tv Bloomberg Markets European Close Bloomberg October 17, 2018 11:00am-12:00pm EDT
covering out from the bloomberg and around the world, from the markets, falling flat, not building on yesterday's gains. is the cycle higher? oil is really under pressure right now. netflix, surging. tech stocks seem to be back in vogue. will it deliver following the move? and rising now, leaders gather in brussels to discuss brexit. we are going to bring you the latest from brussels on the italian budget. under pressure right now, let's find out where the form is and where it's not right now. the picture at the moment, the dax is trading down, consistent
with the rest of europe today. the eurosterling is quite latin right now, big moves over the last half hour for the turkish lira. pay attention to that. oil is in fact under pressure right now. we will get war on that in just a moment. prettyt of europe today, disappointing once again. one of those stocks really suffering. in the u.s. markets right now, let's find out the details there. abigail: the sellers are in control. near session lows, the dow underperforming your down to% and the s&p 500 down eight out of the last 10 days. take a look at the fear index, higher over the last few days, the s&p 500, of course yesterday we had the big relief rally with
investors finding confidence on earnings, not looking towards rising rates or trade concerns, but today a dip at the lows, down 1%. volatility is the returning story in the bloomberg. earlier this year, if you recall, we had big volatility after big gains in january and february of march. look at these big outsize moves for the s&p 500. in may and june, medium-sized moves. then the bulls really took over starting in july with lots of small moves higher, many traders saying that stocks take the stairs up and the elevator down. we will probably have more of the same, today being a reflex action to yesterday's rally. as for the big numbers on the day, ibm, those shares are down sharply. down, look at that, it's worst day since the end of april, when
it put out another disappointing earnings report with sales estimates saying that they declined on a year-over-year basis and a turnaround not happening. home depot, down, cut to a 7.6%,l, with autozone up they could really be measured by online business. macy's, down 5% totally on retail sales from the is. guy was mentioning oil, let's take a look at the trade a chart there. a sharp decline down 3%, more than 3%, on pace for its worst day since august, coming perhaps on a surprising inventory data build with oil declining and fitting the risk off nature that we are seeing for stocks. abigail, thank you. vincent is here with us in new york and in london, marcus.
vince, let's start with you here in new york. a lot of things weighing on the currency. rates are going nowhere, it's all about earnings and the stock market. vince: now transitioning to trade swaps. kudlow and trump oath weight in on a somewhat negative basis, basically saying that china is not there yet. they want to do a deal but they don't see it in the near-term future, pushing up the dollar a little bit. on theies are sitting sidelines, waiting to see what happens the. guy: marcus, we got a bounce yesterday, didn't last long. are the highs in for this year? marcus: i don't think so. i think this is a lot of noise going on here. if you can read through this, you might even know what brexit is going to happen. there's no real clear direction here. i think we are just shopping
around in earnings season. i think the fact earnings came boost, i expect we will get further uplifts through the cycle. plus you get all the buyback coming back in, which i think has starved the u.s. equity market for the last few weeks. vince, where do you stand on this? how amazing does this earnings season have to be to keep the rally on track? i think it needs to be pretty strong, we are heading into the midterms with this potential trump meeting and the eu summit today, probably going to push back on the budget and is markets said, nowhere to go with the brexit. he's perfectly correct about the chop in the market, this is purely exactly that, the markets don't know which direction to take and on any given day,
something is going to lead. it's really difficult to get a hold of this. headlines from wilbur ross, he met with trade commissioners yesterday and speaking to reporters now, he said that president trump once good faith and quick trade talks with the european union and ross says he's unhappy with the remarks on the state of play. protectionismor in all sectors. where does this send up this more protracted posturing? we are already seeing it with china, we already don't know where we are going to ended up. is that going to be the case with the european union? i think so. from the u.s.cue mexico playbook. we are opening up trade talks, we have sent others to the eu, u.k., japan. the real issue is china.
