i'm romaine bostick.ere's mark crumpton. >> a white house official says treasury secretary steve mnuchin didn't speak to president trump before: bank officials to discuss liquidity. the official says secretary mnuchin also convened the working group without coordinating with the president. on sunday the secretary said he had called the ceos of the nation's sixth biggest banks to calm their concerns about recent market volatility. theresa may is urging citizens divided over brexit to come together as political opponents look to kill the deal she's negotiating. of thetter to readers daily express newspaper, the prime minister said it's time to put aside our differences and focus on what really matters. may writes that the sooner parliament agrees on the deal, the sooner or and can focus on key domestic issues like education, home prices and health care. foreign minister says his country is working with other nations toward a possible human investigation into the killing of jamal khashoggi. speaking today th

. >> i'm romaine bostick. >> i'm taylor riggs. welcome to bloomberg markets. >> here the top stories we're following from around the world. u.s. stocks roar back after dropping to the brink of a bear market. president trump says it's a tremendous opportunity to buy after the worst pre-christmas slump on record. scary bonds haven't been all that scary this year. crude oil rallying today. ass little solace for exxon the biggest oil stocks head to its worst annual performance since 1981. let's get a quick check on the major benchmarks today. we are seeing a pretty strong rally. the rest -- the nasdaq up about 3%. strengthso seeing some in the dollar yen trade. the yen weakening for the first time in about a days versus the dollar. somewhat of a reversal from the games we saw in recent days. gold futures getting a bit of a bid and crude oil reversing after a big drop. copper which was higher on the day of a few minutes ago turning negative. taylor: so interesting you were talking about the broad-based increases we have seen in all the

romaine: i'm romaine bostick.mnuchin took to the phones this weekend and issued a statement confirming ample liquidity among the biggest banks in the u.s. as the market melted down. all without telling president trump beforehand. this was a little bit strange. we've had these type of phone calls before to banks but usually they were in times of deep crisis. thee are hearing from analysts of this is something unprecedented. very unusual for the treasury secretary to round up the ceos of the banks and also tweet about it. it blind-sided markets as we came in to this holiday week. everyone was expecting it to be quiet and suddenly we have all of this political noise and bluster. caroline: goldman sachs office lowest since 2016. was anybody worried about liquidity? >> no. that's the big question. why was steve mnuchin answering a question that no one had asked? it has backfired a bit because it has rattled investors. they are thinking where did this come from? it is still a bit of a head scratcher even today. romaine:

for more now, let's welcome romaine bostick. us about trading so far today, what are the main elements? romaine: a lot more volatility . stocksay, we had 700 that hits 52-week lows, because we have not seen that in a couple of years. that is extending today. normally when we see these big things of these new 52-week lows, what we typically get is the type of companies that you would expect to star -- sort of fall out of favor. bank of america, goldman sachs, alphabet, lockheed martin -- these are real companies with tangible revenue and earnings that are at their lows not only for the year but frankly, quite some years. >> if i know the answer, i wish i could, but it is a where folksnto 2019 think the record profits at we saw the beginning of this year are not going to sustain. january, we had about 5.6% run-up. fallingare in december about 11% or so in s&p. the worst december since 1930 something. that is quite a book and to the year. -- bookend to the year. the sentiment seems so negative that i'm almost afraid to ask this que

jason: for more on what is driving the trade today, let's welcome romaine bostick. break it down. romaine: we are basically pricing in deceleration. there is no doubt economic growth will decelerate. the question is by how much and how much do you discount stocks as a result. jason: you watch this every day come every minute. were you surprised by this selloff? the fourth day in a row. if people come in with more optimism this week? romaine: i'm not surprised because when you look at the selloff going back a couple of weeks ago there was no sort of net or bottom to catch people. the nextre looking to month or two where they could save here is a reason to buy in. we have a lot of large money managers locking in their profits. even those who have to remain exposed to equities have moved to defensive stocks. jason: you heard emma talk about technotion that trade -- not suffering quite as much. 1%.nasdaq down less than the majors, the s&p and the dow, the broader indices are done more. what is the tech story? andine: some of the bigger somewhat safe stocks people look be inthese points

