the doll underperforming as compared to other major indices as we have -- the dow underperforming, as compared to other major indices. the major industrials and health care leading today's session. take a look at this rotation. utilities which have been one of the top performing sectors in the past few months now underperforming fraud or markets. the panel showing the six-day change. optimism outmore there, including some positive views coming out of the brexit fund. we have been watching u.s. banks with quarterly earnings. look at the underperformance of europe banks going back to 2009 which was the last time the outperformed the u.s. banks. .ou can see real drag there are low yields, we profitability, and high consolidation hurdles in europe. all of that adding up to underperformance overseas. brexit ways on the whole scene weighs on the whole thing. we are hearing there is an agreement. represents a good deal both for the eu and the u.k. this is a fair, balanced agreement. i think everybody should be convinced about the deal. >> it is a very important fine for me. >> this is your p

it is underperformed. >> henry >> he makes a good case.e back to people love the product, all these things that are raised we have seen this for five years, each time the fundamental performance of the company is good, they can raise prices to drivers and on customers, still better than calling taxi i think growth is there. at some point we're going to settle in. mark is right, sentiment is terrible on uber and netflix and that's actually the time to get involved >> your point, people love it because it is cheap. >> it is way more convenient think way back nobody ever had to get taxi. it is much less convenient than pushing a button they figured out a great service. >> mark, what about the move to beyond driving, chefs, all kinds of things, presenting marketplace for short time work. is this part of making the argument that drivers are core to the platform or trying to be a marketplace for all kinds of temporary workers? >> i am not a lawyer, but it is hard to make the argument drivers aren't core to the platform i know they're making that

the french market is underperforming significantly.s you can see, the french market is down by .9%. the dax is down .3%. the ftse 100 down .4%. the dominant driver had been foreign-exchange for much of the week and what is happening with brexit. we await tomorrow's vote. we are getting underperformance from the cac. european close will be coming up. this is bloomberg. ♪ guy: live from london, i am guy johnson. vonnie: from new york, i am vonnie quinn. wpi trading is that $54 a barrel. it feels like oil trading is of its own dynamics. what happened? >> there has been a bit of a disconnect. as stocks get better, it looks like we are the tiptop, one good day away from all-time records. i think crude will catch up. crude has had difficulty getting over the $55 level. now we come back through. to get some positive momentum, needs to punch through the $55 one more time. vonnie: how much trading is going on during the cme, are we at peak dollar? alan: that is the question. will the dollar turn? betweenar was traded .93 and .99. .96 is the hal

they are right on par but still underperforming. in a note this morning they said they do not like this group and expect to have to go outside of them if you want to outperform the broader market for the rest of the year. >> i'm taking a look at nickel, which slid after fresh data pointed to threats of economic slowing. in japan it showed that exports continue to drop. so far nickel futures have risen closer to closer to 50 -- closer to 50%. august it signaled that the short-term supply tightness is easing. scarlet? stilll: still -- scarlet: with us is susan schwab and bloombergs vince cignarella -- bloomberg's vince cignarella. energy financials making their way to the market, with oil prices struggling, where do you want to be in this market? susan: i think we are seeing a lot of resilience there, it is risk on. what's important is looking at the data. we have facts to go off of, highly unusual in this market. listen to what the ceos are saying and how they are projecting their businesses going forward. that is where the actual va

actually underperforming the market right now down about 4% from the recent highs.ook at the chart. that's the one-ier had a nice ramp this year but again like proctor, below that up trend sorry to step on the toes big guy below the up trend this interesting if we roll in stapings that that's going to 51 that's the 200 day moving ank breakout earlier this year. >> you have a storied past when it coca-cola. >> i've been arguing with dan about coca-cola a long time i think i've been right. what changed about coca-cola in the last two years that allowed it to rerate maybe underperforming a bit. but certainly a moment where it was the stock that never grew the top line they structured the company. gotten boltsers in sword order process you think vitamin drinks the new way people consume athletic drinks and nutrition drinks and koobl will not at the center are you kidding me this is a global brand it should trade a high multiple and it's a global company. i stay long. >> what do you say about the charting. >> dan has it right here. >> wow >> we have seen a 4, 5% crawdown

they have been underperforming as well.tinue to see this trend, dave, where if you have xposure to china you can just assume underperformance? dave: well, we have seen kyagen asseen it with example, third-quarter earnings are coming up in a couple of weeks. we'll have a pretty good idea by the time you get results, about a company like caterpillar or boeing, the atomakers, perhaps, there are lot of companies that do a substantial amount of business n china that are laying out their results. you have to think there will be kiagen and es like more reactions like in the u.s. lab equipment stocks, it's a time. of taylor: bloomberg's dave wilson, thanks for joining me. scholars are calling for more cooperation with china. hat follows washington's decision to black list some chinese tech companies over involvement in alleged human abuses. daniel rosen, he is the founder there will oup says be collateral damage to other companies. with mike mcgee at a conference in denver. >> this is affecting those companies, the ability to their

