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tv   Bloomberg Markets Americas  Bloomberg  September 21, 2018 1:30pm-3:30pm EDT

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accused of sexual assault when he was in high school. he told the annual values voter conference today to keep the faith. he predicted senators will do their jobs. >> president trump is nominated a stunningly successful individual. [applause] >> you watch the fight. you have watched the tactics. here is what i want to tell you. , judgevery near future kavanaugh will be on the united states supreme court. [applause] mark: kavanaugh has denied the allegations. the in his accuser have been invited to testify on monday. kavanaugh has agreed. negotiations continue with dr. ford's attorney. theresa may is accusing the european union of failing to
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treat the u.k. with respect. may get back today by flatly rejecting her brexit plan. she said the two sides are still far apart on the irish border and the post-brexit economic relationship. she repeated no deal is better than a bad deal. rescue teams are searching again today for hundreds of missing ferry passengers after an overcrowded boat capsized on the fake torilla the coast of tanzania thursday. at least 127 people are confirmed dead. officials say the vote may have been carrying as many as 500. like a torilla is the largest lake in africa. a federal appeals court is signaling it may reinstate a defamation lawsuit that sarah palin brought against the new york times. it was thrown out last year. the republican vice presidential nominee sued the newspaper over a june 27 editorial post after gunmen opened fire on republican lawmakers in virginia, winning
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congressman steve scalise. -- one in congressman steve scalise. if blamed a political action committee blogging the palin for violent incitement. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters, i am vonnie quinn. amanda: welcome to "bloomberg markets." we are joined by our audiences. vonnie: here are stories we are following.
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the british pound on pace for its worst day this year as three some a hit back at the u.k. for rejecting her brexit plans. which u.s. companies stand to gain the most from president trump's tariffs? the winners and losers. online clothing retailer far-fetched went public today. the stock is surging. we will talk to the company's ceo. but get a quick check on the markets this witching day. -- s&p 500 is about communication services becoming a part of that now. the dollar index has been showing weakness. up .3% on this. that is british pound weakness. down 1.4% following theresa may's statements. crude oil futures up. that's a good 1.1% gain. that the u.s. stock
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records,tting this is the price-to-book for the s&p 500 relative to the all country world index. look at the high levels it is hitting, not seen in decades. interesting to see valuations remain high. that is partly as a c emerging-market turmoil in recent weeks sending valuations down. for many people they are wondering just how late in the cycle we are and this is one to keep in mind. theresa may hitting back at the eu for projecting her brexit plans. even going as far to the accused him of failing to treat the u.k. with respect. the prime minister put the state of negotiations in stark terms. >> i have always said these negotiations will be tough and were always found to be tough in the final straight. while both sides wanted deal we have to face up to the fact that
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despite the progress we have made there are two big issues we remain a long way apart. susan: we have jeff bingaman from london. -- jess shankelman from london. one key sticking point is the irish border. do we get the impression there will be movement on that? they can come to some common ground? jess: exactly. the speech she gave today was full of rhetoric. she wasn't really angry woman. she looked up to humiliating headlines after that disappointing summit yesterday. 's freckled throughout that angry rhetoric -- sprinkled angryhout that an rhetoric is she is willing to make concessions on the irish border. vonnie: it seems like both of insulted each other now. jess: there is continuing
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dialogue going on as we enter the final stretch of the talks. they are hoping to reach a deal in the october eu council summit. there has been talk about there being an extra summit put on especially for brexit in november. we thought this week we might get a date for that. the eu came back and said we will not even make a deal in october. they gave theresa may a deadline to make further concessions before then. jess: one question is what happens in the event of no deal. we heard from members of the government they are operating with plans for no deal. is that realistic? will the sunrise the day after brexit if there is no deal with the eu? jess: the government has been putting forward a series of documents. out how different sectors will be affected by a no deal brexit and what the government plans to do with that.
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andy theresa may dug in says she is preparing for a no deal brexit. -- she alsocitizens told eu citizens living in the u.k. that she would protect their rights if they stay. the question is, will there be a no deal brexit? the guest you had on earlier today, and investor was saying as a citizen i'm fascinated by these talks but as an investor i'm pretty sure there will be a deal in the end. eu negotiations always come down to the wire. they always get very heated. both sides will dig in and show th they are doing the best they can to get his best the deal is possible. jess: great to have you with us, jess. impact's asset management was an early mover in sustainable businesses.
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even as the class gets more crowded, there are opportunities. >> companies solving environment of problems. there are more and more opportunities. we are seeing a huge shift away from coal, an even nuclear towards wind and solar. that is bringing in hundreds of billions of dollars in new capital every year. the transportation is seeing a revolution underway in electric vehicles. in the water space, infrastructure for more and more people. more consumption of water per capita. waste management and waste recycling. there are legions of the opportunities. jess: that is a sense -- amanda: there is a sense there will be a huge shift. in cummins are very entrenched in a may take longer and we may be an early innings. how the play that for an
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investment view? >> one factor is the switch of the product cycle. the original equipment manufacturing is use to ma used to a seven-your product cycle. the other is infrastructure. he can't just drive to a parking lot or gas station or even your home and easily plug-in electric vehicles. i think the key thing is not to bet on one any particular technology solution. we are putting money into company that are testing companies that have got communication technology and drivetrain optimization technology. amanda: one extraordinary thing is the way that the costs are approaching near zero. solar is the best example. is that minimize or diminished returns for investors? >> we have seen the chinese
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comment and undercut the market for solar panels supply. that has brought down gross margins for everybody. that has not been a great place. the downturn is utilities and the consumers benefiting from much lower prices. there have been great margins in the utility space, the power producers face. -- producer space. amanda: where is the risk in all of this? tose so it is paris, america, trump rolling back epa regulations in california. patty figure out investments? >> the environmentis not just about regulation. it's about new technologies and business processes that require subsidies for a while until the become cost competitive. 15 or 20 years ago when it was just getting off the ground and ,enewables needed a subsidy these days renewables are almost
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cost competitive with coal or gas fire generation. the real question is how do you balance the load. yes, policy is a risk in some areas. particularly around vehicle charging. demp's policies around carbonizing. jerry brown saying california should be zero carbon by 24 and -- 2045. amanda: you also invest in the real estate side. that an industry that is not innovative historically. is that improving? >> it is definitely more demand for well insulated homes that are attractive to live in. that does create opportunities for smart heating and ventilation and lighting companies. there is also building regulations in places like
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europe and japan and china with minimal energy usage. it's a bit complicated. it is great for active management to be able to navigate the opportunities. amanda: you have a typical horizon on an investment? infrastructure is probably longer-term than others. >> we are looking to find a well-positioned companies in the most attractive markets and the five to 10-year view that can keep a look on the price of the stock and buy it when it is cheap and not be afraid to sell down or sell out if the street or the city of london gets excited. when my be taking some money off the table temporarily, but will look to get i can with the price comes down. amanda: we have seen markets fully valued, somewhat argue they are recycled. are you thinking about keeping powder dry? >> in terms of running an
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environmental portfolio, it's important to blend different types of stocks. i growth of providing high-tech instrumentation solutions or monitoring. those tend to be late cycle stuff. we are trying to keep a nice balance in reasonably uncertain economic times. amanda: ian simm. vonnie: we are speaking with jose neves on the luxury goods company's runaway ipo. this is bloomberg. ♪
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vonnie: this is "bloomberg markets."
