Among 47di arabia is Member States in the council. Expected to present her report formally to the council tomorrow. The saudi investigation is entitled to give a reply. Of middle east Oil Shipments is skyrocketing. Bloomberg has learned premiums for oil cargo from the persian can now cost upwards of 500,000. It is more than 10 times what it was earlier this year. Six oil and fuel tankers have been attacked in the region since early last month. Says britain must leave the European Union by october 31, come hell or high water. But his competition to become the next u. K. Prime minister is rejecting this approach. Jeremy hunt today called johnsons demand a fake deadline. Hunt says the eu will not return to the negotiating table unless the next british leader can prove he has Parliamentary Support for a revised frexit plan. President trump has picked stephanie greshams shoe service annexed White House Press secretary. She will replace Sarah Huckabee sanders. Serving as a spokeswoman for the first lady, melania mario trump, who announced this on twitter. Also will fill the role of the White House Committee director, vacant since bill shine resigned in march. Global news 24 hours a day on air and at tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. This is bloomberg markets, the. Im caroline hyde. From the 30 minutes end of the trading day. Yesterday, pretty flat. 8 . P 500 off we havent seen that streak since the beginning of may. We see m a coming, up 26 . Move. L be a record people clearly worried about that. A loss of below 2 we might as will get used to it. And match us gold, or the yen, but bitcoin. Seeing other averages movie little lower. The nasdaq 100 is one of the worst performers, down about 1. 7 . Also seen transports week here. Concerns that a lot of these companies and chicken come shipping companies are not showing good signs about Economic Health now. Youre looking at the home starter data. Lets shift gears a little now. Products firmly rooted in everything from Running Shoes to baby weights, the company is now in a different kind of way leading away for inclusion in corporate america. It is the first Large Industrial company with an openly gay ceo. , weon going conversation will have a conversation with the ceo. The company in a quiet time i had. We can talk more personally about you. We thank you for that and for telling us a little more about your culture. Your story is personal. We gave some of your stories to a businessweek story about how you perhaps cant , earlier if you had known the reception you had gotten. The midwest, it was not an inclusive environment when i was young. In the 1970s and 1980s, that was not popular thing. There was a lot of pressure to conform to the standards. As i grew with my experience and got more comfortable, and i realize what the dow culture was toe, i became comfortable come out to the entire organization. I did that after some health issues. Journeyy went through a and said, i will do this and i will move on with my life. It came out in a webcast to 53,000 employees on coming out a on october of 2014. It took you a long time to get there. For potential employees who may be want to come in the door and from day one want to live their life openly, how do you encourage those people or create an environment where those people feel comfortable being who they are now rather than having to wait . That is the reason for coming out. I was moving up the organization. I was in the running to be so a coo. That preceded me being ceo. I said how will look if people know that i am gave but im not out openly and they want to come work it down. Our industry had historically been a very white male industry. Trying to get inclusion from a gender diversity standpoint for 30 years. Created our first lgbt organization 80 years ago. Will celebrate 90 years spare we try to create a safe environment where people come to work pier 1 want them to bring their whole cells to work. Our organization has more than 4000 members. The new dell, 37,000 employees. 80 of them are allies. They do not present as lgbt but are allies. Is whenfind in hiring young people want to hire into the organization, one of the first things they look at is, will my friend the except here, will they be able to work here to me . Treated equally about 80 of young people being hired tell us that is a key value of theirs. We approach this from the standpoint of inclusion. We passed the age of just tolerant spirit were into the age of acceptance but now it needs to be about inclusion. They have to be included and begin it opportunities, chances for advancement. While we do not force anyone to come out and that is a decision any room has to have to make, we can provide resources and support for doing that. A lot of people do not fill comfortable coming out at work. Maybe you personal reasons for not wanting to do it. Maybe they think the risk is more than the reward. If you are in the United States today, and 26 states, you can still be fired for being lgbt. How is that conversation changing . If you are a Company Based in a state like that, are you having conversations with legislatures inable to change that . A huge way. 2005, the dow is the First Company to change that index. If you look at it today, theyre probably 80 part of that index. Business has moved in when government has not dressed some of these issues or created a safe environment. Can protect people. We can make sure they do not get fired for their sexual orientation. We can make sure they take domestic partner benefits, equal benefits to straight counterparts at work. We may not be able to protect them in the normal marketplace with housing and adoption, and they may be discriminated against in those areas, but we can go to bat for them. Thele are involved in marriage act. Like is that went to the Supreme Court actually had some dow contributors to it. We have been actively involved one bills of gone to the statehouse in louisiana, for example. Before Governor Jindal there was pushl coming