cap underperforming, in the green, but underperforming. .> yields are lower we did not get the turnaround in rates. >> it seems banks do lose. taylor, what are you watching? pmi.ese services , it chart, the white line continues to fall into contraction territory. manufacturing still looking .etter the equity market is turning around a little bit. real estate and white, utilities and yellow, 20% going back over a year. there remains some skittishness in the market. taylor? ishareswatching the msci momentum etf. straight daysur of outflows, the worst week of the year. you have to take into account that much of this number comes from that large spike lower the came on tuesday, and outflow worth more than $300 million, the largest outflow of the year. if you don't include the rebalance, you might be tempted to say this goes to that rotation we sought last month, momentum and value, people leaving momentum. if you look at the holdings of fit into it does not that category of momentum, those saying momentum had become utilities, real estate, staples. if you look at the largest 27% is technology

i don't necessarily see a big sell off i just see a relative underperformance versus the market >> jon cox, we'll leave it there. head of european consumer equities if you want to get involved in the conversation, we are talking consumer goods and brexit so far. tweet us here at cnbc or directly >> coming up, in a cnbc exclusive, olaf scholz hits back at the feeling his country isn't spending enough. more after the break my gums are irritated. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. gum detoxify, from crest. (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't understanding tax code... it's understanding why that... will get him a body like that... move! ...that. your job isn't doing hard work... here. ...it's making her do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax tim

since that peak, stocks have underperformed cash, underperformed bonds and underperformed gold. we are right up against that level again and earnings are out of the way i don't see what will get us above the line i think once again we'll struggle right thereof. >> you know, carter should come on over. come on over, carter >> lots of questions for carter. >> thank you, will >> welcome >> will your view -- >> no treats nothing to eat >> no. >> we have a nut and fruit bag now. >> some super fruits for you. >> so in terms of your view on the s&p 500, will any of that change based on this deferred breakout of google or apple's earnings later on this week or any of the other big earnings -- >> there's lane potential and exploitation potential a stock sitting at a breakout juncture represents potential. if it breaks out, you've exploited some of that potential. jpmorgan represented potential it has broken out. nike, it has broken out. apple, it has broken out, appeared others have not once they're out of the way in terms of earnings, what is the potential to press us to big new highs.

the firm upgrading it to neutral from underperform boosting the price target to $95 a share.e will work more aggressively to make it accessible to everyone across the globe. nike hitting another all-time high today how far can nike run from here steve, what do you say >> i don't like nike for various reasons but you can't deny the chart. the chart is amazing it's up close to 30% and looks likes nothing is getting in the way. the way the stock recovered originally was the recovery in north america. then it became an international story and it's always been both. they seem to be hitting on every cylinder i'm waiting for when under armour, the underperformer, starts to perform. it seems like i'm turning blue in the face waiting for that day. >> do you think nike will be stung by what's going on in china? >> if anyone has been resilient, it's been nike, right? they're doing it with higher asps and also with a wholesaling business that seems to be very strong so it's another one of these arguments for why the multiple can go higher along with the stock. it traits in the stratosphe

but they raised the price target from $43 to $41 but go underperform so what do y'all want to do with this one >> i want to know who had this paper yesterday, scott because whoever we had unusual activity in this name. so i own that. i'll take that on. pete talked about it on the show yesterday, for unusual activity, activision and -- on the long side. instead of this being, oh, jon's patting himself on the back, he's exactly right, i'm saying, this read was exactly right, but whoever was buying these calls was dumping out of the stock, scott, in a big way yesterday. and you couldn't really tell, was that happening just because of broad market conditions you know what i mean but whatever the reason, somebody decided, you know what, i'm going to be getting out of the stock. i still want to be in, just like that upgrade you just spoke of from 41 to 43. that's like kissing your sister. they wanted to still be there in this trade, but didn't want as much risk, so they dumped out of the stock and own these calls instead. and whoever was buying all of those calls yesterday probably had a hi

l-brands you look for the reversion trades if you wanted to pick a renail i'm going with the underperformingl-brands. >> your job is to ask questions. it's a short show. why did we play what was the with the lady gaga you can't leave it hanging. >> we're coming back to that. >> i'm intrigued. >> take a deep breath. >> we're coming back to that. >> you're seeing that we have a news alert on the opioid maker contessa brewer. >> more specifically with the distributors we're talking about! committeesen cardinal health, amer source, bergen. looks like no settlement right now with the states and the counties who want the distributors to put up in a big way for all of the costs that they have been saddlesed with in the opioid crisis. the state's and counties basically say the settlement proposals are severely inadequate right now the proposal is $18 billion. what has happened the county executives came together and thanked the judge to allow the trial to move forward. that is scheduled on monday in ohio just one reminder that teva settled its outstanding litigation with oklahoma the night before th