joining us is romaine bostick. : they had a consent agreement with the government regarding a flavius investigation on how they handled user privacy. they were not allowed to share user data without their express permission. facebook said they did not violate this consent decree and have not shared user data in a way that would be out side the spirit of what that decree was. there is a reputational issue and a perception that facebook is playing semantics. investors are getting to the point where they feel like there has been enough of these stories of the course of the year, and it never stops, just keeps coming, one thing after another, and shares are selling off. david: we had a report from the senate intelligence committee saying they had not been forthright. our investors calling for a change fundamentally in facebook? lanhee: investors have been calling for it for quite some time and facebook would say they have made the changes. the big issue is investors want facebook to get ahead of any potential regulation

coanchor romaine bostick. romaine: we have seen the tech stocks rally a little bit.ga cap names, amazon, google. a couple of the cloud names rally into this. there was a little bit more about what they are choosing, but they do seem to be taking more of the valuation. david: it is still down. is there any indication about whether huawei is a driving force? a lot of speculation about that, but we do not know. up by a pretty significant margin when the market started, but there does seem to be a general shift that was directly linked to this idea on the trade side and the news about the arrest of the cfo certainly did not help matters. i think it definitely attribute into it. i should also point out, too, that even though we are getting a rebound in some of those tech names, we are also seeing a lot of heavy bonds in the defensive a me, which is more of bear signal. david: purchasing of equities -- romaine: they still are. you see that in real estate. that is the trend that really unfolded, even when we had a bounce is in early to mid november, it was the same thing. a

romaine bostick is here with the details.e call about -- the line on how bad it is in europe and china, -- , youat was more surprising talk about the about-face they did with regard to the earnings forecast. they are specifically talking about the dow sentiment in europe, specifically parcel delivery. on the ground delivery in europe . it is not living up to the volume they thought. airfreight side, coming in out of asian, the volume not only lower but the costs were higher. with highersue overpriced overnight delivery ed in slowerat lagg and cheaper deliveries, and issue in europe and in the u.s. all around from the u.s. to europe to asia, they are talking about a potential slowdown in their business that investors are not taking well. shares down as much as 10% today. their stock was on a nine day losing streak before monday and today at least seven analysts have lowered their price target. ubs going as low as 205. vonnie: fedex has taken the mantle of 3m for bellwether. morgan stanley called it jarring. year?e see this, ne

romaine bostick is here to explain all of this. ine: tilray was the pot stock on fire, a lot of that because of what people were looking at with regards to recreational use, but what we know is the medical side of the marijuana movement is much bigger. we are talking about in industry -- an industry that is expected to quintuple over the next five years, well above the pace for recreational use. so this partnership with novartis, they've had a deal with them in canada for a a while, but this expands it. brandon kennedy, the chief executive officer, gave in interview and talked about credibility. a hown thed idea that if you walk into a pharmacy or some other business and you see tilray, and you see the label next to it, it lends credibility to their product, credibility they do not have right now. david: maybe even in europe, you see that label any will believe in it. tilray makes the stuff and then novartis will market and sell it? romaine: they will work on marketing and on ways to market and commercialize it. they will co-brand c

rate strategy and our own romaine bostick, thank you.uick check of where the markets are because as we came into the show, every major averages off about 2%. the s&p is leading the the -- the declines. and more about apple and all of the chipmakers and the apple suppliers, next. this is bloomberg. ♪ ♪ >> this is bloomberg markets. i am taylor riggs. the white house has been sending mixed messages. president trump tweeted, claiming that the china has ,greed to decrease auto tariffs but there is nothing but radio silence. the president expects, and he is right, they are going to take their car tariffs down to zero. they were 15% and then they were knocked up to 40% as a retaliatory move, and i think you will see pretty soon, they'll be knocked down to zero. taylor: for more, i want to bring in our chief washington correspondent, kevin cirilli. what is the latest? yesterday, it seems like we had a deal, but markets thinking we do not have one. kevin: deal or no deal, that has the big question here in washington. thattary mnuchin echoing as

