nafta areas, most notably asia and europe. caroline: let's get a perspective from shery ahn now. doesn't bode ill or well for china to be frontline and center? >> that is a key question that we kept asking yesterday on our asia shows. while they did make a more hardline stance that the trump administration has gotten this deal, or does it mean because the deal only saw moderate changes, does it mean that a few concessio

markets with emma chandra. >> a rally in the u.s. following wednesday's rout, we could be looking at her recovery with green across the major indexes, and the nasdaq 100, it is tech that is leading the gains. mastec 100 up 2.6% -- nasdaq 100 up 2.6%. 10 year yield up two basis points and s&p 500 back to equities. in positive territory for the first time in seven days. volume is up some 50% over a 20 day moving average. something to suggest the rally is there from a loss of volume, a lot of people in the market today. it has been tough on stocks. we should be able to show you the total market index, measuring the performance of all u.s. equities, securities come in the past five weeks, lost some $3 trillion in market capitalization. the last five weeks have been tough and the rally today was not change that around. after goodg gains earnings from tesla, microsoft, twitter. google, amazon, intel, all rising ahead of the reports. what we hear from them could be the true indicator of how the tech sector in the u.s. may perform over the n

emma chandra is here with more. >> it was a twitter storm. 15 tweets targeting the securities and exchangemission. saying that the short seller in richmond commission is doing incredible work, a week after settling this lawsuit, sarcastically referring to them as a short seller enrichment commission. david: and settling a lawsuit about whether he was trying to short sell. >> it is incredible. we have not heard from the sec but bloomberg did speak with an officer who said they could pull the deal. paiddition to the fine he for tesla and giving up the chairmanship. tesla is supposed to put in place independent directors. it looks like that has not happened. investors have not liked it. they have pulled their money. david: the deal gave him time to do things, including stopping tweeting. what happens next? >> it will be interesting to see. we are waiting to see what the sec will do. investors are not happy. take a look at this chart. it shows you how the stock moved overnight when these came out and that the opening, you can see that downward move. social media sentiment does not seem to like

joining us now is emma chandra and romaine bostick.t davis research was out with a note recommending folks reduce their holding in u.s. equities. and has been the narrative when you look at the earnings reports we have gotten, it has given ammunition to the idea we've reached some sort of plateau when it comes to revenue and profit growth. that is causing people to look at the valuations on equities, with a lot of these highflying tech companies and reset them down to a level that is more in line. david: taking us down. talk about specifics. google. google cameet and in a lot softer than people expected. they led the markets lower this morning. as well missing a number of estimates. they're facing a regulatory backlash in europe. there have been questions about its privacy practices and its clashes with advertisers over content. fined bygoogle was their trust authority for violating competition was. that is reflected here in the u.s. donald trump has accused google of being politically biased and there are into trust -- antitrust and p

. -- emma chandra. emma: we have consumer sentiment coming in at 98.6, below the estimate of 99, and below the prior read of 99, so that is a repeat -- the consumer sentiment at 98.6. consumer sentiment likely affected by the recent market selloff. and speaking of the market selloff, take a look at what is happening today because it seems the gains yesterday are a distant memory as we look at red across the screen. dow, s&p 500 and nasdaq all falling. nasdaq 100 down 2.5%. that is because it is tech setting the risk off tone and investors are focused on the earnings results we are getting from some of the big names. and changing the board, you can see the ones that have really struggled. amazon down almost 8%, alphabet down 3.5%, because they came in with earnings that missed estimates yesterday. and we are looking at a guidance story. amazon with their second straight quarter were they missed their sales estimate. the biggest issue the morning on holiday sales, the forecast coming in at $4 billion unde

as part of a series looking at retail disruption, emma chandra spoke with the founder and ceo who sayshnology is at the heart of thirdlove's success. direct to consumer e-commerce brand that makes it very comfortable -- makes very comfortable bronson underwear. underwear.d disrupted third love what victoria's secret does and others? >> a few ways. one is focusing on product quality and a range of sizes. we have 70 sizes and the secret offers about 36. we have more than double including half sizes. shouldn'tf sizes, why braws? and we use real women in marketing instead of models. we also leverage data to help women find their fit online. >> you rely heavily on the machine learning and that helps you make business and product decisions. how does that work? >> to think about height get fit for a brawl, a woman might come into a room with a measuring tape. .e have digitized that have donellion women the fit finder. we have over 700 million data points. >> you have used in the data you had to find the products of you speak? >> we use the data for product development and design. we use it in

i'm emma chandra. this is bloomberg. ♪ guy: thank you. we are getting use relating to the pound. table rate is spiking higher with a chart for that in just a moment. there is a dow jones report that the ek and u.k. divorce terms could be settled by monday. eu andas some -- the u.k. divorce terms could be settled by monday. you may see more details of that emerging tomorrow when we get everything from michelle bonnie. we are now trading one point -- 1.3134, a 1.1 decent upside. this is bloomberg. ♪ guy: breaking news. it has been announced to buy hsbc that it is settling with be -- r&mbated to rm claims. this is a story with an incredibly long tail. we have been waiting for this settlement for a long time. we are getting details on it. i am not entirely sure whether it is on the plus or minus on the members. i have -- on the numbers. i am not seeing much reaction on the london stock listing. the hong kong listing already closed let's get to battle of the church. -- the charts. what have you got? >> we have been talking a lot about tencent, losing $220 billion in market value, more

as part of a series looking at retail disruption, emma chandra spoke with the founder and ceo who saysology is at the heart of thirdlove's success. >> we are a direct to consumer e-commerce brand that makes it -- very comfortable bras and underwear. going set the genesis was into a victoria's secret store and not liking their offering. how have you disrupted what they do? >> a few ways. one is focusing on product quality and a range of sizes. we have 70 sizes and the secret offers about 36. we have more than double including half sizes. i always say, shoes have half sizes, why shouldn't draws bra's?she is half sizes, why -- shouldnt bra's. and we use real women in marketing instead of models. we also leverage data to help women find their fit online. >> you rely heavily on the machine learning and that helps you make business and product decisions. how does that work? >> if you think about how you get fit, usually, a woman might come into a room with a measuring tape. size you up and bring you some that work for you. we have digitized that. we have a fit finder, and in under 60 seconds

vonnie: emma chandra, thank you. let us get more now on germany's political future.ke about why she is stepping down as party leader. candidate forbe a party leadership. year is my last 10 year as chancellor. andll not be a candidate will not be a candidate to get a seat in the parliament and not continue in the political arena at all. i am willing to continue as the chancellor at the current time. vonnie: for the view from berlin, let us go to the director of the european program at the marshall fund of the united states. the best case for angela merkel is that she has three years as chancellor. can she get anything done? jan: it is the lame duck chancellorship. the question as to whether she can get anything done depends , the social democrats need to make a calculation -- do they want to stick with this government they announced yesterday and stick it out until the two-year marker or do they want to go for more independence and break this coalition apart. that is the calculation. they like the idea of a post merkel era which might be better for them. she is depend