that is why it is underperforming. 1.7%, but it is the dax -- the cac 40 is up 1.7% , but it is the dax charging ahead. big auto stock names are up near 5%. dax up near 2.75% at the close. there is definitely a squeeze today. banks doing incredibly well. mainlynks in particular, rbs and barclays and lloyds. our clays less so, lloyds and so, lloydslays less and rbs. these are leisure up, the sectors that have been beaten up by the global economy, today having a much better day. let's take a look at the bottom end of the market. food and beverage, nestle personal households and goods, the bond proxies not having such a good day. they are underperforming. beverage the only sector to be a negative territory. let's take a look at individual names to show you what is going on. how some of the u.k. domestic stocks are doing. builders, baron up 11%. romain, a cracking day if you own european stocks. a big move. we do not have a brexit deal. we do not have a trade deal. romaine: also a big day for all of the bulls in the u.s..

. >> no, i see -- i'm thinking at this point i want been such a relatively underperformer. it's been dragged down by big name j&j struggling and the managed care stocks. others fine. but the totality of it looks as though it's had the three-year underperformance at this point that is coming a he said. that's my thinking i'd rather be long. >> that's what i'm saying. >> i i didn't get that at all. i agree. i agree. >> i agree with you. >> i agree with. >> mike tie it off -- do you have a final thought. >> no, no that's it. >> you've been validated you've been validated you're cool. >> yeah. >> i mean we have -- j.en j was idiosyncratic issue we saw they had the bad news and the recall that's a bit of a headache the managed care space i think we have understand we have the election year fast approaching. this is in the cross hairs we could safely say but it's priced as such. i think that's the important thing. this is an outperforming secretarie >> i can't think of another sector maybe technology is one before we move to the next thing that's as sprawly as this. it includes e

or near all-time highs, at the surface, rotation away from growth and value and sectors that underperformedt markets, you've got capital markets that are free flowing, people are anxious about credit cycle. m and a, $3 trillion of volume, but under the surface, number of deals are down 15% there's a lot of mixed signals and data companies and boards are anxious on trade war, brexit, the election cycle, lots of reasons to be cautious when you talk to any individual ceo, they'll tell you they feel good about their business and are prone to action. it is a set of mixed messages in the market, people are generally forward leaning. corporate counters are down from a year ago. >> confidence can be one of the first things to turn before the data does. are you suggesting it is down enough, we could be looking toward recession or that sort of thing for next year? >> i don't think i would call it recession, confidence is softer than it was. you see good news on brexit or resolution of trade war, that confidence can turn quite fast >> morgan has a question from the studio >> great to have you, gregg,

but, you know, we are and underperform on developing assistance.y little. we are and underperform on refugees despite all the rhetoric. we have not taken large numbers. so it's in that sense that i think sometimes the differences are underappreciated by the rest of the world. janice stein, thank you very much forjoining us here. such a pleasure. good to see you again. and this is a night that canadians themselves will decide in the future because of this country, whether they want to continue with justin trudeau's progressive agenda or some version of it, or whether they want to shift to a more conservative one under andrew scheer. the results are still coming in, the liberals have 18, conservatives three, the new democratic party, one, and the greens showing a strong showing in atla ntic greens showing a strong showing in atlantic canada which they could claim. but there is still almost one hour to go before all of the voting stations close across this country. then, with all the votes counted we will see what kind of canada emerges and white cana

and did new zealand underperform? i don't think they we re underperform?owed to perform as they normally are. when they play the ball in hand usually, they look to escape in the best defence. but england time and time again shut them down, second and third tackles. i think new zealand made a bad mistake in their selection putting barrett in the back row, that gave england an advantage. i6 turnovers, that was the basis of the game. so england into the final, how much of that credit goes to eddiejones? england into the final, how much of that credit goes to eddie jones?‘ huge amount of credit goes to him. he had the foresight to pick the forward farrell. a lot of people, including me, didn't think that was the right thing. but he picked the two number seven is in the back row. and he was confident enough to bring all of his bench on against the double world champions. and defend what was a slender lead. at the end of the day, he has been proved absolutely right. this is the point, if they don't win the final, all of this is for nothing. and in terms of their

those are the out performers, underperformers.those play out as we hit the half way point. back to you. >> thank you now to arguably the most talked about stock in the entire market not tesla. it is beyond meat. shares off again concerned about two things, driving and selling. more competition and more shares as a lock up expires welcome back good to see you. we are the media we focus on the fact that stocks have gone from 220 to over 90. about a 250% gain. what do you think the stock's issue has been >> i think with the ipo lock up that was released yesterday. you have many investors that have incredible profits. stocks up about 4 x. that stock is off its high you have a certain amount of dislocation. how i look at it, markets are efficient. last year, they did $88 million in revenue on an annualized basis, there was $360 billion they had 36% gross profit margins. when you weigh that against any other meet product you are looking at tyson with 12% gross profit margin. this company continues to underpromise and overdeliver >> one