let's get insights and welcome romaine bostick to the desk and also mike reagan.dams.a martin gina, your perspective here. through onwe broke friday and are supporting levels, and the technical deteriorated. then we broke for the february- march level and all of that shored off. we do not have a lot of supports that were forming really resistance to count on an interims. the next true level of support is probably 2500 on the s&p 500. but you can remove 50 points pretty quickly, unfortunately. joe: i suddenly got a lot of notes on support levels. is it your sense that everybody has their level matter who they are, they are the technician? 2600 on friday looked like it might be a little bit of a support. the futures closed right on there and i think bad times like not when the earnings are coming in, we had some economic data, but it was not really supportive of risk that technicals take on a broader is lesst when there fundamental an intermission the trade-off of, we were eyeballing a bunch of them, the various lows throughout the year and do the them seemed to tri

romaine bostick will be stepping in. this is bloomberg. ♪ in. is is bloomberg. ♪ caroline: live from bloomberg world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. joe: and i'm joe weisenthal. caroline: u.s. stocks bouncing back off of lows. the nasdaq closed in the green. joe: the question is "what'd you miss?" caroline: shockwaves from the huawei arrest. trade relations between the u.s. and china hang in the balance. no deal in vienna over and it talks with other production cuts to the first time in nearly five years. biggest yields saw the drop since may over growing confidence that the fed will stop raising rates. romaine: the big news of the day is huawei's cfo arrested in canada on saturday. president trump was meeting with xi jinping. president trump saying earlier he was unaware the arrest was made at that time. for more, let's bring in shery ahn and an analyst with bloomberg intelligence. housing -- how important is its arrest with regards to the relationship between the u.s. and china, particularly trump and

romaine bostick will be stepping in on "what'd you miss?" we will be looking at losses in the homebuilder shares. we will discuss. this is bloomberg. ♪ mark: i am mark crumpton with bloomberg's first word news. following the funeral services at washington national cathedral, the remains of former president george h w bush are headed back to texas where he will be laid to rest thursday on the grounds of his presidential library and museum in kingston. george w. bush choked back tears during his eulogy today. said3rd president also about his father, it showed me what it means to be a president who served with integrity and ask with love in his heart for the citizens in our country. >> last friday, when i was told he had minutes to live, i called him. andguy answer the phone said i think he can hear you but he has not said anything for most of the day. i said that, i love you and you have been a wonderful father. and the last words he would ever say on earth were i love you too. mark: the other former presidents obama, clinton, and karcher, and

and i'm romaine bostick. we are now joined by cnn and bloomberg audiences.aylor: volatility is back with a vengeance. u.s. stocks slumped towards a bear market after the biggest rally in nearly a decade. and why one bond guru says there is little reason for all of the doom and gloom in u.s. corporate debt. cannabis crazee fair and 2019? a look at where investors can find opportunity next year in this half-hour. first, i want to get a quick check on the major averages. romain, we are back near the lows of the session. the s&p 500 is off almost 2% here and the dow yesterday, we had that big 1000 point gain a raising nearly half -- game, erasing nearly half of that. in every major sector, the s&p 500 is off as well. everything in the red, energy is the second worst performer, off 2.5% because oil prices, back per barrel. a $45 exxon is on its worst year since 1981. you have to wonder how these companies can survive with wti at 45. romaine: it is quite of a turnaround, and then a name like apple, which led this market higher, the $1 trillion company we popped th

we have romaine bostick. romaine: a bit of a relief rally today. a lot predicated on the news over the weekend that xi jinping and donald trump have reached some type of truce for the next 90 days. you are seeing the doubt, s&p, and nasdaq rallying. a rather positive day. index uping markets more than 2%. a lot of names in the index were in the crosshairs of the trade war. that risk removed. people may be looking into more relief. you look at the portrayed proxies in the u.s. like g.m. and forward. today.oving higher spacein the industrial benefiting from the potential detente that would give a boost to farmers and manufacturing and industrial industries hurt by the steel tariffs and retaliatory tariffs from china. tech names moving higher. apple coming off its worst month in about 10 years, rallying today. microsoft and amazon moving higher. let's look at some commodity spaces. we have the other big news today. oil rallying giving a pop to a lot of energy companies. copper futures up 1.75%. look at soybeans. this was in the crosshairs of the trade

