we talked about the frontloading. come through at the end of september, so perhaps we get people getting ahead of that. we are seeing very favorable numbers today. david: what a beat. these ones, pulled the surpluses, the dollar numbers are at least 40%, 50% higher than the estimates. $32 billion trade surplus. $2.1 billion in trade. we will be back in a few minutes for the next hour of lumber markets. this is bloomberg. ♪ >> i'm in for emily chang. this is bloomberg technology. tumbled, is tech losing its shine? and the microsoft ceo joins the -- google thele's latest to reveal a security flaw. our exclusive interview, coming up.

is it almost frontload all the returns in that decade?e one major trend seeing is the extent to which private capital and direct investments are driving economic growth. especially in the alternative space. certainly we will see a large crowding into the united states. particularly looking down into real estate and infrastructure, we're seeing a lot more appetite here in this part of the world, even despite concerns around the u.s.-try to -- u.s.-china trade dispute. rishaad: we have seen chinese markets tank 30%. the stock market in france has been wiped out. huge losses here. thing is, we have not seen that in the u.s. lookre americans when they at the tariff war so sanguine, when they see what is happening in china? alexis: i am reminded that the stock market is not the economy. rishaad: we know that. alexis: there is a downplay on sentiment, the market goes down. much more concern for beijing is the value of the renminbi. hand, it ishe other certainly the animal spirits we saw in europe over 2017 have seeped across the atlantic. it is

fred: a little bitter frontloading probably was in there.be some frontloading, and from that regard you might get a bit of payback, but it's not what drives the numbers in a huge way up or down. i think we might see some payback in the fourth quarter, but it's not that massive volatility that some people might fear. wiki: let's turn to korea, saying that people are not really decided on whether it should be a hike or a hold. given that were seeing a pretty weak labor market, not to mention trade risk, isn't it obvious that they should just hold for the time being? are they being too ambitious by trying to hike? they've been talking very hawkish lee in the last few meetings. the market is primed to some interest rate hike. ,oday expectations are split but probably within the fourth quarter, most people would expect a rate hike in korea. you are right, the trade tensions are a big question mark here, but on the other hand, you have inflation ticking up to its target and you have very high leverage. the bank of korea has been looking to normali

as they frontloaded the rate hike. they hiked 50 basis points.ce then, given the fed will hike again in december, they might want to keep some ammunition in their arsenal for a rate hike later in the year. rishaad: the other thing is what is the reason for them to be moving on monetary policy? is the -- how is the economy doing? i would say it is pretty much the defense of the rupiah. the new governor has pretty much cleared the financial stability objective.t if you look at the inflation, it really is not constraining them in any manner. really, it is shooting up. on the economic front, they have some reason to say that the rate hikes are not biting yet. will3 gdp, while it probably show a slowdown from the previous quarter, it might not come off as much as some of .s are expecting the data it seems encouraging the you also have the boost from the games. a lot ofe have seen the selloffs in the currency and everyone has been worried about the current account deficit. we take a look at these demands for the bond auctions in indonesia, and they hav

they frontloaded higher-margin vehicles in the front more -- the from quarter.t will start delivering lower margin vehicles, and they need to show that they can build at volume profitably, and they have to clean up these service center issues and delivery issues. the logistical delays in delivery and show that they can operate like a real car company. .hery: thank you coming up, earnings a season is offering some hints at how companies are handling the u.s. china trade disputes. we will hear how companies are adjusting their future plans. this is bloomberg. ♪ shery: this is bloomberg markets, i am shery ahn. amanda: and i'm amanda lang. it is earnings season and analysts are scouring reports for any hint of how the ongoing trade war is affecting business. one comment that is emerging is that companies are getting ready to relocate supply chains out of china. sarah, in terms of talking about are doing, i'm curious for your take on how much of this is amusing and how much of it is real. people are saying the labor costs are already going up, and they are thinking

front lines, giving israel more tools to confront the iranians, and in the likely future war by frontloading the 10mu has just kicked in on the defense aid. either a stronger autonomy or independence and offering to protect them. they're our allies with isis, but to do that also is a way to prevent iranian-backed hasam regime. these are some ideas, among others, that we've raised at jinsa, and i was curious if you've considered some of these or others. we would love to hear other ways the state department or the administration might be considering of pressuring it ra -- the iranians. >> so the sanctions get a lot of the headlines. the sanctions the president put in place goes broader than that. i don't have time to go into that, but it is a lot of work. it's a full range of things to do the simple task of convincing the iranian leaders to behave like a normal nation. i listed 12 things the iranians have to do for us to get back in a relationship with them. when you read through them, they're nothing more than what we ask belgium to do. like stop launching rockets into major international air