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latest forfor the business stories in the news. apple shares are down .6%. users may be experiencing issues with the app store and itunes. up at apple stores today to buy the latest version of their favorite device. they are spending more to do it this time. the new iphones are up to $200 more expensive than the ones they cannot last year. walmart is looking at ways to attract new hires. they asked employees which perks would be more meaningful to the workers. hourly workers were asked to rate potential incentives. they have already raised the starting weight and handed out -- starting wage and handed up bonuses this year. amanda: and opulent ipo,
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far-fetched, the stock is surging. alex joins us now from san francisco with a special guest. guest, have a stylish ofounder -- founder and ceo the company that just raised $885 million in the ipo, jose neves, thank you for joining us. luxury market for clothing and accessories. only 9% of that market is online. how you take advantage of the potential in the online selling market? jose: it's really very unique opportunity. you have this amazing global industry. $300 billion, the luxury goods industry. only 9% is online. things.ns there are two
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growth is online luxury, which is going to get a 25% in the next seven years. this is a $100 billion increment opportunity. there is still 75% of isnsactions -- the question how is technology on to help retailers improve the consumer experience? fetchs something at far we are passionate about. we're investing on those opportunities. alex: when i think about where online luxury goods failed to have taken off, it is asia. about one third of your sales revenue is into customers in asia. what is the success there?
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i know there is a partnership with -- very, very is exciting opportunity. chinese citizens are one third of the luxury industry. whether they shop at home or when they are shopping abroad. online penetration is very low in china. this means there is an incredible growth runway for farfestch. that led to the partnership with we have our own team, the farfetch china app and website. we have local services, local magazines. it is a truly localized experience. that is what is driving growth to the farfetch brand in that region.
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alex: with the partnership, talk about how you use we chat. the health retailers get onto stores on we chat. isn't anything you can break other markets? instagram is pushing hard it is selling more on the platform. is and amazing app. users.ever 900 million it is the instagram, plus paypal, plus china in one app. that is very powerful and very interesting. with our acquisition in china, we are powering the wechat site of 80 luxury brands. this is something we will probably see in the western atsappwith instagram or wh
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or other apps becoming closely integrated. alex: you are talking about a local you have gone in the asian market. getting local also means spending money. when you think about the other n, does aushing i localized approach applied in the western world? jose: absolutely. we currently operate in 12 languages. german, for example, french, spanish, italian. it is important to service these customers in the local language. systems.payment we obviously need to service to
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that. alex: quickly here, i know you were in 18 markets where you have same-day delivery. do we see one of 18 markets for you with same-day delivery in the next couple of years? jose: as we expand our network of brands, it is to leverage the inventory model. we are not our retailer. we connect customers to consumers through technology. that allows same-day delivery in multiple cities. we will see that range of cities absolutely expand in the near future. alex: potentially more customers getting their luxury items from farfetch the same day they are buying it. jose neves, thank you for
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joining us. vonnie: alex, thank you for the great interview. some breaking news. rob rosenstein is said to have suggested he secretly recorded president trump last year. the new york times is running with the headline that rod rosenstein suggested last year he secretly recorded president trump. we will follow that story closely and bring you any new information we can get. let's move on now. trade.talking here.e the column right peter, it says altra terrace may not be that big yet, they have turned to s -- turn this into an unreliable partner. the goal keeps shifting. now the president is suggesting he does want to negotiate with
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china again. peter: trop lisicki people off balance. that is -- trump likes to keep people off balance. one of his favorite expressions is, we will see or let's see. if entirely -- it is not an accident. that is the way he wants to do it. the work in real estate is a little harder than international affairs were people are certainty. amanda: on that front, the point that he was making it is piece many decadesre are of history where the u.s. was not reliable when it came to trade. it acted in ways that were counter to good relationships. that has not been true for a long time. it is very good trading parter, member of nato. overseeing and undermining of some of that that may not be immediately evident? peter: i think so. 1934 was a turning point when
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president roosevelt managed to get congress to pass the reciprocal trade agreement act. get regularized the idea that countries would negotiate with each other in a reciprocal way to bring down tariffs at the same time. with that it is it de- politicized tariff sai settings. the u.s. law became a template for other countries. era ofly launched the free trade, the era we are still in today. the call of questions whether that might be changing under president trump. vonnie: it is fascinating. we see it in europe and the european union. there is escalation of all the drama these days. tell us who the winners and losers are. chart i think we have a
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little flash on the screen showing a u.s. steelmaker that is clearly a winner. the world's largest steel maker will benefit from the protection. company, that's on the winner side. on the losers side, walmart will be passing along the cost of its consumers. samsonite luggage maker and toyota. vonnie: peter, we will check in with you again. i want to reiterate breaking news. new york times is saying progress in stein suggested last year he secretly recorded president trump. this is bloomberg. ♪
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mark: i'm mark crumpton with first word news. president trump continues to defend brett kavanaugh against an allegation of sexual assault. tweetedident
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today that his supreme court nominee is "a fine man with an ."peccable reputation the president also wondered why forder christine blasey did not file charges when she and cavanaugh were in high school. -- russian companies and individuals. "yet another act of unfair competition." he addressed reporters in the bosnian capital today, a day announced that a chinese military agency and its leader will face sanctions over russian weapons. european union council president diebold -- the european union council president says he believes it right that compromise is a -- still possibl.