kudlow said it again this morning. the whole world knows that china is not laying fairly and he would like to play to the best interests as we approach the midterms, look strong, be strong, but in the end do a deal with the eu, japan, the u.k., maintain the real pressure on china. i think that this is just a little bit of trump speak, if you will. at what point do we hit seven? i think that doesn't happen unless talks really fall apart with china. people talk about china weaponizing the currency, but i think it's more the reality of the fundamentals of economics. if the talks break down, the chinese economy has been slowing . simply on economic fundamentals, not necessarily china letting it go, if you will. guy: you are not so convinced
about the trade story, marcus? marcus: after the midterms, the next strategy for donald trump will be back in play with the eu , particularly germany. i think it plays much better in the american public, going anti-china. i think that's the big win and the main push. he backed away from the eu strategically and i don't think he's finished with the eu or in particular with germany. the moment.ak at brexit is going through. it's a perfect opportunity for disruption by donald trump to get very involved. he's already made a bit of a play today with the potential of a u.k. u.s. trade deal, obviously, with two others as well. vince is spot on, but also u.s. treasury's have made it clear that they are not happy where the eu is with regards to financial services, particularly derivatives and the risk of
major fallout of a hard brexit and the eu playing blind to the whole point of what goes on with financial services and the clearing system post any sort of deal or non-deal. guy: the president seems to be having a pop at the fed every day. let me ask you a question about the timing of this. is this just kind of the midterms talking? or is there something more behind it? there is a consensus in the market that we are heading for a recession in 2021 and you have got to wender -- wonder whether or not president trump would be upset about that at that point and is at the midterms talking? >> at think it's a little bit of everything. when you look at the last eight, you have seen capex, durable goods, all rolling over.
all the big-ticket items are not doing as well as they were in january. the u.s. economy to continue to roll past the midterms is going to need another bit of fiscal spending perhaps coming from infrastructure, as trump mentioned, or we may just fall back into slower economic growth. with that i think he is unfortunately setting up powell to take the fall by basically saying that if this happens, it's the fed's fault for raising rates, it's not my fault. this is trump at his best. u.s. section 232 will be ready when needed, he says that we are at a china impasse. marcus, what breaches the impasse? marcus: that made me laugh, sorry, vince said there that this is trump at his best and he's spot on their. he's playing into the heads i win, tails you lose as far as
the fed is concerned. the reality is that i do think is going todterms bring a whole new attempts to reset the trump agenda. we are going to see a raft of different things coming out. i do think that as far as economies going, he has done good in certain ways by giving that for -- sugar rush and the next big thing he wants to push through, house infrastructure for sure. turning it back to europe, waiting for arrivals of commentary around the italian budget, saying it wasn't me, i didn't say that, not me. we have seen the yields climbing back up again today. eu close are we to the responding, do you think? what do you think the politicians are going to be saying? >> these guys don't really want
to commit, there is no upside. there are enough signals going back through that this is never going to pass. it's the hope that it will come back with -- ok, we will soften itwhen it gets back, but will have to be rejected at some point, almost certainly. it really does need to be rejected, it is just a question of timing here. there are times and places to do these things, but it's not right here and right now. but it will happen. moody's and s&p will help with that decision on the 26th. the eu has plenty of time to delay this. thank you to our panelists. vincent, marcus, joining us. firstcheck in now on the word news. here is courtney donohoe. courtney: bloomberg has used -- learned that the u.s. will be withdrawing from an international treaty that gives chinese companies discounted
shipping rates for small countries shipping to the u.s.. it's an arrangement that benefits china. the secretary of state, mike pompeo, says that the u.s. takes the disappearance of the saudi journalist seriously. thatsh officials has said he was killed inside of the pompeo said he didn't have anything to say about that. plane carrying melania trump to philadelphia had to be returned to washington to an area airbase because of a smoke inside of the cabin. everyone is five and safe -- fine and save according to a spokesperson. it is not known what caused the problem. i'm courtney donohoe, this is bloomberg. guy: thank you very much indeed,
courtney. coming up, the meeting has artie taken place, theresa may making her case on brussels and brexit. here's the pitch of the meeting that took place over the last few minutes with jean-claude juncker, the president of the european commission, and theresa may, the british prime minister, all smiles in that richer. you wonder how much they are seeing eye to eye right now. the real issue i would argue is not in brussels, the real issue seems to be back in westminster. this is bloomberg. ♪
theresa may is in brussels to talk >> it. let's get to maria at the european council in brussels. maria, we have seen the arrivals, we have already seen the shot come in, the irish prime minister coming in to make comments on brexit. are we learning as leadership arrives in brussels? >> that's right, you will see them walk behind me at any minute. billed aser, this was the summit that would be the moment of truth for brexit, but on the ground we have the opposite. a step up in billed confusion. we have heard a number of statements today, one of them abouteas being floated transition being extended. it seems the u.k. does not want it and the irish government has made it clear that this does not mean the backstop issue goes away. thewhen i say deadlock on
irish border, we know that this has been an issue for months and it's a common increase that is clear. technical negotiations have been halted and it is now down to european political leaders to come up with something today. theresa may will get 30 minutes to present her case. practically this is the last window of opportunity that she gets for the summit. vonnie: is it possible that there isn't even a communique after this meeting? >> no one can really predict the state of play over the european thetion and what to do with irish border's. the european union argues that northern ireland has got to be part of the union and theresa
may has made it clear that no prime minister whatever except this. we understand that it suggest that the entire u.k. unit stays custom, but only for a limited time, a prominent -- a problem for european officials. we are seeing talk of a backstop to a backstop, but what that means in real terms is very unclear. this seems to be the only issue remaining and i'm hearing this argument again and again that what will happen is that we put it in a separate set of talks. it was interesting, the chief whip for the theresa may government in london said she didn't even have the votes to pass the current votes around the backstop. this will be very difficult to get done. if it doesn't, does brexit sort of fall on this? or is there a kind of escape route? we just deal with the backstop at a different time?