>> that is sort of a butterfly catalyst if you look at some stocks underperforming in europe. they are very value oriented we've seen that shift. more globally, two things. one is the lower risk stable type stocks were very puncture valued we've had some downward pressure you can only resist cap ex for so long. with debt capital as cheap as it is, it is impossible to resist temptation in worse case spend money on cap ex and to restructure. >> a year ago when the world was starting to fall apart in q 4, the faang stocks got hit what we saw was the market was not prepared to pay for a lyft or an uber then we saw them shift to defensives to stay invested, the market is paying more attention to valuation. the next step will be dividend yields and then cash because we are at the end of the market i think the market is trying to stay invested as much as it can. >> karen, back to you. >> showing the stock prices again for fiat and psa one of the fears has been about that industrial footprint. looking at the numbers of one plant in france. you have to say that the focus will be the fa

the reason is the underperformance is the balance sheet.g great but when the core prices -- the bottom line is the gearing in in whole story is what has people concerned. it's the move down in the stock. and ultimately their core business has not been affected as much as the share prices. but the cyclicality of the market and the gearing in that balance sheet means that investors think that the balance sheet is at risk they were supposed to lose. >> looking a moot schedule. >> bloody schedule. >> i'll tell you this was a perfect example i think of what marko was talking about where you have people p. o. boxed on wrong side you mentioned 33% short interest you have a company. >> i'm on the wrong side i'm long this stock from a lot high are to get it out there. it's been painful. >> might be all right. bounced oh off $10 short interest lost less than people expected and the stock up 5%. to me that's the type of thing where a stock stops going down on bad news, you probably are bottomed out here. >> glass half full today beak. >> unlike other

good for them. >> the stock is underperformed the overall market up 11% year to date.things are slowing then you can't be in the space but they have a 75% track record over the last two years of surprising to the up side. injury if they can control the costs and they can surprise csx is the probably the one that can do. >> but are they a bellwether for transports >> they used to be. >> the rails used to be. >> in the past. >> in the past but i mean there is nothing like as i mentioned i was out in the witch tau. i know we have to go in witch tau, kansas they have the freight trains going right through. and it's something romantic about railroads, no? with that said, 72 is consistent is in csx i like a good train. >> i a deep thought with a good train. >> the more you know. >> seems like the more you know. >> coming up, casino stocks -- nice coming up up this year but one name is betting on a c suite shake upturn the odds in the favor. stormy skies for in cloud. poing the biggest loss since 2016 don't go anywhere. much more "fast money" right after this >>> welcome back

$9000000.00 vehicles annually but some fear that the streamlining process could result in cuts underperforming plants and superfluous departments and it's that that's caused particular alarm at peugeot's german subsidiary opel all the more so because both france and italy have said they don't want to see any job losses in their countries. the head of u.s. plane maker of boeing has faced a 2nd grueling day of questioning from lawmakers in washington then he denied rumors he had offered to resign in the wake of the grounding of the 737 max jet unfollowed crashes in indonesia and ethiopia that killed 346 people boeing's profits have collapsed since its key motto with thousands of orders was banned from flying. last family members of the crash victims looked on tennessee congressman steve cohen attacked me and beg for his executive pay and his promises of accountability so you're saying you're not giving up any compensation at all you're continuing to work and make $30000000.00 a year after this horrific 2 accidents that caused all these people relatives to go to disappear to die you're not taking

a little bit of widening making that jump underperforming making that higher jump generally speakinge get are still pretty low going deep down the line when suggesting the flyer speaking to the investment grade. even the upper tears have some treasuries and bonds the municipal bond market valuations have improved those are more attractive in some cases after taxes than they are for treasuries >> kind of an amazing situation now. how does it end? $14 trillion in negative debt around the world 1.8, how does this play out? >> we think we are still in the lower for longer world maybe 10-year yield back up at 2%, maybe 2.5 at some stretch level. still a slow growth inflation world. actively holding down short-term rates. we don't see that changing anytime soon. >> hinting at the meeting to speeches that suggest to another rate cut they'll probably try to go on pause. because of deterioration and growth is still pretty serious >> i saw your tweet. did you punish your daughter about the comments >> she's been forgiven >> she said well how much couches are you going to buy the rest of your l