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commons comes hours after prime minister theresa may criticized the eu for dismissing her brexit proposals. scads -- task has said some of her plans were a step in the right direction. the deathin libya say toll has climbed to at least 96, including civilians. or than 400 others have been wounded. the violence has shattered a u.n. broken cease-fire reached earlier this month. global news, 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪ caroline: 2:00 p.m. in new york,
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7:00 p.m. in london. i'm caroline hyde. scarlet: and i'm scarlet fu. ,aroline: brace yourself traders. two major events that push equity volumes sky high. apple's call. the latest iphone's go on sale around the world. hundreds of eager consumers lined up, undeterred by higher prices and minimal advances. mayday --the -- u.k. prime minister -- on her brexit strategy. all that and more, coming up. scarlet: but first we need to get a check on the markets. a lot of trading inequities with the s&p 500 making a new high. it is clear the 2900 resistance levels of the next stock are 3000. we are also looking at technology shares not getting such a lift. they had been the focus the past couple of days, especially with the faang trades fully back on, but we are paying attention because xlk is using facebook
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and alphabet after the close to will track the new communications sector. and a big check of the indian , but overall, europe and asia were higher. i know that caroline is keeping a close eye on this one -- the pound, the biggest drop since june. theresa may says the eu k that's the eu and the u.k. are at an impasse on some articles -- what else is new? caroline: what else is new? into thelet's dive action with our market reporters. abigail, get us started. abigail: it is quadruple witching day, as caroline was mentioning earlier, and it is thought to be a very volatile day. it is when futures and options expire at the same time. here is an intraday chart of the s&p 500, and while it may look a bit wild, this is actually an eight point range. i was speaking to someone
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earlier at interactive brokers, and he said what stands out the most is how orderly it is. if we hop into the bloomberg and use the average volume at time, in blue is the 20 day average volume. in aqua, that is the actual volume. the projected volume at the open difference at the the bottom -- 745% greater than the 24 day average. at the close, it is expected to be about 70% above the average. or might not be a lot of volatility, but certainly a lot of volume. look at thetaking a options market, and things are a little bit more subdued there. we saw the volatility in volume in the options market yesterday. today, when we look at it on the end of the week basis, this is one of the lowest volume days we have had in quite some time, even lower than we had on the last couple of quadruple witching days in june and march.
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you are looking at that end of the week options activity there on the chart. as we work through these last couple of hours of trading, it is certainly possible we could get a bit more of a spike as folks tend to close out old newtions and maybe enter ones. for now, not a lot to worry about. it does give you some insight into how traders are playing this. i can tell you now, call options are outpacing put options by a healthy margin today. julie? to dig into the sector reclassification that scarlet was talking about. if you take a look at the groups in the s&p 500 on the session, you will see that telecom stocks are up the most. that includes the traditional telecoms -- at&t and verizon's of the world, but it only represents about 2% of the total market cap of the index. information technology, little consumer discretionary, little change. there has been some scrambling the will be going on after close of trading to create a new communications services sector
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that will represent about 10% of the market cap of the index. this is some of the stocks going and if you break it down. some of the big tech heavyweights -- alphabet, facebook, twitter will be going into this new index as well as disney, viacom, a lot of the in,a stocks will be going moving from consumer discretionary into communications services. this was known about already -- the s&p 500 has already revealed to investors what this is going to be. you will see some positioning today that a lot of it has been done in advance. lisa? lisa: lisa: think -- lisa: thank you, julie. it looks like there has been a lot of activity already. -- quadrupletching witching, and reclassification of activity. if you look at the volatility metrics they are sleeping. the blue line is the vix, the white line is the move index, the options volatility index, takes a look at implied treasuryy in
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yields. both of them are near all-time given that we are seeing geopolitical volatility and higher interest rates environments. this raises the question are a lot of investment firms, who have been tiptoeing into going long volatility because it is cheap right now, and typically, these low volatility periods cannot last that long, especially when you are the with yields that are creeping higher. onoline: we will keep an eye yields, and a thank you to lisa and our entire markets teams. general rodney rosenstein recently suggested that in 2017, he might have secretly recorded president trump. that's according to the new york times. kevin, what does this mean? kevin: the deputy attorney general is refuting this allegation that just two weeks into his job, he suggested in record meetings that he
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conversations that he had with president trump and also invokes the 25th amendment, which would require the cabinet members to vote out president trump, to remove him from office. i want to read the deputy attorney general's statement. storys the new york times is inaccurate and factually inaccurate. i will not comment on a story based on anonymous sources that are biased against the department and are advancing their own personal agenda. based be clear on this -- on my personal dealings with the president, there is no basis to invoke the 25th amendment. all of this comes following the latest developments of the mueller probe, one week ago that the president's previous campaign cochairman paul manafort arranged a deal with the mueller team. another development. the deputyyou be -- attorney general is refuting the allegations, but not necessarily comforting news if you are president donald trump. scarlet: certainly not. put this into perspective for us. the president has made
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disparaging remarks about his attorney general, jeff sessions, saying he doesn't feel like he has an ag. rod rosenstein, for all intents and purposes, is in charge to the russian meddling into our election, right? isin: correct, and this someone who has been a staple around the white house in recent months. he was present the evening when the president nominated judge brett kavanaugh to the supreme court. he has also been someone who has frequently attended many of the white house personal society events. this is someone who clearly now has enemies inside the administration. that said, it comes following that anonymous new york times op-ed, in many of the arguments articulated in the were, one just broke could argue, parallel to the ones in the new york times op-ed. so rod rosenstein denying this account, but now he will face questions not only from the
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media, but from his boss. scarlet: our thanks to kevin cirilli, our chief washington correspondent. when you look at u.s. stocks, they might be on a steady two week advance, but we will have to see what happens next week. on monday, a 10% debtor you us tariff -- a u.s. tariff on $200 billion on worth of chinese goods. the market is pricing in 100% odds of a hike. on monday, we get an update on u.s. gdp and consumer goods, as well as employment numbers. henrietta, thank you so much for speaking with us and taking the time. of the different catalysts for next week, i want to start on the federal reserve. at this point, it is a foregone conclusion we get a rate hike next wednesday and potentially in december. how does the 10 move -- the fed move forward, keeping in mind
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that it has the traits tariffs it has to somehow quantify for 2015? and that is a difficult question, because so much of this is up in the air response to what china does for our terrace. l reserve has discuss all of do about 500 -- these tariffs. the president has indicated as soon as china responds correspondingly respond with 267 -- two hundred 67 billion dollars more terrace. you are seeing the retailers start to speak out a little bit, highlighting they will have to increase costs to consumers on day-to-day goods. it is a huge issue for the federal reserve to deal with and at the same time, we do not have any stimulative options should we enter into a recession. the fed has to increase rates, as far as i'm concerned. caroline: how much?
