vonnie: time for the first word news with kailey leinz. esident trump has abruptly changed u.s. policy in syria. he declared victory over islamic state forces and ordered american troops withdrawn. the move appeared to take the pentagon by surprise and could make heard it allies vulnerable to attack by turkish forces. the u.s. is making a potential overture to restart talks with kim jong-un. a representative says washington will review policies from providing -- of providing humanitarian aid to the regime. they will work to get negotiations back on track. the european union is stepping up its planning for a messy brexit. they have confirmed lands to let banks used a riveting clearinghouses in the u k for a year. there are measures to keep planes flying but do not give the u.k. the rights they have now. authorities have made the first arrests and europe's biggest ever money laundering case. arrests are tied to about $342 million in suspicious transactions. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 jo

let's get a check on the first word news with kailey leinz. kailey: president trump says he never told his former loyal -- former lawyer michael cohen to break the law. he also said that cohen pled guilty to criminal charges that were not criminal just to embarrass the president. he was given three years in prison. the u.s. labor market remains tight after what economists thought were cooling signs. filings fell to 206,000. pro-european ministers in theresa may's cabinet are trying to come up with a brexit the can live with. they may want may 2 forced parliament to informally vote on a range of brexit outcomes. there is no majority for any kind of divorce. in france, president emmanuel macron is considering a delay in next years tax cuts for large companies. that would be part of an effort to keep the budget deficit under the 3% imposed by the european union. delaying the tax cut would offset public expenditures. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countr

let's check on the "first word" news with kailey leinz. kailey: china will change an industrial policy the united states has criticized as protectionist full of beijing will replace it with a program with greater access for foreign countries. on twitter today, president trump cited the deadly attack in , issbourg france, another reason to build the wall between the u.s. and mexico. that came after a meeting with nancy pelosi and chuck schumer. the president said he would be proud to shut down the government if he does not get more money for government security. some government agencies run out of money on december 21. pelosi is closing in on the votes she needs to become speaker of the house. shehas promised opponents will set an expiration date on how long she will remain speaker. five democrats who signed a letter demanding new leadership on a signaling they will support pelosi. germany is stepping up efforts on the deutsche bank merger. they are studying ways to make it easier for the country's biggest lender to merge with commerzbank. t

i am kailey leinz. this is bloomberg.uy: thank you very much indeed. let's take a quick look at where we are with european markets, less than an hour and a half to go before the end of regular trading. one thing that stands out is that stands out isith the what is happening with the dax, down 20%, technically in a bear market. we will wait for the close to get confirmation. these things are usually judged at the close, but the german market is a big focus. most things are trading down as far as risk assets, but the dax stands out significantly. story,g on the huawei ericsson one of the few gainers in europe. it is a direct competitor. if they are removed from bidding on contracts, ericsson is likely to be the main beneficiary. sc micro on the downside. the markets obviously remain a key story. we will see where we get some closes in europe, but we will wait and see what does look like. vonnie: coming up, we speak with who joins erik schatzker to discuss the direction of the companies since taking his new role as ceo. this

this is kailey leinz. kailey: president trump is renewing threats to close the u.s.-mexico border. in a series of tweets this morning, the president is demanding funding will from obstructionist democrats. he vowed to cut off aid to guatemala and honduras and says there is word of a new margaret caravan and nothing being done to stop it. meanwhile, topped house democrats what all evidence related to the death of two includingreserved, surveillance videos. an 81 guatemalan boy died monday at a new mexico hospital. officials said today he had a flu. another child died in u.s. custody on december 8. investigation. russian foreign minister sergey lavrov said masco is hoping to receive clarification from the u.s. regarding the upcoming withdrawal from the u from syria -- withdrawal from syria. he says washington wants to shift its responsibility of fighting the islamic state two other partners. migrantsrrying 300 arrived safe today after nearly a week at sea. they were rescued near libya last week but the vessel had to travel through spain. italy and other countries reportedly refused t