shery: romaine bostick with the latest.till ahead, it looks like one side may be capitulating in the brussels fight. this is bloomberg. ♪ kevin: you are watching "balance of power." rome may be backing down from its fight with brussels. the prime minister is convincing his deputy prime minister to lower their planned deficit. the newspaper is not saying where it got the information. joining us now is maria. this would gain further momentum main does take the negotiator role with the eu. >> that's right. it is a surprise because we've heard this back-and-forth between the italian government and the european commission. they have been arguing we don't care. we are going to put the toughest .anguage the european commission is not used to that. and today we have a white flag. he will now deal with the negotiation. he is going to deal directly with jean-claude juncker. and this idea the italian government is open to lower the deficit to 1.9% of gdp. that is below the 2.4%. you knew this was the biggest sticking point. the europe

we have romaine bostick with us and also bloomberg intelligence analyst wu jin ho. 1.5%, seeing the dowown the s&p down 1.8%, and much worse in europe. is this a typical selloff? is everyone getting too excited? romaine: i do not think so. before the market opened in the u.s., you could make that case, but look at the past couple of hours. you are seeing legitimate , treasuriesthe yen are being bought, they yields are falling about eight basis points. a lot of activity in the german yields as well, so a lot of haven assets that did not get bids the last time we had selloffs are attracting a lot of attention. i am not so much if it is excitement or people trying to preserve their capital. atnie: the yen is trading 112.41. in thiso, we came morning and there was a bombshell piece of news that the ceo of huawei, the daughter of the ceo was arrested. how much is that playing into the narrative? trade: we have the tensions that we thought were ease, and this exasperated's the u.s.-china trade. given how much the suppliers rely on huawei as it relates at and equipment vendor, it is having a n

romaine bostick is with us halfway through the trading day.ade,e: as earlier trades though the dow and nasdaq are higher on the day, that we started up 2% for the nasdaq and nasdaq 100. a lot of the other tech indexes were strong and we have seen some get back in those gains. at the s&p 500 on an intraday basis, we are starting to see more of the double decline or triple decline from the top. that is concerning when you talk about how we fair heading into the close or tomorrow. on a day like today, where everything is rising, there is always going to be a noticeable laggard. have to go, and procter & gamble. and procter & gamble. the worst performing the major sectors right now. you are seeing that weakness spill over into defensive names. let's look at media names. we had that big deal with tribune and next are -- nextst the companiesf in the sector declining. discovery downey .4% after a atecast -- discovery down 8.4% after a forecast that was less. the actual revenue from ads up up, largelylding because most of those at sales came before th

romaine bostick is stepping in for me for "what'd you miss?" ♪ caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. joe: i'm joe weisenthal. caroline: here's a snapshot of how u.s. stocks close today. another big day of reversals. joe: the question is "what'd you miss?" caroline: inching forward on the road to a trade deal. china moves toward cutting its trade war tariffs on u.s. made autos. playing defense on his capitol hill to blue. the google ceo refusing claims of the search engine bias. meanwhile, tencent's sound of music. china's largest music service is at the lower end of its ipo range. tech takes on the hill. the google ceo forced the house joinedry committee -- the house judiciary committee addressing concerns over political bias. he said it is out of google's hands. >> is not possible for an individual employee or groups of employee to manipulate our search results. we have a robust framework, including many steps in the process. >> let me say a disagree. i think you can manipulate the process, it is a