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at the moment you say the market is a depreciating the tariffs. how much would they have to hike? henrietta: it depends on how long they go on for. conversations with folks i am having on capitol hill suggest we are definitely into a place 19 will not be the end of this trade war, but we will be in the back half of 2019. certain manufacturers suggest this will be a 2020 story. the time horizon is getting much longer for the federal reserve to have to deal with the inflationary environment of these tariffs, and something that is underappreciated is the fact that we are not just going after china, but we have t mexico,n the eu, canada, and we have not even factored in the auto tariffs, which come into play in the next couple of months. scarlet: it is a multi-front trade war, as you illustrate so nicely. about thetle bit nafta talks. i feel like we have been in nafta talks for months, if not years at this point, given the
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rhetoric on the campaign trail. you have a lot of experience with watching how this all plays out with your years of experience in washington. at what point do the two sides settle down and hammer out the "i wantand get past the this, no, i want that? " henrietta: not until they have to. until the 11th hour is almost done, you will not get a deal. you are seeing that also play out with the eu and the u.k.. what we have right now is essentially a two-week period where we need legislation, the president needs to send some 30t to congress by september . quebec has its elections on october 1, and i strongly theret they will be -- will be 72 hours of some funky behavior between all the nations as we head into this latest deadline. i would also note that one of the goals here, the timeline is complicated, but the goal is to have the current mexican
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president signed the new nafta while he is still president, which ends on december 1. the strategy right now is to meet the congressional timelines needed to get president pena nieto to sign a document, but the reality is the upcoming in mexico will have to sign the new nafta as it falls on him as well. my clients ask me a lot, what is the hard and fast deadline? frankly, i think the 218 2018, rather, needs to pass this. they are fearful of the democrats getting control and 2019 and not approving the new nafta. the real hard and fast deadline , and if we2 can take it to the 11th hour, we will. we haven't seen
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as a market reaction in the u.k. to ongoing delays to the brexit deal between the eu and the u.k.. i know your main focus is on the u.s., but what do you make of the political never-ending story of brexit as well? henrietta: i think this is political necessity. i do not think you are seeing something play out about policy to just ask -- policy logistics. they have a lot to work out, but the reality is the same in the u.k. as it is here in d.c.. you need to have a clear illustration to your constituents that you are going to bat for them every day of the .eek, all day, every day that points to an 11th hour conclusion in the u.k. and the eu as well, which to my knowledge is november. we have a whole other month of that drama. fingers crossed, we get nafta worked out before then, but with eu,rds to the u.k. and the we will probably be seeing this back and forth and these press conferences through november. scarlet: very quickly, when you
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talk about 11th hour conclusions, is there anyway, based on that, that you can get a win-win outcome, or is there always some kind of flat outcome or lose-lose outcome? henrietta: it can be win-win. you can get advancements that allow for everybody to walk back from their original positions, which is largely what the united states has done. the perfect example would be the sunset clause in the nafta deal. bob lighthizer started out saying we want nafta to expire after three years. now it is 16 years. so bob lighthizer gets what he wants, we have the sunset clause that would not exist, and the mexicans and canadians have some time to work with this. , thank: henrietta treyz you so much. president trump is delivering remarks and participating in a signing ceremony appropriating
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funds for energy, water, and veterans affairs. you can watch this event on the bloomberg. from new york, this is bloomberg markets: the close. ♪ . ♪
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caroline: i'm caroline hyde. this is countdown to the close. time now for your top calls -- let's look at the big movers on the back of circle -- certain analyst recommendations. this is still an overweight rating on the back of a disappointing fourth-quarter revenue forecast. this is down 3.6%.
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ubs is upgrading at&t to buy, and saying wireless remains key to the company's growth. $74. and finally, goldman reiterating its buy rating on an $84 price target on activision, saying the company should expect significant sales for its new project, call of duty: black ops four. scarlet: let's go back to washington, because there are some fast-moving developments concerning brett kavanaugh. go back to kevin cirilli on capitol hill. what is the latest year when it comes to the president's comments regarding his supreme court nominee brett kavanaugh? kevin: i spoke with a staffer who is working with the senate judiciary committee. the latest is that there could to dr.xtended offer ford, which would allow for there to be some type of hearing on wednesday. according to this offer, as has
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been reported by other outlets choed by my source, the hearing would happen on wednesday and dr. ford would testify first, then judge kavanagh. questioned byd be an outside attorney. that is something that reportedly dr. ford's attorney says she is not willing to cooperate with, simply because she believes that she would like to have the members of the committee question her and she would also like to testify second. the bottom line, these talks are ongoing about what the specifics of next week's hearing would be. there is no official scheduled time, but very quickly a moving story as this develops. the president is facing criticism for his response on this because he has tweeted out a very controversial tweet earlier today, where he said i have no doubt that if they attack on dr. ford was as bad as she says, charges would have been immediately filed by either her or her loving parents.
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i asked that she bring those filings forward so we can learn the date, time, and place. that has drawn swift rebuke from victims rights advocates around the country. caroline: after days of restraint he lashes out. on capitol hill, where does it stand for judge kavanagh? is he likely in some way to make the supreme court? will it change the votes after all? kevin: that is such a great question, because we have been monitoring the public statements of lisa murkowski as well as susan collins, a republican from maine.
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forcefully against what the president had tweeted earlier this morning regarding that tweet, criticizing dr. ford. beyond that, as a matter of policy, senator collins has also suggested that she wants to see dr. ford testified in a public forum, and frankly, privately among the conversations with republican aides, they believe that people like senator murkowski and collins would ultimately get on board. i spoke to a source yesterday that suggested that the judiciary committee is urging the white house did not reach out to any of these lawmakers, including senator jeff retiring. is they want senate majority leader mitch mcconnell's office to usher this through. they are rapidly suggesting that whatever happens, judge kavanagh will ultimately be confirmed. i can tell you that the general thinking, at least here in the senate, is that even if it is after the midterm elections, senate majority leader mitch mcconnell would take no issue with getting judge kavanagh confirmed her in a lame-duck congress. keeping it with the white house. we thank you for all of that information from capitol hill. let's see how the market is reacting on a day of very high volumes. as it istching day, known. the s&p 500 is clinging to the record gains, and on the downside, the tech names, and
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financials also showing weakness today. overall, this has been a great .4% onbally, up msci. the pound is down as well. this is bloomberg. ♪
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caroline: president donald trump delivering remarks and participating in a signing debtory, brokerage inc. appropriating funds for energy, water, and veterans affairs, and unless vegas is where this is happening. you can watch this function using live go on the bloomberg. up, we willing discuss robert lighthizer's heavy touch. this is bloomberg. ♪ y touch. this is bloomberg. ♪
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mark: i'm mark crumpton with first word news. deputy attorney general rod rosenstein is denying a new york times report that suggested he secretly recorded president
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trump at the white house last year. anonymouscites sources who say rosenstein wanted to expose the chaos consuming the administration. the report also says he discussed recruiting crab and members -- cabinet members to invoke the 25th amendment to remove the president of office for being unfit. rosenstein calls the story "inaccurate and factually incorrect." group of 75 group of 75 women t a washington hotel to voice their support for supreme court nominee brett kavanaugh, who has been accused of sexually assaulting a woman at a house party when both were teenagers. one woman, a longtime friend of kavanagh's, insisted the allegation, made by dr. christine blasey ford, was false. said thed why, she charge is inconsistent with everything will thing we all know about him. kavanagh has denied the accusation, and senate republicans have scheduled him to testify at a hearing on monday.