guy, i've got to tell you that the idea that somehow we get a deal, both sides will still tell you that the best case scenario is that we get a deal. this is europe and optics will be key to both sides wanting to be seen as fighting hard to get a good deal. i can tell you that the idea is that the final deal gets voted down by the u.k. parliament and is terrifying for u.k. officials. concerning not only to me but to european officials. they will tell you that. if it doesn't go through, it opens all kinds of scenarios. does it lead to a new vote or a new general election? i can tell you that for european officials, the idea is something they do not want. again, this is something that is sending concerns for european officials. the deal is that it may get
voted down by the parliament. locally, there is no incentive for anyone to give in. no incentive for the fostering to given. the rest of ireland, there is no incentive to give in. it's very clear the other european leaders must be extraordinarily annoyed by this, about it taking so long. at some point is there anyone to can step in to try separate this issue from the rest of the european project? which should be advancing, at some point we have to get back to that, i imagine. is something the u.k. has tried, to sidestep the commission at times to stop the leaders as individual countries, but we know this is a strategy that has failed and, most importantly, it really does an oil european officials.
going to break up for months before brexit, but i want to tell you that the irish government has been given a clear assurance by the european union that there will be no brexit deal if there is no backstop. this common question, this sequence of events, remember for months we have been told that this is how it plays out. the bones of the deal today, and then in november we sign it off. european schedulers are now saying that there is no point in holding a summit in november if we don't get a breakthrough today and there is talk that if we do get a summit in november, it will be a no brexit deal summit. you wonder if that will actually be the case. theyisks are so enormous, have a fantastic way of holding off until the last moment. we saw the comments from the budget minister having to
backpedal a little bit on some reporting that maybe he had said that the italian budget would be rejected. thehing we are getting from leaders in terms of the way that that is going to be perceived? still hinting in some ways that all is not well. >> exactly. well, this has been the talk of the town for about an hour now. the commissioner appeared to suggest that the commission would reject this very sensitive edge it. he has -- he has backtracked off of that, saying that that's not exactly what he said and that a final decision hasn't been made. we have also heard, and this is reaction from brussels, the head of the parliament, this is clearly a situation that he knows well and he says look, i wanto early for this,
italy trading down, we see yields climbing back up. those comments coming out of brussels, shaking up the market over the last hour. interesting to see turkey climbing back today, positive session for the turkish market. 1% ftse 100, down by 2/10 of , over in paris down by half of 1% as well. the euro, certainly softening today. at one point earlier on it looked as though things could be worse, but europe is finishing down. in terms of the levels and the story coming off of that, let's take a look at the individual names worth focusing on out of europe this afternoon. , tradingd today, soggy down by 3.57% with a similar story elsewhere, and in france trading lower. terrible, the worst q3 they have had an a long time. the market really punishing this
company, down by 4.4%. china a particular area of concern here. remember, they are big in baby boots. but there is one bright spot, chip stocks in the united states doing well and you are seeing that in europe. asml, a company that makes what's called lithography equipment. they create chips, basically, for the chip sector the numbers are out, positive with the stock trading into the close. i want to highlight as well what's happening with the volume today with respect to the markets and down days on bigger in termslumes, smack of the average over the last 30 days, which is interesting. volumes have actually been ok, which may not be the greatest in thent indicator close. that's a look at the european
markets. vonnie: over here, sentiment is taking a dance today. you can see that in gold, trading higher by 2/10 of 1%, nevertheless still $12.30 per ounce. levelan, grinding at that , the dollar index is getting a bit of a did, softness in the euro with fomc minutes coming out later on. crude oil futures, when was the last time you saw that? well, we got a fourth weekly build in inventories earlier and that didn't hurt. the saudi story continues, impacting the oil market as well. having a look at currencies and other asset capitals that are moving, the brazilian ray al is higher, the canadian dollar at 4/10 of 1%, and the lira, as we mentioned earlier, stronger by 2.1%.