. >> i am romaine bostick. ofoline: volatile week volatile day on quadruple witching.ter: the question is, would you miss? -- what did you miss? caroline: demand for the border wall sending a shutdown in peril. more monetary fiscal support will be rolled out in 2019 as china grapples with the economy. and tomorrow is expected to edge out black friday as the biggest shopping day of the year as shoppers rush to finish last-minute holiday shopping. remain: -- reporter: president trump spoke on the deadline today. mr. trump: it is possible. the chances are good because i don't think democrats care so much about maybe this issue, but it is a big issue. romaine: the senate is mulling it all over. we will bring in the national security team leader. how big of a deal is this, not so much in terms of how much of the government gets shut down but how could it get resolved? bill: we have had an open vote for hours on the senate floor to decide whether they can proceed with debate to have a vote. we know mike pence and president trump's son-in-law jared kushner a meeting with chuc

romaine bostick is stepping in for "what'd you miss?" we will look at the ripple effects of the flattening yield curve. from new york, this is bloomberg. caroline: ux stocks battered by trade, you'll concerns, brexit. here's how the u.s. stock market close. every single dow jones industrial average member in the red. the s&p 500 is having its worst day since october the 10th. the nasdaq is down by 3.8%. lukeore, let's bring in kawa. you are keeping an eye on the technical side of this equation on why we see such volume today. luke: yeah. i think if you want to bring this off as there is nothing new in terms of the news we got today, but as a study, you got to relatively hawkish -- and some unfavorable brexit headlines. we pushed below the 200 a moving average and all hack breaks loose -- heck breaks loose. joe: something you have been pointing out all day is that the trade truce narrative has holes in it. luke: the whole story of the year was divergent u.s. stocks outperforming because of their immunity from the trade war. now, there is

romaine bostick is stepping in for "what'd you miss?" at facebook'sking growing list of problems including a washington lawsuit. -- including a lawsuit from washington dc. this is bloomberg. ♪ bloomberg. ♪ caroline: live from bloomberg's world headquarters in new york. snapshot of how the u.s. stock market closed. down on the day. $300 billion worth off the s&p 500. not dovish enough. the fed trimmed their forecast for 2019. that sent assets sharply lower. think stocks are feeling the pain. why regional banks could be vulnerable for the economic growth ahead. washington adding to facebook's woes. growinge stresses as they get sued by washington. scarlet: all eyes on the fed -- romaine: all eyes on the fed. here are some highlights. note know the economy may be as kind to our forecast next year as it was this year. attests unforeseen events, as the year unfolds, may call for more than a slight change on the policy projections released today. additional tightening we have seen over the past couple months, along with signs of weaker growth

romaine: i'm romaine bostick. joe: i'm joe weisenthal.aroline: trade bringing us have come up 1.1% on the dow. is, "would youon miss?" caroline: progress in talks with tariffs between china and the u.s., we speak with a nobel laureate about the road ahead for trade and much more. and marijuana mergers on the mind, reports that -- has been in talks, sending stocks higher. and sitting on the sidelines, apple says it will hold off until 2022 offer an iphone that can connect the next generation 5g networks. ♪ time for instant replay, some of the because voices on bloomberg television today weighing in on the white house's trade truce. immediate focus on reducing auto tariffs. >> in the very short term, there will be changes in agriculture, so that is probably the easiest thing. >> there are a number that will be challenging, including issues around technology and the chinese subsidization of tech firms. >> the good news for all of us is that there is a truce, and i think if we work with our allies we will have agents. >> obviously come a trad

romaine bostick is stepping in for "what'd you miss?" we talk about the selloff with david wu of bank of america merrill lynch. this is bloomberg. ♪ ♪ caroline: breaking news of a rough and to a week with a steep selloff. here's how u.s. stock markets closed in the red. we have the worst week for the s&p 500 since march. even turning red into the energy stocks as well. opec above and beyond production cuts that were not expected. leaving usis really off percentage points. for more on today's jobs report, let's bring in david will. -- wu. you're just come back from china. what is the viewpoint from your perspective of the u.s.-chinese relation echo -- relation? david: to really understand what we are today, to a great extent, everything that has happened is result of u.s. midterm elections. coincidencek it is a day after trump lost the midterm, the north koreans canceled a meeting with mike pompeo. a week after trump lost the midterm, hamas fired 500 rockets at israel. two weeks after trump lost the midterm election, russian ships fire at