was frontloading in anticipation of the trade war impact. year,e have seen this chinese equity markets off 30% despite the fact the economy has been holding up really well. there is an argument equity markets have already priced this slowdown. they have fallen as far as they can. to negative. a badk is this kind of news? more policyng for measures? is a lot ofave seen measures come through. thatwas important was friday signaling. the government, several senior officials said, we are concerned. we are not going to let the equity market fall further. they have clearly made, emphasized stimulus since then. that means they are taking the fight seriously. they do not want equity markets to fall further. it is not this is bad data. have the fact the markets priced in a massive slowdown in data. we are seeing the government respond. they do not want this to continue. rishaad: it has been a horror story in the last six months for global equities. that has led you to the question of the day? >> nightmare on wall street. heading for the worst month in

some of this signing this comes from companies frontloading their orders because they expected tradeto get their goods out the door before it happened. thank you very much indeed. let's ta ke let's take a quick look at the markets. they have rebounded. japan's nikkei changed course and ended higher on friday, as investors took heart from gains in chinese shares on upbeat chinese export data. in europe... the volatility that swept global markets this week seemed to cool off a little. kim gittleson has the details of what's ahead on wall street today. on friday, after a wild few days on wall street, fourth—quarter earnings season finally begins. wells fargo, jp morgan and citigroup are all expected to report their earnings before us markets open here. jp morgan, for one, is expected to show that profits at the bank increased by 20% compared to a year ago. it's been helped primarily by president donald trump's tax cuts, as well as rising interest rates. the question is whether or not this will allay investor concerns about corporate profitability going forward. investors have been selli

there was a lot of speculation that these numbers might be frontloaded. this was a huge beat.n said as much, we expect to be profitable from q3 onward. huge yuan for tesla and shows the power of the brand more than anything. aily: normally tessler gives significant amount of notice to we found monday night that that tesla would we announcing today. is there anything unusual? fair, tesla always reports on wednesday. as they as halloween. we were asking them to not do it on halloween because we have kids. to cometed the earnings next tuesday are pushing to november. the company has a good story to tell, might as well do it early. everyone was suspecting this would be good news. >> let's dive into the actual numbers. we are always looking at the model three. you look at the actual delivery numbers, are you liking what you see? about of the big things the delivery numbers is that they were all strong. we have not even seen the race model number three yet. taste level model 3 comes out, a lot of consumers will like it. there is still plenty of demand for tesla. power.so much it is

that maybe frontloading.own into manufacturing activity on a forward-looking basis, that will be the key takeaway for markets. is there anything there that shows that there will be resilience rather than the potential last gasp before the day luge? haidi: it has been tricky to turn around sentiment in asia. even if china data was really good, with that be enough? >> i don't think it will be. ways, this problem is very much made in america. i'm not just talking about the trade wars. i have a chart to show you. looking at what is going on with financial conditions in the u.s. and in asia outside of japan. emerging asia. that shows that while the fed's tightening and other things have been going on globally and in it has., oil prices, taken some of the heat out of the u.s. economy by tightening conditions. a lower number here is tighter. above zero is loosening. the u.s. is still in loosening territory. asia keeps on getting tighter and tighter. will make it very hard to see a sustainable bounce from here. if we

meanwhile they dropped important forward guidance on policy thatg -- no longer saying policy is frontloadedmptive, another strong signal. bloomberg economics as they will have to raise rates by another 50 basis points by the end of this year. i want to echo what adam haigh said about china. they're adding liquidity to the credit markets. we had a big story about being u.s. companies looking to move their supply chains out of country -- out of china to other countries. is watching the pboc to see if they get more aggressive but italy's battle with the e.u. over the budget, the prime minister is now involved and that's one of the biggest things that has cap that bond market in rally mode. that's something we have to keep our eye on also. haidi: kathleen hays there. we will continue watching the italian situation with the prime minister there making those comments in an exclusive interview in rome. he spoke to us just before the european commission rejected his governments rule breaking budget. >> there is in any b plan. the deficit at 2.4 compared to gdp. we will expect ift we are ready to re