and continued underperformance in the u.s..the restructuring we are looking at is very much focused on those two businesses together with quite a complex group structure and group cost structure over the years. i'm not going to speculate on what that means, i think we intend to come back as part of -- as part of results in february. >> in terms of guidance you might be able to give can you give us any guidance on how much you expect the central project oak charge will be for the full year? previously guarded to that being around 650 two $700 million to produce a similar saving for 2020, i don't think those numbers have changed. but in addition to that i think what we are signaling is we do expect some incremental restructuring on top of that, which would result i think in costs going to 2020. longer expects to have the 11% return on equity for 2020, when is it reasonable, are you going to stick with the target and when is it reasonable to expect you might get there? what's changed over the course of the year i think is a fundam

$9000000.00 vehicles annually but some fear that the streamlining process could result in cuts underperforming plants and superfluous departments and it's that that's caused particular alarm at peugeot's german subsidiary opel all the more so because both france and italy have said they don't want to see any job losses in their countries. now the world organization for animal health is warning that's no country is immune to the risk of african swine fever asia has struggled to contain the deadly virus which was 1st detected in the world's largest book producer china last year it's since spread to vietnam cambodia and the philippines the outbreak has driven chinese prices to record levels and there are fears the virus could kill a quarter of the world thinks. around 2000 ukrainian farmers have been protesting in kiev against government plans to lift a ban on the sale of farmland. they were worried about foreigners taking control. the government said last month it would allow the sale of land starting next year to boost investment farmland has only been available for rent since the soviet period

but some fear that the streamlining process could result in cuts at underperforming plants and superfluities departments this is const particular alarm at peugeot's german subsidiary opel all the more so because both france and italy have said they don't want to see any job losses in various countries. now to some of the other global business stories making headlines today twitter will ban political advertising on its platform from november social media companies including twitter's rival facebook and the growing pressure to stop selling ads that spread inaccurate information or off paid for by forward governments trying to influence u.s. elections c.e.o. jack dorsey tweeted a political message reach should be at north port. boeing c.e.o. dennis miller in burke faced another grueling day in front of washington lawmakers tonight offering to resign in the wake of the grabbing of the 737 max jets which followed crashes in indonesia ethiopia that killed 346 people boeing's profits have collapsed since its key model was banned from flying. the world health organization. for animal health is warni

and especially when you look at a wells fargo that's been the underperformer that's when you get the beta trade. if things get a little bit better going forward for them. if we start to get closer to the end of their issues versus the beginning, which i'm sure we're there already. you can start to see that one outperform but the other ones are reacting, net interest income and net interest margins are reacting to an inverted yield curve that we've seen recently. so you're not going to see the true benefit or the tail wind going forward that we're seeing right now without that inversion of the yield curve >> the only other thing i would say on wells fargo is their revenue did in fact stay flat year over year was expected to decline slightly on the topline, with all the headlines they've had as of late, that wasn't as bad as it could have been. and john ssclus shrewsberry will join us. >> let's send it over to mike santoli for today's market dashboard. >> let's pick up on the financials and finding a floor looking at the financials' relative weighting in the s&p 500. and cracking the c

[closing bell] unprotected -- underperformer of the day. we are awaiting netflix to report results. don't think you got called netflix a tech company it is kind of its own company. it has so many of its idiosyncratic issues. >> there are still bid for havens particular coming from japan. headlines say japan treasuries rose in august. we had the results now from netflix. $524-quarter revenue billion in line with what analysts were looking for. the fourth quarter streaming paid that change, these are the numbers everyone is watching for. plus 7.6 million. what analysts were looking for which was not .3 2 million. netflix is disappointing here with its change net subscribers. caroline: that's despite stranger things at the game of thrones. off by 2% now. i think we will have to read through the entire statement before we get a direction. >> were going to dive in momentarily but let's dive into the action with our reporters. i am looking at an interesting divergence on the day the s&p 500 basically flat down slightly as you all were talking. look at the energy sector down 1.4% underperf

and continued underperformance in the u.s..turing we are looking at is very much focused on those two businesses together with quite a complex group structure and group cost structure we have built up over the years. i'm not going to speculate on what that means. we intend to come back in february. we will have more details then. speak to you.o in terms of guidance you might be able to give, can you give us guidance on how much you expect the central project overcharge would be for the full year? previously guided that around 650 to $700 million to produce a similar run rate saving for 2020. i do not think those numbers have changed. in addition to that, what we are signaling to that as we do expect restructuring on top of that. in someuld result additional severance costs going into 2020. you no longer expect 11% return on equity for 2020. are you still going to stick with that 11% target? when is it reasonable to expect we might get there? collects what has changed over the course of the year is a fundamentally different posi