in to religious liberty and push lgbt writes back. 12 employees from to arrest sites in louisiana showed up at the hearing that day to testify, as well as ibm and dow, two of the big names there, as well as support from the greater new orleans organization. Business is having a voice and businesses all around say this is the right thing to do and i think communities and governments are listening. Thank you for taking some time to talk to us today. That is jim, the ceo of dow. Coming up, micron is set to report fourthquarter it thirdquarter report after the bell today. Fight of china and u. S. Trade war was . We will talk about that next. This is bloomberg. Atoline time for a look some of the movers in the back of analyst recommendations. Raising price target on microsoft from 90 to 80, a low with an under forming rating. Citing material risks from the stock and doesnt see shares up, 133. Morgan stanley downgrading from equal weight to overweight with a 12 price target. Synergies, he will say it is a possible bear case. Credit suisse initiated coverage, reason assets and Technology Investors supporting and building a competitive mode. Shares are higher where we trade. Thanks. Micron is set to report as thirdquarter results after the bell today. Analysts are looking at the u. S. China trade were impact, added of a chronicre supply and demand balance for that maker. Lets bring in the Bloomberg News semiconductor reporter who joins us from san francisco. Micron, one of the juggernauts in the memory space. That a lot of the success they had in the past was their relationship with china and asia. What do we expect here tonight . People are really concerned about what will happen because theyre estimating hallway accounts for more than 10 of its sales. What analysts are saying is like look, even if there is an agreement and while with gays, there is no way those orders coming to an american supplier are going to come back. Huawei will deftly find ships elsewhere. Exactly the same kind of ships that hallway provides that micron provides. There is no incentive to go back to it. Erosione seeing a 38 in the last of months. So much has already been dated to the share price. Liningre be any silver on this . And they still make money . Is a good question. What people are concerned about now is we are in a situation of going back to where micron was, which is that when things are bad and there is a downturn in the market, it starts to actually lose money. Several notes are talking about cash flow. It is not a good sign for this company. Do you think we will get broader information from micron about the chip sector as a whole, or other problems going on with micron very specific to the company . The degree of specificity icause of where is located, think what people are interrogating, how can you deal with this, how can he mitigate this and how can you get around this . Can you make the argument that we are making commodity chips . Anywherese can get they want. Why are you putting a premium on what we are doing when you are not really going to have an impact on the chinese . Clearly to watch in terms therefore what we see tonight, anything you can listen to on the call again . The explanation but i think people also will look at micron and say, are you going to cut back capital manager and be rational in this limited environment and preserve your profitability . We thank you. The rest of the tech space, the nasdaq is the elected. Ran crude rising slightly today. The yen still the haven of choice. This is bloomberg. This is countdown to the close. Joe, probably the big news, it probably wasnt news, it was, we saw this dropoff in confidence. Joe at the lows, we werent helped saying, bullard will be bowler hat. One thing that caught my eye is we had Consumer Confidence data. The number has basically gone straight up with a lot of improvement. We are starting to see a little weakening. Got this from the blog, the way line shows that we are starting to see a decline with jobs being plentiful. History would say that the Unemployment Rate would start to weaken. All kindse there are of squiggly lines up and down. Marketception of the job has been weakening lately, which could be anonymous ominous to sign for the economy. The whole picture, not hugely important parts. Furthermore, we have got the homebuilder an initial investors liked it but they started talking about tariffs and how a lot of their business was actually the lower end of the market. Nothing too huge or terrible but the number of smaller things have conspired to make it not a great day. They also talked a lot about pricing. Yes. Not great. Caroline lets look at how that is shaping up in terms of industry groups. Materials just clinging in. Up by one percentage point in the s p 500, consumer goods, yesterday they were the leaders. Big Tech Companies really falling. Microsoft earlier having a big there in media and tech. As a group, down about 2 today. You mentioned microsoft and netflix, all of the moving lower. Definitely seeing a risk off tone. Hashat is why the nasdaq been the key underperformer throughout the day. Off by more than 1. 