official data is not. the official data is not. there are two different to stories coming out of corporate america and the official economic data?re is a potential the earnings could be squeezed a little bit. so far, so good. but the risk is if it gets passed through. jon: what do you make of that? priya: until you have significant wage inflation, amazon is a big component, you could have a robot talking about rates, so that is the issue. we can have robots doing things overall, does that keep wage inflation low and does that mean that cpi stays. jon: productivity in america? priya: long-term, yes. i don't know if it happens over the next couple years. we need the big data. i think that could be a pretty long cycle. jon: some people bullish getting robot anchors a sometime soon. it is time for rapidfire questions. i'm going to give you one question, one short answer. will jay powell serve a second term? matt: and a third. priya: yes. iain: yes. jon: there we go. would you buy the spread widening and u.s. high-yield, yes or no? matt: yes. priya: no. iain: definitely. jon: treasury flattener or steepener? matt: steepener. priya: s

official data is not. why are there different stories from corporate america and the official economic data?e there's a potential let earnings could be squeezed. you need productivity to offset that pressure. the risk is that that gets passed through. jonathan: what do you make of that? >> until you have significant rate inflation, they are not going to have price pressure. if i'm not getting paid more, it harder for me to pay more. and on wage inflation, the big component, amazon is a big component. you could have a radar -- robot here next time talking about rates. jonathan: i hope not. >> that's the issue. if we could have robots doing things, does that keep rate inflation low? that's going to effectively mean that cbi itself stays. jonathan: productivity in america russian mark >> long-term, yes. we need all the big data. all of that has to seep through into the process and producing's. that to be a pretty long cycle. jonathan: i mentioned to some people -- time for some rapidfire questions. one question, one short answer if you can. will jay powell serve a second term? i just want to ge

official data is not. why are there two different stories coming out of corporate america and the official economic data? is a potential the earnings could be squeezed a little bit. you need productivity to go up to offset the price pressure. so far, so good. but there is a risk if it gets passed through. jonathan: what do you make of that? priya: until you have significant ways -- significant wage inflation, you not that have the price pressure. amazon is a big component, you can have a robot next time talking about rates. jonathan: i hope not. issue, we can the have robots doing things. overall, does that keep wage inflation low and does that mean that cpi stays. jonathan: do we punish productivity in america? priya: long-term, yes. i don't know if that happens in the next few years. we need the big data. all of that has to flow into the way we process and produce things. i think that could be a pretty long cycle. jonathan: some people bullish getting robot anchors sometime soon. it is time for rapidfire questions. i'm going to give you one question, one short answer. will jay powell serve a second ter

data. seniormost chinese economic officials giving reassurances.al observer might looks like china is fine. i don't think you have anything changed with regard to the fundamentals. u.s. benchmark yields, the highest in seven years. it is not a surprise some of the risk assets have been under pressure in recent days. i don't to change. today,looks like for people are us waged the train is not coming off the rails. that looks like it is going full steam ahead. looks like the national team might be jumping in. joining us from tokyo. let's remind you of the question of the day. will -- due to markets? you can join the conversation on the bloomberg page. let's get the first word news with debra mao. president trump has said it is likely missing journalist juliette: is -- jamal khashoggi is dead. trump warned the consequences of the killian would be severe. president trump: we will are waiting for investigations and for the results. we will have them soon. we will be making a statement, a strong statement, but we are waiting for the results of three diff

in china, were economic reports show a slowdown amid increasing fallout from the trade war with the united states. the latest data from china shows the trade war is taking its toll, officialacturing came in lower than expected, showing the general slowdown in a standoff with washington. >> in particular, what economists are focusing on is , thisw order's sub index is the advanced indicator of where things are heading. in view order sub index came the0, interpreted as dividing line between expansion and contraction. that suggests the number of new orders coming into the chinese reducers is actually falling, and that indicates that indeed the escalation intentions and the escalation in tariffs tween the u.s. and china are indeed taking its toll. caroline: now to italy and the controversial budget plan which the populist government is hanging on a view of the economy that could be too optimistic. a week after issuing targets, the figure underpinned that aim. in subsequenth years paints a rosier picture than actual forecasts. >> economists say it is not completely insane, but it is very optimistic as you said. the problem is growth targets that no analyst has so high. the gov

in china, economic reports show a slowdown amid increasing fallout from the trade war with the united states. >> the latest data from china showing the trade war is taking its toll, officialturing pmi came in lower than expected, showing the general slowdown in a standoff with washington. >> in particular, what economists are focusing on is the new order's sub index, this is the advanced indicator of where things are heading. the new order sub index came in 50-50, being interpreted as the dividing line between expansion and contraction. that suggests the number of new orders coming into the chinese producers is actually falling, and that indicates that indeed the in tensions and the escalation in tariffs between the u.s. and china are indeed taking its toll. caroline: now to italy and the controversial budget plan which the populist government is hanging on a view of the economy that could be too optimistic. a week after issuing targets, the figure underpinned that aim. it seems growth in subsequent years paints a rosier picture than actual forecasts. is the italian plan realistic? >> economists say it is not completely insane, but it is very optimistic as you said. the p

economic slowdown let's get to eunice yoon who has all the data and details for us. hey, eunice. >> october is the first full month after the u.s. and china imposed tariffs. the officialata showed that factory growth is growing at its weakest pace in two years. the numbers showed this, pmi slipped to 50.2 from 50.8 in september. that's a hair short of a contraction. there's a lot of attention on the new export orders. they show what future business could look like. the sub index dropped to 46.9 from 48. so factories are getting hit by slowing domestic demand and also by the deteriorating afraid teis between the u.s. and china the central bank set the yuan to its lowest level in ten years. that's been sparking a lot of debate here if the policymakers will allow the yuan to weaken past the psychologically important 7 level. stock market did relatively well despite this there was one stock that is not doing so well. that's the stock of wh group this is a top pork producer, it's listed in hong kong the company said its profits are taking a beating because of the trade war. the q3 numbers came in 31% down from a year ago. that's because of the high supplies as well as chin