as for other commodities, brent crude is taking its cue from wti and the saudi story, coffee and sugar having a better day, today. the let's get a look at how fx markets are moving now. what we are seeing at the moment is equity markets bouncing around. fx, not that great right now. marketes is the fx classes,om other asset particularly the equity story as you got around? jane: look at the u.s. stock market and the u.s. dollar off of that. february, march, we started to see a lot of pressure on emerging markets. it was clear that a lot of that flow was dragged into the dollar in the reason for that was of course the good growth story in the u.s.. now we are coming to a different
position. there was a big selloff last week with? out theretion marks about whether or not the time is right to move back, whether it is right to move potentially into bond assets in europe. there are different questions questioning the trends of the year and that has left a lot of people a little bit confused. you i'm interested in bringing up the issue of the treasury markets. factoring in the hedging costs to go around was the top story around that and i'm getting a in the european core government bond market. how big of an effect is echoing to have on the flow going forward? jane: add to that the fact that you will get a nice carry, that's the situation that many investors right now are sitting down to and i think that what it
says is that the positions in the u.s. dollar are still a bit overbought. we have had a bit of a correction in the dollar, it may shakeup further, but the other part of that story is if it is a correction in the dollar or specifically if it is the end. i think that it will become clearer in the next few weeks. vonnie: which emerging-market currencies look attractive to you? the peso, just barely doing better than the dollar. looking at the performance today, the turkish lira, clearly turkey and argentina have been two of the worst performers to date, but if we look at the reasons for turkey particularly, there are factors within their. we have seen the government talk
in more market friendly terms with respect to fiscal reform. and we have of horse seen the that inback in the u.s. that decision might lead to an improvement in the u.s. in this way you really have a better outlook, hence the better performance. but clouding all of it right now is still the story of trade wars . how far is china going to slow? how much demand will be lost from china and growth? those are all negative stories. are watching leaders arrive in brussels, pictures coming in now. two issues on the table. one, brexit, the other, the italian budget. it looks like we are coming to a crunch. can't say exactly where that is. i don't know how you trade the pound around this. can you give us some clarity? jane: with respect to the pound,
there are a couple of surprising things. over the last two months, -- the pound is one of the strongest performing currencies. most people would be taken aback i that. what i would say about that that this is not outright strength. this is just i think a reduction on the short position. the market is still short. just less short than it was two months ago. i think that what has caused that is some better data. not today, obviously. yesterday we had that are average earnings data. but there has been some short covering from the market and it is quite right to be short. i would say that every day we move closer to the end of march next year, every day that there isn't a certainty a about a trade deal, surely the risks of brexit rise. -- around brexit rise. jane, you mentioned the
pound sterling, obviously, but what about the euro? we know that the eu is likely to budgetitaly's draft plans. the euro usually becomes more of a problem. jane: again, that's a negative euro problem. italy is not the only country in europe where there is populist pressure. clearly i think for euro traders they will be looking at a push back from the eu, but if we want to see the italian political leaders pointing it out, parliamentary elections in the spring of 2019, what if there is more of a populist movement in those elections? looking back to 2014, that is what happened. say that that was perhaps the precursor of what happened in subsequent national elections in europe and if we do get more of a populist theme
, im the european parliament don't think the markets will like that. that perhaps hints at less reform, a negative factor. there are various different ways you could look at the italy eu budget scenario. but right now not very many are positive. vonnie: give us the levels you are looking at for the euro and the sterling, for example. i don't think that drawing money in this year is at an end, but i do think that the positive dollar story will end by the middle of next year and we will be looking at a much more negative picture for the dollar, lower growth, peaking u.s. interest rates and a fading of course of those tax hike, tax cut. and i think that in addition to that the market could be more affected by the budget deficit in the u.s., which is not