that is the underperformance. sales, 4.7 billion euros. let's get your first word news. >> turkey has launched a military incursion into syria to force kurdish militants away from the region. ankara has fought separatists for years, repeatedly warning it will not allow the creation of a kurdish state on its southern border. president trump was asked what he would do if turkey wiped out the kurds. his response, he would wipe out turkey's economy. now to brexit. orest johnson -- boris johnson is set to hold last-minute talks. we have three weeks until the u.k. leaves the eu. each side blaming the other. if the leaders cannot reach an agreement, brexit talks could collapse entirely. more trouble for bowing. boeing. 737 jets still have to be grounded. the plane maker is setting up a repair center for the aircraft. this is after the federal aviation administration ordered -- on 30,000 flights. numeral -- rugby world cup matches have been canceled because of the impact of a typhoon. tournament organizers are not holding. it is the first time eve

you look at how it has performed, it is the big underperformers with just a 2% gain for hkx.long been a gateway into china, but the lse says it can find a more direct route to china plus a number of other headwinds. not least the ongoing trade war between the u.s. and china and the ongoing protests in hong kong. that is your stock of the hour. romaine: emma chandra, thanks. from new york and london, this is bloomberg. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. plus, get $250 back when you buy an eligible phone. that's simple. easy. awesome. call, click, or visit a store today. romaine: from london -- guy: from london, i'm guy johnson. romaine: from new york, i am romaine bostick. type the bloomberg business flash

health care is a classic example of one that has underperformed a lot.e know why, but that is one sector that if you're looking for defensives, that might be one place to think about. vincent: defensive fx and treasury haven't worked. the two-year was well bid, but i think that is because of where we've come from. you're just looking at some capitulation, and the hedging situation. just coming back into the market, maybe taking some back off the table. alix: my take away, it is all positioning. take a break. vincent cignarella, thank you very much. you can hear his trades coming up later in the hour. nate thooft of manulife investment management will be sticking with me. if you want to browse the charts and check out the features, go to gtv under terminal. caterpillar getting a little bit of color here. the cfo blames "greater economic uncertainty for weaker sales." that stock still down by 4% in premarket, off the lows of the session. also some broader china heads here. cctv says china will increase imports of ag products and imports of consumer go

facebook is the number-one underperformer on antitrust.mazon last week lowered next quarter's guidance, missed on profit. cloud does continue to be a bright spot. netflix, we know the story, a wide range of competition issues. that stock is in underperformer as well. vonnie: taylor, great work on a stranger faangs. tune in later on, taylor will be hosting. softbank unveiling a bailout for wework last week, rescuing the company from bankruptcy. guest says that the company will stay around, but needs to find the valuation that make sense for investors. joining us now is rajarshi ganguly. you founded in 2015. talk to us about wework. what is a correct valuation, why did this go so wrong? has fundamentally changed the way people work. it is a great company had a right price. softbank are great investors, so they would not have put this money and if they didn't think there was a future for wework. i will stay away from trying to determine what is the right valuation for it. not 40, 40 $5as billion, but the company has a lot of room for growth,

one other thing, on days when the market is down, have you noted this recently, ipo, they really underperform. look at this again after rallying last week, smile direct, crowd strike, fastly even beyond meat all down more than the rest of the market. back to you. >> thank you as the u.s. and china take steps to end their months long trade war by striking phase one of a potential trade deal, is a full deal still within reach? did anyone win round one >> in was a lot of fanfare coming out last week a lot of celebration and then you had chinese state media temper the excitement by saying number one, this is not a plan and number two this is not really an agreement. we have here is a foundation to work towards some kind of a plan to be signed on november 16 or 17 really those comments from china signal they are perhaps not on the same page as the u.s. in terps of how much has been decided and we're still in for a relatively long process while they negotiate out the last few weeks of this agreement. >> do you feel like the process could take longer based on what we have seen so far. the administra

competition, i want to take a look at another amazonr -- chart here, shares going back one year, underperforming the broader retail index. is it a regulatory overhang? what is it that we are seeing these shares drive higher given their dominance? >> given the natural anti-reaction, whether it is labor strikes, regulatory concern, i think those are all factoring into it. a lot of the underlying fundamentals come along terms of the business, -- long terms of the business, are still strong. taylor: thank you both for joining me. fiscal first quarter results were better than expected and boosted analyst confidence. microsoft is up 16% since june, trading near an all-time high. googleup, employees say the company is trying to keep them from speaking out, using google chrome to do so. we have the details, next. if you like bloomberg news, check us out on the radio, the oromberg app, bloomberg.com, in the u.s. on sirius xm. this is bloomberg. ♪ google, once famous are encouraging its employees to speak out against things they thought were wrong, is now being accused of trying to crush worker dissent. e