there is a lot of speculation these numbers might be frontloaded, but this was huge.en said, we expect to profitable going forward. if they can repeat this going forward, it is a huge win for tesla and shows the power of the brand. emily: normally tesla gives a significant amount of notice for earnings. this happened in less than two days. on monday we found out tesla would be reporting today. is there anything unusual about that? be fair, tesla always reports earnings on a wednesday. stay was halloween. we were asking, could you please not do it on halloween, some of us have kids. stay or possibly november? , they had a good story to tell so they pushed forward. emily: let's take a deeper dive into the numbers. we are always looking at the model 3. when you look at the actual delivery numbers, are you liking what you see? >> yeah. one of the big things is model were alls, and model x strong. we haven't even seen the base model 3. 3 comes base model out, a lot of consumers will want this at the lowest price. there's plenty of demand for tesla. it is a brand that has s

there was a lot of speculation some of these numbers might be frontloaded, but this was a huge beat we also all. -- we all saw. expect to bewould profitable from q3 forward. this shows the power of the brand more than anything. emily: i want to talk a little bit about the death of because normally there is a significant amount of notice. this happened in less than two days. monday night, we found out tesla would be reporting today. is there anything unusual about that? fair, tesla always reports earnings on wednesday. next wednesday is halloween. askingand analysts were the company could you please not do it on halloween. at of us have kids. we were expecting earnings would come next tuesday or possibly pushing to november, but the company has a good story to tell and might as well tell it early. the fact they pulled earnings forward, everyone was expecting this would be good news. emily: let's take a deeper dive into the actual numbers. the company is still on target to deliver 100,000 model s and x cars this year. we are always looking at the model three. when we look at the delivery

there is a lot of speculation these numbers might be frontloaded, but this was a huge beat as we all saw. elon said, we expect to be profitable going forward. if they can repeat this going forward, it is a huge win for tesla and shows the power of the brand more than anything. emily: normally tesla gives a significant amount of notice for earnings. this happened in less than two days. on monday night we found out tesla would be reporting today. they preferred to have more notice, so is there anything unusual about that? [laughter] >> to be fair, tesla always reports earnings on a wednesday. next wednesday is halloween. we were asking, could you please not do it on halloween, some of us have kids. so we were actually expecting the earnings to come next tuesday or possibly depression to november, but clearly they had a good story to tell so they pushed forward. and everyone was expecting this as good news. emily: let's take a deeper dive into the numbers. the company said still on target x cars thiso many year, and of course we are always looking at the model 3. when you look at the ac

there is quite a bit of talk this is frontloading. this is people trying to make sure they get their exports and imports done before january when the united states go ahead with their 25% tariffs or increases the levels 25% on chinese products. where china goes, south korea is usually close behind. their companies could get caught up in this. see there is resilience. at least business is continuing in some areas. here.are bright spots it may not survive through to the early part of next year if the united states and china continue their trade war. anna: let's go to the question of the day. on the mliv blog, you have been debating this this morning. how worried should investors and risk assets be about gold rallies? worried, but not too much. gold is just about $1200. it has not done a great deal this year. it has not done a great deal. if gold was $1500 we would be a lot more worried. there are a few things going on which in the background are not good. we just saw the united states is planning to pull out of the nuclear agreement wit

figure, it fell again what you put that together what's happening here is manufacturers have been frontloading orders to try to get everything out before president trump's tariffs kick in in full so a bunch of analysts have been putting out reports believing that export growth in the fourth quarter could taper off and that could have an effect on the overall gdp growth outlook >> at the end of the day, one of the reasons the shanghai is doing well is because of this promise of extra policy support. we heard the pboc governor saying they're looking to roll out measures to help companies with financing is this not an admission on the policy americas part that the economy is actually slowing down and they'll have to do something? >> they've definitely been saying they'll do more stuff to sport the economy. the statistici ins bureau todayi we should expect more infrastructure investment in the coming days because that and fai generally helps to support the economy. there are several things they're putting in place to safeguard the economy. they've been trying to clamp down on all these problems th