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it is unclear whether dr. ford will appear. british prime minister theresa may accuses the european union of failing to treat the u.k. with respect. >> yesterday, donald tusk said our proposals would undermine the single market. he did not explain how in any detail or make any counterproposals. so we are at an impasse. prime minister may says the two sides are still torn apart on two issues -- the irish border and the] economic relationship. she repeated that no deal is better than a bad deal. be gone, florence may but the storm is still causing problems for people in south carolina. a new round of evacuations was ordered today is the trillions of gallons of water dumped by florence continue to head downstream, raising river levels and threatening more destruction. 55,000 homes and businesses remain without power.
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global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪ scarlet: from bloomberg world headquarters in new york, this is bloomberg markets: the close. i'm scarlet fu. caroline: and i'm caroline hyde. we are 90 minutes from the end of the trading day. meanwhile, we have been talking about how much treasury yields are rising, and now investors are responding. lisa abramowicz has more on the demand. lisa: thank you. one big thing has been as treasury yields rise, at what point will investors who have been pushed into riskier assets for yields come back to the u.s. government bond market, seeking safety and yields now that you
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can actually get something for your money? the answer is it does seem like that is happening with pensions, if you take a look at federal reserve data showing what purchases pensions are making. you can see they have increased their spending on u.s. treasuries and decreased their relative spending on corporate bonds, but what you are looking at now is the gap, the difference between the purchase of treasuries and corporate. this has widened out actually to the highest levels since 2001. this suggests they are actually even rotating back into treasuries, out of riskier assets, including corporate debt in order to take advantage of the yield. just revise, data, and through the end of june. but it is interesting to me to see that we are getting some rotation back to treasuries, you are getting yields. there is no alternative and it does not apply anymore -- there is an alternative and perhaps pensions are finding it. caroline? caroline: lisa abramowicz, making sense of the noisy data.
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-- is working to stabilize its , driving farm output to reduce the budget deficit. down withday, i sat the president of zimbabwe to discuss the nation's current relationship with china. >> china has been very friendly to a zimbabwe, and we have continued that friendship and have no problem with china at all. but i am embracing the entire -- toity who says in but say zimbabwe is open for business -- not only to china, but to the entire international community. fact, i'm helping investors coming in from across the world. eu hadpast, the sanctions against us so the wasre european community closed out because of the eu sanctions on us. sanctions on us,
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they are closed out, but we are now seeing leaders open up and open up. fortunately, what was between us and britain [inaudible] , it is time that things change. [inaudible] on the 24th of november last year. to come a foreign enemy to me and talked about 24 minutes about nonaggression. and i met 10 or so ministers from the united kingdom and the rapport and their engagement with britain is going on very, very well. and germany, the chancellor, she has sent another minister. again, our business with germany is coming back.
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the same with france. so we feel that the entire world is coming up. i have seen several high-level officials from the u.s. administration who i have met, and i also believe that the signals coming from washington are indicative of an engagement and --.zimbabwe but we still have work with india, brazil, china, and so on. .aroline: a talkative person the president of zimbabwe. -- now a dell developing developing story out of washington, deputy attorney general apparently claimed -- washington,what is the question? >> it has been asked a lot in the past 20 minutes. there is a lot we have to
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determine here, but it feels like maybe this was an attempt to get some information out that would sully another person in the justice department. obviously, trump has said he is not happy with sessions and indicated he would put his own person in charge after the midterms. mueller has been a point of great frustration for him and that has really been wrapping up and your it hating him more ever since manafort agreed to cooperate as part of a plea deal. you also have: who is guilty, and on this friday we are finding out a number of things, including this big bombshell -- where did it come from and how did it come out? i do not know. one thing i will throw out here is i noticed there was a reference with a spokesperson to the justice department, saying rosenstein may have made this comment sarcastically. that is something for us to keep in mind as we process all of this. leaked, do we was have any sense of who would be the party behind it and how they see this playing out? >> again, i think there could be an effort here to tarnish rosenstein's reputation.
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this supposedly occurred in april 2017 and those very frantic days after comey had been fired from the fbi. a lot of chaos was going on in the department, andrew mccabe was acting director, and these conversations supposedly occurred. whichtein has denied it, creates a suggestion that there is context we are not aware of involving why this would be coming out now, except to question his impartiality. i cannot imagine. that is rising up at a critical moment for us. thank you so much for keeping us up-to-date. any further developments, we will have you back on to give us the necessary context. let's turn to what else is happening in washington. thee -- from nafta to mounting trade war in china is none other than robert lighthizer. we are joined by shaun donovan, the author of this piece in bloomberg businessweek. everyone knows he is an economic protectionist, and is in the
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same camp as peter navarro. what more have we learned about this very important person when it comes to the president of the trade policy? sean: i think robert lighthizer portfascinating part, in -- fascinating person, in part, because it we have had a lot of -- wilbur rosss out there is another general, a very public general, but robert lighthizer is this key behind-the-scenes player, who has been very conscious to keep his profile down in some way. guide -- guyely a who is not shy in advocating a more protectionist stance for the u.s., and would describe himself as a fellow traveler with president trump. different from peter navarro, who often gets more press than bob lighthizer. in one very important aspect, and that is that bob lighthizer
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is a creature of washington. he is very practice that washington politics and really knows the trade law and how to deliver on some of these often vague and sometimes impetuous trade ideas you get out of the president. you paint such a brilliant picture throughout your piece, talking about his brother and the lattice lifestyle -- lavish lifestyle he managed to build up, but he has always been a hawk on china. sean: absolutely. that is the other thing. he is front and center in these nafta negotiations, engaging with the eu and japan, but this is a man that has been preparing for one battle the last decade or two, against china. you can go back and he is there writtenand congressional testimony, laying out a course of action that looks a lot like what is playing out now. that is testing the boundaries of the wto and the rules there,
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pushing china harder than anyone has and taking a skeptical view at the whole establishment position of allowing china into the wto and economic engagement there. so china is the battle that bob -- bob lighthizer has been fight for a long time. he was brought out of retirement to do that. he was about to retire in palm beach, and instead, here he is leading this fight. thatine: i love the quote you used from the mexican economic minister, saying any is notere light hiser responsible for the architecture does not see the light of day. we thank you. breaking news to bring to you -- wells fargo ceo tim sloan has been talking to us and said he is planning on staying at the helm until he is 65. "i will stay in this role until the board believes i'm not the
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right person for the role, and iey believe i do, i believe am. " a great perspective in terms of his determination to stay in a position with a lot of job cuts. theirlearned a lot about plans of job cuts for as much as 10% of their workforce, which is a sizable number. it could be as 26,000 people. this comes at an interesting time. role,two years into the he is coming up on his anniversary of becoming ceo, and it is interesting how to weigh what has changed at wells fargo. a lot has happened since then. we had the fake accounts scandal, but we have had little events in between, including the federal reserve's cap on their asset growth. it has caused a lot of challenges for the bank. keep in tim sloan charge and make sure the bank's growing where it needs to be and cleaning up the mess that started around two years ago?