we also had financials higher, but a little bit of underperformance that we saw against the broader marketss we have seen rates moving lower despite the fact that equities were higher. we had the 10-year yield falling for a sixth consecutive session we moving toward 1.5%, so had financials underperforming a little bit. let's see how we are shaping up for the markets in asia. sophie: futures are narrowly mixed in asia. the sydney stocks could see some bounce back this friday, and we have south korean markets reopening as well. let's check in on the yen, which zone.ding in the 106 check out kiwi yields, slipping below 1% this friday morning. this as debt markets are very much in focus amid more signs of slowing global growth. we will get more hits perhaps on australia's great path with the rba financial stability review. amid questions of how much have amay be ahead, we rate cut decision expected from india and from the philippines, inflation likely sticking below the target range for a second straight month. from us trillion, retail sales saw a slight uptick and later this afternoon, malaysi

it is underperforming because the pound is trading higher because the irish and bring us -- the irishrime minister see a pathway to a deal. neither of them want to shut this thing down yet. the pound went up, the ftse 100 lag. .7%, the cac 40 up 1.33%. numbers,ke lvmh, good also the positive trade narrative. these are heavyweight luxury stocks that help your about. -- that help europe out. let's get an idea what the rotation looks like within the european space. basic resources, the miners like the possibility of a china deal. 2.14%. sector is up it is exposed to the trade narrative. banks are a high beta on the european growth story and they have been beaten up of late. they are bouncing back a bit. chemical sector doing better as well. that is a cyclical story that would benefit from a trade deal getting done. the bottom end of the market, not that many sectors down. they are a few. they are the defensive's, they are the high betas -- not the high betas, the bond proxies. food and beverages trading down. utilities and health care. the three sectors where we are risk off are not trad

. >>> the russell 2000 underperforming all the major averages dom chu is back on hq with more on thated, there has been this thesis among small caps that they're the ones more insulated to the trade war so as we talk about one of those proxies for sentiment in the market, small caps have become it and we just wanted to show all of you viewers out there how the state of play is kind of evolving so far in 2019 and the white line, we have the i-shares ruffle 2000 small cap. and in the orange, we have the s&p 500 etf, the spyder, which is ticker spy. as you can see up here we have some outperformance. quite a bit, 700 babies or so, for the large-cap stocks but throughout the course of 2019, it's been an interesting development. a play-by play, if you will. the reason why we say that is because we do see the small caps outperforming for the better part of the first three months of the year, you can see here. and all of a sudden, it became pretty tight they were moving neck and neck with each other, just around april through the early part of the summer then all of a sudden, we saw some lea

the stock had been underperforming. valuation came in -- it's our top five holding right now at about 8, 8 1/4 percent waiting. liz: if warren were sitting right here, he would roll his eyes and he would say fine, go ahead, i don't care because he only wants shareholders who believe in that berkshire story. what would you say to him? >> i believe in him. i believe even more so in berkshire hathaway stock. i've been riding for years -- i have been writing for years in our client letters the biggest elephant mr. buffett can bag in his own backyard at the ohm omaha zoo at his own stock. over the course of the great bull market, berkshire is up 270%, a big number, s&p is up 370%. those are our bookends, fuif yo will, liz, that we view the decisions we make. i think he would have been better served buying a lot more stock the past 20 years than some of the missed cues of capital allocation. liz: would you regret it if he makes a play for all of bank of america by raising cash and selling all the others? >> we will be backing

there are sectors that are underperforming quite a bit. department stores continue to underperform, and really most of them all >> the consumer is getting mixed messages, what do you mean >> i think right now, we have a little political chaos going on, there's a lot of activity based on tweets on both sides. the consumer is kind of mixing up that politics with the true fundamentals of where the economy is and how strong we actually are >> do you really think that they're paying that close attention to the political noise? and that is affecting what they're doing, whether they're going to the malt? >> yeah. >> it's chilling them somehow? >> it's not affecting them a the mall in particular it is but if the clothing stores and the typical -- what we think of as retail, that's not affecting them too much. the bigger purchases with auto, et cetera, that's where they might shutter back a little bit. everyone is fully employed best employment pretty much in our lifetimes and they're still spending, it's really a strong situation, i do think that