july, august and september gdp was up in china and they made their frontload in the tariffs and the gdpp. exports have been up 11-12% and up july, august and september but numbers tell a defense or number say china is not feeling the effects of these tariffs. damaging next year when you add the extra 250 plus billion and may change next year when you had 25% compared to 10% but china feel like they're in a good position because of not feeling the effects - [inaudible conversations] >> stock market begs to differ. the chinese markets are down significantly since it started in one of the things you seem to cold is now they are trying to align themselves with a lot of the allies in the region and because they've lost out on american trade and so we got to align ourselves with other regional players. david: i got to give you time to finish her statement. >> your argument is being challenged and i thank you have a response ability to respond and chivalry is a great thing. >> that's it, nothing on china? >> i'm sure it is. >> even if there's a deal will china still play by the rules? susan, a

some of the economy is frontloaded, to get in ahead of the tariffs. now reality seems to be the industrial part is slowing down a lot? >> i think this puts pressure on the government as michael says to come to an agreement with washington. they have seen conciliatory efforts. they lowered tariffs on 1500 products. they are talking about, meeting with xi xinping and trump november 29th i think it is which would be a very good thing. we know that president trump doesn't like to leave those kinds of meetings without scoring some sort of success. look in terms the impact on the american economy right now, i think it is minimal. but there is no question but this is all sort of moving in the right direction. i think for a better agreement on some of these issues that are out there. charles: before you jump in, james, want to note we were up 100 points six minutes ago when the she began. we begun a precipitous, steady decline lower. it is moving in 10-point chunks we'll talk about that in a moment. jim freeman. >> the chinese leadership is now acknowledging

do want to note anecdotally in the philadelphia district some manufacturers thinking orders are frontloaded in front of january when higher tariffs kick in on china. charles, tariffs were not prominently mentioned in the report as we've seen last couple months for "beige book," maybe they're not largely constraining growth. bottom line here the the economy in strong shape coming into the fourth quarter despite tariffs which should keep the fed on course for further gradual rate hikes. back to you. charles: jennifer, thank you very much. let's bring in the panel to break down the "beige book" summary and president trump's criticism of fed. danielle dimartino booth, carol roth, former investment banker, currently with future file legacy, she is the system creator and fox news contributor gary kaltbaum, president of kaltbaum capital management. start with you first, interpretation of the fed, the idea they mentioned tariffs less frequently than they had in prior reports matches up what i'm seeing with the bank of new york merrill lynch, that big survey they do of fund managers and the world, m

there was a tax break that ended in september which meant a lot of the buying was frontloaded.t an air pocket is not clear where the demand for fixed income is coming from. that is the worry when we are taking down this large amount of issuance. replacing -- repricing. will the market jump on this bandwagon, morgan stanley saying mea culpa, we are on the turn, flattening is done, we will see a reappraisal and a repricing, we will start to talk about steepening again, would you throw in the towel there? we have liked curved steepening ideas for quite some time. one thing we have been keen to push back on is the concept that the fed are never going to be able to raise rates past 3%. theyoncept, interest rates to stay low, inflation will stay low forever the cycle and as the fed raised interest rates that curve flattened sent 2% was the focal point partly because that is where the fed happened vocal in terms of saying that is where their long-term neutral rate is. with readings printing in the 60's, the market is starting to evaluate where the fed will need to get to in the cycle.

a lot of this impact has been frontloaded. the tax cuts were very stimulatory in the short run.ou had a lot of repatriation of profits for the big tech names. i think that drove a lot of the market. i think you have a confluence of a lot of factors going on. reappraising our risk and portfolios. kirk stays with us. global cio at wells fargo asset management. show, moren the interviews from the imf and world bank annual meeting. this is bloomberg. ♪ anna: good morning everybody. 6:20 here in london. these are the losses we are , recap of what we saw in the united states and how this is translating into asia. we were talking about how much of this is passive trading. i'm just fascinated. you would expect the contagion into asia. asia has already lost so much ground while the u.s. was still doing very well. really fascinating conversations about connectivity in these markets. manus: you talked about the inter-linkages in the market. rocked by italy, higher rates, oil. is it really trade wars that are beginning to be reappraised? can the world live with the federal reserve? that tak