i'm kailey leinz. this is bloomberg. vonnie. vonnie: thank you.eawaiting comments house of commons from u.k. prime minister theresa may, which you can watch at live go. may this week is fighting growing support for a second referendum. let's bring in bloomberg's david merritt. insisting --s actually, let's get to the u.k. premised of theresa may. before turning to brexit, let me go to two significant conclusions from the council. concernssed our utmost at what we have seen with the curtis streets -- the kurdish straits and russia's continued aggression. we stand ready to strengthen our support for affected areas of ukraine. workd, we also agree to together on tackling the spread of deliberate, large-scale, and systematic disinformation, including as part of hybrid warfare. on this, i outlined some of the world's leading work that the u.k. is doing in this field. i was clear that after we left the european union, the u.k. will continue to work closely with our european partners to uphold the international rules-based system and keep all of our peop

here is kailey leinz. the frontline says russian president vladimir putin was not insulted by trump's failure to meet with him. theident trump canceled meeting after russia's seizure of three ukrainian naval vessels. there are numerous issues the sides need to discuss. threatening to close the straight that is a passageway for nearly a third of all oil. u.s.resident says if the decides to block iran oil exports, no oil will be exported from the persian gulf. the straight is crucial to global energy surprise. italy's prime minister has indicated the populist government is about to back down in a budget standoff. he says he will make an offer soon to the european commission which rejected the budget. he insist the proposal will not jeopardize reforms. president trump paid his respects to former president george h.w. bush at the capital. now every day americans will get their chance. state.h will lie in a funeral be held at the washington national cathedral and he will be taken back to texas for burial. globa

kailey leinz. off kailey: guy, i want to look at market nical thing the has been looking at. incredible swings, on wednesday, 504 to 505 s&p stocks closing higher. are seeing the trend reverse and possible explanation why, ake a look at longer-term technical. this is percentage of s&p 500 companies that are above 200 average.ving you can see it is about 20% of supports above that key level. s&p 500 itself is about 10% dma. 200 look at longer term, not looking left h, a lot of recovery in the market. on ourse you can see that btv-go app. chart.ry nice mr. lovelight, what do you have? > looking at apple, this chart is breakdown of apple revenue segment, iphone revenue. we know that. 2019, british call from the venture all about services. bar, that is lue services making steady gains, but it holds secret, guy. duknow that 30% of apple services revenue is gaming ommission and that is a market bloomberg intelligence are excited about, they see robust for gaming 19 compared with 2018 and even say by 50% for grow apple in the gaming space until 2021. about alk all the time the iphon

here is the first word news with kailey leinz. : theresa may has decided to avert certain defeat on brexit calling on a crucial vote on her brexit proposal. she will ask e.u. leaders for better terms on the biggest sticking point, the future of the border between ireland and republic of ireland. president trump is looking for a new chief of staff, john kelly who is leaving at the end of the year. possible candidates include congressman mark meadows and matthew whitaker. opposition, 85% of the countries of the u.n. agreed on a deal that would ensure safe migration. more than 60,000 migrants have died on the move since 2000. the trump administration pulled out of the accord a year ago. the head of india's central-bank is quitting. he has been at odds with the finance ministry on the banking crisis and interest rates. -- india is closing in on italy for having the worst banks. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. thi

i am kailey leinz. this is bloomberg. david? david: thank you so much, kailey.in rudd has been watching china and its language since his time in university. through his work as prime minister of australia, now with an institute right here in new york. great to have you here. mr. rudd: good be with you, david. david: let's start with huawei and a woman named wanzhou meng. this is a straightforward allegationsn of involving iran. is there a larger geopolitical context? this is not a normal law enforcement matter, even though reports so far unofficially from the u.s. seem to indicate this is an investigation concerning a possible breach of u.s. sanctions against iran through the use of various technologies. but in the broader context of the u.s.-china relationship, this is major news. meng, is, madam chinese corporate royalty and is part of the influential set of corporate leaders in china, still very close to the government and to the party. so the way in which the chinese view this is it is not business as usual, this is unusual business. the final point is i thi