5 at the moment. The s p currently off by a percentage point. I wonder how much of that is trade related. Yes. Plenty of tempering market expectations. Our markets reporter sarah will get us started. Im looking at the worstperforming stock on a point basis. That is microsoft. Mark soft falling more than 3 today after eight Straight Days of gains. We also see stocks falling from a record high after jeffries came out and said the stock is materially overvalued. They also set expectations for the Cloud Computing product is also way too high. Jeffrey waso know already the biggest bear on the street. We raised the price target to 90 there. That is also still the lowest price target. Microsoft finally seeing some when taken out of its sales if it doesee continue. Abigail i like to pick up on the home weakness everyone talked about earlier era joe was talking, take a look at this, down 6 , they put up a solid quarter but there were nuances are plus, new home sales were week for the last month. This is dragging on the homebuilding etf but there may be reason to think it could maybe be an opportunity for the bulls. You look at the chart going back to 2017, the old we are looking at a yield and the light were looking at a homebuilding etf. We see they both it started to hurt the homebuilding etf and the Housing Market in 2018 as rates basically held at near 3 and as the 10 year yield started to drop, we see the homebuilding etf getting a nice boost. The 10 year yield down 2 toward 2 . Suggested as weakness for homebuilders may not last. Fedex, expected to report fourthquarter earnings after the market closes. It has been slumping into the earnings report, having its worst day of month, down for one Third Straight day. That is close to 2 billion after the companys market cap. Firmly in the cross hairs of the u. S. China trade war. Cut china considering blacklisting the company in response to the u. S. s ban on huawei and what it calls a mishandling by fedex of certain packages. Look for commentary on that on their Earnings Call as well as the 2020. Fedex has been underperforming, the dow jones by some margin over the past year. Analysts investors also want to hear about outlooks for the european business, the integration of tnt, how is integrating new technology and how it is leveraging the growth of ecommerce. Everyone on the markets team for more analysis, lets bring in mark, a macro strategist for Bloomberg News and global managing editor for the markets live log. Flying all the way to new york just for us today. Thanks for being here. Not from like, you know, philadelphia or somewhere. But it is a day were we have seen a significant selloff in the market. Any wonder about Risk Appetite. We have seen the Risk Appetite hold up through all this drama we have had in the past few months. When you look at what is happening today and you consider the g20, how do you make sense of that . We dont want to read too much into the short price action. I say this as someone who is staunchly bearish, a structural bear. I think the market will tank a lot later this year. A lot of this is probably just moreion trimming and terrible data, the confidence data you mentioned, new home sales data, and after the fed, that as well. It is positioning out of g20. Joe you have been on this show a handful of times over the years. Have been bullish for a long time. Suddenly in the last month, you turned bearish. Give us the short summary after why years of often missed him, and now your negative. I think even before the start of may, the data was looking very negative for the global economy, it looks again struggle this year and stocks were expensive. Then we had a severe escalation in trade tariffs. August, andaround we are not pricing any of that in yet. A complete denial and we have tariffs. Economists have not slashed their forecasts because theyre waiting for g20. The u. S. Is heading for a recession later this year with the end of next year. The s p will get hurt. Maybe there will be some grand deal. If there is just status quo, it is bad for the economy and earnings and equities. Carolyn lets get a second voice on that. Hosea is the president and chief ,xecutive officer in charlotte north carolina. The response to the bearishness, do you think we could see a recession as soon as the end of we arer . I think living in an environment of confusion and contradiction. The little over six months ago, we had centralbank policies especially in the u. S. , that was hawkish on the market was expecting multiple rate hikes. Much more have a dovish stance and a market expecting multiple rate cuts. The underlying fundamentals have not really changed much when you look at inflationary pressures, unemployment numbers. What the fed is obviously focusing on is the slowing growth. We agree we are about late cycle, every single asset class p are we are not forecasting a recession in the near term or going into 2020. But we are recognizing with all the Geopolitical Uncertainty we are seeing out of the market, it is time for investors to take a more defensive stance but stay invested through the longterm. It is hard to see the second half of the year really with we hadre upside when published being more risk on toward the end of the year. We have seen valuations are back to where they were in the mid 1918, i am sorry, 2018, so i think there is more risk to the downside. Our focus is about where can we find creative yield opportunities on a riskadjusted basis using yesterday factors, it is something we have done for a long time. Cycle, it is a risk factor and not a constraint. Again trying to protect the downside and look for more defensive positions. Go to the market close, the bell has been ringing. Yields, 10 a look at year yield below 2 . Flight toen that haven assets. Some wondering whether there is rebalancing going on. Either way, not a pretty day. Lets dive deeper into the action. What are you watching . That weakness relative to the major index, especially the s p 500. This massive range of uncertainty over the last year and a half over trade concerns, the fed up and down, and this years big rally. Patternusly bearish seems to be morphing into a bigger bearish pattern. Confirm those levels for the essen the 500 right now. For the s p 500. The end of the year is a question if we do see the bigger bearish pattern come into play. Watching was the data for Consumer Confidence, the lowest since september 2017. The number missed estimates. Ony also release numbers where america expects stocks to go, higher or lower, and we saw a large increase in the share that expects stock prices to decrease over the next month or so. The bears actually outweighing the bulls. Fall who expect stocks to falling for ater fourth straight month. Yet another negative sentiment point, particularly after that last bank of america survey. Proposed megamerger has caused big moves in stocks in the mar