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scarlet: how much of his job is devoted to cleaning up the mess as opposed to growing the bank, but not being able to grow the assets? that is a challenge, isn't it? catherine: there is, and it is a hard balance. there has been a lot of things that popped up over the past few years, including a low housing income credits scandal, and there is a lot to clean up and it is hard to grow with the federal reserve has eyes on you. for sloan, i think that is a huge challenge. caroline: he says it is an execution phase and they are focusing on investor return -- finally. catherine: and that is good news, because wells fargo has been one of the worst-performing stocks in the bank index over the past year. it is good news for investors to hear that the bank is focusing on ways it can grow and ways they can clean up after this. scarlet: there is another quote from your store in which you said that she said we have not moved as quickly as i would have
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ised, and some of that because of my leadership. are there some i wish we could have moved more quickly on? absolutely. what might he be referring to hear? i'm not sure what decisions he thinks they have moved too slowly, but i think it is a good sign that a ceo is reflective of the two years of which he has been in charge. a crazy two years. a lot has been announced and a lot of challenges, and for him to say we are looking at it and trying to figure out what are the bits that have made me concernedof it or about the growth, that is a good sign from him. theline: what about environment which we are currently in? their rates are rising at the moment, which might help the domestically focused banks. where does wells fargo stand when it talks about growth opportunities that tim sloan is saying he is seeing? >> it is an interesting point. wells fargo has a lot of different operations -- retail
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banking, wealth management, and higher interest rates would help them, but they are constrained. the federal reserve cap is a limiter on where wells fargo can go and how much it can provide for investors, but we are also starting from a point of, it has been a rough two years for the second worst-performing stock in that bank index. if they can turn things around, maybe it will be a potentially good growth story. caroline: great insight from that peaks. thank you. apple? newhungry for iphone models hits stores today, and they are bigger and more expensive than ever. consumers willing to shell out more on them? we will find out next. this is bloomberg. ♪
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caroline: i'm caroline hyde and this is countdown to the close. our stock of the hour is nike's newest public company -- online farfetchdd hub opened for the first time. this is a u.k. based company with a portuguese founder. it is truly global -- that is watches it.erg at one point, the shares at $30 at one point and they are down now to around $29. . still pretty high compared to where they priced. luxury retail is having a good year so far. this is the bloomberg intelligence legend three goods top your index, and it is up 13% on the year. it would probably be up a little -- included, down 62%. and also throw in e-commerce to to equation and it is catnip
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investors, as the ceo said today when he spoke with bloomberg. take a listen. growth of is the online luxury, which is going to go to 25% in the next seven years, according to banks, this is a $100 billion incremental onlinenity in a line -- luxury. but that is still 75% of transactions that will happen in store, and how will technology help retailer and improve the consumer experience? caroline: the last part there was about the tech started what far-fetch does, also partnering with big global luxury companies to help them techify their stores as well. talk a little bit about the business model, because it
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is not a traditional retail business model, is it? emma: they do not have much inventory, which has been the problem for luxury retailers and mass-market retailers, inventory. it is essentially a marketplace connecting model. so if you wanted a burberry tend coat in a trench particular style or size, but you could only find it at a german store, far-fetched works with that store and will help get it to you. they will connect you to the store to buy it and then they take a cut of that as well. likeso had some big names, the founder of net up or take -- porter, and one thing about the ceo -- he became a billionaire today. stake andone point 3% is now worth $1.3 billion. scarlet: a pretty good opening
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day. emma chandra, thank you so much. apple turns red as shares are following to the lowest this because the company releases its latest models of the iphone and the apple watch. appleple tenet smacks -- 10 -- the apple 10 max -- i'm just going to go with that -- is the most expensive phone to date smacks,le, so -- 10 and max, i should say. this is not trying to convince everybody to upgrade their phone, but keep the prices rising? >> they took the iphone x from last year made it bigger, faster, and cheaper. three new models, raising prices, and this is what you want to do if you want to continue growing in one respect when the market is slowing down. they are not going to sell more phones in one year anymore or a significant amount of more phones than the previous year
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because of the slowdown, but they can raise prices because they will keep selling maybe a little bit more or the same amount and make more revenue based on raising the prices, because they know these people want the things regardless. allline: basically counting of the people in the queues all around the world, from london to you also usedand loup ventures data. what was he looking at in terms of the qs? s he thought iphone x anticipation is based on the store in times square in new york, which is one of the most in in america. it is consistent in terms of the people around there to buy new phones on an annual basis or every two years. xs being about half of the phones from last year. in iphone people line, double to 200 something he saw for the iphone 8 last year
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as well. we are sandwiched between the iphone 8 and iphone x, good news for apple that this year is about raising prices but not adding too many new features. caroline: and tim cook is that his store, dressed like all the workers. we thank you, mark gurman, great insight on anything to do with apple. and it is not just apple that will be battling for consumer cash today -- too pricey products are going head-to-head. the launch of the largest and most successful iphone to date as kanye west's new yeezy line of trainers. west tweeted this is the second fast growing company in history and a unicorn, on its way to becoming a decacorn. i love how kanye is getting all of the phrases from the tech industry. scarlet: he sounds like a tech out more, doesn't he?