david: let's turn to kailey leinz here with first word news. kailey: the u.s.al overture to restart tech stocks in north korea. a representative say washington well look at policies -- will look at policies regarding kim jong-un's regime, discussing nuclear discussions back on track. the trump administration told congress it plans to sell its defense plans to turkey. that is a breakthrough. he was is hoping turkey may help its purchase of a russian missile system, but turkey still has plans to buy it. authorities have made the first arrest a bankers in what may be europe's biggest money laundering case. tied to the arrests are $340 million in suspicious transactions. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. lisa: thank you. coming up, the toy market up for grabs. we are going to look at how retailers are jocelyn for market ing for market share. this is bloomberg. share. this is bloomberg. ♪ >> this is "bloomberg daybreak." i'm k

i'm kailey leinz. this is bloomberg. vonnie: thank you. president trump cannot out run his past.mer attorney and advisor michael: taking responsibility -- michael cohen taking responsibility for crimes, but saying the president knows the truth. our investigative reporter. this is going on in the background and michael cohen is talking negatively about the president. how concerned should presidential be about this? : he is concerned with his statements about cohen degrading him and his family, so that is usually an indication that the president is reacting that it matters to him. it is getting under his skin and much further. there was an interesting piece in "the washington post," talking about the witnesses having being this isd already, and not how you would normally proceed in these kinds of cases. about whens saying this investigation will come to a conclusion? greg: i read that piece. the point is clear, yes, what the sentencing of people related to russia, it appears robert mueller has a substantial portion of what he is looking for. but in the michael flynn case as we repo

i am kailey leinz. this is bloomberg.e: how exhausted are facebook users by the drip of new allegations? this is bloomberg. ♪ live from london, i am guy johnson. vonnie: i am vonnie quinn. underway in the senate is the discussion of the stopgap spending bill and the border wall with chuck schumer speaking on the senate floor now. backys democrats will government funding bill to february 8 and president trump appears to have backed down from the wall demand. this is in back government funding bill to february total agreement with what has been said earlier. the idea that donald trump's senior aide kellyanne conway approve a stopgap spinning bill. bipartisan senate effort to avert a government shutdown and it does seem to be gaining steam. guy: let's turn back to corporate, facebook shares down a little bit today after the allowedis said to have companies access to more personal data than was previously disclosed. they allowed bing to see the names of users and friends, and a lot of other companies to read private messages.

kailey leinz is here with more.lly commission announced on friday they are opening up a case for pg&e for pipeline safety. they say they allegedly falsified records from 2012 to 2017. a little disturbing because it comes in the period after the 2010 explosion that killed eight people. also that they haven't followed all the safety of teachers. this would be -- save the their safety procedures. the downside today considering what we have seen over the past several months. all of these deep in the red after the camp fire. pg&e is being probed as to whether there is equipment started the fire. this company facing up to $25 billion of liabilities from wildfires in both 2017 and 2018. the commission said they could find them for these violations. when you add these concerns, it is not only regulatory concerns but monetary, putting pg&e to vastly underperforming utilities. increasedw could the regulatory impact the fight over the wildfires? kailey: the president said the findings are another example of why we are investig

kailey leinz metellus more. -- tell us more. stanley saying it is a competitive risk, even though it is in the early stages . they see it taking 200 basis points off of growth for ups and fedex, because that will grow as they build it out. cutting the price target to a low. and cutting the price target at fedex because of the share -- of the same risk. fedex heading toward the were stations march 2013 -- their worst day since 2013. and the committee has been dealing with several holiday season that were rough what untimely deliveries, they had to put a lot of expenditure into upgrading their systems, etc. more so than fedex and the rest of the dow jones transportation average, which they have been underperforming. add that to other issues like high feel costs, that is all adding pressure to the margin for ups, so now a competitive risk -- a lot of worry for investors here. vonnie: thank you. ups done more than 6%. and the market is down, down around 1% or less. "balance of power" is next. senator george mitchell is coming up. th