looking pretty, but it is an area for the market is concentrated on softer growth. i do think that will change by the middle of next year. guy: the fed is definitely on a gradual glide path to higher rate. looking at it from the european perspective, you have got a whole series of issues lined up. may of next year, the german political situation developing. italy developing. there's a whole bunch of factors coming together. do anything ini that kind of scenario? would the european economy take higher rates at this point? jane: i tend to agree with you. the summer ofd of next year, 2019, 82, they could be hiking, but given the scenario that you have just laid
could either that does ,ot happen and there are we do potentially, we could be looking potentially at a weaker scenario in 2019 as well. two it's difficult to the firm on that, but with respect to the italian budget and european elections, it's difficult to predict what would happen, but there is a scenario where it could be difficult. do you think that's politics? or is it data that gets us there as well? jane: i think it's a little bit of both. we won't suddenly see a big acceleration in practice. reactow does the market when the moment comes? jane: disappointing. but never say never. for heavily possible, but now i'm putting my hat on 112 and watching the data and watching the politics. get thejane, we
semiannual review of 12 major trading partners in the united states. how much does the market watch what comes out of the treasury later on? will you be having a look at it tonight? jane: we will be having a look at that, particularly with respect to china. will they be called a policy manipulator? i suspect they won't be called that this time. it will be interesting to see if there are any other surprising interventions. remember, earlier this year we had india up there. i think that really what's clear from this or are is that the u.s. tends to name anybody with a trade surplus relative to the u.s. and it's one of the criteria for whether these countries are on the watchlist. i'm not expecting anyone to be named as a currency manipulator. we still have a handful of countries on the watchlist. germany, japan, some of those usual suspects. guy: before you go, oil is
trading softer, and i selling the cad? you know, i suspect that if oil drops significantly, it will be negative. thank you very much indeed for coming to see us here at bloomberg. jane foley, thank you. vonnie? vonnie: time now for the first word news, here's courtney donohoe. mueller isobert getting ready to hand over the key aspects of his findings on the special- on counsel investigation. mueller has become close to running ring -- rendering judgment on two issues, collusion and obstruction of justice. president trump is warning central american countries to turn back migrants headed for the u.s.. last night he tweeted that honduras, guatemala, and el
salvador would lose aid if they allowed migrants to travel through their borders. a caravan of as many as 2000 hondurans entered guatemala this week. along the florida panhandle, armed looters are targeting homes in his this is that remained without electricity after being ravaged a week ago by hurricane michael. suspected looters have been arrested over the past week and more than 130,000 in florida are still without power. the british prime minister, theresa may, heads into a crucial european union summit battle over brexit. she will tell eu leaders that they need to show flexibility on the issues that have negotiators deadlocked. she has in the meantime told that her latest proposals would be rejected by parliament. on air and on tictoc, powered by twitter, powered by a 100 journalists and analysts in over 120 countries.
just want to point out that theresa may is arriving in brussels, it will be an interesting day of conversation. in the meantime, as we even i am for that, i want to mention that we are seeing a bump in markets. the dow is only down about one third of 1%, after having been down 1% earlier on. you see her, theresa may arriving at the european union 27 s. it is something that she can attend, but she won't be at the dinner given the position right now of the united kingdom and its efforts to leave the european union, each of course wanting that on their own terms and neither of which meeting in the middle. so far. this is bloomberg. ♪ brought proposals to this summit? >> first of all, what we are
going to be discussing over the next few days with my european counterparts a some of the issues we face now, such as migration, countering new and emerging threats to our security . of course this also coincides with the issues of the meeting and i look forward to discussing the opportunities that that presents, the global opportunities here in europe. on the issue of our leaving the european union, i will be discussing talking to leaders tonight about the very good progress that has been made on the withdrawal agreement and our future partnership. the teams have been working very hard in order to make sure that we can address these issues. what we have seen is that we have seen them many times in the agreement and other is still the question of the northern irish backstop and i believe that everyone in around the table once to get a deal by working intensely and closely we can achieve the deal, which is achievable and its time to make it happen.