significantly below 2018 levels, citing weakness in the mercedes-benz truck division one notable underperformerlunging 20% after cutting the full year forecast for 2019 and 2020 wiping out gains for the year. citing tough competition in 5g markets and competitive pressure from china in particular i think we know which 5g player they're referring to. >> i have a hunch. thank you. >>> time for a news update sue herera has that. also at hq sue? >> indeed i do, jon. thanks so much here is what's happening at this hour, everyone mark esper lashing out at turkey for its military assault across the border and syrian kurdish fighters he spoke at the german marshall fund in prbrussels saying turkey is running the wrong direction, closer to russia. >> turkey put us in a terrible situation. the incursion was fixated on for one reason or another, there was not a possibility we were starting war with a nato ally. >> moscow court ordering pale whelan remain in jail until december 29th on espionage charges. he says he was set up in a politically motivated state. >>> lawyers for carlos ghosn seek dismissal of

a tax consultant hired by the club told officials it is, quote, severely underperforming.at maybe explains why the property has been recently not all that discerning when it comes to the type of events that it has looked to host. back in july of this year, you might remember the resort teaming up with a notorious miami strip club at that planned event at the president's doral resort, golfers were given the option to pay for a nude dancer who would then serve as their caddie girl while they shot around at the president's club. the planned itinerary was to have everybody head back to the strip club for what was described as a, quote, very tasteful bureau left coa tasteful burlesque show. that strip club event at the president's property was ultimately canceled when the family businesses decided not to go through with it. that's the same property in the news for hosting a pro-trump conference on a recent weekend. that's the conference in which a video was shown that depicted president trump shooting and murdering and decap taitating members of the news media. the event is set

and expectations, whether you exceed them or underperform, are so important after the first two or threes vote. and you can't wait until california. >> does biden need to win iowa or new hampshire? can he wait until south carolina? >> well, history is against waiting -- doing poorly in the first two states. there hasn't been a democratic nominee with one exception is in 1992 in the modern era who has gone on to be the nominee who didn't win either iowa or new hampshire. so his campaign has been trying to lower expectations particularly in iowa. i think that they are already very low in new hampshire. so he could survive. it is not so much how much he underperforms in iowa or new hampshire, it is by how much compared to what people are expecting. so if it is a pretty close finish and the polls right now are very close between warren and biden and even mayor pete thrown in there, so if he is pretty close to those two, he will be okay. >> tripp gabriel, always good to see you. thank you very much. and thank you elena who suddenly reappeared and now no longer th. we'll have you come on again

and there's also a big underperformance on names that are not as sensitive, those big and these are two elements. and what makes the class asset picture confusing is given the carnage we are seeing in equities, you would think there would be more of a bid to bond and fed futures and it reminds me of the inverse in july, when the three year yield was not moving during a great month for bonds, it was a sign of lingering optimism and the thirty-year yield is not moving much today, which might be a sign that there's pricing and economic outcomes that are not particularly good. shery: investors are positioning for more volatility ahead. is a fun market artifact, you can pick your poison, usually there is a reckoning of the uncertainty as there is a trending forecast. but now this has inverted and that means that people are paying extra and were expecting more volatility in the near term. if you read into that, a lot of the big market events, if you use the vix curve in college -- cover as your exit point, you would miss a lot of damage and the damage in february and in 2015 the chinese the d

are underperforming the rest of the world since august. what do you think that does to the dollar?llar is going to be turning in q4. that is our outlook for it. we think the fed will have to and will get ahead of the community. it is really the focus here in the immediate future, even more than the economic data. of course, those two things will drive together, and weak data will hasten the pace of fed cuts. i think the issue with the dollar is does the fed deliver when it needs to, not just on the rate that, which i think is pretty much guaranteed for the fmoc, but will we see some announcement of qe that suggests they are getting on top of the reserves in the system? anna: good morning to you, john. let me ask you, because we just heard from the fed with guy johnson, charles evans, he said there was a confirmation of the fomc. the market is expecting too much datatober, this week already foreseen by the fomc, but markets have not responded in that way, and if anything, markets have sort of rallied in 10 minutes with the european trading session, so what is your expectation then f

this is not fourth quarter of '18 hitting underperform this is different. people moved into a cash is king good mental healthty the train pain trade is for the reinflation trade to occur. >> even with that said with the waxing and waning and political pressures you stand by financials which upgraded in september. >> upgraded in september what we wanted to do when rates are low a lot of pain in there, bad news, valuation is attractive the underlying fd are okay we had a conference numbers came down a little bit. and we think overall the fundamentals are in decent shape, not fantastic but decent and for the valuation we think it's a pretty good risk we reward. >> chris, great to see you chris harvey of wells fargo. you like what chris had to say. >> i like the financials i'm long this has been a terrible week the last two days, i guess but i think that what has started as the rotation out of growth at any price toward value continues. and this is an area of i think very good value. >> yeah, 4.8% down in two days in banks someone was right a couple days ago an