i want to welcome romaine bostick to the clan. "what'd you miss?" is a confidence vote. e: the reaction in the pound was interesting. the fact that it is holding onto gains that we had from earlier is sort of a good sign that the market is not completely freaked out. we are kind of in a strange time for the market. joe: i think it's worth pointing out, since we are talking about the pound, how mediocre and uninspiring the end of the u.s. cash trading was. ,&p closing up half a percent well off of the highs from earlier in the day. romaine: when was the last time we had a strong rally? joe: it really sustained itself. [over talk] caroline: we managed to reverse the declines. the reversal is the story of the week. romaine: i think it shows you to the type of people in the market in terms of day-to-day trading. caroline: it will be interesting how it plays out for risk on or risk off tomorrow. we all revert to the main story on whether or not theresa may can get her deal through parliament. she goes to the eu tomorrow and they are not changing. joe: i love the brexit story s

romaine bostick will be stepping in for me on "what'd you miss?"is bloomberg. ♪ caroline: breaking news. a rough close to the week. here is how u.s. stocks end of the trading day. the s&p 500 closing sub 2500. acrossa selloff the board. joe: a continuation of all of the ugliness we see now. what is going on in the market. big picture today and everything else. i want to bring in the head of macro strategy at macros technology. we ask everyone, why are people selling and why is no news helping to put a bid under this market? do you have an explanation? >> that is putting me on the spot right there. i think the number of things at play here, one thing important going into december, typically see -- you see a run-up. rallys, itarket takes on momentum of its own. on the other side, it's sort of does this reverse effect where you are not incentivized to be buying, you were incentivized to be closing down and backing things away and coming even on a day with no news, that is likely to be the trend. whatever the established trend is, that tends to be the

we welcome denise from boston, fidelity head of sector strategy, and romaine bostick. welcome.ometimes the hardest questions are the simplest. why? denise: history can offer insights to the why. what data sets have been predictive of a decline, it tells you what to watch going forward. we have seen credit spreads widened in the u.s. not nearly to the same degree as we have seen a severe defensive rotation in u.s. equities and what that tells me from historical perspective is that data that is week is outside the is outsidees -- weak the united states. juxtapose this with europe. leading indicators and industrial production are in contraction mode and have been for the better part of the last couple months. that is the area of the globe we need stabilization in. credit spreads in european banks are the area to watch. a lot of the news flow we are talking about and i look at has not been predictive in history of the declines we have seen. that area has. what are you recommending, are you recommending clients buy? denise: it depends on the timeframe. i study when the odds have cha

for more, we are joined by romaine bostick. first of all, is this new?een legal issues swirling around johnson and johnson to a certain extent, but this is hard-hitting. this document that reuters claims to have, it has popped up in a variety of lawn suits -- losses. johnson & johnson is saying their big powder is safe, asbestos free, they have all of to prove it, and they called the reuters report " one-sided, false, and inflammatory." but there is a broader issue here that this is not going away. gettinge been sued over this for years. they had a huge judgment against them in st. louis, which they are appealing, which was about $4.7 billion, and a couple other judgments where they have lost but are also appealing. this has a potential to become a bigger liability should gain life, no matter what the details. scarlet: and legal liability is really the concern here. what our analyst saying? if this is a known saying, this was essentially a legal problem for them, how are they squaring this? have a lot of analysts defending the stoxx. the narrative is the

and romaine for me bostick will be stepping in for "what'd you miss?" we look at the stimulus and the future of theresa may and brexit. this is bloomberg. ♪ caroline: live from bloomberg world headquarters in new york. here's how you stocks finish the day. half of its recent average daily moves. joe: the question is "what'd you miss?" caroline: the ecb pulls back the euro decline while the central bank cut its growth forecast. bank brutality. trade tensions continuing to weigh on the financials. and the incredible shrinking hedge funds. more bad news for money managers , and it is returning money to investors. the european central bank, led by the president, struck a more dovish tone in its final decision of the address earlier today. >> the lund are lying strength of domestic demand -- underlying strength of domestic demand is gradually rising inflation pressures. the outlook for inflation has been revised slightly up for 2018, and down for 19. the risks surrounding the euro area growth outlook can still be assessed as broadly balanced. the balance ris