perhaps you can say it is frontloading ahead of tariffs. we see the likes of hang seng recovering. of 350 points right now. you mentioned the turnaround in stocks. the csi 300 large-cap is up. these are big when it comes to the kospi. about the currency manipulation thing, but also we did see a weaker than expected fixing from the pboc today, weaker than what analysts were expecting. that is why we are holding around 690 levels. we are losing the gain we saw overnight. this stock plunging from 24% today. the first time they are reacting to this news that bmw is going to be raising the stake in their -- and city slashing the price target by more than 70%. this unfair deal is actually going to hurt the company. ons stock rebounding by 5.7% reports the government will support the nationwide shantytown redevelopment program. tencent snapping out of that record losing streak of 10 days of losses, up 5.3%. it has wiped out $250 billion of shareholder wealth. by far the most across the globe. we saw dental -- double-digit growth in operating profit. there forward guidance is there over sh

they said policy was frontloaded. they took that out of the statement. 150 basis points since may. with a large deficit, with trade war still raging, and the federal reserve on talk toward more rate hikes, they are going to have to hike 50 basis points by the end of the year. , we are watching the bond market. the central bank watchlist. kathleen: china is someone you have to watch closely. they have made this announcement, taking steps via the credit market to help companies that are going to have a hard time making their loan payments. they are basically trying to backstop these companies and talking about deleveraging. that is a big issue. not having so much debt. one more challenge is the trade war, the story bloomberg news out today talking to several heads of big companies who are not going to wait to see the impact of tariffs. they are looking at adjusting their supply chains around the world. if there is less production in , that is not good for the chinese economy either. it will be interesting if the pvoc feels like they have to do more. we've got to keep an eye on the an

this ahead of frontloading on the consumption tax hike. driven higher by increased prospects fo rising demandr for lithium. , statehere in new york authorities opened an investigation into the trump family fortune after allegations of fraud reported by the new york times. the white house responded, calling the story misleading. we are joined by our senior international editor. this story is huge. it is really long, first of all. there are lots of details about how the trump family amassed their wealth. key, it seems, it claims president trump helped in dodging taxes for his parents. what are the implications? >> one of the implications you already mentioned, that state tax authorities in new york are looking into these allegations printed in the new york times. among them that the trump family , in building that real estate fortune, engaged in instances of outright fraud, evading potentially hundreds of millions of dollars in taxes. also -- president trump's deceased father, according to the newspaper's report, has lent him much more money

. >> was this seasonal, frontloading before the environmental curve six in, do you think the price isustainable? bezabeth: that will interesting to see. we do not know what will happen in the next few months. we know steel production into the first part of october is running at a very high level at an annualized rate. it is high rates currently. we are seeing the environment restrictions during the winter will be more targeted. there are steel mills that have made improvements and their performance. others may not have invested as much. said itsebastian bach is working well from his position. feel there is optimism over china with demand, and you expect the government when it comes to stimulus? elizabeth: i have been in china recently. certainly, the customers i was meeting with our positive and buoyant about the current economic environment for the next 12 months ahead. i think china has a number of ways it can stimulate the economy. the outlook is positive. there is strong demand for iron ore. >> you're talking about steel mill profitability in china, do you think the move to more c

you look at the export number released last week, it was very strong last month because of the frontloadinge of the exporters who try to ship their goods as early as possible, before the actual tariff is executed. so the third-quarter number has been some sort of interrupted by the trade impact in the tariff measure. we are expecting the fourth quarter numbers, in terms of trade, to slow significantly. at the same time, we saw the new pmi,t order numbers by the within the pmi was down to 48. last month's death was pretty bad. even though the gdp number can hold up because of the strength of the service sector, i think the external environment will start to bite probably at the end of this year and also early next year. haidi: we had a report earlier looking at the resurgence of local government financing vehicles to fund infrastructure projects. are we starting to see, in the absence of more wholesale stimulus, are we starting to see a return to the old school infrastructure driven, debt-driven message of propping up growth in china again? >> interestingly, so far, the number we have seen i

presumably there was some frontloading of exports before the tariffs came in. see how much is a reaction to that and how much is a genuine weakness in underlying exports. it just makes it even more difficult. china the pmi data out of shows how china's numbers have been lagging behind those of the u.s. and europe as well. that line in yellow at the bottom. it still about 50, it's not below the 50 level. how do you take the latest numbers out of china? is it a positive because it is still expanding or negative because it is so close to that threshold? richard: that is an important point. you seen several times when the pmi has been below 50. there has been a urgency for policy stimulus. the striking thing is, we all know is a problem, clearly there is a problem for exports, but the overall number is not so bad. the nonmanufacturing part of it is still fairly healthy as well. sure, there is a hit from american tariffs, but there is probably also some policy stimulus getting in their, they've done quite a lot already. easier credit, and it looks as though they get