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, -- was turnedh down by three fourths of investors when she promoted her wedding website, zola. in today's tech trends, i sat down with her at a bloomberg event to discuss how she got there and the unique challenge of fundraising. >> fundraising is never the most ,un part of starting a startup particularly if it is a product where you are pitching a product that can narrowly survey female audience, and you are pitching it to an industry that is primarily male. for the most part, they got married 15-20 years ago, and even then they did not really do much of the wedding planning work. scarlet: and they would tell you this straight up? did hear some, i
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say you know, i got married 20 years ago and my wife seemed fine with the registry. so what is the problem? [laughter] i do not understand. but those were not the industries we ultimately had invest in zola. because it was harder to show that emotional connection to the problem and how the product solved this better than anything else, we focused on how is this business model innovating how we are redoing retail? we have the numbers to show it. they absolutely got it. scarlet: talk to us about some of the numbers. i was taken aback by how big or valuable the wedding industry is in the u.s. and globally. a 100 billion dollar industry in the u.s., and globally, it is a $300 billion industry. when you think about it, weddings are one of the few industries remaining where we a dominant startup
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player or disruptor emerged to take the market. zola right now is the best placed company to be that disruptor, and we will do that. scarlet: and people spend how much for a wedding on average? >> on average in the country, it is $35,000. in new york, the average is a little higher for a wedding here. it is about $75,000. myrlet: that was ,onversation with shan-lyn ma cofounder of zola. caroline: the s&p 500 turn reddit one point with flat above a record high. tech finances down. this is bloomberg. ♪ xfinity mobile is a new wireless network
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click, call or visit a store today. mark: i'm mark crumpton with first word news. mitch mcconnell is telling evangelic activists the senate will plow through and moved to confirm brett kavanaugh who
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stands accused of sexual assault when he was in high school. he told the value voter conference in washington to keep the faith here he predicted senators will do their jobs. presidentdent from -- trump has nominated a stunning individual. . watched the fight. you watched the check next. here is i want to tell you. judge near future kavanaugh will be on the united states to print core. -- united states supreme court. has been accuser invited to testify before the senate judiciary. kavanaugh has agreed. theident trump has delayed release of documents after
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documents raised concerns. earlier this week president ordered the documents declassified. mr. said the declassification would expose really bad things at the f ei. calleds foreign minister u.s. sanctions imposed against russian companies and individuals another active unfair competition. he addressed reporters a day after the u.s. announced to chinese military agencies and sanctions over the purchase of russian weapons. the u.s. added 33 names associated with the russian defense sector as part of thursday's announcement. lebanon says christopher wray has expressed support to the lebanese army during a visit to beirut, a statement released by theresident a palace said
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president received them today and told him that lebanon has exceeded in fighting terror groups thanks to u.s. support and that of friendly countries. washington has been a supporter of lebanon's army and provided $11 billion in assistance since 2006. global news on air and on @tictoc on twitter powered by 2700 journalists and analysts in 120 countries. i'm mark crumpton. this is bloomberg. >> it is 3:00 in new york. scarlet: this is bloomberg markets the close. caroline: today sees a collision of two major market events that push volume sky high.
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the latest iphones go on sale around the world. hundreds of eager consumers undeterred by higher prices and minimal advances. u.k. prime minister doubles down on her brexit strategy and warns negotiations are at an impasse. that and more coming up. scarlet: let's check the markets with an hour to go before the market closes, stocks overall little changed. it had been gaining for the ninth time in 10 days. one reason why it has lost momentum, tech shares are off half of 1%. we will discuss that later on. the 10 year yield now unchanged. the rising yield starting to attract higher's in treasury and copper. -- attract buyers in treasury and copper.
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the inventory drawdown in china. caroline: starting to see the commodity index pickup. let's drive deeper into the action. julie what are you watching? julie: someone in our art department, i have to give them props for that cauldron. let's give a look at commodities more deeply. crude oil on the rise as well. also having a positive week to read a couple of different things contributing to that in addition to the supply at your wish and. -- supply situation. perhaps the market has gotten ahead of itself and what is going on with the u.s. dollar. all of this leaving some traders and investors to change their view. barkley saying copper has bottomed. bloombergk at the very we have a look at the
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bloomberg commodity index. on the top it is in blue. you have the bloomberg dollar index in white. while it is not a sharp downturn in the dollar it is a little bit of a downturn. stabilization at the very least. a halting of this momentum up rally that we have seen in the dollar. the downtrend in commodities seeing a pop. you have inverse correlation between the two which has been consistent. this past week it was in favor of commodities. lisa: the weaker dollar this week bolstered emerging markets. currencies posted there asked one week gain since the beginning of february. this is interesting in light of the reduced volatility we have seen in the currencies. you can see for weeks before that we saw pretty big declines before calling the end of the emerging markets complex for this cycle is the federal reserve was raising rates. this was the first sign of a d+ that will be felt first emerging
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markets and beyond of the risk assets. with the weakening dollar that is not happening just yet and we are seeing those gains with the argentinian peso leading the way with a gain of 7% in one week. aerospacea look at stocks. the airline index up 2%. you have dealt up 3%. american airlines up almost 4%. the smaller players getting in on the action. one of the reasons has to do with the fact people are going to be paying more to check our bags. month whend last jetblue said it was going to raise its fee. american airline said it would five the checked bag by dollars. a lot of analysts say this is the thing for the airline that is going to boost revenue. including j.p. morgan and
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another analyst shop saying a lot of these airlines had some room to raise prices whether it was on the ticket or on the baggage fees per prime really because of the supply demand constraints which are working in their favor. that is why you are seeing the airline stocks moving higher. abigail: happy friday to everyone. what a week it has been. take a look at this five day chart of till rate. we see nice gains. wednesday, wild wednesday. at one point down on that day. from that peak, down 55%. again, tons of volatility here. investors wondering what is next on that $10 million of revenue. bitcoin, we looked at this chart yesterday suggesting we could y go the way of bitcoin. in yellow we have till ray, it
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was above bitcoin in white. now it is taking out bitcoin. in the last two days it has been bigger than bitcoins decline. we talked about the possibility could drop to $125 per share. that is happened. the reason that level seems likely, that is where the uptrend in blue is. resume the buyers will the control but if not we could see the decline back to the august lows for tilray. scarlet: what a wild week. thank you so much. we are went to stay with the markets as traders brace for more volatility. we are talking about the reclassification of the s&p 500 groups. investors are index funds were not able to prepare for this shift but now they are. >> this is the largest
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reclassification of the global industry classification standard since 1999. that shows how large this is. when you look at passive investment vehicles it has been going on in a different way. vanguard changed indices to reflect the new sect or is in may. which is a fighter sector product. whiche with an investor has been investing since last june. he was saying this is clearly going to be an interesting sector. we are seeing facebook go into it. this is attractive. we are seeing more interest in it this week. >> clearly these are the biggest companies. that is going to be in expectation. what happens monday. we saw a volume spike today. will the dust settle come monday? >> many people i did speak with about what is going to happen say we will see the most volume
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into the closed today just before they take place pre-changes are taking place after the bell today. monday the changes will be in place. it will be effect. we could still see some dislocations in the market it people try to catch up if they have not already taken a hold of this. if you look into flows into x lc, it has taken it over $300 million this week. yesterday there was a single investor who bought 1.1 million shares. people are taking note. they are trying to get ahead of this tonight. some are realizing it is happening friday. all of the last-minute charges into that sector. caroline: we will be digging into all of these moves later in the show. we are pleased to see that was sarah joining us on the big
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move. now to oil. west texas set to end the week higher. big move. we were just hearing from scarlet. copper up 1.3%. a roughwe have seen quantity index. >> oil has been an interesting market to watch. you mention copper. copper is usually just a china story. you can tell what it is based on oil. we have seen it rise despite the tweet suggesting prices were too high. it is rising going into the opec meeting where we're expecting more nuance and by way of explanation about what they have planned. this is supposed to be a boring meeting of the ministerial monitoring committee but as we talk about the political pressures that come to bear, you might see some surprises.