kailey leinz is here with more.ame was in above estimated earnings, but shares were at about a dollar 60. a big disconnect there with margin concerns. they are talking this up to the recent mma, they purchased , theya and mark caddo paid $4.5 billion which is a high valuation. not unusual for software companies, but left with a high multiple putting pressure on margins. and they don't see the margin pressure normalizing. ,hey expected to be week leaving one analyst to cut his earning estimates below 2019 and 2020 because of acquisitions and margin pressures. include thisen you acquisition in this earning, with that new acquisition is included, earnings miss, which is rare for adobe. 70% of analysts still have a buy rating on the stock, why? >> it still positive in the long-term, no one is downgrading and there are a few price target cuts but they have 90% recurring revenue business, clout businesses are growing more than 20% with acquisitions that should help strategically. in thexpected to go 31% first quarter. so

i'm kailey leinz, this is bloomberg. guy: thank you. coming up, the wild week on wall street. s&p near session lows. the dow falling 2%. 2.7 percent. this is bloomberg. ♪ guy: live from london, i'm guy johnson and this is "bloomberg markets," with u.s. markets firmly back in the red. trading near session lows now. volume is light. mike joins us from new york. contributors to the blog. a wild ride in 24 hours. incredible rally followed by significant drop. how do i invest money into thousand 19? hourseful has the last 24 been? money into invest thousand 19? -- in 2019? sometimes this marks the bottom of a stretch in the market. not always. especially given the holiday week, it is hard, wrong to make offbig conclusions based market reaction we have seen all week. guy: heather, the dax has underperformed in europe. what can i take away from price action that is useful? heather: right now i would not make huge decisions based on today. managers,of portfolio the last couple months have been a wash for european stocks. the dax has underperformed. it is full of cyclicals like autos a

i'm kailey leinz. this is bloomberg. vonnie: coming up, a bloomberg exclusive.e hear from the chairman and ceo bank american. brian moynihan weighs in on jay powell's rate pass and more. this is bloomberg. ♪ guy: live from london, i am guy johnson. vonnie: and in new york i am vonnie quinn. this is "bloomberg markets." bloomberg set them with visio bank of america at the blanks headquarters -- at the bank's headquarters in manhattan. brian: we were clear at the rate at which we were getting more neutral, and accommodating economy or taking accommodation out of the economy. we think that rate is 2.5% and 3.5%. at first they would be more cautious. i had a wise economics later a few years ago say to me everybody looks at the dot plots and gets excited. this is the person that has been in a room. -- they said you have to think of a person climbing a mountain. the question is where's the next handhold. not that they have a view 17 meetings down the line. the of a normal view of what would happen if rate structure was right and stuff. a lot of the path work with need

i'm kailey leinz. this is bloomberg. vonnie: thank you. -- realmber set off estate escape decline.es have been declining. issues like trade and brexit are adding uncertainty to real estate market so let's talk about the state of the industry , president and ceo of the world's largest real estate and investment firm. he joins us now in our new york studios. the volatility and markets has rattled almost everybody. was it to's -- what does it say to you? >> we have had a good run throughout the year. in the third quarter, our company and others in the sector grew and a healthy way. -- in a healthy way. a lot of that is driven by employment growth in the health sector. vonnie: that is causing its own problems. explain to us your report on the tech sector hiring and how it is affecting commercial real estate. robert: what you are seeing in some of the primary text markets -- tech markets, running out of space, rates are getting high, so the tech companies are movin and looking at secondary markets like cap, florida, denver, colorado, portland, oregon, austin, texas, pittsburgh. going af

kailey: juul really popular among youth, with parents and the fda up in arms. the company altria saying that if youth vaping continues to be a problem, it could put the entire market at risk. leinz get to the bank of america ceo brian moynihan, his insights on brexit. >> we spend more money. we have done a lot of work. operating with a u.k. business. we have the legal entities in place. terrific work. we are no closer to understanding what the rules are. we have to prepare for the worst. we are preparing on march 29 or whatever it is, for overall changes. there will not be a lot of guidance. we hope it is better. hope is not a strategy. how we are managing risk, liquidity, operations is working with clients and customers. how do we make sure that date is not a disruption in your life? it will be. the rules are not clear. it is tough. it is a tough political and social debate. society has been handed the outcome. we are trying to do our best. we will make it work. it is not a lot -- no one will get a new service, product, activity, for anything with brexit. at worse, they will lose some stuff. that is the problem. it takes a long time to shake through. david: we have seen effects