>> you frontloaded the economy, so the tax cut is very stimulative, and it has resulted in a lot of moneyn the system and resulted in a lot of leverage. not aesult, it is surprise equities are doing well . one of the things i have been wondering about that is happening is when rates would back up as well. you are seeing both of those effects and certainly be interesting to watch going forward. tech really taking the brunt of the selloff overnight. part of that was due to the report chinese spies have infiltrated a hardware and affected companies like amazon and apple. a few months ago even at the start of the year, talking about the rotation away from growth into value, have we started seeing that, and should we? are think technology stocks long-duration stocks like bonds. you are getting cash flows in the future. if interest rates are moving up, there is the infinite -- there is the expectation those will go down. a little bit is to be expected. [speaking simultaneously] yes, i do. i think that is happening to your point about value. there is a rotation of value. i think the market is ge

everyone knows he said they are committed to frontload it preemptive policy to counter these heavy rupiahtresses. yet that really clear rate hikes and the progress they've made are enough to keep the rupiah steady. and one more thing i have to mention, people are saying maybe this has something to do with the big influx of tourists. i went and changed a lot of dollars to rupiah while i was there. maybe that is a factor as well. rateng as you've got more hikes expected, that current account improvement trend not firmly established, bloomberg economics, a 25 basis point hike today, just to give that rupiah a little more support. shery: wasn't it gorgeous? >> amazing. what can i say? shery: what else is on the central bank watchlist? >> italy for sure. the fact that their budget battle continues with the e.u., the government saying today, with got to help our citizens, she said the decision to raise spending and cut taxes is difficult, but necessary. the italians are insisting, we are going to meet that 2.4% target. the leadership not believing them. here's what the prime minister said. targ

less inventory they want it closer to point of sale versus toys "r" us, where they would sort of frontload that inventory ahead of the season and they'd be able to take those shipments and hold them longer from hasbro, from mattel so i think it's going to take a little bit long er to work that and find the right channels to reach the consumers properly but i don't think that inventory sale opportunity is lost permanently. >> is there any trade policy risk to any of the toymakers >> i think some of the risk is really just in what is made overseas and how it gets here. but remember, hasbro and mattel both make roughly -- or sell roughly half or more of their toys internationally so you don't have the same sort of exposure as if you're making everything overseas and bringing it to the u.s. as you do if you are making it overseas and sending it overseas. so i think there's a little bit of a hedge there for them. >> jaime, there's been trouble for hasbro and some of the toymakers in europe for some time beyond the toys russ issue. can you explain sort of your theory about how that gets fixed if

we also think there has been some frontloading of inventory and purchases ahead of trade with a reasonable certainty, you can expect more trade disruption ahead in 2019 with tariffs continuing to step up, almost potentially from the first of the year. i think the economy will look a lot weaker next year. we see it decelerating from the 3.5% pace in 2018 to closer to 2%. that deceleration will worry markets, so you go from a market this year, which has been about valuations. earnings, the economy is good, isn't the right price? next year, the focus will be on is the more deceleration in growth that we were expecting. guy: generally, it's true. have a forecast over the next two years by 2020, the u.s. economy will -- we could have u.s. growth at 0.5%. we think the u.s. is long in the tooth and we should slow down. if donald trump really succeeds in pulling the value chain back to the u.s., that will spur a mighty increase in u.s.. that could extend growth for another couple of years. the bigger risk is we are going to have some sort of slowdown in terms of the global economy in the next coup

some of that is frontloading the exports to get ahead of tariffs but china is not feeling this.d, look at the farmers, look at the businesses hurt by these tariffs. commodity prices rising. we have been hurt significantly more. that will change once the tariffs start taking more effect, especially if you go to 25%, but i'm not sure this is the way to deal with china, who does have a problem with stealing intellectual property. stuart: interesting debate. stay there. different subject for you, peter. marriott workers protesting because the hotel chain is adding robots to do some of their jobs. you say artificial intelligence will not result in fewer jobs. what do you say about this? row bobots are coming. >> it's a productivity-increasing innovation. there are luddites in every generation. this one, they carry cards with the afl-cio. if we applied logic and reasoning of the marriott workers now, in the 19th century, we wouldn't have had railroads. we would still be hauling freight in horse-drawn wagons. we wouldn't have trucks. we would have horse-drawn wagons. every innovation d