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>> not boring if you like to read the tea leaves. what will it mean for the price of oil. >> in terms of this meeting it is going to begin the allocation of increases announced earlier in the summer. russia and saudi arabia have begun to increase of they are not waiting for their official allocation to do so. we have heard the iranians complain this is ahead of the game because it violates the agreement. we had brent pull off a little bit based on a report that they were possibly going to be in discussions around another 500,000 barrel a day increase. >> that relates to iran. >> that is about offsetting what has been lost because of the iranian sanctions on the oil industry. julie: interesting how much they think they could affect the overall oil price. saudi arabia was set to tell us they were happy with $80 but this could jack it up to $90.
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julie: there was consensus around the iranian sanctions not having such a huge effect. even though they don't affect the oil sector until november 4, they taken a million barrels a day at of exports so it has been sizable. our consensus had it at 800,000. at the end of sanctions. they are at a million already. scarlet: you mentioned saudi arabia and russia moving had with their wrapup and production. at what point do their interest not a line? >> their interest have not a line many years. this is a weird shotgun marriage for two powers that don't see i to i on anything. what we have seen in the past six months is an agreement that will allow them to have a working arrangement because they can at least find common ground. caroline: funny that. scarlet: our thanks to tina davis. high. up, lying
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american airline shares rally in a move that could cost you more money. lots of bubbles for new age beverages per be look at the wild rise for stocks that surged earlier this week but slumping today. reach for the sky. the high-stakes in the bid to control the british broadcaster. this is bloomberg. ♪
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>> this is the cat down to the close. it is time now for social climbers. you can find this on the bloomberg using bsd go. shares of american airlines and other carriers flying high after americans that it will raise these for checked bags by five dollars to $30 filing other carriers. the decision by american
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confirms a higher rate will hold. shares of new age beverage of hundred percent at one point this week before paring some of that advance. benefiting from the euphoria surrounding the cannabis sector. maxim downgraded the stock from hold to buy because it is not based on fundamentals. arehore drillers outperforming on deals moves. a six week contract, and announcing the purchase of a new jack up rigs from the packed ocean group. along with a new drilling contract. those are your social climbers. caroline: in our deals report the battle for sky could be settled this weekend. fox and comcast will did in an auction for europe's largest satellite carrier. remind us how we got to this stage. >> for scared -- for sky shareholders this is been on the market for the better part of 10
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years. rupert murdoch has been wanting to buy it. he got knocked back. this time around it has been two years he has been chasing it. with disney buying most of fox , they have been going at it for a little while for several months. , theree u.k. takeover are stricter rules. they have decided we are going to sort this out and that is happening tomorrow. scarlet: why is it a hot property? rupert murdoch tried to get in the past. why does everyone want it? >> it almost went bust when it launched the first satellite service in the u k but right now it has 23 million customers across europe. they have five countries. they have revenue growing 5% or more for a number of years. even with netflix posting competition sky has held up well
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. for comcast it gives them an entry into europe. for disney it is a distribution platform for their own streaming service they are launching next year. julie: content is king. thank you. coming up, we highlight the etf hoping to cash in on the gaming bets being made around the world. the house always wins. this is bloomberg. ♪
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scarlet: etf industry has something for everyone including those seeking vice over very cheap. we have one fund that profits when the house wins. game on. tracks the global gaming industry. we are talking casinos sports betting, lottery services and
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the technology and equipment behind them. the fund attracts a market cap weighted index of companies that generate half revenue from gaming related activities. they feature 40 names including galaxy entertainment, and moon resorts. for returns, b j k kept up with before trailing off. the fund made a record high may 2018. it is fallen off following the scandal involving steve win. the fund has $30 million in assets, 67 basis points and gets a green light in a bloomberg intelligence report. scarlet: i described this as being a vice etf. the others, clean energy. anything for whatever political stripe you have.
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don't forget to watch etf iq every wednesday right here on bloomberg. caroline: time for our options insight. julie: thank you. joining me is andrew keen, ceo of alpha shark. aboutwe have been talking this whole rebalancing and reclassification i wanted to ask for your take on it and what you are seeing in the market in terms of options activity and volume links to all of this. >> it is always a big one in september. expiration has been around for a wild. we see the same names underperforming. dow hitting all-time highs. amazon off the highs. facebook as well. especially today if you look at the focus it has been straight down. in netflix, they just continue to go lower. i think this rotation is going to last longer. >> interesting. we knew which was going in and going out of the new
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communication service is group, it is interesting you think we inl see may be rebalancing people's portfolios after it takes effect. >> i can't imagine amazon not closing on all-time highs because i think most hedge fund managers need to show they are long apple and amazon. i think those will close on the highs. google i don't like so much. them not going to the senate hearings was huge. esau twitter testify and carol but google noty, sending anybody to congress was a pretty poor performance. julie: your trade today though is on a less well-known name my withella, which we walks -- watch with stocks like gopro. it has had not a great year. >> they came out at $.25 versus 12 or $.13.
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the guidance was week. we saw a huge keever her soul. the stock got to 52 week lows. it has shown a little bit of weakness. institutional order flow in the option market. we saw a big higher buying october 42 call. there is more upside. my trade is to buy the october 40, 42, get in this for a 60 sent debit. this would be worth three times the capital. similar trade, the chart doesn't look that good. it is underperforming the market. if i could get a little bit of a pop, the option strategy i'm looking at, 2-3 times capital. you am curious how often queue off institutional order
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flow orders that you see in the market. >> that is how i have been trading every day. that is how i traded when i was underperforming. watching the option market, they don't have the manpower. a lot of trades do lose money but the fact that the hedge funds are trading at information , most don't have access to. watching the institutional word -- order flow is how i trade. julie: good to see you. caroline: looking at the markets, lifting volume up. s&p 500 is flat. the pound, doesn't. this is bloomberg. ♪
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>> dozens of women, some of whom have worked with bret kavanaugh and others who have known him since high school gathered at a washington hotel today to show their support for the man who supreme court nomination could be in jeopardy after a woman said a drunken kavanaugh sexual he assaulted her when they were teenagers. he has denied the allegations. his closestn of us, friends in high school, and hung out with them virtually every weekend had no choice but to stand up and say that is not the brett that i know. he stood


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