>> if they offered another year, would you accept it? >> we're looking at the issues that need to be addressed. we are looking at a possible resolution to that issue moving forward with the full package and the full partnership as well. progress has been made in salzburg, working intensively over the next days and weeks i believe that we can achieve a that is the interest that just of the u.k., but also the european union. >> do you expect [indiscernible] november? >> i expect to talk about very good progress that was made in sulzberger. i believe that we can resolve those issues and achieve a deal by saying that the deal is in the interest of not just the u.k., but the european union.
vonnie: theresa may, arriving at the european union summit, she said that there had been considerable progress made, maintaining optimism that there is a way to get past the irish backstop option, although she didn't answer the question on extending the transition. guy: that would put her in hot water with the leave element of the conservative party, something i think it probably would have annoyed her. while it still may be a factor, it might be a factor that comes in at the last minute. remember, she's in a position where she doesn't need to antagonize now, she may decide that despite talking that now is the time to strike a deal, she has a budget coming up that she needs to pass as well and the chancellor would want to get past two and that could get them caught up in the brexit arithmetic. i suspect she's going to try to
keep as much of this off the table until actually right at the last minute and then take the deal back to parliament. it was interesting, she was briefed by the chief with the force you left for the summit that she doesn't currently have the votes in the house to make the current backstop work in its current form, so there is still some negotiating to be talked about their. ultimately you wonder whether they will pass that issue. under the moment they do see it trading weaker against the u.s. dollar. vonnie: in the interest of both sides, she says, you can you can union, i bet everyone would agree, but it's on what terms that they can agree on it. everyone wants a deal, it's just how to get there. absolutely. i suspect this will all come down to the last minute. you wonder whether or not there
has been a bit of overreach. remember, the northern ireland issue was not there at the beginning of the process. you wonder whether or not there has been a bit of overreach by the eu, a commentary that is beginning to emerge. to -- theresa may speaking over the last few minutes. this is bloomberg. ♪
live from london, i'm guy johnson. vonnie: and in new york, i'm vonnie quinn. time for a bloomberg exclusive now, christine lagarde has been hearing about a impending disaster in the chinese economy for years but isn't buying it, apparently. she sat down with david rosenstein on an episode of his show for an interview in washington. have a listen. >> do you worry about chinese growth coming down, chinese debt, or not? >> chinese growth
has been going down for the last 10 years or so. remember the days it was double digit? and every time it moved from 10 to nine, to eight to seven, there was always trepidation. i have always heard so many times that china was going to. it hasn't collapsed. it has certainly held a great deal of the global world economy at the time of the financial crisis, it was certainly one of the first, if not the first country to come out with a huge package of stimulus in order to kickstart the economy. yes, it is heavily adapted. yes, they are trying to rein that in. but at the same time it's a country that has a huge population that has massive transition issues to deal with and where the necessary reduction of growth we are seeing by virtue of the size of this economy now has to be monitored and under control in
order to tame any risk of conflict. that's how i see it. >> what about the terrace? president trump has been talking about imposing tariffs around the world, is that a plus for the global economy? >> i do not think that they are a good idea in general if they impact to the point that trade no longer plays a cure-all as the engine for growth. what have we seen for the last 30 years? trade growing faster than growth . it's been a driving engine for growth. we see lots of people coming out of economic poverty. we see the cost of living in advanced economies, including the united states, lowered by virtue of cheaper refrigerators, cheaper television set, cheaper telephones, so on and so forth,
because they are made in countries where cost a much lower. there has been huge benefits. not only benefits, but huge benefits and i don't think that we can dispense with them going forward. my take on that is to fix it, don't break it. trade needs fixing. there's no question about it. president trump has put the finger right where it hurts. there are issues about the trade rules and organizations that need to be addressed and dealt with. christine lagarde, there, speaking with david rubenstein. guy: is it better to travel than arrive? >> remember back in the summer, when investors were purchasing any kind of marijuana related stocks they could get a
hands-on? now that legalization has arrived, you are seeing investors heal back a bit. quite a few analysts have basically been saying that now is a good time for investors to take a more targeted approach to their marijuana related investments. look at fundamentals, marketing, branding, look at the individual stories rather than just trying to buy every single thing. like you pointed out for a stock like this that is up well over 700%, it's a 4% give back today and it isn't much. thank you. right now the dow is down, the s&p is up 2/10 of 1%. this is bloomberg. ♪
>> from bloomberg's world headquarters in new york, i'm david westin. welcome to "balance of power." on the brief today, greg ferro on the possible wind down of the bob moses -- of the mueller investigation. washington --g, sorry, let's start in washington, what's going on with saudi arabia? >> it's an unfolding story at the moment and people are looking for what happened to jamal khashoggi. the saudi's initially denied that anything had happened to the saudi critic and journalist and now they are launching an investigation and looking into what happened internally. is there any real question that he died in that consulate?